SCA's Presentation at the Cheuvreux Pan Europe Forum 22 May 2012

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Presentation held by Mats Berencreutz, Executive Vice Presidentat SCA, at the Cheuvreux Pan Europe Forum 22 May 2012.

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SCA's Presentation at the Cheuvreux Pan Europe Forum 22 May 2012

  1. 1. Cheuvreux conferenceMats Berencreutz, Executive Vice President
  2. 2. SCA Group in 2011 Net sales of SEK 106bn 44,000 employees and sales in more than 100 countries World’s third-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s second-largest packaging company* Europe’s largest private forest owner Europe’s second-largest sawmill company* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested2 May 2012
  3. 3. Leading market positions Globally and regionally Nordic regionNorth America Incontinence products: 1 EuropeAFH tissue: 3 Baby diapers: 1 Tissue: 1Incontinence products: 3 AFH tissue: 1 Corrugated board: 2 Consumer tissue: 2 Solid-wood products: 2Mexico Baby diapers: 3Incontinence products: 1 Incontinence products: 1Consumer tissue: 2 Private forest owners: 1AFH tissue: 3 AsiaFeminine care: 1 Incontinence products: 1Baby diapers: 3 GloballyColombia Incontinence products: 1Incontinence products: 1Feminine care: 1 AFH tissue: 2Tissue: 1 3 May 2012
  4. 4. Strong global and regional brandsTwo global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America4 May 2012
  5. 5. Major changes Acquisition of Georgia-Pacific’s European tissue operations Divestment of the Packaging business, excluding the two kraftliner mills Established joint venture in Australia/New Zealand Acquisition of Everbeauty an Asian hygiene products company Increased shareholding in Vinda Acquisition of PISA in Chile New hygiene organization Acquisition of PLF a French solid-wood products company5 May 2012
  6. 6. Acquisition of Georgia-Pacific’sEuropean tissue operations Creates a leading European tissue company Strengthens SCA’s product offering and geographic presence Sales: EUR 1.25bn Purchase price: EUR 1.32bn Annual synergies: EUR 125m With full implementation of synergies, earnings per share are expected to increase by approximately SEK 1.706 May 2012
  7. 7. Georgia-Pacific acquisitionSubstantial synergies Increased supply chain efficiency  Optimization of logistics  More efficient sourcing Improved SG&A and A&P efficiency  Annual synergies: EUR 125m  Improves Tissue EBIT margins by 2-2.5 percentage points  Full effect in 3 years after closing  Related costs: EUR 130m7 May 2012
  8. 8. Georgia-Pacific acquisitionEnhances SCA’s presence in Consumer and AFH tissue European Consumer tissue market 25% SCA SCA and GP 35% European AFH tissue market SCA and GP SCA 20% 30%8 May 2012
  9. 9. Georgia-Pacific acquisition Increased share of branded consumer tissue sales SCA’s Consumer tissue sales SCA SCA and GP Retailers’ Branded brands BrandedRetailers’ 40% 50% brands 9 May 2012
  10. 10. Divestment of Packaging operations  Divestment of Packaging operations to DS Smith  Excludes SCA’s two kraftliner mills in Sweden  Sales: SEK 24.4bn  Purchase price: EUR 1.7bn on a debt-free basis  Earnings per share declines by SEK 0.73** Based on earnings for the period for 2011 10 May 2012
  11. 11. SCA GroupAfter completion of ongoing transactions Net sales of SEK 92bn 37,000 employees and sales in more than 100 countries World’s second-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s largest private forest owner Europe’s second-largest sawmill company11 May 2012
  12. 12. SCA GroupHygiene business is growing % of net sales ~20%* 54% 40% 46% 60% ~80%* Forest Products and Hygiene products Packaging (Personal Care and Tissue)* Provided that the Packaging divestment and the acquisition of Georgia-Pacific’s European tissue business are closed according to plan.12 May 2012
  13. 13. SCA Group’s strategic priorities EFFICIENCY INNOVATION GROWTH13 May 2012
  14. 14. Efficiency Restructuring programme in baby diapers in Europe completed Efficiency programme  Mainly related to Personal Care and Tissue  Annual cost saving: SEK 700m  Gradual impact in 2012-2013 Investments in upgrade of existing and new capacity14 May 2012
  15. 15. InnovationStrengthens market positions and profitability15 May 2012
  16. 16. Growth Organic growth of 4%* High growth in emerging markets Acquisition of Georgia-Pacific´s European tissue operations Acquisition in Brazil  Pro Descart, No. 2 in incontinence care Acquisition in Turkey  San Saglik 95%, No. 2 in incontinence care  Komili 50%, No. 4 in baby diapers and feminine care Acquisition of Everbeauty an Asian personal care company Continued expansion of wind power opportunities  Ongoing projects totalling 4 TWh* Q1 2012 compared with Q1 2011, excluding exchange rate movements and divestments 16 May 2012
  17. 17. Acquisition of EverbeautyLeading Asian personal care company Sales: SEK 1.6bn* Sales split: baby diapers 60% and incontinence products 40% Purchase price: SEK 1.9bn Sales in China, Taiwan and Southeast Asia Strong brands, market positions and distribution • Incontinence care products • No. 2 in China and No. 1 in Taiwan • Baby diapers • No. 5 in China and Taiwan Closing expected during summer 2012* 2010 sales17 May 2012
  18. 18. GrowthGrowth potential for hygiene products Global population growth An aging population Increased market penetration Higher disposable income Customers and consumers demand more comfort and sustainability18 May 2012
  19. 19. GrowthHigh potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year North America Western Europe Eastern Europe Latin America Asia19 May 2012
  20. 20. Growth High growth in Emerging markets Q1 2012 Emerging markets sales growth: Personal Care: +23%* Tissue: +14%* % of Personal Care sales % of Tissue sales Emerging markets 18% Emerging markets 35%Mature markets Mature markets * Adjusted for exchange rate movements 20 May 2012
  21. 21. Q&A21 May 2012
  22. 22. IR Contacts:Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor RelationsTel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: ir@sca.com Website: www.sca.com

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