Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Cheuvreux conference (May 2012)
22 slides from Svenska Cellulosa AB SCA Class A's conference presentation, May 22, 2012
Slide 1: Cheuvreux conference
Cheuvreux conference Mats Berencreutz, Executive Vice President
Slide 2: SCA Group in 2011
SCA Group in 2011 Net sales of SEK 106bn 44,000 employees and sales in more than 100 countries World’s third-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s second-largest packaging company* Europe’s largest private forest owne
Slide 3: Leading market positions
Leading market positions Globally and regionally Nordic region North America Incontinence products: 1 Europe AFH tissue: 3 Baby diapers: 1 Tissue: 1 Incontinence products: 3 AFH tissue: 1 Corrugated board: 2 Consumer tissue: 2 Solid-wood products: 2 Mexico Baby diapers: 3 Incontinence products: 1 In
Slide 4: Strong global and regional brands
Strong global and regional brands Two global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America 4 May 2012
Slide 5: Major changes
Major changes Acquisition of Georgia-Pacific’s European tissue operations Divestment of the Packaging business, excluding the two kraftliner mills Established joint venture in Australia/New Zealand Acquisition of Everbeauty an Asian hygiene products company Increased shareholding in Vinda
Slide 6: Acquisition of Georgia-Pacific's European tissue operations
Acquisition of Georgia-Pacific’s European tissue operations Creates a leading European tissue company Strengthens SCA’s product offering and geographic presence Sales: EUR 1.25bn Purchase price: EUR 1.32bn Annual synergies: EUR 125m With full implementation of synergies, earnings per sha
Slide 7: Georgia-Pacific acquisition: Substantial synergies
Georgia-Pacific acquisition Substantial synergies Increased supply chain efficiency Optimization of logistics More efficient sourcing Improved SG&A and A&P efficiency Annual synergies: EUR 125m Improves Tissue EBIT margins by 2-2.5 percentage points Full effect in 3 years after closing
Slide 8: Georgia-Pacific acquisition: Enhances presence in tissue
Georgia-Pacific acquisition Enhances SCA’s presence in Consumer and AFH tissue European Consumer tissue market 25% SCA SCA and GP 35% European AFH tissue market SCA and GP SCA 20% 30% 8 May 2012
Slide 9: Georgia-Pacific acquisition: Increased share of branded sales
Georgia-Pacific acquisition Increased share of branded consumer tissue sales SCA’s Consumer tissue sales SCA SCA and GP Retailers’ Branded brands Branded Retailers’ 40% 50% brands 9 May 2012
Slide 10: Divestment of Packaging operations
Divestment of Packaging operations Divestment of Packaging operations to DS Smith Excludes SCA’s two kraftliner mills in Sweden Sales: SEK 24.4bn Purchase price: EUR 1.7bn on a debt-free basis Earnings per share declines by SEK 0.73* * Based on earnings for the period for 2011 10 May 2012
Slide 11: SCA Group after completion of ongoing transactions
SCA Group After completion of ongoing transactions Net sales of SEK 92bn 37,000 employees and sales in more than 100 countries World’s second-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s largest private forest owner Europe’s
Slide 12: Hygiene business is growing
SCA Group Hygiene business is growing % of net sales ~20%* 54% 40% 46% 60% ~80%* Forest Products and Hygiene products Packaging (Personal Care and Tissue) * Provided that the Packaging divestment and the acquisition of Georgia-Pacific’s European tissue business are closed according to plan. 12 May 2
Slide 13: SCA Group's strategic priorities
SCA Group’s strategic priorities EFFICIENCY INNOVATION GROWTH 13 May 2012
Slide 14: Efficiency
Efficiency Restructuring programme in baby diapers in Europe completed Efficiency programme Mainly related to Personal Care and Tissue Annual cost saving: SEK 700m Gradual impact in 2012-2013 Investments in upgrade of existing and new capacity 14 May 2012
Slide 15: Innovation
Innovation Strengthens market positions and profitability 15 May 2012
Slide 16: Growth
Growth Organic growth of 4%* High growth in emerging markets Acquisition of Georgia-Pacific´s European tissue operations Acquisition in Brazil Pro Descart, No. 2 in incontinence care Acquisition in Turkey San Saglik 95%, No. 2 in incontinence care Komili 50%, No. 4 in baby diapers an
Slide 17: Acquisition of Everbeauty
Acquisition of Everbeauty Leading Asian personal care company Sales: SEK 1.6bn* Sales split: baby diapers 60% and incontinence products 40% Purchase price: SEK 1.9bn Sales in China, Taiwan and Southeast Asia Strong brands, market positions and distribution • Incontinence care products • No
Slide 18: Growth potential for hygiene products
Growth Growth potential for hygiene products Global population growth An aging population Increased market penetration Higher disposable income Customers and consumers demand more comfort and sustainability 18 May 2012
Slide 19: 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 North America Western Europe Eastern Europe Latin America Asia 19 May 2012
Slide 20: High growth in emerging markets
Growth High growth in Emerging markets Q1 2012 Emerging markets sales growth: Personal Care: +23%* Tissue: +14%* % of Personal Care sales % of Tissue sales Emerging markets 18% Emerging markets 35% Mature markets Mature markets * Adjusted for exchange rate movements 20 May 2012
Slide 21: Q&A
Q&A 21 May 2012
Slide 22: IR Contacts
IR Contacts: Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor Relations Tel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: ir@sca.com Website: www.sca.com