Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Q1 2005 Earnings Presentation
29 slides from Svenska Cellulosa AB SCA Class A's earnings presentation, April 2005
Slide 1: SCA Interim Report
SCA Interim Report 1 January–31 March 2005 Jan Åström President and CEO 1
Slide 2: SCA in Brief
SCA in Brief 1 January–31 March 2005 Q1 2005 Q1 2004 Q4 2004 Earnings per share, SEK (including 2.82 5.89 4.62 items affecting comparability) Cash flow from current operations -0.11 3.68 8.15 per share, SEK Net sales, SEK M 22,518 21,687 23,128 Earnings after financial items, SEK M 894 1,883 971 Exc
Slide 3: SCA Group – Compared with Q1 2004
SCA Group Compared with first quarter of 2004 SEK M Sales 25,000 21,687 22,518 Sales increased by 4% 20,000 Currency effects -2% 15,000 10,000 5,000 Operating surplus decreased with 0 SEK 343 M Q1 2004 Q1 2005 (excluding items affecting comparability) EBITDA* / EBIT* SEK M Operating profit d
Slide 4: SCA Group – Compared with Q4 2004
SCA Group Compared with fourth quarter of 2004 SEK M Sales 23,128 25,000 22,518 Sales decreased with 3% 20,000 Limited currency effects 15,000 10,000 5,000 Operating surplus decreased with 0 SEK 286 M Q4 2004 Q1 2005 (excluding items affecting comparability) EBITDA* / EBIT* SEK M 4,000 3,461
Slide 5: Cash Flow Analysis
Cash Flow Analysis 1 January–31 March 1 (2) SEK M 2005 2004 Change Operating cash surplus 3,087 3,445 -10% Changes in working capital -1,266 -1,369 Current capital expenditures, net -750 -583 Other operating cash flow changes -156 -78 Operating cash flow 915 1,415 -35% Financial items -343 -214 Inco
Slide 6: Cash Flow Analysis
Cash Flow Analysis 1 January–31 March 2 (2) SEK M 2005 2004 Cash flow from current operations -26 861 Company acquisitions -49 -988 Strategic capital expenditures -601 -465 Strategic structural expenditures -12 -85 Divestments 0 0 Cash flow before dividend -688 -677 Debt equity ratio, times 0.66 0.5
Slide 7: Group – Quarterly Development
Group – Quarterly Development Excluding items affecting comparability SEK M EBITDA target 30,000 16.6% 18% 16.2% 16.3% 18% 15.0% 16% 14.1% 25,000 14% 20,000 12% 10% Sales 15,000 8% 21,687 22,340 22,812 23,128 22,518 EBITDA- 10,000 6% margin 4% 5,000 2% 0 0% Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 7
Slide 8: Hygiene Products - Development
Hygiene Products - Development Quarterly data SEK M 17.0% 16.9% EBITDA 15,000 18% target 18% 16.0% 14.4% 16% 14.1% 14% 10,000 12% 10% 8% 11,149 11,761 11,904 11,606 5,000 10,545 6% 4% 2% 0 0% Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Sales EBITDA-margin 8
Slide 9: Hygiene Products - Operating Profit
Hygiene Products - Operating Profit Compared with first quarter of 2004 Q1 2005 Q1 2004 Change Comments Hygiene Products 908 1,178 -23% Tissue 379 567 -33% Consumer tissue: Intense competition resulted in lower prices AFH tissue: Price increases implemented. Positive development in North America Per
Slide 10: Hygiene Products - Operating Profit
Hygiene Products - Operating Profit Compared with fourth quarter of 2004 Q1 2005 Q4 2004 Change Comments Hygiene Products 908 998 -9% Tissue 379 408 -7% Consumer tissue: Intense competition resulted in slightly lower prices AFH tissue: Improved earnings in North America Personal Care 529 590 -10% Hi
Slide 11: Tissue
Tissue Market Europe Consumer tissue • Competitive market conditions • Unchanged pressure from retail Price increases in AFH tissue North America Price increases during first quarter 11
Slide 12: Personal Care
Personal Care Market Incontinence products Continuing strong growth in retail Baby diapers Price pressure within retailers’ brands Very good growth in the Nordic region Feminine hygiene products Unchanged competitive situation in Europe 12
Slide 13: Packaging - Development
Packaging - Development Quarterly data SEK M 12,000 18% EBITDA 14.8% 16% target 16% 10,000 14.3% 13.3% 13.6% 14% 11.8% 8,000 12% 10% 6,000 8% 4,000 7,830 7,939 7,928 7,804 7,642 6% 4% 2,000 2% 0 0% Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Sales EBITDA-margin 13
Slide 14: Packaging - Operating Profit
