sca cage 2013 corporate investor presentation slides deck ppt pdf

7/29/2019 SCA CAGE 2013 Corporate Investor Presentation Slides Deck PPT PDF

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CAGE conferenceLennart Persson, CFO


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Net sales of SEK 85.4bn

36,000 employees

Sales in about 100 countries

#1 or #2 positions in close to 80 countries

Strong brands;

TENA and Tork are leading global billion-eurobrands for Incontinence products and AFH tissue

Europes largest private forest owner

Europes second-largest sawmill company

Several of the worlds most prestigious sustainabilityawards

SCA Group

Leading global hygiene and forest products company

March 20132


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Key events 2012 Divestment of the Packaging business, excluding the two kraftliner mills

Acquisition of Georgia-Pacifics European tissue operations

Strengthened positions in emerging markets Acquisition of Everbeauty in Asia

Increased shareholding in Vinda

Acquisition of PISA in Chile

Joint venture in Australia/New Zealand Divestment of Aylesford Newsprint and Laakirchen publication paper mills

Efficiency programs

New hygiene organization

March 20133


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Leading Market positions

Globally and regionally

North America

Incontinence products:

AFH tissue:

2

3

Mexico

Incontinence products: 1

Feminine care: 1

Consumer tissue 2

AFH tissue: 3

Baby diapers: 3

Colombia


Feminine care: 1

Tissue: 1

Baby diapers 2

Nordic region


Baby diapers: 1

AFH tissue: 1

Consumer tissue: 2

Feminine care 2

Europe

Tissue: 1

Incontinence products 1

Baby diapers: 2

Feminine care 3

Private forest owners: 1

Solid-wood products: 2

As ia


GloballyIncontinence products: 1

AFH tissue: 1

Consumer tissue: 2

March 2013

Value market positions

4


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SCA Group

2012 sales and EBIT by Business Area

Forest Products

Tissue

Personal Care

49%

21%30%

Sales by Business Area

Forest Products

Tissue

Personal Care

50%

15%

35%

EBIT by Business Area

Tissue

49%

21%30%

Forest Products

Tissue

Personal Care

50%

15%

35%

March 20135


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SCA Group

2012 sales by Product Category

Feminine care

Baby diapers

73% branded

Incontinence

products

30%

14%

56%

Personal Care

AFH tissue

Consumer tissueApprox. 50% branded

38%62%

Tissue

March 20136


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To own and develop 6-10 global brand

platforms of > EUR 1bn each

Strengthen our profitability in core markets

Increase share of revenues and profit from

D&E markets

Increase share of revenues and profit from

less capital intensive opportunities

Increase share of branded business vs.

retailer brands

Increase share of No. 1 or No. 2 positions in

our branded business portfolio

Hygiene Aspiration

March 20137


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SCA Groups Priorities

SUSTAINABILITY

EFFICIENCY INNOVATION GROWTH

March 20138


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Efficiency2012 Cost and productivity program

Annual cost saving: EUR 300m

Full effect in 2015

Georgia-Pacific synergies

Annual cost saving: EUR 125m

Full effect in 2016

Efficiency program in Forest Products

Annual earnings improvement: SEK 1,300m

Full effect in 2015

March 20139


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Total annual cost savings: EUR 300m

Related restructuring costs: EUR 100m

Headcount reduction: approx. 1,500

Manufacturing

Sourcing

Logistics 12%

43%

6%

39%

SG&A

Manufacturing Blueprint implementation

Asset utilization improvements

Best practice sharing

Sourcing World-class sourcing processes

Leverage global scale

Consolidation of suppliers

Logistics Optimize warehouse footprint Lower transportation costs

Working capital management

SG&A

Fewer layers in the organization Clear roles and responsibilities, no overlaps

Center-led support model

Cost savings

* Excluding Georgia-Pacific acquisition

Cost and Productivity program*

Key actions

March 201310


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Georgia-Pacific Acquisition

Synergies

Cost synergies

Supply chain

Sales andMarketing

Support and

overhead25%

60%

15%

Supply chain synergies

Manufacturing excellence and best

practice Footprint optimization

Scale effects raw materials

Logistics optimization

Sales and Marketing

S&M organization consolidation

A&P efficiency

Support and overhead Consolidation of support functions

Cost synergies

Total annual cost synergies: EUR 125m

Related restructuring costs: EUR 130m

March 201311


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Innovation drives Profitable growth

Strengthens market positions and profitability

March 201312


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Growth Sales growth of 11%*

High growth in emerging markets

Acquisition of Georgia-PacificsEuropean tissue operations

Acquisition of Everbeauty, an Asian

personal care company Acquisition of PISA, a Chilean

tissue company

* 2012 compared with 2011, excluding exchange rate movements and divestments

March 201313


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Global population growth

An aging population Increased market penetration

Higher disposable income

Customers and consumers demand

more comfort and sustainability

Market Drivers

Good growth opportunities

March 201314


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March 2013

Western Europe Eastern Europe Latin America As iaNorth America

Usage of Hygiene products

Units/capita/year Units/child/year Units/woman/year Kg/capita/year

Hygiene Products

High potential in markets with low penetration

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36%

Mature markets

Emerging markets

% of Personal Care 2012 sales

2012

Emerging markets sales growth:

Personal Care: +22%*

Tissue: +19%*

Growth

High growth in Emerging markets

* Excluding exchange rate effects

17%

Mature markets

% of Tissue 2012 sales

Emerging markets

March 201316


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Financial Targets

* Annual organic sales growth** Return on capital employed

Sales growth* ROCE**

Personal Care 5-7% 30%

Tissue 3-4% 15%

Forest Products in line with market in top quartile

Group

Business areas

ROCE** 13%

Debt/Equity 0.70

Debt payment capacity above 35%

Dividend policy 1/3 of cash flow from current operations

March 201317


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sca cage 2013 corporate investor presentation slides deck ppt pdf

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