Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A

Svenska Cellulosa AB SCA Class A — SCA — Handelsbanken Seminar 2009

27 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Mar 5, 2009

  1. Slide 1: Handelsbanken Seminar

    Handelsbanken Seminar 5 March 2009 Ulf Larsson, President Forest Products 1 Handelsbanken 5 March 2009

  2. Slide 2: SCA – a global hygiene-products and paper company

    SCA – a global hygiene-products and paper company ƒ Net sales of SEK 110 bn ƒ 52,000 employees and sales in 90 countries ƒ TEN and Tork leading global brands for incontinence care and Away From Home tissue ƒ Ranked 2nd greenest company in the world (2007), one of the world’s 100 most sustainable com

  3. Slide 3: Sales split

    Sales split Forest Products Personal Care 15% 21% 30% 34% Packaging Tissue Sales 2008 SEK: 110bn 3 Handelsbanken 5 March 2009

  4. Slide 4: Summary FY 2008

    FY 2008 Summary Group ƒ Sales growth of 4% ƒ Hygiene sales growth in emerging markets of 16% ƒ EBIT decline of 13%* ƒ Improved price/mix and higher volumes did not compensate for increased raw material and energy cost (SEK 3.5bn) Business areas ƒ Strong sales and profit growth in Tissue ƒ Strong sal

  5. Slide 5: Different focus in the business groups

    Different focus in the business groups Packaging & Hygiene Hygiene Products Products Forest Products • Personal Care • Capitalize Tissue on growth Cash flow generation/ opportunities Asset base efficiency Higher value in Focus on value mature segments added offerings Increased shareholder value 5 Ha

  6. Slide 6: Strong global and regional positions

    Strong global and regional positions Nordic region Baby diapers: 1 Europe North America Tissue: 1 AFH tissue: 3 Corrugated board: 2 Baby diapers: 2 Incontinence care: 1 Privately owned forests: 1 Mexico Global Hygiene products: 2 Incontinence care: 1 AFH tissue: 3 Colombia Incontinence care: 1 Austr

  7. Slide 7: Growth: High growth in emerging markets

    Growth High growth in Emerging markets 2008 Emerging markets hygiene sales growth: Personal Care: +15% Tissue: +18% % of Hygiene sales in 1998 % of Hygiene sales in 2008 5% Emerging markets Emerging markets 25% Mature markets Mature markets 7 Handelsbanken 5 March 2009

  8. Slide 8: Growth: High potential in markets with low penetration

    Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year Potential to grow the Incontinence usage on mature markets with >30% North America Western Europe Eastern Europe Latin America Asia 8 Handelsbanken 5 Mar

  9. Slide 9: Hygiene Categories

    Hygiene Categories Strategic focus Inco Fempro Baby AFH CT Strengthen • Leading positions in European home market (market share and value) • Profitability Consumer Tissue (EU, Mexico, Australia) • Innovations and speed to market Grow • Prioritized growth markets • Eastern Europe/Russia • Latin Ameri

  10. Slide 10: Today’s situation

    Today’s situation 10 Handelsbanken 5 March 2009

  11. Slide 11: Packaging

    Packaging ƒ Full-service packaging provider ƒ Europe’s second largest supplier of 14% corrugated packaging 16% ƒ Strategy to increase value content 70% ƒ Main customers are companies within the fast moving consumer goods and industrial segments Conventional Packaging Consumer Packaging Other *Adjust

  12. Slide 12: Packaging: Short term action focus

    Packaging Short term action focus ƒ Optimizing current asset base ƒ Increased efficiency and cash flow ƒ Cost reduction ƒ Evaluate need for capacity closures 12 Handelsbanken 5 March 2009

  13. Slide 13: Forest products: Business overview

    Forest products Business overview ƒ Supplier of publication papers 11% ƒ Europe's largest private owner of 14% 36% forestland, 2.6 million hectares 22% ƒ Supplier of pulp 6% 17% ƒ Supplier of solid-wood products ƒ Main customer segments: SC / LWC paper Timber publishers and printers, wood Newsprint

