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SEB Enskilda TMC seminarJohan Karlsson, VP Investor Relations
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Net sales of SEK 106bn
44,000 employees and sales in more than 100 countries
World’s third-largest hygiene company
TEN and Tork are leading global brands for incontinence care and AFH tissue
Europe’s second-largest packaging company*
Europe’s largest private forest owner
Europe’s second-largest sawmill company
222 June 2012
SCA Group in 2011
* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested
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SCA GroupMajor changes
Acquisition of Georgia-Pacific’s European tissue operationsDivestment of the Packaging business, excluding
the two kraftliner millsEstablished joint venture in Australia/New ZealandAcquisition of Everbeauty an Asian hygiene products company Increased shareholding in VindaAcquisition of PISA in ChileNew hygiene organizationAcquisition of PLF a French solid-wood products company
June 20123
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Creates a leading European tissue company
Strengthens SCA’s product offering and geographic presence
Sales: EUR 1.25bn
Purchase price: EUR 1.32bn
Annual synergies: EUR 125m
With full implementation of synergies, earnings per share are expected to increase by approximately SEK 1.70
Acquisition of Georgia-Pacific’s European tissue operations
June 20124
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Georgia-Pacific acquisitionSubstantial 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
June 20125
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25%35%
European Consumer tissue market
European AFH tissue market
SCA SCA and GP
20% 30%SCA SCA and GP
Georgia-Pacific acquisitionEnhances SCA’s presence in Consumer and AFH tissue
6 June 2012
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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
Acquisition of EverbeautyLeading Asian personal care company
* 2010 sales
June 20127
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Divestment of Packaging operations
Divestment of Packaging operations to DS Smith
Excludes SCA’s two kraftliner mills in Sweden
Sales: SEK 24.4bn
Purchase price: EUR 1.7bn on a debt-free basis
Earnings per share declines by SEK 0.73*
* Based on earnings for the period for 2011
June 20128
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Net sales of SEK 92bn
37,000 employees and sales in more than 100 countries
World’s second-largest hygiene company
TEN and Tork are leading global brands for incontinence care and AFH tissue
Europe’s largest private forest owner
Europe’s second-largest sawmill company
99 June 2012
SCA GroupAfter completion of ongoing transactions
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10
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.
June 2012
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June 2012
North America
AFH tissue: 3
Incontinence products: 3
Mexico
Incontinence products: 1
Consumer tissue: 2
AFH tissue: 3
Feminine care: 1
Baby diapers: 3
Colombia
Incontinence products: 1
Feminine care: 1
Tissue: 1
Nordic region
Incontinence products: 1
Baby diapers: 1
AFH tissue: 1
Consumer tissue: 2
Europe
Tissue: 1
Solid-wood products: 2
Baby diapers: 3
Incontinence products: 1
Private forest owners: 1
Asia
Incontinence products: 1
Globally
Incontinence products: 1
AFH tissue: 2
Leading market positions Globally and regionally
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Strong global and regional brandsTwo global billion EUR brands
North America
Eastern EuropeEurope
Latin America
June 2012
Asia Pacific
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SCA Group’s strategic priorities
EFFICIENCY INNOVATION GROWTH
13 June 2012
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Efficiency
June 2012
Restructuring programme in baby diapers in Europe completedEfficiency programme Mainly related to Personal Care and TissueAnnual cost saving: SEK 700mGradual impact in 2012-2013
Investments in upgrade of existing and new capacity
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InnovationStrengthens market positions and profitability
June 2012
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GrowthOrganic growth of 4%* High growth in emerging marketsAcquisition of Georgia-Pacific´s European tissue
operationsAcquisition in Brazil
Pro Descart, No. 2 in incontinence care
Acquisition in TurkeySan Saglik 95%, No. 2 in incontinence careKomili 50%, No. 4 in baby diapers and feminine care
Acquisition of Everbeauty an Asian personal care company Continued expansion of wind power opportunitiesOngoing projects totalling 4 TWh
June 2012
* Q1 2012 compared with Q1 2011, excluding exchange rate movements and divestments
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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
June 201217
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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
June 2012
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35%
Mature markets
Emerging markets
% of Personal Care sales
Q1 2012 Emerging markets sales growth:
Personal Care: +23%*
Tissue: +14%*
GrowthHigh growth in Emerging markets
* Adjusted for exchange rate movements
18%
Mature markets
% of Tissue sales
Emerging markets
June 2012
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Q & A
June 201220
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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