SCA Morgan Stanley Consumer Goods, New York
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Morgan Stanley conference. Jan Johansson, President and CEO of SCA, provided an overview of the company. SCA is one of the world's largest hygiene products companies, with net sales of SEK 111 billion and 45,000 employees globally. Their hygiene business has grown significantly, now making up 60% of net sales compared to 42% in 1999. SCA has leading market positions globally and regionally within tissue, incontinence care, baby diapers, and feminine care. They outlined their strategic focus on growth in emerging markets and increased innovation to strengthen their market positions.
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SCA Morgan Stanley Consumer Goods, New York
- 1. Morgan Stanley conference Jan Johansson, President and CEO 16 November 2010
- 2. SCA leading one of three hygiene companies worldwide 2 16 November 2010
- 3. SCA Group A global hygiene products and paper company Net sales SEK 111bn 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 company 3 16 November 2010
- 4. SCA Group Hygiene business is growing % of net sales 100% 80% 40% 58% 60% 40% 60% 20% 42% 0% 1999 1997 2009 2008 09 Packaging and Hygiene products Forest Products 4 16 November 2010
- 5. SCA Group Sales and EBIT split first nine months 2010 EBIT split EBIT split Forest Products Sales split Personal Care 25% 30% 15% 22% 27% 36% 14% 31% Packaging Tissue 5 16 November 2010
- 6. Leading market positions Global and regional Nordic region Incontinence care: 1 Baby diapers: 1 North America AFH tissue: 1 AFH tissue: 3 Consumer tissue: 2 Incontinence care: 3 Europe Tissue: 1 Corrugated board: 2 Mexico Baby diapers: 3 Incontinence care: 1 Incontinence care: 1 Tissue: 2 Privately owned forests: 1 Feminine care: 3 Baby: 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 6 16 November 2010
- 7. SCA Group Strategic Direction 7 16 November 2010
- 8. Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year Penetration in mature markets around 35% North America Western Europe Eastern Europe Latin America Asia 8 16 November 2010
- 9. Our growth markets Strong SCA positions Good market growth Favourable socio-demographics Joint venture Good market growth Favourable socio-demographics Market tests of Incontinence care products 9 16 November 2010
- 10. Increased pace of innovation Strengthens market positions 10 16 November 2010
- 11. Hygiene business Sales split first nine months 2010 Away-From- Incontinence Home tissue care 24% 21% Baby 10% 11% diapers 7% 38% Consumer tissue Feminine care 11 16 November 2010
- 12. Hygiene business Strategic focus Strengthen leading positions Maintain Tena leadership in premium segment and increase growth in economy segment Drive innovation Increase value added and branded Grow in prioritized Emerging markets Increased share of no.1 and no.2 positions Improve profitability in Consumer tissue and Baby diapers 12 16 November 2010
- 13. Q3 2010 vs Q3 2009 SCA market update Significantly increased raw material prices Pulp, OCC, recovered paper Raw material costs increased SEK 1.8bn Stronger SEK to other currencies Negative sales impact of SEK 1.5bn equivalent to 6% Hygiene business Good growth for Incontinence care, Feminine care and AFH tissue Continued good growth in emerging markets Packaging and Forest Products Increased demand for Packaging • Corrugated volumes increased 4% Publication paper volumes flat Increased volumes for solid-wood products and pulp 13 16 November 2010
- 14. Q3 2010 results SEK millions Q3 Q3 Change, Change, Q2 unless otherwise stated 2010 2009 Q3/Q3,%* Q3/Q3,%** 2010 Net sales 27,204 27,108 0 6 27,652 EBIT* 2,574 2,576 0 2 2,440 EBIT margin* (%) 9.5 9.5 8.8 Profit before tax* 2,274 2,199 3 2,196 Earnings per share (SEK) 1.95 1.82 7 2.04 Cash flow from current operations 2,194 4,259 1,668 * Excluding restructuring cost ** Adjusted for exchange rate movements 14 16 November 2010
- 15. Outlook 2010 Hygiene businesses Good demand Seasonally weaker demand in Q4 for AFH tissue North America Full impact in Q4 of price increases in Tissue Packaging Seasonally weaker demand in Q4 Increasing prices Forest Products Good demand 15 16 November 2010
- 16. Q&A 16 16 November 2010
- 17. 17 16 November 2010