Deutsche Bank Global Consumer Conference 21 June 2012
 

Deutsche Bank Global Consumer Conference 21 June 2012

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    Deutsche Bank Global Consumer Conference 21 June 2012 Deutsche Bank Global Consumer Conference 21 June 2012 Presentation Transcript

    • Deutsche Bank conferenceLennart Persson, CFO
    • 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 company* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested2 June 2012
    • SCA GroupMajor changes Acquisition of Georgia-Pacific’s European tissue operations Divestment of the Packaging business, excluding the two kraftliner mills Established joint venture in Australia/New Zealand Acquisition of Everbeauty an Asian hygiene products company Increased shareholding in Vinda Acquisition of PISA in Chile New hygiene organization Acquisition of PLF a French solid-wood products company3 June 2012
    • Acquisition of Georgia-Pacific’sEuropean tissue operations Creates a leading European tissue company Strengthens SCA’s product offering and geographic presence Sales: EUR 1.25bn Purchase price: EUR 1.32bn Annual synergies: EUR 125m With full implementation of synergies, earnings per share are expected to increase by approximately SEK 1.704 June 2012
    • Georgia-Pacific acquisitionSubstantial synergies Increased supply chain efficiency  Optimization of logistics  More efficient sourcing Improved SG&A and A&P efficiency  Annual synergies: EUR 125m  Improves Tissue EBIT margins by 2-2.5 percentage points  Full effect in 3 years after closing  Related costs: EUR 130m5 June 2012
    • Georgia-Pacific acquisitionEnhances SCA’s presence in Consumer and AFH tissue European Consumer tissue market 25% SCA SCA and GP 35% European AFH tissue market SCA and GP SCA 20% 30%6 June 2012
    • Acquisition of EverbeautyLeading Asian personal care company Sales: SEK 1.6bn* Sales split: baby diapers 60% and incontinence products 40% Purchase price: SEK 1.9bn Sales in China, Taiwan and Southeast Asia Strong brands, market positions and distribution • Incontinence care products • No. 2 in China and No. 1 in Taiwan • Baby diapers • No. 5 in China and Taiwan* 2010 sales7 June 2012
    • 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: EUR 1.7bn on a debt-free basis  Earnings per share declines by SEK 0.73** Based on earnings for the period for 2011 8 June 2012
    • 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 company9 June 2012
    • SCA GroupHygiene business is growing % of net sales ~20%* 54% 40% 46% 60% ~80%* Forest Products and Hygiene products Packaging (Personal Care and Tissue)* Provided that the Packaging divestment and the acquisition of Georgia-Pacific’s European tissue business are closed according to plan.10 June 2012
    • 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 Solid-wood products: 2 Consumer tissue: 2 Baby diapers: 3Mexico Incontinence products: 1Incontinence products: 1 Private forest owners: 1Consumer tissue: 2AFH tissue: 3 AsiaFeminine care: 1 Incontinence products: 1Baby diapers: 3 GloballyColombia Incontinence products: 1Incontinence products: 1Feminine care: 1 AFH tissue: 2Tissue: 1 11 June 2012
    • Strong global and regional brandsTwo global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America12 June 2012
    • SCA Group’s strategic priorities EFFICIENCY INNOVATION GROWTH13 June 2012
    • 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 capacity14 June 2012
    • InnovationStrengthens market positions and profitability15 June 2012
    • Growth Organic growth of 4%* High growth in emerging markets Acquisition of Georgia-Pacific´s European tissue operations 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 Acquisition of Everbeauty an Asian personal care company Continued expansion of wind power opportunities  Ongoing projects totalling 4 TWh* Q1 2012 compared with Q1 2011, excluding exchange rate movements and divestments 16 June 2012
    • GrowthGrowth potential for hygiene products Global population growth An aging population Increased market penetration Higher disposable income Customers and consumers demand more comfort and sustainability17 June 2012
    • GrowthHigh 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 Asia18 June 2012
    • Growth High growth in Emerging markets Q1 2012 Emerging markets sales growth: Personal Care: +23%* Tissue: +14%* % of Personal Care sales % of Tissue sales Emerging markets 18% Emerging markets 35%Mature markets Mature markets * Adjusted for exchange rate movements 19 June 2012
    • Q&A20 June 2012
    • IR Contacts:Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor RelationsTel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: ir@sca.com Website: www.sca.com