Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — UBS Consumer Conference Boston 2015
21 slides from Svenska Cellulosa AB SCA Class A's conference presentation, March 2015
Slide 1: UBS conference in Boston
UBS conference in Boston Fredrik Rystedt, Executive Vice President and CFO
Slide 2: SCA Group
SCA Group Leading global hygiene and forest products company Sales of SEK 104 billion in 2014 44,000 employees Sales in about 100 countries #1 or #2 positions in about 90 countries Strong brands; TENA and Tork are leading global brands for incontinence products and AfH tissue China’s t
Slide 3: Leading Market Positions
Leading Market Positions Globally and Regionally North America Nordic region Incontinence products: 3 Incontinence products: 1 Europe AfH tissue: 3 Baby diapers: 1 Tissue: 1 AfH tissue: 1 Incontinence products: 1 Mexico Consumer tissue: 2 Baby diapers: 2 Incontinence products: 1 Feminine care: 2 Fem
Slide 4: SCA Group: 2014 Sales and Operating Profit by Business Area
SCA Group 2014 Sales and Operating Profit by Business Area Sales Personal Care Forest Products Operating Profit 28% Operating Profit 16% 20% 30% Tissue 54% Operating Profit 52% March 2015 4
Slide 5: Personal Care and Tissue
Personal Care and Tissue 2014 Sales by Product Segment Personal Care Tissue Feminine care Incontinence Consumer tissue products 62% branded 18% 36% AfH tissue 52% 30% 64% Baby diapers 73% branded March 2015 5
Slide 6: Forest Products
Forest Products 2014 Sales by Product Segment LWC paper Kraftliner 16% 24% Newsprint 10% Timber 4% 15% 31% Pulp Solid-wood products March 2015 6
Slide 7: SCA's Priorities
SCA’s Priorities EFFICIENCY INNOVATION GROWTH March 2015 7
Slide 8: Efficiency Programs
Efficiency Programs Cost Savings Hygiene business cost and efficiency program Blueprint implementation in all sites Scale effects for sourcing realized Warehouse efficiency programs Earnings Improvement Forest Products efficiency program Closure of two saw mills Rationalization of maintenance organi
Slide 9: Efficiency Programs: Examples of improvements
Efficiency Programs Examples of improvements March 2015 9
Slide 10: Innovations and Product Launches 2014
Innovations and Product Launches 2014 March 2015 10
Slide 11: Market Drivers
Market Drivers Good growth opportunities Global population growth An aging population Increased market penetration Higher disposable income Customers and consumers demand more comfort and sustainability March 2015 11
Slide 12: Aging Population
Aging Population Total population over 60 years exceeding 1bn by 2020 Millions aged over 60 years old 1 200 +25% 1 000 800 600 400 +30% +13% 200 +22% 0 Total world Europe China USA 2013 2020 March 2015 12
Slide 13: Incontinence Products
Incontinence Products Prevalence of Incontinence % of world’s population affected by incontinence, 2013 20% 15% 10% 5% 0% 0-19 years 20-29 years 30-64 years 65+ years Incontinence affects 4-8% of the world’s population, approximately 400 million people globally affected by incontinence Source: Data
Slide 14: Usage of Hygiene Products
Usage of Hygiene Products High potential in markets with low penetration Incontinence Products Baby Diapers Feminine Care Tissue North America Western Europe Eastern Europe Latin America Asia March 2015 14
Slide 15: SCA Group: Sales and Operating Profit
SCA Group Sales and Operating Profit Sales Operating Profit* SEKm SEKm 120 000 15 000 80 000 10 000 40 000 5 000 0 0 2012 2013 2014 2012 2013 2014 * Excluding items affecting comparability March 2015 15
Slide 16: Mature markets and Emerging markets
SCA Group Mature markets and Emerging markets 2012 2014 Share of Net Sales Share of Net Sales 24% 31% Operating Margin 2012 2013 2014 69% 76% Mature markets 10.9% 12.3% 13.5% Emerging markets 7.7% 7.7% 6.4% Share of Operating Profit Total Group 10.1% 11.2% 11.4% Share of Operating Profit 19% 17% Eme
Slide 17: SCA Group ROCE 2014
SCA Group ROCE* 2014 Mature markets and Emerging markets *Return on capital employed excluding items affecting comparability March 2015 17
Slide 18: Financial Targets
Financial Targets Business areas Sales growth* ROCE** Personal Care 5-7% 30% Tissue 3-4% 15% Forest Products in line with market in top quartile Group Debt/Equity 0.70 Debt payment capacity above 35% Dividend policy 1/3 of cash flow from current operations * Annual organic sales growth ** Return on
Slide 19: Summary 2014
Summary 2014 Highest profit before tax ever Good organic sales growth Strong growth in emerging markets Strong cash flow Higher sales and profits in all business areas Continued work with efficiency Introduced about 30 innovations and product launches - Libero, Libresse, Lotus, Saba, Tempo, TENA and
Slide 20: Group: 2014 vs. 2013
Group 2014 vs. 2013 Sales Organic Sales Growth Operating Profit* SEK SEK 104,054m +3% 11,849m +12% +14% Operating Margin* EPS Operating Cash Flow SEK 11.4% SEK 9.40 11,184m +20 bp +19% +26% * Excluding items affecting comparability and including gains on forest swaps of SEK 336m (583) before tax Mar
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