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SCA presentation at Deutsche Bank Consumer Goods Conference 2011

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http://www.sca.com/ir Read and download the SCA presentation at the Deutsche Bank Global Consumer Conference in Paris. SCA speakers were CFO Lennart Persson and COO Hygiene Businesses Mats …

http://www.sca.com/ir Read and download the SCA presentation at the Deutsche Bank Global Consumer Conference in Paris. SCA speakers were CFO Lennart Persson and COO Hygiene Businesses Mats Berencreutz. http://www.facebook.com/SCA http://www.twitter.com/SCAeveryday

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  • 1. Deutsche Bank GlobalConsumer ConferenceLennart Persson, CFOMats Berencreutz, COO Hygiene Businesses 14 June 2011
  • 2. HeadingSCA Subheading largestworld’s thirdhygiene company 2 14 June 2011
  • 3. 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 company3 14 June 2011
  • 4. SCA Group Sales and EBIT split 2010EBIT split EBIT split Forest Products Sales split Personal Care 25% 29% 16% 24% 24% 36% 16% 30% Packaging Tissue 4 14 June 2011
  • 5. SCA GroupHygiene business is growing % of net sales 100% 80% 54% 40% 60% 40% 60% 20% 46% 0% 2000 2000 2010 2010 Packaging and Hygiene products Forest Products5 14 June 2011
  • 6. HeadingSubheading SCA supplies every 2 nd napkin to North American restaurants6 14 June 2011
  • 7. Leading market positions Nordic regionNorth America Incontinence care: 1 EuropeAFH Tissue: 3 Baby diapers: 1 Tissue: 1Incontinence care: 3 AFH tissue: 1 Corrugated board: 2 Consumer tissue: 2 Solid-wood products: 2Mexico Baby diapers: 3Incontinence care: 1 Incontinence care: 1Tissue: 2 Privately owned forests: 1Feminine care: 3Baby diapers: 3 Australia Feminine care: 1Colombia Incontinence care: 1Incontinence care: 1 Global Tissue: 2Feminine care: 1 Incontinence care: 1Tissue: 1 AFH tissue: 3 7 14 June 2011
  • 8. Strong global and regional brands Eastern Europe North America Europe Latin America Asia Pacific8 14 June 2011
  • 9. SCA Group Strategic Priorities  Cost reductions in all  Efficiency programs in  Personal Care  SCA Group 5%* business areas of Packaging and Forest  Thin baby diaper SEK 1bn Products  Personal Care 2%**  TENA Ultra thins  Emerging markets 10%**  Cash flow from  Closure/Divestment  Strong TENA value current operations: of 18 packaging units assortment  Tissue 2%** SEK 7.4bn  Emerging markets 6%**  Supply chain  Tissue excellence and asset  Tork Xpressnap  Packaging 20%* utilization programs in Café Tissue Europe  Tork Performance  Forest Products 3%**  Tempo ice  Restructuring program in Baby diapers in  Packaging Europe  Trueflo  New tissue plant in  ZeoCool Mexico  Forest Products  New Personal Care  Increased value plant in Russia added* Adjusted for exchange rate movements, divestments and closures* *Adjusted for exchange rate movements 9 14 June 2011
  • 10. 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 products10 14 June 2011
  • 11. Q1 2011 resultsSEK millions Q1 Q1 Change, Change, unless otherwise stated 2011 2010 % %**Net sales 25,393 26,199 *** -3 6 ****EBIT* 2,112 2,027 4 10EBIT margin* (%) 8.3 7.7Profit before tax* 1,810 1,748 4 10Earnings per share (SEK) 1.89 1.53 24Cash flow from current operations 353 1,148Debt/Equity ratio 0.49 0.57* Adjusted for Packaging restructuring costs in 2010** Adjusted for exchange rate movements*** Net sales from SCA recycling business have been reclassified to other income with retroactive adjustment from 2010**** Adjusted for exchange rate movements and divestments11 14 June 2011
  • 12. Outlook 2011 Good demand for all businesses Good growth in Emerging markets for Hygiene businesses Continued high raw material costs Increasing corrugated prices Price increases for Personal Care, Tissue and publication papers during H212 14 June 2011
  • 13. Personal care Initiatives 2010  Restructuring program in baby diapers in Net sales 2010: Europe  Annual savings of EUR 15m with full effect SEK 25bn in Q3 2011  Investment in local production in Russia  Acquisition of Copamex baby diapers business  No. 3 in Mexico Feminine care Incontinence care  Growth 17% 56%  TENA has increased market share  Incontinence care products in China expanded  Feminine care products launched in Malaysia and tampons in Sweden and the Netherlands  Extended range of Libero baby care products  Emerging market sales increased 10%* Baby diapers 27%  Innovation  TENA Ultra thins  Thin baby diaper  Strong TENA value assortment* Adjusted for exchange rate movements 13 14 June 2011
  • 14. Personal CareInnovations strengthens market positions14 14 June 2011
  • 15. Personal Care Good growth opportunities 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 15 14 June 2011
  • 16. Personal Care TENA a true success story Annual sales growth 1990-2010: 9%Emerging markets EURm North DesignAmerica 1,400 Internet 1,200 TVSouth 1,000Europe Retail 800 Reimbursement 600 NorthEurope 400 200 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 New products & services 16 14 June 2011
  • 17. Personal CareSustainability as a business driver Growth potential in emerging markets  More people can afford hygiene products – and they prioritize it  Smaller packs, local distribution and value products in Latin America, Africa and Asia  Cooperation with Wal-Mart’s Bodega Aurrera stores in Mexico17 14 June 2011
  • 18. Tissue Initiatives 2010  Implementation of price increases Net sales 2010:  Investment in new tissue plant in Mexico SEK 40 bn  European brand migration project Consumer  Growth tissue  Tork has gained market share in Europe 62% and North America  Emerging market sales increased 6%*  Innovation  Tork Xpressnap Café  Tork Performance AFH-tissue  Tempo Ice 38%  Tempo Kids  Tempo toilet tissue* Adjusted for exchange rate movements 18 14 June 2011
  • 19. TissueInnovations strengthens market positions19 14 June 2011
  • 20. TissueSustainability as a business driver Increased customer demand, both from consumer and B2B Several tenders secured thanks to green credentials, i.e. Starbucks, Wembley stadium and McDonalds Increased demand for eco-labelling  90 Tork products received the EU Eco-label in 2010 Other labels such as the Green Seal, EcoLogo, Die Blaue Engel20 14 June 2011
  • 21. TissueStronger brands and more efficient A&P Complicated, region specific, Focused, differentiated & consumer inefficient brand portfolio relevant mega-brand portfolio DACH East Nordic NL From … … To21 14 June 2011
  • 22. Tissue Good growth opportunities in emerging markets 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 22 14 June 2011
  • 23. TissueInvestments New tissue machine, New tissue machine, Germany Russia  Start-up 2013  Start-up 2013  Capacity: 60,000 tonnes  Capacity: 60,000 tonnes  Primarily AFH tissue  Investment: SEK 1.2bn products  Investment: SEK 1.1bn Increases capacity, efficiency and profitability23 14 June 2011
  • 24. Q&A24 14 June 2011
  • 25. 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.com25 14 June 2011

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