Upload
zane-tennant
View
215
Download
0
Embed Size (px)
Citation preview
Annual Results 2009
Presentation 12 February 2010
2
Agenda
– Highlights 2009– Financial Results 2009– Operational & Strategic Issues– Outlook 2010– Q&A’s
3
Highlights 2009– Positive results under difficult economic conditions– Net profit EUR 4.5 million (2008: EUR -14.9 million
including impairment charge)– Sales volume decrease of 7% to 198,200 ton in
market with stronger drop in demand, i.e. increase in market share
– Selling price down by 4% on 2008 and peer group with 7-8%
– Strong growth in NBD by 40% to 49,000 ton – Good performance on strategic sustainability agenda– Dividend proposal of EUR 0.50 per depository receipt
of share
4
Key Figures 2005-2009
1) 2005 figure revised
EUR x mln 2009 2008 2007 2006 2005
Total revenue 144.7 160.8 163.2 150.8 142.2
Operating result before impairment1) 5.4 (2,1) 2.7 2.4 12.4
Operating result after impairment1) 5.4 (20,6) 2.7 2.4 12.4
Net result1) 4.5 (14,9) 2.2 2.2 9.0Depreciation 8.3 9.8 9.8 9.7 9.2Capital expenditure 6.0 6.3 3.0 4.1 21.7
Sales (ton) 198,200 212,200 218,600 208,800 200,400Production (ton) 197,800 213,300 220,500 212,500 197,000Number of employees (on average) 301 291 284 286 296
Equity ratio 74% 73% 76% 75% 78%
5
Geographical spread of sales volume CVG
15%
16%
24%11%
11%
13%
10%
Germany
Outside Europe
Other Europe
Belgium/Luxembourg
United Kingdom
France
Netherlands
Production and Sales Volume CVG2009 2008 2007 2006
Production 197,800 213,300 220,500 212,500Sales 198,200 212,200 218,600 208,800
2009 2008 2007 2006Netherlands 15 14 12 10France 16 15 15 19Germany 24 24 23 22United Kingdom 11 14 14 13Belgium/Luxembourg 11 13 15 15Other Europe 13 9 8 6Outside Europe 10 11 13 15
100% 100% 100% 100%
6
Nordea: Demand development (annual changes and YtD 2009)
Demand (November 2009)YoY YtD
EuropeSC magazine paper -4% -8%Coated mechanical -11% -22%Newsprint -10% -13%Coated mechanical -10% -16%Uncoated fine paper -8% -14%Coated fine paper -8% -17%Source: Nordea
7
1. Intro & doelstellingen
Financial Results 2009
8Source: FOEX/PIX-index
NBSK PIX Prices 2004-2009
350
375
400
425
450
475
500
525
550
575
600
625650
675
700
725
750
775
800
825
850
875
900
925
jan
-04
ap
r-0
4
jul-
04
okt-
04
jan
-05
ap
r-0
5
jul-
05
okt-
05
jan
-06
ap
r-0
6
jul-
06
okt-
06
jan
-07
ap
r-0
7
jul-
07
okt-
07
jan
-08
ap
r-0
8
jul-
08
okt-
08
jan
-09
ap
r-0
9
jul-
09
okt-
09
jan
-10
NBSK in EUR NBSK in USD
2004 2008200720062005 2009
9
Pulp market developments (1)
10
ChinaBCP import volumes and market values (6 month moving average)
0
400
800
1200
Import volumes(000s t)
Import value ($million)
November 2009
Source: HW estimates, China Customs Data
Pulp market developments (2)
11
Pulp prices in 2010?Short term:– Temporary lower supply due to severe weather conditions;
low pulp stock levels– Continuing high demand, especially from China– Strengthening of USD reflected in higher EUR pricesRemainder of the year:– Economic developments in China– Extra pulp production capacity (esp. Hardwood)– Pace of economic recovery in Europe and N-America lower
paper usage, temporary and structural?– EUR/USD exchange rate developments not clear
Conclusion: In short term, further rise in pulp prices is expected; for the remainder of the year, developments are uncertain.
12
Consolidated Income Statement 2009 2008(EUR x 1,000,000) (unaudited)
Total revenue 144.7 160.8 Other income - 0.2
144.7 161.0
Costs related to turnover (7.9) (8.4) Raw materials, consumables and energy (84.5) (111.7) Change in inventories of finished goods (1.7) (0.1) Employee benefits costs (21.7) (19.4) Depreciation and amortisation (8.3) (9.8) Other expenses (15.2) (13.7) Total operating expenses (139.3) (163.1) Operating result 5.4 (2.1)
Impairment on fixed assets - (18.5) Operating profit after impairment 5.4 (20.6)
Finance costs (0.4) (0.7) Share of after tax profit of associate 0.4 0.6 Result before taxation 5.4 (20.7)
Tax income/(expense) (0.9) 5.8 Result for the year from continuing operations
4.5 (14.9)
Non-controlling interests - - Net Result from continuing operations 4.5 (14.9)
13
Input costs 2009 vs 2008 (EUR mln)Bleached Pulp- Lower purchase volume (6.7)- Lower prices (18.7)
(25.4)Gas- Lower purchase volume (0.4)- Higher price level +0.8
+0.4Electricity- Purchase volume -- Higher other costs & lower MEP-subsidy +0.4
+0.4Other raw materials and consumables (2.6)Total cost decrease 2009 versus 2008 (27.2)
14
Financial Position & Cash FlowFinancial Position– Slight increase in working capital, mainly due to higher
pulp stocks– No significant change in account receivable overdues– High equity ratio of 74%– Committed credit facilities (totalling EUR 33 mln) only
partly usedCash Flow– Operating Cash Flow in line with Capex and dividend
pay-out– Dividend pay-out of 79% over the business cycle
CVG is financially well structured in chalenging economic environment
15
1. Intro & doelstellingen
Results European Paper Companies
16
Peer group results 2009Stora Enso:- Net result down to EUR -878 mln in 2009 (2008: EUR -679 mln) - Non-recurring items EUR -933 mln (2008: EUR -1,045 mln)- Operating profit (excl. spec. items) Fine Paper division down to
EUR 33 mln (2008: EUR 80 mln)UPM:- Net result up to EUR 169 mln (2008: EUR –180 mln)- Non-recurring items EUR -135 mln (2008: EUR -489 mln)- Operating result (excl. spec. items) Paper division up to
EUR 346 mln (2008: EUR 250 mln)M-Real:- Net result up to EUR -354 mln (2008: EUR -508 mln)- Non-recurring items EUR -117 mln (2008: -26 mln)- Operating loss (excl. spec. items) Office Paper division down
to EUR -56 mln (2008: EUR -24 mln)
17
Peer Group ComparisonROCE (%) 2009 2008 2007 2006 Target over
the cycleCVG 5.7** -2.0** 2.3** 1.9* 11.0M-Real* -9.8** -3.8** 2.2** 1.0* 10.0StoraEnso* 2.8** 5.3** 9.7** 7.1* 13.0UPM 6.1** 3.8** 3.6** 5.4* n.a.
