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 Securities, Research Division - Analyst
: Two questions from my side. The first one is on the different pricing trends we are seeing between pulp and graphic paper right now. And I know
you don't want to predict pricing. But if you look at the current dynamics in graphic paper, is your sense that the market needs more capacity
reductions to balance? And do you think that inflation that we are now seeing in both pulp and [O&P] could accelerate this?
And then more specifically for UPM, I wonder if you see any merit in consolidating your graphic paper assets with other player to better optimize
the footprint in the market. That was my first question. I will let you address it, then I have some quick modeling follow-ups, if that's okay.
Question: Alexander Berglund - BofA Securities, Research Division - Analyst
: So moving on to some modeling questions. You mentioned at the end (inaudible) the refunds was flat on a year-on-year basis. I wonder if you can
quantify it in millions and the benefit you had there.
Secondly, I'm just wondering if you could remind us on the impact that you had in Q1 last year from the strikes in Finland and how we should think
about that reversing. And then finally, if you're also able to quantify the higher maintenance impact that you're going to have in this first half
compared to 2020.
Question: Justin Joseph Jordan - Exane BNP Paribas, Research Division - Analyst
: I've got 2 separate questions. Firstly, on the spearheads capital commitments. If you look at, for example, Note 6 on Page 27 of your release, I
appreciate you've guided to total CapEx of EUR 2 billion this year and EUR 31.8 billion or so on the spearheads. So am I right in thinking that would
leave some EUR 900 million to be completed, as it were, in calendar '22, '23? I'm not asking for a split between those 2 years. Clearly, that's sort of
EUR 900 million approximately, excluding whatever the Board may decide on the biorefinery at some point in 2022.
Question: Justin Joseph Jordan - Exane BNP Paribas, Research Division - Analyst
: Okay. And then just on -- you guided clearly first half EBIT of being lower year-over-year and second half EBIT higher year-over-year. I just wanted
to double check in terms of mill maintenance shuts in 2021, that there isn't any (inaudible) shuts in the second half of 2021. And clearly, that's a
Question: Justin Joseph Jordan - Exane BNP Paribas, Research Division - Analyst
: Okay. And I guess just one final sort of follow-on, if I could. I appreciate investors will remain nervous about Communication Paper outlook because
of the structural demand decline trends. But I assume that, frankly, as you've done in the last 69 quarters, you and the Board will continue to take
whatever action is required to just maintain high operating rates.
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