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
2 December 2011 2
3 3
Forest Products
Packaging Tissue
Personal Care
36% 24%
16% 24%
SCA Group Sales split 2010
Sales split
2 December 2011 3
0%
20%
40%
60%
80%
100%
2000 2010
4
% of net sales
Hygiene products (Personal Care and Tissue)
Packaging and Forest Products
46% 60%
40% 54%
2000 2010
Increasing hygiene sales
2 December 2011 4
5
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
2 December 2011 5
6
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
6 2 December 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
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9 2 December 2011
Innovation for profitable growth Meet changing demands and requirements Create long-term, profitable differentiation Strengthen market positions Build stronger brands Drive growth
Hygiene business Strategic focus
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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
Growth potential for hygiene products
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Global population growth
An aging population
Increased market penetration
Higher disposable income
Customers and consumers demand more comfort and sustainability
11
12
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%
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13 13
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
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14
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
2 December 2011
15
21%
Mature markets
Emerging markets
% of Hygiene sales in 2010
9M 2011 Emerging markets hygiene sales growth:
Personal Care: +12%*
Tissue: +10%*
Growth High growth in Emerging markets
2 December 2011
* Adjusted for exchange rate movements
15
Growth Acquisitions strengthen Emerging markets presence
16
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
2 December 2011
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 1.70
Georgia-Pacific´s acceptance of this offer is subject to consultations with works councils where appropriate
The transaction will be subject to customary consultation with employee representatives and will also be subject to approval by relevant competition authorities
17 2 December 2011
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 sales in our consumer tissue portfolio
18 2 December 2011
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-known Lotus brand for AFH tissue and consumer tissue
Approx. 5,000 employees
15 manufacturing sites in 7 countries
670,000 tonnes annual tissue capacity
Georgia-Pacific’s European tissue operations
19 2 December 2011
* Italy and Turkey are not included in the binding offer
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
20 2 December 2011
25%
Enhances SCA’s presence In both Consumer tissue and AFH tissue
35%
European Consumer tissue market
European AFH tissue market
SCA
SCA and GP
19% 30% SCA
SCA and GP
21 2 December 2011
Increased share of branded sales In Consumer tissue
SCA’s Consumer tissue sales
40% 50%
Branded
Branded
SCA
SCA and GP
22
Retailers’ brands
Retailers’ brands
2 December 2011
24 2 December 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