SCA's presentation from Handelsbanken Conference 120910


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SCA's presentation from Handelsbanken Conference 120910, held by Jan Johansson, President and CEO, SCA.

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SCA's presentation from Handelsbanken Conference 120910

  1. 1. Handelsbanken conferenceJan Johansson, President and CEO
  2. 2. Major changes Divestment of the Packaging business, excluding the two kraftliner mills Acquisition of Georgia-Pacific’s European tissue operations Established joint venture in Australia/New Zealand Acquisition of Everbeauty an Asian hygiene products company Increased shareholding in Vinda Acquisition of PISA in Chile New hygiene organization Acquisition of PLF a French solid-wood products company2 September 2012
  3. 3. Acquisition of Georgia-Pacific’sEuropean tissue operations Creates a leading European tissue company Strengthens SCA’s product offering and geographic presence Sales: EUR 1.25bn Purchase price: EUR 1.32bn Annual synergies: EUR 125m With full implementation of synergies, earnings per share are expected to increase by approximately SEK 1.703 September 2012
  4. 4. SCA Group Net sales of SEK 91bn* 37,000 employees and sales in more than 100 countries World’s second-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s largest private forest owner Europe’s second-largest sawmill company* 2011 sales adjusted for closed transactions4 September 2012
  5. 5. SCA GroupHygiene business is growing % of net sales ~20%* 54% 40% 46% 60% ~80%* Forest Products and Hygiene products Packaging (Personal Care and Tissue)5 September 2012
  6. 6. Leading market positions Globally and regionally Nordic regionNorth America Incontinence products: 1 EuropeAFH tissue: 3 Baby diapers: 1 Tissue: 1Incontinence products: 3 AFH tissue: 1 Solid-wood products: 2 Consumer tissue: 2 Baby diapers: 3Mexico Incontinence products: 1Incontinence products: 1 Private forest owners: 1Consumer tissue: 2AFH tissue: 3 AsiaFeminine care: 1 Incontinence products: 1Baby diapers: 3 GloballyColombia Incontinence products: 1Incontinence products: 1Feminine care: 1 AFH tissue: 1Tissue: 1 Consumer tissue: 2 6 September 2012
  7. 7. SCA Group’s strategic priorities EFFICIENCY INNOVATION GROWTH7 September 2012
  8. 8. Efficiency Restructuring programme in baby diapers in Europe completed Efficiency programme  Mainly related to Personal Care and Tissue  Annual cost saving: SEK 700m  Gradual impact in 2012-2013 Investments in upgrade of existing and new capacity8 September 2012
  9. 9. InnovationStrengthens market positions and profitability9 September 2012
  10. 10. 10 September 2012
  11. 11. Growth Sales growth of 4%* High growth in emerging markets Acquisition of Georgia-Pacific´s European tissue operations Acquisition in Brazil  Pro Descart, No. 2 in incontinence care Acquisition in Turkey  San Saglik 95%, No. 2 in incontinence care  Komili 50%, No. 4 in baby diapers and feminine care Acquisition of Everbeauty an Asian personal care company Continued expansion of wind power opportunities  Ongoing projects totalling 4 TWh* H1 2012 compared with H1 2011, excluding exchange rate movements and divestments11 September 2012
  12. 12. GrowthGrowth potential for hygiene products Global population growth An aging population Increased market penetration Higher disposable income Customers and consumers demand more comfort and sustainability12 September 2012
  13. 13. 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 Asia13 September 2012
  14. 14. Macro updateQ2 2012 Global economy and private consumption to slow in 2012  Debt crisis in parts of Western Europe has a negative impact  Emerging markets shows relatively good growth Hygiene products  Good growth in Emerging markets  Low or no growth in Western Europe and North America Forest products  Lower European demand and unacceptably low prices in publication paper  Continued weak demand and unsatisfactory low prices in solid-wood products  Price increases for Kraftliner during Q214 September 2012
  15. 15. Q2 2012 resultsSEK millions Q2 Q2 Change, Change, unless otherwise stated 2012 2011 % %**Net sales 20,273 20,415 -1 2EBIT* 2,105 1,810 16 16EBIT margin* (%) 10.4 8.9Profit before tax* 1,789 1,527 17Earnings per share (SEK) 1.85 1.96Operating cash flow 2,391 1,868Debt/Equity ratio 0.41 0.55* Excluding items affecting comparability** Excluding exchange rate movements, and divestments15 September 2012
  16. 16. Key reasons to invest in SCA Transformation story Strong product portfolio Good growth opportunities Profitability improvement potential Good dividend yield16 September 2012
  17. 17. Q&A17 September 2012
  18. 18. IR Contacts: Johan Karlsson, VP Investor Relations Tel: +46 8 788 51 30Email: Website: