Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A

Svenska Cellulosa AB SCA Class A — SCA — CAGE conference, London 2013

18 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Mar 18, 2013

  1. Slide 1: CAGE conference

    CAGE conference Lennart Persson, CFO

  2. Slide 2: SCA Group

    SCA Group Leading global hygiene and forest products company  Net sales of SEK 85.4bn  36,000 employees  Sales in about 100 countries  #1 or #2 positions in close to 80 countries  Strong brands; TENA and Tork are leading global billion-euro brands for Incontinence products and AFH tissue  Euro

  3. 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 

  4. 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:

  5. 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

  6. Slide 6: SCA Group: 2012 sales by Product Category

    SCA Group 2012 sales by Product Category Personal Care Tissue Feminine care 14% Incontinence products AFH tissue 38% 56% 30% 62% Baby diapers 73% branded Consumer tissue Approx. 50% branded 6 March 2013

  7. 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

  8. Slide 8: SCA Group's Priorities

    SCA Group’s Priorities EFFICIENCY INNOVATION GROWTH SUSTAINABILITY 8 March 2013

  9. 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

  10. 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%  Logis

  11. 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 Marketin

  12. Slide 12: Innovation drives Profitable growth

    Innovation drives Profitable growth Strengthens market positions and profitability 12 March 2013

  13. 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 d

  14. 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

  15. 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

  16. 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

  17. 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 **

  18. Slide 18: Slide 18

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