Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A

Svenska Cellulosa AB SCA Class A — SCA — Q3 2005 Earnings Presentation

19 slides from Svenska Cellulosa AB SCA Class A's earnings presentation, October 2005

  1. Slide 1: SCA Interim Report 1 January–30 September 2005

    SCA Interim Report 1 January–30 September 2005 Jan Åström President and CEO 1

  2. Slide 2: Group – Quarterly Development

    Group – Quarterly Development* SEK M 35,000 18% EBITDA target 16.3% 18% 15.0% 14.3% 16% 30,000 14.1% 13.7% 14% 25,000 12% 20,000 10% Sales 15,000 8% 24,740 EBITDA 22,812 23,128 22,518 23,986 6% 10,000 margin 4% 5,000 2% 0 0% Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 * Excluding items affecting compara

  3. Slide 3: Financial summary (including items affecting comparability)

    Financial summary Including items affecting comparability Q3 2005 Change 9M 2005 Change Q3/Q2 (%) Y05/Y04 (%) Net sales, SEK M 24,740 +3% 71,244 +7% Earnings after financial items, SEK M -3,396 n/a -1,141 n/a Earnings per share, SEK -10.31 n/a -3.22 n/a 3

  4. Slide 4: Financial summary (excluding items affecting comparability)

    Financial summary Excluding items affecting comparability* Q3 2005 Change 9M 2005 Change Q3/Q2 (%) Y05/Y04 (%) Net sales, SEK M 24,740 +3% 71,244 +7% Earnings after financial items, SEK M 1,544 +13% 4,224 -24% Earnings per share, SEK 5.40 +26% 13.83 -20% * Earnings in the third quarter were affected

  5. Slide 5: SCA Group Sales and EBIT

    SCA Group Sales and EBIT* Q3 compared with Q2 SEK M Sales 26,000 +299 +257 -130 -58 24,740 23,986 +386 Sales +3%, whereof 24,000 currency effects +2% 22,000 20,000 Sales Q2 Tissue Personal Care Packaging Forest Other/intra Sales Q3 Products group deliveries EBIT* SEK M 2,000 +100 +8 1,937 +84 -11 EB

  6. Slide 6: Cash Flow Analysis

    Cash Flow Analysis 9M 2005 compared with 9M 2004 ƒ Operating cash flow SEK 5.1 (6.3) bn Š Lower operating cash surplus Š Improved change in working capital Š Current capex in line with previous year Š Cash outflow related to structural costs ƒ Cash flow before dividend SEK +0.9 (-5.7) bn Š Lower tax

  7. Slide 7: Commitment to cost reductions

    Commitment to cost reductions Program announced Q4 2004 / Q1 2005 ƒ Program delivering according to plan Š Savings of about SEK 400 M realized YTD 2005 Program announced in August 2005 ƒ Announced restructuring measures: Š Argovia (testliner) will be closed in November 2005 Š Djursland (testliner) w

  8. Slide 8: Development by Segment

    Development by Segment SCA

  9. Slide 9: Tissue

    Hygiene Products Tissue ƒ Demand ƒ Fair development in Europe ƒ Strong volumes in North America ƒ Prices ƒ Consumer tissue prices stable in Europe since April ƒ Price initiatives taken in Europe ƒ Shelf price increase in Germany for the first time in four years ƒ New price increase within AFH tissue

  10. Slide 10: Personal Care

    Hygiene Products Personal Care ƒ Continuous strong growth within incontinence products ƒ Strong growth within retail ƒ New products launched ƒ Favorable volume development within baby diapers ƒ Successful relaunch of Libero “Up&Go” ƒ Strong development in Eastern Europe ƒ Tough competition remains w

  11. Slide 11: Hygiene Products – Sales and EBIT

    Hygiene Products – Sales and EBIT Q3 compared with Q2 Sales Tissue: SEK M ƒ 5% sales increase Q3/Q2 15,000 12,258 12,943 ƒ 9% EBIT increase Q3/Q2, whereof Personal Care 10,000 3% related to currency 5,000 Tissue ƒ Cost savings leading to improved margins 0 Q2 2005 Q3 2005 EBIT Personal Care: SEK M 1

  12. Slide 12: Hygiene Products - Development

    Hygiene Products - Development Quarterly data SEK M EBITDA 18% target 18% 16.0% 15,000 14.4% 14.6% 16% 14.1% 13.9% 14% 12% 10,000 10% 8% 12,258 12,943 11,761 11,904 11,606 6% 5,000 4% 2% 0 0% Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Sales EBITDA margin 12

  13. Slide 13: Packaging

    Packaging ƒ Seasonality in corrugated board ƒ Stable prices during the third quarter ƒ European strategic accounts growth: 8% (Y/Y) ƒ Specialty/protective packaging ƒ Increased costs for oil based raw material ƒ Favorable volume development in China ƒ Competitive pressure in containerboard remains ƒ

  14. Slide 14: Packaging – Sales and EBIT

    Packaging – Sales and EBIT Q3 compared with Q2 Sales Packaging: SEK M 8,351 ƒ 3% revenue increase Q3/Q2, 10,000 8,094 8,000 whereof 2% currency effects 6,000 ƒ 2% EBIT decrease Q3/Q2 Packaging 4,000 2,000 ƒ Cost savings partly offsetting 0 declining containerboard prices Q2 2005 Q3 2005 EBIT SEK M 5

  15. Slide 15: Packaging - Development

    Packaging - Development Quarterly data SEK M EBITDA 16% 14.8% target 16% 12,000 13.3% 14% 11.8% 10,000 11.4% 10.8% 12% 8,000 10% 8% 6,000 6% 4,000 8,351 4% 7,928 7,804 7,642 8,094 2,000 2% 0 0% Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Sales EBITDA margin 15

  16. Slide 16: Forest Products

    Forest Products ƒ Improved performance within publication papers ƒ Seasonally favorable volumes ƒ Strong order books, especially for LWC paper ƒ Improved advertising market in Germany ƒ Pulp, timber and solid-wood products ƒ Stable prices within softwood pulp ƒ Increased prices on pine and high-qual

  17. Slide 17: Forest Products – Sales and EBIT

    Forest Products – Sales and EBIT Q3 compared with Q2 2005 Publication papers: SEK M Sales ƒ 4% sales increase Q3/Q2 5,000 4,116 3,986 4,000 Pulp, timber and ƒ 82% EBIT increase Q3/Q2 3,000 solid-wood products (maintenance stop in Q2) 2,000 Publication papers 1,000 ƒ High capacity utilization 0 Q2 20

  18. Slide 18: Forest Products - Development

    Forest Products - Development Quarterly data SEK M EBITDA 5,000 25% target 25% 21.6% 21.0% 21.4% 19.6% 18.4% 4,000 20% 3,000 15% 2,000 4,116 3,986 10% 3,586 3,814 3,762 1,000 5% 0 0% Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Sales EBITDA margin 18

  19. Slide 19: essentials for everyday life

    essentials for everyday life™

SCA — Q3 2005 Earnings Presentation on 6ix