Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — Svenska Cellulosa Aktiebolaget SCA — Q3 2024 Earnings Presentation
23 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Oct 25, 2024
Slide 1: October 25, 2024
October 25, 2024
Slide 2: Ulf Larsson, CEO
Ulf Larsson, y ry ‘Z WSCA
Slide 3: Increased prices and higher delivery volumes
Increased prices and higher delivery volumes Higher harvesting of own forest, mitigated increasing wood raw material costs EBITDA increased 42% vs Q3 2023 Sales increased 22% vs Q3 2023 • Price/mix +19%, volume +4%, currency -1% 3
Slide 4: EBITDA, Industrial ROCE and EBITDA margin
EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin 2,010 12% 2,484 +42% 2,055 2,010 1,981 1,888 EBITDA margin Net debt/EBITDA 1,700 1,635 1,596 38.3% 1.6x 50% 41% 43% 1,417 37% 37% 38% 35% 36% 33% EBIT margin Net debt/Equity 28.1% 11.1% Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q
Slide 5: Forest: stable wood supply to industries
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +12% +7% Stable wood supply to industries 2,099 777 38.5% 37.0% 1,878 724 Increased harvesting own forest Continued price increase for wood raw material Sales up 12% + Higher prices Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 + Higher delivery volumes
Slide 6: Wood: increasing costs for sawlogs
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +23% +79% Increasing costs for sawlogs 1,524 288 18.9% 1,244 Sales up 23% 13.0% 161 + Higher volumes + Higher prices EBITDA up 79% Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 + Higher prices + Higher volumes Price development – Solid Wood Products 130
Slide 7: Sawn wood stock, 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 3,000 240 Spruce 2,000 190 1,000 140 Pine 0 90 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24 Aug-16 Aug-17 Aug-18 Aug-19
Slide 8: Pulp: sales up 27%, EBITDA up 225%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +27% +225% Sales up 27% 2,085 562 27.0% + Higher prices 1,636 EBITDA up 225% 173 10.5% + Higher prices Planned maintenance stop in Östrand started at the end of quarter Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Price development – NBSK 140 120 100 8
Slide 9: NBSK pulp price, deliveries and inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 15.5 1,800 80 15.0 1,600 70 14.5 1,400 60 14.0 1,200 50 Average 13.5 1,000 40 13.0 800 30 12.5 600 20 Apr-17 Jul-17 Apr-18 Jul-18 Apr-19 Jul-19 Apr-20 Jul-20 Apr-21 Jul-21 Apr-22 Jul-22 Apr-23 Jul-23 Apr-24 Jul-24
Slide 10: Containerboard: sales up 15%, EBITDA up 26%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +15% +26% Sales up 15% 1,597 318 19.9% 1,385 18.3% + Higher prices 253 + Higher volumes EBITDA up 26% + Higher prices + Higher volumes Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 - Higher raw material costs Price development – Kraftliner Planned maint
Slide 11: Kraftliner price, deliveries and inventories
20 25 30 35 40 45 50 1,000 500 600 700 800 900 Jan-18 Jan-18 Apr-18 Apr-18 Jul-18 Jul-18 Average Oct-18 Oct-18 Jan-19 Jan-19 Figures excluding Russia. Apr-19 Apr-19 Source: Euwid, Numera, Cepi. Jul-19 Jul-19 Oct-19 Oct-19 Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Kraftliner inventories
Slide 12: Renewable Energy: weak biofuels market
Income 1 (SEKm) EBITDA (SEKm) EBITDA margin 2 +6% -36% Continued weak market in Europe for liquid 435 155 37.9% biofuels also affecting tall oil prices 411 99 22.9% Higher prices for solid biofuels offset by higher costs for sawdust Lower electricity prices Income up 6% Q3 2023 Q3 2024 Q3 2023 Q3 20
Slide 13: Andreas Ewertz, CFO
Slide 14: Income statement Q3 2024
Quarter SEKm Q3 2024 Q3 2023 Change Net sales 5,248 4,302 22% EBITDA 2,010 1,417 42% EBITDA margin 38.3% 32.9% 5.4 p.p. Depreciation and impairment -534 -504 6% EBIT 1,476 913 62% EBIT margin 28.1% 21.2% 6.9 p.p. Financial items -131 -111 Profit before tax 1,345 802 68% Tax -275 -139 Profit for the
Slide 15: Net sales and EBITDA by business area
Forest Wood Pulp Containerboard Renewable Energy Net Sales (SEKm) 2,169 2,239 2,099 2,147 2,085 1,994 1,878 1,774 1,636 1,616 1,635 1,584 1,597 1,506 1,524 1,385 1,460 1,244 1,264 1,093 552 636 411 448 435 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 '23 '23 '24 '24 '24
Slide 16: Net sales bridge Q3 2023 to Q3 2024
Higher prices Pulp, Higher volumes Containerboard and Wood Containerboard and Wood SEK +4% -1% 5,248m 19% SEK SEK -40m SEK 190m 4,302m SEK 796m +22% Net sales Price/Mix Volume Currency Net sales Q3 2023 Q3 2024 16
Slide 17: EBITDA bridge Q3 2023 to Q3 2024
3,000 Higher cost for Higher prices Pulp, wood raw material Containerboard and Wood 2,500 +768 +58 -46 -128 SEK -26 -33 2,010m 2,000 SEK 1,500 1,417m 1,000 EBITDA margin EBITDA margin +42% 32.9% 38.3% 500 0 EBITDA Price/Mix Volume Raw material Energy Currency Other EBITDA Q3 2023 Q3 2024 17
Slide 18: Cash flow
Quarter Jan - Sep SEKm Q3 2024 Q3 2023 2024 2023 EBITDA 2,010 1,417 5,494 5,172 Revaluation of biological assets and other non cash flow items -469 -516 -1,453 -1,465 Operating cash surplus 1,541 901 4,041 3,707 Change in working capital -600 700 -1,330 551 Current capital expenditures -381 -436 -63
Slide 19: Capital employed, net debt and equity
SEKm Sep 30, 2024 Dec 31, 2023 Forest assets 108,488 107,481 Working capital 5,653 4,321 Deferred tax relating to forest assets -21,457 -21,277 Other capital employed 23,811 24,525 Total capital employed 116,495 115,050 Net debt 11,595 10,766 Net debt/EBITDA 1.6x 1.6x Equity 104,899 104,284 Net debt
Slide 20: Summary
Summary Ulf Larsson, CEO WSCA
Slide 21: Increased prices and higher delivery volumes
Increased prices and higher delivery volumes Higher harvesting of own forest, mitigated increasing wood raw material costs EBITDA increased 42% vs Q3 2023 Sales increased 22% vs Q3 2023 • Price/mix +19%, volume +4%, currency -1% 21
Slide 22: Q&A
Slide 23: Forward-looking statements
This presentation may contain forward-looking statements. The actual outcome could be materially different. Such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read SCA’s most recent annual report for a be
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