  14. Slide 14: Forest Products: Market outlook 2009

    Forest Products Market outlook 2009 ƒ Publication paper ƒ Weaker demand ƒ Closures and curtailments ƒ Price increases ƒ Solid-wood products ƒ No recovery is expected in the market until the end of 2009 ƒ Closures and curtailments ƒ Prices stabilizing 14 Handelsbanken 5 March 2009

  15. Slide 15: Forest Products: Improvement projects

    Forest Products Improvement projects Increased capital efficiency Increased cash flow Reduced cost Annualized effect EBIT 84 2009Q1 ~ 100 SEKm improvement projects EBIT identified and 2009Q4 ~ 200 SEKm under implementation WC 2009Q1 > 200 SEKm 15 Handelsbanken 5 March 2009

  16. Slide 16: Strong focus on improved customer offering

    Forest Products Strong focus on improved customer offering ƒ Strategic value-adding in partnership with customers Š Window component mill in Munksund starting up production 16 Handelsbanken 5 March 2009

  17. Slide 17: Industrial sales, windows

    Forest Products Industrial sales, windows Supply-chain cost cut by product adaptation SCA Product adaptation Standard timber Industrial timber Industrial blanks 2000 SEK/m3 2500 SEK/m3 5000 SEK/m3 Supply-chain cost reduction Raw material Kilning Cross-cutting Customer processing Sorting Gluing 17 Ha

  18. Slide 18: Munksund mill volume sold before investment decision

    Forest Products The entire production volume from the Munksund mill was sold before the investment decision 18 Handelsbanken 5 March 2009

  19. Slide 19: Strong focus on improved customer offering

    Forest Products Strong focus on improved customer offering ƒ Commercializing strong environmental position Š GraphoVerde Š FSC-certified paper 19 Handelsbanken 5 March 2009

  20. Slide 20: GraphoVerde advantages

    Forest Products GraphoVerde advantages ƒ High recycled content (minimum 50 %) ƒ Reduced electricity consumption 28 % ƒ Lower CO2-emissions 22 % ƒ Cost-efficient product, with outstanding printability ƒ Efficient use of raw materials for best preservation of the environment ƒ Focus on markets close t

  21. Slide 21: Deliveries of FSC-certified paper

    Forest Products Deliveries of FSC-certified paper ƒ Dramatic increase of FSC-certified deliveries 21 Handelsbanken 5 March 2009

  22. Slide 22: Wind power project

    Forest Products Wind power project SCA – Statkraft project ƒ Production of 2,800 GWh electricity per year, equal to SCA’s consumption in Sweden ƒ 500 windmills in six locations in northern Sweden ƒ Ownership Š SCA 40% Š Statkraft 60% ƒ Wind power project – prerequisite for long term agreement on ele

  23. Slide 23: Forest Products: Short term action focus

    Forest Products Short term action focus ƒ Continued focus on productivity ƒ Strong customer offers ƒ 84 improvement projects strengthening earnings and cash flow 23 Handelsbanken 5 March 2009

  24. Slide 24: SCA Group: Sensitivity analysis

    SCA Group Sensitivity analysis Energy and EBIT raw material Change impact* ƒ Energy 10% SEK 750m ƒ Wood 10% SEK 190m ƒ Recycled fibre 10% SEK 670m ƒ Pulp 10% SEK 620m Pre-tax profit Finance net Change impact* ƒ Interest rate 1%-point SEK 450m EBIT Currency** Change Impact* ƒ SEK 10% SEK 1,600m ƒ EUR

  25. Slide 25: SCA Group: Short and medium term direction

    SCA Group Short and medium term direction COST AND CAPITAL CASH FLOW EFFICIENCY INNOVATIONS ƒ Innovation as prioritized business driver ƒ Higher cash flow ƒ Strengthening European positions ƒ More concentrated geographical growth ƒ ROCE of 13% ƒ Consolidation needed 25 Handelsbanken 5 March 2009

  26. Slide 26: Outlook 2009

    Outlook 2009 Outlook 2009 ƒ Hygiene businesses Š Continued positive development Positive Š Still good demand despite downturn in economy Š Good growth in emerging markets ƒ Packaging Š Earnings will decrease if the negative Negative demand continues ƒ Forest Products Š Stable development during 2009

  27. Slide 27: Handelsbanken 5 March 2009

    27 Handelsbanken 5 March 2009

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