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    This is SCA leaflet 2010 / 2011 This is SCA leaflet 2010 / 2011 Presentation Transcript

    • This is SCA 2010
    • ContentsSCA at a glance.......................... 2 Sustainability ............................ 32Strategy ...................................... 4 Integrating sustainability .......... 34Strategic priorities ...................... 5 Economic responsibility ........... 35Innovation ................................... 6 Environmental responsibility..... 36Building strong brands ............ 10 Social responsibility.................. 37Our business ............................ 14 Employees ................................ 38Personal Care ........................... 16 Key figures................................ 40Tissue ....................................... 20 Addresses................................. 41Packaging................................. 24Forest Products ........................ 28 SCA has been listed SCA was named one of the SCA was ranked as one of In 2008, SCA became a UN on the FTSE4Good global world’s most ethical compa- the world’s most sustaina- Global Compact member. SCA’s sustainability index nies by the Ethisphere Insti- ble companies in 2010 by 2008 and 2009 Communication since 2001. tute in the US. the responsible business on Progress reports were selec- magazine Corporate ted as representative of Best Knights. Practice.❯ Read more at www.sca.com
    • SCA at a glanceSCA is a global hygiene and paper companythat develops, produces and markets personalcare products, tissue, packaging, publicationpapers and solid-wood products. SCA hassales in more than 100 countries and about45,000 employees. In 2010, SCA had annualsales of SEK 109bn. This is SCA
    • Rubriknivå 1 The year at a glance • Net sales amounted to SEK 109,142m (110,857) ipsum lorem SEK 8,492m (8,004) 1) • Profit before tax totalled • Earnings per share amounted to SEK 7.90 (6.78) Dividend of SEK 4.00 (3.70) per share 1) Excluding items affecting comparability. Group’s largest markets SEKm Germany UK US France Sweden Italy Netherlands Spain Australia Denmark 0 4,000 8,000 12,000 16,000 SCA’s sales per region Europe, 75% North America, 9% Latin America, 6% Asia, 5% Australasia, 4% Other countries, 1%2 This is SCA
    • SCA in numbers 15 % 22% 25 % 29 % Group Group 27 % 109,142 9,608 SEKm SEKm 16 % 36 % 30 % Net sales Operating profit 11 % 9% 19 % 31 % Group Group 102,227 36 % 34 % 45,341 SEKm 38 % 22 % Capital employed Average number of employees Personal Care Tissue Packaging Forest Products This is SCA 3
    • Strategy Business concept To sustainably develop, produce and market increasingly value-added products and services within Personal Care, Tissue, Packaging and Forest Products. SCA’s products simplify the everyday lives of hundreds of millions of people around the globe. They also generate strong cash flow that enables favourable dividend growth and increased value for the SCA share. Mission To provide essential products that improve the quality of everyday life. Vision To be recognized as the leading provider of value for customers, shareholders and employees in its field. ❯ Read more at www.sca.com4 This is SCA
    • Strategic priorities To improve profitability, increase growth and achieve the Group’s financial target for return on capital employed, SCA has established the following prioritised areas: Costs and cash flow · Capital efficiency · Innovation · GrowthPersonal Care Tissue Packaging Forest Products• Higher growth in • Continued focus • Raise the share of • Shift toward more prioritised emerging on innovation complete packaging value-added and markets • Greater presence in solutions customised products• Advance SCA’s emerging markets • Lead development in within publication pa- leading position in • Optimisation of pro- the packaging market pers and solid-wood incontinence care duction and distribution through innovation and products under the TENA brand • Increase growth in AFH product development • Utilise the potential• Increase the launch under the Tork brand • Continued rationalisa- for energy production rate of innovations • Continued develop- tion and efficiency • Continued productivity• Enhance the efficiency ment of the brand plat- enhancement improvements of production and form within consumer • Continued focus on • Greater raw material distribution tissue in Europe Europe integration • Gradual expansion of the pulp operation The Group’s financial target: return on capital employed of 13% In 2010, return on capital employed, excluding restructuring costs, was 9% This is SCA 5
    • Innovation for profitable growth SCA has a long history of successful inno- vations. Successful innovation activities lead to differentiation and increased added value for SCA’s customers and consumers, thereby contributing to strong, market-leading positions and brands, and creating value for SCA’s shareholders and other stakeholders. SCA’s general innovation process is deeply embedded in the Group’s strategy and business model. It represents a fundamental framework for concept generation and innovation.6 This is SCA
