sca cfo lennart persson presentation at seb tmc seminar september 22 2011
DESCRIPTION
http://www.sca.com/ir SCA CFO Lennart persson held a presentation at the TMC seminar on September 22, 2011. He talked about hygiene products sales increase, strategic focus areas, brands, market positions, innovation, growth potential for hygiene products, emerging markets, sustainability as a business driver. http://www.facebook.com/SCA | http://www.twitter.com/SCAeveryday | http://www.youtube.com/SCAeverydayTRANSCRIPT
22 September 2011
SEB TMC seminar Lennart Persson, CFO
1
2 2 2
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 Group A global hygiene products and paper company
22 September 2011
3 22 September 2011
SCA world’s third largest hygiene company
4 4
Forest Products
Packaging Tissue
Personal Care
36% 24%
16% 24%
SCA Group Sales and EBIT split 2010
Sales split
22 September 2011 4
0%
20%
40%
60%
80%
100%
2000 2010
5
% of net sales
Hygiene products (Personal Care and Tissue)
Packaging and Forest Products
46% 60%
40% 54%
2000 2010
Increasing hygiene sales
22 September 2011 5
Strategic focus areas
22 September 2011 6 6
7
Strong global and regional brands Two global billion EUR brands
North America
Eastern Europe
Asia Pacific
Europe
Latin America
Sales of SEK 65bn, with sales in more than 100 countries
7 22 September 2011
8
Leading market positions Global and regional
Europe Tissue: 1 Baby diapers: 2 Incontinence care: 1
Australia Feminine care: 1 Incontinence care: 1 Tissue: 2
Mexico Incontinence care: 1 Tissue: 2 Feminine care: 1 Baby diapers: 3 Global
Incontinence care: 1 AFH tissue: 2 Colombia
Incontinence care: 1 Feminine care: 1 Tissue: 1
North America AFH tissue: 3 Incontinence care: 3
22 September 2011 8
Hygiene business Strategic focus
22 September 2011 9
Strengthen positions and increase growth in main markets and emerging markets
Increase the number of global brands
Increase the pace of innovations
Efficiency improvements
9
10 22 September 2011
Meet changing demands and requirements Create long-term, profitable differentiation Strengthen market positions Build stronger brands Drive growth
Innovation for profitable growth
11
Innovation Strengthens market positions and profitability
22 September 2011 11
12
Innovation Strengthens market positions and profitability
22 September 2011 12
Growth potential for hygiene products
22 September 2011 13
Global population growth
An aging population
Increased market penetration
Higher disposable income
Customers and consumers demand more comfort and sustainability
Global market size for hygiene products: SEK 675bn
13
14
Growth High potential in markets with low penetration
Usage of hygiene products
Units/capita/year Units/child/year Units/woman/year
Western Europe Eastern Europe Latin America Asia North America
Kg/capita/year
Penetration in mature markets around 35%
22 September 2011 14
15 15
Population growth 2010-2020 Demographics
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
World Children 0-4yrs
Women 15-49yrs
>65 yrs Other
2010 2020
,
+33%
+12%
+2%
+7%
+11%
People, millions
22 September 2011 15
16
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
Growth SCA’s growth markets
22 September 2011
17
21%
Mature markets
Emerging markets
% of Hygiene sales in 2010
H1 2011 Emerging markets hygiene sales growth:
Personal Care: +9%*
Tissue: +9%*
Growth High growth in Emerging markets
22 September 2011
* Adjusted for exchange rate movements
17
Growth Acquisitions strengthen Emerging markets presence
18
Algodonera Aconcagua
No. 3 in feminine care
Smaller positions in baby diapers and incontinence care products
Copamex No. 3 in baby diapers
San Saglik, 95% No. 2 in incontinence
care products
Komili, 50% No. 4 position in baby
diapers and feminine care
Pro Descart No. 2 in incontinence
care products
Smaller position in baby diapers
22 September 2011
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 producer of FSC-certified products
Attract investors 23% of investors in SCA shares make sustainability screening
Reduced risk level Attract top talents Strengthen the brand
22 September 2011 19
Sustainability as a business driver
Extensive customer and consumer demand for sustainable solutions and eco labelling Growing sustainability interest in
emerging markets Great growth potential with
customized offerings in D&E markets Sustainability drives innovation
22 September 2011 20
21 22 September 2011
No impact from debt crisis
Good demand in all Business areas
Raw material prices slightly down
Price increases
Short-term update
Q & A
22 September 2011 22
23 22 September 2011
Johan Karlsson, VP Investor Relations Tel: +46 8 788 51 30
Jessica Ölvestad, Manager Investor Relations Tel: +46 8 788 52 82
IR Contacts:
Email: [email protected] Website: www.sca.com