Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A
Svenska Cellulosa Ab Sca Class A — SCA — Investor Day (December 2008)
115 slides from Svenska Cellulosa Ab Sca Class A's investor day presentation, December 2008
Slide 1: SCA Capital Market Day 2008
SCA Capital Market Day 2008 1 SCA Capital Market Day 2008
Slide 2: Agenda
Agenda 13:00 – 17:15 1 SCA Group Strategy – Jan Johansson and Lennart Persson 2 Packaging – Phil Almond 3 Forest Products – Ulf Larsson Q&A 4 – Bodil Eriksson 14:45 – 15:10 Break 25 min Hygiene Introduction 5 – Jan Johansson Tissue Europe 6 – Mats Berencreutz AFH tissue North America 7 – Thomas Wulk
Slide 3: SCA Group Strategy
SCA Group Strategy Jan Johansson Lennart Persson 3 SCA Capital Market Day 2008
Slide 4: Today's situation
Today’s situation 4 SCA Capital Market Day 2008
Slide 5: September 2008
September 2008 GDP % GDP expectations 10 8 6 4 2 0 North Western Eastern Asia- China Latin World America Europe Europe Pacific America -2 2008 (Nov 2008) 2009 (Nov 2009) 5 SCA Capital Market Day 2008
Slide 6: Challenges to recognize
Challenges to recognize Need to improve financial KPI’s • Cash flow, ROCE, growth, EBIT Cyclical and capital intense businesses Innovation process as a business driver 6 SCA Capital Market Day 2008
Slide 7: Europe a stronghold: our home market
Europe a stronghold: our home market ¾Europe 80% of sales, 85% of EBIT ¾Europe 70% of Hygiene sales and 75% of EBIT 7 SCA Capital Market Day 2008
Slide 8: Assets to build on
Assets to build on Strong hygiene market positions No. 2 on European Packaging market Cost efficient Forest Products supplier Stable shareholder base Sustainable profile Forest assets 8 SCA Capital Market Day 2008
Slide 9: Short and medium term direction
SCA Group Short and medium term direction 1. 2. 3. COST AND CAPITAL CASH FLOW EFFICIENCY INNOVATIONS 9 SCA Capital Market Day 2008
Slide 10: Cost and cash flow
Cost and cash flow 1. Prioritization of projects Cost efficiency programs Focus on working capital and investments Rationalization programme 2005 - 2008 EBIT improvement SEK 1,550m Fully realized Rationalization programme 2007 - 2010 EBIT improvement SEK 1,400m Mainly related to Ti
Slide 11: Capital efficiency
Capital efficiency 2. Efficiency programs in capital intensive businesses Packaging: Lean Americas: 5-10 program; Slim fast program Tissue Europe: Lift & Shift strategy Forest Products: 84 points program 11 SCA Capital Market Day 2008
Slide 12: Innovations
Innovations 3. The Tork Elevation dispenser line Tempo Complete Care Revitalizing tissue brands in Mexico TENA underwear Libresse SecureFit Elastic side panels Baby Diapers Packaging category innovations 12 SCA Capital Market Day 2008
Slide 13: Portfolio optimization
Portfolio optimization 2007 – 2008 Divesting Packaging North America Divesting Conventional Corrugated UK and Ireland Acquiring European tissue business 2008 - 2010 Divest or close non core Packaging assets More focused approach in Hygiene operations 13 SCA Capital Market Day 2008
Slide 14: Strategy in an ever changing environment
Strategy in an ever changing environment ADJUSTED ADJUSTED STRATEGY PLAN STRATEGY PLAN ADJUSTED ADJUSTED 14 SCA Capital Market Day 2008
Slide 15: Financial KPI's
Financial KPI’s Cost and cash flow Sales growth EBIT ROCE 15 SCA Capital Market Day 2008
Slide 16: Targets
Targets Over a business cycle ROCE* * Personal Care 30% Tissue 13% Packaging 10% Forest Products 11% Group 13% * Return on capital employed 16 SCA Capital Market Day 2008
Slide 17: Sensitivity analysis