    • SCA’s general innovation processInnovation is a means of developing and differentiating SCA’s products and services,retaining and strengthening market positions, building stronger brands and driving growth.SCA’s general innovation process • customer and consumer insightis deeply embedded in the • new technologyGroup’s strategy and business • business modelmodel. It represents a fundamentalframework for concept generation Innovations can start anywhereand innovation based on trends in in the Group or in cooperationthe business environment, insight with external partners in a net-into customer and consumer work. Experience proves thatrequirements and technological an innovation becomes successfulprogress. The innovation-related only when there is coherenceprocesses are continuously honed between customer and consumerand streamlined. insight, new technology and the Innovation activities in the business model.Group’s four business areas reston three basic building blocks:Driving forces for continuous innovation activities Meet changing demands Create long-term, profitable Create value by combining Generating growth and requirements among differentiation vis-à-vis higher customer and con- in sales, earnings and in customers and consumers. competitors. sumer value with reduced the number of customers manufacturing costs. and consumers. This is SCA 7
    • Innovation activities Innovation in the hygiene business Innovation in the hygiene segment is a prerequisite for retaining and strengthening market shares, building strong brands and creating new values for customers and consumers. A faster innovation and launch pace are two focus areas. Innovation in Packaging SCA’s Packaging business area has innovation expertise in many areas throughout the organisation. Packaging seeks to develop optimal packaging solutions with regard to function, design, logistics, transport, and environmental footprint. Another innovation area is strengthening retail points of sale and reducing the complexity of the industry’s packaging solutions. Innovation in Forest Products Innovations are a tool used by the Forest Products business area to further strengthen its competitiveness. Efforts in this respect permit Forest Products to move up the value chain and produce products and solutions with higher value and margins. By this means, SCA differentiates itself from the rest of the industry, while also meeting the requirements of business partners and customers.8 This is SCA
    • Examples of innovationZeoCool Tork Xpressnap Café TENA Ultra ThinsZeoCool is a temperature- In response to the demands During the year, TENA launchedcontrolled packaging that main- of the growing café market for a new ultra-thin incontinencetains complete product integrity a customized solution, SCA has pad, featuring improved comfortof +2° C to +8° C by controlling launched a napkin dispenser, and the same safety and odourthe internal payload space by which delivers only one napkin control of a thicker pad.reacting to the external ambient at a time. This reduces costs fortemperature. Among other consumers and saves resources.applications, ZeoCool isdesigned for shipping pharma-ceutical and medicinal productsrequiring constant low tempera-tures during shipping. ❯ Read more at www.sca.com This is SCA 9
    • Building strong brands to stay competitive SCA’s brand-building focuses on developing distinct and relevant brands based on high customer and consumer insight. Innovation is a key element in this work. Successful innovation work results in differentiation and higher added-value for customers and consumers, which contributes to strong market-leading brands and value creation for SCA’s shareholders and other stakeholders.10 This is SCA
    • This is SCA 11
    • Brand strategy SCA’s strategy is to build a strong Group-wide brand in which SCA is a guarantor for all of the Group’s product brands. SCA ensures that products, raw global strength, creates close consumer needs drive innovation materials, processes and the entire relations with customers and and business activities, and operations are developed in a sus- consumers while the economies these are decisive for developing tainable and responsible manner. of scale result in increased effi- SCA’s brands. The expertise In addition, the strategy is to ciency. The strategy also facilitates and commitment of the build a brand portfolio with strong crossmarket synergies and cost employees is crucial in this effort. product brands, globally, region- savings. ally and locally. A strong local Responsiveness and insight presence, combined with SCA’s with regard to customer and Packaging and Forest Products • SCA’s pulp grades are Product brands mainly conduct operations marketed under the product within Packaging under the SCA brand, but also names Celeste, Star and Luna. To secure a unique offering work with product brands. • Publication paper products for customers, Packaging has are presented as part of the a number of patented packaging Product brands Grapho family, for example, solutions and paper grades that within Forest Products GraphoCote, GraphoVerde are positioned under the brands • Power Pot is the seedling and GraphoMax. Herculight, ZeoCool, Mira, developed by SCA that is Trueflo and Freshpack. marketed to forest owners.12 This is SCA
