Nordea Small Cap Days August 16, 2019 ROTTNEROS IN BRIEF OMSTTNING - PowerPoint PPT Presentation

Nordea Small Cap Days August 16, 2019

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

ROTTNEROS AS AN INVESTMENT CICRULAR ECONOMY STRONG FOCUS ON NICHES SOLID BALANCE SHEET

SHARE PRICE 1.1.2015 – 14.8.2019 Rottneros OMX Stockholm OMX Stockholm Forestry & Paper 16 TSR 2018: 25% 14 • Share price 1,09 kr • Dividend 0,70 kr 8,24 kr 12 • Total 1,79 kr 10 7,15 kr 8 6 4 2 2015 2016 2017 2018 2019

MARKET Trends and challenges

PULP PRICE A cyclical market Source: FOEX & Riksbanken

DEMAND AND SUPPLY Producer’s inventories and price 1 300 60 USD/ton Days 55 1 200 1 100 50 1 000 45 40 900 Days of supply 800 35 NBSK-price, USD 700 30 25 600 500 20 Source: FOEX & 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 PPPC W-100 Days NBSK Price, USD

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

DECREASED DEMAND Q1 2019 (Q1 2018) EUROPE – 1.2% Source: CEPI

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%

Q2 2019 Record production stable resultat

EBIT Q2 ’19 VS Q2 ’18 What is driving results? 180 (MSEK) 20 -28 160 +41 140 -17 120 -4 PRICE AND -3 103 94 CURRENCY 100 80 PRODUCTION 60 40 COST OF RAW 20 MATERIALS 0 Apr - Jun Price and Vulme effect Variable costs Fixed costs Depreciation Other income Apr-jun 2019 2018 currency Result Costs Revenue

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 -50 30 DIVIDEND PAID -100 20 -150 10 Cash flow from operating activities Net debt Equity / assets ratio % 0 -200

THE WAY AHEAD

TRENDS FAVOURING PULP OMSÄTTNING 2 260 MSEK TISSUE E-COMMERCE TEXTILES PLASTIC OCEAN

STRONGER AND MORE RESILIENT 900 MSEK INVESTED CAPACITY INSTALLED 440 000 TON LIMITED INVESTMENTS GOING FORWARD ~ 100 MSEK Investments 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 COPORATE VALUES HEALTH & SAFETY SUSTAINABILITY

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

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