Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Deutsche Bank Conference Paris 2016
25 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Jun 16, 2016
Slide 1: Deutsche Bank Conference
Deutsche Bank Conference Fredrik Rystedt, Executive Vice President and CFO
Slide 2: SCA – a Leading Global Hygiene and Forest Products Company
SCA – a Leading Global Hygiene and Forest Products Company June 16, 2016 Deutsche Bank Conference Paris 2
Slide 3: SCA in Brief
SCA in Brief 115 13 SEK billion in net sales 2015 SEK billion in operating profit* 2015 Presence in approximately Number of employees 100 *Excluding items affecting comparability countries 44,000 June 16, 2016 Deutsche Bank Conference Paris 3
Slide 4: Sales by Business Area 2015
Sales by Business Area 2015 Forest Net Sales Products 15% Tissue 55% 30% Personal Care June 16, 2016 Deutsche Bank Conference Paris 4
Slide 5: Global Market Positions
Global Market Positions Incontinence Products: 1 AfH Tissue: 1 Consumer Tissue: 2 Baby Diapers: 4 Feminine Care: 5 June 16, 2016 Deutsche Bank Conference Paris 5
Slide 6: Favorable Market Trends
Favorable Market Trends Increasing Global population growth disposable income An aging population Increased insight that good hygiene improves health and well-being June 16, 2016 Deutsche Bank Conference Paris 6
Slide 7: Usage of Hygiene Products
Usage of Hygiene Products High potential in markets with low penetration North America Western Europe Eastern Europe Latin America Asia Data is based on market data and SCA’s estimates. June 16, 2016 Deutsche Bank Conference Paris 7
Slide 8: Global Hygiene Market Size and Growth
Global Hygiene Market Size and Growth Bubble size: Market size CAGR* 2015 - 2020 Russia € 2 bn North Western CAGR ~9% Europe Eastern America € 18bn Europe € 27bn € 3bn Asia ~1% ~3% ~2% € 30bn ~7% Africa € 7bn LATAM ~7% € 10bn ~6% Australia € 1bn ~2% * Expected CAGR (Compound Annual G
Slide 9: Global Hygiene Market 2015
Global Hygiene Market 2015 Higher market growth in Emerging Markets Market size 2015: EUR 47bn Market size 2015: EUR 52bn Market growth CAGR* 2015-2020: ~5-7% Market growth CAGR* 2015-2020: ~1-2% * Expected CAGR (Compound Annual Growth Rate) Data is based on market data and SCA’s estimates J
Slide 10: SCA Performance
SCA Performance * Excluding items affecting comparability June 16, 2016 Deutsche Bank Conference Paris 10
Slide 11: Dividend and Total Shareholder Return
Dividend and Total Shareholder Return June 16, 2016 Deutsche Bank Conference Paris 11
Slide 12: SCA Creates Value
SCA Creates Value SCA Creates Value 8 Enhancing Value Creation Return above Invest for Grow where Increase return Cost of Capital future growth return is high Innovation Innovation Innovation Investments in Efficiency Improve portfolio mix Emerging Markets improvements and market activities Continue
Slide 13: Financial Group Targets
Financial Group Targets Return on Organic Sales Capital Structure Capital Employed Growth & Dividend Group: 13% Annual organic sales growth: Effective capital structure Maintain a solid investment Business area: Personal Care: 5–7% grade rating Personal Care: 30% Tissue: 15% Tissue: 3–4%
Slide 14: Organic Sales Growth
Organic Sales Growth Outcome vs. Targets June 16, 2016 Deutsche Bank Conference Paris 14
Slide 15: Return on Capital Employed
Return on Capital Employed Outcome* vs Targets * Excluding items affecting comparability June 16, 2016 Deutsche Bank Conference Paris 15
Slide 16: Strategic Priorities
Strategic Priorities Profitable Growth Innovation Efficiency Increasing efficiency in the entire value chain June 16, 2016 Deutsche Bank Conference Paris 16
Slide 17: Profitable Growth
Profitable Growth Maximize the core by investing in winning markets Top 20 Up-and- Develop, Export coming Cure or Kill Profitable Invest and Develop Profitability market share grow for the stars, and low risk growth long term turnaround or exit poor performers June 16, 2016 Deutsche Bank Conference
Slide 18: Profitable Growth
Profitable Growth Expanding the core Scale up Grow Solutions & Explore New Soaps & Categories Wipes Services To ”New Core” June 16, 2016 Deutsche Bank Conference Paris 18
Slide 19: Profitable Growth
Profitable Growth Win in Digital Digital Digital Digital Capabilities Channels Products Global digital Excellence in Tork EasyCube operating e-commerce & TENA Identifi model and capabilities e-marketing June 16, 2016 Deutsche Bank Conference Paris 19
Slide 20: Innovation
Innovation Around 30 innovations/product launches in 2015 June 16, 2016 Deutsche Bank Conference Paris 20
Slide 21: Efficiency
Efficiency Supply Chain Go to Market Best Practice Efficiencies Excellence Sharing with Value Stream Mindset June 16, 2016 Deutsche Bank Conference Paris 21
Slide 22: Other Key Activities
Other Key Activities Support the success of Vinda expansion in Asia Secure integration of Wausau Paper Investing in Östrand pulp mill expansion Creating two divisions; Hygiene and Forest Products June 16, 2016 Deutsche Bank Conference Paris 22
Slide 23: Group
Group Q1 2016 vs. Q1 2015 Sales Organic Sales Growth Operating Profit* SEK SEK 28,177m 3% 3,247m +1% +13%** Operating Margin* EPS Operating Cash Flow SEK 11.5% SEK 2.74 2,735m +120bp 13% +40% * Excluding items affecting comparability ** Excluding items affecting comparability, currency translation e
Slide 24: Q&A
Q&A June 16, 2016 Deutsche Bank Conference Paris 24
Slide 25: Slide 25