    • Global and regional brands Global brands within the hygiene businessSCA is world-leading In the AFH tissue seg-in incontinence care ment, SCA is the world’swith the global brand third-largest supplierTENA. TENA is sold with the global brandin more than 100 Tork. Tork is sold in 80countries, with sales countries, with salesexceeding EUR 1bn. of more than EUR 1bn. Examples of regional brands within the hygiene businessSCA’s strongest market Libresse is SCA’s lead- Tempo is SCA’s consumer SCA’s baby diapersfor baby diapers is the ing brand for feminine tissue brand with strong are sold in SoutheastNordic region, with more care products and is market positions in Europe Asia under the Drypersthan a 60% market share centred geographically and Asia. Tempo offers brand and are market-for the Libero brand. in Europe. products for personal leading in Malaysia hygiene, including toilet and Singapore. paper and handkerchiefs. This is SCA 13
    • Our business SCA consists of four business areas – Personal Care, Tissue, Packaging and Forest Products. The Group operates in 100 countries and has production in about 40 countries. Although Europe is SCA’s main market, the Group also holds strong positions in North America, Latin America and Asia Pacific. Expansion takes place through organic growth and acquisitions.14 This is SCA
    • Personal Care Tissue Packaging Forest ProductsThe business area com- Consumer tissue consists SCA is a full-service Production comprisesprises three product seg- of toilet paper, kitchen supplier of packaging publication papers, pulpments: incontinence care, rolls, facial tissue, hand- solutions and offers both and solid-wood products,baby diapers and feminine kerchiefs and napkins. transport and consumer and is conducted at 17care. Production is In the Away-From-Home packaging. SCA operates facilities in three countries.conducted at 27 facilities (AFH) tissue segment, one innovation centre Products are mainly soldin 23 countries. Products SCA delivers complete and 16 design centres. in Europe, but also in Asia,are sold in more than 100 hygiene concepts to com- Production is conducted North Africa and Northcountries throughout the panies and institutions. at 170 facilities in 21 coun- America.world. Production is conducted tries. Products are sold in at 38 facilities in 18 36 countries in Europe. countries. Products are sold in some 80 countries throughout the world. This is SCA 15
    • • Strengthened global leadership for the TENA brand in incontinence care. • Higher pace of innovation and launch of improved customers offerings. • Start of production of baby diapers in Russia. • Acquisition of baby diaper operation in Mexico. • Efficiency improvement programme commenced in European baby diaper operations.16 This is SCA
    • Personal CareSCA is one of the world’s largest companies in personal care products andhas a portfolio of incontinence care, baby diapers and feminine care products.Market low market penetration drive totals 25% and the market sharesThe global market for personal demand for incontinence prod- in Europe and the US are 41%care products has annual sales ucts. In developing countries, and 20%, respectively.of just over SEK 290bn and is the use of all product categoriesgrowing at a rate of some 3% is expanding as the level of dis- Baby diapersannually. Europe accounts for posable income increases and SCA is the third-largest playerabout 30% and North America insight into the health benefits in baby diapers in Europe withfor 20% of the overall market. of hygiene grows. a market share of 12%. In Europe,Growth is fuelled by innovation, SCA sells baby diapers underhigher market penetration and Incontinence care own brands and retailers’ brands.increased disposable incomes. In incontinence care, SCA is SCA’s strongest market is theIn mature markets, baby diapers a world leader with its global Nordic region with a market shareand feminine care products have brand TENA, which generates of more than 60% under theattained high market penetration, annual sales of more than EUR Libero brand, which is also grow-while the aging population and 1 billion. The global market share ing rapidly in Russia and parts of Net sales, 22% Operating profit, 29% Capital employed, 11% Av. no. of employees, 19% SEK 25,027m SEK 2,922m SEK 10,620m 8,610 employees This is SCA 17
    • Eastern Europe. SCA commands strong feminine care brands a leading position in Southeast supported by SCA’s global Asia with the Drypers brand and brand platform. in South America with the Peque- ñín brand through a joint venture. Growth Several factors suggest the con- Feminine care tinuation of healthy growth in per- SCA is the third largest player sonal care products, particularly in feminine care in Europe with in emerging markets. Growth is a market share of 8%. SCA holds driven by innovation, the global leading positions in the Nordic population increase, an aging region, Australia, New Zealand population, higher market pene- In 2010, SCA continued to develop and fast-growing markets in East- tration and increased disposable new products at an increasingly rapid ern Europe, Russia, Latin America incomes. SCA’s target is annual pace, advanced its positions in both and the Middle East. Libresse, organic growth of 5–7%. mature and emerging markets and strengthened the global brand TENA Libra, Bodyform, Saba, Nosotras and its regional and local brands. and Nana are some of SCA’s18 This is SCA
