Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A

Svenska Cellulosa Ab Sca Class A — Svenska Cellulosa Aktiebolaget SCA — Q1 2024 Earnings Presentation

24 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Apr 26, 2024

  1. Slide 1: Interim Report, April 26, 2024

    ‘A 4 er ey Saar ort e) xt Fi Interim Repor

  2. Slide 2: Ulf Larsson, CEO

  3. Slide 3: Sequentially stronger market for fiber-based products, driving price increases

    Sequentially stronger market for fiber-based products, driving price increases Increasing wood raw material costs and higher harvesting of own forest strengthens Forest result Sales decreased 5% vs Q1 2023 • Price/mix -11%, currency +3%, volume +3% EBITDA decreased 22% vs Q1 2023 ‒ Lower prices + Po

  4. Slide 4: EBITDA, Industrial ROCE and EBITDA margin

    EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin 1,596 4% 3,121 -22% 2,608 2,484 1,981 2,055 1,700 1,635 1,596 EBITDA margin Net debt/EBITDA 52% 53% 50% 1,417 43% 35.0% 1.8x 41% 37% 33% 37% 35% Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 1. LTM 4

  5. Slide 5: Forest: stable wood supply, continued price increase

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin +12% +24% Stable wood supply to industries 2,169 970 44.7% 1,931 40.4% 781 Continued price increase for wood raw material Sales up 12% + Higher prices EBITDA up 24% Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 + Higher prices Price development – Pulpwo

  6. Slide 6: Wood: higher wood raw material costs

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin -16% -10% Higher wood raw material costs 1,297 123 10.2% 111 9.5% 1,093 Sales down 16% - Lower volumes EBITDA down 10% - Lower volumes Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 - Higher wood raw material cost Price development – Solid Wood Products

  7. Slide 7: Sawn wood stock, production and price development

    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 3,000 240 Spruce 2,000 190 1,000 140 Pine 0 90 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

  8. Slide 8: Pulp: ramp up of new CTMP line according to plan

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin -6% -46% Ramp up of new CTMP line according to plan 1,881 593 31.5% 1,774 Sales down 6% 323 18.2% - Lower prices + Higher volumes + Positive currency effects Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 EBITDA down 46% - Lower prices Price development

  9. Slide 9: NBSK pulp price, deliveries and inventories

    NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 15.5 1,600 80 1,500 15.0 1,400 70 14.5 1,300 60 1,200 14.0 1,100 50 1,000 40 13.5 900 13.0 800 30 700 20 12.5 600 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Oc

  10. Slide 10: Containerboard: ramp up of new paper machine in Obbola

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin +4% -69% Ramp up of new paper machine in Obbola 1,573 1,635 450 28.6% according to plan Sales up 4% + Higher volumes 141 8.6% + Positive currency effects - Lower prices Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 EBITDA down 69% Price development – Kr

  11. Slide 11: Kraftliner price, deliveries and box demand

    Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 122 1,000 4.9 119 900 4.8 116 4.6 113 800 110 4.5 700 107 4.3 104 600 Unbleached kraftliner price Euwid (LHS) 4.2 101 500 Kraftliner deliveries Europe (RHS) 4.0 98 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Apr-18 Apr-19 Apr-20 A

  12. Slide 12: Renewable Energy: ramp up of biorefinery in Gothenburg

    Income 1 (SEKm) EBITDA (SEKm) EBITDA margin 2 +24% -2% Ramp up of biorefinery in Gothenburg according to 636 181 177 35.2% plan 514 27.7% Income up 24% + Higher volumes + Higher prices EBITDA down 2% Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 - Higher raw material costs + Higher volumes 12 1. I

  13. Slide 13: SCA

    QSCA

  14. Slide 14: Quarter income statement, SEKm

    Quarter SEKm Q1 2024 Q1 2023 Change Net sales 4,558 4,813 -5% EBITDA 1,596 2,055 -22% EBITDA margin 35.0% 42.7% -7.7 p.p. Depreciation and impairment -519 -459 13% EBIT 1,077 1,596 -33% EBIT margin 23.6% 33.2% -9.6 p.p. Financial items -123 -59 Profit before tax 954 1,537 -38% Tax -165 -324 Profit f

  15. Slide 15: Net sales and EBITDA by segment

    Forest Wood Pulp Containerboard Renewable Energy Net Sales (SEKm) 2,169 1,931 1,945 1,878 1,994 1,881 1,760 1,774 1,636 1,616 1,573 1,635 1,432 1,385 1,460 1,297 1,353 1,244 1,264 1,093 552 636 514 411 402 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 '23 '23 '23 '23 '24

  16. Slide 16: Net sales bridge Q1 2023 to Q1 2024

    Lower prices Pulp and Containerboard Ramp-up Containerboard and Pulp SEK 4,813m -11% SEK +3% +3% 4,558m SEK -539m SEK 135m SEK 149m -5% Net sales Price/Mix Volume Currency Net sales Q1 2023 Q1 2024 16

  17. Slide 17: EBITDA bridge Q1 2023 to Q1 2024

    3,000 Lower prices Pulp and Containerboard 2,500 Higher volumes from commissioned High self sufficiency in SEK strategic projects wood raw material 2,055m -570 2,000 SEK +220 -51 1,596m +67 -24 -101 1,500 1,000 EBITDA margin EBITDA margin - 22% 42.7% 35.0% 500 0 EBITDA Price/Mix Volume Raw material

  18. Slide 18: Cash flow, quarter SEKm

    Quarter SEKm Q1 2024 Q1 2023 EBITDA 1,596 2,055 Revaluation of biological assets and other non cash flow items -547 -458 Operating cash surplus 1,049 1,597 Change in working capital -96 -150 Current capital expenditures 16 -279 Other operating cash flow -292 35 Operating cash flow 677 1,203 Strategi

  19. Slide 19: Capital employed and net debt

    SEKm Mar 31, 2024 Dec 31, 2023 Forest assets 107,883 107,481 Working capital 4,419 4,321 Deferred tax relating to forest assets -21,330 -21,277 Other capital employed 24,081 24,525 Total capital employed 115,053 115,050 Net debt 11,712 10,766 Net debt/EBITDA 1.8x 1.6x Equity 103,341 104,284 Net debt

  20. Slide 20: Summary

    Summary Ulf Larsson, CEO WSCA

  21. Slide 21: Sequentially stronger market for fiber-based products, driving price increases

    Sequentially stronger market for fiber-based products, driving price increases Increasing wood raw material costs and higher harvesting of own forest strengthens Forest result Sales decreased 5% vs Q1 2023 • Price/mix -11%, currency +3%, volume +3% EBITDA decreased 22% vs Q1 2023 ‒ Lower prices + Po

  22. Slide 22: Q&A

  23. Slide 23: Forward-looking statements

    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

  24. Slide 24: Net sales and EBITDA by segment, 2017-2023

    Forest Wood Pulp Containerboard Renewable Energy Net sales (SEKbn) 9.64 9.23 8.43 7.75 7.92 7.08 6.75 7.21 6.89 6.96 6.71 6.62 6.33 6.30 6.82 6.49 6.15 5.99 5.74 5.85 5.46 5.07 5.46 5.16 4.38 4.43 2.54 2.87 1.88 1.26 1.55 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2017 201

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