19 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jan 30, 2015
Slide 1: SCA Year-end Report 2014
SCA Year-end Report 2014 Jan Johansson, President and CEO
Slide 2: Summary 2014
Summary 2014 Highest profit before tax ever Good organic sales growth Strong growth in emerging markets Strong cash flow Higher sales and profits in all business areas Continued work with efficiency Introduced about 30 innovations and product launches - Libero, Libresse, Lotus, Saba, Tempo, TENA and
Slide 3: Group
Group 2014 vs. 2013 Sales Organic Sales Growth Operating Profit* SEK SEK 104,054m +3% 11,849m +12% +14% Operating Margin* EPS Operating Cash Flow SEK 11.4% SEK 9.40 11,184m +20 bp +19% +26% * Excluding items affecting comparability and including gains on forest swaps of SEK 336m (583) before tax Jan
Slide 4: Efficiency Programs
Efficiency Programs Cost Savings EUR 290m EUR 300m EUR 300m 300 Hygiene business cost and efficiency program 200 Blueprint implementation in all sites Scale effects for sourcing realized 100 Warehouse efficiency programs 0 Annual Rate 2015 Target 2015 Q4 2014 Earnings Improvement 1500 SEK 1,300m SEK
Slide 5: Efficiency Programs
Efficiency Programs Examples of improvements Personal Care Tissue Tissue Machine Efficiency Machine Efficiency Machine Efficiency Converting Converting Papermaking 110 110 110 100 100 100 Index Index Index 90 90 90 80 80 80 2012 2013 2014 2012 2013 2014 2012 2013 2014 Personal Care and Tissue Person
Slide 6: Innovations and Product Launches
Innovations and Product Launches Q4 2014 TENA Lady Normal and Tempo ”Traumreise” TENA Pants Normal Extra with Body Shaped Drypers Drynights (Moments of Calm) Dry Zone More comfortable: 20 percent New body shaped dry zone, With “Our Longest Absorption A new scented hanky product and thinner with body
Slide 7: Innovations and Product Launches 2014
Innovations and Product Launches 2014 January 30, 2015 Year-end Report 2014 7
Slide 8: SCA Group
SCA Group Mature markets and Emerging markets 2012 2014 Share of Net Sales Share of Net Sales 24% 31% Operating Margin 2012 2013 2014 69% 76% Mature markets 10.9% 12.3% 13.5% Emerging markets 7.7% 7.7% 6.4% Share of Operating Profit Total Group 10.1% 11.2% 11.4% Share of Operating Profit 19% 17% Eme
Slide 9: SCA Group ROCE* 2014
SCA Group ROCE* 2014 Mature markets and Emerging markets ROCE* Target 13% Mature markets Emerging markets Total Group *Return on capital employed excluding items affecting comparability January 30, 2015 Year-end Report 2014 9
Slide 10: Net Sales
Net Sales Q4 2014 vs. Q4 2013 +5% SEK 27,397m +8% +3% SEK 23,420m +1% +17% Net sales Price/Mix Volume Acquisition Currency Net sales Q4 2013 Q4 2014 Organic sales growth 4% Price/Mix +1% Volume +3% January 30, 2015 Year-end Report 2014 10
Slide 11: Group
Group Organic Sales Growth Q4 2014 vs. Q4 2013 By region Mature markets Strong growth for baby diapers and feminine care in Western Europe +9% Higher sales for incontinence products in Western Europe Higher sales for AfH tissue in Western Europe Slightly lower sales for AfH tissue in +4% North Ameri
Slide 12: Group
Group Q4 2014 vs. Q4 2013 Operating Profit* SEK 3,250m Operating profit increased 3%* (+20%**) SEK 3,163m +3% Organic operating profit growth 11%*** Better price/mix Higher volumes Q4 2013 Q4 2014 Cost savings Operating Margin* Consolidation of Vinda 13.5% Higher raw material costs 11.9% Lower gains
Slide 13: Personal Care
Personal Care Q4 2014 vs Q4 2013 Sales growth 7% Net Sales Operating Profit* Operating Margin* Organic sales growth 3% SEK 930m SEK 7,578m SEK 8,106m SEK 859m +8% Price/mix +1% +7% 11.5% 11.3% +20 bp Volume +2% Strong growth in emerging markets Strong growth for baby diapers and feminine care Q4 201
Slide 14: Tissue
Tissue Q4 2014 vs Q4 2013 Sales growth 24% Net Sales Operating Profit* Operating Margin* SEK 15,366m SEK 1,867m Organic sales growth 3% +24% SEK 1,601m +17% 13.0% 12.2% Price/mix 0% SEK 12,357m -80 bp Volume +3% Good growth in emerging markets Operating profit increased 17%* Higher volumes Q4 2013 Q
Slide 15: Forest Products
Forest Products Q4 2014 vs Q4 2013 Sales growth 11% Net Sales Operating Profit* Operating Margin* SEK 916m 25.1% Price/mix +4% SEK 4,037m Volume +6% SEK 3,646m +11% SEK 683m 16.9% Currency +1% -25% -820bp Growth in kraftliner and pulp Operating profit decreased 25%* (increased 48%**) Q4 2013 Q4 2014
Slide 16: Dividend
Dividend The Board of Directors proposes an increase in the dividend by 10.5% to SEK 5.25 per share (4.75) January 30, 2015 Year-end Report 2014 16
Slide 17: Full year 2014
Full year 2014 Summary Highest profit before tax ever Good organic sales growth Strong growth in emerging markets Strong cash flow Higher sales and profits in all business areas Global Environment Low growth in mature markets and good growth in emerging markets for hygiene products FX headwinds due
Slide 18: Q&A
Q&A January 30, 2015 Year-end Report 2014 18
Slide 19: Slide 19