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SCA Presentation Q1 report 2016

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Through continued focus on our strategic priorities profitable growth, innovation and efficiency, we delivered favorable organic sales and earnings growth for the first quarter of 2016.

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SCA Presentation Q1 report 2016

  1. 1. Interim Report Q1 2016
  2. 2. Magnus Groth President and CEO April 28, 2016 Interim Report Q1 2016 2
  3. 3. April 28, 2016 Interim Report Q1 2016 3 Summary Q1 2016 Good organic growth in sales and operating profit Strong organic sales growth in emerging markets Strong cash flow Good contribution from efficiency gains Introduced 10 innovations For example Libero, Libresse, Lotus, TENA and Tork Completed the acquisition of Wausau Paper Corp. on January 21 Divestment of business in South East Asia, Taiwan and South Korea for integration with Vinda closed on April 1
  4. 4. Group Q1 2016 vs. Q1 2015 April 28, 2016 Interim Report Q1 2016 4 Organic Sales Growth Operating Profit* Operating Margin* Operating Cash FlowEPS Sales SEK 28,177m +1% * Excluding items affecting comparability ** Excluding items affecting comparability, currency translation effects, acquisitions and divestments SEK 3,247m +13%** 11.5% +120bp SEK 2.74 13% SEK 2,735m +40% 3%
  5. 5. April 28, 2016 Interim Report Q1 2016 5 *Return on capital employed excluding items affecting comparability SCA Group ROCE* Q1 2015 Q1 2016 Target 13% ROCE* 10.4% 11.9%
  6. 6. Innovations Q1 2016 April 28, 2016 Interim Report Q1 2016 6 Libresse liners with ProSkin Formula Libresse upgrades its full premium liners range with the new ProSkin formula that not only protects the underwear, but also cares for women’s sensitive intimate skin Upgrade of premium assortment of Ultra-Thin towels in Europe and MEIA, with New Triple Protection Design, building on our unique SecureFit™ proposition of performance through superior fit and absorption for great comfort and security Feminine Ultra-Thin towels Libero Comfort range is improved with a new super soft anti-leakage barrier Libero Comfort Libero Newborn Premium assortment of Libero diapers, Newborn range open diapers
  7. 7. Innovations Q1 2016 April 28, 2016 Interim Report Q1 2016 7 Tork SmartOne dispenser system for toilet paper is now upgraded and integrated in the well recognized and awarded Tork Elevation design family. The dispensers are now prepared for use with the Tork EasyCube system, expanding our offer in Tork Solutions Tork SmartOne® Lotus® papier toilette humide Premium assortment of Lotus® Moist Toilet Tissue in four different variants TENA Lady Pants A new and unique, underwear-like product. Looks like underwear, feels like cotton Upgrade of the TENA portfolio of liners for better performance and comfort. New lights by TENA light liners are now 5x drier than a regular liner, so you feel fresher and drier every day. lights by TENA®
  8. 8. April 28, 2016 Interim Report Q1 2016 8 Fredrik Rystedt CFO
  9. 9. Net sales Q1 2015 Price/Mix Volume Currency Acquisition Net sales Q1 2016 Organic sales growth 3% Price/Mix +1% Volume +2% April 28, 2016 Interim Report Q1 2016 9 1%SEK 27,958m 2% SEK 28,177m Net Sales Q1 2016 vs. Q1 2015 +1% 2% -4%
  10. 10. Organic Sales Growth April 28, 2016 Interim Report Q1 2016 10 0% 2% 4% 6% 8% 2012 2013 2014 2015 Q1 2016 Group Tissue 0% 2% 4% 6% 8% 2012 2013 2014 2015 Q1 2016 0% 2% 4% 6% 8% 2012 2013 2014 2015 Q1 2016 Personal Care Forest Products -12% -8% -4% 0% 4% 8% 12% 2012 2013 2014 2015 Q1 2016
  11. 11. Operating Profit Q1 2015 Price/Mix Volume Raw Material Energy Currency Acquisition Other Operating Profit Q1 2016 April 28, 2016 Interim Report Q1 2016 11 SEK 102m SEK 2,872m SEK 3,247m Operating Profit* – Group Q1 2016 vs. Q1 2015 +13% SEK 356m SEK -144m SEK 158m SEK -81m SEK 78m * Excluding items affecting comparability SEK -94m
  12. 12. Cash Flow Q1 2016 vs. Q1 2015 Operating cash surplus Change in working capital Restructuring costs, etc Capital expenditures (including strategic) Operating cash flow including strategic capital expenditures Q1 2016 SEKm Q1 2015 SEKm 4,414 -721 -220 -1,547 1,926 4,118 -1,028 -227 -1,347 1,516 Interim Report Q1 2016April 28, 2016 12
  13. 13. Items affecting comparability Q1 2016 • Provision related to Colombian competition authorities ongoing investigation of jointly owned Productos Familia S.A., Colombia • Wausau, including revaluation effects pertaining to Wausau’s inventory valuation in connection with the acquisition balance • Other, including transaction costs Total items affecting comparability Q1 2016 SEKm Interim Report Q1 2016April 28, 2016 13 -101 -47 -43 -191
