Johan Karlsson, Vice President Investor relations
29 March 2011
ABG SC Consumer goods seminar 2011
222
Net sales SEK 109bn
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
SCA GroupA global hygiene products and paper company
29 March 2011
0%
20%
40%
60%
80%
100%
2000 2010
3
% of net sales
Hygiene productsPackaging and Forest Products
46%58%
42%54%
2000 2010
SCA GroupHygiene business is growing
29 March 2011
44
Forest Products
Packaging Tissue
Personal Care
36%27%
15% 22%
SCA GroupSales and EBIT split 2010
29%
30%
25%
16%
Sales splitEBIT splitEBIT split
29 March 2011
5
Leading market positionsGlobal and regional
EuropeTissue: 1Corrugated board: 2Baby diapers: 3Incontinence care: 1Privately owned forests: 1
AustraliaFeminine care: 1Incontinence care: 1Tissue: 2
MexicoIncontinence care: 1Tissue: 2Feminine care: 3Baby: 3 Global
Incontinence care: 1AFH tissue: 3Colombia
Incontinence care: 1Feminine care: 1Tissue: 1
North AmericaAFH tissue: 3Incontinence care: 3
Nordic regionIncontinence care: 1Baby diapers: 1AFH tissue: 1Consumer tissue: 2
29 March 2011
SCA Group Strategic Priorities
6
Cost reductions in all business areas of SEK 1bn
Cash flow from current operations:SEK 7.4bn
Efficiency programs in Packaging and Forest Products Closure/Divestment
of 18 packaging units
Supply chain excellence and asset utilization programs in Tissue Europe
Restructuring program in Baby diapers in Europe
New tissue plant in Mexico
New Personal Care plant in Russia
Personal Care Thin baby diaper TENA Ultra thins Strong TENA value
assortment
Tissue Tork Xpressnap
Café Tork Performance Tempo ice
Packaging Trueflo ZeoCool
Forest Products Increased value
added
SCA Group 5%*
Personal Care 2%** Emerging markets 10%**
Tissue 2%** Emerging markets 6%**
Packaging 20%*
Forest Products 3%**
*Adjusted for exchange rate movements, divestments and closures* *Adjusted for exchange rate movements
29 March 2011
7
Increased pace of innovationStrengthens market positions
29 March 2011
8
GrowthHigh potential in markets with low penetration
Usage of hygiene products
Units/capita/year Units/child/year Units/woman/year
Western Europe Eastern Europe Latin America AsiaNorth America
Kg/capita/year
Penetration in mature markets around 35%
8 29 March 2011
99
Latin America
South East Asia
Eastern Europe /Russia
Strong SCA positions Good market growth Favourable socio-demographics
Joint venture
Good market growth Favourable socio-demographics
Middle East
China Incontinence care products
GrowthSCA’s growth markets
29 March 2011
23 november 201010
Personal careInitiatives 2010
Feminine care 17%
Incontinencecare 56%
Baby diapers27%
29 March 2011
Restructuring program in baby diapers in Europe Annual savings of EUR 15m with full effect
in Q3 2011
Investment in local production in Russia Acquisition of Copamex baby diapers business
No. 3 in Mexico
Growth TENA has increased market share Incontinence care products in China expanded Feminine care products launched in Malaysia and
tampons in Sweden and the Netherlands Extended range of Libero baby care products Emerging market sales increased 10%*
Innovation TENA Ultra thins Thin baby diaper Strong TENA value assortment
* Adjusted for exchange rate movements
Net sales 2010:SEK 25bn
0200400600800
1,0001,2001,400
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
111111
EURm
Newproducts & services
NorthEurope
SouthEurope
NorthAmerica
Emerging markets
Reimbursement
RetailTV
Internet
Design
TENAA true success story
Annual sales growth 1990-2010: 9%
29 March 2011
23 november 201012
TissueInitiatives 2010
Consumertissue 62%