Sensitivity analysis Energy and EBIT raw material Change impact* Energy 10% SEK 750m Wood 10% SEK 190m Recycled fibre 10% SEK 670m Pulp 10% SEK 620m Pre-tax profit Finance net Change impact* Interest rate 1%-point SEK 450m EBIT Currency*** Change Impact** SEK 10% SEK 1,500m EUR 10% SEK
Slide 18: Financing situation
Financing situation As of 30 November 2008 Commercial papers SEK 11.7bn Unutilized long-term committed credit facilities of SEK 18.9bn Cash and cash equivalents of SEK 5bn 18 SCA Capital Market Day 2008
Slide 19: Packaging
Packaging Phil Almond 19 SCA Capital Market Day 2008
Slide 20: Packaging
Packaging 9M 9M Full-service packaging provider 2008 2007 % Sales, SEKm: 25,695 25,234 2 Europe’s second largest supplier of EBIT, SEKm EBIT-margin, %: 1,384 5.4 1,959 7.8 -29 corrugated packaging 10% Strategy to increase value content 10% Main customers are companies 66% 14% within the fast
Slide 21: European corrugated market
European corrugated market Growth development, Western Europe Dropping demand 4 3 Weak economic growth and 2 credit crisis uncertainty 1 2) % 0 Short term outlook -1 Accelerated economic slowdown -2 Both industrial production and 1) GDP shows negative growth -3 forecasts for 2009 2004 2005
Slide 22: SCA's sales by segment
SCA’s sales by segment 15% 22% 6% 9% 8% 22% 18% 22 SCA Capital Market Day 2008
Slide 23: European containerboard market
European containerboard market High inventories of recycled containerboard Eight new machines announced During 2009-2011 more than 2 million tonnes in net capacity additions, realization still to be seen Market growth of 3-4% p.a. needed in Europe to absorb this capacity 1 1400 1200 1000 800
Slide 24: 60% of machines have cash cost higher than sales price
60% of the machines and 40% of the capacity have a cash cost higher than sales price 700 Ktonnes > 300KT > 150KT Æ 300KT < 150KT 600 500 400 300 200 100 0 5.6 MT - 25% 8.1 MT - 35% 9.2 MT - 40% Machines SCA 24 SCA Capital Market Day 2008
Slide 25: Corrugated integration level
Corrugated integration level Containerboard supply* Internal deliveries: 53% Back-to-back: 17% External purchases: 30% * Excluding divested UK and Ireland conventional corrugated business 25 SCA Capital Market Day 2008
Slide 26: LEAN Production
LEAN Production Productivity improvements Box plant productivity, sqm: +15% Implemented at 22% of the production sites Paper Mill productivity, k tonnes: +9% Implemented at 43% of the production sites 26 SCA Capital Market Day 2008
Slide 27: World class sales and marketing
Word class sales and marketing Pricing Management Measure real profitability at item, order and customer level Manage terms and conditions Customer Portfolio Management Improve working platforms / business targeting Fix, remove or replace the bottom 20% of our customers continuously Hi
Slide 28: Building collaborative relationships
Building collaborative relationships Opportunity / Fit Matrix A tool for determining customer potential that assesses future value and strategic fit based on a set of quantitative and qualitative criteria Priority Portfolio-managed accounts Team-accounts high TIER 1 TIER 2 Defend or Focus on the ‘wi
Slide 29: Short term action focus
Short term action focus Cost reductions Capacity closures Increased efficiency and cash flow Improved sales and marketing Optimizing current asset base 29 SCA Capital Market Day 2008
Slide 30: Forest Products
Forest Products Ulf Larsson 30 SCA Capital Market Day 2008
Slide 31: Forest Products business overview
