27 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Oct 27, 2016
Slide 1: Interim Report Q3 2016
Interim Report ® Q3 2016
Slide 2: Magnus Groth, President and CEO
Magnus Groth President and CEO October 27, 2016 Interim Report Q3 2016 2
Slide 3: Summary Q3 2016
Summary Q3 2016 Organic sales growth 0% impacted by a challenging market situation for hygiene products and capacity reductions Hygiene business +1%, Forest Products -3%, Emerging markets +4% Good organic growth in operating profit* and increased operating margin** Strong contribution from efficienc
Slide 4: Summary Q3 2016
Summary Q3 2016 Initiated work to propose to the Annual General Meeting 2017 to decide on a split of the Group into two listed companies; hygiene and forest products Decision to implement restructuring measures at two tissue plants in France After end of Q3 2016 Decision to close baby diaper busines
Slide 5: Group
Group Q3 2016 vs. Q3 2015 Net Sales Organic Sales Growth Adjusted Operating Profit* SEK SEK 29,154m 0% 3,652m 0% +7%** Adjusted Operating Margin* EPS Operating Cash Flow SEK 12.5% SEK 3.10 4,729m +60bp +337%*** +10% * Excluding items affecting comparability ** Excluding items affecting comparability
Slide 6: SCA Group Adjusted ROCE
SCA Group Adjusted ROCE* Adjusted ROCE* 12.8% 12.8% Target 13% Q3 2015 Q3 2016 *Adjusted return on capital employed excluding items affecting comparability October 27, 2016 Interim Report Q3 2016 6
Slide 7: Innovations
Innovations Q3 2016 Tempo® Fresh To Go New Napkin Box – Classic and Pure Tork Easy Handling® Features A range of refreshing hands & face Shelf-ready packaging for quick product wet wipes for on the go, with a unique display in cash and carry stores. Simplified non-sticky formula to the extra and qui
Slide 8: Innovations
Innovations Q3 2016 Nosotras Cuidado-VTM TENA MEN A female intimate care range that Improving the visual attractiveness of provides calming and soothing relief for male pads with new top-sheet print shaved or waxed V-zone skin – creating highlighting absorption zone, new grey a lasting effect of sof
Slide 9: Fredrik Rystedt, Executive Vice President and CFO
Fredrik Rystedt Executive Vice President and CFO October 27, 2016 Interim Report Q3 2016 9
Slide 10: Net Sales
Net Sales Q3 2016 vs. Q3 2015 SEK 29,099m 0% 0% -3% +3% SEK 29,154m 0% Net Sales Price/Mix Volume Currency Acquisition Net Sales Q3 2015 Q3 2016 Organic sales growth 0% Price/Mix 0% Volume 0% October 27, 2016 Interim Report Q3 2016 10
Slide 11: Organic Sales Growth
Organic Sales Growth Group 8% 6% 4% 2% 0% -2% 2012 2013 2014 2015 Q1 Q2 Q3 2016 2016 2016 Personal Care Tissue Forest Products 8% 8% 12% 6% 6% 8% 4% 4% 4% 0% 2% 2% -4% 0% 0% -8% -2% -2% -12% 2012 2013 2014 2015 Q1 Q2 Q3 2012 2013 2014 2015 Q1 Q2 Q3 2012 2013 2014 2015 Q1 Q2 Q3 2016 2016 2016 2016 20
Slide 12: Organic Sales Growth
Organic Sales Growth Q3 2016 vs. Q3 2015 +0.4% Organic Sales +0.3% Growth Impact on Group: +0.3% -0.5% +0.4% +0.1% -0.2% -0.6% Incontinence Baby Feminine Consumer AfH Forest Products Diapers Care Tissue Tissue Products Other Group Organic Sales Growth: +2% -7% +7% +1% +2% -3% October 27, 2016 Interi
Slide 13: Adjusted Operating Profit – Group
Adjusted Operating Profit* – Group Q3 2016 vs. Q3 2015 SEK +270m SEK +20m SEK -112m SEK +63m SEK -177m SEK 3,652m SEK +115m SEK 3,471m SEK +2m +5% Adjusted Price/Mix Volume Raw Energy Currency Acquisition Other Adjusted Operating Material Operating Profit Profit Q3 2015 Q3 2016 * Excluding items aff
Slide 14: Cash Flow
