Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Shareholder Meeting (2006)
27 slides from Svenska Cellulosa AB SCA Class A's shareholder meeting presentation, 2006
Slide 1: SCA - Annual General Meeting 2006
SCA - Annual General Meeting 2006 Jan Åström President and CEO 1
Slide 2: Agenda
Agenda Leading consumer goods and paper company Development 2005 Strategic strengths 2
Slide 3: Global consumer goods and paper company
Global consumer goods and paper company Forest Products Personal Care 15% 20% Packaging Tissue 33% 32% Sales: SEK 96 billion 3
Slide 4: Increased value content in products
Increased value content in products Percentage of sales 100% Packaging 80% 60% Hygiene products (Tissue and Personal Care) 40% Forest products 20% Other 0% 1985 2005 SCA has gradually shifted the balance towards products of a higher value content 4
Slide 5: Strong positions
Strong positions Nordic region Baby diapers: 1 USA Europe AFH-tissue: 3 Tissue: 1 Incontinence products: 3 Corrugated board: 1 Baby diapers: 2 Mexico Hygiene products: 2 Global Incontinence products: 1 Australia / New Zealand Tissue: 1 Incontinence products 1 5
Slide 6: Increased sales outside Europe
Increased sales outside Europe SCA has sales in more than 90 countries Europe 75% America Asia-Pacific 17% 7% Other countries 1% 6
Slide 7: SCA has performed well compared with other pulp and paper companies
SCA has performed well compared with other pulp and paper companies Profit before tax (excl. items affecting comparability, index) 100 SCA 80 60 40 Peer group 20 New accounting standard (IFRS) 0 2001 2002 2003 2004 2005 * Peer group comprises Holmen, StoraEnso, UPM and Norske Skog, equally weighted
Slide 8: Share price performance last five years
Share price performance last five years Total return* - index 200 +95% 160 +74% +51% 120 80 40 0 01 02 03 04 05 06 1 2 3 4 5 -0 -0 -0 -0 -0 r- r- r- r- r- r- t t t t t ap ap ap ap ap ap ok ok ok ok ok SCA Affärsvärlden Generalindex Europe pulp & paper (MSCI) * Dividends reinvested 8
Slide 9: Share price performance last twelve months
Share price performance last twelve months Total return* - index 160 +45% 140 +34% +27% 120 100 80 60 apr maj jun jul aug sep okt nov dec jan feb mar apr SCA Affärsvärlden Generalindex Europe pulp & paper (MSCI) * Dividends reinvested 9
Slide 10: Agenda
Agenda Leading consumer goods and paper company Development 2005 Strategic strengths 10
Slide 11: 2005: improvements towards year-end
2005: improvements towards year-end Lower average prices in a number of segments Extensive efficiency-enhancement program Higher energy costs Aggressive product launches Favorable sales growth, up 7% 11
Slide 12: Strong sales trend has slowed profit decline
Strong sales trend has slowed profit decline Sales, Profit before tax*, SEK bn SEK bn Sales: 100 10 Strong growth: 7% (of which 4% from acquisitions) 80 8 60 6 Profit before tax: Negative trend 40 4 mainly due to lower prices and higher 20 2 energy costs 0 0 2004 2005 * Adjusted for items affecting
Slide 13: Aggressive product launches
Aggressive product launches Personal Care Tissue Packaging Forest Products 13
Slide 14: Personal Care: strong volume growth
Personal Care: strong volume growth Change, 2005/2004 Successful product launches Favorable volume trend Higher costs for raw materials Expansion in Eastern s + 9% Europe S al e f it + 2% ratin g pr o Op e 14
Slide 15: Tissue: partnerships strengthen customer relationships
Tissue: partnerships strengthen customer relationships Change, 2005/2004 Change of negative trend after four years of price erosion Stable trend for AFH tissue in Europe, while profitability improved in the US Sharply increased energy costs + 11 % s S al e Significant efficiency enhancements
Slide 16: Packaging: a full-service supplier
Packaging: a full-service supplier Change, 2005/2004 Strong growth in strategic high- priority customers Lower average prices on corrugated board and containerboard Restructuring of production structure in Europe begun e s + 3% S al Rising energy costs Operating Strong volume and profitabi
Slide 17: Forest Products: production record for publication paper
Forest Products: production record for publication paper Change, 2005/2004 Favorable demand for publication paper and solid- wood products Rising prices for publication papers Higher energy costs had e s + 7% adverse impact on earnings S al f it + 6% ratin g pr o Op e 17
Slide 18: Extensive efficiency enhancement programs
Extensive efficiency enhancement programs Cost reductions 2005: SEK 680 M – achieved 2006: SEK 1,200 M – budgeted Measures to achieve lower costs and higher efficiency Closures Personnel reductions Investments • ~20 plants • Over 5,000 FTE • Investments in quality and efficiency Phase-outs • New
Slide 19: Agenda
Agenda Leading consumer goods and paper company Development 2005 Strategic strengths 19
Slide 20: SCA's strategic strengths
SCA’s strategic strengths Products with high value content facilitate profitable growth Regional presence u e with global cap- r v al abilities gh e H i Effective production and raw-material integration Consumer and customer focus 20
Slide 21: TENA – world leader in incontinence care
TENA – world leader in incontinence care Comprehensive offering Brand-building service / design Product Understanding development / of the Production customer’s efficiency feelings, require-ments and behavior 2121
Slide 22: New concepts for tissue used in public environments
New concepts for tissue used in public environments Partnerships with leading distributors Own design and and end-customers manufacture of dispensers Knowledge of hygiene require- Distinct ments in public product range environments 22 22
Slide 23: Customized packaging
Customized packaging SCA specializes in packaging design, form and Shelf-ready message packaging Design for exposure Transport packaging Dialogue solution with the customer 23
Slide 24: Increased number of lifestyle magazine drives growth for SCA
Increased number of lifestyle magazine drives growth for SCA The right product for the right target group Process and quality Cooperation with academic research Knowledge of the fibre 24
Slide 25: Challenges in 2006
Challenges in 2006 Drive profitable growth through improved product offerings Implement efficiency-enhancement programs Follow through on price increases in the primary segments Cope with higher costs, particularly in energy 25
Slide 26: Solid foundation for value creation
Solid foundation for value creation Consumer and customer focus High pace of product launches Cost efficiency Strong market positions and extensive geographic presence Drive profitable growth 26
Slide 27: essentials
essentials for everyday life”