Forest Products Business overview 9M 9M Supplier of publication papers 2008 2007 % Sales, SEKm: 12,485 13,941 -4* Europe's largest private owner of EBIT, SEKm: EBIT-margin, %: 1,689 13.5 2,179 -22 15.6 forestland, 2.6 million hectares 6% Supplier of pulp 8% 15% 32% Supplier of solid-wood pro
Slide 32: Market trends: Magazine paper
Market trends: Magazine paper Increased capacity utilization in WE Shipments-to-Capacity ratio Western Europe after capacity 100% 98% closures 96% 94% 92% 90% Closures 2008: 88% 1 million tonnes 86% 84% 82% Uncertain demand outlook over 80% 1995 1997 1999 2001 2003 2005 2007 2009 the next two
Slide 33: Market trends: Newsprint
Market trends: Newsprint* WE Shipments-to-Capacity ratio Declining capacity utilization in 100% Western Europe 98% 96% 94% 92% Capacity increase to 2010: 90% approximately 0.4 million tonnes 88% 86% Negative demand outlook over 84% 82% 80% the next two years 1995 1997 1999 2001 2003 2005 2007
Slide 34: Market trends: Solid-wood products
Market trends: Solid-wood products WE Production volume * New house construction Million m3 90.0 dramatically down in some key markets – financial 85.0 crisis has a major impact on 80.0 forecast for 2009-2010 RMI (repair, maintenance, 75.0 improvements) holding up 70.0 better, but also decreasin
Slide 35: Market trends: Wood raw material
Market trends: Wood raw material Long term increasing price trend for wood and tougher competition on all wood markets Russian export duties Increasing use of wood in biofuel sector 35 SCA Capital Market Day 2008
Slide 36: Market trends: Energy
Market trends: Energy Long term energy cost increase trend – opposite situation short term Clear EU policy to increase renewable energy and decrease CO2-emissions Expansion of wind power, but restrictions for other electrical generation sources 36 SCA Capital Market Day 2008
Slide 37: Improvement projects
Improvement projects Increased capital efficiency Increased cash flow Reduced cost Annualized effect EBIT 84 2009Q1 ~ 100 SEKm improvement projects EBIT identified and 2009Q4 ~ 200 SEKm under implementation WC 2009Q1 > 200 SEKm 37 SCA Capital Market Day 2008
Slide 38: Productivity and cost
Productivity and cost Publication papers Solid-wood products 180 160 170 150 160 140 150 130 140 120 130 110 120 100 110 90 100 80 90 70 80 60 70 50 95 96 97 98 99 00 01 02 03 04 05 06 07 08 95 96 97 98 99 00 01 02 03 04 05 06 07 08 Production IC SEK/ton Employees Production IC SEK/m3 Employees and
Slide 39: Strong focus on improved customer offering
Strong focus on improved customer offering Strategic value-adding in partnership with customers Window component mill in Munksund starting up production Commercialising strong environmental position •GraphoVerde •FSC-certified paper 39 SCA Capital Market Day 2008
Slide 40: Innovation driven business development
Innovation driven business development Contorta-pine: 40% more productive Contorta-pine brings new timber volume and new products Contorta pine introduced 1970, now it starts to deliver – 100,000 m3 this year Project covering the whole value chain CTMP pulp from contorta a commercial produ
Slide 41: Short term action focus
Short term action focus 84 improvement projects strengthening earnings and cash flow Continued focus on productivity Strong customer offers 41 SCA Capital Market Day 2008
Slide 42: Hygiene Focus
Hygiene Focus Jan Johansson 42 SCA Capital Market Day 2008
Slide 43: SCA – one of three leading hygiene companies worldwide
SCA – one of three leading hygiene companies worldwide 15% • Sales in more than 90 countries • SEK 55.5bn net sales (hygiene) 43 SCA Capital Market Day 2008
Slide 44: Hygiene Matters!
