Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Investor Day (December 2020)
99 slides from Svenska Cellulosa Ab Sca Class A's investor day presentation, Dec 3, 2020
Slide 1: Capital Markets Day
Capital Markets Day December 3, 2020
Slide 2: Today's agenda
Today’s agenda 8.30 Strategy & future direction – Ulf Larsson, CEO & Toby Lawton, CFO Forest – Jonas Mårtensson, President Forest Wood – Jerry Larsson, President Wood Q&A – Jonas Mårtensson & Jerry Larsson Break Paper – Mats Nordlander, President Paper Pulp – Kristina Enander, President Pulp Q&A – K
Slide 3: Strategy & future direction
Strategy & future direction Ulf Larsson, CEO WSCA
Slide 4: SCA's integrated value chain
SCA’s integrated Electricity Wind turbines value chain Heat Bioenergy Logging residue & wood fuel Pellets Tall oil, Liquid biofuels black liquor & bark Pulp & paper mills Pulp Pulpwood Paper Wood-chips Bark & sawdust Sawmills Solid-wood products Sawlogs 4
Slide 5: Sustainability – part of our DNA
Sustainability Replaces 2 Higher growth enables more substitution – 6.0 – part of our DNA Mt CO2 renewable alternatives replace fossil based products SCA’s renewable Non-renewable 1 products products Binds net Growing forests bind CO2 – 5.4 active forest management Bioenergy Fossil Mt CO2 increases
Slide 6: Profitable growth strategy
Profitable growth strategy Invest in integrated value chain: Increased • Grow Pulp value from • Grow Kraftliner each tree • Renewable energy new segment • Reduce exposure to Publication Paper Increase forest holdings: Growing forest asset • Increase growth and harvesting level • Acquire forest l
Slide 7: Strong project portfolio driving profitable growth
Strong project portfolio driving profitable growth Value Biorefinery optionality Östrand – further capacity increase Biofuel Acquisition of 2021 forest land Research and 2023 Exit publication development paper Pilot plant Opportunity to 2023 Grow CTMP pulp further increase NBS
Slide 8: Project portfolio – market leading packaging position
Strong project portfolio driving profitable growth – market leading packaging position Value Biorefinery optionality Östrand – further expansion 2023 Biofuel Acquisition Kraftliner expansion of forest land Exit publication paper Grow CTMP pulp New 725kt paper machine in Obbola I
Slide 9: Project portfolio – a globally competitive CTMP plant
Strong project portfolio driving profitable growth – a globally competitive CTMP plant Value Biorefinery optionality Östrand – 2023 further expansion Grow CTMP pulp Biofuel Acquisition of forest land Exit publication paper 300kt CTMP at Ortviken and close CTMP Östrand Investment o
Slide 10: Project portfolio – shift from declining to growing product areas
Strong project portfolio driving profitable growth – shift from declining to growing product areas Value 2021 Biorefinery optionality Östrand – Exit publication paper further expansion Biofuel Acquisition of forest land Closure of all publication paper machines during Q1 2021 Grow C
Slide 11: Project portfolio – strengthen the fiber supply base
Strong project portfolio driving profitable growth – strengthen the fiber supply base Value 2024 Biorefinery Acquisition of forest land optionality Östrand – further expansion Biofuel Long term goal of 100k ha in the Baltic states Exit publication ~50k ha acquired 2019-2020 paper
Slide 12: SCA 2025 – shifting the portfolio to growing product areas
SCA 2025 – shifting the portfolio to growing product areas Growing Forest asset Wood Publication paper Kraftliner Pulp Renewable energy Harvesting own forest (k m3) Capacity (k m3) Capacity (kt) Capacity (kt) Capacity (kt) Wind power capacity (TWh) +1,100k m3 +200k m3 -1,810kt +340kt +880kt +11TWh 5
Slide 13: The SCA business model creates shareholder return
The SCA business model creates shareholder return SCA’s total shareholder return (TSR) 240 230 132% 220 210 110% 200 190 180 170 Index 160 150 35% 140 32% 130 31% 120 110 29% 100 13% 90 80 70 OMX Stockholm 30 60 jun-17 aug-17 okt-17 dec-17 feb-18 apr-18 jun-18 aug-18 okt-18 dec-18 feb-19 apr-19 jun-
Slide 14: Strategic direction
Strategic direction Toby Lawton, CFO WSCA
Slide 15: Constantly changing world – but the forest always creates value
Constantly changing world – but the forest always creates value SCA discontinues publication paper and expands pulp and kraftliner, creating value in and from the forest SCA took the first step towards becoming a consumer goods company with the acquisition of the Swedish personal care company Mölnly