    • Strategic priorities: SCA’s sales by region• Develop SCA’s world-leading position in incontinence care under the TENA brand. Europe, 64%• Continuously enhance production and North America, 14% distribution efficiency. Latin America, 8% Asia, 7%• Continue to gain in-depth insight into Australasia, 5% consumer and customer needs and apply Other, 2% this knowledge to product development and increase the launch rate of innovative product offerings.• Increase the growth rate in fast-growing markets in Eastern Europe, Russia, Asia, Latin America and the Middle East. SCA’s market positions• Grow through category expansion North under global brands and a greater share Europe America Global of high-value products. Incontinence care 1 (41%) 3 (20%) 1 (25%)• Continue activities related to the global Baby diapers 3 (12%) – 4 (5%) brand platforms and utilise synergies. Feminine care 3 (8%) – 5 (5%) Data is based on market data and SCA’s estimates. This is SCA 19
    • • Higher market shares for the Tork brand. • Higher pace of innovation and launch of new products. • Start of production at tissue plant in Mexico.20 This is SCA
    • TissueSCA offers consumer tissue products including toilet paper, kitchen rolls, facialtissue, handkerchiefs and napkins. In the Away-From-Home (AFH) tissue segment,SCA delivers complete hygiene concepts to companies and institutions.Market Consumer tissue SCA is the second-largest tissueThe global market for tissue SCA is Europe’s largest supplier supplier in Australia. Tempo,is valued at approximately of consumer tissue, with a market Zewa and Plenty are the leadingSEK 385bn annually. Europe share of 25%, and is the world’s brands in large parts of Europe.accounts for some 25% and third-largest with an 8% market The Edet brand has a strongNorth America for about 30% share. position in the Nordic region.of the overall market, with growth SCA has the brands Familiarates of 3% and 2%, respectively. and Favorita in South America AFH tissueThere is a higher growth rate in through joint ventures, which hold For AFH tissue, SCA is numberEastern Europe than in more strong positions in such emerging three globally with the Tork brand,mature markets in the West as a markets as Colombia, Chile and which commands a 16% shareresult of rising disposable incomes Equador. SCA has a strong posi- of the market. SCA is the marketand greater use of tissue products. tion with the Regio brand in the large Mexican market. Net sales, 36% Operating profit, 30% Capital employed, 36% Av. no. of employees, 38% SEK 39,870m SEK 3,041m SEK 36,168m 17,327 employees This is SCA 21
    • leader in Europe with a 19% Market penetration outside West- market share and is number ern Europe and the US remains three in North America with relatively low, with considerable a market share of 20%. growth potential. SCA’s target is annual organic growth of 3 – 4%. Growth The conditions for continued growth in tissue are favourable, particularly in emerging markets. Growth is driven by innovation, the global population increase, higher market penetration and SCA continued to develop new increased disposable incomes. products at an increasingly fast pace, advanced its positions in both mature and emerging markets and strengthened the global brand Tork and its regional brands.22 This is SCA
    • Strategic priorities: SCA’s sales by region• Continue to strengthen the global Tork brand in AFH tissue. Europe, 66%• Increase growth in AFH tissue. North America, 18% Australasia, 8%• Continue to focus on consumer and customer Latin America, 7% insight, innovations, product development Asia, 1% and marketing.• Raise the company’s presence in emerging markets, mainly through proprietary brands.• Continue development of the consumer tissue brand platform in Europe.• Strengthen positions of own consumer tissue brands. SCA’s market positions• Provide a clearer, added-value offering North for retailers’ brands. Europe America Global• Enhance efficiency of production Consumer tissue 1 (25%) – 3 (8%) and distribution. AFH tissue 1 (19%) 3 ( 20%) 3 (16%) Data is based on market data and SCA’s estimates. This is SCA 23
    • • Increased rate of innovation and growth in high value-added segments. • Restructuring programme carried out as planned. • Divestment of the Asian corrugated board operation.24 This is SCA
