26 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jul 22, 2022
Slide 1: Andreas Ewertz, CFO – July 22, 2022
July 22, 2022
Slide 2: SCA
WSCA
Slide 3: Record result
Record result Favored by high degree of self sufficiency Sales increased 23% vs Q2 2021 EBITDA increased 38% vs Q2 2021 Increased forest land values Obbola expansion on budget and ahead of time CTMP expansion on budget and on time 3
Slide 4: EBITDA and EBITDA margin
EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin 3,121 46% +38% 3,121 2,806 2,684 2,608 2,260 EBITDA margin Net debt/EBITDA 59% 53% 52% 53% 1,377 1,359 53% 0.8x 47% 1,001 1,032 33% 30% 24% 21% Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1'22 Q2'22 1. LTM 4 Note: EBITDA excluding
Slide 5: Forest: stable wood supply to industries
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +2% -10% Stable wood supply to industries 1,592 1,629 753 47.3% 675 41.4% EBITDA down 10% - Lower harvesting level of own forest - Higher transportation and harvesting costs, driven by higher fuel prices Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Pri
Slide 6: Wood: stable deliveries, sales up 25%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +25% +49% Stable deliveries 2,202 933 42.4% 1,765 35.6% Sales up 25% 628 + Higher prices - Lower volumes EBITDA up 49% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 + Higher prices + Positive currency effects Price development – Solid Wood Products - Hi
Slide 7: Sawn wood stocks, production and price development
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 Nov-21 90 Jan-22 Apr-22 Dec-21 Sep-21 Oct-21 Jan-17 Jan-20 Jan-16 Jan-18 Jan-19 Jan-21 Jan-22
Slide 8: Pulp: continued strong market
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +23% +44% Continued strong market 1,926 866 45.0% 1,565 38.3% CTMP project at Ortviken on time and on budget 600 Sales up 23% + Higher prices + Positive currency effects Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 EBITDA up 44% + Higher prices Price d
Slide 9: NBSK pulp price, deliveries and inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 14.5 1500 80 1400 1300 70 14.0 1200 60 1100 Average 13.5 1000 50 900 13.0 800 40 700 30 12.5 600 Apr-20 Apr-21 Apr-17 Apr-18 Apr-19 Apr-22 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Oct-17 Oct-18 Oct-19 Oct-20 Oct-2
Slide 10: Containerboard: planned maintenance stop in Obbola
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +32% +84% Planned maintenance stop in Obbola 1,772 756 42.7% Sales up 32% 1,340 30.7% + Higher prices 411 EBITDA up 84% + Higher prices - Maintenance stop Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Price development – Kraftliner 160 150 140 130 120 1
Slide 11: Kraftliner price, deliveries and box demand
Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 1,000 122 4.9 119 900 4.8 116 4.6 113 800 4.5 110 700 107 4.3 Unbleached kraftliner price Euwid (LHS) 104 600 4.2 Kraftliner deliveries Europe (RHS) 101 500 4.0 98 Kraftliner inventories (days of supply) 45 40 Average Stable del
Slide 12: Obbola expansion project timeline
July 22, 2022 Fiber Line Q3 2021 Recovery Boiler Q3 2021 Four sub-projects delivered Wood Handling Q4 2021 Lime Kiln Q4 2021 Operating trials Paper Machine Q4 2022 Originally planned Q1 2023 Effluent Treatment Q1 2023 OCC Q2 2023 2019 2020 2021 2022 2023 12
Slide 13: Slide 13
Slide 14: Higher transaction prices for forest assets in Northern Sweden
Market price (SEK/m 3 fo) Forest asset (SEK bn) +18 +3.4 Higher transaction prices for forest assets in Northern Sweden 342 87.9 84.5 324 SEK 342/m3fo at June 30 2022 • Average three year transaction price in SCAs region SCAs forest assets valued SEK ~88bn • Value increase of SEK 3.4bn since year-en
Slide 15: Quarter income statement
Quarter SEKm Q2 2022 Q2 2021 Change Net sales 5,899 4,810 23% EBITDA 3,121 2,260 38% EBITDA margin 52.9% 47.0% 5.9 p.p. EBIT 2,735 1,881 45% EBIT margin 46.4% 39.1% 7.3 p.p. Financial items -5 -26 Profit before tax 2,730 1,855 47% Tax -550 -372 Profit for the period 2,180 1,483 47% Earnings per shar
Slide 16: Net sales and EBITDA by business area
Forest Wood Pulp Containerboard/Paper 1 Net sales (SEKm) 2,202 2,183 1,981 1,926 1,817 1,868 1,772 1,731 1,765 1,717 1,691 1,659 1,629 1,627 1,592 1,592 1,518 1,565 1,564 1,522 1,500 1,498 1,474 1,455 1,340 1,326 1,368 1,272 1,288 1,264 1,166 986 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 17: Net sales bridge Q2 2021 to Q2 2022
Higher prices in all Maintenance stop Exit publication paper product areas in Obbola -3% SEK +27% -4% +3% 5,899m SEK 4,810m +23% Net sales Price/Mix Volume Currency Discontinuations Net sales Q2 2021 Q2 2022 17
Slide 18: EBITDA bridge Q2 2021 to Q2 2022
Maintenance stop -67 MSEK, increased fuel prices Higher wood raw impacting distribution and material costs harvesting costs 4,000 +1,250 -135 3,500 -318 SEK +179 -143 +28 3,121m 3,000 SEK 2,500 2,260m 2,000 1,500 1,000 EBITDA margin EBITDA margin + 38% 47.0% 52.9% 500 0 EBITDA Price/Mix Volume Raw m
Slide 19: Cash flow
Quarter Jan - June SEKm Q2 2022 Q2 2021 2022 2021 EBITDA 3,121 2,260 5,729 3,619 Revaluation of biological assets and other non cash flow items -481 -362 -972 -682 Operating cash surplus 2,640 1,898 4,757 2,937 Change in working capital -369 -401 -993 -691 Restructuring costs -6 -148 -33 -271 Curren
Slide 20: Capital employed and net debt
SEKm June 30, 2022 Dec 31, 2021 Forest assets 87,899 84,497 Working capital 3,820 2,823 Deferred tax relating to forest assets -17,499 -16,905 Other capital employed 21,429 20,392 Total capital employed 95,649 90,807 Net debt 9,511 7,752 Net debt/EBITDA 0.8x 0.9x Equity 86,138 83,055 Net debt/Equity
Slide 21: Summary – Ulf Larsson, CEO
Summary Ulf Larsson, CEO WSCA
Slide 22: Record result
Record result Favored by high degree of self sufficiency Sales increased 23% vs Q2 2021 EBITDA increased 38% vs Q2 2021 Increased forest land values Obbola expansion on budget and ahead of time CTMP expansion on budget and on time 22
Slide 23: Q&A
Slide 24: 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 25: Appendix
Appendix WSCA
Slide 26: Net sales and EBITDA by business area, 2014-LTM
Forest Wood Pulp Containerboard/Paper 1 Net sales (SEKm) 9,643 9,229 7,970 8,226 8,548 8,434 7,916 7,744 6,956 7,080 6,486 6,148 6,249 6,618 6,325 6,296 6,380 6,347 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 20