interim report january-june 2014
DESCRIPTION
Interim report January-JuNE 2014. 2014-07-21. Per Lindberg, CEO and President, and Susanne Lithander, CFO. Stable markets in Q2. No effect from increased market capacity on prices in the quarter Normal kraft paper market Seasonally stronger than normal sack paper market - PowerPoint PPT PresentationTRANSCRIPT
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INTERIM REPORT JANUARY-JUNE 20142014-07-21 Per Lindberg, CEO and President, and Susanne Lithander, CFO
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STABLE MARKETS IN Q2
No effect from increased market capacity on prices in the quarter Normal kraft paper marketSeasonally stronger than normal sack paper marketPrice increases on sack paper
As expected liquid packaging board and cartonboard experienced a solid market situation with stable prices
Stable order books for fluting, white liner weaker Increased capacity on the white liner marketStable prices but with increased pressure
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KEY HIGHLIGHTS Q2 2014 INTERIM REPORT NET SALES SEK 5 128 MILLION. ADJUSTED OPERATING PROFIT SEK 467 MILLION
Q2
13
Q1
14
Q2
14
Jan-J
un 13
Jan-J
un 14
0
2,000
4,000
6,000
8,000
10,000
12,000
5,005 5,410 5,128
10,18610,538
Net sales, SEKm
2%- 5%
Q2
13
Q1
14
Q2
14
Jan-J
un 13
Jan-J
un 14
0
200
400
600
800
1,000
1,200
324
555
467
762
1,022
Adj. op. profit, SEKm
44%
- 16%
34%
All 2013 comparable numbers include Bomhus Energi AB.
3%
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KEY HIGHLIGHTS Q2 2014 INTERIM REPORT CASH FLOW SEK 433 MILLION. ROCE 8%, NET DEBT/EQUITY 0.79
Q2
13
Q2
14
Jan-J
un 13
Jan-J
un 14
0
150
300
450
600
750
900
104
433381
818
Op. cash flow, SEKm
Jan-Jun 13 Jan-Jun 140
2
4
6
8
10
6
8
ROCE, %
Jan-J
un 13
Q1
14
Jan-J
un 14
0.00
0.30
0.60
0.900.91
0.78 0.79
Net debt/equity
All 2013 comparable numbers include Bomhus Energi AB.
BUSINESS AREA PACKAGING PAPERQ2 2014
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Normal market situation for kraft paper, stronger than normal for sack paper
Net sales MSEK 2 016
Operating profit MSEK 169
Operating margin 8%
Key take-awayThe order situation for kraft paper was normal and sack paper stronger than normal Prices in local currency were on the same level as previous quarter Price increases on sack paper
BUSINESS AREA CONSUMER BOARDQ2 2014
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Stable and satisfactory market situation with normal seasonal variances
Net sales MSEK 1 822
Operating profit MSEK 253
Operating margin 14%
Key take-awayStable demand and continued global growth
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BUSINESS AREA CONTAINERBOARDQ2 2014
Stable order book except for order intake on white liner
Net sales MSEK 767
Operating profit MSEK 59
Operating margin 8%
Key take-awayStable order intake except for white liner, which was weaker due to increased market competitionPrices in local currency were stable during the quarter, despite increased supply capacity and pressure from price reductions on recycled based paper
ON TRACK TO REACH SYNERGY TARGETS AHEAD OF PLANANNUAL PACE OF MSEK ~490 AS PER END OF Q2 2014
8*Synergies and savings realised in the quarter, compared to if the synergy and savings programme had not been initiated.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42013 2014
0
100
200
300
400
500
600
Quarterly synergies* Annual pace
MS
EK
Target
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OUTLOOK
Demand and order situation is expected to remain stable during the third quarter 2014 for all business areas
Average prices in local currency are anticipated to stay on current level for the third quarter 2014 for Packaging Paper and Consumer Board. Pressure on primary fibre based prices within business area Containerboard
Wood prices are expected to stay on current level for the second half of 2014
The target of approximately SEK 530 million in annual synergies and savings is unchanged, and is expected to be reached during 2014. Estimated non-recurring costs for realising the synergies increased to approximately SEK 225 million
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Q&A
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