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SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France
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SCA presentation at Deutsche Bank Consumer Goods Conference, Paris, France

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2010-06-15 | Presentation of Lennart Persson, CFO and Mats Berencreutz, President SCA Tissue Europe at Deutsche Bank Consumer Goods Conference in Paris, France. …

2010-06-15 | Presentation of Lennart Persson, CFO and Mats Berencreutz, President SCA Tissue Europe at Deutsche Bank Consumer Goods Conference in Paris, France.

http://www.sca.com

Published in: Business, Health & Medicine
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  • 1. Deutsche Bank Global consumer conference 2010 15 June 2010 Lennart Persson, CFO Mats Berencreutz, President Tissue Europe
  • 2. 15 June 2010 SCA one of three leading hygiene companies worldwide
  • 3. SCA – a global hygiene products and paper company <ul><li>Net sales of SEK 111bn </li></ul><ul><li>Approximately 50,000 employees and sales in more than 100 countries </li></ul><ul><li>TEN and Tork leading global brands for incontinence care and Away From Home tissue </li></ul><ul><li>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 </li></ul>15 June 2010
  • 4. 15 June 2010 Forest Products Packaging Tissue Personal Care 37% 25% 15% 23% Sales 2009: SEK 111bn SCA Group Sales and EBIT split 2009 32% 39% 25% 4% Sales split EBIT split EBIT split
  • 5. Strong global and regional positions 15 June 2010 Australia Feminine care: 1 Incontinence care: 1 Tissue: 2 Mexico Incontinence care: 1 Tissue: 2 Feminine care: 3 Global Incontinence care: 1 AFH tissue: 3 Colombia Incontinence care: 1 Feminine care: 1 Tissue: 1 North America AFH tissue: 3 Incontinence care: 3 Nordic region Baby diapers: 1 Europe Tissue: 1 Corrugated board: 2 Baby diapers: 3 Incontinence care: 1 Privately owned forests: 1
  • 6. SCA Group Strategic Direction 15 June 2010
  • 7. Growth High potential in markets with low penetration 15 June 2010 Units/capita/year Units/child/year Units/woman/year Western Europe Eastern Europe Latin America Asia North America Kg/capita/year Penetration in mature markets around 35% Usage of hygiene products
  • 8. 15 June 2010 <ul><li>Strong SCA positions </li></ul><ul><li>Good market growth </li></ul><ul><li>Favourable socio-demographics </li></ul>Our growth markets <ul><li>Joint venture </li></ul><ul><li>Good market growth </li></ul><ul><li>Favourable socio-demographics </li></ul><ul><li>Market tests of Incontinence care products and Baby diapers </li></ul>
  • 9. 15 June 2010 11% Feminine care Baby diapers Incontinence care Consumer tissue Hygiene products Sales split Sales 2009: SEK 67bn Away-From- Home tissue 39% 23% 21% 11% 6%
  • 10. Personal Care Financial overview 2009 15 June 2010 Net sales SEK 25,716m 23% of Group EBIT SEK 3,235m 32% of Group Capital employed SEK 11,430m 11% of Group Operating Cash flow SEK 4,436m 30% of Group EBIT margin : 13% ROCE: 29% Target ROCE : 30% Personal care sales split Incontinence care: 55% Baby diapers: 29% Feminine care: 16%
  • 11. Personal Care Strategic focus 15 June 2010 Short and mid term <ul><li>Maintain Tena leadership in premium segment and increase growth in economy segment </li></ul><ul><li>Strengthen leading positions in Europe </li></ul><ul><li>Further restore Baby diapers private label profitability </li></ul><ul><li>Drive innovation </li></ul><ul><li>Market test in China </li></ul><ul><li>Grow in prioritized Emerging markets </li></ul><ul><li>Increase value added and branded </li></ul>
  • 12. Baby diapers Improving profitability 15 June 2010 <ul><li>More efficient production structure </li></ul><ul><ul><li>Closure of factory in France </li></ul></ul><ul><ul><li>Personnel reduction in the Netherlands </li></ul></ul><ul><ul><li>Total cost: EUR 60m </li></ul></ul><ul><ul><li>Annual savings: EUR 15m, with full effect from Q3 2011 </li></ul></ul><ul><li>New factory in Russia </li></ul><ul><li>Establish retailer brand organization </li></ul><ul><li>Product and technology redesign </li></ul>Initiatives
