SCA: Changes in SCA’s Financial Reporting for 2014 Due to New and Amended Reporting Standards

STOCKHOLM--()--Regulatory News:

SCA (Svenska Cellulosa AB) (STO:SCAA) (STO:SCAB)

As described in the year-end report 2013, effective January 1, 2014, SCA applies the following new and amended reporting standards: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements, and IAS 28 Investments in Associates and Joint Ventures.

These standards are applied retrospectively, which entails that the cash flows, income statements and balance sheets for 2012 and 2013 have been recalculated to reflect the changes in the new and amended reporting standards. It is mainly IFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements that have affected the recalculations. The other standards are not judged to have any material impact on the Group’s or parent company’s result or financial position.

For SCA, this entails that some joint ventures have been reclassified to subsidiaries. For the joint ventures that have not been reclassified as subsidiaries the equity method is applied. A few individual companies have been classified as joint operations for which proportionate consolidation is applied.

Please find below recalculated cash flows, income statements and balance sheets for 2012 and 2013.

NB:

SCA discloses the information provided herein pursuant to the Securities Markets Act. Submitted for publication on March 10, 2014, at 08.30 CET.

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2013 amounted to approximately SEK 93bn (EUR 10.7bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

OPERATING CASH FLOW ANALYSIS

OPERATING CASH FLOW ANALYSIS
SEK m 1312 1212
Operating cash surplus 14,004 13,068
Change in working capital -328 1,119
Current capital expenditures, net -3,489 -3,272
Restructuring costs, etc. -1,294 -988
Operating cash flow 8,893 9,927
 
Financial items -1,061 -1,323
Income taxes paid -1,741 -1,265
Other 161 102
Cash flow from current operations 6,252 7,441
 
Acquisitions -5,488 -14,873
Strategic capital expenditures, fixed assets -1,906 -1,971
Divestments 1,716 17,682
Cash flow before dividend 574 8,279
Dividend -3,303 -3,089
Cash flow after dividend -2,729 5,190
Net cash flow from disposal group 0 468
Net cash flow -2,729 5,658
 
Net debt at the start of the period -33,063 -36,820*
Net cash flow -2,729 5,658
Remeasurement to equity 2,176 -1,787
Currency effects -117 -114
Effect of reclassification of operating liability** -186 0
Net debt at the end of the period -33,919 -33,063
Debt/equity ratio 0.5 0.54
Debt payment capacity, % 38 38

* Including disposal group ** Provision for payroll tax has been reclassified to net debt under IAS 19.

STATEMENT OF PROFIT OR LOSS

SEK m     1312   1212
Net sales 92,873 89,229
Cost of goods sold 1) -69,585 -67,035
Gross profit 23,288 22,194
Sales, general and administration 1) -13,122 -13,323
Items affecting comparability 2) -1,239 -2,614
Share of profits of associates 215 169
Operating profit 9,142 6,426
Financial items -1,061 -1,323
Profit before tax 8,081 5,103
Tax -2,220 -364
Net profit for the period continued operations 5,861 4,739
Net profit for the period from disposal group 0 503
Net profit for the period 5,861 5,242
Earnings attributable to:
Owners of the parent 5,546 4,956
Non-controlling interests 315 286
Earnings per share, SEK - owners of the
parent total operations
- before dilution effects 7.9 7.06
- after dilution effects 7.9 7.06
Earnings per share, SEK - owners of the

parent continued operations

- before dilution effects 7.9 6.34
- after dilution effects 7.9 6.34
Calculation of earnings per share 1312 1212
Earnings attributable to owners of the parent 5,546 4,956
 
Average no. of shares before dilution, millions 702.3 702.3
Average no. of shares after dilution, millions 702.3 702.3
1) Of which, depreciation -5,005 -4,993
2) Distribution of items affecting comparability
Distribution of restructuring costs, etc. per function
Cost of goods sold -288 -300
Sales, general and administration -740 -982
Impairment, etc. -211 -1,332
Total items affecting comparability -1,239 -2,614
Gross margin 25.1 24.9
Operating margin 9.8 7.2
Financial net margin -1.1 -1.5
Profit margin 8.7 5.7
Tax -2.4 -0.4
Net margin * 6.3 5.3
* Excluding Net profit for the period from disposal group
Excluding items affecting comparability: 1312 1212
Gross margin 25.1 24.9
Operating margin 11.2 10.1
Financial net margin -1.1 -1.5
Profit margin 10.1 8.6
Tax -2.8 -0.8
Net margin * 7.3 7.8
* Excluding Net profit for the period from disposal group

CONSOLIDATED BALANCE SHEET

SEK m  

December 31, 2013

 

December 31, 2012

Assets

Goodwill 13,785 12,349
Other intangible assets 8,136 5,580
Tangible assets 81,544 75,274
Shares and participations 1,072 2,317
Non-current financial assets 3,190 3,577
Other non-current receivables 1,819 996