    • PackagingSCA is a full-service supplier of packaging solutions and offers bothtransport and consumer packaging. Most of SCA’s packaging is usedfor food, consumer durables and industrial products.Market vation and design, SCA holds Corrugated boardThe European corrugated-board a strong position in the high-value The two largest market categoriesmarket is valued at approximately segment of food and consumer for corrugated board packagingSEK 235bn and SCA is the durables. are the food and manufacturingsecond-largest producer of corru- In collaboration with its industries, which account forgated board and containerboard customers, the Group develops approximately 45% and 30%,in Europe with market shares of complete packaging solutions to respectively. The largest segment10% and 8%, respectively. meet exacting demands regarding in the food industry is processed SCA commands favourable the quality and appearance food, followed by fresh food andmarket positions in transport of packaging. SCA holds large beverages. Consumer durablespackaging where customers often market shares in the fast-growing is another major market category,seek to establish long-term part- international luxury goods seg- accounting for about 15% of theners for complete logistics and ment in where quality and product total market.design solutions. Thanks to its presentation and the brand canmarket-leading position in inno- be enhanced through packaging. Net sales, 27% Operating profit, 16% Capital employed, 22% Av. no. of employees, 34% SEK 29,633m SEK 1,577m SEK 22,229m 15,218 employees This is SCA 25
    • Growth In the long term, SCA’s focus Within Packaging, SCA will con- is to develop its leading positions Strategic priorities: tinue to focus on Europe, with the in advanced packaging in high • Continue to rationalise aim of achieving growth in pace value-added segments. These and streamline operations. with the market. Continued focus segments have a more stable • Provide complete on efficiency and innovation are rate of growth and offer SCA packaging solutions important initiatives to increase future expansion opportunities and added-value offering. the share of value-added prod- with solid growth. • Lead development in the ucts. Work on developing the packaging market through value chain and making it more innovation and product efficient and sustainable as well development. as finding new product areas are • Capitalise on growth also initiatives aimed at strength- opportunities in profitable, ening competiveness. Long-term high-value segments. competitiveness is also benefited by SCA’s environmental profile. • Continued focus on Europe.26 This is SCA
    • SCA’s sales by product segment Conventional corrugated board packaging, 69% Consumer packaging, 20% Service, 4% Industrial packaging, 4% Protective packaging, 3%The Packaging business areais fully integrated – from forestto recycling. This is SCA 27
    • • New business unit formed, SCA Energy. • Sales company established in China. • Jointly-owned sawmill company founded. • Efficiency improvement programme commenced at Ortviken paper mill. • Increased share of value-added products.28 This is SCA
    • Forest ProductsSCA is one of Europe’s most profitable producers of forest productsthat offers its customers publication papers, pulp and solid-wood products.Market GraphoVerde is a high-quality publication) and LWC paperSCA is Europe’s largest private magazine paper with more than (Light Weight Coated). Theseforest owner with a holding of 50% recycled fibre. paper grades are used for maga-2.6 million hectares of forest, GraphoMax is an uncoated zines, catalogues and advancedof which 2.0 million is managed publication paper grade based printed advertising, which arefor timber production. SCA is the entirely on fresh fibre. The printing all areas that offer favourable long-sixth-largest publication papers characteristics of GraphoMax term global growth.manufacturer and the third-largest are very impressive, making the SCA is the sixth-largestsolid-wood products manufacturer. paper grade ideal for advertising publication papers manufacturer Forest Products primarily con- materials in particular. in Europe and the eighth largestducts operations under the SCA among manufacturers of LWCbrand but also works with product Publication papers paper. SCA is also the sixth-brands. SCA specialises in the prime- largest among producers of SC Luna is a strong brand for a pulp quality segments in magazine paper and newsprint.grade with high absorption capacity. paper – SC (Super Calandered Net sales, 15% Operating profit, 25% Capital employed, 31% Av. no. of employees, 9% SEK 17,123m SEK 2,455m SEK 31,475m 4,186 employees This is SCA 29
    • Pulp, timber and and furniture. SCA is the third- solid-wood products largest solid-wood products The European market for solid- manufacturer in Europe. wood products amounts to some SEK 110bn, with demand primarily Growth deriving from the construction and The aim for Forest Products is house building industries, which to grow in line with the market. are relatively cyclical. Continuing the work on enhancing Forest Products has an annual efficiency and customer-driven pulp capacity of 520,000 tonnes. innovation is essential for Approximately 40% of this capa- consolidating positions and city is utilised within SCA for the improving profitability. The primary The European market for publication production of tissue and public- focus is on increasing the share papers amounts to SEK 140bn. ation papers. The remainder is of customised publication papers sold to external customers. and solid-wood products. Efforts SCA is also a qualified supplier to develop the value chain, make of purpose-designed wood prod- it more efficient and sustainable, ucts to the industry for further and develop new product areas processing into such items as are also important to strengthen- panels, floors, windows, doors ing competitiveness.30 This is SCA
