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UBS conferenceLennart Persson, CFO
Net sales of SEK 91bn* 37,000 employees Sales in more than 100 countries Leading global hygiene company #1 or #2 positions in close to 80 countries Strong brands;
TEN and Tork are leading global billion-euro brands for Incontinence care and AFH tissue
Europe’s largest private forest owner Europe’s second-largest sawmill company Several of the world’s most prestigious
sustainability awards2 November 2012
SCA Group
* 2011 sales adjusted for closed transactions
November 2012
Divestment of the Packaging business, excluding the two kraftliner mills Acquisition of Georgia-Pacific’s European tissue operations Acquisitions in emerging markets
Everbeauty in Asia Pro Descart in Brazil San Saglik and Komili(50%) in Turkey
Joint venture in Australia/New Zealand Divestment of Aylesford Newsprint Efficiency program Leadership and culture
Transforming SCA
3
SCA Group9 months 2012 sales and EBIT by Business Area
November 2012
Forest Products
Tissue
Personal Care
48%
22%30%
Sales by Business Area
Forest Products
Tissue
Personal Care
49%
16%35%
EBIT by Business Area
4
5
SCA GroupSales by Product Category
November 2012
Feminine care
Baby diapers73% branded
Incontinence products
31%
15%
54%
Personal Care
AFH tissue
Consumer tissue52% branded
38%62%
Tissue
6
46% 60%
40%54%
~20%*
~80%*
SCA GroupHygiene business is growing
% of net sales
Forest Products and Packaging
Hygiene products(Personal Care and Tissue)
November 2012
Leading Market positions Globally and regionally
North America
Incontinence products:AFH tissue:
23
Mexico
Incontinence products: 1
Feminine care: 1
Consumer tissue 2
AFH tissue: 3
Baby diapers: 3
Colombia
Incontinence products: 1
Feminine care: 1
Tissue: 1
Baby diapers 2
Nordic region
Incontinence products: 1
Baby diapers: 1
AFH tissue: 1
Consumer tissue: 2
Feminine care 2
Europe
Tissue: 1
Incontinence products 1
Baby diapers: 3
Feminine care 3
Private forest owners: 1
Solid-wood products: 2
Asia
Incontinence products: 1Globally
Incontinence products: 1
AFH tissue: 1
Consumer tissue: 2
November 2012
Value market positions
7
November 2012
SCA Group’s Priorities
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
8
November 2012
EfficiencyRestructuring program in baby diapers
in Europe completed2011 Efficiency program
Annual cost saving: EUR 80m Higher machine efficiency and reduced CAPEX
Cost and productivity program Annual cost saving: EUR 300m
Georgia-Pacific synergies Annual cost saving: EUR 125m
Energy efficiency program Annual cost saving: EUR 70m
Efficiency improvements in Forest Products Investments in upgrades and new capacity9
November 2012
Total annual cost savings: EUR 300mRelated restructuring costs: EUR 100mHeadcount reduction: approx. 1,500
Manufacturing
Sourcing
Logistics 12%
43%6%
39%
SG&A
Manufacturing Blueprint implementation Asset utilization improvements Best practice sharing
Sourcing World-class sourcing processes Leverage global scale Consolidation of suppliers
Logistics Optimize warehouse footprint Lower transportation costs Working capital management
SG&A Fewer layers in the organization Clear roles and responsibilities, no overlaps Center-led support model
Cost savings
* Excluding Georgia-Pacific acquisition
Cost and Productivity program*Key actions
10
November 201211
Georgia-Pacific AcquisitionStrengthens our no.1 position
Perfect strategic fit
Substantial synergies
Strengthens our geographic presence in Europe
Strong innovation portfolio
Strengthens our branded portfolio
Georgia-Pacific AcquisitionSynergies
Cost synergies
Supply chainSales and Marketing
Support and overhead
25%
60%15%
Supply chain synergies Manufacturing excellence and best
practice Footprint optimization Scale effects raw materials Logistics optimization
Sales and Marketing S&M organization consolidation
A&P efficiencySupport and overhead
Consolidation of support functions
November 2012
Cost synergies
Total annual cost synergies: EUR 125mRelated restructuring costs: EUR 130m
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Meet changing demands and requirements
Create long-term, profitable differentiation
Strengthen market positions
Build stronger brands
Drive growth
November 2012
Innovation drives Profitable growthStrengthens market positions and profitability
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November 2012
Global population growth
An aging population
Increased market penetration
Higher disposable income
Customers and consumers demand more comfort and sustainability
Market DriversGood growth opportunities
14
November 2012
2010 2017
Personal CareTissue
Global Hygiene Products MarketIncreased penetration and aging and growing population
15
November 2012
Western Europe Eastern Europe Latin America AsiaNorth America
Usage of Hygiene products
Units/capita/year Units/child/year Units/woman/year Kg/capita/year
Hygiene ProductsHigh potential in markets with low penetration
16
37%
Mature markets
Emerging markets
% of Personal Care sales**
Q3 2012 Emerging markets sales growth:
Personal Care: +26%*
Tissue: +20%*
GrowthHigh growth in Emerging markets
* Adjusted for exchange rate movements** Q3 2012
16%
Mature markets
% of Tissue sales**
Emerging markets
November 201217
Mature markets Improve profitability Increased cash flow
generation Strengthen market
positions Category expansion
Established emerging markets Profitable growth Strengthen market
positions Category expansion
SCA’s Market Priority
Not-present emerging markets Selected entry
November 201218
Financial Targets
November 2012
* Annual organic sales growth** Return on capital employed
Sales growth* ROCE**Personal Care 5-7% 30%Tissue 3-4% 15%Forest Products in line with market in top quartile
Group
Business areas
ROCE** 13%Debt/Equity 0.70Debt payment capacity above 35%
Dividend policy 1/3 of cash flow from current operations
19
Johan Karlsson, VP Investor RelationsTel: +46 8 788 51 30
Louise Tjeder, Director Investor RelationsTel: +46 8 788 51 62
IR Contacts:
Email: [email protected] Website: www.sca.com