Slide 16: Committed to our financial targets
Committed to our financial targets Capital allocation model: Strategic investments 1 Stable and growing dividend 2 1 2 Creating 3 Leading total shareholder return Dividend Capital structure shareholder value 3 Investment grade credit rating Forest asset 16
Slide 17: Strategic investments to drive growth
Strategic investments to drive growth CAPEX (SEKbn) Transformative growth projects in kraftliner and pulp 5.0 Obbola Expansion 4.0 • Investment decision 2019 • Total CAPEX: SEK 7.5bn 3.0 • CAPEX 2021-2023: SEK ~5bn 2.0 CTMP Investment • Investment decision 2020 1.0 • Total CAPEX: SEK 1.45bn 2020 202
Slide 18: Financing
Financing Well diversified and with a limited refinancing risk Debt maturity profile (SEKbn) Longer maturities beyond investment period 7.0 • Bond issues of SEK 2.5bn, maturities 2025 Investment period and 2027 6.0 • Increased frame amount on export credit 5.0 facility – SEK ~1.2bn 4.0 3.0 2021 cred
Slide 19: Forest
Forest Jonas Martensson, President Forest WSCA
Slide 20: Increase in both standing volume and harvesting level
Based on Increase in both standing volume current technology and harvesting level Harvesting from own forest (m m3sub) Standing timber volume (m m3fo) +200% 350 +100% 6 300 5 250 4 200 3 150 2 100 Increasing cash flow Growing asset base 1 50 0 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Slide 21: Improved practices and technology increase growth
Improved practices and technology increase growth m3fo/ha Growth plan at different taxations (standing volume / hectare) 140 1 Tax X vs 2019 Tax IX Silviculture 130 +9 m fo/ha 3 120 2 Tax IX vs 2014 Improved seedlings 110 Tax VI +14 m fo/ha 3 100 Tax VI vs 1984 3 Tax II Introduction of Contorta pine
Slide 22: SCA's responsible forestry
SCA’s responsible forestry Responsible forestry according to FSC® and PEFC™ results in some restrictions Voluntary set-asides Combined goals Consideration Consideration for the Sami people and ≥5% ≥5% reindeer husbandry through dialogue and consultation 22
Slide 23: Harvesting plan with restrictions
Harvesting plan with restrictions Optimizes value and supply Harvesting plan per tree species (m m3sub) 6.0 1 Deciduous trees Secure supply 5.0 Contorta 4.0 2 Meet restrictions 3.0 Spruce 2.0 3 Optimize value 1.0 Pine 0.0 2015-2019 2020-2024 2025-2029 2030-2034 2035-2039 2040-2044 2045-2049 Note: Ba
Slide 24: Changes versus harvesting plan 2015
Changes versus harvesting plan 2015 1.1 million m3sub higher harvesting level in 2025 Increased precision in Harvesting Contorta pine Harvesting ”hidden” volumes nature conservation thousand thousand thousand m3sub/year m3sub/year m3sub/year +600 +350 +150 • Higher growth compared to previous • Made
Slide 25: SCA's new long-term harvesting plan
SCA’s new long-term harvesting plan Efficient wood supply to the industries Cash flow effect new harvesting plan (SEKm) Wood sourcing 2019 (m m3sub) Wood sourcing 20251 (m m3sub) SEKm 13 13 External suppliers 400 ~300-400 12 12 Sawmills Full effect 2025 External Sawmills 11 11 Locally suppliers purc
Slide 26: Increase forest holdings in the Baltics
Increase forest holdings in the Baltics @®SCA
Slide 27: Increase productive forest land in our natural supply area
Increase productive forest land in our natural supply area Acquire forest land outside Sweden Invest in integrated value chain: ~100k ha Increased • Grow Pulp value from • Grow Kraftliner each tree • Renewable energy new segment • Reduce exposure to Publication Paper Growing Increase forest hold
Slide 28: Strategic connection – strengthen the fiber base for future projects
Strategic connection – strengthen the fiber base for future projects 1 2 3 Strengthen our High growth SCA’s competence integrated value chain and resources • Strengthen the raw material supply • High growth – 2.5x northern Sweden • Harvesting volume and standing and increase self-sufficiency level v
Slide 29: Attractive prices
Attractive prices Same value as northern Sweden, 2.5x higher growth Price (EUR/ha forest land) Growth potential (m3fo/ha/year) 12,000 12 ~2.5x 10,000 10 8,000 8 6,000 6 4,000 ~1.1x 4 2,000 2 0 0 Southern Mid Northern Baltic Southern Mid Northern Baltic Sweden Sweden Sweden states Sweden Sweden Swede
Slide 30: SCA's forest holdings in the Baltics
