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Nordic Seminar, New York
20 May 2010
Jan Johansson, President and CEO
Lennart Persson, CFO




                           ...
SCA – a global hygiene products and
paper company

    Net sales of SEK 111bn
    Approximately 50,000 employees and
    s...
SCA Group
    Sales and EBIT split 2009

EBIT split                                                             EBIT split...
Strong global and regional positions
                                   Nordic region
                                   B...
SCA Group Strategic Direction



    1. 2. 3.
                                4.
5                                20 May 2...
Growth
  High potential in markets with low penetration

      Usage of hygiene products

              Units/capita/year ...
Our growth markets

                     Strong SCA positions
                     Good market growth
                    ...
Q1 2010
Market update
    Significantly increased raw material prices
          OCC +140%
          Recovered paper US +80...
Significantly increased raw material prices
                                           March 2009 – USD 578
    NBSK pulp ...
Q1 2010 results
SEK millions                                                  Q1              Q1 Change, Change,     Q4
  ...
Reduced net debt
And improved debt payment capacity

SEKm                                             %


                ...
Personal Care
 Q1 2010 vs Q1 2009

                                6,476
                       6,109              Sales d...
Tissue
 Q1 2010 vs Q1 2009


                                            Sales decreased 7% (0%*)
                        ...
Packaging
 Q1 2010 vs Q1 2009


                                                    Sales decreased by 3% (7%*)
          ...
Forest Products
 Q1 2010 vs Q1 2009

                                           Sales decreased by 5% (-3%*)
             ...
Outlook 2010
 Group
         Improved general market conditions
         Effects from price increases and cost reductions ...
17   20 May 2010
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SCA CEO Jan Johansson's presentation at the NASDAQ OMX and SEB Enskilda Nordic Market Day

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New York, 2010-05-20 | SCA CEO Jan Johansson's presentation at the NASDAQ OMX and SEB Enskilda Nordic Market Day.

http://www.sca.com

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Transcript of "SCA CEO Jan Johansson's presentation at the NASDAQ OMX and SEB Enskilda Nordic Market Day"

