Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Deutsche Bank Global Consumer Conference 2010
26 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Jun 15, 2010
Slide 1: Deutsche Bank Global consumer conference 2010
Deutsche Bank Global consumer conference 2010 Lennart Persson, CFO Mats Berencreutz, President Tissue Europe 15 June 2010
Slide 2: SCA leading hygiene
SCA leading one of three hygiene companies worldwide 2 15 June 2010
Slide 3: SCA – a global hygiene products and paper company
SCA – a global hygiene products and paper company Net sales of SEK 111bn Approximately 50,000 employees and sales in more than 100 countries TEN and Tork leading global brands for incontinence care and Away From Home tissue Ranked 2nd greenest company in the world, one of the world’s 100 mos
Slide 4: SCA Group
SCA Group Sales and EBIT split 2009 EBIT split EBIT split Forest Products Sales split Personal Care 25% 32% 15% 23% 25% 37% 4% 39% Packaging Tissue Sales 2009: SEK 111bn 4 15 June 2010
Slide 5: Strong global and regional positions
Strong global and regional positions Nordic region Baby diapers: 1 North America AFH tissue: 3 Europe Incontinence care: 3 Tissue: 1 Corrugated board: 2 Baby diapers: 3 Mexico Incontinence care: 1 Incontinence care: 1 Privately owned forests: 1 Tissue: 2 Feminine care: 3 Global Incontinence care: 1
Slide 6: SCA Group Strategic Direction
SCA Group Strategic Direction 6 15 June 2010
Slide 7: 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 7 15 June 2010
Slide 8: Our growth markets
Our growth markets 9 Strong SCA positions 9 Good market growth 9 Favourable socio-demographics 9 Joint venture 9 Good market growth 9 Favourable socio-demographics 9 Market tests of Incontinence care products and Baby diapers 8 15 June 2010
Slide 9: Hygiene products
Hygiene products Sales split Away-From- Incontinence Home tissue care 23% 21% Baby 11% 11% diapers 39% 6% Consumer tissue Feminine care Sales 2009: SEK 67bn 9 15 June 2010
Slide 10: Personal Care
Personal Care Financial overview 2009 Personal care sales split Net sales Feminine care: SEK 25,716m 16% Incontinence care: 55% 23% of Group Baby diapers: EBIT 29% SEK 3,235m 32% of Group Operating Cash flow SEK 4,436m 30% of Group EBIT margin: 13% Capital employed ROCE: 29% SEK 11,430m Target ROCE:
Slide 11: Personal Care
Personal Care Strategic focus Short and mid term Maintain Tena leadership in premium segment and increase growth in economy segment Strengthen leading positions in Europe Further restore Baby diapers private label profitability Drive innovation Market test in China Grow in prioritized Em
Slide 12: Baby diapers
Baby diapers Improving profitability Initiatives More efficient production structure Closure of factory in France Personnel reduction in the Netherlands Total cost: EUR 60m Annual savings: EUR 15m, with full effect from Q3 2011 New factory in Russia Establish retailer brand organizatio
Slide 13: TENA
TENA A true success story Annual sales growth 1989-2009: 9% Emerging markets EURm North Design America Internet TV South Europe Retail Reimbursement North Europe New products & services 13 15 June 2010
Slide 14: Increased pace of innovation
Increased pace of innovation Strengthens market positions 14 15 June 2010
Slide 15: Tissue
Tissue Financial overview 2009 Tissue sales split Net sales SEK 41,425m AFH tissue: Consumer tissue: 37% 63% 37% of Group EBIT SEK 3,946m 39% of Group Operating Cash flow SEK 5,979m 41% of Group EBIT margin: 10% Capital employed ROCE: 10% SEK 37,196m Target ROCE: 13% 35% of Group 15 15 June 2010
Slide 16: Tissue
Tissue Strategic focus Short and mid term Strengthen leading positions in Europe Further restore Consumer Tissue profitability Drive innovation Grow in prioritized Emerging markets Increase value added and branded Price management 16 15 June 2010
Slide 17: Investments supporting organic growth
Investments supporting organic growth And strengthening profitability New Tissue plant New Tissue plant Annual production capacity of Annual tissue production capacity of ~30,000 tonnes ~ 60,000 tonnes Increased local production to meet Strengthens competitiveness and rising consumer dem
Slide 18: Tissue Europe Aspiration
Tissue Europe Aspiration To be the undisputed Tissue Category Leader in Europe, and the preferred choice for European consumers and customers 18 15 June 2010
Slide 19: Integration of acquired business
Integration of acquired business Consumer Tissue Europe Commercial synergies Cost synergies Front loaded synergies related to sales force and category resources Supply chain restructuring synergies Supply chain integration Commercial Synergies 40% Optimizing logistics and internal 42% replenishm
Slide 20: Lift and Shift
Lift and Shift Tissue Europe Lift Shift Sourcing Excellence FacilityService Facility ServicePartnership Partnership Service Level Brandexpansion Brand expansionSouth South Supply Chain Excellence CategoryLeadership Category Leadership Price Management and “Go Converttextile Convert textile To Market
Slide 21: European Brand Strategy
European Brand Strategy Stronger brands and more efficient A&P Complicated, region specific, Focused, differentiated & consumer inefficient brand portfolio relevant mega-brand portfolio DACH East Nordic NL From … … To 21 15 June 2010
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 15 June 2010
Slide 23: Increased pace of innovation
Increased pace of innovation Strengthens market positions 23 15 June 2010
Slide 24: AFH Tissue Europe
AFH Tissue Europe Mature markets Focus on premium sales Grow faster than the market Emerging markets Achieve 20% market share Double the business in Eastern Europe 24 15 June 2010
Slide 25: Q&A
25) Q&A 15 June 2010
Slide 26: Tack.
Tack. 26 15 June 2010