Annual General Meeting 2011

Annual General Meeting 2011
Jan Johansson, President and CEO
Annual General Meeting 2011
SCA Group
A global hygiene products and paper company
Net sales SEK 109bn
45,000 employees and sales in more
than 100 countries
World’s third largest hygiene products
company
Europe’s largest private forest owner
Europe’s second largest packaging
company
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Annual General Meeting 2011
SCA Group
Sales and EBIT split 2010
EBIT split
EBIT split
Forest Products
Sales split
Personal Care
29%
25%
15%
22%
27%
36%
16%
Packaging
3
30%
Tissue
Annual General Meeting 2011
Leading market positions
Global and regional
Nordic region
Incontinence care:
Baby diapers:
AFH tissue:
Consumer tissue:
North America
AFH tissue:
3
Incontinence care: 3
Mexico
Incontinence care:
Tissue:
Feminine care:
Baby diapers:
Colombia
Incontinence care:
Feminine care:
Tissue:
4
1
1
1
2
Europe
Tissue:
Corrugated board:
Baby diapers:
Incontinence care:
Privately owned forests:
1
2
3
3
1
1
1
Global
Incontinence care:
AFH tissue:
1
2
3
1
1
1
3 Australia
Feminine care:
Incontinence care:
Tissue:
1
1
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Annual General Meeting 2011
Strategic Priorities
Cost reductions in all
business areas of
SEK 1bn
Cash flow from
current operations:
SEK 7.4bn
Efficiency programs in
Packaging and Forest
Products
Closure/Divestment
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
*
Personal Care
Thin baby diaper
TENA Ultra thins
Strong TENA value
assortment
Tissue
Tork Xpressnap
Café
Tork Performance
Tempo ice
SCA Group 5%*
Personal Care 2%**
Emerging markets 10%**
Tissue 2%**
Emerging markets 6%**
Packaging 20%*
Forest Products 3%**
Packaging
Trueflo
ZeoCool
Forest Products
Increased value
added
Adjusted for exchange rate movements,
divestments and closures
* * Adjusted for exchange rate movements
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Annual General Meeting 2011
Growth
High 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%
North America
6
Western Europe
Eastern Europe
Latin America
Asia
Annual General Meeting 2011
Growth
SCA’s growth markets
Latin America
Strong SCA positions
South East Asia
Eastern Europe
/Russia
Middle East
Good market growth
Favourable socio-demographics
Good market growth
Favourable socio-demographics
China
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Incontinence care products
Annual General Meeting 2011
Increased pace of innovation
Strengthens market positions
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Annual General Meeting 2011
Full year 2010 results
SEKm
unless otherwise stated
Net sales
EBIT*
Change,
2010
2009
%
%**
109,142
110,857
-2
5***
9,608
9,648
0
4
8.8
8.7
8,492
8,004
6
10
7.90
6.78
17
7,399
11,490
-36
0.51
0.60
EBIT margin* (%)
Profit before tax*
Earnings per share (SEK)
Cash flow from current operations
Change,
Debt/Equity ratio
*
Excluding restructuring cost
** Adjusted for exchange rate movements
*** Adjusted for exchange rate movements and divestments
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Annual General Meeting 2011
Net debt
And debt payment capacity
Net debt decreased SEK 6bn
SEKm
36%
33%
10
35%
%
40%
33%
Annual General Meeting 2011
Personal Care
SEKm
Investment in local production in Russia
25,027 25,716
2%*
Acquisition of third largest baby diapers business
in Mexico
Restructuring program in baby diapers in Europe
Growth
Net sales
2010
2,922**
2009
3,235
-10%**
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
EBIT
EBIT margin
2010
2009
11.7%** 12.6%
TENA Ultra Thins
Thin baby diapers
Strong TENA value assortment
* Adjusted for exchange rate movements
** Excluding restructuring costs
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Annual General Meeting 2011
Tissue
SEKm
Investment in new tissue plant in Mexico
39,870 41,425
2%*
European brand migration project
Implementation of price increases
Growth
Net sales
2010
2009
3,946
3,041
-23%
EBIT
2010
2009
EBIT margin
7.6%
9.5%
Tork has gained market share in Europe
and North America
Emerging market sales increased 6%*
Innovation
Tork Xpressnap Café
Tork Performance
Tempo Ice
Tempo Kids
Tempo toilet tissue
* Adjusted for exchange rate movements
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Annual General Meeting 2011
Packaging
SEKm
29,633
28,359
20%*
Finalized restructuring program
Annualized savings of slightly more than
SEK 1bn
Divestment of the Asian packaging
operation
Net sales
2010
2009
Annual sales of USD 250m
Price increases
Innovation
1,577**
282%**
413**
EBIT
EBIT margin
2010
Trueflo
ZeoCool
2009
5.3%** 1.5%**
* Adjusted for exchange rate movements, divestments and closures
** Excluding restructuring costs
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Annual General Meeting 2011
Forest Products
SEKm
17,123 16,983
3%*
Efficiency project at Ortviken paper mill
Creation of Gällö Timber AB
Deliveries of FSC certified publication
papers increased 35 %
Net sales
2010
2009
2,455** 2,503
-2%**
EBIT
EBIT margin
2010
14.3%**
2009
14.7%
* Adjusted for exchange rate movements
** Excluding restructuring costs
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Annual General Meeting 2011
Corporate sustainability
New 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
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
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Annual General Meeting 2011
The Forest
A 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
solve a big part of the climate change problem
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Annual General Meeting 2011
SCA Group Strategic Priorities
A stronger SCA
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Annual General Meeting 2011
Tack.
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Annual General Meeting 2011