SCA’s forest holdings in the Baltics SCA forest holdings in the Baltics • ~ 50,000 hectare 4.8 m m3fo • 4.8 millions m3fo forest • Located in Estonia and Latvia Younger than SCA’s forest holdings in Sweden More fertile ground and warmer climate – higher growth Mainly located in the northern regi
Slide 31: Long term goals in the Baltics
Long term goals in the Baltics Total area (k ha) Standing volume (m m3fo) ~100 ~12 Final fellings (m m3fo/year) Local purchases (m m3fo/year) ~0.5 0.5-1.0 31
Slide 32: Wood
\Nlood Jerry Larsson, President Wood WSCA
Slide 33: Divestment of Wood Supply UK
Divestment of Wood Supply UK Divestment of SCA Wood Supply UK Ltd to BSW Timber Ltd Financial effects on SCA, lower: • Net Sales SEK ~1,400m • EBITDA SEK ~25m • Net Debt SEK ~150m SCA retains sales organization for the sales of wood products to industrial customers in the UK • Continued supply of sa
Slide 34: Sawlog — largest revenue from a tree
Sawlog — largest revenue from a tree @®SCA
Slide 35: Sawlogs secure highest value for the forest owner
Sawlogs secure highest value for the forest owner Wind Electricity turbines Heat Bioenergy Logging residue & wood fuel Pellets Tall oil, Liquid biofuels black liquor & bark Pulp & paper mills Pulpwood Pulp 52% 35% Pulpwood of volume of revenue Paper Bark & Sawlogs Wood-chips sawdust Sawmills 48% 65%
Slide 36: Europe's largest private forest owner
Europe’s largest private forest owner Sawmill SCA’s forest 6% m m3sub of Sweden Sawlog harvest/consumption 2020 2025 SCA´s own forest harvesting 2.0 2.5 External 2.3 2.2 Munksund Sawlog consumption 4.3 4.7 Share from own forests 47% 53% Rundvik Bollstabruk Gällö Tunadal 36
Slide 37: Sawmill 4.0
Sawmill 4.0 Digitalization increases the value from each tree @®SCA
Slide 38: SCA Wood 2025 – Maximize the value of the forest
SCA Wood 2025 – Maximize the value of the forest Growing forest asset Structural change and increased productivity State of art technology Europe’s largest private forest owner 2010 2020 2025 Harvesting own forest (k m3) +1,100k m3 Boden 5,400 Vilhelmina Munksund Munksund Munksund 4,300 4,300 Jämtla
Slide 39: From log to customer
From log to customer CT-Scan 3D-visualization of every log and value optimization Log Eye Detection of log-ID to control rotation for maximized value Scanner Scanning and detection of original log and position in log 39
Slide 40: CT-scanning maximizes product value
CT-scanning maximizes product value CT-scan Log Eye New data enables maximized value from each log 40
Slide 41: Downstream verification secures value
Downstream verification secures value Scanner Verifies the product value 41
Slide 42: "Fingerprint" connects the value chain
”Fingerprint” connects the value chain CT-scan Log Eye Scanner Business intelligence for improved knowledge and continuous improvement 42
Slide 43: Maximize the value for the forest owner
Maximize the value for the forest owner Maximize value of SCA’s forest holdings Connect log value to geography and forest type By using AI guide and increase our strength to pay the forest owner 43
Slide 44: Sawmill 4.0 – digitalization increases the value from each tree
Sawmill 4.0 – digitalization increases the value from each tree 1 Improve efficiency • Volume growth and production optimization 2 Increase revenue • Secure highest value from each tree 3 Maximize value of SCA’s forest holdings • Use advanced technology to secure value to the forest owner
Slide 45: Q&A
OSA Jonas Martensson, Jerry Larsson WSCA
Slide 46: Break
Break
Slide 47: Paper
Paper Mats Nordlander, President Paper WSCA
Slide 48: SCA Paper's strategic transformation
SCA Paper’s strategic transformation Profitable growth Kraftliner, Exit Publication Paper -5-10% +2-3% Publication Paper Kraftliner Increased share of White-top – higher value add Capacity (kt) -1,810kt Capacity (kt) +340kt 1,140 1,810 New 725kt paper machine Obbola – increased competitiveness 8
Slide 49: Favorable trends drive long-term Kraftliner growth
Favorable trends drive long-term Kraftliner growth
Slide 50: Containerboard demand shows resilience during corona pandemic
Containerboard demand shows resilience during corona pandemic Containerboard a 160 Mt global market... …with a stable growth of ~3% per year CAGR ~3% 370Mt +60 Mt NSPT UM CM 180 Resilient demand during Specialties corona pandemic CWF Containerboard UWF 160 V-shaped recovery to trend line 140 Tissue