    • Strategic priorities: SCA’s sales by region• Rationalisation and efficiency enhancement to achieve higher profitability. Europe, 88%• Higher share of value-added and customised Asia, 8% products in publication papers and solid-wood Africa, 2% products. North America, 1% Latin America, 1%• Greater raw material integration.• Utilise the commercial strength of SCA’s leading position in the environmental area, for example, in renewable raw materials and recyclable products.• Capitalise on the potential of energy production and effective energy solutions available in SCA’s extensive holdings of forests and forestland and in the industry’s processes and by-products.• Gradual expansion of the pulp operations. This is SCA 31
    • Sustainability For SCA, sustainability is not just a buzz word. It is an integral part of our operations and a part of our strategy for growth and value creation. We have a long tradition of taking responsibility for people and for nature. As early as the 1950s, SCA had an extensive social programme for its employees. And our origins as a forest products company have given us a deep connection with and responsibility to the environment. All around the world, SCA is involved in sustainability initiatives based on our core values: respect, excellence and responsibility. We have a system- atic approach and our intent is to be as transparent as possible. The foun- dation of our sustainability strategy comprises on four long-term targets.32 This is SCA
    • SCA’s four sustainability targetsCarbon dioxide from 100% control of fresh- Improved Universal Codefossil fuels shall be fibre raw materials water usage of Conductreduced by 20%SCA has worked pro- SCA is Europe’s largest SCA’s target is to Over the past twoactively for some time private owner of forest- reduce water usage decades, SCA hasto reduce emissions land and the Group’s by 15% and to reduce grown into a globalfrom fossil fuels. The own forests have been the organic content in company with aboutGroup adopted its first certified in accordance wastewater by 30% 45,000 employeescarbon dioxide target with the FSC, Forest during the period 2005 worldwide. This placesin 2001. In 2008, SCA Stewardship Council, to 2010. SCA’s water stricter demands onintroduced a new quan- since 1999. SCA also target 2005 – 2010 has the company’s socialtified carbon dioxide purchases large quanti- reached its conclusion and environmentaltarget that requires the ties of fresh-fibre raw and work is under way responsibility. SCA’sGroup to reduce emis- materials from external to prepare future water Code of Conduct ap-sions from fossil fuels suppliers. SCA’s goal is initiatives and targets. plies to all employees atby 20% by the year that no wood fibre used all locations worldwide.2020, with 2005 as in production derivesa reference year. from controversial sources. ❯ Read more at www.sca.com This is SCA 33
    • Integrating sustainability into strategy Sustainability is an integral part of SCA’s operations and the company’s strategy for growth and value creation. For SCA, corporate sustainability • Sustainable solutions: “SCA is a business approach that proactively delivers sustainable SCA Sustainab ility Report 2010 generates long-term shareholder and innovative solutions based value by embracing opportunities on customer and consumer and managing risks deriving from insights, with added value for economic, environmental and SCA and its stakeholders.” social developments. There are good reasons for • Sustainable operations: “SCA sustainability excellence. It im- delivers sustainable products proves competitiveness, reduces through safe, resource-efficient cost and risk. It also contributes and environmentally sound to strengthening the SCA brand operations.” and to attract investors and • Sustainable dialogue with employees. stakeholders: “SCA is one The sustainability strategy is of the industry leaders within an integral part of the company’s sustainability and the company SCA publishes a separate sustain- strategy and business plans, and proactively interacts with key ability report each year. The Global Reporting Initiative (GRI) guidelines, supports SCA’s strategic focus stakeholders.” level A+, are applied in the report areas: cost and cash flow, capital and a detailed GRI index table can efficiency, innovation and growth. be viewed at www.sca.com. The sustainability strategy frame- The Sustainability Report was work is divided into three key reviewed in its entirety by PwC. directions: SCA’s Sustainability Report is available at www.sca.com.34 This is SCA
