Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Q2 2006 Earnings Presentation
18 slides from Svenska Cellulosa AB SCA Class A's earnings presentation, July 2006
Slide 1: SCA Interim Report 1 January–30 June 2006
SCA Interim Report 1 January–30 June 2006 Jan Åström President and CEO 1
Slide 2: Highlights
Highlights Pre-tax profit H1 2006: SEK 3,277m (+22%(1) vs. H1 2005) Highest quarterly pre-tax profit in three years: SEK 1,708m (+9% vs. Q1 2006) Good underlying volume development - fewer invoicing days in second quarter vs. first quarter Positive price movements Seasonally lower energy costs in Q2
Slide 3: Financial Summary
Financial Summary Q2 2006 Change Change Q/Q (%) H1 06/H1 05(1) (%) Net sales, SEKm 25,294 0% +9% Profit before tax, SEKm 1,708 +9% +22% Earnings per share, SEK 5.62 +13% +25% 1 Excluding items affecting comparability 3
Slide 4: Group – Quarterly Development
Group – Quarterly Development(1) SEKm EBITDA (%) 35,000 18% 14.4% 16% 30,000 13.7% 14.3% 14.3% 13.9% 14% 25,000 12% 20,000 10% 15,000 8% 23,986 24,740 25,141 25,400 25,294 6% 10,000 4% 5,000 2% 0 0% Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Sales EBITDA margin 1 Excluding items affecting comparability
Slide 5: SCA Group Sales and EBIT H1 2006 vs H1 2005
SCA Group Sales and EBIT H1 2006 compared with H1 2005(1) SEKm Sales 52,000 50,694 +954 -130 50,000 +1,074 +884 Volume: +5% +1,408 48,000 46,504 Currency: +3% 46,000 44,000 42,000 40,000 Sales H1 Personal Care Tissue Packaging Forest Other Sales H1 2005 Products 2006 EBIT SEKm +72 4,068 +391 4,000 +
Slide 6: SCA Group Sales and EBIT Q2 vs Q1 2006
SCA Group Sales and EBIT Q2 2006 compared with Q1 2006 SEKm Sales 26,000 25,400 -99 -175 +250 25,294 -158 +76 25,000 Currency: -1% 24,000 23,000 22,000 Sales Q1 Personal Care Tissue Packaging Forest Other Sales Q2 2006 Products 2006 SEKm EBIT 2,200 +54 -29 2,113 +101 +38 Price: +5% 2,000 1,955 -6 En
Slide 7: Energy Costs
Energy Costs Energy costs SEK 150m lower compared with first quarter 2006 due to lower consumption and lower average prices Costs in third quarter expected to be in line with second quarter Price hedges in place for 2006: –Electricity: ~40% –Natural gas: ~30% 7
Slide 8: Cash Flow Analysis
Cash Flow Analysis H1 2006 compared with H1 2005 Operating cash flow SEK 2,387m (2,563) Higher operating cash surplus Slightly increased current capex Negative effect from increased working capital, due to volume growth and price increases Increased cash outflow related to structural costs Cash flow
Slide 9: Personal Care – Quarterly Development
Personal Care – Quarterly Development SEKm EBITDA (%) 19.1% Q2/Q1 comments: 6,000 17.7% 17.8% 17.9% 17.1% 18% Lower sales due to 5,000 16% negative calendar and currency 14% 4,000 effects 12% Increased costs for 3,000 10% raw materials and 5,136 5,348 5,249 higher advertising 5,026 8% 4,727 2,000 an
Slide 10: Personal Care
Personal Care Incontinence products Good volume growth in retail segment Improved product mix – increased sales from new products Baby diapers Maintained / strengthened shares for Libero Strong growth in retailers’ brands Feminine hygiene products Increased sales of branded products Higher advertisi
Slide 11: Tissue – Quarterly Development
Tissue – Quarterly Development SEKm EBITDA (%) 10,000 14% Q2/Q1 comments: 12.6% 11.8% 11.9% Lower sales due to 11.6% 12% 10.7% negative calendar 8,000 and currency effects 10% Higher prices and 6,000 8% lower energy costs improved the 8,109 6% profitability 4,000 7,531 7,917 7,962 7,787 4% 2,000 2%
Slide 12: Tissue
Tissue Consumer tissue Competitive pressure remains in Europe Some price increases Lower energy costs Improved volumes and prices in Mexico and South America AFH tissue Seasonally strong volumes and higher prices in North America Improved product mix in Europe Strong volume development in Eastern Eu
Slide 13: Packaging – Quarterly Development
Packaging – Quarterly Development SEKm EBITDA (%) Q2/Q1 comments: 12,000 14% Lower sales due to 11.4% 10.8% 12% negative currency, 10,000 10.8% 10.2% 10.2% calendar effects and 10% higher own liner 8,000 integration 8% 6,000 Improved 6% profitability through 8,094 8,351 lower energy costs 4,000 8,27
Slide 14: Packaging
Packaging Corrugated board Acceptance for price increases of ~5%(1) of which approximately half is expected to have an impact on earnings during the third quarter Containerboard Price increases implemented in June North America Improved prices and lower raw material costs 1 Measured from year-end 20
Slide 15: Forest Products – Quarterly Development
Forest Products – Quarterly Development SEKm EBITDA (%) 5,000 25% Q2/Q1 comments: 22.4% 21.8% 21.4% 21.0% 18.4% Sales increased as a 4,000 20% result of high deliveries of solid- wood products and 3,000 15% LWC paper Continued high 4,378 4,454 2,000 4,116 3,986 4,071 10% volumes and lower energy cos
Slide 16: Forest Products
Forest Products Continued good volumes within publication papers High capacity utilization Lower energy costs Pulp, timber and solid-wood products Higher pulp prices Strong demand and positive price movements on solid-wood products 16
Slide 17: Outlook
Outlook Positive price momentum, primarily in Packaging Continued stable volume development Energy expected to remain flat in third quarter, increase in fourth quarter Increased raw material cost to be expected (oil-based and pulp) 17
Slide 18: essentials for everyday life
essentials for everyday life~