UPM-Kymmene Oyj Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Linus Larsson - SEB, Research Division - Analyst : And again, congratulations to both Jussi and Massimo. A couple of questions just for clarification sake, on capital allocation, you are increasing your CapEx guidance for 2023. And in light of that, could you just specify the Leuna CapEx? How much that is? And also, what's the latest around Rotterdam? And what's the time line of that project? And what are the deciding factors that you are in particular, analyzing at this stage, please?

Question: Linus Larsson - SEB, Research Division - Analyst : And just to follow-up then. Back in July, you kind of indicated that CapEx for 2024 would be by and large, around the depreciation of EUR 600 million. Is that still a rough and fair assumption?

Question: Ramchandra Kamath - Barclays Bank PLC, Research Division - Analyst : Best wishes for Jussi. I remember a couple of quarters back, you alluded a new era is coming as paper market won't be as same as past 20 years or so. I would like to hear from you what has changed in paper business over the years and how it is evolving considering the margin you maintained or improved in this paper business?

Question: Ramchandra Kamath - Barclays Bank PLC, Research Division - Analyst : And on the pulp business, it looks like China demand is coming back and growing while the European market remains subdued. Do you see pulp moving more towards Asia now and does impact realization even for coming quarters?

Question: Ramchandra Kamath - Barclays Bank PLC, Research Division - Analyst : And if I may, last question on this wood prices. It looks like the wood prices remains high. And apart from this import restriction from Russia and lower supply still remain resilient, do you see any other reason why it continue to be so resilient and put pressure on pulp producers?