32 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jan 28, 2022
Slide 1: Year-end Presentation, January 28, 2022
Eo ee rs A ty aa ry tgetete taht d wie "Year-end Pr resentation we January 28, 2022 .
Slide 2: Ulf Larsson, CEO
Slide 3: Best result ever
Best result ever EBITDA (SEKm) and EBITDA margin • Exit publication paper 105% • Strong market and high prices 9,109 • Good production and stable cost base EBITDA increased 105% vs 2020 + Higher selling prices 48% + Stable cost base 5,252 5,319 - Negative currency effects 4,440 3,781 3,648 Sales inc
Slide 4: Key figures: EBITDA, Industrial ROCE, proposed dividend
EBITDA (SEKm) Industrial ROCE 1 Proposed dividend (SEK) 9,109 33% 2.25 + 1.00 ordinary extra (4,440) (5%) (2.00) (0.00) EBITDA margin Net debt/EBITDA EPS (SEK) 48% 0.9x 8.69 (24%) (1.7x) (3.19) Note: Excluding effect of one-off items related to discontinuation of publication paper in 2020. 4 Figures
Slide 5: EBITDA and EBITDA margin by quarter
EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin +104% 2,806 40% 2,684 2,806 2,260 59% 53% 47% EBITDA margin Net debt/EBITDA 1,377 1,359 59% 0.9x 1,055 1,030 1,032 33% 1,001 30% 24% 24% 21% 21% Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 1. Q4 2021 5 Note: EBITDA ex
Slide 6: Forest: Stable wood supply to industries
Net sales (SEKm) EBITDA (SEKm) EBITDA margin -11% +24% Stable wood supply to industries 1,659 926 62.9% 1,474 747 Sales down 11% 45.0% - Lower deliveries to industries EBITDA up 24% Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 + Higher revaluation of biological assets Price development – Pulpwood
Slide 7: Wood: Strong production and seasonally high deliveries
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +25% +274% Strong production and seasonally high 1,868 850 45.5% deliveries 1,498 Sales up 25% + Higher prices 15.2% 227 - Divestment of Wood Supply UK Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 EBITDA up 274% Price development – Solid Wood Products
Slide 8: Wood market: Good underlying, but seasonally lower demand
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 Spruce 340 4,000 290 3,000 Pine 240 2,000 190 1,000 140 0 90 Production of sawn pine and spruce wood, Sweden and Finland (k m3) 3,500 Normalized monthly
Slide 9: Pulp: CTMP expansion on time and on budget
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +17% +315% CTMP expansion on time and on budget 1,368 452 33.0% 1,166 Sales up 17% + Higher prices - Lower volumes 109 9.3% - Negative currency effects Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 EBITDA up 315% Price development – NBSK Pulp + Higher p
Slide 10: NBSK pulp price and inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 14.5 1,400 80 70 14.0 1,200 60 13.5 1,000 50 Average 13.0 800 40 30 12.5 600 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jan-17 Apr-17 Apr-18 Oct-17 Jan-18 Oct-18 Jan-19 Apr-19 Oct-19 Jan-20 Apr-20 Oct-20 Jan-21 Apr-21 Oct-
Slide 11: Containerboard: Expansion in Obbola on time and on budget
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +27% +142% Expansion in Obbola on time and on budget 1,518 669 44.1% 1,195 Sales up 27% + Higher prices 23.2% 277 - Lower volumes - Negative currency effects Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 EBITDA up 142% Price development – Kraftliner + H
Slide 12: Kraftliner: Solid demand and prices on the rise
Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 1000 6.2 122 6.1 119 900 5.9 116 5.8 113 800 5.6 110 700 5.5 107 5.3 104 600 Unbleached kraftliner price Euwid (LHS) 101 5.2 500 Kraftliner deliveries Europe (RHS) 5.0 98 Kraftliner inventories (days of supply) Solid demand and
Slide 13: Toby Lawton, CFO
Slide 14: Higher transaction prices for forest assets in Northern Sweden
Market price Standing volume Forest asset (SEK/m3fo) (m m3fo) (SEK bn) Higher transaction prices for forest assets in Northern Sweden +33 +4 +10 SEK 324/m3fo at Dec 31 2021 324 257 261 84.5 • Average three year transaction price in SCAs region 291 74.9 Value increase of SEK 9.6 bn • Biological asset
Slide 15: Income statement, quarter and full year
Quarter Full year SEKm Q4 2021 Q4 2020 Change 2021 2020 Change Net sales 4,763 4,592 4% 18,822 18,410 2% EBITDA 2,806 1,377 104% 9,109 4,440 105% EBITDA margin 58.9% 30.0% 28.9 p.p. 48.4% 24.1% 24.3 p.p. EBIT 2,408 986 144% 7,634 2,839 169% EBIT margin 50.5% 21.5% 29.0 p.p. 40.6% 15.4% 25.2 p.p. Fin
Slide 16: Proposed dividend and EPS
