Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A

Svenska Cellulosa Ab Sca Class A — SCA — FY2006 Earnings Presentation

18 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, 2007

  1. Slide 1: SCA Year-end report 2006

    SCA Year-end report 2006 Jan Åström, CEO Lennart Persson, CFO 1

  2. Slide 2: Highlights

    Highlights ƒ Strong development FY06 vs. FY05 Š Good organic growth +5% Š Pre-tax profit up 18%(1) to SEK 6,833m Š Net earnings up 23%(1) to SEK 5,467m ƒ Continued upward trend in Q4 Š Positive volume and price development Š Higher energy and raw material costs 1) Excluding items affecting comparabi

  3. Slide 3: Financial Summary

    Financial Summary Q4 2006 Change FY 2006 Change Q4/Q3 (%) Y06/Y05(1) (%) Net sales, SEKm 25,650 +2% 101,439 +5% Earnings after financial items, SEKm 1,803 +3% 6,833 +18% Earnings per share, SEK 6:16 -5% 23:25 +23% Dividend per share, SEK 12:00(2) +9% Split 3:1(2) 1) Excluding items affecting compara

  4. Slide 4: Group – Quarterly Development

    Group – Quarterly Development SEKm EBITDA (%) 30,000 14.9% 16% 14.3% 14.4% 14.7% 13.9% 14% 25,000 12% 20,000 10% 15,000 25,650 8% 25,141 25,400 25,294 25,095 6% 10,000 4% 5,000 2% 0 0% Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Sales EBITDA margin 4

  5. Slide 5: SCA Group Sales and EBIT FY 2006

    SCA Group Sales and EBIT FY 2006 compared with FY 2005(1) SEKm Sales 105 000 +1,716 -212 101,439 ƒ Volume: +4% 100 000 +1,921 +635 +994 ƒ Price: +2% 96,385 95 000 90 000 Sales FY Personal Tissue Packaging Forest Other Sales FY 2005 Care Products 2006 EBIT SEKm 9,000 +88 8,505 +589 8,000 +325 -87 +29

  6. Slide 6: SCA Group Sales and EBIT Q4 2006

    SCA Group Sales and EBIT Q4 2006 compared with Q3 2006 SEKm Sales 26,000 -27 +141 25,650 +101 +157 25,095 +183 25,000 ƒ Volume: +2% ƒ Price: +1% 24,000 ƒ Currency: -1% 23,000 Sales Q3 Personal Care Tissue Packaging Forest Other Sales Q4 products SEKm EBIT +85 -10 2,261 ƒ Price/mix: +10% 2,176 +45 -7

  7. Slide 7: Cash-Flow Analysis

    Cash-Flow Analysis FY 2006 compared with FY 2005 ƒ Operating cash surplus SEK 14,123 (13,113) ƒ Operating cash flow SEK 6,304m (7,471) Š Higher current capex Š Volume growth and higher prices resulted in higher working capital Š Increased cash outflow related to structural costs ƒ Cash flow before d

  8. Slide 8: Personal Care – Quarterly Development

    Personal Care – Quarterly Development SEKm EBITDA (%) 19.1% Q4/Q3 comments: 17.8% 17.9% 17.6% 17.7% 18% ƒ Very strong volume 16% development 5,000 14% ƒ Maintained and increased market 12% shares 4,000 10% 5,348 5,429 5,136 5,249 5,246 8% 6% 3,000 4% 2% 2,000 0% Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 20

  9. Slide 9: Personal Care

    Personal Care ƒ Incontinence care Š Continued strong development within the institutional segment Š Strengthened positions of TENA in the retail segment Š Major product and service upgrades within Incontinence care for institutions in 2007 ƒ Baby diapers Š Increased market shares for Libero Š Good g

  10. Slide 10: Tissue – Quarterly Development

    Tissue – Quarterly Development SEKm EBITDA (%) Q4/Q3 comments: 9,000 14% ƒ Improved prices and 11.6% 11.9% 12.2% 11.6% volumes in Europe 10.7% 12% ƒ Higher energy and 10% raw material costs 7,000 8% ƒ Seasonal weak volumes in North 6% 8,109 7,962 7,787 7,743 7,844 America 5,000 4% 2% 3,000 0% Q4 200

  11. Slide 11: Tissue

    Tissue ƒ Consumer tissue Š Further price increases under implementation Š Focus on strengthening brand positions Š Strengthening the value chain in Russia ƒ AFH tissue Š Stable volume and earnings development in Europe Š Good progress in re-branding all products towards the global Tork brand 11

  12. Slide 12: Packaging – Quarterly Development

    Packaging – Quarterly Development SEKm EBITDA (%) Q4/Q3 comments: 12,1% 11,9% 12% ƒ Average prices on 10,8% 9 000 10,2% corrugated +2% 10,2% 10% ƒ High costs in connection with 8% 7 000 maintenance stops 6% 8 272 8 389 8 231 8 288 8 445 4% 5 000 2% 3 000 0% Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Sa

  13. Slide 13: Packaging

    Packaging ƒ Packaging solutions Europe Š Realized price increases from year-end 2005 to year-end 2006: ~8%(1) Š Carry over of latest price increase to Q1 Š Good sales development for total packaging solutions ƒ Containerboard Š Continued tight market situation Š Potential for further price increases

  14. Slide 14: Forest Products – Quarterly Development

    Forest Products – Quarterly Development SEKm EBITDA (%) 5,000 22.4% 22.5% Q4/Q3 comments: 21.8% 21.0% 21.0% ƒ High mill efficiency 20% 4,000 ƒ Strong volumes and increased prices 15% within solid-wood products 3,000 4,378 4,454 4,339 4,480 10% ƒ Lower energy costs 4,071 2,000 5% 1,000 0% Q4 2005 Q1

  15. Slide 15: Forest Products

    Forest Products ƒ Publication papers Š Good cost control Š Price increases for newsprint in 2007 Š Competitive European market for SC and LWC paper ƒ Pulp, timber and solid-wood products Š Very tight market for solid-wood products Š Successful start-up of new recovery boiler in Östrand pulp mill Š H

  16. Slide 16: Outlook

    Outlook ƒ Continued good price development in Packaging ƒ Continued high raw material costs in Tissue but gradually higher prices in European consumer tissue ƒ Stable markets for personal care products ƒ Competitive markets for magazine papers ƒ Higher raw material costs 16

  17. Slide 17: Summary 2006

    Summary 2006 ƒ Improved main markets ƒ Continued focus on value added products ƒ Strong growth for the SCA group, + 5% ƒ Great progress in efficiency enhancement program ƒ + 18% in pre-tax profit 17

  18. Slide 18: essentials

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SCA — FY2006 Earnings Presentation on 6ix