Extra General Meeting 4 November 2019 ROTTNEROS IN BRIEF OMSTTNING - - PowerPoint PPT Presentation

Extra General Meeting 4 November 2019

ROTTNEROS IN BRIEF

OMSÄTTNING 2 260 MSEK 313 PEOPLE 398 900 TON PULP SALES 2 360 MSEK

ROTTNEROS AS AN INVESTMENT

CICULAR ECONOMY STRONG FOCUS ON NISCHES SOLID BALANCE SHEET

NYKVIST SKOGS AB

A comprehensive and independent forest

• perator in Värmland.

Development of the Group’s raw material supply

2 4 6 8 10 12 14 16 2015 2016 2017 2018 2019 Rottneros OMX Stockholm OMX Stockholm Forestry & Paper

SHARE PRICE

1.1.2015 – 31.10.2019

TSR 2018: 34,8%

• Share price

1,09 kr

• Dividend

0,70 + 0,70 kr

• Total

2,49 kr

7,15 kr 8,24 kr 10,82 kr

Trends and challenges

MARKET

PULP PRICE

En cyclical market

SOURCE: FOEX & Riksbanken

SUPPLY AND DEMAND

Producer’s inventories and price

SOURCE: FOEX & PPPC W-100 USD/ton Days NBSK-price, USD Days

20 25 30 35 40 45 50 55 60

500 600 700 800 900 1 000 1 100 1 200 1 300

jan-12 apr-12 jul-12

• kt-12

jan-13 apr-13 jul-13

• kt-13

jan-14 apr-14 jul-14

• kt-14

jan-15 apr-15 jul-15

• kt-15

jan-16 apr-16 jul-16

• kt-16

jan-17 apr-17 jul-17

• kt-17

jan-18 apr-18 jul-18

• kt-18

jan-19 apr-19 jul-19

• kt-19

WHAT IS PULP USED FOR?

Paper and Board production Europe

Grafiskt papper Mjukpapper Kartong Annat

Graphical paper Tissue Board Other

PRODUCTION DECREASED JAN-AUG 2019 (JAN-AUG 2018)

EUROPE -3,3 %

SOURCE: CEPI

• 14%
• 12%
• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 4%

Newsprint Uncoated Papers Coated Papers Sanitary & Household Case Materials Carton Board Wrappings Other Papers

MARKET PULP DEMAND JAN-AUG 2019 (JAN-AUG 2018)

Globally -0,6 %

SOURCE: PPPC

• 12%
• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6%

North America Europe Latin America Japan China Other Asia / Africa

ROTTNEROS’ SALES BY APPLICATION

Share of total deliveries 2018

Filter

13% 17%

Electrotechnical appl.

10%

Tissue

8% 23%

Printing and Writing

29%

Board and Packaging Specialities

Strong deliveries and cash flow

Q3 2019

EBIT Q3 2019 VS. Q3 2018

What is driving results?

PRICE AND CURRENCY SALES VOLUME COST OF RAW MATERIAL

(MSEK)

EBIT - GROUP

Difference in EBIT Jan-Sep 2018 vs. 2019

PRICE AND CURRENCY VARIABEL COSTS FIXED COSTS

(MSEK)

EFFICIENT AND SOLID BALANCE SHEET

STRONG CASH FLOW LOW NET DEBT

• 200
• 150
• 100
• 50

50 100 150 200 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Cash flow from operating activities Net debt Equity / aseets ratio %

(MSEK) 90 80 70 60 50 40 30 20 10 % 2015 2016 2017 2018 2019 DIVIDEND TO SHAREHOLDERS

THE WAY AHEAD

TRENDS FAVOURING PULP

OMSÄTTNING 2 260 MSEK TISSUE E-COMMERCE TEXTILES PLASTIC OCEAN

ROTTNEROS PACKAGING

Strong market intrerest for sustainable packaging solutions.

New machine to arrive soon.

STRONGER AND MORE RESILIENT

Investments Production / capacity

900 MSEK INVESTED CAPACITY INSTALLED 440 000 TON LIMITED INVESTMENTS GOING FORWARD ~ 100 MSEK

300 325 350 375 400 425 450 50 100 150 200 250 300 2012 2013 2014 2015 2016 2017 2018 2019 2020 kton MSEK

SUSTAINABILITY

Developing a company that is more than 100 years old

V

HRSC SOURCING

ONE COMPANY

1+1 > 2

CUSTOMERS SALES PRODUCTION PLANNING AND SALES ADMINISTRATION OUR VALUES HEALTH & SAFETY SUSTAINABILITY

FINANCE TECHNOLOGY

Vallvik Rottneros Rottneros Packaging

SOURCING FINANCE TECHNOLOGY HRSC

TARGETS

OMSÄTTNING 2 260 MSEK FINANCIAL TARGETS SOCIAL TARGETS

30-50% > 50% +3% 10%

• Number of accidents
• Diversity 2025
• Code of Conduct
• Dividend
• Solidity
• Production
• Alternative income 2023

30% 100%

A NEW PLATFORM

READY TO TAKE ON THE FUTURE

• STRONG BALANCE SHEET
• FOCUSED AND MOTIVATED ORGANISATION
• ROTTNEROS PACKAGING STARTED
• LIMITED ADDITIONAL PULP CAPACITY AHEAD