35 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Apr 27, 2017
Slide 1: Interim Report Q1 2017
Interim Report ® Q1 2017
Slide 2: Hygiene and Forest Products Business Combined Summary Q1 2017
Hygiene and Forest Products Business Combined Summary Q1 2017 Net sales increased 4% Adjusted operating profit1) increased 5% AGM decision to split SCA into two listed companies SCA, an efficient and well-invested forest products company Essity, a leading global hygiene and health company Intent
Slide 3: SCA Hygiene AB, The Future Hygiene and Health Company Essity
SCA Hygiene AB, The Future Hygiene and Health Company Essity Magnus Groth President and CEO
Slide 4: Financial Summary
SCA Hygiene AB, The Future Essity Financial Summary Q1 2017 vs Q1 2016 Net Sales Organic Sales1) Adjusted EBITA2) SEK SEK 25,268m +1.0% 2,917m +4.2% +4%3) Adjusted EBITA Margin2) EPS Operating Cash Flow SEK 11.5% SEK 2.08 3,086m +20bp +60% 1) Sales which excludes exchange rate effects, acquisitions
Slide 5: Summary Q1 2017
SCA Hygiene AB, The Future Essity Summary Q1 2017 Significant Initiatives Discontinued hygiene business in India Actions to strengthen supply chain and product offering in Europe and Mexico Events after the Quarter Completed acquisition of BSN Medical on April 3, 2017 New financial targets April 27,
Slide 6: Adjusted ROCE
SCA Hygiene AB, The Future Essity Adjusted ROCE1) 15.5% 15.6% Q1 2016 Q1 2017 1) Adjusted Return on Capital Employed (Adjusted EBITA / Capital Employed) excluding items affecting comparability April 27, 2017 Interim Report Q1 2017 6
Slide 7: Innovations Q1 2017
SCA Hygiene AB, The Future Essity Innovations Q1 2017 New Saba Re-launch of Libero TENA Flex with TENA Lady Familia® Good Night in Russia ConfioAir™ Discreet pH Balanceado April 27, 2017 Interim Report Q1 2017 7
Slide 8: Personal Care
Personal Care Q1 2017 vs Q1 2016 Net Sales Adjusted Adjusted Net sales increased 3.8% EBITA1) EBITA Margin1) Organic sales increased 1.1% SEK 8,151m SEK 8,455m 14.5% 3.8% SEK 1,228m +26% 12.0% +250bp Adjusted EBITA1) increased 26% SEK 977m Better price/mix Higher volumes Lower raw materi
Slide 9: Personal Care
Personal Care Q1 2017 vs Q1 2016 Organic sales increased 1.1% Price/mix +0.7% Volume +0.4% Organic Sales by Region Organic Sales by Product Segment Negative impact of approximately 1% related to closures of Baby Care Mexico and hygiene business in India +3.1% +4.5% Mature markets +1.1% -0.