Slide 51: Long-term structural trends drive growth
Long-term structural trends drive growth Kraftliner demand growth Economic drivers 3 4 5 1• Industrial production Favorable trends 2• Consumer spending Kraftliner 1 2 Structural growth 3• E-commerce Underlying growth 4• Changes in retail 5• Sustainable packaging 2005 2019 51
Slide 52: Decline in economic drivers offset by accelerated shift to e-commerce
Decline in economic drivers during pandemic offset by accelerated shift to e-commerce Pre pandemic Pandemic uncertainty Clearer view pandemic Structural change Growth 2020e (Feb forecast) Growth 2020e (May forecast) Growth 2020e (Oct forecast) Decline in consumer Consumer Industrial Containerboard C
Slide 53: Containerboard market development – improved market sentiment
Containerboard market development Improved market sentiment Sharp V-curve for box deliveries. Kraftliner European deliveries (Mt) European Box demand (index) Growth higher than trend Rolling 12 months Deliveries still on 5.7 growth 110 5.6 5.5 105 5.4 100 5.3 5.2 95 5.1 5.0 90 Kraftliner inventories
Slide 54: Invest in profitable growth
Invest in profitable growth
Slide 55: Kraftliner expansion drives profitable growth
Kraftliner expansion drives profitable growth Obbola production (kt) New 725kt paper machine at Obbola +275kt 725 SEK 7.5bn investment Start-up expected in Q1 2023 • Ramp-up period of ~3 years 450 Parallel start-up ensures EBITDA enhancement from start Project proceeding according to plan and budget
Slide 56: Asset renewal secures long-term competitiveness
Asset renewal secures long-term competitiveness New Kraftliner PM’s since 2000 Obbola largest Strengthened market leading position Kraftliner PM 800 • Europe’s largest independent producer of kraftliner • Increased market share 700 600 PM capacity (kt) Improved cost position 500 • Significantly
Slide 57: Secure and improve current Kraftliner business
Secure and improve current Kraftliner business EBITDA expected to increase SEK 0.9bn Segment Paper to change name to Containerboard net sales (SEKbn) Containerboard EBITDA margin Containerboard in Q1 2021 • Publication Paper to be reported in Segment Other 6.0 40% in 2021 5.0 30% Obbola expansion dr
Slide 58: Paper – grow kraftliner, exit publication paper
Paper – grow kraftliner, exit publication paper 1 Favorable trends drive long-term Kraftliner growth • Resilient containerboard demand during the pandemic driven by accelerated shift to e-commerce 2 Invest in profitable growth • Increased share of White-top Kraftliner • New 725kt Kraftliner machine
Slide 59: Pulp
Pulp Kristina Enander, President Pulp WSCA
Slide 60: SCA pulp portfolio
SCA pulp portfolio NBSK CTMP Produced by cooking wood chips in white liquor Produced by grinding wood chips in a refiner Gives pulp with long, strong fibers Gives shorter, stiffer fibers that provide absorption capacity, bulk and stiffness Provides high strength and brightness Lower consumption of w
Slide 61: Östrand ramp-up on track
Östrand ramp-up on track Average daily NBSK production (tonnes) Cash cost global softwood producers (SEK/ADMT) Full capacity Actual Östrand 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Source: RISI Cumulative capacity ADMT/year Source: RISI. 61
Slide 62: Strong position in growing market segments
Strong position in growing market segments
Slide 63: Long-term relationships, strong position in tissue segment
Long-term relationships, strong position in tissue segment Demand growing ~2% per year driven by tissue SCA has ~90% exposure to tissue and specialty paper Global softwood pulp demand (m tonnes) 2019 Present 30 CAGR ~2% 30% 30% 30% 25% Market (global) 25 40% 45% Limited exposure to P&W 10% 20% 20% 2
Slide 64: Northern Swedish fiber for premium pulp products
Northern Swedish fiber for premium pulp products 1 Premium strength 2 Wet strength 3 Filter application 4 Custom-made grades 64
Slide 65: Increase CTMP production
Increase CT MP production
Slide 66: Investment in increased CTMP production
Investment in increased CTMP production Expanding a profitable CTMP business Low investment per tonne CTMP plant with global competitiveness Improves customer product properties at lower cost High share of growth with existing customers 66
Slide 67: Expand already profitable CTMP business
