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 SALES 2 360 MSEK 313 PEOPLE 398 900 TON PULP

ROTTNEROS AS AN INVESTMENT CICULAR ECONOMY STRONG FOCUS ON NISCHES SOLID BALANCE SHEET

NYKVIST SKOGS AB A comprehensive and independent forest operator in Värmland. Development of the Group’s raw material supply

SHARE PRICE 1.1.2015 – 31.10.2019 Rottneros OMX Stockholm OMX Stockholm Forestry & Paper TSR 2018: 34,8% 16 • Share price 1,09 kr 14 8,24 kr • Dividend 0,70 + 0,70 kr 10,82 kr • Total 2,49 kr 12 10 7,15 kr 8 6 4 2 2015 2016 2017 2018 2019

MARKET Trends and challenges

PULP PRICE En cyclical market SOURCE: FOEX & Riksbanken

SUPPLY AND DEMAND Producer’s inventories and price 1 300 60 USD/ton Days 1 200 55 1 100 50 45 1 000 40 900 Days 35 800 NBSK-price, USD 30 700 600 25 SOURCE: FOEX & 500 20 jan-12 apr-12 jul-12 okt-12 jan-13 apr-13 jul-13 okt-13 jan-14 apr-14 jul-14 okt-14 jan-15 apr-15 jul-15 okt-15 jan-16 apr-16 jul-16 okt-16 jan-17 apr-17 jul-17 okt-17 jan-18 apr-18 jul-18 okt-18 jan-19 apr-19 jul-19 okt-19 PPPC W-100

WHAT IS PULP USED FOR? Paper and Board production Europe Grafiskt papper Graphical paper Mjukpapper Tissue Kartong Board Other Annat

PRODUCTION DECREASED JAN-AUG 2019 (JAN-AUG 2018) EUROPE -3,3 % 4% 2% 0% -2% -4% -6% -8% -10% -12% -14% Newsprint Uncoated Coated Sanitary & Case Carton Wrappings Other Papers Papers Household Materials Board Papers SOURCE: CEPI

MARKET PULP DEMAND JAN-AUG 2019 (JAN-AUG 2018) Globally -0,6 % 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% North America Europe Latin America Japan China Other Asia / Africa SOURCE: PPPC

ROTTNEROS’ SALES BY APPLICATION Share of total deliveries 2018 Board and Packaging Specialities 13% 29% Electrotechnical appl. 10% Filter Printing and Writing 23% 17% Tissue 8%

Q3 2019 Strong deliveries and cash flow

EBIT Q3 2019 VS. Q3 2018 What is driving results? (MSEK) PRICE AND CURRENCY SALES VOLUME COST OF RAW MATERIAL

EBIT - GROUP Difference in EBIT Jan-Sep 2018 vs. 2019 (MSEK) PRICE AND CURRENCY VARIABEL COSTS FIXED COSTS

EFFICIENT AND SOLID BALANCE SHEET 2016 2017 2018 2019 % 2015 (MSEK) 250 90 200 80 150 70 LOW NET DEBT 100 60 50 50 STRONG CASH FLOW 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -50 30 DIVIDEND TO SHAREHOLDERS -100 20 -150 10 Cash flow from operating activities Net debt Equity / aseets ratio % 0 -200

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 kton MSEK 300 450 900 MSEK INVESTED 250 425 200 400 150 375 CAPACITY INSTALLED 440 000 TON 100 350 50 325 LIMITED INVESTMENTS GOING FORWARD ~ 0 300 100 MSEK 2012 2013 2014 2015 2016 2017 2018 2019 2020 Investments Production / capacity

SUSTAINABILITY Developing a company that is more than 100 years old

ONE COMPANY 1+1 > 2 CUSTOMERS SALES PRODUCTION PLANNING AND SALES ADMINISTRATION HRSC HRSC Rottneros Vallvik Rottneros FINANCE FINANCE V Packaging SOURCING SOURCING TECHNOLOGY TECHNOLOGY OUR VALUES HEALTH & SAFETY SUSTAINABILITY

TARGETS OMSÄTTNING 2 260 MSEK FINANCIAL TARGETS SOCIAL TARGETS 30-50% 0 • Number of accidents • Dividend > 50% 30% • Diversity 2025 • Solidity +3% 100% • Code of Conduct • Production 10% • Alternative income 2023

A NEW PLATFORM READY TO TAKE ON THE FUTURE STRONG BALANCE SHEET • FOCUSED AND MOTIVATED ORGANISATION • ROTTNEROS PACKAGING STARTED • LIMITED ADDITIONAL PULP CAPACITY AHEAD •