Hygiene Matters! Everchanging habits and behaviour calls for innovation Still myths, social and cultural taboos surrounding basic hygiene needs, affecting health and well being We know the local and international context 44 SCA Capital Market Day 2008
Slide 45: Hygiene sales increases in SCA
Hygiene sales increases in SCA % of sales 46% 56% Packaging and Forest Products 54% 44% Hygiene Products 1997 9M 2008 45 SCA Capital Market Day 2008
Slide 46: Population growth 2005-2020
Population growth 2005-2020 Demographics People, millions +18% +18% +14% +5% +51% 46 SCA Capital Market Day 2008
Slide 47: Personal Care categories combined
Personal Care categories combined Market value outlook EURbn 45* 29* * SCA estimates 47 SCA Capital Market Day 2008
Slide 48: Our arena: Essential Hygiene
Our arena: Essential Hygiene Care Health Convenience 48 SCA Capital Market Day 2008
Slide 49: Leverage of current assets
Leverage of current assets Drive global brands and global platforms A strong innovation portfolio requires critical mass and creates speed to market Regional innovation capability secures speed and local competitiveness Increase no of countries with value share of >20% 49 SCA Capital Market
Slide 50: Strategic focus
Strategic focus Hygiene categories Inco Fempro Baby AFH CT Strengthen • Leading positions in European home market (market share and value) • Profitability Consumer Tissue (EU, Mexico, Australia) • Innovations and speed to market Grow • Prioritized growth markets • Eastern Europe/Russia • Latin Ameri
Slide 51: Tissue Europe
Tissue Europe Mats Berencreutz 51 SCA Capital Market Day 2008
Slide 52: Consumer Tissue Europe
Consumer Tissue Europe Clear no. 1, 26% market share No 1 No 2 No 3 52 SCA Capital Market Day 2008
Slide 53: Financial turn-around
Financial turn-around ROCE development for Tissue Europe ROCE 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 2003 2004 2005 2006 2007 9M 2008 53 SCA Capital Market Day 2008
Slide 54: Lift and Shift
Lift and Shift Lift Shift Sourcing Excellence Facility Service Partnership Service Level Brand expansion South Supply Chain Excellence Category Leadership Price Management and “Go To Market” approach Convert textile Turnaround critical markets Channel Management UK, Nordic and Italy 54 SCA Capital M
Slide 55: Acquisition synergies
Acquisition synergies Synergies in sales and marketing and supply chain Full achievement of cost synergies in 2010 Revenue synergies related to branding, market share and pricing power to be realized over time Synergies, SEKm 100% 62% 35% Total annual cost synergies in 2010: SEK 700m 55 SCA Ca
Slide 56: Integration of acquired business
Integration of acquired business 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% replenishment flows 18% Supply ch
Slide 57: Strong supply chain
Strong supply chain Svetogorsk Drammen Kammenogorsk Lilla Edet Sovetsk Jönköping Prudhoe Oakenholt Skelmersdale ChesterfieldManchester Suameer Neuss Witzenhausen Stembert Kostheim Le Theil Mannheim 28 Locations Orleans Ortmann 44 Paper Machines 238 Converting Lines Collodi Lucca Pratovecchio 8,400 E
Slide 58: What brands in what countries?
What brands in what countries? 58 SCA Capital Market Day 2008
Slide 59: SCA Capital Market Day 2008
59 SCA Capital Market Day 2008
Slide 60: European Brand Strategy
European Brand Strategy Umbrella brand Brand Clusters Category Specific One brand used One brand One brand per across categories covering “clusters” category (sub-brands) of products with similar brand attributes “Brand clusters based on market needs” SCA Future Current European position brand- stra
Slide 61: New European Brand positioning
New European Brand positioning Brand clusters based on consumer needs PERSONAL HYGIENE OBJECT HYGIENE “Products that touch my body” “Products that tidy & clean surfaces” 61 SCA Capital Market Day 2008
Slide 62: Consumer Needs
Innovation & Category Expansion Pampering Hygiene Systems Wellness NEW EMOTIONAL NEW Health Convenience Aesthetics Environmental Cold Care Hanky Relieving Hygienic Impregnated Wipes Cleaning Lotion Tissues Caring Consumer Needs Moist Tissues Tidying & Dispensers Washing Cleaning Toilet Tissue Hanky
