Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A

Svenska Cellulosa AB SCA Class A — SCA — CAGE Conference in London 2014

18 slides from Svenska Cellulosa AB SCA Class A's conference presentation, March 2014

  1. Slide 1: CAGE Conference in London

    CAGE Conference in London Jan Johansson, President and CEO

  2. Slide 2: SCA Group

    SCA Group Leading global hygiene and forest products company  Sales of SEK 99bn*  44,000 employees  Sales in about 100 countries  #1 or #2 positions in about 90 countries  Strong brands;  TENA and Tork are leading global brands for incontinence products and AfH tissue  China’s third largest t

  3. Slide 3: Transformation of SCA

    Transformation of SCA  Divestment of the Packaging business, excluding the two kraftliner mills  Acquisition of Georgia-Pacific’s European tissue operations  Acquired majority ownership in Vinda  Strengthened positions in emerging markets  Acquisition of Everbeauty in Asia  Acquisition of PISA

  4. Slide 4: Acquired Majority Ownership in Vinda

    Acquired Majority Ownership in Vinda Leading tissue company in China  2012 Sales: approximately SEK 5bn  Extensive distribution network across China  More than 300,000 points of sales  Strong brand  No. 3 in China March 2014 CAGE conference in London 4

  5. Slide 5: Leading Market Positions

    Leading Market Positions Globally and Regionally Europe Nordic region North America Tissue: 1 Incontinence products: 1 Incontinence products: 3 Incontinence products: 1 Baby diapers: 1 Baby diapers: 2 AfH tissue: 3 AfH tissue: 1 Feminine care: 3 Consumer tissue: 2 Mexico Private forest owners: 1 Fem

  6. Slide 6: SCA Group: 2013 Sales and EBIT by Business Area

    SCA Group 2013 Sales and EBIT by Business Area Forest Products Sales Personal Care EBIT 16% 17% EBIT 32% 32% Tissue 51% EBIT 52% March 2014 CAGE conference in London 6

  7. Slide 7: SCA Group: 2013 Sales by Product Segment

    SCA Group 2013 Sales by Product Segment Personal Care Tissue Feminine care 17% Incontinence products 38% AfH tissue 52% Baby diapers 31% 62% 75% branded Consumer tissue 54% branded March 2014 CAGE conference in London 7

  8. Slide 8: SCA Group's Priorities

    SCA Group’s Priorities EFFICIENCY INNOVATION GROWTH March 2014 CAGE conference in London 8

  9. Slide 9: Financial Targets

    Financial Targets Business areas Sales growth* ROCE** Personal Care 5-7% 30% Tissue 3-4% 15% Forest Products in line with market in top quartile Group Debt/Equity 0.70 Debt payment capacity above 35% Dividend policy 1/3 of cash flow from current operations * Annual organic sales growth ** Return on

  10. Slide 10: Efficiency Programs

    Efficiency Programs  Hygiene business cost and productivity program  Annualized cost savings in Q4 2013: approx. EUR 175m  Total annual cost savings of EUR 300m, full effect in 2015  Georgia-Pacific synergies  Annualized cost savings in Q4 2013: approx. EUR 55m  Total annual cost savings of EU

  11. Slide 11: Innovation drives Profitable Growth

    Innovation drives Profitable Growth Strengthens market positions and profitability March 2014 CAGE conference in London 11

  12. Slide 12: Growth

    Growth  Sales growth of 10%* in 2013  Good growth in emerging markets  Personal Care sales growth of 10%** in 2013  Tissue sales growth of 13%** in 2013  Acquired majority ownership in Vinda  Investment in India  Launch of Libero and Tempo * 2013 compared with 2012, excluding exchange rate ef

  13. Slide 13: Market Drivers

    Market Drivers Good growth opportunities  Global population growth  An aging population  Increased market penetration  Higher disposable income  Customers and consumers demand more comfort and sustainability March 2014 CAGE conference in London 13

  14. Slide 14: Aging Population

    Aging Population Total population over 60 years exceeding 1 billion by 2020 Millions over 1 200 60 years old +25% 1 000 800 600 2013 2020 400 +30% +13% 200 +22% 0 Total world Europe China USA March 2014 CAGE conference in London 14

  15. Slide 15: Hygiene Products

    Hygiene Products High potential in markets with low penetration Usage of Hygiene products Units/person with incontinence/year Units/child up to 2.5 years/year Units/woman 15-49 years/year Kg/capita/year 700 2 000 400 25 600 1 500 20 500 300 400 15 1 000 200 300 10 200 500 100 5 100 0 0 0 0 Incontine

  16. Slide 16: Growth: Good growth in Emerging markets

    Growth Good growth in Emerging markets Group Personal Care Tissue Emerging Emerging Emerging 26% markets markets 20% markets 42% 58% Mature 74% Mature Mature markets markets markets 80% Growth in Emerging Markets 2013: 11%* 10%* 13%* * 2013 compared with 2012, excluding exchange rate effects March 2

  17. Slide 17: Summary

    Summary 2013 vs 2012  Sales increased 10%*  Hygiene business, 12%*  Forest Products, 0%**  EBIT increased 19%***  Proposed increase in the dividend by 5.6% to SEK 4.75 per share * Excluding exchange rate effects and divestments ** Excluding divestments *** Excluding items affecting comparabilit

  18. Slide 18: Slide 18

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