Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Q2 2007 Earnings Presentation
17 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, July 2007
Slide 1: SCA Interim Report 1 January–30 June 2007
SCA Interim Report 1 January–30 June 2007 Jan Åström, CEO Lennart Persson, CFO
Slide 2: Delivering according to strategy
Delivering according to strategy pm ent Strong organic growth lo deve vo l ume Str ong Acquisitions and strategic investments nd e tr e s i t iv e p r ic Po Increased share of value-added products l c osts and services a teria raw m er H ig h
Slide 3: Strong earnings improvement
Strong earnings improvement Strong development in H1 2007 vs. H1 2006 Pre-tax profit up 18% to SEK 3,876m Net earnings up 21% to SEK 3,004m Continued upward trend Q2 2007 vs. Q1 2007 Strong volumes, positive price movements and lower energy costs Increased costs for raw materials
Slide 4: Group – Quarterly Development
Group – Quarterly Development SEKm EBITDA (%) 30,000 14.9% 15.2% 16% 14.4% 14.7% 14.8% 14% 25,000 12% 20,000 10% 15,000 8% 25,615 26,128 25,294 25,095 25,650 6% 10,000 4% 5,000 2% 0 0% Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Sales EBITDA margin
Slide 5: SCA Group Sales and EBIT H1 2007 vs H1 2006
SCA Group Sales and EBIT H1 2007 compared with H1 2006 les : +2% SEKm Sales Sa 51,743 52,000 +366 +179 Price/mix: +4.5% 50,694 +36 +180 Volume: +1.5% +288 50,000 Currency: -2% 48,000 Sales H1 Personal Care Tissue Packaging Forest Other Sales H1 % : +16 2006 Products 2007 E B I T SEKm EBIT -36 4,730
Slide 6: SCA Group Sales and EBIT Q2 vs Q1 2007
SCA Group Sales and EBIT Q2 2007 compared with Q1 2007 les : +2% SEKm Sales Sa 27,000 +335 -342 26,128 25,615 +223 +254 +43 Volume: +2% Price/mix: +1% 25,000 23,000 Sales Q1 Personal Tissue Packaging Forest Other Sales Q2 2007 Care Products 2007 B I T: +7% E SEKm EBIT -67 +87 2,448 +74 -7 2,400 2,28
Slide 7: Cash-flow Analysis
Cash-flow Analysis H1 2007 compared with H1 2006 Operating cash surplus SEK 7,423m (6,878) Higher cash flow from operations Cash flow from current operations SEK 919m (772) Higher net working capital Cash flow before dividend SEK 2,827m (325) Divestment of the packaging operations in North America D
Slide 8: Personal Care – Quarterly Development
Personal Care – Quarterly Development SEKm EBITDA (%) Q2/Q1 comments: 17.6% 17.7% 17.5% 17.8% 6,000 17.9% 18% Strong volumes, 16% especially within the retail segment 5,000 14% Increased sales of 12% higher value 10% products in 4,000 5,554 institutional 5,249 5,246 5,429 5,331 8% incontinence 6% 3,
Slide 9: Personal Care
Personal Care Incontinence care Favourable launch of “Feel Dry” and recovered sales in institutional incontinence Baby diapers Continued strong development for branded products, particularly high growth in Russia and Colombia Good contribution from new pant diapers for retailers’ brands in Europe Fe
Slide 10: Tissue – Quarterly Development
Tissue – Quarterly Development SEKm EBITDA (%) Q2/Q1 comments: 9,000 14% Strong sales growth 11.9% 12.2% 12.0% within AFH in North 11.6% 11.2% 12% America 10% Further 7,000 improvements in the 8% European consumer tissue operations 8,060 6% 7,787 7,743 7,844 7,725 5,000 Increased costs for 4% raw ma
Slide 11: Tissue
Tissue Consumer tissue Strategic shift towards a product portfolio with higher value in Europe AFH tissue Americas Strong growth and increased share of value/proprietary products • New customer contracts • Completion of Tork launch in October AFH tissue Europe Positive volume and price development T
Slide 12: Packaging – Quarterly Development
Packaging – Quarterly Development SEKm EBITDA (%) Q2/Q1 comments: 12.1% 12.4% 12.2% 11.9% 12% Strong development 10.8% 9,000 with increased 10% prices Higher costs for 8% 7,000 recovered paper 8,571 6% Lower energy costs 8,231 8,288 8,445 8,229 4% Divestiture of North 5,000 American packaging operat
Slide 13: Packaging
Packaging Containerboard Good market balance Increases in raw material costs Corrugated packaging Price increases under implementation, further improvements expected in H2 Continued market growth
Slide 14: Forest Products – Quarterly Development
Forest Products – Quarterly Development SEKm 23.0% EBITDA (%) 5,000 22.5% 22.4% Q2/Q1 comments: 21.8% 21.0% Strong volumes and 20% higher prices in pulp, 4,000 timber and solid-wood products 15% Increased volumes in 3,000 4,726 Publication papers 4,480 4,454 4,339 4,472 10% but disappointing price d
Slide 15: Forest Products
Forest Products Publication papers Competitive European market for magazine papers Higher costs for recovered paper and wood Pulp, timber and solid-wood products Continued favourable market for solid-wood products Strong pulp markets
Slide 16: Summary
Summary Delivering according to strategy Strong organic growth, acquisitions and strategic investments Increased share of value-added products and services Stable financial outlook High raw material costs and uncertain energy markets Strong volumes, price increases and product mix improvements
Slide 17: essentials for everyday life
essentials for everyday life”