26 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Apr 30, 2021
Slide 1: Interim Report Q1 2021
Interim Report Pr :
Slide 2: Ulf Larsson, CEO
Slide 3: Strong market and increasing prices
Strong market and increasing prices EBITDA up 32% vs Q1 2020 + Higher prices on solid wood, pulp and kraftliner - Negative currency effects Sales vs Q1 2020 impacted by exit publication paper • Exit publication paper -14%, sale Wood Supply UK -7% • Price/mix 7%, volume 4%, currency -3% Exit publicat
Slide 4: EBITDA development
EBITDA (SEKm) Industrial ROCE EBITDA development (SEKm) 1 1,359 8% (16%) 2 1,560 +32% 1,451 1,340 1,364 1,359 1,055 1,030 1,032 1,001 33% 31% 32% EBITDA margin Net debt/EBITDA 27% 26% 24% 24% 33% 1.5x 21% 21% Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 1) LTM 2) Quarterly 4 Note:
Slide 5: Stable wood supply to industries
Net sales (SEKm) EBITDA (SEKm) EBITDA margin -11% -1% Stable wood supply to industries 1,833 452 449 27.6% 1,627 24.6% Sales down 11% - Lower volumes to Ortviken - Lower pulpwood price EBITDA down 1% Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 - Lower pulpwood price + Lower imported volumes Pric
Slide 6: Continued strong demand and sharply increasing prices
Net sales (SEKm) EBITDA (SEKm) EBITDA margin -12% +226% Continued strong demand and sharply 1,436 310 24.5% 1,264 increasing prices Sales down 12% - Divestment of Wood Supply UK 95 6.6% + Higher prices Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 EBITDA up 226% + Higher prices Price development –
Slide 7: Continued strong market
Stock of sawn pine and spruce wood, Sweden and Finland (k m3) 5,000 Normalized monthly level Continued strong market 4,000 • Stock levels low to very low • Good consumption, clear signs of shortages 3,000 • Logistical situation challenging on containers • Producers run at full capacity in strong mar
Slide 8: Continued strong market; CTMP project on time and on budget
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +8% +107% Continued strong market 1,288 385 29.9% 1,188 CTMP project at Ortviken on time and on budget 15.6% Sales up 8% 186 + Higher prices - Negative currency effects Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 EBITDA up 107% Price development – NBS
Slide 9: Continued strong market: NBSK pulp price and inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 1,300 NBSK PIX Price Europe 14.6 80 NBSK deliveries (RHS) 14.4 1,200 70 14.2 1,100 60 14.0 Average 1,000 13.8 50 13.6 40 900 13.4 800 30 13.2 700 13.0 20 Softwood pulp inventories (days of supply) 50 Continued stro
Slide 10: Obbola expansion on time and on budget
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +4% +7% Obbola expansion on time and on budget 1,219 1,272 321 24.5% 25.2% 299 Sales up 4% + Higher prices - Negative currency effects EBITDA up 7% + Higher prices Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 - Higher costs for raw material Price devel
Slide 11: Containerboard market development
Containerboard market development Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 850 6.0 120 800 115 5.8 750 700 5.6 110 650 5.4 105 600 Unbleached kraftliner price Euwid (LHS) 5.2 100 550 from Europe Kraftliner deliveries Europe (RHS)(RHS) 500 5.0 95 Kraftliner inventories
Slide 12: Toby Lawton, CFO
Slide 13: Quarter income statement
