Interim Report Q1 2017

Transcription

1 Interim Report

2 Hygiene and Forest Products Business Combined Summary Net sales increased 4% Adjusted operating profit 1) increased 5% AGM decision to split SCA into two listed companies SCA, an efficient and well-invested forest products company Essity, a leading global hygiene and health company Intention to distribute and list SCA Hygiene AB in June Changed segment reporting as of 1) Excluding items affecting comparability April 27, Interim Report 2

3 SCA Hygiene AB, The Future Hygiene and Health Company Essity Magnus Groth President and CEO

4 SCA Hygiene AB, The Future Essity Financial Summary vs Net Sales Organic Sales 1) Adjusted EBITA 2) 25,268m +4.2% +1.0% 2,917m +4% 3) Adjusted EBITA Margin 2) EPS Operating Cash Flow 11.5% +20bp ,086m +60% 1) Sales which excludes exchange rate effects, acquisitions and divestments 2) Excluding items affecting comparability 3) Excluding items affecting comparability, currency translation effects and acquisitions April 27, Interim Report 4

5 SCA Hygiene AB, The Future Essity Summary Significant Initiatives Discontinued hygiene business in India Actions to strengthen supply chain and product offering in Europe and Mexico Events after the Quarter Completed acquisition of BSN Medical on April 3, New financial targets April 27, Interim Report 5

6 SCA Hygiene AB, The Future Essity Adjusted ROCE 1) 15.5% 15.6% 1) Adjusted Return on Capital Employed (Adjusted EBITA / Capital Employed) excluding items affecting comparability April 27, Interim Report 6

7 SCA Hygiene AB, The Future Essity Innovations New Saba Good Night Re-launch of Libero in Russia TENA Flex with ConfioAir TENA Lady Discreet Familia ph Balanceado April 27, Interim Report 7

8 Personal Care vs 8,151m Net Sales 8,455m 3.8% 977m Adjusted EBITA 1) 1,228m +26% Adjusted EBITA Margin 1) 12.0% 14.5% +250bp Net sales increased 3.8% Organic sales increased 1.1% Adjusted EBITA 1) increased 26% Better price/mix Higher volumes Lower raw material costs Cost savings Improved profitability in Incontinence Products in North America Positive effect from exiting Baby Care in Mexico and hygiene business in India Investments in increased marketing activities Adjusted EBITA margin 1) 14.5% Adjusted ROCE 2) 35.4% 1) Excluding items affecting comparability 2) Adjusted Return on Capital Employed (Adjusted EBITA / Capital Employed) excluding items affecting comparability April 27, Interim Report 8

9 Personal Care vs Organic Sales by Region +1.1% Total -0.3% +3.1% Mature Emerging Markets Markets % of Personal Care Net Sales: 58% 42% Organic Sales by Product Segment +2.0% Incontinence Products -4.2% Baby Care +4.5% Feminine Care 53% 27% 20% Organic sales increased 1.1% Price/mix +0.7% Volume +0.4% Negative impact of approximately 1% related to closures of Baby Care Mexico and hygiene business in India Mature markets Western Europe - Slightly lower sales - Incontinence Products showed good growth in Retail but lower sales in Health Care North America - Higher sales in Incontinence Products, both in Health Care and Retail Emerging markets Latin America +3% - Good growth for Incontinence Products and Feminine Care - Lower sales in Baby Care mainly due to exiting Baby Care in Mexico Russia -24% Asia +1% April 27, Interim Report 9

10 Consumer Tissue vs 10,238m Net Sales 10,473m +2.3% Adjusted EBITA 1) 1,151m 1,078m 10.5% 11.0% +7% +50bp Adjusted EBITA Margin 1) Net sales increased 2.3% Organic sales increased 0.6% Adjusted EBITA 1) increased 7% Higher volumes Lower raw material costs Cost savings Lower prices Higher energy costs Adjusted EBITA margin 1) 11.0% Adjusted ROCE 2) 11.4% 1) Excluding items affecting comparability 2) Adjusted Return on Capital Employed (Adjusted EBITA / Capital Employed) excluding items affecting comparability April 27, Interim Report 10