Packaging - Operating Profit Compared with first quarter of 2004 Q1 2005 Q1 2004 Change Comments Operating profit 458 621 -26% Europe: Lower volumes and higher energy costs North America: Cost increases have not been fully offset by gradual price increases 14
Slide 15: Packaging - Operating Profit
Packaging - Operating Profit Compared with fourth quarter of 2004 Q1 2005 Q4 2004 Change Comments Operating profit 458 580 -21% Lower volumes and prices combined with higher energy costs and recovered paper prices 15
Slide 16: Recovered Paper
Recovered Paper Market Europe Export-driven price increases for OCC during the first quarter – unchanged prices in April Tissue grades stable US Stable markets, high-quality grade prices level out 16
Slide 17: Containerboard
Containerboard Market Testliner Some price erosion during the first quarter Price increases announced for the second quarter Kraftliner Slow start of the year – in Europe as well as in the US Price pressure during the first quarter 17
Slide 18: Corrugated Board – Europe
Corrugated Board – Europe Market Slow start of the year after strong end of 2004 Demand down 1.8% during January-February Competitive market conditions Pressure on prices 18
Slide 19: Forest Products - Development
Forest Products - Development Quarterly data SEK M EBITDA 5,000 25% target 25% 21.6% 20.9% 21.0% 19.6% 19.4% 4,000 20% 3,000 15% 2,000 3,813 3,814 3,762 10% 3,741 3,586 1,000 5% 0 0% Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Sales EBITDA-margin 19
Slide 20: Forest Products - Operating Profit
Forest Products - Operating Profit Compared with first quarter of 2004 Q1 2005 Q1 2004 Change Comments Forest Products 401 417 -4% Publication papers 121 102 19% Higher prices and increased capacity utilization, slightly offset by increased energy costs Pulp, timber and 280 315 -11% Lower prices for
Slide 21: Forest Products - Operating Profit
Forest Products - Operating Profit Compared with fourth quarter of 2004 Q1 2005 Q4 2004 Change Comments Forest Products 401 457 -12% Publication papers 121 137 -12% Price increases did not compensate for lower volumes and higher energy costs Pulp, timber and 280 320 -13% Weak development within soli
Slide 22: Publication Papers
Publication Papers Market Slow start of the year after strong fourth quarter of 2004 European newsprint shipments flat during first quarter SC paper down 2%; coated mechanicals up 8% Prices moving up during first quarter, but less than expected Newsprint up about 5% Magazine papers up ab
Slide 23: Market Pulp
Market Pulp Market Slow start of the year Global shipments down 1.4% during the first quarter Chinese buyers are de-stocking Increasing producer inventories in March Mixed price signals Firm hardwood markets – prices approaching USD 600/ton in March Weaker softwood markets – some press
Slide 24: Solid-Wood Products
Solid-Wood Products Market Fair demand for both pine and spruce, but over- supply has put pressure on prices Pine prices now stabilized on low levels Spruce stable, but increased supply of windfall timber might place renewed pressure on the market 24
Slide 25: Action Programs
Action Programs Market initiatives Supply chain initiatives 25
Slide 26: Market Initiatives
Market Initiatives New product platform and intensified marketing within feminine hygiene products Launch of new incontinence products in the US and Europe Continued strong growth in retail trade segment Strengthened competitiveness in baby diapers with launch of a new innovative pant diaper
Slide 27: Supply Chain Initiatives
Supply Chain Initiatives Rationalization programs are proceeding according to plan Total savings in 2005 estimated at SEK 600 M Approximately SEK 80 M realized in the first quarter of 2005 Annual savings of SEK 1,200 M from 2006 27
Slide 28: Market Outlook
Market Outlook No significant change in the market Tissue Demand remains strong but the consumer sector in Europe is characterized by overcapacity and price pressure Personal care Stable growth with intense price competition in Europe. Strong growth in Eastern Europe, South America and Asia
Slide 29: essentials for everyday life
essentials for everyday life”