Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — Svenska Cellulosa Aktiebolaget SCA — Q4 2024 Earnings Presentation
30 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jan 31, 2025
Slide 1: January 31, 2025
January 31, 2025
Slide 2: Ulf Larsson, CEO
Slide 3: Higher delivery volumes due to strategic investments
EBITDA (SEKm) and EBITDA margin Higher delivery volumes due to strategic investments 10,194 +5% Record high harvesting volumes from own forest 9,109 Higher profitability compared to last year • EBITDA increased 5% to SEK 7.1bn 7,143 6,807 • EBITDA margin of 35.3% 5,252 5,319 49% • Higher prices and
Slide 4: Key figures 2024: EBITDA, ROCE, dividend, EPS
EBITDA (SEKm) Industrial ROCE 1 Proposed dividend (SEK) 7,143 7% 3.00 (6,807) (7%) (2.75) EBITDA margin Net debt/EBITDA EPS (SEK) 35% 1.5x 5.18 (38%) (1.6x) (5.23) Note: Figures in brackets refer to 2023. 4 1. ROCE for the industrial segments; Wood, Pulp, Containerboard and Renewable Energy.
Slide 5: Q4 2024 key figures and EBITDA development
EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin 1,649 7.3% 2,055 +1% 2,010 1,981 1,888 1,700 1,649 1,635 EBITDA margin Net debt/EBITDA 1,596 1,417 32.1% 1.5x 43% 41% 38% 37% 37% 35% 36% 33% 32% EBIT margin Net debt/Equity 21.7% 10.5% Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q
Slide 6: Investment in value chain and forest growth; stable dividend
Investment in integrated value Investment in forest growth Stable and increasing chain (Capacity, k tonnes) (Standing volume, m m3fo) dividend (SEK/share)1) 4 1.00 Pulp Containerboard 1,500 2,400 Paper 1,500 3.00 300 Sweden Baltics 3 274 2.75 267 271 1,200 252 257 261 2.50 1,140 232 235 250 1,200 1,
Slide 7: Forest: stable wood supply, continued price increase
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +16% -24% Stable wood supply to industries 2,323 1,189 59.6% 1,994 901 Increased harvesting own forest 38.8% Continued price increase for wood raw material Sales up 16% + Higher prices Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 + Higher delivery volu
Slide 8: Wood: higher prices partly offset by increasing costs
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +12% +260% Higher prices partly offset by increasing costs 1,416 234 16.6% for sawlogs 1,264 Sales up 12% + Higher prices 65 5.2% EBITDA up 260% + Higher prices Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Price development – Solid Wood Products 120 11
Slide 9: Sawn wood stocks, production and prices
Stock of sawn pine and spruce wood, Sweden and Finland (k m3) Price development sawn pine and spruce, Sweden (index) 5,000 Normalized monthly level 340 4,000 290 240 3,000 Spruce 190 2,000 Pine 140 1,000 90 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 Aug-21 Aug-22 Aug-23 Aug-24 Feb-16 Feb-17 Feb-18 Feb-19 Fe
Slide 10: Pulp: sales up 27%, EBITDA up 327%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +27% +327% Sales up 27% 2,052 286 13.9% + Higher prices 1,616 + Higher delivery volumes 4.2% EBITDA up 327% 67 + Higher prices + Positive currency effects Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Planned maintenance stop in Östrand during the Price
Slide 11: NBSK pulp price and inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 15.5 1,800 80 15.0 1,600 70 14.5 1,400 60 14.0 1,200 50 Average 13.5 1,000 40 13.0 800 30 20 12.5 600 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24
Slide 12: Containerboard: sales up 11%, EBITDA down 17%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +11% -17% Sales up 11% 1,618 292 20.0% 1,460 + Higher prices 242 15.0% - Lower volumes EBITDA down 17% - Planned maintenance stop in Obbola - Higher raw material costs Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 + Higher prices Price development – Kra
Slide 13: Kraftliner prices, deliveries and inventories
20 25 30 35 40 45 50 1,000 500 600 700 800 900 Jan-18 Jan-18 Apr-18 Apr-18 Jul-18 Jul-18 Average Oct-18 Oct-18 Jan-19 Jan-19 Figures excluding Russia. Apr-19 Apr-19 Jul-19 Source: Euwid, Numera, Cepi. Jul-19 Oct-19 Oct-19 Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Jan-21 Kraftliner inve
Slide 14: Renewable Energy: solid biofuels, liquid biofuels, wind
