metsä board cmd 2014 cfo markus holm's presentation
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CMD 2014 CFO Markus Holm's presentation: Steadily Improving Financial PerformanceTRANSCRIPT
Metsä Board
Steadily ImprovingFinancial Performance
Markus Holm, CFO
CMD22.5.2014
Metsä Board2
Content
1. Financial Performance
2. Cost Inflation
3. Financing
Metsä Board
Financial Performance
Metsä Board
Metsä Board’s Financial Situation Has Improved Materially in Recent Years
4
EBIT % of sales excl. non-recuring items, ROCE %, excl. non-recurring items
7,2
-6,2
6,6
2,4
3,6
5,2
-8
-6
-4
-2
0
2
4
6
8
10
2009 2010 2011 2012 2013 1Q14
6,4
4,8
3,4
7,6
-5,6
9,9
-6
-4
-2
0
2
4
6
8
10
12
2009 2010 2011 2012 2013 1Q14
Target min. 10 %
Metsä Board
Two Strong Business Areas with Good Growth Outlook
1Q 20141Q 2013
5
Sales, m€
222
288
214
271
0
50
100
150
200
250
300
350
Cartonboard Linerboard andPaper
20
11
1820
0
6
12
18
24
30
Cartonboard Linerboard andPaper
Operating result, excluding non-recurring items, m€
Metsä Board
Main Actions to Exceed ROCE 10 %
6
‒ Increase of folding boxboard and linerboard sales and secure healthy price levels
‒ Gradual reduction of unprofitable paper production in Husum
‒ Profitability improvement of Gohrsmühle mill
‒ Continuous improvement of productivity and cost competitiveness
‒ Efficient supply chain and working capital management
Metsä Board
Despite Weak Macroeconomy Metsä Board’s EBITDA HasSteadily Improved Since 2011
7
EBITDA excl. non-recurring items, m€
208
186179
305
44
0
60
120
180
240
300
2009 2010 2011 2012 2013
Metsä Board
Consistent Strenghtening of Balance Sheet
8
777
827783
625597 593
17,7
2,7
4,43,4
2,9 2,8
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012 2013 1Q 140
2
4
6
8
10
12
14
16
18
20
Net Debt and Net Debt/EBITDA* Net Gearing, %
69
84 83
106
7270
0
20
40
60
80
100
120
2009 2010 2011 2012 2013 1Q14
Target max. 100 %
Net debt, m€ Net debt/EBITDA
*Excluding non-recurring items
Metsä Board
40
6766
95
7372
0
20
40
60
80
100
2009 2010 2011 2012 2013 2014
m€
Capex Reducing to about 40 m€ in 2014
Indicative level for 20149
Metsä Board
Profitability of Metsä Board’s Core Business is Best in its Field
Operating result excluding non-recurring items, % of sales
10
Metsä Board
Metsä Board Remains Committed to a Competitive Dividend
11
0,06
0,09
0
0,02
0,04
0,06
0,08
0,1
0,12
2012 2013
Dividend per share€
Payout ratio 47%Payout ratio excl. nri 53%
Payout ratio 12%Payout ratio excl. nri 46%
- Metsä Board's policy is to pay a dividend of at least 1/3 of EPS on average over the business cycle
- Dividend payments were resumed in Spring 2013 after finalization of the heavy restructuring of the company
Metsä Board
Cost Inflation
Metsä Board
Target is to Cover the Normal 1-2 %/a Cost Inflation by Own Continuous Improvement Measures
13
Cost item Share of total costs
Cost change in 2014 vs. 2013
Wood 22 % -2 %
Logistics 14 % +2 %
Chemicals, pigments and fillers 15 % 0 %
Energy 14 % -4 %
Fixed costs 32 % +1 %
Fixed and variable costs total -1 %
No cost inflation expected in 2014
Metsä Board
Financing
Metsä Board
Run Rate of Quarterly Financing Costs Below 10 m€ Thanks to Successful Refinancing
‒ Refinancing consisted of:‒ 225 m€ unsecured bond issue, over 10 times oversubscribed,
4,000 per cent coupon‒ 250 m€ unsecured term loan and RCF provided by Nordic banks‒ Bond, term loan and RCF to rank pari passu
‒ Debt structure normalized on an unsecured basis
‒ Diversified long term funding sources
‒ Maturity profile lengthened
15
Average interest rate of external loans, %
0
5
10
15
20
25
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
Interest costs excl. nris, m€
0
2
4
6
8
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
6,7
4,3
19
9
Metsä Board
Diversified Funding Sources and Healthy Liquidity
16
Long-Term Interest Bearing Liabilities 31.3. 2014
31 %
8 %3 %
28 %
30 %
BondsPension premium loansLoans from financial institutionsFinance leasesOther interest bearing liabilities
Solid liquidity position with 100m€ RCF fully undrawn and 121 m€ of cash and cash equivalent at the end of 1Q 2014. Additionally, 150 m€ reserve in form of Metsä Group's internal undrawn short-term credit facility
Metsä Board
Well Balanced Maturity Schedule
44
94
34
83
181
253
244
100
14
0
50
100
150
200
250
300
2014 2015 2016 2017 2018 2019 2020 >2 020
Long-term interest bearing liabilitiesCommitted undrawn credit facilities
m€
17
Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 31.3.2014
Metsä Board
Positive Rating Development
18
Moody’sStandard & Poor’s
2005 2006 2007 2008 2009 2010 2011 2012 2013
BB+ | Ba1
BB | Ba2
BB- | Ba3
B+ | B1
B | B2
B- | B3
CCC+ | Caa1
CCC | Caa2
Stable
Positive
Metsä Board
Thank you!
QA
19