Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Deutsche Bank Conference 2009
26 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Nov 11, 2009
Slide 1: Deutsche Bank Conference
Deutsche Bank Conference 11 November 2009 Jan Johansson, President and CEO 11 November 2009
Slide 2: Get to know SCA
Get to know SCA 2 11 November 2009
Slide 3: 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 4: 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 Sales 9M 2009: SEK 83.4bn 4 11 November 2009
Slide 5: 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 6: SCA short term focus and result
SCA short term focus and result 6 11 November 2009
Slide 7: SCA Group Strategic Direction
SCA Group Strategic Direction 1. 2. 3. 7 11 November 2009
Slide 8: Cash flow
Cash flow Strong improvement in cash flow from current operations SEKm 8 11 November 2009
Slide 9: Reduced net debt
Reduced net debt And improved debt payment capacity SEKm % 32% 33% 25% 9 11 November 2009
Slide 10: First nine months 2009
First nine months 2009 General market update Hygiene businesses Stable demand in mature markets Continued growth in emerging markets Packaging and Forest Products Weak demand for packaging • Western European demand -9%* Liner inventories continued down Weak demand for publication paper
Slide 11: 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 12: Coping recession
Coping recession Net sales and Operating profit SEKm SEKm ** * *Excluding SEK 439m Packaging restructuring costs **Excluding SEK 387m Packaging restructuring costs 12 11 November 2009
Slide 13: Q3 2009 results
Q3 2009 results SEK millions Q3 Q3 Change, Q2 unless otherwise stated 2009 2008 % 2009 Net sales 27,108 27,438 -1 27,915 EBIT* 2,576 2,046 26 2,368 EBIT margin (%)* 9.5 7.5 8.5 Profit before tax* 2,199 1,438 53 2,014 Earnings per share (SEK) 1.82 1.78 2 1.66 Cash flow from current operations 4,259 1
Slide 14: Personal Care
Personal Care 6,197 5,807 7% Sales increased by 7% and EBIT by 10% Full focus on growing Tena Improving Baby profitability in Europe SALES SEKm Q3 2009 Q3 2008 Continued growth in Latin America and Southeast Asia 810 734 10% EBIT SEKm Q3 2009 Q3 2008 EBIT margin 13.1% 12.6% 14 11 November 20
Slide 15: Tissue
Tissue 10,147 9,642 5% Sales increased by 5%, EBIT by 74% Price management Cost and efficiency SALES SEKm Q3 2009 Q3 2008 Brand migration Europe 1,102 74% 633 EBIT SEKm Q3 2009 Q3 2008 EBIT margin 10.9% 6.6% 15 11 November 2009
Slide 16: Packaging
Packaging Sales decreased 10%*, EBIT by 46% 8,400 6,946 Restructuring program on plan -10%* Production downtime 75,000 tonnes SALES SEKm Q3 2009 Q3 2008 Restructuring program on plan Costs: SEK 387m Savings: SEK 148m year to date 319 172** -46%** EBIT SEKm Q3 2009 Q3 2008 EBIT margin 2.5
Slide 17: Packaging: addressing cost and efficiency needs
Packaging Addressing cost and efficiency needs…. Current status Closed New Hythe testliner mill Closed 9 of 11 corrugated units Employee reduction: 1,040 of 2,200 Costs: SEK 826m of SEK 1.7bn Savings: SEK 148m of SEK 1,070m Delivering according to plan 17 11 November 2009
Slide 18: Forest Products
Forest Products 4,145 3,956 5% Sales increased 5%, EBIT by 28% Publication papers, sales increased • Higher prices Solid-wood products, sales increased • Higher volumes SALES SEKm Q3 2009 Q3 2008 Good performance in publication paper in a 617 weak market 28% 481 Increased prices for solid
Slide 19: Market trends and SCA strategic considerations
Market trends and SCA strategic considerations 19 11 November 2009
Slide 20: Competitive landscape
Competitive landscape Segments and Arenas Hygiene Forest Products and Packaging Continued consolidation Need for consolidation Growing BRICIT market Structural changes Expanding value offering Capacity still an issue Strong focus on innovation New capacity Global and scalable brand
Slide 21: SCA Group Strategic Direction
SCA Group Strategic Direction 1. 2. 3. 4. 21 11 November 2009
Slide 22: 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 22 11 November 2009
Slide 23: 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 24: Outlook 2009
Outlook 2009 Group Demand on similar level Higher raw material and energy costs Hygiene businesses Stable demand High promotion activities Packaging Increasing liner prices Continued weak demand Forest Products Weak demand for publication papers Increasing prices for solid-wo
Slide 25: Q&A
Q&A 25 11 November 2009
Slide 26: 11 November 2009
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