Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Deutsche Bank Global Consumer Conference 2008
22 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Jun 19, 2008
Slide 1: Deutsche Bank Global Consumer Conference
Deutsche Bank Global Consumer Conference 19 June 2008 Jan Johansson President and CEO
Slide 2: SCA Group - split by sales
SCA Group - split by sales Hygiene Products Packaging & Forest Products • Personal Care • Packaging solutions • Tissue • Publication papers, pulp, timber and solid- 52% 48% wood products Sales 2007: SEK 106bn in 90 countries EBIT-margin: 9.6% ROCE: 11% Consumer products more than 50% of group sales
Slide 3: Different focus in the business groups
Different focus in the business groups Packaging & Hygiene Hygiene Products Products Forest Products • Personal Care • Capitalize Tissue on growth Cash flow generation/ opportunities Asset base efficiency Higher value in Focus on value mature segments added offerings Increased shareholder value 3
Slide 4: Hygiene Products – split by sales
Hygiene Products – split by sales Away-From- Incontinence Home tissue care 25% 22% 12% Baby A&P effieny diapers 35% 6% Consumer Feminine tissue care Sales 2007: SEK 55bn 4
Slide 5: Strong global and regional positions
Strong global and regional positions Nordic region Baby diapers: 1 North America Europe Tissue: 1 AFH tissue: 2 Corrugated board: 2 Incontinence care: 3 Baby diapers: 2 Incontinence care: 1 Privately owned forests: 1 Mexico Global Hygiene products: 2 Incontinence care: 1 AFH tissue: 3 Colombia Incon
Slide 6: Accelerate the transformation
Accelerate the transformation 6
Slide 7: New global Hygiene organization
New global Hygiene organization Global strategic focus Customer and Speed to market consumer insight Brand strategies Innovation Prioritize resources Strategic supply across Speedregions to and chain categories market 7 Capitalize on growth opportunities
Slide 8: Great potential for hygiene products in low penetrated markets
Great potential for hygiene products in low penetrated markets Consumption of hygiene products pcs/capita/year pcs/child/year pcs/women/year Kg/capita/year 20 2 000 400 25 20 15 1 500 300 15 10 1 000 200 10 5 500 100 5 0 0 0 0 Incontinence products Inkontinensprodukter Baby diapers Barnblöjor Femini
Slide 9: High growth in Emerging markets
High growth in Emerging markets (Asia, Eastern Europe / Russia and Latin America) Q1 2008 / Q1 2007 sales growth in Emerging markets: Personal Care: +28% Tissue: +15% % of Hygiene sales in 1997 % of Hygiene sales in 2007 5% Emerging markets Emerging markets 25% Mature markets Mature markets 9
Slide 10: Personal Care
Personal Care Highly profitable global and regional brands Incontinence care Baby diapers Feminine care 10
Slide 11: Personal Care
Personal Care Business Overview 2007 Sales: SEK 22bn Innovation driven business EBIT-margin: 13.4% ROCE: 32% TENA incontinence care sold both in retail channel and to institutions 16% TENA global no. 1 with 26% market share 55% 29% Libero no. 1 in baby diapers in Nordic countries Strong re
Slide 12: Commercial
Commercial
Slide 13: TENA – a true success story
TENA – a true success story Sales 1987 - 2007 1987-2007 Annual growth: 11% MEUR 1 400 Emerging Design markets 1 200 North Internet 1 000 America 800 TV South Europe 600 Retail 400 North Reimbursement Europe 200 0 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 New products & services
Slide 14: TENA is sold in over 90 countries
TENA is sold in over 90 countries 19% 40% market market share in share in Europe North America 26% global market share Sales of more than EUR 1bn 14
Slide 15: Tissue
Tissue Strong global and regional brands Consumer tissue Away-From-Home tissue 15
Slide 16: Tissue
Tissue Business Overview 2007 Sales: SEK 33bn No. 1 in Europe EBIT-margin: 5.2% Global No. 3 ROCE: 5% No.3 in AFH tissue North America Leading positions in Latin America Products include toilet paper, kitchen 41% 59% rolls, handkerchiefs, facial tissue and napkins Strong own brands and s
Slide 17: P&G acquisition
Tissue P&G acquisition SCA acquired P&G’s European tissue business in 2007 Sales of approximately EUR 500m Strengthens SCA’s no. 1 position in Europe Synergies in sales and marketing and supply chain, totalling SEK 700m after three years Enables further optimization of asset base - Intenti
Slide 18: Tork is sold in some countries
Tork is sold in some 80 countries 17% 19% market share in market Europe share in North No.3 America on the global AFH market Sales of more than EUR 1bn 18
Slide 19: Continued dividend growth
Continued dividend growth SEK 5 CAGR) %( th 9 4 d grow den Divi 3 2 1 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007 dividend of SEK 4.40 per share 19
Slide 20: Challenges and opportunities
Challenges and opportunities High cost level for raw material and energy New global hygiene category organization Capture growth in emerging markets Increased focus on brand and innovation in Consumer tissue Improve profitability in Consumer tissue 20
Slide 21: Packaging and Forest Products
Packaging and Forest Products Packaging 2007 Sales: SEK 34bn Europe’s second largest EBIT-margin: 7.9% supplier of corrugated ROCE: 10% packaging High level of containerboard integration Operations in Europe and China Forest Products 2007 Sales: SEK 19bn Europe's largest private owner EBIT-m
Slide 22: essentials
essentials for everyday life”