26 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Oct 29, 2015
Slide 1: Interim Report Q3 2015
Interim Report Q3 2015
Slide 2: Magnus Groth, President and CEO
Magnus Groth President and CEO October 29, 2015 Interim Report Q3 2015 2
Slide 3: Summary Q3 2015
Summary Q3 2015 Good organic growth in sales and operating profit Strong growth in emerging markets Good cash flow Continued strong contribution from efficiency gains Eight innovations and product launches Drypers, Libero, Tempo, TENA and Tork October 29, 2015 Interim Report Q3 2015 3
Slide 4: Group
Group Q3 2015 vs. Q3 2014 Sales Organic Sales Growth Operating Profit* SEK SEK 29,099m +5% 3,471m +9% +10%** Operating Margin* EPS Operating Cash Flow SEK SEK 11.9% 0.71*** 4,305m +50bp -74% +7% * Excluding items affecting comparability ** Excluding items affecting comparability and currency transla
Slide 5: Important Events
Important Events Dividing the Group into two divisions: a Hygiene division and a Forest Products division Enhancing the hygiene organization Acquiring Wausau Paper Corp., a North American Away-from-Home tissue company Divesting business in South East Asia, Taiwan and South Korea for integration with
Slide 6: Strategic Priorities
Strategic Priorities PROFITABLE GROWTH INNOVATION EFFICIENCY INCREASING EFFICIENCY IN THE ENTIRE VALUE CHAIN October 29, 2015 Interim Report Q3 2015 6
Slide 7: Acquisition of Wausau Paper Corp.
Acquisition of Wausau Paper Corp. Acquisition of Wausau Paper, one of the largest Away-from-Home tissue companies in North America Wausau Paper had sales in 2014 of USD 352m (SEK 2.4 billion) Total consideration of USD 513m (SEK 4.2 billion) in cash Expected annual synergies of approximately USD 40m
Slide 8: Divesting business in South East Asia, Taiwan and South Korea for integration with Vinda
Divesting business in South East Asia, Taiwan and South Korea for integration with Vinda Exclusive license for Vinda to market and sell SCA brands in South East Asia, Taiwan and South Korea TENA, Tork, Tempo, Libero and Libresse Vinda will acquire the SCA brands Drypers, Sealer, Dr P, Prokids, EQ Dr
Slide 9: Intended closure of paper machine at Ortviken paper mill and an impairment loss
Intended closure of paper machine at Ortviken paper mill and an impairment loss for the mill Intended closure of paper machine at Ortviken publication paper mill Impairment loss for the Ortviken publication paper mill Efficiency improvement measures at the Obbola and Munksund kraftliner mills Total
Slide 10: Fredrik Rystedt, CFO
Fredrik Rystedt CFO October 29, 2015 Interim Report Q3 2015 10
Slide 11: Net Sales
Net Sales Q3 2015 vs. Q3 2014 4% SEK 29,099m 2% 3% SEK 26,594m +9% Net sales Price/Mix Volume Currency Net sales Q3 2014 Q3 2015 Organic sales growth 5% Price/Mix 3% Volume 2% October 29, 2015 Interim Report Q3 2015 11
Slide 12: Organic Sales Growth
Organic Sales Growth Group 8% 6% 4% 2% 0% 2012 2013 2014 9M 2015 Personal Care Tissue 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% 2012 2013 2014 9M 2015 2012 2013 2014 9M 2015 October 29, 2015 Interim Report Q3 2015 12
Slide 13: Operating Profit* – Group
Operating Profit* – Group Q3 2015 vs. Q3 2014 SEK +353m SEK -758m SEK +688m SEK +121m SEK -41m SEK 3,471m SEK +73m SEK 3,035m 14% Operating Price/Mix Volume Raw Material Energy Currency Other Operating Profit Profit Q3 2014 Q3 2015 * Excluding items affecting comparability October 29, 2015 Interim R
