Rottneros (RROS) ABGSC Investor Days summary

Company overview and market position

• Produces 350,000 tons of pulp annually with 290 employees and SEK 2.7 billion turnover in 2023.

• Operates mills in Värmland and Hälsingland, with a 400-year company history.

• Sources raw material mainly from Swedish private forest owners and some from the Baltics.

• Specializes in niche pulp segments like filters and electrotechnical applications.

• Exports mainly to Europe (two-thirds), with Asia and North America as key markets.

Product and market dynamics

• Focuses on specialized pulp for filters, electrotechnical, and cartonboard applications.

• Sales are well-diversified across stable niche markets, less exposed to economic cycles.

• Asia (excluding China) is a significant market for cartonboard pulp; North America imports unique grades.

• China dominates global pulp demand, driving price cyclicality.

Financial performance and investments

• Achieved SEK 40 million profit in Q3 and SEK 75 million for the first nine months of 2023.

• Fiber costs have more than doubled in three years, impacting margins.

• Invested SEK 320 million YTD, expecting SEK 460 million by year-end, mainly to boost CTMP capacity and renewable energy.

• Maintains a strong balance sheet with SEK 260 million liquidity at quarter-end.