Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Handelsbanken Conference 2009
24 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Sep 21, 2009
Slide 1: Handelsbanken Conference
Handelsbanken Conference 21 September 2009 Jan Johansson, President and CEO 21 September 2009
Slide 2: SCA – a global hygiene products and paper company
SCA – a global hygiene products and paper company Net sales of SEK 110bn 52,000 employees and sales in 90 countries TEN and Tork leading global brands for incontinence care and Away From Home tissue Ranked 2nd greenest company in the world (2007), one of the world’s 100 most sustainable comp
Slide 3: SCA Group: Sales and EBIT split
SCA Group Sales and EBIT split EBIT split EBIT split Forest Products Sales split Personal Care 15% 21% 25% 32% 30% 34% 26% 17% Packaging Tissue Sales 2008 SEK: 110bn 3 21 September 2009
Slide 4: Coping recession
Coping recession Net sales and Operating profit SEKm SEKm * *Excluding SEK 439m Packaging restructuring costs 4 21 September 2009
Slide 5: H1 2009 SCA business market update
H1 2009 SCA business market update Hygiene business Stable demand for Personal Care and Consumer tissue Lower demand for AFH tissue Continued good growth in emerging markets Packaging and Forest Products Weak demand for Packaging Stable demand for publication papers and increased demand fo
Slide 6: SCA short term focus
SCA short term focus 6 21 September 2009
Slide 7: H2 2009 General market update
H2 2009 General market update Improved Global GDP expectations +2.3% for 2010 Still weak expectations for EURO area industrial production 2009 (-15%), but improved for 2010 (+1.2%) Hygiene businesses Stable demand in mature markets Continued good growth in emerging markets Packaging and
Slide 8: Packaging: Addressing cost and efficiency needs
Packaging Addressing cost and efficiency needs…. Containerboard Early closure of New Hythe testliner mill mid 2009 (capacity 260,000 tonnes) Headcount optimization Corrugated Downsizing and optimization of businesses Closure of 11 corrugated units Productivity and product mix improvement a
Slide 9: Packaging: developing value proposition
Packaging ... and developing value proposition Brand owner 9 On and off shelf benefits 9 Lean 9 Harmonisation 9 Trade terms 9 Flexibility 9 Sales uplift 9Replenishment 9 Space optimisation 9 Improved visibility 9 Tidy shelves 9 Increased availability Trade 9 less re-work 9 No tunnel effect 9 Flexibi
Slide 10: Forest Products
Forest Products Short term action focus Continued focus on productivity Strong customer offers 84 improvement projects strengthening earnings and cash flow 10 21 September 2009
Slide 11: Personal Care
Personal Care Short term focus Feminine care 16% Full focus on growing Tena Incontinence care Improving Baby profitability in Europe 55% Continued growth in Latin America and South East Asia Drive innovation Retail Baby diapers 29% Sales 2008: SEK 23.3bn 11 21 September 2009
Slide 12: Tissue
Tissue Short term focus AFH tissue Consumer tissue 36% 64% Price management Cost and efficiency Brand migration Europe Drive innovation Sales 2008: SEK 38.4bn 12 21 September 2009
Slide 13: Outlook 2009
Outlook 2009 Hygiene businesses Price management Stable demand – still strong in growth regions Packaging Continued weak demand Inventory levels under control • Price increases on test- and kraftliner Forest Products Publication papers • Low demand • Price pressure mainly in magazine
Slide 14: Market trends and SCA strategic considerations
Market trends and SCA strategic considerations 14 21 September 2009
Slide 15: Competitive landscape
Competitive landscape Segments and Arenas Hygiene Forest Products and Packaging Continued consolidation Need for consolidation Growing BRICIT market Structural changes Expanding value offering Capacity still an issue Strong focus on innovation New capacity Global and scalable brand
Slide 16: SCA's short & medium term strategy
SCA’s short & medium term strategy … still holding major opportunities 2007 - 2009 Focus on working 1. 2010 Increased efficiency in AP spendings, innovation and capital, lower capex sourcing 2. Improved cash flow Continued need for Efficiency programs in efficiency enhancements Packaging &
Slide 17: Key focus areas
Key focus areas Grow at least in line with market Expand & Stretch existing product offering Best in class ambition Performance (Kaizen thinking) Leadership Sustainability Reputation Adequate debt level 17 21 September 2009
Slide 18: Strong global and regional positions
Strong global and regional positions Nordic region Baby diapers: 1 North America Europe AFH tissue: 3 Tissue: 1 Incontinence care: 3 Corrugated board: 2 Baby diapers: 2 Incontinence care: 1 Mexico Privately owned forests: 1 Hygiene products: 2 Global Incontinence care: 1 Colombia AFH tissue: 3 Incon
Slide 19: Europe and the rest of the world
Europe and the rest of the world 2008 rest of the world Sales: 27,401 SEK (25% of total) 2008 Europe CAGR*: 22.2% Sales: SEK 83,048m (75% of total) EBIT: SEK 853m (10% of total) CAGR*: 0.7% EBIT: SEK 7,701m (90% of total) *Compound annual growth rate 2002-2008 19 21 September 2009
Slide 20: 80% of the growth from D&E markets
80% of the growth from D&E markets; BRICIT countries alone accounts for > 50% Total Hygiene Market By Geography (€ B) Growth by Geography (€ B and CAGR) % of total growth: CAGR: OTH. 120 ASIA 6% 4.3 % E. EUR 3% 3.6 % 100 98 B Other Asia OTHER D&E OTH AFR. E Europe (ex. 3% 5.7 % Russia/CIS) 80 MENA A
Slide 21: China - almost 80% of BRICIT growth
China - almost 80% of BRICIT growth and more than 40% of total hygiene growth BRICIT Size (€ B) and Growth by country Size (€ B) and Growth by Category in China 35 25 CAGR: 8.4 % 29.2 30 20.0 Turkey BA 20 25 Indonesia 3.2 % FE 15 20 China 4.2 % 20.0 IN 15 12.2 10 India 10. 5 % 6.7 10 AFH 6.7 5 Russi
Slide 22: The female economy
The female economy Women control about $20 trillion in annual consumer spending – will grow to $28 trillion in next five years Women represent a growth market more than twice as big as China and India combined 22 21 September 2009
Slide 23: Q&A
Q&A 23 21 September 2009
Slide 24: 21 September 2009
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