SCA presentation at the ABG SC Consumer Goods Seminar, Stockholm, Sweden

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SCA was represented by Johan Karlsson, Vice President, Investor Relations.

http://www.sca.com/ir

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SCA presentation at the ABG SC Consumer Goods Seminar, Stockholm, Sweden

  1. 1. ABG SCConsumer goods seminar 2011Johan Karlsson, Vice President Investor relations 29 March 2011
  2. 2. SCA GroupA global hygiene products and paper company Net sales SEK 109bn 45,000 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 company2 29 March 2011
  3. 3. SCA GroupHygiene business is growing % of net sales 100% 80% 54% 42% 60% 40% 58% 20% 46% 0% 2000 2000 2010 2010 Packaging and Hygiene products Forest Products3 29 March 2011
  4. 4. SCA Group Sales and EBIT split 2010EBIT split EBIT split Forest Products Sales split Personal Care 25% 29% 15% 22% 27% 36% 16% 30% Packaging Tissue 4 29 March 2011
  5. 5. Leading market positions Global and regional Nordic region Incontinence care: 1 Baby diapers: 1North America AFH tissue: 1AFH tissue: 3 Consumer tissue: 2Incontinence care: 3 Europe Tissue: 1 Corrugated board: 2Mexico Baby diapers: 3Incontinence care: 1 Incontinence care: 1Tissue: 2 Privately owned forests: 1Feminine care: 3Baby: 3 Global Incontinence care: 1 Colombia AFH tissue: 3 Australia Incontinence care: 1 Feminine care: 1 Feminine care: 1 Tissue: 1 Incontinence care: 1 Tissue: 2 5 29 March 2011
  6. 6. SCA Group Strategic Priorities  Cost reductions in all  Efficiency programs in  Personal Care  SCA Group 5%* business areas of Packaging and Forest  Thin baby diaper SEK 1bn Products  Personal Care 2%**  TENA Ultra thins  Emerging markets 10%**  Cash flow from  Closure/Divestment  Strong TENA value current operations: of 18 packaging units assortment  Tissue 2%** SEK 7.4bn  Emerging markets 6%**  Supply chain  Tissue excellence and asset  Tork Xpressnap  Packaging 20%* utilization programs in Café Tissue Europe  Tork Performance  Forest Products 3%**  Tempo ice  Restructuring program in Baby diapers in  Packaging Europe  Trueflo  New tissue plant in  ZeoCool Mexico  Forest Products  New Personal Care  Increased value plant in Russia added*Adjusted for exchange rate movements, divestments and closures* *Adjusted for exchange rate movements 6 29 March 2011
  7. 7. Increased pace of innovationStrengthens market positions7 29 March 2011
  8. 8. Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/yearPenetrationin maturemarketsaround 35% North America Western Europe Eastern Europe Latin America Asia 8 29 March 2011
  9. 9. GrowthSCA’s growth markets Latin America  Strong SCA positions South East Asia  Good market growth  Favourable socio-demographics Eastern Europe /Russia  Joint venture Middle East  Good market growth  Favourable socio-demographics China  Incontinence care products9 29 March 2011
  10. 10. Personal care Initiatives 2010  Restructuring program in baby diapers in Europe  Annual savings of EUR 15m with full effect in Q3 2011  Investment in local production in Russia  Acquisition of Copamex baby diapers business  No. 3 in Mexico Feminine care Incontinence care  Growth 17% 56%  TENA has increased market share  Incontinence care products in China expanded  Feminine care products launched in Malaysia and tampons in Sweden and the Netherlands  Extended range of Libero baby care products  Emerging market sales increased 10%* Baby diapers 27%  Innovation  TENA Ultra thins  Thin baby diaper  Strong TENA value assortment Net sales 2010:* Adjusted for exchange rate movements SEK 25bn 10 29 March 2011 23 november 2010
  11. 11. TENA A true success story Annual sales growth 1990-2010: 9%Emerging markets EURm North DesignAmerica 1,400 Internet 1,200 TVSouth 1,000Europe Retail 800 Reimbursement 600 NorthEurope 400 200 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 New products & services 11 29 March 2011
