Slide 1: Year-end Report 2010
Year-end Report 2010 Jan Johansson, President and CEO Year-end Report 2010
Slide 2: Summary – Full year 2010
Summary – Full year 2010 EBIT increased 4%* 4% Higher volumes in all businesses Higher prices in Packaging and Tissue SEK 1bn in cost savings Significant profit improvement in Packaging SEK 5.2bn 5 2bn in increased raw material costs Negative currency impact Profit before tax increas
Slide 3: SCA Group Strategic Priorities
SCA Group Strategic Priorities Cost reductions in all Efficiency programs in SCA Group 5%* Personal Care business areas of Packaging and Forest Thin baby diaper SEK 1bn Products Personal Care 2%** Tena Ultra thins Emerging markets 10%** Cash flow from Closure/Divestment Strong
Slide 4: Full year 2010 vs. 2009 – SCA market update
Full year 2010 vs. 2009 SCA market k t update d t Hygiene business Good G d volume l growth th iin IIncontinence ti care, F Feminine i i care and d AFH titissue Good sales growth in Emerging markets Personal Care 10%* Tissue 6%* Packaging and Forest Products Increased demand for Packag
Slide 5: Q4 2010 vs. Q4 2009 – SCA market update
Q4 2010 vs. Q4 2009 SCA market k t update d t Hygiene business Higher volumes in all product categories Strong sales growth in Emerging markets Personal Care 16%* Tissue 11%* Packaging and Forest Products Increased I dddemand d ffor P Packaging k i • Corrugated volumes increased 3% • C
Slide 6: Full year 2010 results
Full year 2010 results SEK millions Change, Change, unless otherwise stated 2010 2009 % %** Net sales 109,142 110,857 -2 5*** EBIT* 9,608 9,648 0 4 EBIT margin* i * (%) 88 8.8 87 8.7 Profit before tax* 8,492 8,004 6 10 Earnings per share (SEK) 7 90 7.90 6 78 6.78 17 Cash flow from current operations
Slide 7: Q4 2010 results
Q4 2010 results SEK millions Q4 Q4 Change, Change, unless otherwise stated 2010 2009 Q4/Q4,%* Q4/Q4,%** Net sales 27,564 27,507 0 8*** EBIT* 2,567 2,568 0 5 EBIT margin* (%) 9.3 9.3 Profit before tax* 2,274 2,280 0 5 Earnings per share (SEK) 2 38 2.38 1 72 1.72 38 Cash flow from current operations 2
Slide 8: Q4 2010 vs. Q3 2010
Q4 2010 vs. Q3 2010 Summary Group Sales S l iincreased d 4%* EBIT increased 3%** Profit before tax increased 3%** Business areas Personal Care, EBIT increased 10%** • Improved price/mix • Higher volumes Tissue, EBIT increased 9%* • Higher volumes and prices Packaging, EBIT increased
Slide 9: Net debt
Net debt A dd And debt bt paymentt capacity it SEKm Net debt decreased SEK 6 bn % 50 000 50 36% 40% 40 000 40 33% 35% 33% 30 000 30 20 000 20 10 000 10 0 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Net debt Debt payment capacity 9 Year-end Report 2010
Slide 10: Personal Care
Personal Care I iti ti Initiatives 2010 Restructuring program in baby diapers in Europe Annual savings of EUR 15m with full effect in Q3 2011 Investment in local production in Russia Acquisition of Copamex baby diapers business No. 3 in Mexico Growth Tena T h iincreased has d market k
Slide 11: Personal Care
Personal Care Q4 2010 vs. Q4 2009 6,375 6,393 6,125 , Sales flat (+6%*) Incontinence care increased 4%* 0% Feminine care increased 5%* Baby diapers increased 8%* 8% Emerging markets increased 16%* Incontinence care 10%* SALES SEKm Q410 Q4 09 Q3 10 Baby diapers 21%* 21% Feminine care
Slide 12: Tissue
Tissue I iti ti Initiatives 2010 Implementation of price increases Investment in new tissue plant in Mexico European brand migration project Growth Tork has gained market share in Europe and North America Emerging market sales increased 6%* Innovation I ti Tork Xpressnap Café Tork P
Slide 13: Tissue
Tissue Q4 2010 vs. Q4 2009 10 338 10,338 Sales decreased by 2% (+5%*) 10,154 9,924 Consumer tissue increased 6%* AFH tissue increased 4%* -2% Emerging g g markets increased 11%* Consumer tissue increased 14%* AFH tissue increased 3%* SALES SEKm Q410 Q4 09 Q3 10 EBIT decreased by 18% (-
Slide 14: Packaging
Packaging I iti ti Initiatives 2010 Finalized restructuring program Annualized savings of SEK 1,070m Divestment of the Asian packaging operation Annual sales of USD 250m Price increases Innovation Trueflo ZeoCool 14 Year-end Report 2010
Slide 15: Packaging
Packaging Q4 2010 vs. Q4 2009 Sales increased 6% (+25%*) 7,405 6,960 7,392 Higher prices and volumes 6%* EBIT increased to 567 MSEK ((149 MSEK**)) Higher prices and volumes Savings from restructuring program Higher raw material costs SALES SEKm Q410 Q4 09 Q3 10 567 512 281%** 149** EBIT
Slide 16: Forest Products
Forest Products I iti ti Initiatives 2010 Efficiency project at Ortviken paper mill Annual savings of SEK 45m when fully realized Creation of Gällö timber AB SCA Energy, new business unit SCA SCA’ss deliveries of FSC certified publication paper increased 35% 16 Year-end Report 2010
Slide 17: Forest Products
Forest Products Q4 2010 vs. Q4 2009 Sales increased 2% (+4%*) 4,290 4,415 Higher volumes 4,201 Publication papers 2% • Lower prices Solid-wood products and Pulp • Higher prices S SALES S SEKm S Q410 Q4 09 Q3 10 EBIT decreased d d 10% 661 685** Higher volumes 592 Higher raw material and
Slide 18: Dividend
Dividend Proposed 8% increase of the dividend to SEK 4.00 ((3.70)) p per share 18 Year-end Report 2010
Slide 19: Outlook 2011
Outlook 2011 Good demand for all businesses Good growth in Emerging markets for Hygiene businesses Continued high raw material costs Increasing corrugated prices Price increases on publication papers 19 Year-end Report 2010
Slide 20: Q&A Year-end Report 2010
Q&A 20 Year-end Report 2010
Slide 21: Year-end Report 2010
aN SCA ch Life he Li Because our products make life easier for C/O you and for millions of people around the world. Because our resources and the way we work are natural parts of the global lifecycle. And because we care. Year-end Report 2010