AFH-tissue38%
29 March 2011
Implementation of price increases
Investment in new tissue plant in Mexico
European brand migration project
Growth Tork has gained market share in Europe
and North America Emerging market sales increased 6%*
Innovation Tork Xpressnap Café Tork Performance Tempo Ice Tempo Kids Tempo toilet tissue Net sales 2010:
SEK 40 bn
* Adjusted for exchange rate movements
Hygiene business Good volume growth in Incontinence care, Feminine care and AFH tissue Good sales growth in Emerging markets
Personal Care 10%* Tissue 6%*
Packaging and Forest Products Increased demand for Packaging
• Corrugated volumes increased 5%• Corrugated prices increased 6%
Publication paper volumes increased 3% Solid-wood product volumes increased 8%
Significantly increased raw material prices Raw material costs increased SEK 5.2bn
Stronger SEK to other currencies Negative sales impact of SEK 7.2bn equivalent to 6%
Full year 2010 vs. 2009SCA market update
29 March 2011
* Adjusted for exchange rate movements
13
1414
11%
SCA GroupDescription of costs 2010
29 March 2011
SCA GROUP
Sales and administration expenses 15%Energy 6%Transport and distribution expenses 12%Other costs of goods sold 30%Raw materials and consumables 37%
100%Of which:
Pulp 8%Recovered paper 7%Paper 5%Timber/chips 3%Super absorbents 2%Non-woven 1%Other 11%
37%
Total operating expenses: SEK 99,645m
23 november 201015
0,00
0,25
0,50
0,75
1,00
1,25
1,50
1,75
jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10 jan-11
EUR/Kg
Polyethylene (PE) Bags, backsheet, pack.film Propylene (Contract fd) SuperabsorbentOil (eur/kg) Polypropylene (PP homo) NW, Fibres
30
50
70
90
110
130
150
-00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11OCC PIX
EUR/t
400425450475500525550575600625650675700725750775800825850875900925950975
10001025
-98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11
NBSK PIX Value
USD/Metric tonne
High raw material prices
0
50
100
150
200
250
300
350
400
450
-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10
USD/short ton
High grade deinking OCC
Recovered paper - USA
Feb 2010 – USD 840Feb 2011 – USD 949
Feb 2010 – EUR 89Feb 2011 – EUR 135
Dec 2009 – USD 277Dec 2010 – USD 310
USD/short ton
USD/metric ton EUR / ton
OCC
Oil based materials
NBSK pulp
EUR / kg
Jan 2010 – EUR 0.30Jan 2011 – EUR 0.41
29 March 2011
Full year 2010 results
SEKm Change, Change,
unless otherwise stated 2010 2009 % %**
Net sales 109,142 110,857 -2 5***
EBIT* 9,608 9,648 0 4
EBIT margin* (%) 8.8 8.7
Profit before tax* 8,492 8,004 6 10
Earnings per share (SEK) 7.90 6.78 17
Cash flow from current operations 7,399 11,490 -36
Debt/Equity ratio 0.51 0.60
* Excluding restructuring cost** Adjusted for exchange rate movements*** Adjusted for exchange rate movements and divestments
29 March 201116
1717
Net debtAnd debt payment capacity
%SEKm
0
10
20
30
40
50
0
10 000
20 000
30 000
40 000
50 000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
Net debt Debt payment capacity
35% 33%36%
33%
Net debt decreased SEK 6 bn
40%
29 March 2011
Dividend
29 March 2011
Proposed 8% increase of the dividend to SEK 4.00 (3.70) per share
18
Outlook 2011
29 March 2011
Good demand for all businesses Good growth in Emerging markets for Hygiene businesses Continued high raw material costs Increasing corrugated prices Price increases on publication papers
19
Q & A
29 March 201120
29 March 201121
Johan Karlsson, VP Investor RelationsTel: +46 8 788 51 30
Jessica Ölvestad, Manager Investor RelationsTel: +46 8 788 52 82
IR Contacts:
Email: [email protected] Website: www.sca.com