26 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Oct 29, 2021
Slide 1: Interim Report Presentation, October 29, 2021
Interim Report, F resentation Seas sna : a ht % * iat
Slide 2: Ulf Larsson, CEO
Slide 3: Record result
Record result EBITDA up 160%1 vs Q3 2020 + Higher prices on solid wood, pulp and kraftliner + Stable cost base - Negative currency effects - Maintenance stops Net sales up 17% vs Q3 2020 • Price/mix 44%, volume 3% • Exit publication paper -16%, divestment Wood Supply UK -11%, currency -3% Investment
Slide 4: EBITDA and Industrial ROCE
EBITDA (SEKm) Industrial ROCE 1 EBITDA development (SEKm) +160% 2,684 25% 2,684 2,260 53% 47% EBITDA margin Net debt/EBITDA 1,451 1,364 1,359 33% 53% 1.0x 27% 1,055 24% 1,030 21% 1,001 21% 1,032 24% 32% Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 1. LTM 4 Note: EBITDA excluding ef
Slide 5: Forest: stable wood supply to industries
Net sales (SEKm) EBITDA (SEKm) EBITDA margin -3% 0% Stable wood supply to industries 1,500 1,455 515 516 34.3% 35.5% EBITDA in line with Q3 2020 + Higher revaluation of biological assets - Lower harvesting level of own forest Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Price development – Pulpwo
Slide 6: Wood: high global demand, significant price increases
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +37% +515% High level of global demand 2,183 1 180 54.1% Significant price increases 1,592 Sales up 37% 12.1% + Higher prices 192 - Divestment of Wood Supply UK Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Price development – Solid Wood Products EBITDA
Slide 7: Continued strong market
Stock of sawn pine and spruce wood, Sweden and Finland (k m3) Price development sawn pine and spruce, Sweden (index) 5,000 Normalized monthly level 250 Spruce 200 4,000 Pine 150 100 3,000 50 2,000 0 Production of sawn pine and spruce wood, Sweden and Finland (k m3) 3,500 Normalized monthly level 3,0
Slide 8: Pulp: sales up 54%, EBITDA up 381%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +54% +381% Sales up 54% 1,522 659 43.3% + Higher prices 986 + Higher volumes - Negative currency effects 13.9% 137 EBITDA up 381% Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 + Higher prices Price development – NBSK Pulp + Higher volumes 140 - Negative
Slide 9: NBSK pulp price and inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 14.5 1,400 80 70 14.0 1,200 60 13.5 1,000 Average 50 13.0 800 40 30 12.5 600 20 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jan-17 Apr-17 Oct-17 Jan-18 Apr-18 Oct-18 Jan-19 Apr-19 Oct-19 Jan-20 Apr-20 Oct-20 Jan-21 Apr-21 O
Slide 10: Containerboard: planned maintenance stops, sales up 24%
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +24% +46% Planned maintenance stops in Obbola 1,326 360 27.1% and Munksund 23.2% 1,067 247 Sales up 24% + Higher prices - Lower volumes - Negative currency effects Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Price development – Kraftliner EBITDA up 46
Slide 11: Containerboard market development
Containerboard market development Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 900 Unbleached kraftliner price Euwid (LHS) 7.0 122 Kraftliner deliveries Europe (RHS) 119 800 6.5 116 113 700 6.0 110 107 600 5.5 104 101 500 5.0 98 Kraftliner inventories (days of supply) Stro
Slide 12: Toby Lawton, CFO
Slide 13: Quarterly income statement
