Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Nordea Paper Seminar 2009
23 slides from Svenska Cellulosa AB SCA Class A's conference presentation, May 27, 2009
Slide 1: Nordea Paper Seminar
Nordea Paper Seminar Lennart Persson, CFO 27 May 2009
Slide 2: SCA – a global hygiene-products and paper company
SCA – a global hygiene-products and paper company Net sales of SEK 110bn 52,000 employees and sales in 90 countries TEN and Tork leading global brands for incontinence care and Away From Home tissue Ranked 2nd greenest company in the world (2007), one of the world’s 100 most sustainable comp
Slide 3: Sales split
Sales split Forest Products Personal Care 15% 21% 30% 34% Packaging Tissue Sales 2008 SEK: 110bn 3 27 May 2009
Slide 4: Hygiene sales increases in SCA
Hygiene sales increases in SCA % of sales 58% 45% Packaging and Forest Products 42% 55% Hygiene Products 1998 2008 4 27 May 2009
Slide 5: Different focus in the business groups
Different focus in the business groups Packaging & Hygiene Hygiene Products Products Forest Products Capitalize on growth Cash flow generation/ opportunities Asset base efficiency Higher value in Focus on value mature segments added offerings Increased shareholder value 5 27 May 2009
Slide 6: Strong global and regional positions
Strong global and regional positions Nordic region Baby diapers: 1 Europe North America Tissue: 1 AFH tissue: 3 Corrugated board: 2 Baby diapers: 2 Incontinence care: 1 Privately owned forests: 1 Mexico Global Hygiene products: 2 Incontinence care: 1 AFH tissue: 3 Colombia Incontinence care: 1 Austr
Slide 7: Growth
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 7 27 May 2009
Slide 8: Growth
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 8 27 May 2009
Slide 9: Hygiene Products – split by sales
Hygiene Products – split by sales Away-From- Incontinence Home tissue care 22% 21% 11% Baby diapers 40% 6% Consumer Feminine tissue care Sales 2008: SEK 62bn 9 27 May 2009
Slide 10: Hygiene Categories
Hygiene Categories Strategic focus Inco Fempro Baby AFH CT Strengthen • Leading positions in European home market (market share and value) • Profitability Consumer Tissue (EU, Mexico, Australia) • Innovations and speed to market Grow • Prioritized growth markets • Eastern Europe/Russia • Latin Ameri
Slide 11: Packaging
Packaging Full-service packaging provider Europe’s second largest supplier of 14% corrugated packaging 16% Strategy to increase value content 70% Main customers are companies within the fast moving consumer goods and industrial segments Conventional Packaging Consumer Packaging Other 11 27 M
Slide 12: Packaging
Packaging Short term action focus Optimizing current asset base Increased efficiency and cash flow Cost reduction Evaluate need for capacity closures 12 27 May 2009
Slide 13: Packaging
Packaging Market challenges SCA response High liner inventories Production curtailments Earlier closure of New Overcapacity Hythe testliner mill Rationalization of units Weak demand and work force 13 27 May 2009
Slide 14: Packaging
Packaging Immediate corrective measures Containerboard Early closure of New Hythe testliner mill mid 2009 (capacity 260,000 tonnes) Headcount optimization Corrugated Downsizing and optimization of businesses Closure of 11 corrugated units Productivity and product mix improvement at 50 unit
Slide 15: Packaging
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 SEK 310m approximately 2,200, corresponding to ~14% of total Europea
Slide 16: Forest Products
Forest Products Business overview Supplier of publication papers 6% Europe's largest private owner of 11% forestland, 2.6 million hectares 14% 36% Supplier of pulp 22% 17% Supplier of solid-wood products Main customer segments: SC / LWC paper Timber publishers and printers, wood processing
Slide 17: Forest Products
Forest Products Short term action focus Continued focus on productivity Strong customer offers 84 improvement projects strengthening earnings and cash flow 17 27 May 2009
Slide 18: SCA Group
SCA Group Short and medium term direction COST AND CAPITAL CASH FLOW EFFICIENCY INNOVATIONS Innovation as prioritized business driver Higher cash flow Strengthening European positions More concentrated geographical growth ROCE of 13% Consolidation needed 18 27 May 2009
Slide 19: Q1 2009 SCA business market update
Q1 2009 SCA business market update Hygiene business Stable demand in mature markets Continued good growth in emerging markets Packaging and Forest Products Continuous weak demand for Packaging Stable demand for solid-wood products and publication papers 19 27 May 2009
Slide 20: Q1 2009 results
Q1 2009 results SEK millions Q1 Q1 Change, Q4 unless otherwise stated 2009 2008 % 2008 Net sales 28,327 27,513 3 28,159 EBIT 2,136 2,471 -14 1,838 EBIT margin (%) 7.5 9.0 6.5 Profit before tax 1,511 1,946 -22 1,150 Earnings per share (SEK) 1.58 2.18 -28 2.02 Cash flow from current operations 1,640 -
Slide 21: Outlook 2009
Outlook 2009 Outlook 2009 Q4 2008 guidance remains Hygiene businesses Positive Packaging Negative Forest Products Stable 21 27 May 2009
Slide 22: Q & A
Q&A 22 27 May 2009
Slide 23: 27 May 2009
I essentials for everyday life™