sca's presentation from the abg consumer seminar in stockholm

22
ABG Consumer Seminar Mats Berencreutz, Executive Vice President

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Page 1: SCA's presentation from the ABG Consumer Seminar in Stockholm

ABG Consumer SeminarMats Berencreutz, Executive Vice President

Page 2: SCA's presentation from the ABG Consumer Seminar in Stockholm

222

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*

SCA GroupA global hygiene products and paper company

21 March 2012

* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested

Page 3: SCA's presentation from the ABG Consumer Seminar in Stockholm

33

Forest Products

Packaging* Tissue

Personal Care

36%25%

16% 23%

SCA GroupNet sales 2011

Net sales

21 March 20123

* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested

Page 4: SCA's presentation from the ABG Consumer Seminar in Stockholm

4

46% 60%

40%54%

~20%*

~80%*

SCA GroupHygiene business is growing

% of net sales

Forest Products and Packaging

Hygiene products(Personal Care and Tissue)

* Provided that the Packaging divestment and the acquisition of Georgia-Pacific’s European tissue business are closed according to plan.

21 March 2012

Page 5: SCA's presentation from the ABG Consumer Seminar in Stockholm

5

Leading market positionsGlobal and regional

EuropeTissue: 1Corrugated board: 2Baby diapers: 3Incontinence care: 1Privately owned forests: 1Solid-wood products: 2

AustraliaFeminine care: 1Incontinence care: 1Tissue: 2

MexicoIncontinence care: 1Tissue: 2Feminine care: 1Baby diapers: 3 Global

Incontinence care: 1AFH tissue: 2Colombia

Incontinence care: 1Feminine care: 1Tissue: 1

North AmericaAFH tissue: 3Incontinence care: 3

21 March 2012

Page 6: SCA's presentation from the ABG Consumer Seminar in Stockholm

6

Strong global and regional brandsTwo global billion EUR brands

North America

Eastern Europe

Asia Pacific

Europe

Latin America

21 March 2012

Page 7: SCA's presentation from the ABG Consumer Seminar in Stockholm

Key events

21 March 2012

Acquisition of Georgia-Pacific’s European tissue operationsDivestment of the Packaging business, excluding the two

kraftliner millsAcquisitions in emerging marketsBinding offer to acquire Asian hygiene products companyEstablished joint venture in AustralasiaEfficiency programNew hygiene organizationWind power joint venture with Fred.Olsen Renewables

7

Page 8: SCA's presentation from the ABG Consumer Seminar in Stockholm

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 2012

Acquisition of Georgia-Pacific’s European tissue operations

21 March 20128

Page 9: SCA's presentation from the ABG Consumer Seminar in Stockholm

Substantial synergies

Annual synergies: EUR 125m

Improves Tissue EBIT margins by 2-2.5 percentage points

Full effect in 3 years after closing

Related costs: EUR 130m

Increased supply chain efficiency Optimization of logistics

More efficient sourcing

Improved SG&A and A&P efficiency

9 21 March 2012

Page 10: SCA's presentation from the ABG Consumer Seminar in Stockholm

25%

Enhances SCA’s presenceIn both Consumer tissue and AFH tissue

35%

European Consumer tissue market

European AFH tissue market

SCA SCA and GP

20% 30%SCA SCA and GP

10 21 March 2012

Page 11: SCA's presentation from the ABG Consumer Seminar in Stockholm

Increased share of branded salesIn Consumer tissue

SCA’s Consumer tissue sales

40% 50%

Branded Branded

SCA SCA and GP

11

Retailers’brands

Retailers’brands

21 March 2012

Page 12: SCA's presentation from the ABG Consumer Seminar in Stockholm

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 2011

21 March 201212

Page 13: SCA's presentation from the ABG Consumer Seminar in Stockholm

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

21 March 2012

Binding offer to acquire EverbeautyLeading Asian personal care company

* 2010 sales

13

Page 14: SCA's presentation from the ABG Consumer Seminar in Stockholm

Strategic focus areas

14 21 March 2012

Page 15: SCA's presentation from the ABG Consumer Seminar in Stockholm

Efficiency

Restructuring program in baby diapers in Europe finalizedEfficiency programMainly related to Personal Care and TissueAnnual cost savings: SEK 700mGradual impact during 2012-2013 Annualized savings in Q4 2011: SEK 200m

New hygiene organization Investments in new capacity and upgrades

21 March 201215

Page 16: SCA's presentation from the ABG Consumer Seminar in Stockholm

16

InnovationStrengthens market positions and profitability

21 March 2012

Page 17: SCA's presentation from the ABG Consumer Seminar in Stockholm

GrowthAcquisition of Georgia-Pacific´s European tissue operationsHigh growth in emerging marketsAcquisition in Brazil

Pro Descart, No. 2 in incontinence products

Acquisitions in TurkeySan Saglik 95%, No. 2 in incontinence productsKomili 50%, No. 4 in baby diapers and feminine

care products

Binding offer to acquire Asian personal care companyNew hygiene organizationWind power joint venture with Fred.Olsen

Renewables Investments in new capacity and upgrades

21 March 201217

Page 18: SCA's presentation from the ABG Consumer Seminar in Stockholm

21 March 201218

Global population growth

An aging population

Increased market penetration

Higher disposable income

Customers and consumers demand more comfort and sustainability

GrowthGrowth potential for hygiene products

Page 19: SCA's presentation from the ABG Consumer Seminar in Stockholm

19

Western Europe Eastern Europe Latin America AsiaNorth America

GrowthHigh potential in markets with low penetration

Usage of hygiene products

Units/capita/year Units/child/year Units/woman/year Kg/capita/year

21 March 2012

Page 20: SCA's presentation from the ABG Consumer Seminar in Stockholm

20

32%

Mature markets

Emerging markets

% of Personal Care sales

2011 Emerging markets sales growth:

Personal Care: +13%*

Tissue: +10%*

GrowthHigh growth in Emerging markets

* Adjusted for exchange rate movements

20

16%

Mature markets

% of Tissue sales

Emerging markets

21 March 2012

Page 21: SCA's presentation from the ABG Consumer Seminar in Stockholm

Q & A

21 March 201221

Page 22: SCA's presentation from the ABG Consumer Seminar in Stockholm

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