Cash Flow Q3 2016 vs. Q3 2015 Q3 2016 Q3 2015 SEKm SEKm Operating cash surplus 4,967 4,770 Change in working capital 1,178 714 Restructuring costs, etc -137 -220 Capital expenditures (including strategic) -2,400 -1,731 Operating cash flow including strategic capital expenditures 3,608 3,533 October
Slide 15: Items Affecting Comparability
Items Affecting Comparability Q3 2016 Q3 2016 SEKm Costs for measures at the tissue production plants -450 Hondouville and Saint-Etienne-du-Rouvray, France Costs for closure of baby diaper business in Mexico -170 Wausau Paper Corp. -70 Other -20 Total items affecting comparability -710 October 27, 2
Slide 16: Magnus Groth, President and CEO
Magnus Groth President and CEO October 27, 2016 Interim Report Q3 2016 16
Slide 17: Personal Care
Personal Care Q3 2016 vs Q3 2015 Adjusted Adjusted Net sales -4% Net Sales Operating Profit* Operating Margin* SEK 1,058m SEK 1,068m Organic sales growth 0% SEK 8,668m SEK 8,362m +1% Adjusted operating profit* +1% 12.8% -4% 12.2% +60bp Higher volumes Better price/mix Cost savings Q3 2015
Slide 18: Personal Care
Personal Care Q3 2016 vs Q3 2015 Organic sales growth 0% Organic Sales Growth Organic Sales Growth Price/mix 0% by Region by Product Segment Volume 0% Lower sales for baby diapers +7% Strong growth for feminine care 0% 0% 0% 0% +2% -7% Mature markets Western Europe - Higher sales for i
Slide 19: Tissue
Tissue Q3 2016 vs Q3 2015 Adjusted Adjusted Net sales +4% Net Sales Operating Profit* Operating Margin* SEK 16,292m SEK 16,889m SEK 2,137m Organic sales growth +1% +4% SEK 1,892m Adjusted operating profit* +13% +13% 12.7% 11.6% +110bp Better price/mix Higher volumes Cost savings Q3 2015
Slide 20: Tissue
Tissue Q3 2016 vs Q3 2015 Organic sales growth +1% Organic Sales Growth by Region Organic Sales Growth by Product Segment Price/mix +1% Volume 0% Strong growth in emerging markets +6% Mature markets +1% +1% +1% +2% Western Europe -1% - Lower sales for consumer tissue due to lower sales o
Slide 21: Forest Products
Forest Products Q3 2016 vs Q3 2015 Adjusted Adjusted Net sales -4% Net Sales Operating Profit* Operating Margin* SEK 693m Organic sales growth -3% SEK 4,232m SEK 4,045m -4% SEK 589m -15% Price/mix -2% 16.4% 14.6% Volume -1% -180bp Closure of publication paper machine -3% Adjusted operati
Slide 22: Forest Products Price Development
Forest Products Price Development Publication Papers Kraftliner 110 115 105 110 105 100 100 95 95 90 90 2014 Q3 Q3 2016 Q3 2014 Q3 Q3 2016 Q3 Q3 2014 2015 Q3 2016 Q3 2014 2015 Q3 2016 Price index in SEK Price index in local currency Price index in SEK Price index in local currency NBSK Pulp Solid-wo
Slide 23: SCA Strategic Framework
SCA Strategic Framework VISION “Dedicated to improving well-being through leading hygiene and health solutions” MISSION To sustainably develop, produce, market and sell value-added hygiene and forest products and services OBJECTIVES Enable our Generate increased Enable more Contribute to a employees
Slide 24: Strategic Initiatives
Strategic Initiatives Hygiene Matters Report launched in partnership with UN body WSSCC Driving a global dialog around hygiene, health and well-being and breaking taboos around menstruation and incontinence SCA and UN Foundation convened fourth annual dialogue on UN’s Global Agenda Joined “Circular
Slide 25: Summary Q3 2016
Summary Q3 2016 Organic sales growth impacted by a challenging market situation for hygiene products and capacity reductions Good organic growth in operating profit* and increased operating margin** Strong contribution from efficiency gains Strong cash flow * Adjusted operating profit which excludes
Slide 26: Q&A
Q&A October 27, 2016 Interim Report Q3 2016 26
Slide 27: Slide 27