SCA's presentation from the ABG Consumer Seminar in Stockholm

ABG Consumer SeminarMats Berencreutz, Executive Vice President

SCA GroupA global hygiene products and paper company Net sales SEK 106bn 44,000 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 company** In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested2 21 March 2012

SCA GroupNet sales 2011 Forest Products Net sales Personal Care 16% 23% 25% 36% Packaging* Tissue* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested3 21 March 2012

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.4 21 March 2012

Leading market positions Global and regionalNorth America EuropeAFH tissue: 3 Tissue: 1Incontinence care: 3 Corrugated board: 2 Baby diapers: 3 Incontinence care: 1Mexico Privately owned forests: 1Incontinence care: 1 Solid-wood products: 2Tissue: 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 5 21 March 2012

Strong global and regional brandsTwo global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America6 21 March 2012

Key events Acquisition of Georgia-Pacific’s European tissue operations Divestment of the Packaging business, excluding the two kraftliner mills Acquisitions in emerging markets Binding offer to acquire Asian hygiene products company Established joint venture in Australasia Efficiency program New hygiene organization Wind power joint venture with Fred.Olsen Renewables7 21 March 2012

Acquisition of Georgia-Pacific’sEuropean tissue operations Creates a leading European tissue company Strengthens our product offering and geographic reach Offered price: EUR 1.32bn Sales: EUR 1.25bn Annual synergies: EUR 125m With fully realized synergies earnings per share are expected to increase with approx. SEK 1.70 Closing expected in Q2 20128 21 March 2012

Substantial 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 130m9 21 March 2012

Enhances SCA’s presenceIn both Consumer tissue and AFH tissue European Consumer tissue market 25% SCA SCA and GP 35% European AFH tissue market SCA and GP SCA 20% 30%10 21 March 2012

Increased share of branded sales In Consumer tissue SCA’s Consumer tissue sales SCA SCA and GP Retailers’ Branded brands BrandedRetailers’ 40% 50% brands 11 21 March 2012

Divestment of PackagingSupports SCA’s strategy Divestment of Packaging to DS Smith Enables increased growth in the hygiene business SCA’s two kraftliner mills in Sweden are not included Purchase price: EUR 1.7bn Sales: SEK 24.4bn Earnings per share decrease by SEK 0.73* Closing is expected in Q2 2012* Based on the net profit for 201112 21 March 2012

Binding offer to acquire 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 sales13 21 March 2012

Strategic focus areas14 21 March 2012

Efficiency Restructuring program in baby diapers in Europe finalized Efficiency program  Mainly related to Personal Care and Tissue  Annual cost savings: SEK 700m  Gradual impact during 2012-2013  Annualized savings in Q4 2011: SEK 200m New hygiene organization Investments in new capacity and upgrades15 21 March 2012

InnovationStrengthens market positions and profitability16 21 March 2012

Growth Acquisition of Georgia-Pacific´s European tissue operations High growth in emerging markets Acquisition in Brazil  Pro Descart, No. 2 in incontinence products Acquisitions in Turkey  San Saglik 95%, No. 2 in incontinence products  Komili 50%, No. 4 in baby diapers and feminine care products Binding offer to acquire Asian personal care company New hygiene organization Wind power joint venture with Fred.Olsen Renewables Investments in new capacity and upgrades17 21 March 2012

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 21 March 2012

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 21 March 2012

Growth High growth in Emerging markets 2011 Emerging markets sales growth: Personal Care: +13%* Tissue: +10%* % of Personal Care sales % of Tissue sales Emerging markets 16% Emerging markets 32%Mature markets Mature markets * Adjusted for exchange rate movements 20 21 March 2012

Q&A21 21 March 2012

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

SCA's presentation from the ABG Consumer Seminar in Stockholm

by SCA Svenska Cellulosa Aktiebolaget on Jun 27, 2012

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SCA’s presentation from the ABG Consumer Seminar in Stockholm Presentation Transcript