  12. 12. Tissue Initiatives 2010  Implementation of price increases Consumer tissue  Investment in new tissue plant in Mexico AFH-tissue 38% 62%  European brand migration project  Growth  Tork has gained market share in Europe and North America  Emerging market sales increased 6%*  Innovation  Tork Xpressnap Café  Tork Performance  Tempo Ice  Tempo Kids  Tempo toilet tissue Net sales 2010: SEK 40 bn* Adjusted for exchange rate movements 12 29 March 2011 23 november 2010
  13. 13. Full year 2010 vs. 2009 SCA market update  Hygiene business  Good volume growth in Incontinence care, Feminine care and AFH tissue  Good sales growth in Emerging markets  Personal Care 10%*  Tissue 6%*  Packaging and Forest Products  Increased demand for Packaging • Corrugated volumes increased 5% • Corrugated prices increased 6%  Publication paper volumes increased 3%  Solid-wood product volumes increased 8%  Significantly increased raw material prices  Raw material costs increased SEK 5.2bn  Stronger SEK to other currencies  Negative sales impact of SEK 7.2bn equivalent to 6%* Adjusted for exchange rate movements 13 29 March 2011
  14. 14. SCA GroupDescription of costs 2010 SCA GROUP Sales and administration expenses 15% Energy 6% Transport and distribution expenses 12% Other costs of goods sold 30% Raw materials and consumables 37% 100% Of which: 11% Pulp 8% Recovered paper 7% Paper 5% Timber/chips 3% Super absorbents 2% Non-woven 1% Other 11% 37% Total operating expenses: SEK 99,645m14 29 March 2011
  15. 15. High raw material prices NBSK pulp Feb 2010 – USD 840 OCC Feb 2010 – EUR 89 Feb 2011 – USD 949 Feb 2011 – EUR 135 USD/metric ton USD/Metric tonne10251000 EUR / ton EUR/t 975 150 950 925 900 875 130 850 825 800 110 775 750 725 700 90 675 650 625 600 70 575 550 525 500 50 475 450 425 400 30 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 NBSK PIX Value OCC PIX Dec 2009 – USD 277 Jan 2010 – EUR 0.30 Recovered paper - USA Dec 2010 – USD 310 Oil based materials 1,75 EUR/Kg Jan 2011 – EUR 0.41 USD/short ton450 USD/short ton 1,50 EUR / kg400 1,25350300 1,00250 0,75200 0,50150100 0,25 50 0,00 0 jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10 jan-11 -93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 Polyethylene (PE) Bags, backsheet, pack.film Propylene (Contract fd) Superabsorbent High grade deinking OCC Oil (eur/kg) Polypropylene (PP homo) NW, Fibres15 29 March 2011 23 november 2010
  16. 16. Full year 2010 resultsSEKm Change, Change, unless otherwise stated 2010 2009 % %**Net sales 109,142 110,857 -2 5***EBIT* 9,608 9,648 0 4EBIT margin* (%) 8.8 8.7Profit before tax* 8,492 8,004 6 10Earnings per share (SEK) 7.90 6.78 17Cash flow from current operations 7,399 11,490 -36Debt/Equity ratio 0.51 0.60* Excluding restructuring cost** Adjusted for exchange rate movements*** Adjusted for exchange rate movements and divestments16 29 March 2011
  17. 17. Net debtAnd debt payment capacity SEKm Net debt decreased SEK 6 bn % 50 000 50 36% 40% 40 000 40 33% 35% 33% 30 000 30 20 000 20 10 000 10 0 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Net debt Debt payment capacity17 29 March 2011
  18. 18. Dividend  Proposed 8% increase of the dividend to SEK 4.00 (3.70) per share18 29 March 2011
  19. 19. Outlook 2011 Good demand for all businesses Good growth in Emerging markets for Hygiene businesses Continued high raw material costs Increasing corrugated prices Price increases on publication papers19 29 March 2011
  20. 20. Q&A20 29 March 2011
  21. 21. IR Contacts: Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor Relations Tel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: ir@sca.com Website: www.sca.com21 29 March 2011

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