Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Q1 2022 Earnings Presentation
25 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Apr 29, 2022
Slide 1: Ulf Larsson, CEO - April 29, 2022
April 29, 2022
Slide 2: Slide 2
Slide 3: Russian invasion of Ukraine; Q1 highlights
Russian invasion of Ukraine • No operations or direct exposure from sales or purchasing High degree of self sufficiency • Cost inflation offset by control of value chain EBITDA increased 92% vs Q1 2021 + Higher prices on solid wood, pulp and kraftliner Sales increased 20% vs Q1 2021 • Price/mix 30%,
Slide 4: EBITDA (SEKm) and EBITDA margin
EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin +92% 2,608 40% 2,684 2,806 2,608 2,260 59% 53% 52% 47% EBITDA margin Net debt/EBITDA 1,377 1,359 52% 1.0x 1,030 1,032 33% 1,001 30% 24% 21% 21% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1'22 1. LTM 4 Note: EBITDA excludin
Slide 5: Forest: Stable wood supply to industries
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +4% +35% Stable wood supply to industries 1,627 1,691 608 36.0% Sales up 4% 449 27.6% + Higher sawlog price EBITDA up 35% + Higher revaluation biological assets Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 + Higher sawlog price Price development – Pulp
Slide 6: Wood: Generally strong market with reduced supply
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +36% +105% Generally strong market with reduced supply 1,717 635 37.0% Sales up 36% 1,264 24.5% + Higher prices 310 + Higher volumes EBITDA up 105% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 + Higher prices - Higher wood raw material cost Price devel
Slide 7: Seasonally lower demand in Q1; Scandinavian stock levels
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 Spruce 3,000 240 Pine 2,000 190 1,000 140 0 90 Production of sawn pine and spruce wood, Sweden and Finland (k m3 ) 3,500 Normalized monthl
Slide 8: Pulp: Sales up 21%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +21% +59% Sales up 21% 1,564 614 39.2% + Higher prices 1,288 29.9% 385 + Positive currency effects - Lower deliveries EBITDA up 59% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 + Higher prices Price development – NBSK Pulp + Better yield 140 130 120 CT
Slide 9: NBSK pulp price vs deliveries; inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 14.5 1400 80 1300 70 14.0 1200 1100 60 13.5 1000 Average 900 50 13.0 800 40 700 12.5 600 30 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Oct-17 Oct-21 Oct-18 Oct-19 Oct-20 Jul-18 Jul
Slide 10: Containerboard: Sales up 36%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +36% +144% Sales up 36% 1,731 782 45.2% + Higher prices 1,272 - Lower deliveries 25.2% 321 EBITDA up 144% + Higher prices - Higher costs for raw material Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 - Lower deliveries Price development – Kraftliner 160
Slide 11: Kraftliner price, deliveries and box demand
Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 1,000 6.2 122 6.1 119 900 5.9 116 800 5.8 113 5.6 110 700 5.5 107 600 5.3 104 Unbleached kraftliner price Euwid (LHS) 5.2 101 500 Kraftliner deliveries Europe (RHS) 5.0 98 Apr-20 Apr-21 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-17
Slide 12: Toby Lawton
Ba al t Toby Lawton, ee i he Ee ae wits rf - a
Slide 13: Self sufficiency in wood, electricity, biofuels and logistics
~50% ~95% >100% ~40% ~45% Wood sourcing Electricity usage Solid biofuels SCA Logistics 1) Transportation fuel 11 M m3 1.7 TWh 12 TWh 2.4 SEKbn 100 kt External exposure District heating External suppliers Sold externally Wind lease (e.g. pellets) External External Local private Own production supplie
Slide 14: Quarter SEKm Q1 2022
Quarter SEKm Q1 2022 Q1 2021 Change Net sales 5,015 4,172 20% EBITDA 2,608 1,359 92% EBITDA margin 52.0% 32.6% 19.4 p.p. EBIT 2,223 1,046 113% EBIT margin 44.3% 25.1% 19.2 p.p. Financial items -15 -28 Profit before tax 2,208 1,018 117% Tax -448 -216 Profit for the period 1,760 802 119% Earnings per
Slide 15: Net sales and EBITDA by business area
Forest Wood Pulp Containerboard/Paper 1 Net sales (SEKm) 2,183 1,981 1,876 1,817 1,868 1,731 1,770 1,765 1,717 1,691 1,659 1,627 1,592 1,592 1,518 1,565 1,564 1,522 1,500 1,498 1,494 1,474 1,455 1,340 1,326 1,368 1,272 1,288 1,264 1,166 1,091 986 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 16: Net sales bridge Q1 2021 to Q1 2022
Lower volumes Higher prices in all Containerboard product areas Exit publication paper and Pulp +30% -2% +1% -9% SEK 5,015m SEK 4,172m +20% Net sales Price/Mix Volume Currency Discontinuations Net sales Q1 2021 Q1 2022 16
Slide 17: EBITDA bridge Q1 2021 to Q1 2022
3,300 SEK 2,800 +1,319 -39 -44 +8 -21 +26 2,608m 2,300 1,800 SEK 1,359m 1,300 800 EBITDA margin EBITDA margin + 92% 32.6% 52.0% 300 -200 EBITDA Price/Mix Volume Raw material Energy Currency Other EBITDA Q1 2021 Q1 2022 17
Slide 18: Cash flow Q1 2022
Quarter SEKm Q1 2022 Q1 2021 EBITDA 2,608 1,359 Revaluation of biological assets and other non cash flow items -491 -320 Operating cash surplus 2,117 1,039 Change in working capital -624 -290 Restructuring costs -27 -123 Current capital expenditures -248 -209 Other operating cash flow -75 58 Operati
Slide 19: Capital employed and net debt
SEKm Mar 31, 2022 Dec 31, 2021 Forest assets 85,021 84,497 Working capital 3,536 2,823 Deferred tax relating to forest assets -16,996 -16,905 Other capital employed 21,267 20,392 Total capital employed 92,828 90,807 Net debt 10,181 7,752 Net debt/EBITDA 1.0x 0.9x Equity 82,647 83,055 Net debt/Equity
Slide 20: Summary
Summary Ulf Larsson, CEO WSCA
Slide 21: Russian invasion of Ukraine; Q1 summary
Russian invasion of Ukraine • No operations or direct exposure from sales or purchasing High degree of self sufficiency • Cost inflation offset by control of value chain EBITDA increased 92% vs Q1 2021 + Higher prices on solid wood, pulp and kraftliner Sales increased 20% vs Q1 2021 • Price/mix 30%,
Slide 22: Q&A
Slide 23: 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 24: Appendix
Appendix WSCA
Slide 25: Net sales and EBITDA by business area, 2014-LTM
Forest Wood Pulp Containerboard/Paper 1 Net sales (SEKm) 9,643 9,229 8,226 8,548 8,434 7,916 7,533 7,744 6,956 7,080 6,486 6,148 6,212 6,618 6,325 6,296 5,994 5,743 6,019 5,915 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 20