Slide 63: European Brand Strategy
European Brand Strategy 2007 Focused, differentiated & consumer relevant mega-brand portfolio Complicated, region specific, inefficient brand portfolio Personal Hygiene DACH East Nordic NL Object Hygiene One brand 63 SCA Capital Market Day 2008
Slide 64: AFH Europe
AFH Europe No. 1 position, 17% market share No 1 No 2 No 3 64 SCA Capital Market Day 2008
Slide 65: Profitable growth
Profitable growth Focus areas Focused segments: HoReCa, Industrial, Health Care, Facility services / Textile users Go-to-market approach and organisation capabilities Strong customer relations Tork growth in premium segment Value added sales - more than 80% of total sales Grow faster tha
Slide 66: Growth in Eastern Europe
Growth in Eastern Europe Double digit growth in Eastern Europe Grow at least 2 times faster than market Build on International Customer entries in East markets Improve profitability primarily through supply chain improvement Double the business and achieve 20% market share 66 SCA Capital Mar
Slide 67: SCA Capital Market Day 2008
67 SCA Capital Market Day 2008
Slide 68: Innovations
Innovations Focus on proprietary systems At least one launch per product area / year Short term 2008 / 2009 Washroom segment Object Wiping Long term Innovations driven by insights regarding customers and end-users 68 SCA Capital Market Day 2008
Slide 69: AFH Tissue North America
AFH Tissue North America Thomas Wulkan 69 SCA Capital Market Day 2008
Slide 70: Growing with innovation in the world's largest AFH Tissue market
Growing with innovation in the World's largest and most developed AFH Tissue market North America - the world's largest Other SCA 20% AFH Tissue market Cascades 19% 5% "Fast food" culture Bay West US consumer away-from-home 6% 30% 20% food spending > at-home Georgia Kimberly- Pacific Clark S
Slide 71: Industry shaper in Food service
Industry shaper in Food service Two-player market Tabletop (napkins), 510 kton Fastest growing segment Other, SCA, 20% 39% 35% of total market 3-4% annual growth GP, 38% SCA leading innovation in K-C, 3% tabletop with Xpressnap Washroom/Wipers, 300 kton Winning with broadline food- Other
Slide 72: Grow value added in Commercial
Grow value added in Commercial Largest segment (40%) Attractive washroom offer key driver of value creation Effective go-to-market strategy important to reach fragmented end-user group Commercial, 950 kton Service contractors control 60% Other, SCA, of purchases to buildings 11% 17% BW, Go
Slide 73: AFH Tissue North America strategic focus
AFH Tissue North America Strategic focus Continue to drive rapid growth of value added systems From 5% to 20% of sales in 3 years Target to reach 30% by 2010 Deliver the TORK® promise Industry leading service and customer management Build world class supply chain 73 SCA Capital Market Da
Slide 74: Growing with winning customers
Growing with winning customers Strategic partners growing 2x industry average Industry leading service and customer management Attractive, differentiated and competitive offering Leading sustainability position ® 74 SCA Capital Market Day 2008
Slide 75: Tork Xpressnap
Tork Xpressnap US$ 70 million annual sales in 5 years Transforming commodity napkins to high margin proprietary product line Increased customer satisfaction Dispenses one napkin at a time...every time Cutting costs and labor Simple way to promote in-store items Increased sales and profit
Slide 76: More innovation in the pipeline
More innovation in the pipeline Currently placing 1.1 million dispensers/yr Torkmatic; Intuition; Xpressnap Multiple line extentions Elevation launch Next generation Xpressnap New designs; New formats Drive through Introducing Premium tissue substrates Target to reach 40% value added
Slide 77: World class supply chain
World class supply chain Cost and service leadership Strong, regional supply and manufacturing operations Focus investments on long term competitive assets High performance, team based work systems Fill rates > 99% Increase control of recovered paper sources Further optimization of reg
Slide 78: What to strengthen
