Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Non-Deal Roadshow (June 2017)
21 slides from Svenska Cellulosa Ab Sca Class A's roadshow presentation, June 2017
Slide 1: A leading industrial ecosystem, driven by the force of the forest
A leading industrial ecosystem, driven by the force of the forest Roadshow presentation June, 2017 1
Slide 2: Roadshow presentation
Roadshow presentation 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 o
Slide 3: Key rationale to the split
Key rationale to the split Increased strategic focus Well-positioned stand-alone company Increased shareholder value in the long term Timetable June 9, 2017. Last day of trading in SCA shares with the right to receive distribution of shares in Essity. June 12, 2017. First day of trading in SCA share
Slide 4: Strong and integrated value chain
Strong and integrated value chain Europe’s largest private forest owner World class wood operation 15.4 SEKbn sales 3.3 SEKbn EBITDA Erecting world’s largest softwood pulp line 3.0 m m3 fo net growth Leading Kraftliner producer 2.6 m ha forestland Maximizing energy potential ~4,000 FTEs Note: Financ
Slide 5: Global trends favoring fiber based renewable materials
Global trends favoring fiber based renewable materials Increased demand for renewable materials E-commerce Growing demand for virgin fiber More packaged goods Eco-awareness 5
Slide 6: Strong integrated value chain secures long term profitability
Bollsta Bionorr Strong integrated value chain sawmill pellet mill secures long term profitability Wind power Bogrundet tree nursery Östrand pulp mill District heating Tunadal sawmill R&D Ortviken Centre paper mill Tunadal harbor 6
Slide 7: Production facilities close to the forest
Production facilities close to the forest In addition, SCA has two tree nurseries in Sweden, three industrial facilities in the UK and two industrial facilities in France for further processing of solid-wood products 7
Slide 8: The forest is our source for value creation
The forest is our source for value creation Harvesting Growth Land value 8
Slide 9: Increased felling rate driven by a high share of young forest in a strong growth phase
Increased felling rate driven by a high share of young forest in a strong growth phase • Current net growth of approximately Standing volume Planned felling million m3fo million m3sub 3m m3fo per year +40% • Standing volume has increased by 250 230 7 nearly 50% over the last 50 years ~6 6 • Current
Slide 10: Highly efficient wood operations with profitable growth for more than 20 years
Highly efficient wood operations with profitable growth for more than 20 years Wood sales (SEKbn) From 11 to 5 highly automated and efficient sawmills +10% p.a. 5.4 SEK ~2.0bn investment since 2.2m m3 2006 3.9 1.8m m3 11 mills 5 mills 0.8 1996 2006 2016 2006 2016 Wholesalers Wood Industry Building M
Slide 11: Östrand – world class pulp operation
Östrand – world class pulp operation to meet increasing demand Meeting long-term growth in tissue and white packaging World-class competitiveness Cost efficient supply of raw materials 7.8 SEKbn investment Increases value of the forest 11
Slide 12: Paper strategies
Paper strategies Kraftliner Publication paper • Build on market leading position and favorable growth trends • Operational excellence & cash • Leverage investments made to further focus product mix on flow focus high value products • Upgrade product portfolio and • Optionality for further capacity i
Slide 13: Energy, biofuel and green chemicals offer additional growth opportunities
Energy, biofuel and green chemicals offer additional growth opportunities One of Europe’s largest supplier of forest based biofuels with 9 TWh produced in 2016 320 wind turbines on SCA’s forest land with an average annual production of 2.5 TWh Future growth opportunities within liquid biofuels and g
Slide 14: Paving the way for a renewable future
Paving the way for a renewable future Responsible forest management Our forests will be as rich in timber, biodiversity and nature experience as today Net forest growth binds ~4m tons CO2 annually Mitigating climate change Carbon dioxide emissions from fossil fuels reduced by 60% over the past 5 yea
Slide 15: Strong and stable performance
Strong and stable performance Net sales (SEKm) EBITDA (SEKm) and EBITDA margin 1) 18,000 4,000 5% -5% 16,000 3,500 3,683 3,741 16,152 15,412 15,373 14,000 3,269 3,000 12,000 2,500 10,000 2,000 8,000 24% 23% 1,500 21% 21% 5% 20% 6,000 1,000 4,000 3,793 3,969 813 807 2,000 500 0 0 2014 2015 2016 Q1 20
Slide 16: Contribution by segment
Contribution by segment Forest Wood Pulp Paper Net sales (SEKm) 8,226 8,548 7,744 5,187 5,108 4,978 5,114 5,315 5,441 2,518 2,760 2,492 1,998 2,046 1,187 1,312 1,264 1,364 600 641 2014 2015 2016 Q1 Q1 2014 2015 2016 Q1 Q1 2014 2015 2016 Q1 Q1 2014 2015 2016 Q1 Q1 2016 2017 2016 2017 2016 2017 2016 2
Slide 17: Well invested asset base with low maintenance capex
Well invested asset base with low maintenance capex SEKm 3,500 3,000 • Increased capex in 2015 and 2016 2,500 primarily relates to the Östrand investment 2,000 2,231 • Stable maintenance capex 1,500 946 1,000 184 500 876 869 959 515 388 73 126 0 2014 2015 2016 2016 Q1 2017 Q1 Current capital expendi
Slide 18: Östrand investment on track
Östrand investment on track Investments NBSK capacity (tonnes/year) • Planned start-up in June 2018 +109% • SEK 3.1bn invested as per Q1 2017, out of SEK 7.8bn in total 900,000 Extended stop in 2018 (preparing for start-up) 430,000 • In 2018, lost production volumes by extended stop compensated by h
Slide 19: Strong operating cash flow
Strong operating cash flow SEKbn Operating cash flow Forest revaluation (IAS 41) 0.5 2.5 0.5 Adj. operating profit excl. forest revaluation 0.7 2.1 1.9 1.9 1.5 1.5 0.8 0.3 0.2 0.3 0.3 0.1 2014 2015 2016 Q1 2016 Q1 2017 • Track record of delivering operating cash flow ahead of operating profit exclud
Slide 20: Balance sheet structure
Balance sheet structure SEKm Dec 31, 2016 March 31, 2017 Forest assets (gross value before deferred taxes) 30,770 31,001 Deferred tax relating to Forest assets -6,769 -6,820 Forest assets, net of deferred tax 24,001 24,181 Working capital 2,740 3,031 Other capital employed 13,386 13,601 Total capita
Slide 21: A leading industrial ecosystem, driven by the force of the forest
A leading industrial ecosystem, driven by the force of the forest Rising demand for renewable fiber-based products Efficient integrated value chain close to the forest Well-invested asset base positioned to capture growth opportunities People behind the results Strong and stable cash flow 21