Sales (ton) Selling priceCVG -4%M-Real* -8%StoraEnso* -7%UPM** -8%
Figures excluding non-recurring items
* = Fine Paper division
** = Paper division
-7%-6%
2009 vs. 2008
-7%-27%
18
1. Intro & doelstellingen
Operational & Strategic Issues
19
10. Improved position on the labour market
1. Higher added value to existing and new customers
2. Increase in production by efficiency measures
3. Improved services and handling of complaints
4. Expanding our customer base
5. Remaining an independent company
6. Solid return on capital employed, ample solvency, and an attractive dividend yield
7. Use of renewable energy
8. Sustainable products
9. Good employment policy
Mission Statement 2012
20
Production Volume
Output 197,800 ton in 2009, down 7% on 2008
- Lower order intake- Smaller batches - Strong growth in NBD
• 49,000 ton (+40%)• 25% of production volume
- Time spent on developingand testing of new products
- New ICT logistics system
Production Volume
197.000
212.500
220.500
213.300
197.800
150.000
170.000
190.000
210.000
230.000
250.000
2005 2006 2007 2008 2009
Target 235,000 ton in 2012
21
New Business Development Sales & Innovation
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
45.000
50.000
55.000
60.000
65.000
2005 2006 2007 2008 2009 2010 est.
NB
D T
on
So
ld
0
2
4
6
8
10
12
14
16
18
Nu
mb
er o
f N
ew N
BD
Pro
du
cts
22
New Products
Crown DI Base 175-230
Base paper for photo quality inkjet
CrownPoster Base 110-
170
Wet strength basepaper for posters
Crown Label Blue Back 100
Label base paperwith very high opacity
Crown Digital FC 90
Coated paper fordigital printing
23
Sustainably Managed Forests
Sourcing of CoC Certified Bleached PulpFSC or PEFC Chain-of-Custody certified
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009
Target 70% in 2012
24
Future Power Plant (DEC)
Based on renewable energy sources (RDF)
Presently no business case due to:– limited availability and higher costs of RDF– financing difficult due to credit crisis– higher investment costs– relative low price of natural gas
25
1. Intro & doelstellingen
Outlook 2010
26
StoraEnso: – Pickup in demand to be slow and insufficient to restore supply
and demand balance in short term– Improvement in WFU demand in current quarter– Uncoated fine paper prices seem to have bottomed out
UPM: – Paper demand in Europe is forecast to be higher– Price outlook for fine paper is more positive due to better market
balance and higher cost of pulp– Order intake better, but low capacity utilisation rate in Europe will
continue
M-Real: – Demand in WFU to continue at a good level in Q1– M-Real has announced price increases of 8% across all main
markets that will take effect at the beginning of March
27
Deutsche Bank:
Overcapacity of graphics papers in Europe2010E 2011E 2012E
Production* CapacityOver
Capacity% of totalcapacity Production* Capacity
OverCapacity
% of totalcapacity Production* Capacity
OverCapacity
% of totalcapacity
Newsprint 11.2 13.1 2.0 14.9 11.2 12.4 1.2 9.7 11.4 12.5 1.0 8.4Coacted fine 8.0 9.5 1.5 16.1 8.1 9.4 1.3 13.8 8.2 9.3 1.1 12.0Uncoated fine 9.9 12.1 2.2 18.0 10.0 11.6 1.5 13.1 10.3 11.6 1.3 11.0Coated magazine 7.8 9.8 2.0 20.3 8.0 9.7 1.6 17.0 8.1 9.7 1.5 15.9Uncoated magazine 6.2 7.4 1.2 16.4 6.6 7.4 0.8 11.1 6.7 7.4 0.7 9.0* Apparent consumption plus net exports** All numbers are in m tonnes unless otherwise statedSource: Deutsche Bank estimates, RISI
28
Outlook for 2010
1. Good order book and cautious recovery of demand, although lower than pre crisis levels
2. Fierce competition due to low capacity utilisation in WFU sector in Europe
3. Crown Van Gelder must raise prices to compensate for higher pulp costs
4. Company has a strong financial position and is well positioned to cope with head winds
The ultimate magnitude and timing of selling price increase and the developments in the pulp markets will be crucial in realising positive results in the first half of 2010. Given the uncertainties Crown Van Gelder is not in a position to give an outlook for the full year’s results.
29
Questions