Quarter SEKm Q3 2021 Q3 2020 Change Net sales 5,077 4,338 17% EBITDA 2,684 1,032 160% EBITDA margin 52.9% 23.8% 29.1 p.p. EBIT 2,298 624 268% EBIT margin 45.3% 14.4% 30.9 p.p. Financial items -24 -28 Profit before tax 2,274 596 282% Tax -453 -121 Profit for the period 1,821 475 283% Earnings per sha
Slide 14: Net sales and EBITDA by segment
Forest Wood Pulp Containerboard/Paper 1 2,242 Net sales (SEKm) 2,183 2,108 1,981 1,876 1,817 1,833 1,770 1,765 1,694 1,659 1,627 1,592 1,592 1,565 1,522 1,500 1,498 1,494 1,455 1,436 1,340 1,376 1,326 1,272 1,288 1,264 1,188 1,166 1,091 986 900 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 15: Net sales development Q3 2020 to Q3 2021
Higher prices in all Higher pulp Divestment Wood product areas volumes Supply UK Exit publication paper +44% +3% -3% -11% 6,000 -16% SEK 5,077m 5,000 SEK 4,338m 4,000 3,000 2,000 +17% 1,000 0 Net sales Price/Mix Volume Currency Acquisitions/ Discontinuations Net sales Q3 2020 divestments Q3 2021 15
Slide 16: EBITDA development Q3 2020 to Q3 2021
+1,929 +21 -75 +30 -104 3,000 -149 SEK 2,684m 2,500 2,000 1,500 SEK 1,032m 1,000 + 160% 500 EBITDA margin EBITDA margin 23.8% 52.9% 0 EBITDA Price/Mix Volume Raw material Energy Currency Other EBITDA Q3 2020 Q3 2021 Note: Excluding effect of one-off items related to discontinuation of publication pa
Slide 17: Operating cash flow
Quarter Jan - Sept SEKm Q3 2021 Q3 2020 2021 2020 EBITDA 2,684 1,032 6,303 3,063 Revaluation of biological assets and other non cash flow items -457 -322 -1,139 -895 Operating cash surplus 2,227 710 5,164 2,168 Change in working capital 61 821 -630 523 Restructuring costs -65 - -336 0 Current capita
Slide 18: Capital employed and net debt
SEKm Sep 30, 2021 Dec 31, 2020 Forest assets 77,493 74,900 Working capital 3,189 2,759 Working capital/Net sales 1 16% 18% Deferred tax relating to forest assets -15,478 -14,977 Other capital employed 18,579 17,152 Total capital employed 83,783 79,834 Net debt 7,631 7,671 Net debt/EBITDA 2 1.0x 1.7x
Slide 19: Operating cash flow and net debt to EBITDA development
Operating Cash Flow and Net Debt to EBITDA development 1,872 5 4 1,106 957 3 1.7x 2 1.4x 475 1.0x 1.5x 1 0 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’21 19
Slide 20: Summary
Summary Ulf Larsson, CEO WSCA
Slide 21: Record result
Record result EBITDA up 160%1 vs Q3 2020 + Higher prices on solid wood, pulp and kraftliner + Stable cost base - Negative currency effects - Maintenance stops Net sales up 17% vs Q3 2020 • Price/mix 44%, volume 3% • Exit publication paper -16%, divestment Wood Supply UK -11%, currency -3% Investment
Slide 22: Q&A
Slide 23: Forward-looking statements
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 of these risks and unce
Slide 24: Appendix
Appendix WSCA
Slide 25: Net sales and EBITDA by segment 2014-LTM
Forest Wood Pulp Containerboard/Paper 1 Net sales (SEKm) 9,643 9,229 8,226 8,548 8,434 7,916 7,744 6,956 6,486 6,333 6,618 6,325 6,296 6,710 5,994 5,541 5,919 5,187 5,108 4,978 5,070 5,455 5,114 5,315 5,441 4,377 4,431 2,518 2,760 2,492 2,542 2,866 2014 2015 2016 2017 2018 2019 2020 LTM 2014 2015 20
Slide 26: Containerboard/Paper and Containerboard financials
Containerboard/Paper 1 Containerboard Net sales (SEKm) Net sales (SEKm) 9,643 9,229 2,242 8,434 7,916 1,876 1,981 1,817 5,521 4,659 4,985 4,608 1,219 1,128 1,195 1,067 Q1 Q2 Q3 Q4 2017 2018 2019 2020 Q1 Q2 Q3 Q4 2017 2018 2019 2020 '20 '20 '20 '20 '20 '20 '20 '20 EBITDA (SEKm) and EBITDA margin 2,46