20 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Oct 31, 2017
Slide 1: Interim report presentation Q3 2017
Interim report presentation Q3 2017 October 31, 2017
Slide 2: Ulf Larsson, CEO
Ulf Larsson, CEO
Slide 3: Summary Q3 2017
Summary Q3 2017 Strong market with increasing prices Sales growth of 12% vs Q3 2016 • Volumes +11%, price/mix +3%, currency -2% EBITDA 1) up 25% vs Q3 2016, influenced by: • Higher sales price and volume growth • Negative currency effects • Limited effect from maintenance stops, SEK 16m (43) • Conti
Slide 4: Forest Q3 2017 vs. Q3 2016
Forest Q3 2017 vs. Q3 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) 0% 7% Balanced timber supply in SCA’s area 25.1% 1,261 1,261 316 23.4% 295 Stable raw material market without any notable price increases in SCA’s area Sales remained flat • Price and volume in-line with LYQ Q3 2016 Q3 201
Slide 5: Wood Q3 2017 vs. Q3 2016
Wood Q3 2017 vs. Q3 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) 19% 31% Strong underlying market with continued price 11.9% increases during Q3 187 1,567 10.8% 1,320 143 Sales up 19% • Higher volumes and prices • Negative currency effects EBITDA 1) up 31% Q3 2016 Q3 2017 Q3 2016 Q3 2017
Slide 6: Pulp Q3 2017 vs. Q3 2016
Pulp Q3 2017 vs. Q3 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) -4% -1% Generally good development in the pulp market 668 Negative impact on result from Östrand project 644 160 158 24.0% 24.5% Sales down 4% • Lower volumes and negative currency effects somewhat compensated by higher pric
Slide 7: Paper Q3 2017 vs. Q3 2016
Paper Q3 2017 vs. Q3 2016 Net sales (SEKm) EBITDA (SEKm) 1) EBITDA margin 1) 13% 51% Strong Kraftliner market with increasing prices 439 1,859 2,096 20.9% Continued challenging publication paper market, 290 15.6% especially for coated Sales up 13% • Higher Kraftliner prices • Increased publication p
Slide 8: Toby Lawton, CFO
Toby Lawton, CFO
Slide 9: P&L Q3 2017 vs. Q3 2016
P&L Q3 2017 vs. Q3 2016 SEKm Q3 2017 Q3 2016 Change Net sales 4,231 3,769 12% EBITDA 1) 1,049 841 25% EBITDA 1) margin 24.8% 22.3% 2.5 p.p. EBIT 1) 776 577 34% EBIT 1) margin 18.3% 15.3% 3.0 p.p. Items affecting comparability - 4 -4 EBIT 776 581 34% Financial items -11 -19 Profit before tax 765 562
Slide 10: Contribution by segment and quarter
Contribution by segment and quarter Forest Wood Pulp Paper Net sales (SEKm) 1,998 1,889 1,998 2,046 2,0722,096 1,859 1,6371,567 1,496 1,312 1,2101,261 1,320 1,361 1,364 1,187 1,234 1,261 1,296 1,264 600 668 668 641 585 644 556 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q
Slide 11: Net sales Q3 2017 vs. Q3 2016
Net sales Q3 2017 vs. Q3 2016 Positive for Wood and Positive for Wood, Pulp and Publication paper, flat for Kraftliner Kraftliner, negative for Pulp SEK 11% -2% 4,231m SEK 3% 3,769m + 12% Net sales Price/Mix Volume Currency Net sales Q3 2016 Q3 2017 11
Slide 12: EBITDA Q3 2017 vs. Q3 2016
EBITDA 1) Q3 2017 vs. Q3 2016 Higher price for Wood, Pulp and Kraftliner SEK SEK SEK SEK SEK +3m +6m -44m SEK SEK +31m +224m -12m 1,049m Improved material yield SEK and efficiency offset by higher prices 841m + 25% EBITDA margin EBITDA margin 22.3% 24.8% EBITDA Price/Mix Volume Raw material Energy C
Slide 13: Cash flow Q3 2017 vs. Q3 2016
Cash flow Q3 2017 vs. Q3 2016 SEKm Jul-Sep Jul-Sep Jan-Sep Jan-Sep 2017 2016 2017 2016 Operating cash surplus 867 673 2,167 1,870 Change in working capital -280 -224 -239 206 Current capital expenditures, net -129 -418 -418 -687 Other operating cash flow 67 -24 -79 -42 Operating cash flow 525 7 1,43
Slide 14: Östrand project – market growth and capex
Östrand project – market growth and capex Strong demand for Bleached Softwood Kraft (BSK) BSK market growth (1) • Market growth of 1.5-2% per year during the last years 30 • Growth expected to continue, driven by global demand for virgin fiber • On-going pulp projects needed to supply the growing de
Slide 15: Östrand project – ramp-up and cost competitiveness
Östrand project – ramp-up and cost competitiveness Ramp-up period Attractive position on global cost curve • Planned start-up in June 2018 Cost competitiveness (1) • Normal ramp-up period of 12–18 months from start-up 1st Quartile • 2018 – capacity expected to be in-line with 2017 (best) Strengthene
Slide 16: Balance sheet structure
Balance sheet structure SEKm Sep 30, 2017 Jun 30, 2017 Dec 31, 2016 Forest assets (gross value before deferred taxes) 31,285 31,119 30,770 Deferred tax relating to Forest assets -6,883 -6,846 -6,769 Forest assets, net of deferred tax 24,402 24,273 24,001 Working capital 2,901 2,673 2,740 Working cap
Slide 17: Summary Q3 2017
Summary Q3 2017 Strong market with increasing prices Sales growth of 12% vs Q3 2016 EBITDA 1) up 25% vs Q3 2016 Östrand project progressing according to plan Focus on costs, efficiency and delivering the Östrand project Note: 1) Adjusted EBITDA. 17
Slide 18: Capital Markets Day
Capital Markets Day Forest focused Capital Markets Day May 22, 2018 in Sundsvall, Sweden
Slide 19: Q&A
Q&A
Slide 20: A leading industrial ecosystem, driven by the force of the forest
A leading industrial ecosystem, driven by the force of the forest 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 recen