The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Justin Joseph Jordan - BNP Paribas Exane, Research Division - Analyst
: I've got 2 quick questions. Firstly, just relating to the energy futures and hedging on Slide 5 and 6. If we take the gloriously kind of assumption that
energy prices stay stable from here, which I know is the least likely thing, but let's just assume that was the case. Can you let us -- can you help us
understand just how this $1.1 billion would unwind? What sort of time line should we be thinking about for this to unwind? Is this over several
years or several months?
And how that would play out over, let's say, the remainder of 2022, 2023?
And then secondly, if you can just remind us -- just on a routine basis, I know clearly UPM Energy has extensive hedging, but can you remind us
just for modeling purposes, what proportion of the energy output is routinely hedged over what time period? And then on a slightly related area,
my second question is all about gas and gas supply and gas security of supply over, let's just call it the second 6 months of 2022. Clearly, there is
uncertainty regarding [North Stream] and its potential transmission over several months. How could that impact UPM? And I'm thinking particularly
about UPM's Communication Paper business in Germany? And what sort of plans and thoughts do you have in place if the situation deteriorates?
Question: Linus Larsson - SEB, Research Division - Analyst
: My first question is on communication papers and if you could help us with an update on pricing going into the third quarter and maybe also, in
general, on pricing dynamics, which have been somewhat more complex than usually with different kinds of surcharges in the industry, et cetera?
Are we now starting from a clean slate at midyear and maybe most importantly, if you could give some kind of guidance as to what kind of price
change we should expect for the division in Q3 and Q2, please?
Question: Linus Larsson - SEB, Research Division - Analyst
: And how -- could you, in any way, took us through how you've negotiated with your customers, like in terms of validities, for instance, should we
expect that the majority of your publication paper contracts are on, say, 1 quarter contract or what's the typical contract that you've closed?
Question: Linus Larsson - SEB, Research Division - Analyst
: Okay. Okay. And then I don't know if it's possible to talk a bit more about fibers. You've already very clearly said and explained how the Fibers
division was negatively impacted by the strike at the beginning of the quarter and the 2 big maintenance shuts in May. If you were to comment
specifically on June performance, what could you say then? And also just coming back to the previous question on the inventory situation, if you
talk about pulp mill inventories. What's the situation there? Is that a constraint still into the third quarter, please.
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Question: Linus Larsson - SEB, Research Division - Analyst
: Yes. Okay. Good. Good to hear. And then just again, a follow-up on the wood cost situation. It sounds like you haven't seen much in the second
quarter. But in the fibers division, you do have quite a significant Nordic hardwood, pulpwood exposure. Are you seeing that sort of cost inflation
coming through in the third quarter? Or is it rather even later than that?
Question: Linus Larsson - SEB, Research Division - Analyst
: Yes, that makes sense. And what -- just a final, if I may, what mix are you aiming for then in the Finnish pulp production in terms of softwood vis-a-vis
hardwood?
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