11 Consumer Tissue vs Organic Sales by Region Organic sales increased 0.6% Price/mix -0.3% Volume +0.9% +0.6% -1.6% Total Mature Markets +5.2% Emerging Markets % of Consumer Tissue Net Sales: 56% 44% Mature markets Western Europe - Lower sales due to lower sales of retail branded products and mother reels Emerging markets Asia +5% Latin America +6% Russia +14% April 27, Interim Report 11

12 Professional Hygiene vs 5,876m Net Sales 6,383m 8.6% 777m Adjusted EBITA 1) 720m -7% Adjusted EBITA Margin 1) 13.2% 11.3% -190bp Net sales increased 8.6% Organic sales increased 2.1% Adjusted EBITA profit 1) decreased 7% Higher raw material costs mainly due to significantly higher recovered paper prices Higher selling costs Better price/mix Higher volumes Cost savings Acquisition of Wausau Paper Corp. Adjusted EBITA margin 1) 11.3% Adjusted ROCE 2) 13.7% 1) Excluding items affecting comparability 2) Adjusted Return on Capital Employed (Adjusted EBITA / Capital Employed) excluding items affecting comparability April 27, Interim Report 12

13 Professional Hygiene vs Organic Sales by Region +13.2% Organic sales increased 2.1% Price/mix +0.9% Volume +1.2% +2.1% Total 0.0% Mature Markets Emerging Markets % of Professional Hygiene Net Sales: 83% 17% Mature markets Higher sales in Western Europe compensated for lower sales in North America Emerging markets Asia +22% Latin America +12% Russia 0% April 27, Interim Report 13

14 SCA AB, The Future Forest Products Company SCA Ulf Larsson Executive Vice President President Forest Products

15 SCA AB, The Future Forest Products Company Summary Net sales increased 5% Adjusted EBITDA and EBITDA margin decreased Negative impact from revaluation related to the fair value measurement of electricity certificates Higher costs related to Östrand pulp mill expansion Investment in increased pulp capacity in Östrand progressing according to plan Since start of project approximately 3.1bn has been invested of the total estimated investment of approximately 7.8bn Committed credit facilities totaling 9.5bn April 27, Interim Report 15

16 SCA AB, The Future Forest Products Company Financial Summary vs Net Sales Adjusted EBITDA 1) 3,969m +5% 807m -1% Adjusted EBITDA Margin 1) EPS2) Operating Cash Flow 20.3% -110bp m -89% 1) Excluding items affecting comparability 2) Continuing operations April 27, Interim Report 16

17 Forest vs 1,187 m Net Sales 1,312m +11% 293m Adjusted EBITDA 1) 325m +11% Adjusted EBITDA Margin 1) 24.7% 24.7% 0bp Net sales increased 11% Increase mainly related to higher volumes Adjusted EBITDA 1) increased 11% Higher harvesting of own forest Lower harvesting costs Adjusted EBITDA margin 1) 24.7% 1) Excluding items affecting comparability April 27, Interim Report 17

18 Wood vs 1,264 m Net Sales 1,364m +8% 87m Adjusted EBITDA 1) 145m +67% Adjusted EBITDA Margin 1) 6.9% 10.6% +370bp Net sales increased 8% Price/mix +9% Volume 0% Currency -1% Price development in vs local currencies Solid Wood Products Adjusted EBITDA 1) increased 67% Higher prices Higher raw material costs Higher distribution costs Adjusted EBITDA margin 1) 10.6% Price index in Price index in local currency 1) Excluding items affecting comparability April 27, Interim Report 18

19 Pulp vs 600 m Net Sales 641m +7% 163m Adjusted EBITDA 1) Adjusted EBITDA Margin 1) 27.2% 104m 16.3% -36% -1090bp Net sales increased 7% Price/mix 0% Volume +4% Currency +3% ) Excluding items affecting comparability Price development in vs local currencies NBSK Pulp Price index in Price index in local currency Adjusted EBITDA 1) decreased 36% Revaluation related to the fair value measurement of electricity certificates of approximately 25m Higher costs related to pulp mill expansion project of approximately 15m Adjusted EBITDA margin 1) 16.3% April 27, Interim Report 19