  1. 1. Nordic Seminar, New York 20 May 2010 Jan Johansson, President and CEO Lennart Persson, CFO 20 May 2010
  2. 2. SCA – a global hygiene products and paper company Net sales of SEK 111bn Approximately 50,000 employees and sales in more than 100 countries TEN and Tork leading global brands for incontinence care and Away From Home tissue Ranked 2nd greenest company in the world, one of the world’s 100 most sustainable companies and one of the world’s most ethical companies, included in the Dow Jones Sustainability indexes 2 20 May 2010
  3. 3. SCA Group Sales and EBIT split 2009 EBIT split EBIT split Forest Products Sales split Personal Care 25% 32% 15% 23% 25% 37% 4% 39% Packaging Tissue Sales 2009: SEK 111bn 3 20 May 2010
  4. 4. Strong global and regional positions Nordic region Baby diapers: 1 North America Europe AFH tissue: 3 Tissue: 1 Incontinence care: 3 Corrugated board: 2 Baby diapers: 3 Incontinence care: 1 Mexico Privately owned forests: 1 Hygiene products: 2 Global Incontinence care: 1 Colombia AFH tissue: 3 Incontinence care: 1 Australia Feminine care: 1 Feminine care: 1 Tissue: 1 Incontinence care: 1 Tissue: 2 4 20 May 2010
  5. 5. SCA Group Strategic Direction 1. 2. 3. 4. 5 20 May 2010
  6. 6. Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year Penetration in mature markets around 35% North America Western Europe Eastern Europe Latin America Asia 6 20 May 2010
  7. 7. Our growth markets Strong SCA positions Good market growth Favourable socio-demographics Joint venture Good market growth Favourable socio-demographics Market tests of Incontinence care products and Baby diapers 7 20 May 2010
  8. 8. Q1 2010 Market update Significantly increased raw material prices OCC +140% Recovered paper US +80% Recovered paper Europe +30% Pulp +40% Hygiene businesses Stable demand Packaging and Forest Products Increased demand from low levels for packaging • Western European demand +3%* Good market balance for solid-wood products European demand for publication papers: • Magazine paper (SC and LWC) +4% • Newsprint +2% * Year to date February 2010 vs 2009 8 20 May 2010
  9. 9. Significantly increased raw material prices March 2009 – USD 578 NBSK pulp March 2010 – USD 879 OCC March 2009 – EUR 39 March 2010 – EUR 102 950 USD/metric ton USD/Metric tonne EUR / ton 925 EUR/t 120 900 875 850 110 825 800 100 775 750 90 725 700 675 80 650 625 70 600 575 60 550 525 50 500 475 450 40 425 400 30 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 NBSK PIX Value OCC PIX Recovered paper - USA February 2009 – USD 166 USD/short ton February 2010 – USD 303 450 USD/short ton 400 350 300 250 200 150 100 50 0 -93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 High grade deinking OCC 9 20 May 2010
  10. 10. Q1 2010 results SEK millions Q1 Q1 Change, Change, Q4 unless otherwise stated 2010 2009 % %** 2009 Net sales 26,722 28,327 -6 1 27,507 EBIT* 2,027 2,136 -5 -1 2,568 EBIT margin* (%) 7.6 7.5 9.3 Profit before tax* 1,748 1,511 16 20 2,280 Earnings per share (SEK) 1.53 1.58 -3 1.72 Cash flow from current operations 1,148 1,640 -30 2,544 Debt/Equity ratio 0.57 0.70 0.60 EBIT decreased 1%** Higher volumes Synergies and cost savings Higher raw material costs Lower prices Profit before tax increased 16%* Lower finance net * Adjusted for Packaging restructuring costs ** Adjusted for Packaging restructuring costs and exchange rate movements 10 20 May 2010
  11. 11. Reduced net debt And improved debt payment capacity SEKm % 35% 33% 33% 32% 25% 11 20 May 2010
  12. 12. Personal Care Q1 2010 vs Q1 2009 6,476 6,109 Sales decreased 6% (0%*) -6% Incontinence care up 3%* Feminine care up 9%* Baby diapers -9%* SALES SEKm Q1 2010 Q1 2009 EBIT increased by 5% (9%*) 737 Higher volumes 704 Lower prices 5% Lower raw material cost Higher marketing costs EBIT SEKm Q1 2010 Q1 2009 EBIT margin 12.1% 10.9% * Adjusted for exchange rate movements 12 20 May 2010
  13. 13. Tissue Q1 2010 vs Q1 2009 Sales decreased 7% (0%*) 10,466 9,728 Consumer tissue -3%* -7% AFH-tissue increased 6%* EBIT decreased by 18% (-13%*) SALES SEKm Q1 2010 Q1 2009 Higher volumes Lower energy and distribution costs Acquisition synergies 864 Lower prices 710 Higher raw material costs -18% EBIT SEKm Q1 2010 Q1 2009 EBIT margin 7.3% 8.3% * Adjusted for exchange rate movements 13 20 May 2010
  14. 14. Packaging Q1 2010 vs Q1 2009 Sales decreased by 3% (7%*) 7,495 7,253 Higher prices and volumes -3% EBIT increased by 137%** (152%***) Higher prices and volumes SALES SEKm Q1 2010 Q1 2009 Savings from restructuring program Increased raw material costs 192** 137%** 81 EBIT SEKm Q1 2010 Q1 2009 EBIT margin 2.6%** 1.1% * Adjusted for exchange rate movements and the closure of the New Hythe testliner mill in the UK ** Adjusted for restructuring costs *** Adjusted for restructuring costs and exchange rate movements 14 20 May 2010
  15. 15. Forest Products Q1 2010 vs Q1 2009 Sales decreased by 5% (-3%*) 4,333 4,110 Publication papers -5% • Higher volumes • Lower prices Solid-wood products • Higher volumes SALES SEKm Q1 2010 Q1 2009 • Higher prices EBIT decreased by 16% (-16%*) Publication papers, decreased EBIT 583 487 • Lower prices -16% Solid-wood products, increased EBIT EBIT SEKm • Higher volumes Q1 2010 Q1 2009 • Higher prices EBIT margin 11.8% 13.5% Pulp, increased EBIT • Higher prices * Adjusted for exchange rate movements 15 20 May 2010
  16. 16. Outlook 2010 Group Improved general market conditions Effects from price increases and cost reductions gradually during the second half 2010 Hygiene businesses Good demand High promotion activities Increasing prices for Tissue Packaging Demand improvement Increasing prices Forest Products Signs of small recovery from low level for publication papers Price increases on magazine paper Good market balance for solid-wood products 16 20 May 2010
  17. 17. 17 20 May 2010
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