Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A

Svenska Cellulosa AB SCA Class A — SCA — UBS conference (September 2009)

25 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Sep 15, 2009

  1. Slide 1: UBS conference

    UBS conference 15 September 2009 Lennart Persson, CFO 15 September 2009

  2. Slide 2: SCA – a global hygiene products and paper company

    SCA – a global hygiene products and paper company ƒ Net sales of SEK 110bn ƒ 52,000 employees and sales in 90 countries ƒ TEN and Tork leading global brands for incontinence care and Away From Home tissue ƒ Ranked 2nd greenest company in the world (2007), one of the world’s 100 most sustainable comp

  3. 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 15 September 2009

  4. Slide 4: 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

  5. Slide 5: Different focus

    Different focus Two 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 5 15 Se

  6. Slide 6: Packaging

    Packaging ƒ Full-service packaging provider ƒ Europe’s second largest supplier of 14% corrugated packaging 16% ƒ Strategy to increase value content 70% ƒ Main customers are companies within the fast moving consumer goods and industrial segments Conventional Packaging Consumer Packaging Other 6 15 Se

  7. Slide 7: Packaging: Short term action focus

    Packaging Short term action focus ƒ Optimizing current asset base ƒ Increased efficiency and cash flow ƒ Cost reduction ƒ Evaluate need for capacity closures 7 15 September 2009

  8. Slide 8: Packaging: Immediate corrective measures

    Packaging Immediate corrective measures Containerboard ƒ Early closure of New Hythe testliner mill mid 2009 (capacity 260,000 tonnes) ƒ Headcount optimization Corrugated Corrugated ƒ Downsizing and optimization of businesses ƒ Closure of 11 corrugated units ƒ Productivity and product mix improvement

  9. Slide 9: Packaging: Efficiency potential

    Packaging Efficiency potential Annual EBIT savings Total cost SEK 1,700m SEK 1,070m from Q2 2010, EBIT margin improvement Write down Cash 3-3.5 percentage points expenditure SEK 640m SEK 1,060m 2009 EBIT savings Headcount reduction approximately 2,200, SEK 310m corresponding to ~14% of total Europea

  10. Slide 10: Forest Products: Business overview

    Forest Products Business overview ƒ Supplier of publication papers 6% ƒ Europe's largest private owner of 11% forestland, 2.6 million hectares 14% 36% ƒ Supplier of pulp 22% 17% ƒ Supplier of solid-wood products ƒ Main customer segments: SC / LWC paper Timber publishers and printers, wood processing

  11. Slide 11: Forest Products: Short term action focus

    Forest Products Short term action focus ƒ Continued focus on productivity ƒ Strong customer offers ƒ 84 improvement projects strengthening earnings and cash flow 11 15 September 2009

  12. Slide 12: Growth: High growth in emerging markets

    Growth High growth in Emerging markets 2008 Emerging markets hygiene sales growth: Personal Care: +15% Tissue: +18% % of Hygiene sales in 1998 % of Hygiene sales in 2008 5% Emerging markets Emerging markets 25% Mature markets Mature markets 12 15 September 2009

  13. Slide 13: Growth: High potential in markets with low penetration

    Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year Potential to grow the Incontinence usage on mature markets with >30% North America Western Europe Eastern Europe Latin America Asia 13 15 September 2009

  14. Slide 14: Personal Care: TENA - a EUR 1bn brand

    Personal Care TENA - a EUR 1bn brand Personal Care sales 2008: SEK 23.3bn 14 15 September 2009

  15. Slide 15: Personal Care: Strategic focus

    Personal Care Strategic focus Inco Baby Fempro Strengthen ƒ World-leading position within inco with the brand Tena ƒ Innovations and speed to market ƒ Continuosly enhance production and distribution efficiency ƒ Profitability in Baby diapers Grow ƒ Prioritized growth markets ƒ Eastern Europe/Russia

  16. Slide 16: TENA - a true success story

    Personal Care TENA - a true success story Emerging markets Annual sales growth 1988-2008: 11% North America EURm Design Internet South Europe TV Retail North Reimbursement Europe New products & services 16 15 September 2009

  17. Slide 17: Tissue: TORK - a EUR 1bn brand

    Tissue TORK – a EUR 1bn brand AFH tissue Consumer Tissue 36% 64% Tissue sales 2008: SEK 38.4bn 17 15 September 2009

  18. Slide 18: Tissue: Strategic focus

    Tissue Strategic focus Away-From-Home Consumer tissue ƒ Develop global AFH-brand TORK Strengthen ƒ Leading positions in European home market (market share and value) ƒ Profitability in Consumer tissue: EU, Mexico, Australia ƒ Innovations and speed to market ƒ Prioritized growth markets Grow ƒ Easter

  19. Slide 19: Integration of acquired Consumer Tissue business

    Tissue Integration of acquired Consumer Tissue business Commercial synergies Cost synergies ƒ Front loaded synergies related to sales force and category resources Supply chain restructuring synergies Supply chain integration Commercial Synergies 40% ƒ Optimizing logistics and internal 42% replenishm

  20. Slide 20: SCA Group: Short and medium term direction

    SCA Group Short and medium term direction COST AND CAPITAL CASH FLOW EFFICIENCY INNOVATIONS ƒ Innovation as prioritized business driver ƒ Higher cash flow ƒ Strengthening European positions ƒ More concentrated geographical growth ƒ ROCE of 13% ƒ Consolidation needed 20 15 September 2009

  21. Slide 21: Q2 2009 SCA business market update

    Q2 2009 SCA business market update Hygiene business ƒ Stable demand for Personal Care and Consumer tissue ƒ Lower demand for AFH tissue ƒ Continued good growth in emerging markets Packaging and Forest Products ƒ Continuous weak demand for Packaging ƒ Stable demand for publication paper and increased

  22. Slide 22: Q2 2009 results

    Q2 2009 results SEK millions Q2 Q2 Change, unless otherwise stated 2009 2008 % Net sales 27,915 27,339 2 EBIT* 2,368 2,199 8 EBIT margin (%)* 8.5 8.0 Profit before tax* 2,014 1,703 18 Earnings per share (SEK) 1.66 1.96 -15 Cash flow from current operations 3,047 714 Debt/Equity ratio 0.71 0.66 * Exc

  23. Slide 23: Outlook 2009

    Outlook 2009 ƒ Hygiene businesses Š Increased price focus Š Stable demand ƒ Packaging Š Continued weak demand Š Price pressure Š Lower liner inventory levels ƒ Forest Products Š Publication papers • Low demand • Price pressure mainly in magazine paper Š Solid-wood products • Improved market balance

  24. Slide 24: Q & A

    Q&A 24 15 September 2009

  25. Slide 25: essentials for everyday life

    essentials for everyday life™

SCA — UBS conference (September 2009) on 6ix