  14. 14. April 28, 2016 Interim Report Q1 2016 14 Magnus Groth President and CEO
  15. 15. Personal Care Q1 2016 vs Q1 2015 April 28, 2016 Interim Report Q1 2016 15 * Excluding items affecting comparability ** Return on capital employed excluding items affecting comparability  Sales growth -2%  Organic sales growth 6%  Operating profit increased 12%*  Higher volumes  Better price/mix  Cost savings  Higher raw material costs  Investments in increased marketing activities in Latin America  Operating margin 11.9%*  ROCE** 28.9% Net Sales Operating Profit* Q1 2016Q1 2015 Q1 2016Q1 2015 Q1 2016Q1 2015 Operating Margin* SEK 8,151mSEK 8,319m SEK 974m SEK 869m 10.4% 11.9%-2% +12% +150bp
  16. 16. Personal Care Q1 2016 vs Q1 2015 April 28, 2016 Interim Report Q1 2016 16  Organic sales growth 6%  Price/mix +1%  Volume +5%  Good growth in mature markets  Strong growth in emerging markets  Strong growth for feminine care  Mature markets  Western Europe - Strong growth for baby diapers - Good growth for feminine care - Higher sales for incontinence products  North America - Slightly lower sales for incontinence products  Emerging markets  Latin America +17% - Strong growth for feminine care and incontinence products - Flat sales for baby diapers  Russia +42% - Strong growth for all product segments  Asia +1% Organic Sales Growth by Region Organic Sales Growth by Product Segment Incontinence Products Baby Diapers Feminine Care TotalMature Markets Emerging Markets Total +4% +6% +2% +18% +4% +8% +6% 52% 28% 20% % of Personal Care Sales: 60% 40%
  17. 17. Tissue Q1 2016 vs Q1 2015 April 28, 2016 Interim Report Q1 2016 17 * Excluding items affecting comparability ** Return on capital employed excluding items affecting comparability  Sales growth 4%  Organic sales growth 4%  Operating profit increased 17%*  Better price/mix  Higher volumes  Cost savings  Lower energy costs  Acquisition  Higher raw material costs  Operating margin 11.3%*  ROCE** 12.6% Net Sales Operating Profit* Q1 2016Q1 2015 Q1 2016Q1 2015 Q1 2016Q1 2015 Operating Margin* SEK 16,114mSEK 15,435m SEK 1,826m SEK 1,556m 10.1% 11.3% +4% +17% +120bp
  18. 18. Tissue Q1 2016 vs Q1 2015 April 28, 2016 Interim Report Q1 2016 18  Organic sales growth 4%  Price/mix +2%  Volume +2%  Strong growth in emerging markets  Good growth for consumer tissue  Mature markets  Western Europe - Flat sales for consumer tissue - Higher sales for AfH tissue  North America - Flat sales for AfH tissue  Emerging markets  Asia +16%  Latin America +8%  Russia +18% Organic Sales Growth by Region Organic Sales Growth by Product Segment Consumer Tissue AfH Tissue TotalMature Markets Emerging Markets Total +4% 0% +12% +4% 63%% of Tissue Sales: 37%69% 31% +5% +3%
  19. 19. Forest Products Q1 2016 vs Q1 2015 April 28, 2016 Interim Report Q1 2016 19 * Excluding items affecting comparability ** Return on capital employed excluding items affecting comparability Q1 2016  Sales growth -6%  Price/mix -5%  Volume -1%  Operating profit decreased -19%*  Lower prices (including exchange rate effects)  Lower volumes  Higher raw material costs  Lower energy costs  Operating margin 13.5%*  ROCE** 5.8% Net Sales Operating Profit* Q1 2016Q1 2015 Q1 2016Q1 2015 Q1 2015 Operating Margin* SEK 4,316m SEK 4,055m SEK 678m 15.7% 13.5% SEK 548m -6% -19% -220bp
  20. 20. April 28, 2016 Interim Report Q1 2016 20 80 85 90 95 100 105 2014 Q1 2016 Q1 Price index in SEK Price index in local currency 80 90 100 110 120 130 2014 Q1 2016 Q1 Price index in SEK Price index in USD 90 95 100 105 110 115 2014 Q1 2016 Q1 Price index in SEK Price index in local currency 90 95 100 105 110 2014 Q1 2016 Q1 Price index in SEK Price index in local currency Publication Papers Kraftliner NBSK Pulp Solid Wood Products Forest Products Price Development Q1 2014 Q1 2015 Q1 2016 Q1 2014 Q1 2015 Q1 2016 Q1 2014 Q1 2015 Q1 2016 Q1 2014 Q1 2015 Q1 2016
  21. 21. April 28, 2016 Interim Report Q1 2016 21 Summary Q1 2016 Good organic growth in sales and operating profit Strong organic sales growth in emerging markets Strong cash flow Good contribution from efficiency gains Introduced 10 innovations For example Libero, Libresse, Lotus, TENA and Tork Completed the acquisition of Wausau Paper Corp. on January 21 Divestment of business in South East Asia, Taiwan and South Korea for integration with Vinda closed on April 1
  22. 22. April 28, 2016 Interim Report Q1 2016 22 Q&A

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