Slide 10: Consumer Tissue
Consumer Tissue Q1 2017 vs Q1 2016 Net sales increased 2.3% Net Sales Adjusted Adjusted SEK SEK EBITA1) EBITA Margin1) Organic sales increased 0.6% 10,238m 10,473m SEK +2.3% SEK 1,078m 1,151m 10.5% 11.0% Adjusted EBITA1) increased 7% +7% +50bp Higher volumes Lower raw material costs Q1 201
Slide 11: Consumer Tissue
Consumer Tissue Q1 2017 vs Q1 2016 Organic sales increased 0.6% Price/mix -0.3% Organic Sales by Region Volume +0.9% +5.2% Mature markets Western Europe +0.6% -1.6% - Lower sales due to lower sales of retail branded products and mother reels Total Mature Emerging Markets Markets % of Consu
Slide 12: Professional Hygiene
Professional Hygiene Q1 2017 vs Q1 2016 Adjusted Adjusted Net sales increased 8.6% Net Sales EBITA1) EBITA Margin1) Organic sales increased 2.1% 13.2% SEK SEK 5,876m 6,383m SEK 11.3% Adjusted EBITA profit1) decreased 7% 8.6% SEK -190bp 777m 720m Higher raw material costs mainly due to signif
Slide 13: Professional Hygiene
Professional Hygiene Q1 2017 vs Q1 2016 Organic sales increased 2.1% Organic Sales by Region Price/mix +0.9% +13.2% Volume +1.2% Mature markets +2.1% Higher sales in Western Europe compensated for lower sales in North America 0.0% Total Mature Emerging Markets Markets Emerging markets %
Slide 14: SCA AB, The Future Forest Products Company
SCA AB, The Future Forest Products Company SCA Ulf Larsson Executive Vice President President Forest Products
Slide 15: Summary Q1 2017
SCA AB, The Future Forest Products Company Summary Q1 2017 Net sales increased 5% Adjusted EBITDA and EBITDA margin decreased Negative impact from revaluation related to the fair value measurement of electricity certificates Higher costs related to Östrand pulp mill expansion Investment in increased
Slide 16: Financial Summary
SCA AB, The Future Forest Products Company Financial Summary Q1 2017 vs Q1 2016 Net Sales Adjusted EBITDA1) SEK SEK 3,969m 807m +5% -1% Adjusted EBITDA Margin1) EPS2) Operating Cash Flow SEK 20.3% SEK 0.52 85m -110bp -89% 1) Excluding items affecting comparability 2) Continuing operations April 27,
Slide 17: Forest
Forest Q1 2017 vs Q1 2016 Net Sales Adjusted Adjusted Net sales increased 11% EBITDA1) EBITDA Margin1) Increase mainly related to higher volumes SEK SEK SEK 24.7% 24.7% 1,312m SEK 1,187 m 325m 0bp +11% 293m +11% Adjusted EBITDA1) increased 11% Higher harvesting of own forest Q1 Q1 Q1 Q1 Q1 Q1 20
Slide 18: Wood
Wood Q1 2017 vs Q1 2016 Net Sales Adjusted Adjusted Net sales increased 8% EBITDA1) EBITDA Margin1) Price/mix +9% SEK SEK 1,364m 1,264 m +8% SEK 10.6% Volume 0% 145m +370bp SEK +67% 6.9% 87m Currency -1% Adjusted EBITDA1) increased 67% Q1 Q1 Q1 Q1 Q1 Q1 2016 2017 2016 2017 2016 2017 Higher price
Slide 19: Pulp
Pulp Q1 2017 vs Q1 2016 Net Sales Adjusted Adjusted Net sales increased 7% EBITDA1) EBITDA Margin1) Price/mix 0% SEK SEK SEK 27.2% 600 m 641m 163m Volume +4% +7% SEK 104m 16.3% Currency +3% -36% -1090bp Adjusted EBITDA1) decreased 36% Q1 Q1 Q1 Q1 Q1 Q1 2016 2017 2016 2017 2016 2017 Revaluation r
Slide 20: Paper
Paper Q1 2017 vs Q1 2016 Net Sales Adjusted Adjusted Net sales increased 2% EBITDA1) EBITDA Margin1) Price/mix -3% SEK SEK 15.2% 1,998 m 2,046m SEK 13.1% Volume +4% 303m SEK +2% -210bp 268m -12% Currency +1% Adjusted EBITDA1) decreased 12% Q1 Q1 Q1 Q1 Q1 Q1 Lower prices 2016 2017 2016 2017 2016
Slide 21: Fredrik Rystedt, Executive Vice President and CFO