Quarter SEKm Q1 2021 Q1 2020 Change Net sales 4,172 4,793 -13% EBITDA 1,359 1,030 32% EBITDA margin 32.6% 21.5% 11.1 p.p. EBIT 1,046 628 67% EBIT margin 25.1% 13.1% 12.0 p.p. Financial items -28 -24 Profit before tax 1,018 604 69% Tax -216 -121 Profit for the period 802 483 66% Earnings per share, S
Slide 14: Net sales and EBITDA by segment
Forest Wood Pulp Containerboard/Paper 1 2,375 2,380 2,242 Net sales (SEKm) 2,108 1,981 1,876 1,817 1,865 1,833 1,770 1,746 1,727 1,694 1,659 1,627 1,592 1,545 1,500 1,498 1,494 1,436 1,376 1,272 1,288 1,264 1,214 1,188 1,166 1,129 1,091 986 900 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 15: Net sales bridge Q1 2020 to Q1 2021
Higher volumes in Divestment Wood Higher prices in all mainly pulp Supply UK product areas Exit publication paper +4% -3% -7% SEK +7% 4,793m -14% SEK 4,172m -13% Net sales Price/Mix Volume Currency Acquisitions/ Discontinuations Net sales Q1 2020 divestments Q1 2021 15
Slide 16: EBITDA bridge Q1 2020 to Q1 2021
Higher prices in all Exit publication paper product areas +19 -5 +36 -84 +512 -119 SEK 1,359m SEK 1,030m + 32% EBITDA margin EBITDA margin 21.5% 32.6% EBITDA Price/Mix Volume Raw material Energy Currency Other EBITDA Q1 2020 Q1 2021 16
Slide 17: Quarter cash flow
Quarter SEKm Q1 2021 Q1 2020 EBITDA 1,359 1,030 Revaluation of biological assets and other non cash flow items -320 -340 Operating cash surplus 1,039 690 Change in working capital -290 -146 Restructuring costs -123 - Current capital expenditures -209 -175 Other operating cash flow 58 -28 Operating c
Slide 18: Net debt and net debt to EBITDA development
Net Debt and Net Debt to EBITDA development -25% SEK 9,396m Strong focus on cash flow 8,294 7,671 7,043 • Q1 operating cash flow SEK 475m 2.1x 2.0x Investments in Obbola and CTMP 1.7x 1.5x • Q1 strategic capex SEK 511m • Unutilized credit facilities SEK ~9 bn Q2’20 Q3 ’20 Q4 ’20 Q1 ’21 Note: EBITDA
Slide 19: Capital employed and net debt
SEKm Mar 31, 2021 Dec 31, 2020 Forest assets 75,282 74,900 Working capital 2,862 2,759 Working capital/Net sales 1 18% 18% Deferred tax relating to forest assets -15,052 -14,977 Other capital employed 17,382 17,152 Total capital employed 80,474 79,834 Net debt 7,043 7,671 Net debt/EBITDA 2 1.5x 1.7x
Slide 20: Summary
Summary Ulf Larsson, CEO WSCA
Slide 21: Strong market and increasing prices
Strong market and increasing prices EBITDA up 32% vs Q1 2020 + Higher prices on solid wood, pulp and kraftliner - Negative currency effects Sales vs Q1 2020 impacted by exit publication paper • Exit publication paper -14%, sale Wood Supply UK -7% • Price/mix 7%, volume 4%, currency -3% Exit publicat
Slide 22: Q&A
Slide 23: Forward-looking statements
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 understanding of these risks and unce
Slide 24: Appendix
Appendix WSCA
Slide 25: Net sales and EBITDA by segment, 2014-LTM
Forest Wood Pulp Containerboard/Paper 1 Net sales (SEKm) 9,643 9,229 8,226 8,548 8,434 7,916 7,744 6,956 6,946 6,486 6,280 6,618 6,325 6,296 5,994 6,124 5,187 5,108 4,978 5,070 5,455 5,114 5,315 5,441 4,377 4,431 4,531 2,518 2,760 2,492 2,542 2,866 2014 2015 2016 2017 2018 2019 2020 LTM 2014 2015 20
Slide 26: Containerboard/Paper and Containerboard net sales and EBITDA
Containerboard/Paper 1 Containerboard Net sales (SEKm) Net sales (SEKm) 9,643 9,229 2,375 2,380 2,242 8,226 8,548 8,434 7,916 2,108 7,744 1,876 1,817 1,981 6,946 5,521 1,272 1,272 4,659 4,985 4,608 4,662 1,219 1,128 1,195 1,067 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 2017 2018 2019 2020 LTM Q1 Q2 Q3