Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Deutsche Bank Paper Seminar (November 2011)
21 slides from Svenska Cellulosa Ab Sca Class A's conference presentation, Nov 8, 2011
Slide 1: Deutsche Bank paper seminar
Deutsche Bank paper seminar Lennart Persson, CFO 1 8 November 2011
Slide 2: SCA Group
SCA Group A global hygiene products and paper company Net sales SEK 107bn 45,000 employees and sales in more than 100 countries World’s third largest hygiene products company TEN and Tork leading global brands for incontinence care and Away-From-Home tissue Europe’s largest private forest
Slide 3: SCA Group – Sales split 2010
SCA Group Sales split 2010 Forest Products Sales split Personal Care 16% 24% 24% 36% Packaging Tissue 3 8 November 2011
Slide 4: Leading market positions
Leading market positions Global and regional 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 Incontinence care: 1 Solid-wood products: 2 Tissue: 2 Feminine care: 1 Baby diapers: 3 Global Inco
Slide 5: Strong global and regional brands
Strong global and regional brands Two global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America Sales of SEK 65bn, with sales in more than 100 countries 5 8 November 2011
Slide 6: Strategic focus areas
Strategic focus areas Cost reductions in all Efficiency programs in Personal Care SCA Group 5%* business areas of close Packaging and Forest Thin baby diaper Personal Care 2%** to SEK 1bn*** Products TENA Ultra thins Emerging Markets 10%** Cash flow from current Supply Chain St
Slide 7: Strategic focus – Packaging
Strategic focus Packaging Focus capital on profitable segments Increase value content Managing the Cycle & Lowering cost base - Price management - Eliminate problem businesses - LEAN project Integrate the business - One Company - Paper Supply Platform Customer focus - Quality and Service -
Slide 8: Strategic focus – Forest Products
Strategic focus Forest Products Shift toward more value-added products Utilize the potential for energy production Continued productivity improvements Greater raw material integration Gradual expansion of the pulp operation 8 8 November 2011
Slide 9: Strategic focus – Hygiene businesses
Strategic focus Hygiene businesses Strengthen positions and increase growth in main markets and emerging markets Increase the number of global brands Increase the pace of innovations Efficiency improvements 9 8 November 2011
Slide 10: Innovation for profitable growth
Innovation for profitable growth Meet changing demands and requirements Create long-term, profitable differentiation Strengthen market positions Build stronger brands Drive growth 10 8 November 2011
Slide 11: Growth potential for hygiene products
Growth Growth potential for hygiene products Global population growth An aging population Increased market penetration Higher disposable income Customers and consumers demand more comfort and sustainability 11 8 November 2011
Slide 12: 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 Penetration in mature markets around 35% North America Western Europe Eastern Europe Latin America Asia 12 8 November 2011
Slide 13: SCA's growth markets
Growth SCA’s growth markets Latin America Strong SCA positions South East Asia Good market growth Favourable socio-demographics Eastern Europe /Russia Good market growth Middle East Favourable socio-demographics China Incontinence care products 13 8 November 2011
Slide 14: Sustainability as a business driver
Sustainability as a business driver Reduced cost ESAVE = SEK 600m in annual cost savings Improved competitive edge Sustainability credentials generate good business Great growth potential through customized offerings in D&E markets Renewable energy, wind power, biofuels World’s largest
Slide 15: Forest – A valuable asset
Forest A valuable asset Europe’s largest private forest owner – FSC certified Annual net growth of 1% Raw material integration and potential for electricity generation Our forests absorb as much carbon dioxide as is discharged from SCA’s entire production 15 8 November 2011
Slide 16: Summary – 9M 2011 vs 9M 2010
Summary – 9M 2011 vs 9M 2010 Sales increased 6%* Hygiene business Higher volumes and prices Good growth in emerging markets • Personal care, 12%** • Tissue, 10%** Packaging and Forest Products Packaging volumes increased 3%*** • Corrugated prices increased12% Publication paper volumes
Slide 17: Summary - Q3 2011 vs. Q2 2011
Summary - Q3 2011 vs. Q2 2011 Group Sales increased 1% Higher prices EBIT increased 13%* Higher prices Raw material costs increased SEK 280m Profit before tax increased 11%* Business areas Personal Care, EBIT increased 18%* Higher prices and volumes Higher raw material costs
Slide 18: Restructuring program
Restructuring program Annual EBIT savings Total cost SEK 1,400m SEK 700m Gradual impact during Write down Cash 2012 - 2013 expenditure SEK 500m SEK 900m Q3 2011 costs Headcount reduction SEK 350m approximately 2,000 employees 18 8 November 2011
Slide 19: Outlook 2011
Outlook 2011 Uncertainty in global economy. So far no negative impact on our business. Slight price decreases on raw material. Price increases in parts of our Hygiene business. 19 8 November 2011
Slide 20: Q&A
Q&A 20 8 November 2011
Slide 21: IR Contacts
IR Contacts: Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor Relations Tel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: ir@sca.com Website: www.sca.com 21 8 November 2011