16 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Oct 29, 2014
Slide 1: SCA Interim Report Q3 2014
SCA Interim Report aN Q3 2014 och
Slide 2: Current Environment
Q3 2014 Current Environment Weak development of the global economy Geo-political conflicts Low growth in mature markets and good growth in emerging markets for hygiene products Competitive market environment Higher raw material prices and FX headwinds due to stronger USD Increased European demand fo
Slide 3: Summary
Summary Q3 2014 vs. Q3 2013 Strong increase of operating profit and cash flow Good organic sales growth Continued work with cost efficiency Several launches of new innovations and products Libresse, Lotus, Saba, Tempo and Tork SCA’s transfer of Chinese hygiene business to Vinda closed Received top s
Slide 4: Group
Group Q3 2014 vs. Q3 2013 Sales Organic Sales Growth Operating Profit* SEK SEK 26,594m +4% 3,035m +16% +16% Operating Margin* EPS Operating Cash Flow SEK 11.4% SEK 2,68 4,015m +/-0 bp +30% +59% * Excluding items affecting comparability October 29, 2014 SCA Interim Report Q3 2014 4
Slide 5: Efficiency Programs
Efficiency Programs Hygiene business cost and efficiency program Blueprint implementation in all sites Scale effects for sourcing realized Warehouse efficiency programs and footprint projects Georgia-Pacific synergies Blueprint implementation on-going Footprint optimization on-going and three sites
Slide 6: 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 YTD 2014 2012 2013 YTD 2014 2012 2013 YTD 2014 Personal Care and T
Slide 7: Innovations and Product Launches
Innovations and Product Launches Q3 2014 Libresse™ Maxi Night Libresse Roll.Press.Go™ Saba Invisible, Saba Ultra Secure Patented and innovative disposal Extra security & comfort for night time Next generation multi-color print on solution for sanitary towels towels with a three color print des
Slide 8: Innovations and Product Launches
Innovations and Product Launches Q3 2014 Tork Xpressnap® Image line napkin Tempo ProtectTM Lotus Handkerchief dispensers with Tork Xpressnap® Extra Soft Leaf Design napkins New Tempo Protect™ antibacterial With lotus extracts For the image-conscious hankies and wet wipes establishments where d
Slide 9: Net Sales
Net Sales Q3 2014 vs. Q3 2013 +5% SEK 26,594m +7% +3% SEK 23,002m +1% +16% Net sales Price/Mix Volume Acquisition Currency Net sales Q3 2013 Q3 2014 Organic sales growth 4% Price/Mix +1% Volume +3% October 29, 2014 SCA Interim Report Q3 2014 9
Slide 10: Group: Organic Sales Growth by Region
Group Organic Sales Growth Q3 2014 vs. Q3 2013 By region Mature markets Low growth in mature markets +9% - Tissue in Western Europe -1% - Personal Care in Western Europe +3% - AfH tissue in North America +2% Emerging markets +4% Strong growth in Eastern Europe, Russia and Latin America +2% -
Slide 11: Group: Operating Profit, Margin and EPS
Group Q3 2014 vs. Q3 2013 Operating Profit* SEK 3,035m Operating profit increased 16%* SEK 2,625m +16% Organic operating profit growth 6%** Better price/mix Higher volumes Q3 2013 Q3 2014 Cost savings Operating Margin* Consolidation of Vinda Higher raw material costs 11.4% 11.4% +/-0 bp Operating ma
Slide 12: Personal Care
Personal Care Q3 2014 vs Q3 2013 Sales growth 8% Net Sales Operating Profit* Operating Margin* SEK 7,968m Organic sales growth 4% Price/mix +0% SEK 7,382m SEK 880m SEK 897m 11.9% +8% +2% 11.3% -60 bp Volume +4% Strong growth in emerging markets Growth in all product segments Q3 2013 Q3 2
Slide 13: Tissue
Tissue Q3 2014 vs Q3 2013 Sales growth 22% Net Sales Operating Profit* SEK 1,740m Operating Margin* Organic sales growth 1% Price/mix 0% SEK 14,473m SEK 1,524m +14% +22% 12.8% SEK 11,910m 12.0% Volume +1% -80 bp Strong growth in emerging markets Operating profit increased 14%* Higher v
Slide 14: Forest Products
Forest Products Q3 2014 vs Q3 2013 Sales growth 10% Net Sales Operating Profit* Operating Margin* Price/mix +4% SEK 4,237m SEK 613m +46% 14.5% Volume +5% SEK 3,843m +10% SEK 420m 10.9% +360 bp Currency +1% Growth in all product segments Operating profit increased 46%* Higher prices (in
Slide 15: Summary
Summary Q3 2014 vs. Q3 2013 Strong increase of operating profit and cash flow Good organic sales growth Several launches of new innovations and products Libresse, Lotus, Saba, Tempo and Tork SCA’s transfer of Chinese hygiene business to Vinda closed Global Environment Low growth in mature markets an
Slide 16: Q&A
Q&A October 29, 2014 SCA Interim Report Q3 2014 16