Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — UBS conference (March 2013)
18 slides from Svenska Cellulosa AB SCA Class A's conference presentation, March 2013
Slide 1: UBS conference
UBS conference Mats Berencreutz, Executive Vice President
Slide 2: SCA Group
SCA Group Net sales of SEK 85.4bn 36,000 employees Sales in about 100 countries Leading global hygiene and forest products company #1 or #2 positions in close to 80 countries Strong brands; TEN and Tork are leading global billion-euro brands for Incontinence products and AFH tissue Europe’s largest
Slide 3: Key events 2012
Key events 2012 Divestment of the Packaging business, excluding the two kraftliner mills Acquisition of Georgia-Pacific’s European tissue operations Strengthened positions in emerging markets Acquisition of Everbeauty in Asia Increased shareholding in Vinda Acquisition of PISA in Chile Joint venture
Slide 4: Leading Market positions
Leading Market positions Globally and regionally Value market positions North America Nordic region Incontinence products: 2 Incontinence products: 1 Europe AFH tissue: 3 Tissue: 1 Baby diapers: 1 AFH tissue: 1 Incontinence products 1 Mexico Baby diapers: 2 Consumer tissue: 2 Incontinence products:
Slide 5: SCA Group: 2012 sales and EBIT by Business Area
SCA Group 2012 sales and EBIT by Business Area Sales by Business Area EBIT by Business Area Forest Products Personal Care Forest Products Personal Care 21% 15% 30% 35% 49% 50% Tissue Tissue 5 March 2013
Slide 6: SCA Group: 2012 sales by Product Category
SCA Group 2012 sales by Product Category Personal Care Tissue Feminine care 14% Incontinence products 38% 56% AFH tissue 30% 62% Baby diapers 73% branded Consumer tissue Approx. 50% branded 6 March 2013
Slide 7: Hygiene Aspiration
Hygiene Aspiration To own and develop 6-10 global brand platforms of > EUR 1bn each Strengthen our profitability in core markets Increase share of revenues and profit from D&E markets Increase share of revenues and profit from less capital intensive opportunities Increase share of branded business v
Slide 8: SCA Group's Priorities
SCA Group’s Priorities EFFICIENCY INNOVATION GROWTH SUSTAINABILITY 8 March 2013
Slide 9: Efficiency
Efficiency 2012 Cost and productivity program Annual cost saving: EUR 300m Full effect in 2015 Georgia-Pacific synergies Annual cost saving: EUR 125m Full effect in 2016 Efficiency program in Forest Products Annual earnings improvement: SEK 1,300m Full effect in 2015 9 March 2013
Slide 10: Cost and Productivity program
Cost and Productivity program* Key actions Manufacturing Blueprint implementation Cost savings Asset utilization improvements Best practice sharing SG&A Sourcing World-class sourcing processes Logistics 12% Leverage global scale 6% Manufacturing Consolidation of suppliers 43% Logistics Optimize ware
Slide 11: Georgia-Pacific Acquisition
Georgia-Pacific Acquisition Synergies Supply chain synergies Cost Cost synergies synergies Manufacturing excellence and best practice Support and Footprint optimization overhead Scale effects raw materials 25% Logistics optimization 60% Supply chain 15% Sales and Marketing Sales and Marketing S&M or
Slide 12: Innovation drives Profitable growth
Innovation drives Profitable growth Strengthens market positions and profitability 12 March 2013
Slide 13: Growth
Growth Sales growth of 11%* High growth in emerging markets Acquisition of Georgia-Pacific´s European tissue operations Acquisition of Everbeauty, an Asian personal care company Acquisition of PISA, a Chilean tissue company * 2012 compared with 2011, excluding exchange rate movements and divestments
Slide 14: 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 14 March 2013
Slide 15: Hygiene Products
Hygiene Products 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 15 March 2013
Slide 16: Growth: High growth in Emerging markets
Growth High growth in Emerging markets 2012 Emerging markets sales growth: Personal Care: +22%* Tissue: +19%* % of Personal Care 2012 sales % of Tissue 2012 sales Emerging markets 17% Emerging markets 36% Mature markets Mature markets * Excluding exchange rate effects 16 March 2013
Slide 17: Financial Targets
Financial Targets Group ROCE** 13% Debt/Equity 0.70 Debt payment capacity above 35% Dividend policy 1/3 of cash flow from current operations Business areas Sales growth* ROCE** Personal Care 5-7% 30% Tissue 3-4% 15% Forest Products in line with market in top quartile * Annual organic sales growth **
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