Proposed dividend (SEK) 3.50 1.00 2.25 3.00 +0.25 (2.00) 2.50 +0.25 +0.25 2.25 Proposed extra dividend (SEK) 2.00 2.00 1.00 1.50 1.50 1.75 (0.00) 1.00 EPS (SEK) 8.69 0.50 0.00 (3.19 1) 2017 2018 2019 2020 2021 1. Excluding effect of one-off items related to discontinuation of publication paper in 20
Slide 17: Net sales bridge 2020 to 2021
Higher prices in all Positive for wood, Divestment of Wood pulp, negative for segments kraftliner Supply UK in 2020 Exit publication paper in 2021 +28% +1% -3% -9% -15% SEK SEK 20,000 18,410m 18,822m 15,000 +2% 10,000 5,000 0 Net sales Price/Mix Volume Currency Disposal Discontinuation Net sales 202
Slide 18: EBITDA bridge 2020 to 2021
Higher prices in all segments +5,416 +35 +105 +64 -464 10,100 -487 SEK 9,109m 8,100 6,100 SEK 4,440m 4,100 2,100 EBITDA margin EBITDA margin + 105% 24.1% 48.4% 100 EBITDA Price/Mix Volume Raw material Energy Currency Other EBITDA 2020 2021 -1,900 Note: Excluding effect of one-off items related to di
Slide 19: Net sales and EBITDA by segment, annual
Forest Wood Pulp Containerboard/Paper 1 Net sales (SEKm) 9,643 9,229 8,226 8,548 8,434 7,916 7,744 6,956 7,080 6,486 6,148 6,618 6,325 6,296 5,994 5,743 5,187 5,108 4,978 5,070 5,455 5,114 5,315 5,441 5,456 4,377 4,431 2,518 2,760 2,492 2,542 2,866 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2
Slide 20: Net sales bridge Q4 2020 to Q4 2021
Higher prices in all Lower volumes in product areas all segments Divestment Wood Supply UK Exit publication paper +37% -7% 6,000 -2% -7% -17% SEK SEK 5,000 4,592m 4,763m 4,000 3,000 2,000 +4% 1,000 0 Net sales Price/Mix Volume Currency Divestments Discontinuations Net sales Q4 2020 Q4 2021 20
Slide 21: EBITDA bridge Q4 2020 to Q4 2021
3,300 +1,697 -134 -13 +2 -60 SEK -62 2,806m 2,800 2,300 1,800 SEK 1,377m 1,300 800 EBITDA margin EBITDA margin + 104% 30.0% 58.9% 300 -200 EBITDA Price/Mix Volume Raw material Energy Currency Other EBITDA Q4 2020 Q4 2021 Note: Excluding effect of one-off items related to discontinuation of publicati
Slide 22: Net sales and EBITDA by segment, quarterly
Forest Wood Pulp Containerboard/Paper 1 2,242 Net sales (SEKm) 2,183 1,981 1,876 1,817 1,868 1,833 1,770 1,765 1,659 1,627 1,592 1,592 1,518 1,565 1,522 1,500 1,498 1,494 1,474 1,455 1,436 1,340 1,326 1,368 1,272 1,288 1,264 1,188 1,166 1,091 986 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 23: Cash flow, quarter and full year
Quarter Full Year SEKm Q4 2021 Q4 2020 2021 2020 EBITDA 2,806 1,451 9,109 3,393 Revaluation of biological assets and other non cash flow items -744 -510 -1,883 -601 Operating cash surplus 2,062 941 7,226 2,792 Change in working capital 324 275 -306 1,131 Restructuring costs -58 - -394 - Current capi
Slide 24: Capital employed and net debt
SEKm Dec 31, 2021 Dec 31, 2020 Forest assets 84,497 74,900 Working capital 2,823 2,759 Working capital/Net sales 16% 18% Deferred tax relating to forest assets -16,905 -14,977 Other capital employed 20,392 17,152 Total capital employed 90,807 79,834 Net debt 7,752 7,671 Net debt/EBITDA (LTM) 1 0.9x
Slide 25: Ulf Larsson, CEO
Slide 26: Increased value from each tree; growing renewable forest asset
Increased value Invest in integrated value chain: from each tree • Grow pulp, containerboard and wood • Realize business opportunities within renewable energy Growing Increase forest holding: renewable forest • Increased growth and harvesting level asset • Continued acquisitions of forest land i
Slide 27: Value creation: decided projects and further potential
Value Decided and ongoing projects Organic growth Growing forest assets Renewable fuels Grow Wood Further potential Pulp & Containerboard Own wind power Increased forest ownership in Baltics Biofuel Bio refinery and Nordic Countries Acquire P2X potential forest land Increase
Slide 28: Best result ever
Best result ever • Exit publication paper • Strong market and high prices • Good production and stable cost base EBITDA increased 105% vs 2020 + Higher selling prices + Stable cost base - Negative currency effects Sales increased 2% vs 2020 • Price/mix 28%, volume 1% • Exit publication paper -15%, d
Slide 29: Q&A
Slide 30: Forward-looking statements
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 recent annual report for a better understanding of these risks and unce
Slide 31: Appendix
Appendix WSCA
Slide 32: Containerboard/Paper net sales and EBITDA
Containerboard/Paper 1 Containerboard Net sales (SEKm) Net sales (SEKm) 9,643 9,229 2,242 8,434 7,916 1,876 1,981 1,817 5,521 4,659 4,985 4,608 1,219 1,128 1,195 1,067 Q1 Q2 Q3 Q4 2017 2018 2019 2020 Q1 Q2 Q3 Q4 2017 2018 2019 2020 '20 '20 '20 '20 '20 '20 '20 '20 EBITDA (SEKm) and EBITDA margin 2,46