Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — Cheuvreux conference (March 2009)
22 slides from Svenska Cellulosa AB SCA Class A's conference presentation, Mar 25, 2009
Slide 1: Cheuvreux conference
Cheuvreux conference Jan Johansson, President and CEO 1 25 March 2009
Slide 2: SCA – a global hygiene-products and paper company
SCA – a global hygiene-products and paper company Net sales of SEK 110bn 52,000 employees and sales in 90 countries TEN and Tork leading global brands for incontinence care and Away From Home tissue Ranked 2nd greenest company in the world (2007), one of the world’s 100 most sustainable comp
Slide 3: Sales split
Sales split Forest Products Personal Care 15% 21% 30% 34% Packaging Tissue Sales 2008 SEK: 110bn 3 25 March 2009
Slide 4: An energy-consuming reality
An energy-consuming reality We strive for the lightest footprint possible Objective for reduced carbon- dioxide emissions (20% by 2020) Objective for more efficient use of water Replace oil and coal with biofuels and natural gas Minimize waste High degree of recycling Mainly renewable ma
Slide 5: Forests as carbon absorbers
Forests as carbon absorbers The global challenge Our way Deforestation of 17 billion SCA is Europe’s largest private forest owner acres (7 billion hectares) annually For every tree we harvest we plant three new ones Swedish forests have a net growth of about 1% annually Our forests absorb
Slide 6: New, alternative ways of thinking
New, alternative ways of thinking A wind power project will generate 2,400 GWh electricity (equals the consumption of 240,000 households in California) Waste becomes energy – Witzenhausen Biofuels account for 40% of SCA’s fuel consumption E-SAVE – 400 projects to reduce energy consumption 6
Slide 7: Different focus in the business groups
Different focus in the business groups Packaging & Hygiene Hygiene Products Products Forest Products • Personal Care • Capitalize Tissue on growth Cash flow generation/ opportunities Asset base efficiency Higher value in Focus on value mature segments added offerings Increased shareholder value 7 25
Slide 8: Hygiene sales increases in SCA
Hygiene sales increases in SCA % of sales 58% 45% Packaging and Forest Products 42% 55% Hygiene Products 1998 2008 8 25 March 2009
Slide 9: Strong global and regional positions
Strong global and regional positions Nordic region Baby diapers: 1 Europe North America Tissue: 1 AFH tissue: 3 Corrugated board: 2 Baby diapers: 2 Incontinence care: 1 Privately owned forests: 1 Mexico Global Hygiene products: 2 Incontinence care: 1 AFH tissue: 3 Colombia Incontinence care: 1 Austr
Slide 10: Growth: High growth in emerging markets
Growth High growth in Emerging markets 2008 Emerging markets hygiene sales growth: Personal Care: +15% Tissue: +18% % of Hygiene sales in 1998 % of Hygiene sales in 2008 5% Emerging markets Emerging markets 25% Mature markets Mature markets 10 25 March 2009
Slide 11: Growth: High potential in markets with low penetration
Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year Potential to grow the Incontinence usage on mature markets with >30% North America Western Europe Eastern Europe Latin America Asia 11 25 March 2009
Slide 12: Hygiene Categories
Hygiene Categories Strategic focus Inco Fempro Baby AFH CT Strengthen • Leading positions in European home market (market share and value) • Profitability Consumer Tissue (EU, Mexico, Australia) • Innovations and speed to market Grow • Prioritized growth markets • Eastern Europe/Russia • Latin Ameri
Slide 13: Packaging
Packaging Full-service packaging provider 2008 2007 % Sales, SEKm: 33,441 33,728 3* Europe’s second largest supplier of EBIT, SEKm 1,493 2,651 -44 corrugated packaging EBIT-margin, %: 4.5 7.9 Strategy to increase value content 14% Main customers are companies within the fast moving consumer
Slide 14: Packaging: Short term action focus
Packaging Short term action focus Optimizing current asset base Increased efficiency and cash flow Cost reduction Evaluate need for capacity closures 14 25 March 2009
Slide 15: Forest Products
Forest Products Business overview Supplier of publication papers 2008 2007 % Sales, SEKm: 16,710 18,744 -5* Europe's largest private owner of EBIT, SEKm: 2,207 2,870 -23 forestland, 2.6 million hectares EBIT-margin, %: 13.2 15.3 Supplier of pulp 11% 6% Supplier of solid-wood products 14% 36%
Slide 16: Forest Products: Short term action focus
Forest Products Short term action focus Continued focus on productivity Strong customer offers 84 improvement projects strengthening earnings and cash flow 16 25 March 2009
Slide 17: Summary FY 2008
FY 2008 Summary Group Sales growth of 4% Hygiene sales growth in emerging markets of 16% EBIT decline of 13%* Improved price/mix and higher volumes did not compensate for increased raw material and energy cost (SEK 3.5bn) Business areas Strong sales and profit growth in Tissue Strong sal
Slide 18: SCA Group: Short and medium term direction
SCA Group Short and medium term direction COST AND CAPITAL CASH FLOW EFFICIENCY INNOVATIONS Innovation as prioritized business driver Higher cash flow Strengthening European positions More concentrated geographical growth ROCE of 13% Consolidation needed 18 25 March 2009
Slide 19: Financing structure
Financing structure As of 31 December 2008 Commercial papers SEK 10.2bn Unutilized long-term committed credit facilities of SEK 20.7bn Cash and cash equivalents of SEK 5.7bn 19 25 March 2009
Slide 20: Dividend proposal
Dividend proposal Proposed dividend for 2008 of SEK 3.50 (4.40) Big uncertainty in the general economic environment and the financial systems combined with lower earnings 20 25 March 2009
Slide 21: Outlook 2009
Outlook 2009 Outlook 2009 Hygiene businesses Continued positive development Positive Still good demand despite downturn in economy Good growth in emerging markets Packaging Earnings will decrease if the negative Negative demand continues Forest Products Stable development during 2009
Slide 22: 25 March 2009
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