SCAs Annual General Meeting 2011
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Transcript of SCAs Annual General Meeting 2011
� Net sales SEK 109bn
� 45,000 employees and sales in more than 100 countries
� World’s third largest hygiene products company
SCA GroupA global hygiene products and paper company
company
� Europe’s largest private forest owner
� Europe’s second largest packaging company
2 Annual General Meeting 2011
Forest Products Personal Care
15% 22%
SCA GroupSales and EBIT split 2010
29%25%
Sales split
EBIT splitEBIT split
33
Packaging Tissue
36%
27%
15% 22%
30%16%
Annual General Meeting 2011
Leading market positionsGlobal and regional
Europe
Tissue: 1
Corrugated board: 2
North America
AFH tissue: 3Incontinence care: 3
Nordic region
Incontinence care: 1
Baby diapers: 1
AFH tissue: 1
Consumer tissue: 2
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Corrugated board: 2
Baby diapers: 3
Incontinence care: 1
Privately owned forests: 1
Australia
Feminine care: 1Incontinence care: 1Tissue: 2
Mexico
Incontinence care: 1
Tissue: 2
Feminine care: 3Baby diapers: 3 Global
Incontinence care: 1
AFH tissue: 3ColombiaIncontinence care: 1
Feminine care: 1Tissue: 1
Annual General Meeting 2011
Strategic Priorities
� Cost reductions in all
business areas of
SEK 1bn
� Cash flow from
current operations:
� Efficiency programs in
Packaging and Forest
Products
� Closure/Divestment of 18 packaging units
� Personal Care
� Thin baby diaper
� TENA Ultra thins
� Strong TENA value assortment
� SCA Group 5%*
� Personal Care 2%**
� Emerging markets 10%**
� Tissue 2%**
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current operations:
SEK 7.4bn
of 18 packaging units
� Supply chain
excellence and asset
utilization programs in
Tissue Europe
� Restructuring program
in Baby diapers in
Europe
� New tissue plant in
Mexico
� New Personal Care
plant in Russia
assortment
� Tissue
� Tork Xpressnap Café
� Tork Performance
� Tempo ice
� Packaging
� Trueflo
� ZeoCool
� Forest Products
� Increased value added
� Tissue 2%**
� Emerging markets 6%**
� Packaging 20%*
� Forest Products 3%**
* Adjusted for exchange rate movements,
divestments and closures
* * Adjusted for exchange rate movements
Annual General Meeting 2011
GrowthHigh 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%
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Western Europe Eastern Europe Latin America AsiaNorth America
6 Annual General Meeting 2011
Latin America
South East Asia
Eastern Europe /Russia
� Strong SCA positions
� Good market growth
� Favourable socio-demographics
GrowthSCA’s growth markets
77
Middle East
China � Incontinence care products
Annual General Meeting 2011
� Good market growth
� Favourable socio-demographics
Full year 2010 results
SEKm Change, Change,
unless otherwise stated 2010 2009 % %**
Net sales 109,142 110,857 -2 5***
EBIT* 9,608 9,648 0 4
EBIT margin* (%) 8.8 8.7EBIT margin* (%) 8.8 8.7
Profit before tax* 8,492 8,004 6 10
Earnings per share (SEK) 7.90 6.78 17
Cash flow from current operations 7,399 11,490 -36
Debt/Equity ratio 0.51 0.60
* Excluding restructuring cost
** Adjusted for exchange rate movements
*** Adjusted for exchange rate movements and divestments
Annual General Meeting 20119
Net debtAnd debt payment capacity
%SEKm
35% 33%
36%
33%
Net debt decreased SEK 6bn
40%
1010 Annual General Meeting 2011
2%*
Net sales
25,71625,027
2010 2009
Personal Care
� Investment in local production in Russia
� Acquisition of third largest baby diapers business in Mexico
� Restructuring program in baby diapers in Europe
� Growth
� TENA has increased market share
SEKm
12.6%11.7%**
-10%**
Net sales
3,2352,922**
2010 2009
* Adjusted for exchange rate movements
** Excluding restructuring costs
EBIT
� TENA has increased market share
� Incontinence care products in China
� Feminine care products launched in Malaysia
� Tampons launched in Sweden and the Netherlands
� Extended range of Libero baby care products
� Emerging market sales increased 10%*
� Innovation
� TENA Ultra Thins
� Thin baby diapers
� Strong TENA value assortment
2010 2009
EBIT margin
11 Annual General Meeting 2011
2%*
41,42539,870
Tissue
� Investment in new tissue plant in Mexico
� European brand migration project
� Implementation of price increases
� Growth
� Tork has gained market share in Europe
and North America
SEKm
-23%
3,946
3,041
9.5%7.6%
and North America
� Emerging market sales increased 6%*
� Innovation
� Tork Xpressnap Café
� Tork Performance
� Tempo Ice
� Tempo Kids
� Tempo toilet tissue
Net sales 2010 2009
2010 2009EBIT
Annual General Meeting 2011
EBIT margin
* Adjusted for exchange rate movements
12
20%*
28,35929,633
Packaging
� Finalized restructuring program
� Annualized savings of slightly more than SEK 1bn
� Divestment of the Asian packaging operation
� Annual sales of USD 250m
SEKm
1.5%**5.3%**
282%**
413**
1,577**
� Annual sales of USD 250m
� Price increases
� Innovation
� Trueflo
� ZeoCool
Net sales 2010 2009
2010 2009EBIT
Annual General Meeting 2011
EBIT margin
* Adjusted for exchange rate movements, divestments and closures
** Excluding restructuring costs
13
3%*
16,98317,123
Forest Products
� Efficiency project at Ortviken paper mill
� Creation of Gällö Timber AB
� Deliveries of FSC certified publication papers increased 35 %
SEKm
EBIT margin 14.7%14.3%**
-2%**
2,5032,455**
Net sales
EBIT
2010 2009
2010 2009
Annual General Meeting 2011
* Adjusted for exchange rate movements
** Excluding restructuring costs
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Corporate sustainabilityNew business opportunities and reduced cost
�New business opportunities� Increased access to products in emerging
markets
� Incontinence training of 5,000 nurses in China
� Renewable energy
Annual General Meeting 201115
� Renewable energy
�Reduced cost and reduced risk� 1,300 energy-efficiency initiatives have
reduced cost by SEK 600m
� New global supplier standard for the hygiene business reduces supply chain risk
The ForestA valuable asset
� Europe’s largest private forest owner – FSC certified
� Annual net growth of 1%
� Raw material integration and potential for electricity generation
� Our forests absorb as much carbon dioxide as is discharged from our entire production
� If the worlds forests were managed the same way as SCA’s that would
Annual General Meeting 2011
� If the worlds forests were managed the same way as SCA’s that would solve a big part of the climate change problem
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