Download - SCAs Annual General Meeting 2012
AGM 2012Jan Johansson, President and CEO
� Net sales of SEK 106bn
� 44,000 employees and sales in more than 100 countries
� World’s third-largest hygiene company
� TEN and Tork are leading global brands for incontinence care and AFH tissue
� Europe’s second-largest packaging company
� Europe’s largest private forest owner
� Europe’s second-largest sawmill company
222 AGM 2012
SCA Group in 2011
33
Forest Products
Packaging Tissue
Personal Care
36%
25%
16% 23%
AGM 2012
SCA GroupSales in 2011
Sales
3
AGM 2012
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
Corrugated board: 2
Solid-wood products: 2
Baby diapers: 3
Incontinence products: 1
Private forest owners: 1
Asia
Incontinence products: 1
Globally
Incontinence products: 1
AFH tissue: 2
Leading market positions Globally and regionally
4
Results for 2011
SEKm Change, Change,
unless otherwise specified 2011 2010 % %**
Net sales 105,750 106,965 -1 4***
Operating profit* 9,224 9,608 -4 0
Operating margin* (%) 8.7 9.0
Profit before tax* 7,934 8,492 -7 -3
Earnings per share (SEK) 0.78 7.90
Cash flow from current operations 6,383 7,399
Debt/equity ratio 0.60 0.51
AGM 2012
* Excluding items affecting comparability
** Excluding exchange rate effects
*** Excluding divestments
5
5%*
11.7%10.7%
-9%
Sales
24,775 25,027
2,6452,922
2011 2010
Personal Care
Operating profit**
� Strong global leadership in incontinence products for the TENA brand
� 13% growth in developing countries
� Investment in local production of incontinence products in Russia
� Acquisitions in Brazil and Turkey
� Efficiency programme
� Increased raw material costs
2011 2010
SEKm
Operating margin**
AGM 2012
* Excluding exchange rate effects
** Excluding items affecting comparability
6
4%*
4%
39,87039,118
3,0413,150
Tissue
7.6%8.1%
� Increased market shares for Tork brand
� 10% growth in developing countries
� Efficiency programme
� Improved margin� Price increases and higher volumes
� Cost savings
SEKm
2011 2010
2011 2010
AGM 2012
Sales
Operating profit**
Operating margin**
* Excluding exchange rate effects
** Excluding items affecting comparability
7
1%*
14.3%11.6%
-18%
17,12317,180
2,4552,001
� New lime kiln at pulp mill in Östrand
� Upgrade of newsprint machine enables production of higher paper grades
� Higher raw material prices
� Negative exchange rate effects
� Forest – net growth of 1%
� Sales of FSC products increasing
SEKm
2011 2010
2011 2010
AGM 2012
Forest Products
* Excluding exchange rate effects
** Excluding items affecting comparability
Sales
Operating profit**
Operating margin**
8
8%**
5.9%7.2%
21%
26,83126,650
1,5771,909
� Market recovery
� Increased market prices
� Higher raw material prices
SEKm
2011 2010
2011 2010
* Net sales for SCA’s recycling business were reclassified to other income, with retroactive adjustment for 2010.** Excluding exchange rate effects and divestments
*** Excluding items affecting comparability
AGM 2012
Packaging
Sales*
Operating profit***
Operating margin***
9
Strategic changes
AGM 2012
�Acquisition of Georgia-Pacific’s European tissue operations
�Divestment of Packaging operations, excluding the two kraftliner mills in Sweden
10
� Creates a leading European tissue company
� Strengthens SCA’s product offering and geographic presence
� Sales: SEK 11.9bn
� Purchase price: SEK 12bn
� Annual synergies: SEK 1.1bn
� 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
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Divestment of Packaging operations
� Divestment of Packaging operations to DS Smith
� Excludes SCA’s two kraftliner mills in Sweden
� Sales: SEK 24.4bn
� Purchase price: SEK 15.3bn on a debt-free basis
� Earnings per share declines by SEK 0.73*
* Based on earnings for the period for 2011
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� Net sales of SEK 92bn
� 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
131313 AGM 2012
SCA GroupAfter completion of ongoing transactions
SCA Group’s strategic priorities
EFFICIENCY INNOVATION GROWTH
14 AGM 2012
Efficiency
AGM 2012
�Restructuring 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
15
16
InnovationStrengthens market positions and profitability
AGM 2012
AGM 201217
AGM 2012
Princess Estelleuses Libero diapers and baby-care products
18
Growth�Organic growth of 4% in 2011 compared with 2010�High growth in emerging markets
�Personal Care +13%�Tissue +10%
�Acquisition in Brazil � Pro Descart, No. 2 in incontinence care
�Acquisition in Turkey� San Saglik 95%, No. 2 in incontinence care� Komili 50%, No. 4 in baby diapers and feminine care
�Binding offer to acquire Everbeauty –Taiwanese/Chinese incontinence care and baby diaper company
� Continued expansion of wind power opportunities�Ongoing projects totalling 4 TWh
AGM 201219
Sustainability is business-critical Value creation for people, nature and business
Sustainability strategy is an integral part of business operations
Nature People
Economy
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Årsstämma 201221