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: Alexander Berglund - BofA Merrill Lynch, Research Division - Analyst
: Two questions from my side. I'll start with the first one, which is on graphic paper. So my question is, if in the current environment, if you think that
there is a need for more capacity closures to balance the market going into next year and also how you see UPM's growth here.
Do you think that UPM will make further closures? Or are you happy with the industrial footprint that you have right now with the measures you've
been taking? And how do you think that might be up to others or potentially higher-cost producers to go ahead and close capacity? That was my
first question. I'll let you answer that and then I'll follow-up on my other question.
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Question: Alexander Berglund - BofA Merrill Lynch, Research Division - Analyst
: My second question is on dividend and I know it's a question for the Board, and we'll have to wait for the Q4 results. But I just wonder if you could
share a bit your thinking here because we're getting a lot of questions on dividend and how you think about payout ratio versus the balance sheet
and CapEx. And you have given that EUR 3.5 billion to EUR 4 billion illustrative example. But if any comments, how you're thinking about the
potential phasing of that.
And another question that come up as well that I wanted to ask you is, in these tough times, has there been any political pressure that we should
be aware of against paying large dividends, given it's a tough time for the economy and the industry?
Question: Antti Koskivuori - Danske Bank A/S, Research Division - Analyst
: It's Antti Koskivuori from Danske. Three questions from my side. First one, a follow-up on Communication Paper and the market balance. You
mentioned your operating rates to reach 85%. I was just wondering, how does that compare to the total European market? Would be very interesting
to hear your views on that.
Question: Antti Koskivuori - Danske Bank A/S, Research Division - Analyst
: Yes. I was just trying to get a sense of the overall market balance at the moment or going to '21 and that was the reason for asking that. But yes, I
can take it up with Mika later on.
And then, the second question on the businesses that has kind of benefited from the COVID-19 during the first half of this year. And now you said
that in Q3, in labels volumes, there is -- the destocking impact is visible in Q3. I was just wondering, how do you see the inventory levels at your
customer side at the moment? Should we expect kind of similar type of negative impact on deliveries also in Q4?
Question: Antti Koskivuori - Danske Bank A/S, Research Division - Analyst
: For sure. All right. And the last question, just a clarification on the maintenance cost you see for Q4, just to get it right. Is it the maintenance, as a
total, now seemed to be EUR 50 million higher as a cost versus Q3? Did I get it right?
Question: Antti Koskivuori - Danske Bank A/S, Research Division - Analyst
: Yes. But that is -- that EUR 50 million is including all the maintenance that you are going to do in Q4, not just those 2 mills?
Question: Linus Larsson - SEB, Research Division - Analyst
: I'd like to ask on Lappeenranta and your remark about all-time high production. I wonder if you could share with us what the production was in
the quarter. And also, I'd be curious if you were willing to indicate what kind of run rate return you have on that facility with this improvement that
we have seen on output.
Question: Linus Larsson - SEB, Research Division - Analyst
: And what -- and the reason that I am asking is with the thought of future projects as well. And do you -- and I know there are a lot of decisions,
including locations, for the location to be made. But are you expecting that the next project will be even clearly more profitable than the current?
And how are you seeing that decision-making going, given the uncertainty in the overall macro outlook, et cetera? Yes. And how you're weighing
different possible location against each other?
Question: Linus Larsson - SEB, Research Division - Analyst
: And so at the -- just the final question on that, if I may. When the earliest would the definite go-ahead decision be made?
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