SCA Interim Report Q1 2014

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The SCA interim report was published on April 29 at approximately 8.00 CET. At the subsequent press conference CEO Jan Johansson held this presentation.

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SCA Interim Report Q1 2014

  1. 1. SCA Interim Report 1 January – 31 March 2014
  2. 2. Q1 2014 Market update Tissue Relatively stable demand for tissue in Europe Extreme winter weather in North America had a negative impact on demand for AfH tissue Increased demand in emerging markets Personal Care Relatively stable demand for personal care products in Europe Increased demand in emerging markets Forest Products Decreased demand for publication paper in Europe Improved market for solid-wood products in Europe April 29, 2014 SCA Interim Report Q1 2014 2
  3. 3. Efficiency Programs April 29, 2014 SCA Interim Report Q1 2014 3 Hygiene business cost and efficiency program Achieved cost savings Q1 2014: SEK 490m Annualized cost savings in Q1 2014 : approx. EUR 220m Total annual cost savings of EUR 300m, full effect in 2015 Georgia-Pacific synergies Achieved cost savings Q1 2014 : SEK 136m Annualized cost savings in Q1 2014: approx. EUR 60m Total annual cost savings of EUR 125m, full effect in 2016 Forest Products efficiency program Achieved earnings improvement Q1 2014 : SEK 245m Annualized earnings improvement in Q1 2014: SEK 980m Total annual earnings improvement of SEK 1,300m, full effect in 2015
  4. 4. Summary Q1 2014 vs Q1 2013 April 29, 2014 SCA Interim Report Q1 2014 4 * Excluding divestments ** Excluding items affecting comparability, exchange rate effects and divestments Sales increased 9%* Hygiene business, 9%* - Acquisition in China - Higher volumes - Good growth in emerging markets - Extreme winter weather in North America Forest Products, 11%* - Higher prices - Higher volumes Operating profit increased 18%** Acquisition in China Cost savings Higher volumes Higher prices Higher raw material costs Operating cash flow decreased 27%
  5. 5. SEK millions Q1 Q1 unless otherwise stated 2014 2013 Change, % Change, % Net sales 24,234 23,332 4 9** Operating profit* 2,630 2,315 14 18*** Operating margin* (%) 10.9 9.9 Profit before tax* 2,342 2,036 15 19*** Earnings per share (SEK) 2.12 1.59 Operating Cash flow 1,432 1,958 -27 Debt/Equity ratio 0.50 0.50 Q1 2014 Results April 29, 2014 SCA Interim Report Q1 2014 5 * Excluding items affecting comparability and including gains on forest swaps of SEK 152m (121) before tax ** Excluding divestments *** Excluding items affecting comparability, exchange rate effects, divestments and including gains on forest swaps of SEK 152m (121) before tax
  6. 6. Personal Care Q1 2014 vs Q1 2013 Sales decreased 1% (+1%*) Incontinence products increased 1%* Baby diapers decreased 3%* Feminine care increased 11%* Emerging markets increased 4%* Operating profit decreased 6%** Higher raw material costs Investments in increased marketing activities Negative transaction exchange rate effects due to weakened currencies in emerging markets Higher volumes Cost savings April 29, 2014 SCA Interim Report Q1 2014 6 * Excluding exchange rate effects ** Excluding items affecting comparability Q1 2013 Q1 2014 Sales (SEKm) Operating profit** (SEKm) 11.4%Operating margin** 12.0% -1% -6%** Q1 2013 Q1 2014
  7. 7. Tissue Q1 2014 vs Q1 2013 Sales increased 10% (12%*) Consumer tissue increased 17%* AfH tissue increased 7%** Emerging markets increased 73%** Operating profit increased 10%*** (14%****) Acquisition in China Higher volumes Higher prices Cost savings Extreme winter weather in North America Divestments in Europe April 29, 2014 SCA Interim Report Q1 2014 7 * Excluding exchange rate effects and divestments ** Excluding exchange rate effects *** Excluding items affecting comparability **** Excluding items affecting comparability, exchange rate effects and divestments Q1 2013 Q1 2014 Sales (SEKm) Operating profit*** (SEKm) 10.6%Operating margin*** 10.6% 10% 10%*** Q1 2013 Q1 2014
  8. 8. Forest Products Q1 2014 vs Q1 2013 Sales decreased 6% (+11%*) Publication paper decreased Kraftliner increased Solid-wood products increased Pulp increased Operating profit increased 128%** (140%***) Higher prices Higher volumes Cost savings Lower energy costs Gains on forest swaps Divestment April 29, 2014 SCA Interim Report Q1 2014 8 * Excluding divestment ** Excluding items affecting comparability and including gains on forest swaps of SEK 152m (121) before tax *** Excluding items affecting comparability, divestment and including gains on forest swaps of SEK 152m (121) before tax Q1 2013 Q1 2014 Sales (SEKm) Operating profit** (SEKm) 14.7%Operating margin** 6.0% 128%** Q1 2013 Q1 2014 -6%
  9. 9. Summary April 29, 2014 SCA Interim Report Q1 2014 9 Higher sales and profit for the Group Higher profit in Tissue and Forest Products Lower profit in Personal Care Efficiency programs delivering according to plan Several launches of new innovations and products
  10. 10. Q&A April 29, 2014 SCA Interim Report Q1 2014 10

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