What to strengthen Martin Källström 78 SCA Capital Market Day 2008
Slide 79: Strengthen Tena no 1 position, improve Baby Diapers
Strengthen Tena no 1 position Brand Innovation Prescence Improve Baby Diapers profitability 79 SCA Capital Market Day 2008
Slide 80: Incontinence Care
Incontinence Care 80 SCA Capital Market Day 2008
Slide 81: TENA a big and growing category
TENA a big and growing category Personal Care sales 2007 by product segment Personal Care sales 2007: SEK 22.1bn 81 SCA Capital Market Day 2008
Slide 82: Incontinence care
Incontinence care Market still dominated by heavy inco Global market size: EUR 5,200m 82 SCA Capital Market Day 2008
Slide 83: TENA – a true success story
TENA – a true success story Sales 1987 - 2007 EURm 1987-2007 Annual growth: 11% 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 84: High growth potential
High growth potential Usage of incontinence care products Units/capita/year Potential to grow the Incontinence usage on mature markets with >30% North America Western Europe Eastern Europe Latin America Asia 84 SCA Capital Market Day 2008
Slide 85: Tena Europe
Tena Europe 85 SCA Capital Market Day 2008
Slide 86: Strong position in a growing market
Strong position in a growing market European incontinence market per channel SCA 68% market share SCA 37% market share SCA 34% market share European market size 2007: EUR 2,290m, growth: 5% SCA 40% market share 86 SCA Capital Market Day 2008
Slide 87: Consistent growth in all channels
Consistent growth in all channels EURm 1,200 1,000 800 600 400 200 2000 2001 2002 2003 2004 2005 2006 2007 Home Care/Others Institutions Retail 87 SCA Capital Market Day 2008
Slide 88: Market dynamics Europe
Market dynamics Europe Average growth approx 5% Growth in all channels Demographics Penetration in light inco Eastern Europe above average growth Low penetration in all segments GDP growth Health Care funding under pressure 88 SCA Capital Market Day 2008
Slide 89: TENA strategy Europe
TENA strategy Europe Lead development in all product segments and channels Drive penetration with innovation and “first to market” Total incontinence management drives value and growth for TENA in Health Care Production in East Continue build TENA brand 89 SCA Capital Market Day 2008
Slide 90: Innovation drives value
Innovation drives value Sales price per piece 2P AiO Flex Pants 90 SCA Capital Market Day 2008
Slide 91: Tena for Men
Tena for Men 91 SCA Capital Market Day 2008
Slide 92: Male incontinence comes with age
Male incontinence comes with age 85+ 85+ 80-84 80-84 75-79 75-79 70-74 70-74 65-69 65-69 60-64 60-64 55-60 55-60 50-54 50-54 45-49 45-49 40-44 40-44 35-39 35-39 30-34 30-34 20-29 20-29 -20 -20 0 10 20 30 40 % 0 10 20 30 40 % Source: SCA Universal Truth, 2005 92 SCA Capital Market Day 2008
Slide 93: TENA share of Male Pads market
TENA share of Male Pads market Europe North America 2006 - Volume Market Shares 93 SCA Capital Market Day 2008
Slide 94: But still very low penetration
But still very low penetration % 100 90 80 70 60 50 Remaining potential: EUR 500m 40 30 20 10 0 Sweden US Holland Belgium Canada France Germany Portugal Italy England Ireland Norway Austria Switzerland Denmark Finland Czechia Hungary Slovakia Spain Baltic Poland 94 SCA Capital Market Day 2008
Slide 95: Understanding our consumers
Understanding our consumers “A “A women women withwith this this incontinence incontinence problem problem ”I ”I have have toto pay pay at at that that age age is is natural, natural, attention attention when when II take take she’s she’s had had children… children… the the lift.” lift.” but but for
Slide 96: From insight to future innovation
From insight to future innovation Packaging Communication Products 96 SCA Capital Market Day 2008
Slide 97: Improving Baby Diaper profitability
Improving Baby Diaper profitability 97 SCA Capital Market Day 2008
Slide 98: Improve Baby Diapers profitability
Improve Baby Diapers profitability Open diapers Pant diapers Existing technology New capacity Branded Retailer Brand Adding Elastic New lines New technology New technology Side Panels Margins to be restored autumn 2009 98 SCA Capital Market Day 2008
