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Deutsche Bank Global Consumer ConferenceLennart Persson, CFOMats Berencreutz, COO Hygiene Businesses
14 June 2011
2
HeadingSubheading
14 June 2011
SCA world’s third largesthygienecompany
333
Net sales SEK 107bn
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
14 June 2011
44444
Forest Products
Packaging Tissue
Personal Care
36%24%
16% 24%
SCA GroupSales and EBIT split 2010
29%
30%
25%
16%
Sales splitEBIT splitEBIT split
14 June 2011
0%
20%
40%
60%
80%
100%
2000 2010
5
% of net sales
Hygiene productsPackaging and Forest Products
46%60%
40%54%
2000 2010
SCA GroupHygiene business is growing
14 June 2011
6
HeadingSubheading
14 June 2011
SCAsupplies every
2nd napkinto North American restaurants
7 14 June 2011
North America
AFH Tissue: 3
Incontinence care: 3
Mexico
Incontinence care: 1
Tissue: 2
Feminine care: 3
Baby diapers: 3
Colombia
Incontinence care: 1
Feminine care: 1
Tissue: 1
Nordic region
Incontinence care: 1
Baby diapers: 1
AFH tissue: 1
Consumer tissue: 2
Europe
Tissue: 1
Corrugated board: 2
Solid-wood products: 2
Baby diapers: 3
Incontinence care: 1
Privately owned forests: 1
Australia
Feminine care: 1
Incontinence care: 1
Tissue: 2Global
Incontinence care: 1
AFH tissue: 3
Leading market positions
8
Strong global and regional brands
Asia Pacific
Eastern Europe
Latin America
North America Europe
14 June 2011
SCA Group Strategic Priorities
9
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
14 June 2011
10
Latin America
South East Asia
Eastern Europe /Russia
Strong SCA positions Good market growth Favourable socio-demographics
Good market growth Favourable socio-demographics
Middle East
China Incontinence care products
GrowthSCA’s growth markets
14 June 2011
Q1 2011 resultsSEK millions Q1 Q1 Change, Change,
unless otherwise stated 2011 2010 % %**
Net sales 25,393 26,199 *** -3 6 ****
EBIT* 2,112 2,027 4 10
EBIT margin* (%) 8.3 7.7
Profit before tax* 1,810 1,748 4 10
Earnings per share (SEK) 1.89 1.53 24
Cash flow from current operations 353 1,148
Debt/Equity ratio 0.49 0.57
* Adjusted for Packaging restructuring costs in 2010** Adjusted for exchange rate movements*** Net sales from SCA recycling business have been reclassified to other income with retroactive adjustment from 2010**** Adjusted for exchange rate movements and divestments
14 June 201111
Outlook 2011
14 June 2011
Good demand for all businessesGood growth in Emerging markets for Hygiene businessesContinued high raw material costs Increasing corrugated pricesPrice increases for Personal Care, Tissue and publication
papers during H2
12
Personal careInitiatives 2010
Feminine care 17%
Incontinencecare 56%
Baby diapers27%
14 June 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
13
14 14 June 2011
Personal CareInnovations strengthens market positions
15
Personal CareGood growth opportunities
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%
14 June 2011
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
16
EURm
Newproducts & services
NorthEurope
SouthEurope
NorthAmerica
Emerging markets
Reimbursement
RetailTV
Internet
Design
Personal CareTENA a true success story
Annual sales growth 1990-2010: 9%
14 June 2011
Personal CareSustainability as a business driver
Growth potential in emerging marketsMore people can afford hygiene products
– and they prioritize it Smaller packs, local distribution and value
products in Latin America, Africa and AsiaCooperation with Wal-Mart’s Bodega
Aurrera stores in Mexico
17 14 June 2011
TissueInitiatives 2010
Consumertissue 62%
AFH-tissue38%
14 June 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
18
19 14 June 2011
TissueInnovations strengthens market positions
Increased customer demand, both from consumer and B2B Several tenders secured thanks to green credentials,
i.e. Starbucks, Wembley stadium and McDonalds Increased demand for eco-labelling
90 Tork products received the EU Eco-label in 2010
Other labels such as the Green Seal, EcoLogo, Die Blaue Engel
TissueSustainability as a business driver
20 14 June 2011
14 June 201121
TissueStronger brands and more efficient A&P
Focused, differentiated & consumer relevant mega-brand portfolio
From … … To
DACH East
Nordic NL
Complicated, region specific, inefficient brand portfolio
22
TissueGood growth opportunities in emerging markets
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%
14 June 2011
TissueInvestments
New tissue machine, Germany
Start-up 2013
Capacity: 60,000 tonnes
Primarily AFH tissue products
Investment: SEK 1.1bn
New tissue machine, Russia
Start-up 2013
Capacity: 60,000 tonnes
Investment: SEK 1.2bn
14 June 2011
Increases capacity, efficiency and profitability
23
Q & A
14 June 201124
25 14 June 2011
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