Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A

Svenska Cellulosa Ab Sca Class A — Svenska Cellulosa Aktiebolaget SCA — Q1 2023 Earnings Presentation

23 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Apr 28, 2023

  1. Slide 1: Interim Report, April 28, 2023

    rt A: Interim Repor

  2. Slide 2: Ulf Larsson, CEO

    Ulf Larsson, CEO -

  3. Slide 3: Strong result driven by profitable growth in renewable energy

    Strong result driven by profitable growth in renewable energy and resilience against increasing wood costs EBITDA increased 4% vs Q4 2022 Weaker demand in wood, pulp and containerboard Prices for solid wood products have bottomed out while prices for containerboard and pulp are still decreasing Sale

  4. Slide 4: EBITDA, Industrial ROCE and EBITDA margin

    EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin 2,055 31% 3,121 -21% 2,806 2,684 2,608 2,484 2,260 1,981 2,055 EBITDA margin Net debt/EBITDA 59% 53% 52% 53% 1,359 50% 42.7% 1.2x 47% 41% 43% 33% Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 1. LTM 4

  5. Slide 5: Forest: stable wood supply to industries

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin +14% +33% Stable wood supply to industries 1,931 781 40.4% 1,691 34.7% Sales up 14% 586 + Higher prices EBITDA up 33% + Higher prices Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 + Higher harvesting level own forest Price development – Pulpwood and Saw

  6. Slide 6: Wood: generally weak market but with reduced supply

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin -24% -80% Generally weak market but with reduced supply 1,717 610 35.5% Sales down 24% 1,297 - Lower prices 9.5% EBITDA down 80% 123 - Lower prices Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 - Higher wood raw material cost Price development – Solid W

  7. Slide 7: Sawn wood stocks, prices and production

    Stock of sawn pine and spruce wood, Sweden and Finland (k m3) Price development sawn pine and spruce, Sweden (index) 6,000 Normalized monthly level 340 5,000 290 4,000 240 3,000 Spruce 2,000 190 140 Pine 1,000 0 90 Jan-19 Jan-23 Jan-16 Jan-17 Jan-18 Jan-20 Jan-21 Jan-22 Jul-16 Jul-17 Jul-18 Jul-19 J

  8. Slide 8: Pulp: ongoing ramp up of new CTMP line

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin +20% 0% Ongoing ramp up of new CTMP line 1,881 592 593 37.9% 1,564 31.5% Sales up 20% + Higher prices + Higher volumes + Positive currency effects Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 EBITDA in line + Higher prices Price development – NBSK + Hi

  9. Slide 9: NBSK pulp price, deliveries and inventories

    NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 14.5 1,600 80 14.0 1,400 70 1,200 60 13.5 Average 50 1,000 40 13.0 800 30 12.5 600 20 Jan-21 Jan-22 Jan-17 Jan-18 Jan-19 Jan-20 Jan-23 Apr-19 Apr-20 Apr-17 Apr-18 Apr-21 Apr-22 Oct-22 Oct-17 Oct-18 Oct-19 Oct-20 Oc

  10. Slide 10: Containerboard: ongoing ramp-up of new paper machine in Obbola

    Net sales (SEKm) EBITDA (SEKm) EBITDA margin -9% -41% Ongoing ramp-up of new paper machine in Obbola 1,731 766 44.3% 1,573 Sales down 9% 450 28.6% - Lower prices EBITDA down 41% - Lower prices - Higher costs due to start-up Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Price development – Kraftlin

  11. Slide 11: Kraftliner price, deliveries and box demand

    Price (EUR/t) vs Kraftliner deliveries (Mt) European Box demand (index) 122 1,000 4.9 119 900 4.8 116 4.6 113 800 110 4.5 107 700 4.3 104 600 4.2 101 Unbleached kraftliner price Euwid (LHS) Kraftliner deliveries Europe (RHS) 500 4.0 98 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 Jan-18 Jan-19 Jan-20 Jan-21 J

  12. Slide 12: Renewable Energy: strong growth and higher prices

    Income 1 (SEKm) EBITDA (SEKm) EBITDA margin 2 +21% +113% Strong growth and higher prices 514 181 35.2% 426 Income up 21% 19.9% + Higher prices 85 EBITDA up 113% + Higher prices + Contribution of wind farm in Markbygden Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 12 1. Income comprisesnet sales a

  13. Slide 13: Slide 13

  14. Slide 14: Quarter income statement, SEKm

    Quarter SEKm Q1 2023 Q1 2022 Change Net sales 4,813 5,015 -4% EBITDA 2,055 2,608 -21% EBITDA margin 42.7% 52.0% -9.3 p.p. Depreciation and impairment -459 -385 19% EBIT 1,596 2,223 -28% EBIT margin 33.2% 44.3% -11.1 p.p. Financial items -59 -15 Profit before tax 1,537 2,208 -30% Tax -324 -448 Profit

  15. Slide 15: Net sales and EBITDA by segment

    Forest Wood Pulp Kraftliner Renewable Energy Net Sales (SEKm) Income 2,202 1,931 1,926 1,897 1,822 1,881 1,691 1,642 1,612 1,760 1,717 1,731 1,772 1,694 1,626 1,564 1,573 1,412 1,422 1,297 426 470 514 330 324 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 '22 '22 '22 '22

  16. Slide 16: Net sales bridge Q1 2022 to Q1 2023

    Lower prices Wood and Containerboard Weaker market Wood, ramp-up Containerboard SEK 5,015m -9% SEK +6% 4,813m -1% -4% Net sales Price/Mix Volume Currency Net sales Q1 2022 Q1 2023 16

  17. Slide 17: EBITDA bridge Q1 2022 to Q1 2023

    Lower prices Wood and Containerboard 3,300 Higher energy prices and growth in Higher fuel costs and SEK Higher costs for wood raw start-up costs 2,800 material and chemicals renewable energy 2,608m -555 2,300 +256 -108 SEK -39 -138 2,055m +31 1,800 1,300 800 EBITDA margin EBITDA margin - 21% 52.0% 4

  18. Slide 18: Cash flow, quarter SEKm

    Quarter SEKm Q1 2023 Q1 2022 EBITDA 2,055 2,608 Revaluation of biological assets and other non cash flow items -458 -491 Operating cash surplus 1,597 2,117 Change in working capital -150 -624 Current capital expenditures -279 -248 Other operating cash flow 35 -102 Operating cash flow 1,203 1,143 Str

  19. Slide 19: Capital employed and net debt

    SEKm Mar 31, 2023 Dec 31, 2022 Forest assets 98,579 97,882 Working capital 4,288 4,138 Deferred tax relating to forest assets -19,561 -19,468 Other capital employed 23,906 23,795 Total capital employed 107,212 106,347 Net debt 11,187 9,989 Net debt/EBITDA 1.2x 1.0x Equity 96,025 96,358 Net debt/Equi

  20. Slide 20: Summary

    Summary Ulf Larsson, CEO WSCA

  21. Slide 21: Strong result driven by profitable growth in renewable energy

    Strong result driven by profitable growth in renewable energy and resilience against increasing wood costs EBITDA increased 4% vs Q4 2022 Weaker demand in wood, pulp and containerboard Prices for solid wood products have bottomed out while prices for containerboard and pulp are still decreasing Sale

  22. Slide 22: Q&A

  23. 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

Svenska Cellulosa Aktiebolaget SCA — Q1 2023 Earnings Presentation on 6ix