Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — Svenska Cellulosa Aktiebolaget SCA — Q2 2023 Earnings Presentation
24 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jul 21, 2023
Slide 1: Interim Report Presentation Q2 2023
Interim Report Presentation Q2 2023 July 21, 2023
Slide 2: Ulf Larsson, CEO
Ulf Larsson, CEO
Slide 3: Summary Q2 2023
Summary Q2 2023 Strong profitable growth in energy and forest but continued weak demand in wood, pulp and containerboard EBITDA margin of 37 % Sales decreased 22% vs Q2 2022 • Price/mix -25%, currency 8%, volume -5% EBITDA decreased 46% vs Q2 2022 ‒ Lower prices ‒ Lower volumes solid wood products +
Slide 4: SCA's performance Q2 2023
SCA’s performance Q2 2023 EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin 1,700 20% 3,121 -46% 2,806 2,684 2,608 2,484 2,260 1,981 2,055 EBITDA margin Net debt/EBITDA 59% 1,700 53% 52% 53% 50% 37.1% 1.3x 47% 41% 43% 37% Q2 '21 Q3 '21 Q4 '21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 1. LTM
Slide 5: Forest Q2 2023 vs. Q2 2022
Forest Q2 2023 vs. Q2 2022 Net sales (SEKm) EBITDA (SEKm) EBITDA margin +18% +25% Stable wood supply to industries 1,945 817 42.0% 39.8% 1,642 654 Sales up 18% + Higher prices EBITDA up 25% + Higher harvesting level own forest Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 + Higher prices Price dev
Slide 6: Wood Q2 2023 vs. Q2 2022
Wood Q2 2023 vs. Q2 2022 Net sales (SEKm) EBITDA (SEKm) EBITDA margin -39% -78% Weak, but seasonally stronger, demand 2,202 913 41.5% Sales down 39% 1,353 - Lower prices 14.9% - Lower volumes 201 EBITDA down 78% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 - Lower prices - Lower volumes Price dev
Slide 7: Wood market development
Wood market development Stock of sawn pine and spruce wood, Sweden and Finland (k m3) Price development sawn pine and spruce, Sweden (index) 6,000 Normalized monthly level 340 5,000 290 4,000 240 3,000 Spruce 190 2,000 Pine 1,000 140 0 90 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-2
Slide 8: Pulp Q2 2023 vs. Q2 2022
Pulp Q2 2023 vs. Q2 2022 Net sales (SEKm) EBITDA (SEKm) EBITDA margin -9% -55% Ongoing ramp up of new CTMP line 1,926 845 43.9% 1,760 Sales down 9% - Lower prices 380 21.6% + Positive currency effects EBITDA down 55% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 - Lower prices - Higher wood raw ma
Slide 9: Pulp market development
Pulp market development NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 14.5 1600 80 1400 70 14.0 60 1200 13.5 50 Average 1000 40 13.0 800 30 12.5 600 20 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jan-17 Apr-17 Jan-18 Apr-18 Apr-19 Oct-17 Oct-18 Jan-19 Oct-19 Jan
Slide 10: Containerboard Q2 2023 vs. Q2 2022
Containerboard Q2 2023 vs. Q2 2022 Net sales (SEKm) EBITDA (SEKm) EBITDA margin -19% -71% Ramp up new paper machine Obbola 1,772 742 41.9% according to plan 1,432 Sales down 19% - Lower prices 15.2% 217 + Higher volumes EBITDA down 71% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 - Lower prices P
Slide 11: Containerboard market development
Containerboard market development Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 1,000 122 4.9 119 900 4.8 116 800 4.6 113 4.5 110 700 107 4.3 104 600 Unbleached kraftliner price Euwid (LHS) 4.2 101 500 Kraftliner deliveries Europe (RHS) 4.0 98 Jul-18 Jul-19 Jul-20 Jul-21 Ju
Slide 12: Renewable energy Q2 2023 vs. Q2 2022