    • Economic responsibilitySustainability programmes are of key importance to SCA’s ability to attractcustomers, employees and investors. From an owner perspective, sustainabilityinitiatives help to maximise the value of the company.Creating value regions to develop economically included. In 2010, interest from SRIfor stakeholders through the business relationships (Socially Responsible Investment)Through its business operations, SCA has with local stakeholders, players remained considerable.SCA helps to generate economic such as employees and localdevelopment in society and eco- suppliers.nomic development among itsstakeholders – both directly and SCA included in manyindirectly. sustainability indexes Our economic agenda SCA provides its customers with SCA is assessed annually by • Long-term competitiveness,products and it purchases mater- several ranking institutes. Since delivering growth andials and services from suppliers. 2001, SCA has been listed on profitability. Wages are paid to employees, FTSE4Good, an index measuring • Create value for ourwho in turn contribute to society earnings and performance among stakeholders.through taxes and purchasing companies that meet globally • Deliver sustainable prod-power. Shareholders receive divi- recognised norms for corporate ucts based on resource-effi-dends and society receives responsibility. Carbon Disclosure cient, safe and environmen-income in the form of taxes. Project, Global Challenges Index, tally compatible operations.SCA’s community involvement Vigeo, Orange SeNSe Fund and OMX GES Nordic Sustainability • Solid, long-term businesscontributes positively to the local Index are examples of other relationships.communities. SCA’s operationsin emerging markets help these indexes and funds in which SCA is • Contribute to economic development in emerging markets. This is SCA 35
    • Environmental responsibility SCA endeavours to minimise its environmental footprint to the greatest possible extent. The emphasis in the environmental work is on climate and energy, responsible use of wood raw material and water. Climate and energy ardship Council (FSC), the most paper. Accordingly, two water SCA is an energy intensive com- stringent international standard for targets were introduced in 2005. pany and major investments are forest management. SCA is one of The water target was concluded required to achieve the Group’s the world’s largest suppliers of in 2010 and work is under way carbon dioxide target. SCA works FSC-certified products. All of the to develop new targets for SCA’s systematically to replace coal and timber supplied to SCA’s pulp and water management. oil with natural gas and biofuel. paper mills and sawmills is FSC ESAVE is SCA’s energy effi- certified or meets the FSC criteria ciency programme. Since its for controlled wood. launch in 2003, more than 1,300 The level of growth in SCA’s projects have been carried out, forests exceeds the harvesting rate Our environmental agenda resulting in accumulated saving by 20%, which means that SCA’s effects of 700 GWh of electricity forests absorb a net amount of • Reduce carbon emissions and 1,400 GWh of heat on an 2.6 million tonnes of carbon dioxide from own use of fossil annual basis. In financial terms, per annum. This corresponds to the fuels and from purchased this corresponds to approximately total amount of carbon emissions electricity and heat. SEK 600m in annual savings. generated by all of the Group’s • Control sources of all fresh production facilities. fibre-based raw material. Responsible use of wood • Reduce water usage in raw material Systematic work to areas with water scarcity. SCA’s own forest holding is enhance water usage • Ensure high quality of certified in accordance with the SCA uses large volumes of water wastewater. requirements of the Forest Stew- in the manufacture of pulp and36 This is SCA
    • Social responsibilitySCA activities in the field of corporate social responsibilityare an important part of corporate sustainability.Its work is based on the Code audit unit. Since 2005, SCA has responsible conditions in its ownof Conduct, which provides the conducted evaluations of the operations and sets correspond-basis for SCA’s approach to such Code of Conduct, including ing requirements for suppliers andissues as health and safety, human rights, at facilities in other business partners.employee relations, human rights, countries where an elevated riskbusiness ethics and community is assessed to exist. In 2010, theinvolvement. process was updated for evalua- tions of the Code of Conduct andSCA’s Code of Conduct in December, an initial evaluationSCA is committed to ensuring was conducted in Mexico accord-compliance with the Code of ing to the new guidelines. Our social agendaConduct and policies in all its • Strong focus on healthoperations throughout the world. Supplier evaluation and safety.This is achieved through regular In 2010, a new global supplierreviews and follow-up of non- standard was developed for • Ensure human rightscompliance with the Code. In SCA’s hygiene business based compliance.2010, a total of eight cases of on the previous supplier standard. • Prevent corruptionnon-compliance with the Code Compliance with SCA’s values and bribes.of Conduct were reported. and ethical principles is an impor- • Assessment of suppliers. Business Practice Reviews are tant part of the standard. SCA • Recruit, retain and developused to monitor compliance with sets high standards for socially employees with the rightbusiness ethics and are regularly skills.carried out by the SCA internal This is SCA 37
