SCA's presentation from the ABG Consumer Seminar in Stockholm


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SCA's presentation from the ABG Consumer Seminar in Stockholm March 21 2012, held by Mats Berencreutz, Executive Vice President.

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SCA's presentation from the ABG Consumer Seminar in Stockholm

  1. 1. ABG Consumer SeminarMats Berencreutz, Executive Vice President
  2. 2. SCA GroupA global hygiene products and paper company Net sales SEK 106bn 44,000 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 company** In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested2 21 March 2012
  3. 3. SCA GroupNet sales 2011 Forest Products Net sales Personal Care 16% 23% 25% 36% Packaging* Tissue* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested3 21 March 2012
  4. 4. SCA GroupHygiene business is growing % of net sales ~20%* 54% 40% 46% 60% ~80%* Forest Products and Hygiene products Packaging (Personal Care and Tissue)* Provided that the Packaging divestment and the acquisition of Georgia-Pacific’s European tissue business are closed according to plan.4 21 March 2012
  5. 5. Leading market positions Global and regionalNorth America EuropeAFH tissue: 3 Tissue: 1Incontinence care: 3 Corrugated board: 2 Baby diapers: 3 Incontinence care: 1Mexico Privately owned forests: 1Incontinence care: 1 Solid-wood products: 2Tissue: 2Feminine care: 1Baby diapers: 3 Global Incontinence care: 1 Colombia AFH tissue: 2 Australia Incontinence care: 1 Feminine care: 1 Feminine care: 1 Tissue: 1 Incontinence care: 1 Tissue: 2 5 21 March 2012
  6. 6. Strong global and regional brandsTwo global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America6 21 March 2012
  7. 7. Key events Acquisition of Georgia-Pacific’s European tissue operations Divestment of the Packaging business, excluding the two kraftliner mills Acquisitions in emerging markets Binding offer to acquire Asian hygiene products company Established joint venture in Australasia Efficiency program New hygiene organization Wind power joint venture with Fred.Olsen Renewables7 21 March 2012
  8. 8. Acquisition of Georgia-Pacific’sEuropean tissue operations Creates a leading European tissue company Strengthens our product offering and geographic reach Offered price: EUR 1.32bn Sales: EUR 1.25bn Annual synergies: EUR 125m With fully realized synergies earnings per share are expected to increase with approx. SEK 1.70 Closing expected in Q2 20128 21 March 2012
  9. 9. Substantial synergies Increased supply chain efficiency  Optimization of logistics  More efficient sourcing Improved SG&A and A&P efficiency  Annual synergies: EUR 125m  Improves Tissue EBIT margins by 2-2.5 percentage points  Full effect in 3 years after closing  Related costs: EUR 130m9 21 March 2012
  10. 10. Enhances SCA’s presenceIn both Consumer tissue and AFH tissue European Consumer tissue market 25% SCA SCA and GP 35% European AFH tissue market SCA and GP SCA 20% 30%10 21 March 2012
  11. 11. Increased share of branded sales In Consumer tissue SCA’s Consumer tissue sales SCA SCA and GP Retailers’ Branded brands BrandedRetailers’ 40% 50% brands 11 21 March 2012
  12. 12. Divestment of PackagingSupports SCA’s strategy Divestment of Packaging to DS Smith Enables increased growth in the hygiene business SCA’s two kraftliner mills in Sweden are not included Purchase price: EUR 1.7bn Sales: SEK 24.4bn Earnings per share decrease by SEK 0.73* Closing is expected in Q2 2012* Based on the net profit for 201112 21 March 2012
  13. 13. Binding offer to acquire EverbeautyLeading Asian personal care company Sales: SEK 1.6bn* Sales split: baby diapers 60% and incontinence products 40% Purchase price: SEK 1.9bn Sales in China, Taiwan and Southeast Asia Strong brands, market positions and distribution • Incontinence care products • No. 2 in China and No. 1 in Taiwan • Baby diapers • No. 5 in China and Taiwan Closing expected during summer 2012* 2010 sales13 21 March 2012
  14. 14. Strategic focus areas14 21 March 2012
  15. 15. Efficiency Restructuring program in baby diapers in Europe finalized Efficiency program  Mainly related to Personal Care and Tissue  Annual cost savings: SEK 700m  Gradual impact during 2012-2013  Annualized savings in Q4 2011: SEK 200m New hygiene organization Investments in new capacity and upgrades15 21 March 2012
  16. 16. InnovationStrengthens market positions and profitability16 21 March 2012
  17. 17. Growth Acquisition of Georgia-Pacific´s European tissue operations High growth in emerging markets Acquisition in Brazil  Pro Descart, No. 2 in incontinence products Acquisitions in Turkey  San Saglik 95%, No. 2 in incontinence products  Komili 50%, No. 4 in baby diapers and feminine care products Binding offer to acquire Asian personal care company New hygiene organization Wind power joint venture with Fred.Olsen Renewables Investments in new capacity and upgrades17 21 March 2012
  18. 18. GrowthGrowth potential for hygiene products Global population growth An aging population Increased market penetration Higher disposable income Customers and consumers demand more comfort and sustainability18 21 March 2012
  19. 19. 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 Asia19 21 March 2012
  20. 20. Growth High growth in Emerging markets 2011 Emerging markets sales growth: Personal Care: +13%* Tissue: +10%* % of Personal Care sales % of Tissue sales Emerging markets 16% Emerging markets 32%Mature markets Mature markets * Adjusted for exchange rate movements 20 21 March 2012
  21. 21. Q&A21 21 March 2012
  22. 22. IR Contacts:Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor RelationsTel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: Website: