Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A

Svenska Cellulosa AB SCA Class A — SCA — Q1 2006 Earnings Presentation

18 slides from Svenska Cellulosa AB SCA Class A's earnings presentation, April 2006

  1. Slide 1: SCA Interim Report 1 January–31 March 2006

    SCA Interim Report 1 January–31 March 2006 Jan Åström President and CEO 1

  2. Slide 2: Highlights

    Highlights ƒ Profit before tax: SEK 1,569m –In line with the fourth quarter ƒ Strong volume development and positive price movements ƒ SEK 170m in higher energy costs compared with previous quarter ƒ Efficiency enhancement program is developing according to plan 2

  3. Slide 3: Financial Summary

    Financial Summary Q1 2006 Change Change Q/Q (%) Y/Y(1) (%) Net sales, SEKm 25,400 +1% +13% Profit before tax, SEKm 1,569 0% +19% Earnings per share, SEK 4.96 -2% +19% 1 Excluding items affecting comparability 3

  4. Slide 4: Group – Quarterly Development

    Group – Quarterly Development(1) SEKm EBITDA (%) 35,000 18% 14.3% 16% 30,000 14.1% 14.3% 13.9% 13.7% 14% 25,000 12% 20,000 10% 15,000 8% 23,986 24,740 25,141 25,400 22,518 6% 10,000 4% 5,000 2% 0 0% Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Sales EBITDA margin 1 Excluding items affecting comparability

  5. Slide 5: SCA Group Sales and EBIT

    SCA Group Sales and EBIT Q1 2006 compared with Q4 2005 SEKm Sales 26,000 -147 +307 -230 25,400 25,141 +212 +117 25,000 24,000 23,000 22,000 Sales Q4 Personal Care Tissue Packaging Forest Other Sales Q1 2005 Products 2006 EBIT SEKm 1,975 -20 -79 1,955 2,000 +20 +24 +35 1,800 1,600 1,400 1,200 1,000 E

  6. Slide 6: SCA Group Sales and EBIT

    SCA Group Sales and EBIT Q1 2006 compared with Q1 2005(1) SEKm Sales +818 +747 +616 -185 25,400 25,000 22,518 +886 20,000 15,000 10,000 5,000 Sales Q1 Personal Care Tissue Packaging Forest Other Sales Q1 2005 Products 2006 EBIT SEKm 2,000 1,662* +170 -79 +176 +46 1,955 -20 1,500 1,000 500 0 EBIT Q1

  7. Slide 7: Energy Costs

    Energy Costs ƒ Energy costs SEK 170m higher compared with Q4 2005 ƒ Lower expected prices and consumption in the second quarter ƒ Price hedges in place for 2006: –Electricity: ~50% –Natural gas: ~30% 7

  8. Slide 8: Cash Flow Analysis

    Cash Flow Analysis Q1 2006 compared with Q1 2005 ƒ Operating cash flow SEK 593 (915)m Š Higher operating cash surplus Š Slightly increased current capex Š Negative effect from increased working capital Š Increased cash outflow related to structural costs ƒ Cash flow before dividend SEK -351 (-688)m

  9. Slide 9: Personal Care – Quarterly Development

    Personal Care – Quarterly Development SEKm EBITDA (%) 6,000 19.1% 17.8% Q1/Q4 comments: 17.7% 16.8% 17.1% 18% ƒ Sales: +4% as a 5,000 16% result of higher volumes 14% 4,000 12% ƒ Increased costs for oil-based raw 10% 3,000 materials and 5,136 5,348 higher A&P 5,026 8% 4,462 4,727 2,000 spending led

  10. Slide 10: Personal Care

    Personal Care ƒ Incontinence products Š Continued strong volume development in the first quarter Š Strive for selective price increases to compensate for higher costs of input goods ƒ Baby diapers Š Solid development for the Libero brand in the Nordic region as well as in Russia, Hungary and Greece

  11. Slide 11: Tissue – Quarterly Development

    Tissue – Quarterly Development SEKm EBITDA (%) Q1/Q4 comments: 10,000 14% 12.4% 12.6% 11.8% ƒ Sales: -2% mainly 11.6% 10.7% 12% due to seasonally 8,000 lower volumes in 10% North America 6,000 (AFH) 8% ƒ Higher prices in 4,000 8,109 6% Consumer tissue 7,531 7,917 7,962 7,144 (SEK 70m) did not 4% com

  12. Slide 12: Tissue

    Tissue ƒ Consumer tissue Š Price increases under implementation Š Competitive situation remains – continued growth in retailers’ brands Š Improvements in Mexico and South America ƒ AFH-tissue Š Price increases for premium and high quality products - pressure within basic qualities Š Seasonal weak vo

  13. Slide 13: Packaging – Quarterly Development

    Packaging – Quarterly Development SEKm EBITDA (%) Q1/Q4 comments: 12,000 14% ƒ Sales +1% as a 11.8% 10,000 11.4% 10.8% 12% result of increased 10.2% 10.2% volumes and prices 10% 8,000 ƒ Stable margin, 8% positive effect from 6,000 cost savings but 6% higher energy costs 4,000 8,094 8,351 8,272 8,389

  14. Slide 14: Packaging

    Packaging ƒ Corrugated board Š Good growth on key markets such as: Germany, France, Italy and Sweden – supports upcoming price increases Š Expansion of corrugated capacity in Russia and Eastern Europe – to meet the high growth ƒ Containerboard Š Realized price increases of EUR 30 for both testliner

  15. Slide 15: Forest Products – Quarterly Development

    Forest Products – Quarterly Development SEKm EBITDA (%) Q1/Q4 comments: 5,000 25% 22.4% 21.4% 21.0% ƒ Sales: +8% as a result 19.6% 18.4% 4,000 20% of strong volumes and higher prices 3,000 15% ƒ Negative margin impact from higher energy costs 4,378 2,000 4,116 3,986 4,071 10% 3,762 1,000 5% 0 0% Q1

  16. Slide 16: Forest Products

    Forest Products ƒ Improved performance within publication papers Š Good underlying demand Š Higher overall prices, mainly Newsprint Š Increased energy costs ƒ Pulp, timber and solid-wood products Š Favourable development in the pulp market resulted in increased prices Š Favourable market development

  17. Slide 17: Summary

    Summary Well positioned for improvements: ƒ Positive price momentum ƒ Lower energy costs ƒ Efficiency enhancement program developing according to plan, gradual effects during 2006 17

  18. Slide 18: essentials for everyday life

    essentials for everyday life™

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