Total non-current assets

109,546 100,093
Operating receivables and inventories 31,077 29,736
Current financial assets 536 401
Non-current assets held for sale 32 1,937
Cash and cash equivalents 3,785 2,118

Total current assets

35,430 34,192

Total assets

144,976 134,285

Equity

Owners of the parent 63,271 59,706
Non-controlling interests 4,540 1,993

Total equity

67,811 61,699

Liabilities

Provisions for pensions 2,548 4,820
Other provisions 10,531 9,207
Non-current financial liabilities 28,703 24,077
Other non-current liabilities 593 1,022

Total non-current liabilities

42,375 39,126
Current financial liabilities1) 10,009 10,105
Other current liabilities 24,781 23,355

Total current liabilities

34,790 33,460

Total liabilities

77,165 72,586

Total equity and liabilities

144,976 134,285
1)Committed credit lines amount to SEK 18 186m of which unutilized SEK 18 186m.
Debt/equity ratio 0.50 0.54
Visible equity/assets ratio 44% 44%
Return on capital employed 10% 8%
Return on equity 9% 9%

Excluding items affecting comparability:

Return on capital employed 11% 10%
Return on equity 11% 12%
Equity per share, SEK 96 88
Capital employed 101,730 94,762
- of which working capital 7,740 7,125
Provisions for restructuring costs are included in the balance sheet as follows:
- Other provisions* 416 616
- Operating liabilities 786 630
*) of which, provision for tax risks 292 482
Net debt 33,919 33,063
Total Equity 67,811 61,699

NET SALES

SEK m   1312   1212   2013:04:00   2013:03:00   2013:02:00   2013:01:00
Personal Care 29,736 29,084 7,578 7,382 7,475 7,301
Tissue 48,096 43,476 12,357 11,910 11,930 11,899
Forest Products 15,525 18,283 3,646 3,843 3,788 4,248
Other 95 1,240 -4 -2 26 75
Intra-group deliveries -579 -2,854 -157 -131 -100 -191
Total net sales 92,873 89,229 23,420 23,002 23,119 23,332

OPERATING PROFIT

SEK m   1312   1212   2013:04:00   2013:03:00   2013:02:00   2013:01:00
Personal Care 3,519 3,437 859 880 902 878
Tissue 5,724 4,778 1,601 1,524 1,333 1,266
Forest Products3) 1,843 1,363 916 420 250 257
Other -705 -538 -213 -199 -207 -86
Total operating profit 1) 10,381 9,040 3,163 2,625 2,278 2,315
Financial items -1,061 -1,323 -272 -283 -227 -279
Profit before tax 1) 9,320 7,717 2,891 2,342 2,051 2,036
Tax -2,639 -737 -933 -656 -524 -526
Net profit for the period from disposal group 0 503 0 0 0 0
Net profit for the period 2) 6,681 7,483 1,958 1,686 1,527 1,510
 
1) Excluding items affecting comparability before tax amounting to: -1,239 -2,614 -215 -233 -373 -418
2) Excluding items affecting comparability after tax amounting to: -820 -2,241 -45 -172 -297 -306
3) Including effects of forest swaps, Forest Porducts before tax 583 91 455 7 0 121

OPERATING MARGIN

%   1312   1212   2013:04:00   2013:03:00   2013:02:00   2013:01:00
Personal Care 11.8 11.8 11.3 11.9 12.1 12
Tissue 11.9 11 13 12.8 11.2 10.6
Forest Products 11.9 7.5 25.1 10.9 6.6 6

CONSOLIDATED INCOME STATEMENT

SEK m   2013:04:00   2013:03:00   2013:02:00   2013:01:00
Net sales 23,420 23,002 23,119 23,332
Cost of goods sold -17,512 -17,028 -17,339 -17,706
Gross profit 5,908 5,974 5,780 5,626
Sales, general and administration -2,831 -3,424 -3,540 -3,327
Items affecting comparability -215 -233 -373 -418
Share of profits of associates 86 75 38 16
Operating profit 2,948 2,392 1,905 1,897
Financial items -272 -283 -227 -279
Profit before tax 2,676 2,109 1,678 1,618
Taxes -763 -595 -448 -414
Net profit for the period from disposal group 0 0 0 0
Net profit for the period 1,913 1,514 1,230 1,204

This information was brought to you by Cision http://news.cision.com

Contacts

SCA
Johan Karlsson
Vice President Investor Relations
+46 8 788 51 30
or
Boo Ehlin
Vice President Media Relations
+46 8 788 51 36

Sharing

Contacts

SCA
Johan Karlsson
Vice President Investor Relations
+46 8 788 51 30
or
Boo Ehlin
Vice President Media Relations
+46 8 788 51 36