20 Paper vs ,998 m Net Sales 2,046m +2% 303m 1) Excluding items affecting comparability Adjusted EBITDA 1) 268m -12% Adjusted EBITDA Margin 1) 15.2% 13.1% -210bp Price development in vs local currencies Publication Paper 2015 Price Index in Kraftliner Price Index in local currency Net sales increased 2% Price/mix -3% Volume +4% Currency +1% Adjusted EBITDA 1) decreased 12% Lower prices Higher energy and raw material costs Revaluation related to the fair value measurement of electricity certificates of approximately 15m Higher volumes Positive currency effects Adjusted EBITDA margin 1) 13.1% April 27, Interim Report 20

21 Fredrik Rystedt Executive Vice President and CFO April 27, Interim Report 21

22 SCA Hygiene AB, The Future Essity Net Sales vs. 24,248m +0.3% +0.7% +2.6% +0.6% 25,268m +4.2% Net Sales Price/Mix Volume Currency Acquisition Net Sales Organic sales increased 1.0% Price/Mix +0.3% Volume +0.7% April 27, Interim Report 22

23 SCA Hygiene AB, The Future Essity Adjusted EBITA 1) vs. 2,744m +52m +99m -38m -26m +64m +22m +214m -214m 2,917m +6% Adjusted EBITA Price/Mix Volume Raw Material Energy Currency Acquisition Cost Savings Other Adjusted EBITA 1) Excluding items affecting comparability April 27, Interim Report 23

24 Raw Material Development 150 Recovered Paper 1) Index 100 = January 150 Market Pulp Europe Index 100 = January Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 SOP US SOP EU 50 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Fluff NBSK EUCA 1) Index based in local currencies April 27, Interim Report 24

25 SCA Hygiene AB, The Future Essity Cash Flow vs Operating cash surplus Change in working capital Restructuring costs and other operating cash flow Capital expenditures (including strategic) Operating cash flow including strategic capital expenditures m 4, ,830 m 3,900-1, ,086 1,512 April 27, Interim Report 25

26 SCA Hygiene AB, The Future Essity Items Affecting Comparability m Costs related to the split of the SCA Group into two listed companies Restructuring costs related to closure of tissue machine in the UK Wausau Paper Corp. Release of provision related to anti-trust case in Poland Other Total items affecting comparability April 27, Interim Report 26

27 SCA Hygiene AB, The Future Essity New Group Financial Targets Annual Organic Sales Growth 1) 3% Adjusted Return on Capital Employed 2) 15% Capital structure policy and dividend policy unchanged 1) Excluding exchange rate effects, acquisitions and divestments 2) Adjusted EBITA / Capital Employed January 26, Year-end Report 27

28 SCA AB, The Future Forest Products Company Net Sales vs. 3,793m +2% +3% 0% 3,969m +5% Net Sales Price/Mix Volume Currency Net Sales April 27, Interim Report 28

29 SCA AB, The Future Forest Products Company Adjusted EBITDA 1) vs. 813m +38m +16m -39m -10m +28m -39m 807m -1% Adjusted EBITDA Price/Mix Volume Raw Material Energy Currency Other Adjusted EBITDA 1) Excluding items affecting comparability April 27, Interim Report 29

30 SCA AB, The Future Forest Products Company Cash Flow vs. Operating cash surplus Change in working capital Restructuring costs and other operating cash flow Capital expenditures (including strategic) Operating cash flow including strategic capital expenditures m m April 27, Interim Report 30

31 Magnus Groth President and CEO April 27, Interim Report 31

32 32

33 Q&A April 27, Interim Report 33

34 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 our most recent annual report for a better understanding of these risks and uncertainties. April 27, Interim Report 34

35