Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A

Svenska Cellulosa Ab Sca Class A — SCA — Q1 2007 Earnings Presentation

20 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, April 2007

  1. Slide 1: SCA Interim Report 1 January–31 March 2007

    SCA Interim Report 1 January–31 March 2007 Jan Åström, CEO Lennart Persson, CFO

  2. Slide 2: Key strategic steps

    Key strategic steps ƒ SCA is actively rebalancing towards value-added products ƒ High priority on growth in emerging markets

  3. Slide 3: We are delivering

    • New tissue plant in the Moscow region We are delivering • Expansion of packaging in Acquisition of P&G’s Eastern Europe European tissue and China operations* Acquisition of 20% in Vinda - Chinese • Divestment of the North tissue company American packaging operations • Investment in AFH tissue New

  4. Slide 4: We are delivering

    We are delivering Strong development in Q1 07 vs. Q1 06 Š Pre-tax profit up 19% to SEK 1,863m Š Net earnings up 23% to SEK 1,434m Continued upward trend Q1 07 vs. Q4 06 Š Positive price development, particularly in Packaging Š Higher raw material costs

  5. Slide 5: Trends in our favour, but…

    Trends in our favour, but… …sharp increases in raw material costs put pressure on short term earnings

  6. Slide 6: Group – Quarterly Development

    Group – Quarterly Development SEKm EBITDA (%) 30,000 14.7% 14.9% 14.8% 16% 13.9% 14.4% 14% 25,000 12% 20,000 10% 15,000 8% 25,650 25,615 25,400 25,294 25,095 6% 10,000 4% 5,000 2% 0 0% Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Sales EBITDA margin

  7. Slide 7: SCA Group Sales and EBIT Q1 2007 vs Q1 2006

    SCA Group Sales and EBIT Q1 2007 compared with Q1 2006 SEKm Sales 26 000 +193 25,615 25,400 -17 +94 -237 +182 ƒ Price/mix: +4% 25 000 ƒ Currency: -3% 24 000 23 000 Sales Q1 Personal Care Tissue Packaging Forest Other Sales Q1 2006 Products 2007 SEKm EBIT 2 400 +86 -29 2,282 ƒ Price/mix: +44% +251 2

  8. Slide 8: SCA Group Sales and EBIT Q1 2007 vs Q4 2006

    SCA Group Sales and EBIT Q1 2007 compared with Q4 2006 SEKm Sales 25,650 -98 -119 +126 -8 +64 25,615 26 000 ƒ Price/mix: +1% ƒ Volume: -2% 24 000 22 000 20 000 Sales Q4 Personal Tissue Packaging Forest Other Sales Q1 2006 Care Products 2007 SEKm EBIT 2,261 -47 +91 -13 +9 2,282 2 300 -19 ƒ Price/mix:

  9. Slide 9: Cash-flow Analysis

    Cash-flow Analysis Q1 2007 compared with Q1 2006 ƒ Operating cash surplus SEK 3,537m (3,381) Š Higher cash flow from operations ƒ Cash flow from current operations SEK 267m (-125) Š Lower current capex Š Lower cash outflow related to structural expenditures ƒ Cash flow before dividend SEK 2,465m (-3

  10. Slide 10: Personal Care – Quarterly Development

    Personal Care – Quarterly Development SEKm EBITDA (%) Q1/Q4 comments: 17.9% 17.6% 17.7% 17.5% 17.8% 18% ƒ Lower volumes in 16% the healthcare 5,000 segment 14% ƒ Continued 12% favourable 4,000 10% momentum within 5,348 5,249 5,246 5,429 5,331 8% baby diapers 6% 3,000 4% 2% 2,000 0% Q1 2006 Q2 2006 Q

  11. Slide 11: Personal Care

    Personal Care ƒ Incontinence care Š Lower volumes within the healthcare segment Š Launch of “Feel Dry” with improved product offering Š Good growth for products sold through retailers ƒ Baby diapers Š Increased market shares for Libero Š Strong sales development for pant diapers ƒ Feminine care Š St

  12. Slide 12: Tissue – Quarterly Development

    Tissue – Quarterly Development SEKm EBITDA (%) Q1/Q4 comments: 9,000 14% ƒ Improved prices in 11.9% 12.2% 11.6% Europe 11.2% 12% 10.7% ƒ Higher raw material 10% costs 7,000 8% ƒ Seasonally weak volumes in North 6% 7,962 7,787 7,743 7,844 7,725 America 5,000 4% 2% 3,000 0% Q1 2006 Q2 2006 Q3 2006 Q4

  13. Slide 13: Tissue

    Tissue ƒ Consumer tissue Š Gradual impact of price increases in Europe Š Sharp increase in raw material costs ƒ AFH tissue Š Seasonally slow volumes Š Increased sales of complete hygiene solutions – Sustainability becoming a competitive advantage for SCA

  14. Slide 14: Packaging – Quarterly Development

    Packaging – Quarterly Development SEKm EBITDA (%) Q1/Q4 comments: 12.4% 11.9% 12.1% 12% ƒ Carry-over effect 10.8% 9,000 10.2% from price increases 10% in Q4 ƒ Favourable volume 8% 7,000 development 8,389 6% ƒ Higher costs for 8,231 8,445 8,571 8,288 recovered paper 4% 5,000 2% 3,000 0% Q1 2006 Q2 20

  15. Slide 15: Packaging

    Packaging ƒ Corrugated packaging Š New price increases under implementation Š Healthy market growth ƒ Containerboard Š Good market balance Š Price increase of EUR 30 / ton announced for testliner in May Š Sharp increases in raw material costs ƒ North America (divested) Š Deconsolidation of North Ame

  16. Slide 16: Price dynamics on corrugated packaging

    Price dynamics on corrugated packaging Index ƒ Some 50% of costs for standard 140 corrugated boxes relate to containerboard 130 ƒ Containerboard prices have 120 increased ~30%* while 110 corrugated boxes are up ~8%(1) 100 ƒ Sharp increases in 90 containerboard have not fully been transferred to corr

  17. Slide 17: Forest Products – Quarterly Development

    Forest Products – Quarterly Development SEKm EBITDA (%) 5,000 21.8% 22.5% 22.4% Q1/Q4 comments: 21.0% 21.0% ƒ Strong performance 20% in the solid-wood 4,000 operations 15% ƒ Increased raw material cost 3,000 4,378 4,454 4,339 4,480 4,472 10% ƒ Lower volumes in publication papers 2,000 5% 1,000 0% Q1

  18. Slide 18: Forest Products

    Forest Products ƒ Publication papers Š Lower volumes Š Competitive European market for magazine papers Š Higher costs for recovered paper and wood raw material ƒ Pulp, timber and solid-wood products Š Continued favourable market for solid-wood products Š Increased purchases of wood externally Š More

  19. Slide 19: Summary

    Summary ƒ Delivering according to strategy ƒ Sharpening the customer offerings ƒ Substantial raw material cost increases applying continued pressure ƒ Continued good underlying market development and positive price momentum

  20. Slide 20: essentials

    essentials for everyday life”

SCA — Q1 2007 Earnings Presentation on 6ix