SCA's presentation from Handelsbanken Conference 120910
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Transcript of SCA's presentation from Handelsbanken Conference 120910
Major changesDivestment of the Packaging business, excluding
the two kraftliner millsAcquisition of Georgia-Pacific’s European tissue operationsEstablished joint venture in Australia/New ZealandAcquisition of Everbeauty an Asian hygiene products company Increased shareholding in VindaAcquisition of PISA in ChileNew hygiene organizationAcquisition of PLF a French solid-wood products company
September 201222
Creates a leading European tissue company
Strengthens SCA’s product offering and geographic presence
Sales: EUR 1.25bn
Purchase price: EUR 1.32bn
Annual synergies: EUR 125m
With full implementation of synergies, earnings per share are expected to increase by approximately SEK 1.70
Acquisition of Georgia-Pacific’s European tissue operations
3 September 2012
Net sales of SEK 91bn*
37,000 employees and sales in more than 100 countries
World’s second-largest hygiene company
TEN and Tork are leading global brands for incontinence care and AFH tissue
Europe’s largest private forest owner
Europe’s second-largest sawmill company
44 September 2012
SCA Group
* 2011 sales adjusted for closed transactions
5
46% 60%
40%54%
~20%*
~80%*
SCA GroupHygiene business is growing
% of net sales
Forest Products and Packaging
Hygiene products(Personal Care and Tissue)
September 2012
September 20126
Leading market positions Globally and regionally
North America
AFH tissue: 3
Incontinence products: 3
Mexico
Incontinence products: 1
Consumer tissue: 2
AFH tissue: 3
Feminine care: 1
Baby diapers: 3
Colombia
Incontinence products: 1
Feminine care: 1
Tissue: 1
Nordic region
Incontinence products: 1
Baby diapers: 1
AFH tissue: 1
Consumer tissue: 2
Europe
Tissue: 1
Solid-wood products: 2
Baby diapers: 3
Incontinence products: 1
Private forest owners: 1
Asia
Incontinence products: 1
Globally
Incontinence products: 1
AFH tissue: 1
Consumer tissue: 2
September 20128
EfficiencyRestructuring programme in baby diapers
in Europe completed
Efficiency programme Mainly related to Personal Care and Tissue Annual cost saving: SEK 700m Gradual impact in 2012-2013
Investments in upgrade of existing and new capacity
GrowthSales growth of 4%* High growth in emerging marketsAcquisition of Georgia-Pacific´s European tissue
operationsAcquisition in Brazil
Pro Descart, No. 2 in incontinence care
Acquisition in TurkeySan Saglik 95%, No. 2 in incontinence careKomili 50%, No. 4 in baby diapers and feminine care
Acquisition of Everbeauty an Asian personal care company Continued expansion of wind power opportunitiesOngoing projects totalling 4 TWh
September 2012
* H1 2012 compared with H1 2011, excluding exchange rate movements and divestments
11
September 201212
Global population growth
An aging population
Increased market penetration
Higher disposable income
Customers and consumers demand more comfort and sustainability
GrowthGrowth potential for hygiene products
September 201213
Western Europe Eastern Europe Latin America AsiaNorth America
Usage of hygiene products
Units/capita/year Units/child/year Units/woman/year Kg/capita/year
GrowthHigh potential in markets with low penetration
September 2012
Macro updateQ2 2012
Global economy and private consumption to slow in 2012 Debt crisis in parts of Western Europe has a negative impact Emerging markets shows relatively good growth
Hygiene products Good growth in Emerging markets Low or no growth in Western Europe and North America
Forest products Lower European demand and unacceptably low prices
in publication paper Continued weak demand and unsatisfactory low prices
in solid-wood products Price increases for Kraftliner during Q2
14
Q2 2012 results
September 2012
SEK millions Q2 Q2 Change, Change,
unless otherwise stated 2012 2011 % %**
Net sales 20,273 20,415 -1 2
EBIT* 2,105 1,810 16 16
EBIT margin* (%) 10.4 8.9
Profit before tax* 1,789 1,527 17
Earnings per share (SEK) 1.85 1.96
Operating cash flow 2,391 1,868
Debt/Equity ratio 0.41 0.55
* Excluding items affecting comparability** Excluding exchange rate movements, and divestments
15
September 201216
Key reasons to invest in SCA
Transformation story
Strong product portfolio
Good growth opportunities
Profitability improvement potential
Good dividend yield
Johan Karlsson, VP Investor RelationsTel: +46 8 788 51 30
IR Contacts:
Email: [email protected] Website: www.sca.com