sca's presentation from the abg consumer seminar in stockholm
TRANSCRIPT
ABG Consumer SeminarMats Berencreutz, Executive Vice President
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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
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Forest Products
Packaging* Tissue
Personal Care
36%25%
16% 23%
SCA GroupNet sales 2011
Net sales
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* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested
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.
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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
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Strong global and regional brandsTwo global billion EUR brands
North America
Eastern Europe
Asia Pacific
Europe
Latin America
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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
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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
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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
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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
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Increased share of branded salesIn Consumer tissue
SCA’s Consumer tissue sales
40% 50%
Branded Branded
SCA SCA and GP
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Retailers’brands
Retailers’brands
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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
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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
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Binding offer to acquire EverbeautyLeading Asian personal care company
* 2010 sales
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Strategic focus areas
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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
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InnovationStrengthens market positions and profitability
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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
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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
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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
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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
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16%
Mature markets
% of Tissue sales
Emerging markets
21 March 2012
Q & A
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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