Expand already profitable CTMP business CTMP capacity (kt) EBITDA (SEKbn) Existing plant runs for cash +200kt +0.3bn Solid customer base with a custom-made product mix 300 Unique competence in birch CTMP Profitable growth • +SEK 0.3bn EBITDA • Secure current business 100 Creates opportunity for furt
Slide 68: CTMP production at Östrand to end when new line up and running
CTMP production at Östrand to end when new line up and running Production CTMP (kt) +200kt 250 200 150 100 50 0 2021 2022 2023 2024 2025 Östrand Ortviken 68
Slide 69: SCA invests in businesses with market leading positions
SCA invests in businesses with market leading positions Investment rationale Cost curve SW CTMP producers Low CAPEX per tonne • CAPEX SEK 1.45bn • CAPEX SEK 5k per tonne • Utilize existing modern TMP asset Scale up profitable business CTMP today CTMP tomorrow Östrand • ~15% lower cash cost per tonne
Slide 70: CTMP improves customer product properties at lower cost
CTMP improves customer product properties at lower cost Cost-cutting for customer Product properties Replaces more expensive pulp 1 High bulk and bending rigidity Lower weight at a given strength Board Good smell and taste properties provides a lower production cost 2 Increased absorption per kg Tis
Slide 71: Increasing exposure to structurally growing segments
Increasing exposure to structurally growing segments Market plan by geography Market plan by customer Market plan by product Printing Existing paper New CTMP Specialty Asia customers volume Europe Board Tissue USA Former customers Growth with current CTMP CTMP to customers current NBSK customers Eur
Slide 72: CTMP investment drives profitable growth
CTMP investment drives profitable growth Strategic fit Market Project Capex 1.45mdr Increased hardwood integration Allows potential further expansion of NBSK at Board segment in Europe and Asia drives Capex: SEK 1.45bn with start early 2021 Östrand demand SEK ~5k per tonne Continue to develop
Slide 73: Pulp – continued growth with leading cost position
Pulp – continued growth with leading cost position 1 Growing demand driven by tissue segment 2 Östrand ramp-up on track 3 New CTMP mill at Ortviken
Slide 74: Q&A
O&A Kristina Enander, Mats Nordlander WSCA
Slide 75: Renewable energy
Renewable energy Mikael Kallgren, President Renewable energy WSCA
Slide 76: Renewable energy – the next value creator and transformation enabler
Renewable energy – the next value creator and transformation enabler Target 2025 Long-term potential 11 300k TWh m3 Increased value of forest and land Electrification of all cars in Sweden Fossil-free domestic aviation in Sweden 76
Slide 77: TWh wind power on SCA's land 2025
11 TWh wind power on SCA’s land 2025
Slide 78: Future challenges in Swedish electricity production
Future challenges in Swedish electricity production Energy scenarios 2040 200 Great need of new electricity production 180 Wind • Reduction of nuclear power 160 Usage • Increasing electricity usage 140 Nuclear 120 Expanded wind power capacity crucial TWh Solar • ~ 60 – 100 TWh until 2040 100 80 CHP
Slide 79: 11.0 TWh wind power on SCA land by 2025
11.0 TWh wind power on SCA land by 2025 Initiate new wind projects on SCA land and develop after market offering New target Today, 538 wind turbines operate on SCA’s land with 11 TWh an annual production capacity of 5.1 TWh • Corresponds to 20% of Sweden’s wind power production 2023 9.0 TWh secured
Slide 80: Biofuel — future enabler of profitable growth
Biofuel — future enabler of profitable growth
Slide 81: Quota obligations and penalties drive price and demand for biofuels
Quota obligations and penalties drive price and demand for biofuels Diesel - quota obligation proposal IEA's 2°C Scenario* (k TWh) (Sweden) 35 70% 1 Global climate agreements EU – Renewable energy directive 30 60% Electricity 25 50% Diesel Diesel quota 2 National legislation 40% 20 Biofuels Other fo
Slide 82: Refining fossil oil gives multiple products – renewable jet fuel
Refining fossil oil gives multiple products – renewable jet fuel is a solution to make green transition When producing jet fuel, other oil products are produced… … which limits consumption of jet fuels to ~11% of the total fuel market Energy consumption per type of fuel, 1980-2015 Annual growth, Gas
Slide 83: SCA invests in growing markets and the integrated value chain
SCA invests in growing markets and the integrated value chain 1 SCA has the feed stocks, utilities and infrastructure 2 Growth opportunity – market grows >10% annually 3 Profitable growth strategy – increased value of each tree 4 Contributing to a fossil-free world and increased climate benefit 83
