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Exceptional circumstances highlight the strength of our product portfolioJussi NoponenCFO, Metsä Board
M E T S Ä B O A R D C A P I T A L M A R K E T S D A Y 2 0 2 0
The current market environment is favourable for our profitability
We aim to maintain
balanced capital allocation and a strong financial
position
Profitability has improved at
Husum
2
Delivering solid performance in profitabilityOur commitment from 2018 CMD
3
TOPICSWe have delivered good profitability1
2
3
Our financial position continues to be strongtoday
Life after COVID-19 brings new business opportunities
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0
200
400
600
800
1000
1200
0
50
100
150
200
250
300
2015 2016 2017 2018 2019 LTM
Metsä Board's comparable operating result European SW pulp PIX price, 12 months avg.
Good development in paperboard but negative impact from declining market pulp pricesProfitability improvement target in Husum 2016–2019 fully achieved
EUR million
USD/ tonne
69 62 34
5941
60
6443
60
39
0
50
100
150
200
250
2018 2019 2020
Strong demand in paperboards and cost efficiencyhave supported profitability in 2020…
Sales, quarterly EUR million
492 487 472
519 477 473
475 489
458 478
0
500
1000
1500
2000
2018 2019 2020
5
Comparable operating result, quarterlyEUR million and % of sales
EUR
milli
on
EUR
milli
on
FY 2018EUR 252 million margin: 13.0%
FY 2019EUR 184 million
margin: 9.5%
FY 2018EUR 1,944
million
FY 2019EUR 1,932
million
Operating margin:H1 2020: 10.0%H1 2019: 10.7%
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
0
50
100
150
200
250
2020 2021-2024 2025 2027
Bonds Loans from financial institutionsPension loans Finance lease liabilities
6
… and we have a healthy financial position
Maturity of interest-bearing debtMetsä Board’s credit ratings are investment grade:
S&P Global: BBB-/stable, Moody’s: Baa3/stable
EUR
milli
on
Debt and liquidity• Total interest-bearing debt
EUR 462 million • Liquidity EUR 353 million +
EUR 340 million1)
1) Liquid funds and investments of EUR 153 million and undrawn RCF of EUR 200 million, maturing in 2025, complemented by Metsä Group’s internal undrawn credit facility of EUR 150 million and pension premium funds of EUR 190 million
Husum investment financing • EUR 225 million in agreements signed before COVID-19 on very competitive terms • Most drawdowns after final investment decision
7
We are investing in sustainability
Planned investments for fossil-free mills
0
50
100
150
200
250
2015 2016 2017 2018 2019 2020E 2021E
Capex for growth and developmentMaintenance capexDepreciation
Capital expenditure and depreciation
FBB production line in Husum, 2015-2016
Pulp mill renewal in Husum 2019->
COVID-19 will impact consumer and corporate behaviour and create new business opportunities
Baseline:2-3% growth of premium paperboard packaging globally
COVID-19 pandemic is leading to lower growth of consumer purchasing power due to unemployment, higher taxes and higher savings rate
2020
E-COMMERCE IS GROWING and setting higher requirements for packaging strength
CONCERNS ABOUT SAFETY & HYGIENE remain, favouring packaging
SECURING SUPPLYCHAINS, driven by automation, shifts packaging demand partly back to Europe and North America
Accelerated decline of graphic papers and increasing e-commerce REDUCE THE AVAILABILITY OF RECYCLED FIBRES
8
COVID-19 will impact consumer and corporate behaviour and create new business opportunities
2-3% growth
2020
E-COMMERCE IS GROWING
CONCERNS ABOUT SAFETY & HYGIENE
SECURING SUPPLYCHAINS
REDUCED AVAILABILITY OF RECYCLED FIBRES
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Solid paperboard
business and strong
financial position
We invest to maintain our
leadership in sustainability
Exceptional business
environment creates
challenges and opportunities
Summary