SCA at UBS Consumer Conference 2014

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SCAs presentation at UBS Consumer Conference 2014 was held by CEO Jan Johansson

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SCA at UBS Consumer Conference 2014

  1. 1. UBS Conference in Boston Jan Johansson, President and CEO
  2. 2.  Sales of SEK 99bn  44,000 employees  Sales in about 100 countries  #1 or #2 positions in about 90 countries  Strong brands;  TENA and Tork are leading global brands for incontinence products and AfH tissue  China’s third largest tissue company  Europe’s largest private forest owner  Europe’s second-largest sawmill company  Several of the world’s most prestigious sustainability awards SCA Group Leading global hygiene and forest products company UBS Conference in Boston 2March 2014
  3. 3.  Divestment of the Packaging business, excluding the two kraftliner mills  Acquisition of Georgia-Pacific’s European tissue operations  Acquired majority ownership in Vinda  Strengthened positions in emerging markets  Acquisition of Everbeauty in Asia  Acquisition of PISA in Chile  Investment in India  Joint venture in Australia/New Zealand  Divestment of Aylesford Newsprint and Laakirchen publication paper mills  Efficiency programs  New hygiene organization Transformation of SCA UBS Conference in Boston 3March 2014
  4. 4.  2012 Sales: approximately SEK 5bn  Extensive distribution network across China  More than 300,000 points of sales  Strong brand  No. 3 in China Acquired Majority Ownership in Vinda Leading tissue company in China March 2014 UBS Conference in Boston 4
  5. 5. Leading Market Positions Globally and Regionally North America Incontinence products: 3 AfH tissue: 3 Mexico Incontinence products: 1 Feminine care: 1 Tissue: 2 Baby diapers: 3 Colombia Incontinence products: 1 Feminine care: 1 Tissue: 1 Baby diapers: 2 Nordic region Incontinence products: 1 Baby diapers: 1 AfH tissue: 1 Consumer tissue: 2 Feminine care: 2 Europe Tissue: 1 Incontinence products: 1 Baby diapers: 2 Feminine care: 3 Private forest owners: 1 Solid-wood products: 2 Asia* Incontinence products: 1 Globally Incontinence products: 1 AfH tissue: 1 Consumer tissue: 2 5March 2014 China Incontinence products: 2 Tissue: 3 Baby diapers: 5 * Excluding Japan UBS Conference in Boston
  6. 6. UBS Conference in Boston SCA Group 2013 Sales and EBIT by Business Area 32% 51% 17% EBIT 16% Tissue Personal CareForest Products Sales 6March 2014 EBIT 32% EBIT 52%
  7. 7. 52%31% 17% 62% 38% March 2014 UBS Conference in Boston 7 Feminine care Baby diapers 75% branded Incontinence  products Personal Care AfH tissue Consumer tissue 54% branded Tissue SCA Group 2013 Sales by Product Segment
  8. 8. SCA Group’s Priorities UBS Conference in Boston EFFICIENCY INNOVATION GROWTH March 2014 8
  9. 9. Financial Targets * Annual organic sales growth ** Return on capital employed Sales growth* ROCE** Personal Care 5-7% 30% Tissue 3-4% 15% Forest Products in line with market in top quartile Group Business areas UBS Conference in Boston 9March 2014 Debt/Equity 0.70 Debt payment capacity above 35% Dividend policy 1/3 of cash flow from current operations
  10. 10. 10 Efficiency Programs Hygiene business cost and productivity program  Annualized cost savings in Q4 2013: approx. EUR 175m  Total annual cost savings of EUR 300m, full effect in 2015 Georgia-Pacific synergies  Annualized cost savings in Q4 2013: approx. EUR 55m  Total annual cost savings of EUR 125m, full effect in 2016 Forest Products efficiency program  Annualized earnings improvement in Q4 2013: SEK 980m  Total annual earnings improvement of SEK 1,300m, full effect in 2015 March 2014 UBS Conference in Boston
  11. 11. Innovation drives Profitable Growth Strengthens market positions and profitability March 2014 UBS Conference in Boston 11
  12. 12. Growth  Sales growth of 10%* in 2013  Good growth in emerging markets  Personal Care sales growth of 10%** in 2013  Tissue sales growth of 13%** in 2013  Acquired majority ownership in Vinda  Investment in India  Launch of Libero and Tempo * 2013 compared with 2012, excluding exchange rate effects and divestments ** 2013 compared with 2012, excluding exchange rate effects March 2014 UBS Conference in Boston 12
  13. 13.  Global population growth  An aging population  Increased market penetration  Higher disposable income  Customers and consumers demand more comfort and sustainability Market Drivers Good growth opportunities UBS Conference in BostonMarch 2014 13
  14. 14. Aging Population Total population over 60 years exceeding 1 billion by 2020 UBS Conference in BostonMarch 2014 14 0 200 400 600 800 1 000 1 200 Total world Europe China USA 2013 2020 +30% +22% Millions over 60 years old +25% +13%
  15. 15. 15 Western Europe  Eastern Europe  Latin America AsiaNorth America Usage of Hygiene products  Units/person with incontinence/year Units/child up to 2.5 years/year Units/woman 15-49 years/year Kg/capita/year UBS Conference in BostonMarch 2014 0 100 200 300 400 500 600 700 0 100 200 300 400 0 5 10 15 20 25 Incontinence Products Baby Diapers Feminine Care Tissue Hygiene Products High potential in markets with low penetration 0 500 1 000 1 500 2 000
  16. 16. Growth Good growth in Emerging markets * 2013 compared with 2012, excluding exchange rate effects 42% 58% 20% 80% Personal Care Tissue Mature markets Emerging markets Mature markets Emerging markets Growth in Emerging Markets 2013: 10%* 13%* 16 26% 74% Group Mature markets Emerging markets 11%* UBS Conference in BostonMarch 2014
  17. 17. * Excluding exchange rate effects and divestments ** Excluding divestments *** Excluding items affecting comparability, exchange rate effects, divestments and including gains on forest swaps of SEK 583m (91) before tax Summary 2013 vs 2012  Sales increased 10%*  Hygiene business, 12%*  Forest Products, 0%**  EBIT increased 19%***  Proposed increase in the dividend by 5.6% to SEK 4.75 per share March 2014 UBS Conference in Boston 17

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