Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Q3 2007 Earnings Presentation
19 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, October 2007
Slide 1: SCA Interim Report 1 January–30 September 2007
SCA Interim Report 1 January–30 September 2007 Lennart Persson, Acting President and CEO, CFO
Slide 2: Delivering according to strategy
Delivering according to strategy First nine months 2007 p ment Strong organic growth e de v el o volu m o s it ive P Acquisitions and strategic investments tre nd p rice Increased share of value- P ositi ve added products and services l c ost s a teri a r aw m er H i gh
Slide 3: Strong earnings improvement
Strong earnings improvement Strong earnings growth Jan-Sep 07 vs. 06 Pre-tax profit up 17% to SEK 5,895m Net earnings up 25% to SEK 5,023m Continued strong performance Q3 2007 vs. Q2 2007 Strong volumes, positive price/mix Increased costs for raw materials
Slide 4: Group – Quarterly Development
Group – Quarterly Development SEKm EBITDA (%) 30,000 14.7% 14.9% 14.8% 15.2% 15.4% 16% 14% 25,000 12% 20,000 10% 15,000 8% 25,095 25,650 25,615 26,128 26,362 6% 10,000 4% 5,000 2% 0 0% Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Sales EBITDA margin
Slide 5: SCA Group Sales and EBIT 9M 2007
SCA Group Sales and EBIT 9M 2007 compared with 9M 2006 s: +3% SEKm Sales Sale 80,000 +171 78,105 78,000 +770 Price/mix: +5% +497 +326 75,789 +552 Volume: +2% 76,000 74,000 Divestment: -2% Currency: -2% 72,000 70,000 Sales 9M Personal Care Tissue Packaging Forest Other Sales 9M % : +16 2006 P
Slide 6: SCA Group Sales and EBIT Q3 2007
SCA Group Sales and EBIT Q3 2007 compared with Q2 2007 s: +1% SEKm Sales Sale 27,000 +144 +205 +17 -88 26,362 -44 26,128 Volume: 0% Price/mix: +1% 25,000 23,000 Sales Q2 Personal Tissue Packaging Forest Other Sales Q3 2007 Care Products 2007 : +3% EBIT EBIT SEKm Price/mix: +10% +26 +16 +1 2,52
Slide 7: Cash-flow Analysis
Cash-flow Analysis 9M 2007 compared with 9M 2006 Operating cash surplus SEK 11,325m (10,387) Cash flow from current operations SEK 3,105m (1,549) Lower cash out for restructuring Cash flow before dividend SEK 4,415m (778) Divestment of the packaging operations in North America Debt/equit
Slide 8: Personal Care – Quarterly Development
Personal Care – Quarterly Development SEKm EBITDA (%) Q3/Q2 comments: 6,000 17.6% 17.7% 17.5% 17.8% 18.1% 18% Continued strong 16% sales 5,000 14% Lower sales for Incontinence care in 12% healthcare segment 10% 4,000 5,246 5,429 5,331 5,554 5,510 8% 6% 3,000 4% 2% 2,000 0% Q3 2006 Q4 2006 Q1 200
Slide 9: Personal Care
Personal Care Incontinence care Sales record for incontinence products sold through the retail channel Baby diapers Introduction of new stretch Libero baby diaper Production adjustments for new product upgrades Feminine care Good growth of branded feminine care products in Russia Joi
Slide 10: Tissue – Quarterly Development
Tissue – Quarterly Development SEKm EBITDA (%) Q3/Q2 comments: 9,000 14% Continued 12.2% 11.6% 11.2% 12.0% 12.5% improvement of 12% customer offering 10% Strong sales growth 7,000 within AFH in North 8% America 6% 7,743 7,844 7,725 8,060 8,204 Improved customer 5,000 and product mix 4% Incre
Slide 11: Tissue
Tissue Consumer tissue Acquisition of P&G’s European operations approved by EU Zewa leading brand in Romania AFH tissue Americas Strong sales growth due to improved volumes and prices Good demand from restaurants and hotels AFH tissue Europe Improved customer and product mix
Slide 12: Packaging – Quarterly Development
Packaging – Quarterly Development SEKm EBITDA (%) Q3/Q2 comments: 14% 11.9% 12.1% 12.4% 12.2% 12.4% Strong sales 9,000 12% development in a seasonally weak 10% quarter 7,000 8% Strong demand in Germany 8,288 8,445 8,571 8,229 8,434 6% Continued price increases 5,000 4% Higher costs for 2% wo
Slide 13: Packaging
Packaging Containerboard Good market balance Higher raw material costs Price increase of EUR 40/ton for testliner effective in October Corrugated packaging Need for further price increases Good performance in consumer packaging
Slide 14: Forest Products – Quarterly Development
Forest Products – Quarterly Development SEKm EBITDA (%) 5,000 Q3/Q2 comments: 21.0% 22.5% 22.4% 23.0% 22.8% Higher sales related 20% to LWC and SC paper 4,000 Strong performance 15% in the solid-wood operations 3,000 4,339 4,480 4,472 4,726 4,743 10% Increased raw material costs 2,000 5% 1,000
Slide 15: Forest Products
Forest Products Publication papers Improved market situation for magazine papers Higher costs for wood Investment of SEK 800m in production of mechanical pulp Pulp, timber and solid-wood products Continued good consumption for solid-wood products, but very high production in Europe Str
Slide 16: Wind power venture
Wind power venture SCA and Statkraft have formed jointly owned company Production of 2,800 GWh electricity per year Investment of SEK 16 billion Study the feasibility of expanding hydropower 10-year electricity contract for annual supply of 500 GWh
Slide 17: Outlook Q4 2007
Outlook Q4 2007 Market trends Q4 2007 Higher prices and favorable demand in main segments Higher raw material and energy costs SCA business Q4 2007 Good demand P&G acquisition • Synergies/restructuring Revaluation of forest assets
Slide 18: Summary
Summary Solid Q3 performance Delivering on the strategy
Slide 19: essentials
essentials for everyday life”