22 slides from Svenska Cellulosa Ab Sca Class A's earnings presentation, Jul 19, 2016
Slide 1: Interim Report Q2 2016
Interim Report ® Q2 2016
Slide 2: Magnus Groth, President and CEO
Magnus Groth President and CEO July 19, 2016 Interim Report Q2 2016 2
Slide 3: Summary Q2 2016
Summary Q2 2016 Strong organic growth in operating profit* Good organic sales growth in the hygiene business Good organic sales growth in emerging markets Strong cash flow Good contribution from efficiency gains Provision for ongoing anti-trust and tax cases Divestment of business in South East Asia
Slide 4: Group
Group Q2 2016 vs. Q2 2015 Net Sales Organic Sales Growth Adjusted Operating Profit* SEK SEK 29,086m +2% 3,405m 0% +9%** Adjusted Operating Margin* EPS Operating Cash Flow SEK 11.7% SEK 0.11*** 3,542m +70bp -96% +21% * Excluding items affecting comparability ** Excluding items affecting comparability
Slide 5: SCA Group Adjusted ROCE
SCA Group Adjusted ROCE* Adjusted ROCE* Target 13% 12.1% 11.6% Q2 2015 Q2 2016 *Adjusted return on capital employed excluding items affecting comparability July 19, 2016 Interim Report Q2 2016 5
Slide 6: Innovations Q2 2016
Innovations Q2 2016 TENA Overnight Tork Washstation Underwear Dispenser Expands TENA assortment with new Precisely engineered and Hazard Analysis range of overnight underwear. and Critical Control Point International certified to help mitigate risks. Stays in place. Helps preventing leaks at n
Slide 7: Innovations Q2 2016
Innovations Q2 2016 New Okay Lotus Confort, Compressed Zewa Plus Compacted kitchen rolls to just Upgrade of Family half the size. Comfort Bathroom Tissue assortment. Easier to carry & store. 30% less packaging. Less CO2 Improved balance of emissions. softness and strength. Plenty, Zewa Zewa
Slide 8: Fredrik Rystedt, CFO
Fredrik Rystedt CFO July 19, 2016 Interim Report Q2 2016 8
Slide 9: Net Sales
Net Sales Q2 2016 vs. Q2 2015 +1% -5% +1% SEK 29,219m +3% SEK 29,086m 0% Net Sales Price/Mix Volume Currency Acquisition Net Sales Q2 2015 Q2 2016 Organic sales growth +2% Price/Mix +1% Volume +1% July 19, 2016 Interim Report Q2 2016 9
Slide 10: Organic Sales Growth
Organic Sales Growth Group 8% 6% 4% 2% 0% 2012 2013 2014 2015 Q1 2016 Q2 2016 Personal Care Tissue Forest Products 8% 8% 12% 8% 6% 6% 4% 4% 4% 0% -4% 2% 2% -8% 0% 0% -12% 2012 2013 2014 2015 Q1 Q2 2012 2013 2014 2015 Q1 Q2 2012 2013 2014 2015 Q1 Q2 2016 2016 2016 2016 2016 2016 July 19, 2016 Interim
Slide 11: Adjusted Operating Profit – Group
Adjusted Operating Profit* – Group Q2 2016 vs. Q2 2015 SEK +92m SEK -160m SEK +70m SEK +67m SEK -368m SEK +285m SEK +202m SEK 3,405m SEK 3,217m +6% Adjusted Price/Mix Volume Raw Energy Currency Acquisition Other Adjusted Operating Material Operating Profit Profit Q2 2015 Q2 2016 * Excluding items af
Slide 12: Cash Flow
Cash Flow Q2 2016 vs. Q2 2015 Q2 2016 Q2 2015 SEKm SEKm Operating cash surplus 4,797 4,626 Change in working capital 4 -550 Restructuring costs, etc -202 -233 Capital expenditures (including strategic) -1,981 -1,259 Operating cash flow including strategic capital expenditures 2,618 2,584 July 19, 20
Slide 13: Items Affecting Comparability
Items Affecting Comparability Q2 2016 Q2 2016 SEKm Provision for ongoing anti-trust cases -964 Capital gain on divestment of ownership stake in IL Recycling 218 Restructuring costs for closure of tissue plant in Sant Joan de Mediona, Spain -224 Restructuring costs for closure of tissue plant in Sain
Slide 14: Magnus Groth, President and CEO
Magnus Groth President and CEO July 19, 2016 Interim Report Q2 2016 14
Slide 15: Personal Care
Personal Care Q2 2016 vs Q2 2015 Adjusted Adjusted Net sales -3% Net Sales Operating Profit* Operating Margin* SEK 1,070m Organic sales growth +5% SEK 8,676m SEK 8,427m SEK 977m +10% 12.7% Adjusted operating profit +10%* -3% 11.3% +140bp Better price/mix Higher volumes Cost savings Inv
Slide 16: Personal Care
Personal Care Q2 2016 vs Q2 2015 Organic Sales Growth Organic Sales Growth Organic sales growth +5% by Region by Product Segment Price/mix +1% Volume +4% Good growth in mature and emerging markets Strong growth for feminine care +9% +6% +5% +4% +5% +4% +4% Mature markets Western Europe
Slide 17: Tissue
Tissue Q2 2016 vs Q2 2015 Adjusted Adjusted Net sales +3% Net Sales Operating Profit* Operating Margin* SEK 1,977m Organic sales growth +3% SEK 16,091m SEK 16,514m Adjusted operating profit +8%* SEK 1,826m +3% +8% 12.0% 11.3% +70bp Better price/mix Higher volumes Cost savings Lower ene
Slide 18: Tissue
Tissue Q2 2016 vs Q2 2015 Organic sales growth +3% Organic Sales Growth by Region Organic Sales Growth by Product Segment Price/mix +1% Volume +2% +10% Strong growth in emerging markets +3% +3% +4% Mature markets +3% Western Europe 0% - Lower sales for consumer tissue Total Mature Emergi
Slide 19: Forest Products
Forest Products Q2 2016 vs Q2 2015 Adjusted Adjusted Net sales -8% Net Sales Operating Profit* Operating Margin* Organic sales growth -7% SEK 622m SEK 4,598m SEK 4,219m SEK 522m Price/mix -3% -8% -16% Volume -4% 13.5% 12.4% Adjusted operating profit -16%* -110bp Lower prices (including e
Slide 20: Summary Q2 2016
Summary Q2 2016 Strong organic growth in operating profit* Good organic sales growth in the hygiene business Good organic sales growth in emerging markets Strong cash flow Good contribution from efficiency gains Provision for ongoing anti-trust and tax cases Divestment of business in South East Asia
Slide 21: Q&A
Q&A July 19, 2016 Interim Report Q2 2016 21
Slide 22: Slide 22