24 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jul 16, 2015
Slide 1: Interim Report Q2 2015
Interim Report ® Q2 2015
Slide 2: Magnus Groth, President and CEO
Magnus Groth President and CEO July 16, 2015 Interim Report Q2 2015 2
Slide 3: Summary Q2 2015
Summary Q2 2015 Good organic growth in sales and operating profit Strong growth in emerging markets Strong cash flow Continued strong contribution from efficiency gains Ten innovations and product launches - Edet, Okay, Plenty, TENA, Tork and Zewa Price increases achieved for consumer tissue in Euro
Slide 4: Group
Group Q2 2015 vs. Q2 2014 Sales Organic Sales Growth Operating Profit* SEK SEK 29,219m +5% 3,217m +13% +9%** Operating Margin* EPS Operating Cash Flow SEK 11.0% SEK 2.80 2,925m +30 bp*** +10% +42% * Excluding items affecting comparability ** Excluding items affecting comparability, gains on forest s
Slide 5: Strategic Priorities
Strategic Priorities PROFITABLE GROWTH INNOVATION EFFICIENCY INCREASING EFFICIENCY IN THE ENTIRE VALUE CHAIN July 16, 2015 Interim Report Q2 2015 5
Slide 6: Investment in Brazil
Investment in Brazil Investment of approx. SEK 650m in a new production facility for incontinence products Production start 2016 SCA is the second largest company in incontinence products Global leading brand TENA and local brand Biofral Brazil is the world’s third largest retail market for incontin
Slide 7: Addressing low performing markets
Addressing low performing markets Brazil Exit baby diapers Thailand Changed business model to export business July 16, 2015 Interim Report Q2 2015 7
Slide 8: Fredrik Rystedt, CFO
Fredrik Rystedt CFO July 16, 2015 Interim Report Q2 2015 8
Slide 9: Net Sales
Net Sales Q2 2015 vs. Q2 2014 +8% SEK 29,219m +3% +2% SEK 25,829m +13% Net sales Price/Mix Volume Currency Net sales Q2 2014 Q2 2015 Organic sales growth 5% Price/Mix +2% Volume +3% July 16, 2015 Interim Report Q2 2015 9
Slide 10: Organic Sales Growth
Organic Sales Growth Group 8% 6% 4% 2% 0% 2012 2013 2014 H1 2015 Personal Care Tissue 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% 2012 2013 2014 H1 2015 2012 2013 2014 H1 2015 July 16, 2015 Interim Report Q2 2015 10
Slide 11: Operating Profit* – Group
Operating Profit* – Group Q2 2015 vs. Q2 2014 SEK +212m SEK -435m SEK +497m SEK +213m SEK -240m SEK +36m SEK 3,217m SEK 2,934m +10% Operating Price/Mix Volume Raw Material Energy Currency Other** Operating Profit Profit Q2 2014 Q2 2015 * Excluding items affecting comparability and including gains on
Slide 12: Cash Flow
Cash Flow Q2 2015 vs. Q2 2014 Q2 2015 Q2 2014 SEKm SEKm Operating cash surplus 4,626 3,967 Change in working capital -550 -828 Restructuring costs, etc -233 -238 Capital expenditures (including strategic) -1,259 -1,232 Operating cash flow including strategic capital expenditures 2,584 1,669 July 16,
Slide 13: Magnus Groth, President and CEO
Magnus Groth President and CEO July 16, 2015 Interim Report Q2 2015 13
Slide 14: Personal Care
Personal Care Q2 2015 vs Q2 2014 Sales growth 12% Net Sales Operating Profit* Operating Margin* SEK 8,676m SEK 977m Organic sales growth 6% Operating profit increased 11%* SEK 7,750m SEK 877m +11% +12% 11.3% 11.3% 0 bp Better price/mix Higher volumes Cost savings Q2 2014 Q2 2015 Q2 2014
Slide 15: Personal Care
Personal Care Q2 2015 vs Q2 2014 Organic Sales Growth Organic Sales Growth Organic sales growth 6% by Region by Product Segment Price/mix +4% +18% Volume +2% +11% Strong growth in emerging markets Strong growth for feminine care +6% +6% +4% Mature markets Western Europe +2% +3% Total M
Slide 16: Personal Care: Innovations and Product Launches Q2 2015
Personal Care Innovations and Product Launches Q2 2015 TENA Lady Mini, Mini lights by TENA TENA Stretch Super Wings, Mini Plus, Mini Ultra Towels Normal & and Ultra Briefs, Plus Wings with TENA Lady Range TENA Flex Normal TENA Stretch Plus Ultra Towels Normal with DRYZone Wings Brief New top sheet
Slide 17: Tissue
Tissue Q2 2015 vs Q2 2014 Sales growth 15% Net Sales Operating Profit* Operating Margin* SEK 16,091m SEK 1,826m Organic sales growth 4% Operating profit increased 11%* SEK 1,652m SEK 14,039m +15% +11% 11.8% 11.3% -50 bp Better price/mix Higher volumes Cost savings Q2 2014 Q2 2015 Q2 2014
Slide 18: Tissue
Tissue Q2 2015 vs Q2 2014 Organic sales growth 4% Organic Sales Growth Organic Sales Growth by Region by Product Segment Price/mix +1% Volume +3% Strong growth in emerging markets +13% +5% Mature markets Western Europe +4% +4% +1% 0% - Flat sales for consumer tissue Total Mature Emerging
Slide 19: Tissue: Innovations and Product Launches Q2 2015
Tissue Innovations and Product Launches Q2 2015 SCA Household Towel Tork® Coreless High Capacity New Plenty Tork Cleaning Cloths Bath Tissue Dispenser and Brands: Zewa, Plenty, Coreless High Capacity Bath Easy Clean Wipes with ExelClean™ Okay & Edet Tissue Rolls A unique refillable dispenser Rel
Slide 20: Forest Products
Forest Products Q2 2015 vs Q2 2014 Net Sales Operating Profit* Operating Margin* Sales growth 9% Price/mix +1% SEK 4,598m SEK 622m SEK 4,217m +39% +9% SEK 448m Volume +6% 10.6% 13.5% +290 bp Currency +2% Strong growth for kraftliner and pulp Q2 2014 Q2 2015 Q2 2014 Q2 2015 Q2 2014 Q2 2015
Slide 21: Innovative Marketing Platform
Innovative Marketing Platform SCA with female Team SCA in the Volvo Ocean Race 2014-2015 Global marketing platform with focus on women Strong sustainability and CSR focus Reaching all target audiences including customers and consumers, employees, the media and other external parties 2,400,000 visito
Slide 22: Q2 2015 Summary
Q2 2015 Summary Good organic growth in sales and operating profit Strong growth in emerging markets Strong cash flow Global Environment Low growth in mature markets and good growth in emerging markets for hygiene products FX headwinds due to stronger USD Competitive market environment July 16, 2015
Slide 23: Q&A
Q&A July 16, 2015 Interim Report Q2 2015 23
Slide 24: Slide 24