27 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jan 28, 2016
Slide 1: Year-end Report 2015
Year-end Report 2015 ®
Slide 2: Magnus Groth, President and CEO
Magnus Groth President and CEO January 28, 2016 Year-end Report 2015 2
Slide 3: Summary 2015
Summary 2015 Good organic growth in sales and operating profit Strong growth in emerging markets Good cash flow Continued strong contribution from efficiency gains Around 30 innovations and product launches for example Libero, Nosotras, Tempo, TENA and Tork The Board of Directors proposes an increas
Slide 4: Group 2015 vs. 2014
Group 2015 vs. 2014 Sales Organic Sales Growth Operating Profit* SEK SEK 115,316m 5% 13,014m +11% +8%** Operating Margin* EPS**** Operating Cash Flow SEK SEK 11.3% 9.97 12,921m +20bp*** +6% +16% * Excluding items affecting comparability ** Excluding items affecting comparability, gains on forest swa
Slide 5: SCA Group ROCE
SCA Group ROCE* ROCE* Target 13% 12.0% 10.9% 11.2% 2013 2014 2015 *Return on capital employed excluding items affecting comparability January 28, 2016 Year-end Report 2015 5
Slide 6: Dividend
Dividend The Board of Directors proposes an increase in the dividend by 9.5% to SEK 5.75 per share (5.25) January 28, 2016 Year-end Report 2015 6
Slide 7: Group Q4 2015 vs. Q4 2014
Group Q4 2015 vs. Q4 2014 Sales Organic Sales Growth Operating Profit* SEK SEK 29,040m 4% 3,454m +6% +5%** Operating Margin* EPS*** Operating Cash Flow SEK SEK 11.9% 4.03 3,731m 0bp +97% +1% * Excluding items affecting comparability ** Excluding items affecting comparability and currency translation
Slide 8: Important Events 2015
Important Events 2015 Decision to acquire Wausau Paper Corp., a North American Away-from-Home tissue company Decision to divest business in South East Asia, Taiwan and South Korea for integration with Vinda Addressed low performing baby diapers businesses Closure of tissue production facility in Fra
Slide 9: Strategic Priorities
Strategic Priorities PROFITABLE GROWTH INNOVATION EFFICIENCY INCREASING EFFICIENCY IN THE ENTIRE VALUE CHAIN January 28, 2016 Year-end Report 2015 9
Slide 10: Innovations and Product Launches
Innovations and Product Launches Q4 2015 Q4 2015 2015 Tork Matic® Hand Towel Roll Tork® Hand Towel Roll Dispenser Dispenser – with Intuition™ Innovations and product Sensor, Image Design™ launches Gives guests the ultimate hand drying Delivers high capacity to avoid towel run- experience outs in
Slide 11: Fredrik Rystedt, CFO
Fredrik Rystedt CFO January 28, 2016 Year-end Report 2015 11
Slide 12: Net Sales
Net Sales Q4 2015 vs. Q4 2014 2% SEK 29,040m 3% 1% SEK 27,397m +6% Net sales Price/Mix Volume Currency Net sales Q4 2014 Q4 2015 Organic sales growth 4% Price/Mix 1% Volume 3% January 28, 2016 Year-end Report 2015 12
Slide 13: Organic Sales Growth
Organic Sales Growth Group 8% 6% 4% 2% 0% 2012 2013 2014 2015 Personal Care Tissue 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% 2012 2013 2014 2015 2012 2013 2014 2015 January 28, 2016 Year-end Report 2015 13
Slide 14: Operating Profit* – Group
Operating Profit* – Group Q4 2015 vs. Q4 2014 SEK +266m SEK -529m SEK +375m SEK +34m SEK -70m SEK 3,454m SEK +128m SEK 3,250m +6% Operating Price/Mix Volume Raw Material Energy Currency Other Operating Profit Profit Q4 2014 Q4 2015 * Excluding items affecting comparability January 28, 2016 Year-end
