Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — Svenska Cellulosa Aktiebolaget SCA — Q2 2024 Earnings Presentation
23 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jul 26, 2024
Slide 1: July 26, 2024
July 26, 2024
Slide 2: SCA
®SCA
Slide 3: Stronger market for fiber-based products, driving sequential price increases
Stronger market for fiber-based products, driving sequential price increases Higher harvesting of own forest but increasing wood raw material costs Sales increased 15% vs Q2 2023 • Price/mix +7%, volume +5%, currency +3% EBITDA increased 11% vs Q2 2023 + Higher prices + Positive currency effects 3
Slide 4: EBITDA and key ratios
EBITDA (SEKm) Industrial ROCE 1 EBITDA (SEKm) and EBITDA margin 1,888 4% 3,121 +11% 2,484 EBITDA margin Net debt/EBITDA 2,055 1,981 1,888 35.7% 1.8x 53% 50% 41% 43% 1,700 1,417 1,635 1,596 37% 37% 35% 36% 33% EBIT margin Net debt/Equity 25.7% 11.4% Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1
Slide 5: Forest: increased harvesting of own forest
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +15% +8% Increased harvesting own forest 2,239 883 42.0% 817 39.4% 1,945 Stable wood supply to industries Continued price increase for wood raw material Sales up 15% + Higher prices Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 + Higher delivery volumes
Slide 6: Wood: increasing prices, higher costs for sawlogs
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +11% +46% Increasing prices 1,506 294 19.6% 1,353 Higher costs for sawlogs 14.9% 201 Sales up 11% + Higher prices + Higher volumes Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 EBITDA up 46% Price development – Solid Wood Products + Higher prices + High
Slide 7: Sawn wood stocks, production and prices
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 340 4,000 290 3,000 240 Spruce 2,000 190 1,000 140 Pine 0 90 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
Slide 8: Pulp: continued positive price trend in Q2
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +22% +34% Continued positive price trend in Q2 2,147 509 23.7% 21.6% 1,760 Sales up 22% 380 + Higher prices + Higher volumes EBITDA up 34% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 + Higher prices - Higher raw material costs Price development – NBSK
Slide 9: NBSK pulp price, deliveries and inventories
NBSK pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) 15.5 1,800 80 15.0 1,600 70 14.5 1,400 60 Average 14.0 1,200 50 13.5 1,000 40 13.0 800 30 12.5 600 20 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20
Slide 10: Containerboard: increasing prices
Net sales (SEKm) EBITDA (SEKm) EBITDA margin +11% +6% Increasing prices 1,584 231 15.2% 14.6% 1,432 217 Sales up 11% + Higher prices + Higher volumes + Positive currency effects EBITDA up 6% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 + Positive currency effects Price development – Kraftliner -
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 4.5 110 700 107 4.3 Unbleached kraftliner price Euwid (LHS) 104 600 4.2 Kraftliner deliveries Europe (RHS) 101 500 4.0 98 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-18 Jul-19 Jul-20 J
Slide 12: Renewable Energy: negative biofuels market development
Income 1 (SEKm) EBITDA (SEKm) EBITDA margin 2 +11% -53% Negative market development in Europe for 448 182 45.3% liquid biofuels also affecting tall oil prices 402 Higher prices for solid biofuels offset by higher 85 19.1% costs for sawdust Lower electricity prices Income up 11% Q2 2023 Q2 2024 Q2 20
Slide 13: Slide 13
Slide 14: Quarter income statement
Quarter SEKm Q2 2024 Q2 2023 Change Net sales 5,291 4,582 15% EBITDA 1,888 1,700 11% EBITDA margin 35.7% 37.1% -1.4 p.p. Depreciation and impairment -527 -471 12% EBIT 1,361 1,229 11% EBIT margin 25.7% 26.8% -1.1 p.p. Financial items -144 -103 Profit before tax 1,217 1,126 8% Tax -257 -210 Profit fo
Slide 15: Segment net sales and EBITDA by quarter
Forest Wood Pulp Containerboard Renewable Energy Net Sales (SEKm) 2,169 2,239 2,147 1,945 1,878 1,994 1,760 1,774 1,636 1,616 1,635 1,584 1,506 1,432 1,385 1,460 1,353 1,244 1,264 1,093 552 636 402 411 448 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 '23 '23 '23 '24 '24
Slide 16: Net sales bridge Q2 2023 to Q2 2024
Ramp-up Containerboard Higher prices Pulp and Pulp and Wood SEK +5% +3% 5,291m SEK 7% 4,582m SEK 118m SEK 246m SEK 345m +15% Net sales Price/Mix Volume Currency Net sales Q2 2023 Q2 2024 16
Slide 17: EBITDA bridge Q2 2023 to Q2 2024
3,000 Higher prices Pulp Higher cost for Higher costs for and Wood wood raw material distribution and 2,500 maintenance of vessels +287 +15 -76 SEK -99 +130 -69 2,000 SEK 1,888m 1,700m 1,500 1,000 EBITDA margin EBITDA margin +11% 37.1% 35.7% 500 0 EBITDA Price/Mix Volume Raw material Energy Currency
Slide 18: Cash flow
Quarter Jan - June SEKm Q2 2024 Q2 2023 2024 2023 EBITDA 1,888 1,700 3,484 3,755 Revaluation of biological assets and other non cash flow items -437 -491 -984 -949 Operating cash surplus 1,451 1,209 2,500 2,806 Change in working capital -634 1 -730 -149 Current capital expenditures -265 -350 -249 -6
Slide 19: Capital employed and net debt
SEKm Jun 30, 2024 Dec 31, 2023 Forest assets 108,074 107,481 Working capital 5,053 4,321 Deferred tax relating to forest assets -21,382 -21,277 Other capital employed 24,005 24,525 Total capital employed 115,750 115,050 Net debt 11,828 10,766 Net debt/EBITDA 1.8x 1.6x Equity 103,921 104,284 Net debt
Slide 20: Summary
Summary Ulf Larsson, CEO WSCA
Slide 21: Stronger market for fiber-based products, driving sequential price increases
Stronger market for fiber-based products, driving sequential price increases Higher harvesting of own forest but increasing wood raw material costs Sales increased 15% vs Q2 2023 • Price/mix +7%, volume +5%, currency +3% EBITDA increased 11% vs Q2 2023 + Higher prices + Positive currency effects 21
Slide 22: Q&A
Slide 23: Forward-looking statements
This presentation may contain forward-looking statements. The actual outcome could be materially different. Such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read SCA’s most recent annual report for a be
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