Income 1 (SEKm) EBITDA (SEKm) EBITDA margin 2 -4% -48% Solid biofuels 552 531 172 31.2% - Higher cost for sawdust + Higher prices for pellets 90 16.8% Liquid biofuels - Lower prices for liquid biofuels and tall oil Wind Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 - Lower electricity prices Incom
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Slide 16: Forest land prices in areas where SCA owns forest
Forest land prices – average in areas where SCA owns forest land (SEK/m3) 500 3-year average – used for valuation of forest assets 400 388 395 1-year average 366 300 324 291 276 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Average prices from Svefa and Ludvig & Co. 16 Ludvig
Slide 17: Forest land prices by area
Forest land prices – average in areas where SCA owns forest land (SEK/m3) Price 2024 2023 Area weight 3-year average price 3-year average price Norrbotten 5% 286 274 Västerbotten 7% 331 356 Jämtland 20% 398 408 Västernorrland 18% 442 465 Swedish forest asset, Ludvig & Co1) 50% 392 406 Area 1 30% 426
Slide 18: Minor decrease in forest price mitigated by continued growth
Market price in Sweden 1 Standing volume Forest asset (SEK/m3fo) (m m3fo) (SEK bn) Minor decrease in forest price mitigated +3 -0 -7 by continued growth 271 274 107.5 107.3 395 388 261 267 257 97.9 Average three year transaction price 366 324 84.5 • 388 SEK/m3fo in Sweden at Dec 31 2024 291 74.9 • 4
Slide 19: Wood raw material prices to SCA's industries
Wood raw material prices to SCAs industries (index) 180 Pulp wood 160 Sawlogs 140 120 100 80 60 19
Slide 20: Income statement summary Q4 and full year
Quarter Full year SEKm Q4 2024 Q4 2023 Change 2024 2023 Change Net sales 5,135 4,384 +17% 20,232 18,081 +12% EBITDA 1,649 1,635 +1% 7,143 6,807 +5% EBITDA margin 32.1% 37.3% -5.2 p.p. 35.3% 37.6% -2.3 p.p. EBIT 1,113 1,119 -1% 5,027 4,857 +4% EBIT margin 21.7% 25.5% -3.8 p.p. 24.8% 26.9% -2.1 p.p. F
Slide 21: Proposed dividend and EPS
4 Proposed dividend (SEK) 1.00 +0.25 +0.25 3.00 3.00 (2.75) 3 3 +0.25 +0.25 2.50 2.75 +0.25 2.25 +0.25 2 2.00 1.75 2 1.50 EPS (SEK) 5.18 1 1 (5.23) 0 2017 2018 2019 2020 2021 2022 2023 2024 21
Slide 22: Net sales and EBITDA by segment
Forest Wood Pulp Containerboard Renewable Energy Net sales (SEKbn) 8.83 9.64 9.23 8.06 7.92 7.75 7.21 6.89 6.96 6.71 7.08 6.75 6.82 6.49 6.15 6.62 6.33 6.30 6.43 5.74 5.85 5.46 5.16 5.54 5.46 4.38 4.43 2.87 1.88 2.05 1.26 1.55 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 201
Slide 23: Net sales bridge Q4 2023 to Q4 2024
Higher prices Pulp, Containerboard and Wood SEK +2% 5,135m 14% +1% SEK 4,384m +17% Net sales Q4 2023 Price/Mix Volume Currency Net sales Q4 2024 23
Slide 24: EBITDA bridge Q4 2023 to Q4 2024
Higher costs for planned 3,000 Higher cost for maintenance stops and lower Higher prices Pulp, wood raw material revaluation of biological Containerboard and Wood assets 2,500 +588 -21 -154 -67 +119 -451 2,000 SEK SEK 1,635m 1,649m 1,500 1,000 EBITDA margin EBITDA margin +1% 37.3% 32.1% 500 0 EBITDA
Slide 25: Cash flow
Quarter Jan - Dec SEKm Q4 2024 Q4 2023 2024 2023 EBITDA 1,649 1,635 7,143 6,807 Revaluation of biological assets and other non cash flow items -443 -840 -1,896 -2,305 Operating cash surplus 1,206 795 5,247 4,502 Change in working capital 889 -710 -441 -159 Current capital expenditures -479 -538 -1,1
Slide 26: Capital employed and net debt
SEKm Dec 31, 2024 Dec 31, 2023 Forest assets 107,329 107,481 Working capital 4,768 4,321 Deferred tax relating to forest assets -21,155 -21,277 Other capital employed 23,978 24,525 Total capital employed 114,920 115,050 Net debt 10,885 10,766 Net debt/EBITDA 1.5x 1.6x Equity 104,035 104,284 Net debt
Slide 27: Summary
Summary Ulf Larsson, CEO WSCA
Slide 28: Higher delivery volumes due to strategic investments
EBITDA (SEKm) and EBITDA margin Higher delivery volumes due to strategic investments 10,194 +5% Record high harvesting volumes from own forest 9,109 Higher profitability compared to last year • EBITDA increased 5% to SEK 7.1bn 7,143 6,807 • EBITDA margin of 35.3% 5,252 5,319 49% • Higher prices and
Slide 29: Q&A
Slide 30: our business. Please read SCA’s most recent annual report for a better understanding of
This presentation may contain forward-looking statements. The actual outcome could be materially different. Such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read SCA’s most recent annual report for a be
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