Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Nordea Consumer goods large cap conference 2009
30 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Nov 25, 2009
Slide 1: Nordea Consumer goods large cap conference 2009
Nordea Consumer goods large cap conference 2009 Mats Berencreutz, President Tissue Europe Bodil Eriksson, SVP Corporate Communications 1 25 November 2009
Slide 2: SCA – a global hygiene products and paper company
SCA – a global hygiene products and paper company Net sales of SEK 110bn 52,000 employees and sales in 90 countries TEN and Tork leading global brands for incontinence care and Away From Home tissue Ranked 2nd greenest company in the world (2007), one of the world’s 100 most sustainable comp
Slide 3: SCA Group
SCA Group Sales and EBIT split 9M 2009 EBIT split EBIT split Forest Products Sales split Personal Care 25% 31% 15% 23% 25% 37% 4% 40% Packaging Tissue 3 25 November 2009
Slide 4: Q3 2009 SCA business market update
Q3 2009 SCA business market update Hygiene business Stable demand for Personal Care and Tissue Continued growth in emerging markets Packaging and Forest Products Liner price increases Stabilized demand on low level for Packaging Increased demand for publication papers and solid-wood produc
Slide 5: Coping recession
Coping recession Net sales and Operating profit SEKm SEKm ** * *Excluding SEK 439m Packaging restructuring costs **Excluding SEK 387m Packaging restructuring costs 5 25 November 2009
Slide 6: SCA Group Strategic Direction
SCA Group Strategic Direction 1. 2. 3. 6 25 November 2009
Slide 7: SCA leading hygiene
SCA leading one of three hygiene companies worldwide 7 25 November 2009
Slide 8: Strong global and regional positions
Strong global and regional positions Nordic region Baby diapers: 1 North America Europe AFH tissue: 3 Tissue: 1 Incontinence care: 3 Corrugated board: 2 Baby diapers: 2 Incontinence care: 1 Mexico Privately owned forests: 1 Hygiene products: 2 Global Incontinence care: 1 Colombia AFH tissue: 3 Incon
Slide 9: Hygiene products
Hygiene products Sales split Away-From- Incontinence Home tissue care 22% 21% Baby 11% diapers 40% 6% Consumer tissue Feminine care Sales 2008: SEK 62bn 9 25 November 2009
Slide 10: Clear focus on chosen growth regions
Clear focus on chosen growth regions 10 25 November 2009
Slide 11: Focus on our growth markets
Focus on our growth markets • Meeting growing demand in Russia: Personal care and Tissue • Market tests of Baby diapers and Incontinence care products in China • Continued growth of Baby • Greenfield plant in diapers Southeast Asia Mexico addressing Tissue profitability • Launch of Feminine care pro
Slide 12: Growth
Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year Penetration in mature markets around 35% North America Western Europe Eastern Europe Latin America Asia 12 25 November 2009
Slide 13: Aspects on innovation - part of our new agenda
Aspects on innovation - part of our new agenda NEW CORE FUNCTIONAL FUNCTIONAL DESIGN RENOVATION TO VALUE OPTIMIZATION VALUE CATEGORY CAPTURE EXPANSION 13 25 November 2009
Slide 14: Opportunities for value creation
Personal Care Opportunities for value 14 creation 25 November 2009
Slide 15: Personal Care
Personal Care Short term focus Feminine care 16% Full focus on growing Tena Incontinence care Improving Baby profitability in Europe 55% Continued growth in Latin America and South East Asia Drive innovation Retail Baby diapers 29% Sales 2008: SEK 23.3bn 15 25 November 2009
Slide 16: TENA – A true success story
TENA A true success story Emerging markets Annual sales growth 1988-2008: 11% North America EURm Design Internet South Europe TV Retail North Reimbursement Europe New products & services 16 25 November 2009
Slide 17: Enhanced value creation
Enhanced value creation For both nursing homes and SCA Total costs of a typical nursing home: 1% the cost of inco products 10-15% the cost of inco care TENA Services helps locate, coach and monitor inco care improvements to: Make inco care less intrusive Lighten carer workloads Less
Slide 18: Opportunities for value creation
Tissue Opportunities for value 18 creation 25 November 2009
Slide 19: Tissue
Tissue Short term focus AFH tissue Consumer tissue 36% 64% Price management Cost and efficiency Brand migration Europe Drive innovation Sales 2008: SEK 38.4bn 19 25 November 2009
Slide 20: Lift and Shift
Lift and Shift Tissue Europe Lift Shift Sourcing Excellence FacilityService Facility ServicePartnership Partnership Service Level Brandexpansion Brand expansionSouth South Supply Chain Excellence CategoryLeadership Category Leadership Price Management and “Go Converttextile Convert textile To Market
Slide 21: Integration of acquired business
Integration of acquired business Consumer Tissue Europe Commercial synergies Cost synergies Front loaded synergies related to sales force and category resources Supply chain restructuring synergies Supply chain integration Commercial Optimizing logistics and internal Synergies 40% 42% replenishm
Slide 22: Tissue Europe Aspiration
Tissue Europe Aspiration To To be be the the undisputed undisputed Tissue Tissue Category Category Leader Leader in in Europe, Europe, and and the the preferred preferred choice choice for for European European consumers consumers and and customers customers 22 25 November 2009
Slide 23: New European Brand positioning
New European Brand positioning Brand clusters based on consumer needs PERSONAL HYGIENE OBJECT HYGIENE “Products that touch my body” “Products that tidy & clean surfaces” 23 25 November 2009
Slide 24: Innovation & Category Expansion
Innovation & Category Expansion Pampering Hygiene Systems Wellness NEW EMOTIONAL NEW Health Convenience Aesthetics Environmental Cold Care Hanky Relieving Hygienic Impregnated Wipes Cleaning Lotion Tissues Caring Consumer Needs Moist Tissues Tidying & Dispensers Washing Cleaning Toilet Tissue Hanky
Slide 25: European Brand Strategy
European Brand Strategy Complicated, region specific, Focused, differentiated & consumer inefficient brand portfolio relevant mega-brand portfolio DACH East Nordic NL From … … To 25 25 November 2009
Slide 26: Personal Hygiene
Personal Hygiene Tempo Expansion 2-step expansion programme Extend the current Hanky / Facial Extend the brand into new segments, range: Toilet Tissue: New, distinctive cold care product New, distinctive 3- and 4- ply products Unique combination of transferable High quality combination of so
Slide 27: AFH Tissue Europe
AFH Tissue Europe Mature markets Focus on premium sales Grow faster than the market Emerging markets Achieve 20% market share Double the business in Eastern Europe 27 25 November 2009
Slide 28: AFH Tissue Go-to-Market approach
AFH Tissue Go-to-Market approach Service Providers Cleaners Pull Caterers effect Others End-users Producer Trade & Health Service Care Distributors Push Public Admin. Specialists & Services Pull effect Generalists Others HoReCa Industry 28 25 November 2009
Slide 29: Q&A
Q&A 29 25 November 2009
Slide 30: 25 November 2009
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