Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Q2 2017 Earnings Presentation
17 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jul 21, 2017
Slide 1: Interim report presentation Q2 2017
Interim report presentation Q2 2017 July 21, 2017
Slide 2: Ulf Larsson, CEO
Ulf Larsson, CEO
Slide 3: Summary Q2 2017
Summary Q2 2017 Distribution of Essity successfully completed by June 15 • One-time cost of SEK 103m in Q2 due to split (shown as items affecting comparability) Overall positive market situation Strong 9% sales growth vs Q2 2016 • Prices up 3%, volumes up 5% EBITDA 1) up 5% vs Q2 2016, influenced by
Slide 4: Forest Q2 2017 vs. Q2 2016
Forest Q2 2017 vs. Q2 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) -2% 17% Balanced timber supply in SCA’s area, stable raw 1 234 364 1 210 30,1% 312 material market 25,3% Sales decrease of 2% • Lower deliveries to SCA industry EBITDA 1) up 17% • Higher share of deliveries from own forest
Slide 5: Wood Q2 2017 vs. Q2 2016
Wood Q2 2017 vs. Q2 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) 9% 10% Strong market in wood, with gradually increasing 9,4% 9,4% prices 1 637 1 496 154 140 In addition, seasonal up-turn in volumes in Q2, due to building materials trade Sales up 9% • Higher delivery volumes and higher pr
Slide 6: Pulp Q2 2017 vs. Q2 2016
Pulp Q2 2017 vs. Q2 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) 5% -32% Generally good development in pulp market 18,9% 585 105 Large negative impact on result from Östrand 556 project and maintenance stop 71 12,1% Sales up of 5% • Higher prices and better currency situation compensated
Slide 7: Paper Q2 2017 vs. Q2 2016
Paper Q2 2017 vs. Q2 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) 10% 12% Strong Kraftliner volume growth, with stepwise 291 13,7% 14,0% price increases last six months 2 072 1 889 259 Publication paper: stable market, no price changes since Q1 2017 Sales up 10% • Higher Kraftliner prices
Slide 8: Toby Lawton, CFO
Toby Lawton, CFO
Slide 9: P&L Q2 2017 vs. Q2 2016
P&L Q2 2017 vs. Q2 2016 SEKm Q2 2017 Q2 2016 Change Net sales 4,222 3,872 9% EBITDA 1) 827 789 5% EBITDA 1) margin 19.6% 20.4% - 0.8 p.p. EBIT 1) 554 506 9% EBIT 1) margin 13.1% 13.1% 0.0 p.p. Items affecting comparability -103 119 -222 Spin-off related costs -103 -103 Capital gain from divestment o
Slide 10: Contribution by segment and quarter
Contribution by segment and quarter Forest Wood Pulp Paper Net sales (SEKm) 1 998 1 889 1 998 2 046 2 072 1 859 1 637 1 496 1 312 1 210 1 320 1 361 1 364 1 187 1 234 1 261 1 296 1 264 600 668 668 641 585 556 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 '16 '16 '16 '16 '17
Slide 11: Net sales Q2 2017 vs. Q2 2016
Net sales Q2 2017 vs. Q2 2016 Positive for Wood, Pulp and Positive for Wood and Kraftliner Paper, negative for Pulp SEK SEK 5% 1% 4,222m 3% 3,872m + 9% Net sales Price/Mix Volume Currency Net sales Q2 2016 Q2 2017 11
Slide 12: EBITDA Q2 2017 vs. Q2 2016
EBITDA 1) Q2 2017 vs. Q2 2016 Higher price for latex Maintenance stops (SEK -71m) and recycled paper Project cost Östrand (SEK - 25m) SEK SEK SEK SEK SEK SEK +196m +13m -63m -29m +45m -124m SEK SEK 789m 827m Electricity certificate write-downs (SEK -15m) + 5% EBITDA Price/Mix Volume Raw material Ene
Slide 13: Cash flow Q2 2017 vs. Q2 2016
Cash flow Q2 2017 vs. Q2 2016 SEKm April-June April-June Jan-June Jan-June 2017 2016 2017 2016 Operating cash surplus 726 683 1,300 1,197 Change in working capital 395 81 41 430 Current capital expenditures, net -163 -196 -289 -269 Restructuring costs 1) -137 -28 -146 -18 Operating cash flow – conti
Slide 14: Balance sheet structure
Balance sheet structure SEKm Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Forest assets (gross value before deferred taxes) 31,119 31,001 30,770 Deferred tax relating to Forest assets -6,846 -6,820 -6,769 Forest assets, net of deferred tax 24,273 24,181 24,001 Working capital 2,673 3,031 2,740 Working cap
Slide 15: Summary Q2 2017
Summary Q2 2017 Distribution of Essity successfully completed by June 15 • One-time cost of SEK 103m in Q2 due to split (shown as items affecting comparability) Overall positive market situation Strong 9% sales growth vs Q2 2016 • Prices up 3%, volumes up 5% EBITDA 1) up 5% vs Q2 2016, influenced by
Slide 16: Q&A
Q&A
Slide 17: A leading industrial ecosystem, driven by the force of the forest
A leading industrial ecosystem, driven by the force of the forest 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 recen