  • 13. EURm New products & services North Europe South Europe North America Emerging markets Reimbursement Retail TV Internet Design TENA A true success story 15 June 2010 Annual sales growth 1989-2009: 9%
  • 14. 15 June 2010 Increased pace of innovation Strengthens market positions
  • 15. Tissue Financial overview 2009 15 June 2010 Net sales SEK 41,425m 37% of Group EBIT SEK 3,946m 39% of Group Capital employed SEK 37,196m 35% of Group Operating Cash flow SEK 5,979m 41% of Group EBIT margin : 10% ROCE : 10% Target ROCE : 13% Tissue sales split AFH tissue: 37% Consumer tissue: 63%
  • 16. Tissue Strategic focus 15 June 2010 Short and mid term <ul><li>Strengthen leading positions in Europe </li></ul><ul><li>Further restore Consumer Tissue profitability </li></ul><ul><li>Drive innovation </li></ul><ul><li>Grow in prioritized Emerging markets </li></ul><ul><li>Increase value added and branded </li></ul><ul><li>Price management </li></ul>
  • 17. 15 June 2010 <ul><li>New Tissue plant </li></ul><ul><li>Annual production capacity of ~30,000 tonnes </li></ul><ul><li>Increased local production to meet rising consumer demand </li></ul><ul><li>Improves cost position and profitability </li></ul><ul><li>Started production during end of 2009 </li></ul><ul><li>New Tissue plant </li></ul><ul><li>Annual tissue production capacity of ~ 60,000 tonnes </li></ul><ul><li>Strengthens competitiveness and profitability </li></ul><ul><li>Start-up end of 2010 </li></ul>Investments supporting organic growth And strengthening profitability
  • 18. 15 June 2010 Tissue Europe Aspiration To be the undisputed Tissue Category Leader in Europe, and the preferred choice for European consumers and customers
  • 19. Integration of acquired business Consumer Tissue Europe 15 June 2010 Cost synergies Supply chain restructuring synergies Supply chain Integration synergies Commercial Synergies 40% 42% 18% <ul><li>Commercial synergies </li></ul><ul><ul><li>Front loaded synergies related to sales force and category resources </li></ul></ul><ul><li>Supply chain integration </li></ul><ul><ul><li>Optimizing logistics and internal replenishment flows </li></ul></ul><ul><li>Supply chain restructuring </li></ul><ul><ul><li>Optimizing supply chain footprint </li></ul></ul>Total annual cost synergies in 2010: SEK 700m Realized approximately 80%
  • 20. Lift and Shift Tissue Europe 15 June 2010 Lift Facility Service Partnership Brand expansion South Category Leadership Convert textile Channel Management Shift Facility Service Partnership Brand expansion South Category Leadership Convert textile Channel and Customer Management Eastern Europe – realize opportunity and growth Integrate and exploite opportunities in acquired business Innovation Turnaround critical markets UK, Nordic and Italy Price Management and “Go To Market” approach Supply Chain Excellence Service Level Sourcing Excellence
  • 21. 15 June 2010 European Brand Strategy Stronger brands and more efficient A&P From … … To DACH East Nordic NL Focused, differentiated & consumer relevant mega-brand portfolio Complicated, region specific, inefficient brand portfolio
  • 22. Growth High potential in markets with low penetration 15 June 2010 Units/capita/year Units/child/year Units/woman/year Western Europe Eastern Europe Latin America Asia North America Kg/capita/year Penetration in mature markets around 35% Usage of hygiene products
  • 23. 15 June 2010 Increased pace of innovation Strengthens market positions
  • 24. AFH Tissue Europe 15 June 2010 Mature markets Emerging markets <ul><li>Focus on premium sales </li></ul><ul><li>Grow faster than the market </li></ul><ul><li>Achieve 20% market share </li></ul><ul><li>Double the business in Eastern Europe </li></ul>
  • 25. 15 June 2010 Q&A
  • 26. 15 June 2010 Tack.

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