Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Q1 2009 Earnings Presentation
22 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, April 2009
Slide 1: SCA Interim Report 1 January – 31 March 2009
SCA Interim Report 1 January – 31 March 2009
Slide 2: General market update
Q1 2009 General market update Global GDP expectations -2.1% for 2009 EURO area industrial production expectations -14% for 2009 Hygiene business Stable demand in mature markets Continued good growth in emerging markets Packaging and Forest Products Weak demand for packaging Western E
Slide 3: SCA business market update
Q1 2009 SCA business market update Hygiene business Stable demand in mature markets Continued good growth in emerging markets Packaging and Forest Products Continuous weak demand for Packaging Stable demand for solid-wood products and publication papers 3 SCA Interim Report Q1 2009
Slide 4: Q1 2009 results
Q1 2009 results SEK millions Q1 Q1 Change, Q4 unless otherwise stated 2009 2008 % 2008 Net sales 28,327 27,513 3 28,159 EBIT 2,136 2,471 -14 1,838 EBIT margin (%) 7.5 9.0 6.5 Profit before tax 1,511 1,946 -22 1,150 Earnings per share (SEK) 1.58 2.18 -28 2.02 Cash flow from current operations 1,640 -
Slide 5: Summary Q1 2009 vs Q4 2008
Q1 2009 vs Q4 2008 Summary Group Sales growth of 1%, currency 5% EBIT increased 16%, currency 6% Profit before tax increased 31%, currency 9% Cash flow from current operations increased SEK 8m Higher EBIT mainly due to increased EBIT in Tissue and Forest Products Business areas Increased
Slide 6: Personal Care and Tissue: Q1 2009 vs Q4 2008
Q1 2009 vs Q4 2008 Personal Care and Tissue Personal Care, EBIT decreased 1% SEKm Tissue, EBIT increased 40% SEKm 6 SCA Interim Report Q1 2009
Slide 7: Packaging and Forest Products: Q1 2009 vs Q4 2008
Q1 2009 vs Q4 2008 Packaging and Forest Products Packaging, EBIT decreased 26% SEKm 212 -257 -40 Forest Products, EBIT increased 13 % SEKm 115 7 SCA Interim Report Q1 2009
Slide 8: Summary Q1 2009 vs Q1 2008
Q1 2009 vs Q1 2008 Summary Group Sales growth of 3%, currency 11% Hygiene sales growth in emerging markets of 21%, currency 6% EBIT decline of 14%, currency 6% Profit before tax decreased 22%, currency 3% Cash flow from current operations increased SEK 1,659m Higher prices and lower raw
Slide 9: Personal Care
Personal Care Q1 2009 vs Q1 2008 Sales increased by 16%, currency 13% Incontinence care, 15% sales growth 6,476 • Healthcare sales increased 15% 16% 5,564 Baby diapers, 21% sales growth • Strong growth in emerging markets Feminine care, 11% sales growth • Good growth in Latin America and Eur
Slide 10: Tissue
Tissue Q1 2009 vs Q1 2008 Sales increased by 13%, currency 11% Consumer tissue, 14% sales growth 10,466 • Improved product mix 9,279 13% • Higher prices AFH tissue, 15% sales growth • Improved product mix • Higher prices in all regions SALES SEKm Q1 2009 Q1 2008 • Lower volumes Sales growth
Slide 11: Packaging
Packaging Q1 2009 vs Q1 2008 Sales decreased 6%*, currency 12% Lower volumes and prices 8,713 7,495 EBIT decreased by 87%, currency 1% -6%* Lower volumes and prices Production downtime 66,000 tonnes SALES SEKm Q1 2009 Q1 2008 Lower raw material costs Reduced number of employees by appr
Slide 12: Forest Products
Forest Products Q1 2009 vs Q1 2008 Sales increase of 1%, currency 3% Publication papers, increased sales • Higher prices 4,333 4,290 Solid-wood products, decreased sales 1% • Higher volumes • Lower prices EBIT decreased by 11%, currency 6% SALES SEKm Q1 2009 Q1 2008 Publication papers, inc
Slide 13: Packaging: Market challenges and SCA response
Packaging Market challenges SCA response High liner inventories Production curtailments Earlier closure of New Hythe Overcapacity testliner mill Rationalization of units and Weak demand work force 13 SCA Interim Report Q1 2009
Slide 14: Corrugated market demand
Corrugated market demand Western Europe -10%* adjusted for fewer working days Western Europe YTD February growth: -16.0% Corrugated Shipments (MSQM) * Year to date February 2009 vs 2008 14
Slide 15: Price development – Testliner and Kraftliner
Euro/tonne 15 ju 200 250 300 350 400 450 500 550 l-0 3 no v- 03 Source: FOEX m ar -0 4 ju l-0 4 no v- 04 Testliner m Kraftliner ar -0 5 ju l-0 5 no Containerboard v- 05 m ar -0 6 ju l-0 6 no v- 06 m ar -0 7 ju l-0 7 no v- 07 m Price development – Testliner and Kraftliner ar -0 8 ju l-0 8 no v- 08 m
Slide 16: European recycled paper machines
Containerboard European recycled paper machines 700 Ktonnes > 300KT > 150KT Æ 300KT < 150KT 600 500 400 300 200 100 0 Machines 5.6 MT - 25% 8.1 MT - 35% 9.2 MT - 40% SCA 16 SCA Interim Report Q1 2009
Slide 17: Packaging: Immediate corrective measures
Packaging Immediate corrective measures Containerboard Early closure of New Hythe testliner mill mid 2009 (capacity 260,000 tonnes) Headcount optimization Corrugated Downsizing and optimization of businesses Closure of 11 corrugated units Productivity and product mix improvement at 50 unit
Slide 18: Packaging: Efficiency potential
Packaging Efficiency potential Annual EBIT savings Total cost SEK 1,700m SEK 1,070m from Q2 2010, EBIT margin improvement Write down Cash 3-3.5 percentage points expenditure SEK 640m SEK 1,060m 2009 EBIT savings Headcount reduction SEK 310m approximately 2,200, corresponding to ~14% of total Europea
Slide 19: Packaging: Cost and cash flow impact
Packaging Cost and cash flow impact Cost distribution 2009 Q2 SEK 470m Q3 SEK 250m Q4 SEK 980m Full year SEK 1,700m Net EBIT impact 2009 Q2 SEK -400m Q3 SEK -160m Q4 SEK -830m Full year SEK -1,390m Cash flow impact* 2009 2010 Full year SEK -170m SEK 210m * Including savings 19 SCA Interim Report Q1
Slide 20: Outlook 2009
Outlook 2009 Outlook 2009 Q4 2008 guidance remains Hygiene businesses Positive Packaging Negative Forest Products Stable 20 SCA Interim Report Q1 2009
Slide 21: Q&A
Q&A 21 SCA Interim Report Q1 2009
Slide 22: SCA Interim Report Q1 2009
essentials for everyday life™