Slide 15: Examples of USD movements
Examples of USD movements EUR/USD USD/RUB 1,30 70 +38% 1,25 65 1,20 60 Average 1,15 Average 55 1,10 -14% 50 1,05 45 1,00 40 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 USD/BRL USD/MXN 4,00 17 +51% +21% 3,50 16 Average Average 3,00 15 2,50 14 2,00 13 Q4 2014 Q1 201
Slide 16: Raw Material vs Price and Mix
Raw Material vs Price and Mix 2015 vs 2014 Group Personal Care +230bp +30bp +170bp -40bp -210bp -200bp Raw Material Price/Mix EBIT Margin Raw Material Price/Mix EBIT Margin Costs Impact Costs Impact Tissue Forest Products +210bp +250bp +130bp -150bp +40bp -280bp Raw Material Price/Mix EBIT Margin Ra
Slide 17: SCA Group: Mature markets and Emerging markets
SCA Group Mature markets and Emerging markets 2013 2015 Share of Net Sales Share of Net Sales 24% 32% Operating Margin 2013* 2014* 2015 68% 76% Mature markets 11.5% 13.0% 13.3% Emerging markets 7.7% 6.4% 7.0% Share of Operating Profit Total Group 10.6% 11.1% 11.3% Share of Operating Profit 17% 20% *
Slide 18: Cash Flow
Cash Flow 2015 vs. 2014 2015 2014 SEKm SEKm Operating cash surplus 18,312 16,250 Change in working capital -399 -446 Restructuring costs, etc -830 -883 Capital expenditures (including strategic) -7,287 -5,553 Operating cash flow including strategic capital expenditures 9,796 9,368 January 28, 2016 Y
Slide 19: Magnus Groth, President and CEO
Magnus Groth President and CEO January 28, 2016 Year-end Report 2015 19
Slide 20: Personal Care
Personal Care Q4 2015 vs Q4 2014 Net Sales Operating Profit* Operating Margin* Sales growth 7% SEK 8,106m SEK 8,681m SEK 930m SEK 1,086m +17% Organic sales growth 9% +7% 11.5% 12.5% +100bp Operating profit increased 17%* Better price/mix Higher volumes Cost savings Q4 2014 Q4 2015 Q4 201
Slide 21: Personal Care
Personal Care Q4 2015 vs Q4 2014 Organic Sales Growth Organic Sales Growth Organic sales growth 9% by Region by Product Segment Price/mix +2% Volume +7% +13% +14% Strong growth in emerging markets +9% Strong growth for feminine care +7% +9% Good growth for incontinence products Mature
Slide 22: Tissue
Tissue Q4 2015 vs Q4 2014 Net Sales Operating Profit* Operating Margin* Sales growth 7% SEK 15,366m SEK 16,366m SEK 1,867m SEK 1,943m Organic sales growth 3% Operating profit increased 4%* +7% +4% 12.2% 11.9% Better price/mix -30bp Higher volumes Cost savings Q4 2014 Q4 2015 Q4 2014 Q4 2
Slide 23: Tissue
Tissue Q4 2015 vs Q4 2014 Organic Sales Growth Organic Sales Growth Organic sales growth 3% by Region by Product Segment Price/mix +2% +10% Volume +1% Strong growth in emerging markets +5% +3% 0% +3% +2% Mature markets Total Mature Emerging Total Consumer AfH Western Europe Markets Marke
Slide 24: Forest Products
Forest Products Q4 2015 vs Q4 2014 Sales growth 2% Net Sales Operating Profit* Operating Margin* SEK 683m SEK 4,037m SEK 4,133m SEK 612m -10% Price/mix -2% +2% 16.9% Volume +3% Currency +1% 14.8% -210bp Operating profit decreased 10%* Lower prices (including exchange rate Q4 2014 Q4 2015
Slide 25: Full year 2015
Full year 2015 Summary Good organic growth in sales and operating profit Several strategic initiatives January 28, 2016 Year-end Report 2015 25
Slide 26: Q&A
Q&A January 28, 2016 Year-end Report 2015 26
Slide 27: Slide 27