Renewable energy Q2 2023 vs. Q2 2022 Sales (SEKm) EBITDA (SEKm) EBITDA margin +22% +153% Strong profitable growth 402 182 45.3% 330 Sales up 22% + Higher prices 21.7% 72 EBITDA up 153% + Higher prices Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 12 Note: Sales comprises net sales and other operat
Slide 13: Andreas Ewertz, CFO
Andreas Ewertz, CFO
Slide 14: Forest prices in Northern Sweden
Forest prices in Northern Sweden Forest land prices – average in areas where SCA owns forest (SEK/m3) 500 Value of forest assets increased Average Ludvig & to SEK 99bn 450 Co och Svefa • Value of biological assets 400 increased SEK 925m 350 366 366 • Applied market price kept stable 300 324 due to l
Slide 15: Income statement
Income statement Quarter SEKm Q2 2023 Q2 2022 Change Net sales 4,582 5,899 -22% EBITDA 1,700 3,121 -46% EBITDA margin 37.1% 52.9% -15.8 p.p. Depreciation and impairment -471 -386 22% EBIT 1,229 2,735 -55% EBIT margin 26.8% 46.4% -19.6 p.p. Financial items -103 -5 Profit before tax 1,126 2,730 -59% T
Slide 16: Development per segment and quarter
Development per segment and quarter Forest Wood Pulp Containerboard Renewable Energy Net Sales (SEKm) 2,202 1,931 1,945 1,926 1,897 1,822 1,881 1,760 1,760 1,772 1,694 1,642 1,612 1,626 1,573 1,412 1,422 1,432 1,297 1,353 470 514 330 324 402 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q
Slide 17: Net sales Q2 2023 vs. Q2 2022
Net sales Q2 2023 vs. Q2 2022 Lower prices Wood, Containerboard and Pulp SEK Weaker market Wood, higher 5,899m -25% delivery volumes Pulp and Containerboard SEK SEK -1,504m +8% 4,582m -5% SEK SEK +472m -285m -22% Net sales Price/Mix Volume Currency Net sales Q2 2022 Q2 2023 17
Slide 18: EBITDA Q2 2023 vs. Q2 2022
EBITDA Q2 2023 vs. Q2 2022 Lower prices Wood, Containerboard and Pulp SEK 3,300 3,121m -1,525 2,800 Lower logistics costs, planned maintenance Weaker market Wood stop Obbola 2,300 Higher costs for wood raw material SEK 1,800 +383 +35 1,700m -167 -142 -5 1,300 800 EBITDA margin EBITDA margin - 46% 52
Slide 19: Cash flow
Cash flow Quarter Jan - June SEKm Q2 2023 Q2 2022 2023 2022 EBITDA 1,700 3,121 3,755 5,729 Revaluation of biological assets and other non cash flow items -491 -481 -949 -972 Operating cash surplus 1,209 2,640 2,806 4,757 Change in working capital 1 -369 -149 -993 Current capital expenditures -350 -3
Slide 20: Balance sheet
Balance sheet SEKm Jun 30, 2023 Dec 31, 2022 Forest assets 98,891 97,882 Working capital 4,290 4,138 Deferred tax relating to forest assets -19,578 -19,468 Other capital employed 24,089 23,795 Total capital employed 107,692 106,347 Net debt 10,809 9,989 Net debt/EBITDA 1.3x 1.0x Equity 96,833 96,358
Slide 21: Summary
Summary Ulf Larsson, CEO WSCA
Slide 22: Summary Q2 2023
Summary Q2 2023 Strong profitable growth in energy and forest but continued weak demand in wood, pulp and containerboard EBITDA margin of 37 % Sales decreased 22% vs Q2 2022 • Price/mix -25%, currency 8%, volume -5% EBITDA decreased 46% vs Q2 2022 ‒ Lower prices ‒ Lower volumes solid wood products +
Slide 23: Q&A
Q&A
Slide 24: Europe's largest private forest owner
Europe’s largest private forest owner This presentation may contain forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read SCA’s most recent annual report for a better
Svenska Cellulosa Aktiebolaget SCA — Q2 2023 Earnings Presentation on 6ix