SCAs Annual General Meeting 2012

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CEO and President Jan Johansson's presentation at the SCA Annual General Meeting 2012 in Stockholm, Sweden.

http://www.sca.com/ir

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SCAs Annual General Meeting 2012

  1. 1. AGM 2012Jan Johansson, President and CEO
  2. 2. SCA Group in 2011 Net sales of SEK 106bn 44,000 employees and sales in more than 100 countries World’s third-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s second-largest packaging company Europe’s largest private forest owner Europe’s second-largest sawmill company2 AGM 2012
  3. 3. SCA GroupSales in 2011 Forest Products Sales Personal Care 16% 23% 25% 36% Packaging Tissue3 AGM 2012
  4. 4. Leading market positions Globally and regionally Nordic regionNorth America Incontinence products: 1 EuropeAFH tissue: 3 Baby diapers: 1 Tissue: 1Incontinence products: 3 AFH tissue: 1 Corrugated board: 2 Consumer tissue: 2 Solid-wood products: 2Mexico Baby diapers: 3Incontinence products: 1 Incontinence products: 1Consumer tissue: 2 Private forest owners: 1AFH tissue: 3 AsiaFeminine care: 1 Incontinence products: 1Baby diapers: 3 GloballyColombia Incontinence products: 1Incontinence products: 1Feminine care: 1 AFH tissue: 2Tissue: 1 4 AGM 2012
  5. 5. Results for 2011 SEKm Change, Change, unless otherwise specified 2011 2010 % %** Net sales 105,750 106,965 -1 4*** Operating profit* 9,224 9,608 -4 0 Operating margin* (%) 8.7 9.0 Profit before tax* 7,934 8,492 -7 -3 Earnings per share (SEK) 0.78 7.90 Cash flow from current operations 6,383 7,399 Debt/equity ratio 0.60 0.51* Excluding items affecting comparability** Excluding exchange rate effects*** Excluding divestments 5 AGM 2012
  6. 6. Personal Care SEKm 24,775 25,027 Strong global leadership in incontinence 5%* products for the TENA brand 13% growth in developing countries Sales 2011 2010 Investment in local production of incontinence products in Russia Acquisitions in Brazil and Turkey 2,922 Efficiency programme 2,645 -9% Increased raw material costs Operating profit** 2011 2010 Operating margin** 10.7% 11.7%* Excluding exchange rate effects** Excluding items affecting comparability 6 AGM 2012
  7. 7. Tissue SEKm Increased market shares for Tork brand 39,118 39,870 10% growth in developing countries 4%* Efficiency programme Improved margin Price increases and higher volumes Sales 2011 2010 Cost savings 3,150 3,041 4% Operating profit** 2011 2010 Operating margin** 8.1% 7.6%* Excluding exchange rate effects** Excluding items affecting comparability 7 AGM 2012
  8. 8. Forest Products SEKm New lime kiln at pulp mill in Östrand 17,180 17,123 Upgrade of newsprint machine enables 1%* production of higher paper grades Higher raw material prices Negative exchange rate effects Sales 2011 2010 Forest – net growth of 1% Sales of FSC products increasing 2,455 2,001 -18% Operating profit** 2011 2010 Operating margin** 11.6% 14.3%* Excluding exchange rate effects** Excluding items affecting comparability 8 AGM 2012
  9. 9. PackagingSEKm Market recovery 26,650 26,831 Increased market prices 8%** Higher raw material pricesSales* 2011 2010 1,909 1,577 21%Operating profit*** 2011 2010Operating margin*** 7.2% 5.9%* . Net sales for SCA’s recycling business were reclassified to other income, with retroactive adjustment for 2010** Excluding exchange rate effects and divestments*** Excluding items affecting comparability 9 AGM 2012
  10. 10. Strategic changes Acquisition of Georgia-Pacific’s European tissue operations Divestment of Packaging operations, excluding the two kraftliner mills in Sweden10 AGM 2012
  11. 11. Acquisition of Georgia-Pacific’sEuropean tissue operations Creates a leading European tissue company Strengthens SCA’s product offering and geographic presence Sales: SEK 11.9bn Purchase price: SEK 12bn Annual synergies: SEK 1.1bn With full implementation of synergies, earnings per share are expected to increase by approximately SEK 1.7011 AGM 2012
  12. 12. Divestment of Packaging operations Divestment of Packaging operations to DS Smith Excludes SCA’s two kraftliner mills in Sweden Sales: SEK 24.4bn Purchase price: SEK 15.3bn on a debt-free basis Earnings per share declines by SEK 0.73** Based on earnings for the period for 2011 12 AGM 2012
  13. 13. SCA GroupAfter completion of ongoing transactions Net sales of SEK 92bn 37,000 employees and sales in more than 100 countries World’s second-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s largest private forest owner Europe’s second-largest sawmill company13 AGM 2012
  14. 14. SCA Group’s strategic priorities EFFICIENCY INNOVATION GROWTH14 AGM 2012
  15. 15. Efficiency Restructuring programme in baby diapers in Europe completed Efficiency programme Mainly related to Personal Care and Tissue Annual cost saving: SEK 700m Gradual impact in 2012-2013 Investments in upgrade of existing and new capacity15 AGM 2012
  16. 16. InnovationStrengthens market positions and profitability16 AGM 2012
  17. 17. 17 AGM 2012
  18. 18. Princess Estelleuses Libero diapers and baby-care products18 AGM 2012
  19. 19. Growth Organic growth of 4% in 2011 compared with 2010 High growth in emerging markets Personal Care +13% Tissue +10% Acquisition in Brazil Pro Descart, No. 2 in incontinence care Acquisition in Turkey San Saglik 95%, No. 2 in incontinence care Komili 50%, No. 4 in baby diapers and feminine care Binding offer to acquire Everbeauty – Taiwanese/Chinese incontinence care and baby diaper company Continued expansion of wind power opportunities Ongoing projects totalling 4 TWh19 AGM 2012
  20. 20. Sustainability is business-criticalValue creation for people, nature and business Economy Nature People Sustainability strategy is an integral part of business operations20 AGM 2012
  21. 21. 21 Årsstämma 2012

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