Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A

Svenska Cellulosa AB SCA Class A — SCA — UBS European Conference 2012

20 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Nov 14, 2012

  1. Slide 1: UBS conference

    UBS conference Lennart Persson, CFO

  2. Slide 2: SCA Group

    SCA Group  Net sales of SEK 91bn*  37,000 employees  Sales in more than 100 countries  Leading global hygiene company  #1 or #2 positions in close to 80 countries  Strong brands; TEN and Tork are leading global billion-euro brands for Incontinence care and AFH tissue  Europe’s largest private

  3. Slide 3: Transforming SCA

    Transforming SCA  Divestment of the Packaging business, excluding the two kraftliner mills  Acquisition of Georgia-Pacific’s European tissue operations  Acquisitions in emerging markets  Everbeauty in Asia  Pro Descart in Brazil  San Saglik and Komili(50%) in Turkey  Joint venture in Australi

  4. Slide 4: SCA Group: Sales and EBIT by Business Area

    SCA Group 9 months 2012 sales and EBIT by Business Area Sales by Business Area EBIT by Business Area Forest Products Personal Care Forest Products Personal Care 22% 16% 30% 35% 48% 49% Tissue Tissue 4 November 2012

  5. Slide 5: SCA Group: Sales by Product Category

    SCA Group Sales by Product Category Personal Care Tissue Feminine care 15% Incontinence products AFH tissue 38% 54% 31% 62% Baby diapers 73% branded Consumer tissue 52% branded 5 November 2012

  6. Slide 6: Hygiene business is growing

    SCA Group Hygiene business is growing % of net sales ~20%* 54% 40% 46% 60% ~80%* Forest Products and Hygiene products Packaging (Personal Care and Tissue) 6 November 2012

  7. Slide 7: 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: 3 Consumer tissue: 2 Incontinence products:

  8. Slide 8: SCA Group's Priorities

    SCA Group’s Priorities EFFICIENCY INNOVATION GROWTH SUSTAINABILITY 8 November 2012

  9. Slide 9: Efficiency

    Efficiency  Restructuring program in baby diapers in Europe completed  2011 Efficiency program  Annual cost saving: EUR 80m  Higher machine efficiency and reduced CAPEX  Cost and productivity program  Annual cost saving: EUR 300m  Georgia-Pacific synergies  Annual cost saving: EUR 125m  Ene

  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 Strengthens our no.1 position  Perfect strategic fit  Substantial synergies  Strengthens our geographic presence in Europe  Strong innovation portfolio  Strengthens our branded portfolio 11 November 2012

  12. Slide 12: Georgia-Pacific Acquisition: Synergies

    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

  13. Slide 13: Innovation drives Profitable growth

    Innovation drives Profitable growth Strengthens market positions and profitability  Meet changing demands and requirements  Create long-term, profitable differentiation  Strengthen market positions  Build stronger brands  Drive growth 13 November 2012

  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 November 2012

  15. Slide 15: Global Hygiene Products Market

    Global Hygiene Products Market Increased penetration and aging and growing population Personal Care Tissue 2010 2017 15 November 2012

  16. Slide 16: Hygiene Products: High potential in low penetration markets

    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 16 November 2012

  17. Slide 17: Growth: High growth in Emerging markets

    Growth High growth in Emerging markets Q3 2012 Emerging markets sales growth: Personal Care: +26%* Tissue: +20%* % of Personal Care sales** % of Tissue sales** Emerging markets 16% Emerging markets 37% Mature markets Mature markets * Adjusted for exchange rate movements ** Q3 2012 17 November 2012

  18. Slide 18: SCA's Market Priority

    SCA’s Market Priority Mature markets Established Not-present  Improve profitability emerging markets emerging markets  Increased cash flow  Profitable growth  Selected entry generation  Strengthen market  Strengthen market positions positions  Category expansion  Category expansion 18 Novemb

  19. Slide 19: 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 **

  20. Slide 20: IR Contacts

    IR Contacts: Johan Karlsson, VP Investor Relations Louise Tjeder, Director Investor Relations Tel: +46 8 788 51 30 Tel: +46 8 788 51 62 Email: ir@sca.com Website: www.sca.com

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