    • Employees SCA has 45,000 employees in 60 countries. The Group has operations in countries with widely differing conditions and regulations relating to the working environment. Shared values A living Code of Conduct SCA’s three core values Respect, SCA has produced its Code of Responsibility and Excellence, Conduct based on the Group’s form the basis for how the Group three core values. The Code conducts business and advances serves as a tool enabling opera- the operation – with a strong tions to be conducted in accord- of Conduct focus on environmental and ance with ethical principles, appli- SCA Code social responsibility. These cable legislation and regulations. values unite all 45,000 employees The Code of Conduct is an inte- at SCA under a shared set of gral part of the way the company Code of Conduct beliefs that form the basis for does business. leadership and employeeship. The Code provides guidelines The Code of Conduct is avail- Respect and responsibility for SCA and its employees regard- able in 19 languages and is for people and the environment ing health and safety, human based on SCA’s core values of involves continuously developing rights, business ethics, employee “Respect, Responsibility and operations in a sustainable and relations and community involve- Excellence,” and a number responsible manner. The pursuit ment. Ensuring that the Code of internationally accepted of excellence provides inspiration of Conduct is a living document declarations and conventions, to renew and improve products throughout the Group requires including the UN’s declaration and solutions in order to generate continuous efforts to reinforce on human rights, ILO’s core increased added value for all of and rebuild awareness of its conventions and the OECD’s SCA’s customers, consumers and principles. guidelines for multinational other stakeholders. companies.38 This is SCA
    • Employer awards and ratingsBelow are some examples of recognition we’ve receivedfrom outside groups for being a model employer. Top Arbeitgeber 2011 On March 10th, the international research company CRF Institute awarded SCA’s hygiene business with the title Top Arbeitgeber 2011 for its outstanding and modern personnel management. For the fourth time in a row, SCA was able to qualify for the title as one of 101 companies. SCA particu- larly impressed in the areas of career opportunities as well as in additional employer benefits and work-life balance. Universum Ideal Employer 2011 (Sweden) In 2011 SCA conquered again rank 7 in Universums sur- vey "Sveriges bästa arbetsgivare", where employees rated their employers. Top Workplace 2011 (USA) SCA’s Philadelphia employees participated in a workplace survey conducted by Workplace Dynamics LCC, the Phila- delphia Inquirer and Philadelphia Daily News. We are proud to announce that SCA has been named as one of the Top Workplaces in the survey. Súper Empresas 2010 (Mexico) SCA is represented on rank 11 in CNN Expansións list Súper Empresas 2010 with Mexicos most popular employers. This is SCA 39
    • Key figures 2010 2009 SEK EUR SEK EUR Net sales, SEKm/EURm 109,142 11,450 110,857 10,466 Operating profit, SEKm/EURm 8,677 911 8,190 773 1) Operating profit , SEKm/EURm 9,608 1,008 9,648 910 Operating margin, % 8 7 Operating margin, %1) 9 9 Profit before tax, SEKm/EURm 7,561 794 6,546 618 1) Profit before tax , SEKm/EURm 8,492 891 8,004 755 Profit for the year, SEKm/EURm 5,592 587 4,830 456 1) Profit for the year , SEKm/EURm 6,281 659 5,906 557 Earnings per share, SEK 7.90 6.78 1) Earnings per share , SEK 8.89 8.32 Cash flow from current operations per share, SEK 10.53 16.36 Dividend, SEK 4.00 3.70 Strategic investments, incl. acquisitions, SEKm/EURm –2,920 –306 –3,082 –291 Equity, SEKm/EURm 67,821 7,538 67,906 6,577 Return on capital employed, % 8 7 1) Return on capital employed, % 9 9 Return on equity, % 8 7 1) Return on equity, % 9 9 Debt/equity ratio, multiple 0.51 0.60 Average number of employees 45,341 49,531 1) Excluding items affecting comparability.40 This is SCA
    • SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ)PO Box 200, SE-101 23 STOCKHOLM, Sweden. Visiting address: Klarabergsviadukten 63Tel +46 8 788 51 00, fax +46 8 788 53 80 Corp. Reg. No.: 556012-6293 www.sca.com, info@sca.comOPERATIONSGHC (Global Hygiene Category) SCA Tissue Europe and SCA Packaging EuropeSE-405 03 GOTHENBURG SCA Personal Care Europe Culliganlaan 1 DSweden München Airport Center (MAC) BE-1831 DIEGEMVisiting address: Postfach 241540 BelgiumBäckstensgatan 5, Mölndal DE-85336 MÜNCHEN-FLUGHAFEN Tel + 32 2 718 3711Tel + 46 31 746 00 00 Germany Fax + 32 2 715 4815 Visiting address: Terminalstrasse Mitte 18 Tel + 49 89 9 70 06-0 Fax + 49 89 9 70 06-204SCA Forest Products SCA Americas SCA Asia PacificSE-851 88 SUNDSVALL Cira Centre Unit 516, 159 Madang RoadSweden Suite 2600 Xintiandi, Luwan DistrictVisiting address: 2929 Arch Street SHANGHAI 200020Skepparplatsen 1 PHILADELPHIA, PA 19104 ChinaTel + 46 60 19 30 00 USA Tel + 86 21 6135 7288 + 46 60 19 40 00 Tel + 1 610 499 3700 Fax + 86 21 6135 7264Fax + 46 60 19 33 21 Fax + 1 610 499 3402 The emission of green house gases from the production C ECOL AB DI R of this printed product including paper, other materials, EL NO and transports has been offset by investment in the 341 123 corresponding amount of certified reduction units from ER PR IN T the CDM project Gayatri Agro Industrial Power Limited. TE D M ATThis report is produced by SCA in cooperation with Hallvarsson & Halvarsson. Photo: Peter Hoelstad, Håkan Lindgren and Juliana Yondt. Print: Elanders in Falköping 2011.
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