Slide 14: Cash Flow
Cash Flow Q3 2015 vs. Q3 3014 Q3 2015 Q3 2014 SEKm SEKm Operating cash surplus 4,770 4,195 Change in working capital 714 813 Restructuring costs, etc -220 -148 Capital expenditures (including strategic) -1,731 -1,195 Operating cash flow including strategic capital expenditures 3,533 3,665 October 29
Slide 15: Items affecting comparability
Items affecting comparability Q3 2015 Q3 2015 SEKm • Impairment of assets, mainly Ortviken publication paper mill 1,410 • Impairment of brands, Mexican baby diapers and Everbeauty acquisition 438 • Restructuring costs related to Georgia-Pacific acquisition 430 • Costs for divestment of Bromma Busine
Slide 16: Magnus Groth, President and CEO
Magnus Groth President and CEO October 29, 2015 Interim Report Q3 2015 16
Slide 17: Personal Care
Personal Care Q3 2015 vs Q3 2014 Net Sales Operating Profit* Operating Margin* Sales growth 9% SEK 8,668m SEK 1,058m +18% Organic sales growth 8% SEK 7,968m Operating profit increased 18%* SEK 897m +9% 12.2% 11.3% +90bp Better price/mix Higher volumes Cost savings Q3 2014 Q3 2015 Q3 2014
Slide 18: Personal Care
Personal Care Q3 2015 vs Q3 2014 Organic Sales Growth by Region Organic Sales Growth by Product Segment Organic sales growth 8% +21% Price/mix +4% +14% Volume +4% Strong growth in emerging markets +8% +12% Strong growth for feminine care and baby +8% +5% diapers +3% Mature markets Total
Slide 19: Personal Care: Innovations and Product Launches Q3 2015
Personal Care Innovations and Product Launches Q3 2015 TENA Men Protective Shield Libero Touch™ Drypers Touch™ Extra thin, black shield to protect men Premium assortment of Libero diapers. Drypers softest diapers ever with against drips and dribbles Full range of both open and pant diapers Dry
Slide 20: Tissue
Tissue Q3 2015 vs Q3 2014 Sales growth 13% Net Sales Operating Profit* Operating Margin* SEK 16,292m SEK 1,740m SEK 1,892m Organic sales growth 6% Operating profit increased 9%* SEK 14,473m +9% +13% 12.0% 11.6% -40 bp Better price/mix Higher volumes Cost savings Q3 2014 Q3 2015 Q3 2014 Q
Slide 21: Tissue
Tissue Q3 2015 vs Q3 2014 Organic Sales Growth Organic Sales Growth Organic sales growth 6% by Region +14% by Product Segment Price/mix +2% Volume +4% Strong growth in emerging markets +6% +6% +7% Mature markets 2% +3% Western Europe - Good growth for consumer Total Mature Markets Emergi
Slide 22: Tissue: Innovations and Product Launches Q3 2015
Tissue Innovations and Product Launches Q3 2015 Tork Image Design Line® Tork Xpress® Extra Soft and Tork Luxury Soft Tempo® Tempo® Light Multifold Hand Towel Foam Soap New dispenser line for The most exclusive Tork Upgrade of the core range of Tempo® Light cube boxes premium washrooms Xpress
Slide 23: Forest Products
Forest Products Q3 2015 vs Q3 2014 Sales growth 0% Net Sales Operating Profit* Operating Margin* SEK 693m SEK 4,237m SEK 4,232m SEK 613m +13% Price/mix +1% 0% 16.4% Volume -2% 14.5% +190 bp Currency +1% Strong growth for kraftliner and pulp Q3 2014 Q3 2015 Q3 2014 Q3 2015 Q3 2014 Q3 2015
Slide 24: Q3 2015 Summary
Q3 2015 Summary Good organic growth in sales and operating profit Several strategic initiatives October 29, 2015 Interim Report Q3 2015 24
Slide 25: Q&A
Q&A October 29, 2015 Interim Report Q3 2015 25
Slide 26: Slide 26