Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Q1 2004 Earnings Presentation
30 slides from Svenska Cellulosa AB SCA Class A's earnings presentation, April 2004
Slide 1: SCA Interim Report 1 January–31 March 2004
SCA Interim Report 1 January–31 March 2004 Jan Åström President and CEO 1
Slide 2: SCA in Brief
SCA in Brief 1 January–31 March 2004 04:1 03:1 03:4 Earnings per share, SEK 4.34 6.02 6.07 Cash flow from current operations per share, SEK 3.48 7.45 11.27 Net sales, SEK M 21,687 21,890 21,153 Earnings after financial items, SEK M 1,472 1,974 1,786 Net earnings, SEK M 1,014 1,395 1,419 2
Slide 3: SCA in Brief: Compared with first quarter 2003
SCA in Brief Compared with first quarter 2003 Net sales amounted to SEK 21,687 M (21,890). Adjusted for currency and price effects, net sales rose by 5% The Group’s operating profit excluding items affecting comparability amounted to SEK 1,657 M (2003) a decline by 17%. Currency movements had a
Slide 4: SCA in Brief: Compared with fourth quarter 2003
SCA in Brief Compared with fourth quarter of 2003 Excluding items affecting comparability earnings per share declined by 15% Operating profit excluding items affecting comparability declined by 8%. Operating profit declined by 3% for Hygiene Products and by 1% for Packaging. Operating profit for
Slide 5: Operating Profit - Business Areas
Operating Profit - Business Areas 1 January–31 March SEK M 20041 20032 Change Hygiene Products 1,153 1,275 -10% Packaging 533 691 -23% Forest Products 345 407 -15% Other operations (incl. items affecting comparability) -118 112 Operating profit before goodwill amortization 1,913 2,485 -23% Goodwill
Slide 6: Cash Flow Analysis
Cash Flow Analysis 1 (2) 1 January–31 March SEK M 2004 2003 Change Operating cash surplus 3,294 3,599 -8% Changes in working capital -1,354 -698 Current capital expenditures, net -583 -607 Other operating cash flow changes -47 -78 Operating cash flow 1,310 2,216 -41% Financial items -155 -226 Income
Slide 7: Cash Flow Analysis
Cash Flow Analysis 1 January-31 March 2 (2) SEK M 2004 2003 Cash flow from current operations 813 1,730 Company acquisitions -988 -544 Strategic capital expenditures -465 -553 Strategic structural expenditures -85 -153 Divestments 0 650 Cash flow before dividend -725 1,130 Debt equity ratio, times 0
Slide 8: Group - Development
Group - Development Quarterly data SEK M 17.7% 17.5% 17.1% 17.3% 17.4% EBITDA Target 30 000 17.0% 18% 16.0% 16.3% 17% 15.2% 16% 14% 20 000 12% 10% Sales 8% 21 015 22 355 22 247 22 429 21 890 21 231 21 064 21 153 21 687 EBITDA- 10 000 6% margin 4% 2% 0 0% 02:1 02:2 02:3 02:4 03:1 03:2 03:3 03:4 04:1
Slide 9: Earnings per Share Development
Earnings per Share Development Quarterly data SEK/share 7 6.27 6.33 5.89 6.05 6.02 6.07 5 4.87 4.88 4.34 3 1 02:1 02:2 02:3 02:4 03:1 03:2 03:3 03:4 04:1 -1 EPS excl. non-recurring items Non-recurring items 9
Slide 10: Hygiene Products
Hygiene Products Compared with first quarter 2003 Net sales amounted to SEK 10,545 M (10,906), down 3% Currency effects –4% Operating profit amounted to SEK 1,153 M (1,275), a decline of 10% Currency effects –6% Consumer tissue operating profit down 3% Lower prices were partially offset
Slide 11: Hygiene Products
Hygiene Products Compared with fourth quarter 2003 Operating profit in the first quarter down 3% Consumer tissue operating profit down 4% Lower prices could not be fully offset by lower raw material costs AFH tissue operating profit down 6% Lower earnings in the North American operations
Slide 12: Hygiene Products - Development
Hygiene Products - Development Quarterly data SEK M 17.4% 17.4% 17.9% 17.8% 17.4% 15 000 16.8% 17.0% 16.6% 16.8% 18% EBITDA 16% target 17% 14% 10 000 12% 10% 8% 11 790 11 481 11 240 10 686 10 906 10 791 10 753 10 531 10 545 5 000 6% 4% 2% 0 0% 02:1 02:2 02:3 02:4 03:1 03:2 03:3 03:4 04:1 Sales EBITD
Slide 13: Tissue
Tissue Market Europe Consumer Tissue Stable demand in competitive markets AFH Stable markets North America – AFH tissue Increasing demand US shipments up about 3% through February Higher prices Price increase implemented in April 13
Slide 14: Personal Care
Personal Care Market Incontinence products Stable markets, globally Strong growth in retail Baby diapers Pant diapers growing fast Competitive pressure in retailers’ brands Feminine hygiene products Strong growth within retailers’ brands 14
