Svenska Cellulosa Ab Sca Class A · OMXSTO:SCA_A

Svenska Cellulosa Ab Sca Class A — SCA — Handelsbanken Consumer Seminar (December 2011)

24 slides from Svenska Cellulosa Ab Sca Class A's conference presentation, Dec 2, 2011

  1. Slide 1: Handelsbanken consumer seminar

    Handelsbanken consumer seminar Mats Berencreutz, Executive Vice President 1 2 December 2011

  2. Slide 2: SCA Group

    SCA Group A global hygiene products and paper company  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

  3. Slide 3: SCA Group: Sales split 2010

    SCA Group Sales split 2010 Forest Products Sales split Personal Care 16% 24% 24% 36% Packaging Tissue 3 2 December 2011

  4. Slide 4: Increasing hygiene sales

    Increasing hygiene sales % of net sales 100% 80% 54% 40% 60% 40% 60% 20% 46% 0% 2000 2000 2010 2010 Packaging and Hygiene products Forest Products (Personal Care and Tissue) 4 2 December 2011

  5. Slide 5: Leading market positions

    Leading market positions Global and regional North America AFH tissue: 3 Europe Incontinence care: 3 Tissue: 1 Baby diapers: 2 Incontinence care: 1 Mexico Incontinence care: 1 Tissue: 2 Feminine care: 1 Baby diapers: 3 Global Incontinence care: 1 Colombia AFH tissue: 2 Australia Incontinence care: 1

  6. Slide 6: Strong global and regional brands

    Strong global and regional brands Two global billion EUR brands Eastern Europe Europe North America Asia Pacific Latin America Sales of SEK 65bn, with sales in more than 100 countries 6 2 December 2011

  7. Slide 7: Strategic focus areas

    Strategic focus areas 7 2 December 2011

  8. Slide 8: Sustainability as a business driver

    Sustainability as a business driver  Reduced cost  ESAVE = SEK 600m in annual cost savings  Improved competitive edge  Sustainability credentials generate good business  Great growth potential through customized offerings in D&E markets  Renewable energy, wind power, biofuels  World’s largest

  9. Slide 9: Innovation for profitable growth

    Innovation for profitable growth  Meet changing demands and requirements  Create long-term, profitable differentiation  Strengthen market positions  Build stronger brands  Drive growth 9 2 December 2011

  10. Slide 10: Hygiene business

    Hygiene business Strategic focus  Strengthen positions and increase growth in main markets and emerging markets  Increase the number of global brands  Increase the pace of innovations  Efficiency improvements 10 2 December 2011

  11. Slide 11: Growth potential for hygiene products

    Growth potential for hygiene products  Global population growth  An aging population  Increased market penetration  Higher disposable income  Customers and consumers demand more comfort and sustainability 11 2 December 2011

  12. Slide 12: Growth: High potential in low penetration markets

    Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/year Penetration in mature markets around 35% North America Western Europe Eastern Europe Latin America Asia 12 2 December 2011

  13. Slide 13: Population growth 2010-2020

    Population growth 2010-2020 Demographics People, millions 8 000 +12% 2010 2020 7 000 6 000 5 000 +11% 4 000 , 3 000 2 000 +7% 1 000 +2% +33% 0 World Children 0-4 Women 15-49 >65 yrs Other yrs yrs 13 2 December 2011

  14. Slide 14: Growth: SCA's growth markets

    Growth SCA’s growth markets Latin America  Strong SCA positions South East Asia  Good market growth  Favourable socio-demographics Eastern Europe /Russia  Good market growth Middle East  Favourable socio-demographics China  Incontinence care products 14 2 December 2011

  15. Slide 15: Growth: High growth in emerging markets

    Growth High growth in Emerging markets 9M 2011 Emerging markets hygiene sales growth: Personal Care: +12%* Tissue: +10%* % of Hygiene sales in 2010 Emerging markets 21% Mature markets * Adjusted for exchange rate movements 15 2 December 2011

  16. Slide 16: Growth: Acquisitions strengthen emerging markets presence

    Growth Acquisitions strengthen Emerging markets presence Algodonera Copamex San Saglik, 95% Pro Descart Aconcagua  No. 3 in baby diapers  No. 2 in incontinence  No. 2 in incontinence  No. 3 in feminine care care products care products  Smaller positions in  Smaller position in baby diapers and

  17. Slide 17: Binding offer for Georgia-Pacific's European tissue operations

    Binding offer for Georgia-Pacific’s European tissue operations  Offered price: EUR 1.32bn  Already in year one the transaction is estimated to contribute to an increase of earnings per share and cash flow  With fully realized synergies earnings per share are expected to increase with approx. SEK

  18. Slide 18: Binding offer for Georgia-Pacific's European tissue operations

    Binding offer for Georgia-Pacific’s European tissue operations  Creates a leading European tissue company  Strengthens our product offering and geographic reach in Europe  Enhances our presence in key markets  Good strategic fit in AFH tissue  Substantial synergies  Increased share of branded

  19. Slide 19: Georgia-Pacific's European tissue operations

    Georgia-Pacific’s European tissue operations  Sales: EUR 1.25bn*  Consumer tissue, approx. 60%  AFH tissue, approx. 30%  Personal care, approx. 5%  EBIT margins on similar level as SCA’s tissue business  Market positions  Consumer tissue, 11% market share  AFH tissue, 10% market share  Well

  20. Slide 20: Substantial synergies

    Substantial synergies  Increased supply chain efficiency  Optimization of logistics  More efficient sourcing  Improved SG&A and A&P efficiency  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 2

  21. Slide 21: Enhances SCA's presence

    Enhances SCA’s presence In both Consumer tissue and AFH tissue European Consumer tissue market 25% SCA SCA and GP 35% European AFH tissue market SCA and GP SCA 19% 30% 21 2 December 2011

  22. Slide 22: Increased share of branded sales

    Increased share of branded sales In Consumer tissue SCA’s Consumer tissue sales SCA SCA and GP Retailers’ Branded brands Branded Retailers’ 40% 50% brands 22 2 December 2011

  23. Slide 23: Q & A

    Q&A 23 2 December 2011

  24. Slide 24: IR Contacts

    IR Contacts: Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor Relations Tel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: [email protected] Website: www.sca.com 24 2 December 2011

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