Debt Investor Presentation 3Q 2013 - Metsä Board results/2013… · Metsä Board Metsä Group...
Transcript of Debt Investor Presentation 3Q 2013 - Metsä Board results/2013… · Metsä Board Metsä Group...
Metsä GroupMetsä Board
Debt Investor Presentation 3Q 2013
6.11. 2013
Metsä GroupMetsä Board
Good Financial Situation Continues
‒ Gross debt 748 m€, cash and interest bearing receivables 126 m€ and net debt 622 m€
‒ 100 m€ RCF fully available
‒ Metsä Board divested its 51% holding in Metsä Group Treasury to Metsäliitto Cooperative
‒ Net gearing 75%, equity ratio 38.4% at end 3Q 2013
‒ Average interest rate 5.5% at end 3Q 2013
‒ S&P upgraded Metsä Board’s credit rating from B- to B in August
Net Debt, m€
622
3693
2403
0
500
1000
1500
2000
2500
3000
3500
4000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
3Q13
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Metsä GroupMetsä Board
Agreement on Metsä Board’s Refinancing Signed in May 2012
‒ 600 m€ term loan and revolving credit facility agreement with a syndicate of five banks and certain Finnish institutional investors
‒ This agreement was utilized to refinance the 500 m€ eurobondmatured in April 2013
‒ Facilities include a 100 m€ RCF available immediately and 500 m€term loans available from late March 2013
‒ Maturity of RCF is three years ‒ 150 m€ of term loans matures at end June 2014 and 350 m€ at end March 2016
‒ The average financing cost of the facilities calculated for the entire loan period is 6.5 %
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Metsä GroupMetsä Board
Loans and Interest Rate
At the end of 3Q 2013
‒ Average maturity of long term loans 2,2 years
‒ Average interest rate of loans (including derivatives) 5,5 %
‒ Interest rate maturity of loans (including derivatives) 14,6 months
‒ Of the loans about 67 per cent was subject to variable interest rates and 33 per cent to
fixed interest rates
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Metsä GroupMetsä Board
Total 738 m€ 30.9.2013
Long-Term Interest Bearing Liabilities
22 %
7 %
4 %
67 %
Pension premium loansLoans from financial institutionsFinance leasesOther interest bearing liabilities
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Metsä GroupMetsä Board
Interest Bearing Net Liabilities 30.9.2013
‒ Long-term 738
‒ Short-term 10
Total interest bearing liabilities 748
‒ Liquidity and interest bearing receivables 126
Interest bearing net liabilities 622
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m€
Metsä GroupMetsä Board
Long-term Interest Bearing Liabilities and CommittedUndrawn Credit Facilities 30.9.2013
25
186
71
366
21 21 20 28
100
66
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017 2018 2019 >2 019
Long-term interest bearing liabilitiesCommitted undrawn credit facilities
m€
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Metsä GroupMetsä Board
Liquidity
Committed credit facilitiesLiquid fundsm€
0
100
200
300
400
500
600
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13*
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*Divestment of 51 % in Metsä Group Treasury reduced the consolidated amount of cash at Metsä Board’s balance sheet
Metsä GroupMetsä Board
33,3 32,4
38,7
27,9
31,1 31,233,2
0
5
10
15
20
25
30
35
40
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13*
757469
737073
103
0
20
40
60
80
100
120
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Balance Sheet Ratios
Equity Ratio Net gearing%%
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*Divestment of 51 % in Metsä Group Treasury improved equity ratio by about 5 percentage points
Metsä GroupMetsä Board
Debt Programs
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The following table sets forth the significant debt securities issued and outstanding of Metsä Board as at Sept. 30, 2013
Average
Long-term borrowings Total amount Outstanding Interest Rate (1) Maturity
USD 350 million Private Note Issue USD 350 USD 0 – –EUR 500 million Bond Issue EUR 500 EUR 0 – –Global Medium-Term Note Program EUR 1 500 EUR 0 – –Bridge Financing Faciility 2012 EUR 150 EUR 150 6,2 % 2014Term Loan Facility 2012 EUR 350 EUR 350 6,5 % 2016EUR 58 million bilateral loans EUR 58 EUR 58 1,8 % 2013-2015EUR 28 million finance leases EUR 28 EUR 28 2,4 % 2013–2020EUR 228 million pension loans EUR 228 EUR 162 4,7 % 2013–2020
Short-term funding programmes (Metsä Group Treasury)EUR 150 million domestic CP-program EUR 150 EUR 0 – –
Average interest rate of all Metsä Board Group interest bearing liabilities including interest rate derivatives per 30.9.2013 is 5,5 %.
The following table sets forth Metsä Board´s principal long-term liquidity reserves as at Sept. 30, 2013:
Average Liquidity reserves Total amount Outstanding Interest Rate (1) Maturity
(EUR in millions)Revolving Credit Facility 2012 EUR 100 EUR 0 – 2015Pension loan facilities EUR 228 EUR 162 4,7 % -
(1) The average interest rates take into account outstanding interest rate swaps and amortised arrangement fees.
(currency in millions)
Metsä GroupMetsä Board
Ratings’ History
2000S&P: Short term ratings lowered to A3, Long term ratings placed to credit watch negativeMoody’s: Long and short term ratings outlook changed from stable to negative
2001S&P: Long term ratings lowered to BBB-,stable outlookMoody’s: Long and short term ratings lowered to Baa3/P3, negative outlook
2003S&P: Downgrade to BB+, stable outlookMoody’s: Downgrade to Ba1, negative outlook
2004S&P: Outlook changed from stable to negative, ratings affirmedMoody’s: Downgrade to Ba2, stable outlook
2005S&P: Downgrade to BB, stable outlookMoody’s: Outlook changed from stable to negative, ratings affirmed
2006S&P: Downgrade to BB-, negative outlookMoody’s: Downgrade to Ba3, negative outlookMoody’s: Downgrade to B2, negative outlookS&P: Downgrade to B+, negative outlook
2007Moody’s: Downgrade to B3, negative outlookS&P: Downgrade to B, negative outlookS&P: Downgrade to B-, stable outlook
2008S&P: Outlook to negative
2009S&P: Downgrade to CCC+, negative outlook Moody’s: Downgrade to Caa1, outlook negative
2010S&P: Outlook to stableMoody’s: Outlook to stableS&P: Upgrade to B-, stable outlookMoody’s: Upgrade to B3, outlook to positive
2011S&P: Outlook to positiveS&P: Outlook to stableMoody’s: Outlook to stable
2012Moody’s: Outlook to positive
2013S&P: Outlook to positiveMoody’s: Upgrade to B2, outlook stableS&P: Upgrade to B, outlook stable
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