Slide 84: Three potential feed stocks with different technology maturity
Three potential feed stocks with different technology maturity 1 Crude tall oil and other vegetable oils Joint venture with St1 100,000 m3 of biofuels Pre project finished Q4 2020 CTO HVO, biojet Destillery Biorefinery 2 Long term Solid biomass - saw dust, bark.. Östrand Biorefinery line 1 Evaluatin
Slide 85: Group sustainability targets
Group sustainability targets Katarina Kolar, Hans Djurberg WSCA
Slide 86: SCA's sustainability platform
SCA’s sustainability platform Formulated 2017 and launched 2019 Part of the business model Social, environmental and economic UN goals for sustainable development 87
Slide 87: Group targets 2030 based on materiality
Group targets 2030 based on materiality Clear direction and long-term perspective Fossil-free world Increase SCA’s climate benefit from 10 to 15 million tonnes Valuable forests 100% wood raw material from responsible managed forests Efficient Zero waste use of resources Responsibility for people Acc
Slide 88: Values – all employees to follow SCA's code of conduct
Values All employees to follow SCA’s code of conduct Education of all employees Suppliers sharing SCA’s Risk based audits on-site values No breaches >98 % approved SCA’s supplier standard A living code Sustainable supply chain Follow-up 89
Slide 89: Profitable growth
Profitable growth Leading total shareholder return Strategy for profitable growth Stable and growing dividend Investment Grade credit rating Portfolio of initiatives Deliver on strategy Value creation Financial stability 90
Slide 90: Fossil-free world
Fossil-free world Increase SCA’s climate benefit from 10 to 15 million tonnes CO2 per year Increased growth Increase volumes 50% reduction of fossil emissions in the value chain Increase forest holdings in New applications and the Baltic states to 100,000 ha innovations Long-term objective a fossil-
Slide 91: Valuable forests
Valuable forests 100% wood raw material from responsibly managed forests 100% chain of custody certified SCA’s forest management SCA’s forests to be at least as certified according to FSC and rich in biodiversity, nature 75% FSC or PEFC certified or PEFC experiences and raw material harvested with S
Slide 92: Efficient use of resources
Efficient use of resources Zero waste High yield in every process Increase energy efficiency Minimize emissions and effluent to air and water Efficient use of residual Activities of 50 GWh per year streams (ESAVE program 2020-2025) Minimize landfill and hazardous waste Raw material yield Energy effi
Slide 93: Responsibility for people and the community
Responsibility for people and the community Accident-free and healthy SCA Zero accidents Developing leaders for the Contribute to local future communities Mature health and safety culture (interdependent) Employees that flourish and succeed Zero vision People create success Vibrant local communities
Slide 94: Group sustainability targets 2030
Group sustainability targets 2030 Fossil-free world Valuable forests Efficient use of Responsibility for people resources and the community Group target 2030 Group target 2030 Group target 2030 Group target 2030 Increase SCA’s climate benefit from 10 to 100% wood raw material from responsibly Zero w
Slide 95: Concluding remarks
Concluding remarks Ulf Larsson, CEO WSCA
Slide 96: SCA 2025 – shifting the portfolio to growing product areas
SCA 2025 – shifting the portfolio to growing product areas Growing Forest asset Wood Publication paper Kraftliner Pulp Renewable energy Harvesting own forest (k m3) Capacity (k m3) Capacity (kt) Capacity (kt) Capacity (kt) Wind power capacity (TWh) +1,100k m3 +200k m3 -1,810kt +340kt +880kt +11TWh 5
Slide 97: Transforming the product portfolio – creating profitable growth
Transforming the product portfolio – creating profitable growth Sales impact EBITDA margin enhancement (p.p) Exit publication paper +4% Exit UK +1% Obbola expansion +3% CTMP expansion +1% Increased harvesting +1% Future potential Further capacity Östrand Future potential 2020 Exit Exit Wood UK post
Slide 98: Q&A
O&A Ulf Larsson, Toby Lawton WSCA
Slide 99: are subject to certain risks and uncertainties that could negatively affect our business. Please
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