Slide 15: Packaging
Packaging Compared with first quarter 2003 Net sales up 1% - SEK 7,830 M (7,715) Acquisitions in North America and Asia combined with volume growth +4% Currency effects -2% Lower prices Operating profit down 23% - SEK 533 M (691) Lower prices were partially offset by higher volumes and l
Slide 16: Packaging
Packaging Compared with fourth quarter 2003 Operating profit virtually unchanged Higher volumes and lower raw material costs were offset by higher energy costs The North American operations show higher earnings due mainly to higher volumes Currency effects –2% 16
Slide 17: Packaging - Development
Packaging - Development Quarterly data SEK M 12 000 18% 15.9% EBITDA Target 15.4% 15.1% 16% 14.4% 14.3% 16% 13.8% 13.9% 12.9% 12.5% 14% 8 000 12% 10% 8% 4 000 7 489 7 780 7 940 7 715 7 459 7 830 6% 7 340 7 421 7 434 4% 2% 0 0% 02:1 02:2 02:3 02:4 03:1 03:2 03:3 03:4 04:1 Sales EBITDA-margin 17
Slide 18: Packaging - Deliveries
Packaging - Deliveries Quarterly data Mm2 k tonnes 2 000 800 660 663 628 639 635 610 605 610 621 1 500 600 1 041 1 029 1 027 1 041 1 068 988 1 007 1 012 1 022 1 000 400 500 200 0 0 02:1 02:2 02:3 02:4 03:1 03:2 03:3 03:4 04:1 Liner Corrugated 18
Slide 19: Recovered Paper
Recovered Paper Market Europe Balanced market since March OCC prices stabilized at about EUR 70 per tonne after increases in February-March USA Firm markets for high grade de-inking 19
Slide 20: Containerboard
Containerboard Market Testliner Fair demand and balanced inventories Prices up about EUR 30 per tonne since February Kraftliner Increasing demand and higher prices in the US Imports from the US remain on a low level European inventories down in March Higher prices in Europe from Apri
Slide 21: Corrugated Board – Europe
Corrugated Board – Europe Market Weak start of the year - increasing activity through Q1 Demand down 1% during January-February Strong shipments in March Prices stabilized during Q1 Price negotiations started 21
Slide 22: Forest Products
Forest Products Compared with first quarter 2003 Net sales up 7% - SEK 3,813 M (3,561) Higher volumes and the acquisition of Scaninge’s forestry and sawmill operations were partially offset by lower paper prices Currency effects -4% Operating profit down 15% - SEK 345 M (407) Lower prices
Slide 23: Forest Products
Forest Products Compared with fourth quarter 2003 Operating profit down 26% Currency effects –3% Publication papers operating profit down 54% Lower volumes and prices Negative currency movements and higher energy costs Negative effect of maintenance stops Pulp, timber and solid wood pr
Slide 24: Forest Products - Development
Forest Products - Development Quarterly data SEK M 23.7% EBITDA 5 000 25% target 25% 21.8% 22.1% 21.1% 19.7% 20.4% 17.5% 4 000 18.6% 19.1% 20% 3 000 15% 2 000 3 813 10% 3 603 3 561 3 736 3 317 3 430 3 201 3 406 3 378 1 000 5% 0 0% 02:1 02:2 02:3 02:4 03:1 03:2 03:3 03:4 04:1 Sales EBITDA margin 24
Slide 25: Forest Products - Deliveries
Forest Products - Deliveries Quarterly data km3 k tonnes 400 383 370 400 354 345 346 330 380 305 299 284 336 340 300 332 300 238 190 192 200 165 173 200 100 100 0 0 02:1 02:2 02:3 02:4 03:1 03:2 03:3 03:4 04:1 Publication papers Solid wood products 25
Slide 26: Publication Papers
Publication Papers Market Signs of recovery in advertising Increasing European demand in Q1 Strong shipments in March Total newsprint (incl. improved) up 3% in Q1 YTD SC up 10% and LWC up 4% YTD Continued strong exports Total shipments of European publication paper up almost 5% in Q1 Y
Slide 27: Market Pulp
Market Pulp Market Pulp prices up during Q1 100 dollar price gap between SW and HW Modest underlying demand So far, largely inventory driven price increases Higher user inventories in March Fair market balance in softwood – structural over-capacity in hardwood 27
Slide 28: Solid Wood Products
Solid Wood Products Market Competitive pine markets Stable spruce markets 28
Slide 29: Market Outlook
Market Outlook Europe SCA’s consumer related products continue to show a favorable demand trend, particularly in the incontinence area The volume growth in consumer tissue is favorable, with a higher growth rate in Eastern Europe After a weak start of the year, demand for corrugated board pack
Slide 30: essentials for everyday life
essentials for everyday life”