SCA CFO Lennart Persson presentation at SEB TMC seminar September 22 2011

SEB TMC seminar Lennart Persson, CFO1 22 September 2011

SCA GroupA global hygiene products and paper company Net sales SEK 107bn 45,000 employees and sales in more than 100 countries World’s third largest hygiene products company TEN and Tork leading global brands for incontinence care and Away-From-Home tissue Europe’s largest private forest owner Europe’s second largest packaging company2 22 September 2011

SCA largestworld’s thirdhygiene company 3 22 September 2011

SCA GroupSales and EBIT split 2010 Forest Products Sales split Personal Care 16% 24% 24% 36% Packaging Tissue4 22 September 2011

Increasing hygiene sales % of net sales 100% 80% 54% 40% 60% 40% 60% 20% 46% 0% 2000 2000 2010 2010 Packaging and Hygiene products Forest Products (Personal Care and Tissue)5 22 September 2011

Strategic focus areas6 22 September 2011

Strong global and regional brands Two global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America Sales of SEK 65bn, with sales in more than 100 countries7 22 September 2011

Leading market positions Global and regionalNorth AmericaAFH tissue: 3 EuropeIncontinence care: 3 Tissue: 1 Baby diapers: 2 Incontinence care: 1MexicoIncontinence care: 1Tissue: 2Feminine care: 1Baby diapers: 3 Global Incontinence care: 1 Colombia AFH tissue: 2 Australia Incontinence care: 1 Feminine care: 1 Feminine care: 1 Tissue: 1 Incontinence care: 1 Tissue: 2 8 22 September 2011

Hygiene businessStrategic focus Strengthen positions and increase growth in main markets and emerging markets Increase the number of global brands Increase the pace of innovations Efficiency improvements9 22 September 2011

Innovation for profitable growth Meet changing demands and requirements Create long-term, profitable differentiation Strengthen market positions Build stronger brands Drive growth10 22 September 2011

InnovationStrengthens market positions and profitability11 22 September 2011

InnovationStrengthens market positions and profitability12 22 September 2011

Growth potential for hygiene products  Global population growth  An aging population  Increased market penetration  Higher disposable income  Customers and consumers demand more comfort and sustainabilityGlobal market size for hygiene products: SEK 675bn 13 22 September 2011

Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/yearPenetrationin maturemarketsaround 35% North America Western Europe Eastern Europe Latin America Asia 14 22 September 2011

Population growth 2010-2020Demographics People, millions 8 000 +12% 2010 2020 7 000 6 000 5 000 +11% 4 000 , 3 000 2 000 +7% 1 000 +2% +33% 0 World Children 0-4 Women 15-49 >65 yrs Other yrs yrs15 22 September 2011

GrowthSCA’s growth markets Latin America  Strong SCA positions South East Asia  Good market growth  Favourable socio-demographics Eastern Europe /Russia  Good market growth Middle East  Favourable socio-demographics China  Incontinence care products16 22 September 2011

GrowthHigh growth in Emerging marketsH1 2011Emerging markets hygiene sales growth: Personal Care: +9%* Tissue: +9%* % of Hygiene sales in 2010 Emerging markets 21% Mature markets * Adjusted for exchange rate movements17 22 September 2011

Growth Acquisitions strengthen Emerging markets presence Algodonera Copamex San Saglik, 95% Pro Descart Aconcagua  No. 3 in baby diapers  No. 2 in incontinence  No. 2 in incontinence No. 3 in feminine care care products care products Smaller positions in  Smaller position in baby diapers and baby diapers incontinence care products Komili, 50%  No. 4 position in baby diapers and feminine care 18 22 September 2011

Sustainability as a business driver Reduced cost  ESAVE = SEK 600m in annual cost savings Improved competitive edge  Sustainability credentials generate good business  Great growth potential through customized offerings in D&E markets  Renewable energy, wind power, biofuels  World’s largest producer of FSC-certified products Attract investors  23% of investors in SCA shares make sustainability screening Reduced risk level Attract top talents Strengthen the brand19 22 September 2011

Sustainability as a business driver Extensive customer and consumer demand for sustainable solutions and eco labelling Growing sustainability interest in emerging markets Great growth potential with customized offerings in D&E markets Sustainability drives innovation20 22 September 2011

Short-term update No impact from debt crisis Good demand in all Business areas Raw material prices slightly down Price increases21 22 September 2011

Q&A22 22 September 2011

IR Contacts: Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor Relations Tel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: ir@sca.com Website: www.sca.com23 22 September 2011

SCA CFO Lennart Persson presentation at SEB TMC seminar September 22 2011

by SCA Svenska Cellulosa Aktiebolaget

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SCA CFO Lennart Persson presentation at SEB TMC seminar September 22 2011 Presentation Transcript