Fredrik Rystedt Executive Vice President and CFO April 27, 2017 Interim Report Q1 2017 21
Slide 22: Net Sales Q1 2017 vs. Q1 2016
SCA Hygiene AB, The Future Essity Net Sales Q1 2017 vs. Q1 2016 SEK SEK +2.6% +0.6% 25,268m 24,248m +0.3% +0.7% +4.2% Net Sales Price/Mix Volume Currency Acquisition Net Sales Q1 2016 Q1 2017 Organic sales increased 1.0% Price/Mix +0.3% Volume +0.7% April 27, 2017 Interim Report Q1 2017 22
Slide 23: Adjusted EBITA Q1 2017 vs. Q1 2016
SCA Hygiene AB, The Future Essity Adjusted EBITA1) Q1 2017 vs. Q1 2016 SEK SEK +214m -214m SEK SEK SEK SEK SEK SEK +22m 2,917m SEK +99m -38m -26m +64m SEK +52m 2,744m +6% Adjusted Price/Mix Volume Raw Energy Currency Acquisition Cost Other Adjusted EBITA Material Savings EBITA Q1 2016 Q1 2017 1) Exc
Slide 24: Raw Material Development
Raw Material Development Recovered Paper1) Market Pulp – Europe Index 100 = January 2016 Index 100 = January 2016 150 150 100 100 50 50 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Fluff NBSK EUCA SOP US SOP EU 1) Index based in loca
Slide 25: Cash Flow
SCA Hygiene AB, The Future Essity Cash Flow Q1 2017 vs Q1 2016 Q1 2017 Q1 2016 SEKm SEKm Operating cash surplus 4,146 3,900 Change in working capital -253 -1,071 Restructuring costs and other operating cash flow -211 -231 Capital expenditures (including strategic) -852 -1,086 Operating cash flow inc
Slide 26: Items Affecting Comparability Q1 2017
SCA Hygiene AB, The Future Essity Items Affecting Comparability Q1 2017 Q1 2017 SEKm Costs related to the split of the SCA Group into two listed companies -460 Restructuring costs related to closure of tissue machine in the UK -80 Wausau Paper Corp. -30 Release of provision related to anti-trust cas
Slide 27: New Group Financial Targets
SCA Hygiene AB, The Future Essity New Group Financial Targets Annual Organic Adjusted Return on Sales Growth1) Capital Employed2) ˃3% ˃15% Capital structure policy and dividend policy unchanged 1) Excluding exchange rate effects, acquisitions and divestments 2) Adjusted EBITA / Capital Employed Janu
Slide 28: Net Sales Q1 2017 vs. Q1 2016
SCA AB, The Future Forest Products Company Net Sales Q1 2017 vs. Q1 2016 SEK SEK +3% 0% 3,969m 3,793m +2% +5% Net Sales Price/Mix Volume Currency Net Sales Q1 2016 Q1 2017 April 27, 2017 Interim Report Q1 2017 28
Slide 29: Adjusted EBITDA Q1 2017 vs. Q1 2016
SCA AB, The Future Forest Products Company Adjusted EBITDA1) Q1 2017 vs. Q1 2016 SEK SEK SEK SEK SEK SEK SEK +38m +16m -39m SEK -10m +28m -39m 813m 807m -1% Adjusted Price/Mix Volume Raw Material Energy Currency Other Adjusted EBITDA EBITDA Q1 2016 Q1 2017 1) Excluding items affecting comparability
Slide 30: Cash Flow Q1 2017 vs. Q1 2016
SCA AB, The Future Forest Products Company Cash Flow Q1 2017 vs. Q1 2016 Q1 2017 Q1 2016 SEKm SEKm Operating cash surplus 574 514 Change in working capital -354 349 Restructuring costs and other operating cash flow -9 10 Capital expenditures (including strategic) -641 -461 Operating cash flow includ
Slide 31: Magnus Groth, President and CEO
Magnus Groth President and CEO April 27, 2017 Interim Report Q1 2017 31
Slide 32: Essity and SCA
és essity @SCA
Slide 33: Q&A
Q&A April 27, 2017 Interim Report Q1 2017 33
Slide 34: 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 our most recent annual report for a better understanding of these risks and uncert
Slide 35: Slide 35