Slide 99: What to grow
What to grow Jan Johansson 99 SCA Capital Market Day 2008
Slide 100: Grow
Grow Brand presence and capacity Eastern Europe / Russia Latin America Middle East, Malaysia, Thailand 100 SCA Capital Market Day 2008
Slide 101: Growth regions: Latin America, South East Asia, Middle East, Eastern Europe
Latin America South East Asia 9 Strong SCA Positions Strong SCA Positions 9 Good market growth Good market growth 9 9 Favourable socio-demographics Favourable socio-demographics 9 Middle East Eastern Europe / Russia Strong SCA Positions Strong SCA Positions 9 9Good market growth Good market growth 9
Slide 102: Bild med ryskt tema
Bild med ryskt tema 102 SCA Capital Market Day 2008
Slide 103: SCA's hygiene products in Russia
SCA’s hygiene products in Russia Share of Sales 9% 13% Total Sales 2007: EUR ~150m 54% 24% Market entry in 1994 Tissue Branded product offers Baby Diapers Feminine Care Strategy to grow Sales EURm Incontinence Care 140 Strive for no. 1 (or no. 2) brand 120 +3 3% 100 AGR positions C 80 Effi
Slide 104: Strong positions in Russia
Strong positions in Russia Personal Care Tissue Personal Care Consumer tissue Baby diapers No.1 with the Zewa brand, 40% No.3 with the Libero brand. market share 20% market share. Innovation AFH tissue leader in pant segment. No.1 with the TORK brand Feminine care No. 2 in premium feminine c
Slide 105: High potential for hygiene products
High potential for hygiene products Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year 20 20 300 1500 15 15 200 10 1000 10 500 100 5 5 0 0 0 Incontinence care 0 Baby diapers Feminine care Tissue Western Europe Eastern Europe Russia 105 SCA Capital Market Day
Slide 106: Investments in Russia
Investments in Russia Tissue Personal Care New Tissue plant located in Tula, New Personal Care plant located south of Moscow in Tula, south of Moscow Annual tissue production capacity of Local production to meet rising ~30,000 tonnes consumer demand Combined building for tissue Improves
Slide 107: SCA Capital Market Day 2008
107 SCA Capital Market Day 2008
Slide 108: Latin America - markets
Latin America - markets Market size: Tissue USD 5bn High growth both in AFH and Consumer Tissue Growth: 4-5% per year Low degree of consolidation Incontinence care Market size: SCA is the market leader USD 0.3bn Growth: 11-12% Growth driven by increased penetration and per year demographics Feminine
Slide 109: Mexico and Central America market background
Mexico and Central America Market background High market growth driven by rapidly increasing penetration Market size by category Estimated growth by category 100%=US$ 4,2 billion % Inco 2% Incontinence 20 Feminine 10% Baby 15 Consumer Feminine 30% 53% Tissue 10 Baby AFH Tissue CT 5 0 Market size AFH
Slide 110: SCA in Mexico and Central America
SCA in Mexico and Central America Manufacturing locations: Net sales: US$ 500 million Personal Care Tissue Employees: 2,800 Fast growing markets Market positions: – #2 in Tissue behind very strong K-C – SCA, K-C and P&G fighting for leadership in Feminine SCA market share by category Consume
Slide 111: SCA in South America
SCA in South America Joint Ventures Net Sales 2007: US $ 283 million (SCA share) Employees: approximately 3,800 Fast growing markets SCA markets Strong brands Manufacturing Leading positions in Colombia, Ecuador, Peru and Dominican Republic SCA market share by category Tissue Baby # 2 be
Slide 112: Bild med asiatiskt/malaysiskt tema
Bild med asiatiskt/malaysiskt tema 112 SCA Capital Market Day 2008
Slide 113: Malaysia – baby diapers
Malaysia – baby diapers Strong sales growth TUSD No. 1 37% market share Launch of Newborn Product and XXL upgrade 2000-2007 CAGR*: 21% Launch of Drypantz Marketing begins 1999 2008 *Compounded annual growth rate 113 SCA Capital Market Day 2008
Slide 114: Summary
Summary Jan Johansson 114 SCA Capital Market Day 2008
Slide 115: Summary
Summary COST AND CAPITAL CASH FLOW EFFICIENCY INNOVATIONS Innovation as prioritized business driver Higher cash flow Strengthening European positions More concentrated geographical growth ROCE of 13% Consolidation needed 115 SCA Capital Market Day 2008