sca morgan stanley consumer goods, new york
TRANSCRIPT
16 November 2010
Morgan Stanley conference Jan Johansson, President and CEO
16 November 2010222
SCAone of three leading hygiene companies
worldwide
16 November 2010333
� Net sales SEK 111bn
� 45,000 employees and sales in more than 100 countries
� World’s third largest hygiene products company
� TEN and Tork leading global brands for incontinence care and Away From Home tissue
� Europe’s largest private forest owner
� Europe’s second largest packaging company
SCA GroupA global hygiene products and paper company
16 November 2010
0%
20%
40%
60%
80%
100%
1997 2008 09
4
% of net sales
Hygiene productsPackaging and
Forest Products
42%60%
40%58%
1999 2009
SCA GroupHygiene business is growing
16 November 201055555
Forest Products
Packaging Tissue
Personal Care
36%
27%
15% 22%
SCA GroupSales and EBIT split first nine months 2010
30%
31%
25%
14%
Sales split
EBIT splitEBIT split
16 November 20106
Leading market positionsGlobal and regional
Europe
Tissue: 1
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: 3
Baby: 3 Global
Incontinence care: 1
AFH tissue: 3ColombiaIncontinence care: 1
Feminine care: 1
Tissue: 1
North America
AFH tissue: 3Incontinence care: 3
Nordic region
Incontinence care: 1
Baby diapers: 1
AFH tissue: 1
Consumer tissue: 2
16 November 2010
SCA Group Strategic Direction
7
16 November 20108
GrowthHigh potential in markets with low penetration
Usage of hygiene products
Units/capita/year Units/child/year Units/woman/year
Western Europe Eastern Europe Latin America AsiaNorth America
Kg/capita/year
Penetration in mature
markets around 35%
8
16 November 201099
� Strong SCA positions
� Good market growth
� Favourable socio-demographics
� Joint venture
� Good market growth
� Favourable socio-demographics
Our growth markets
� Market tests of Incontinence care
products
16 November 201010
Increased pace of innovationStrengthens market positions
16 November 20101111
11%
Feminine
care
Baby
diapers
Away-From-Home tissue
Incontinence
care
Consumer
tissue
Hygiene businessSales split first nine months 2010
38%
24% 21%
10%
7%
16 November 2010
Hygiene businessStrategic focus
12
� Strengthen leading positions
� Maintain Tena leadership in premium segment and increase growth in economy segment
� Drive innovation
� Increase value added and branded
� Grow in prioritized Emerging markets
� Increased share of no.1 and no.2 positions
� Improve profitability in Consumer tissue and Baby diapers
16 November 20101313
Q3 2010 vs Q3 2009SCA market update
�Significantly increased raw material prices� Pulp, OCC, recovered paper
� Raw material costs increased SEK 1.8bn
�Stronger SEK to other currencies� Negative sales impact of SEK 1.5bn equivalent to 6%
�Hygiene business
� Good growth for Incontinence care, Feminine care and AFH tissue
� Continued good growth in emerging markets
�Packaging and Forest Products� Increased demand for Packaging
• Corrugated volumes increased 4%
� Publication paper volumes flat
� Increased volumes for solid-wood products and pulp
16 November 201014
Q3 2010 results
SEK millions Q3 Q3 Change, Change, Q2
unless otherwise stated 2010 2009 Q3/Q3,%* Q3/Q3,%** 2010
Net sales 27,204 27,108 0 6 27,652
EBIT* 2,574 2,576 0 2 2,440
EBIT margin* (%) 9.5 9.5 8.8
Profit before tax* 2,274 2,199 3 2,196
Earnings per share (SEK) 1.95 1.82 7 2.04
Cash flow from current operations 2,194 4,259 1,668
* Excluding restructuring cost
** Adjusted for exchange rate movements
16 November 20101515
Outlook 2010
� Hygiene businesses� Good demand� Seasonally weaker demand in Q4 for AFH tissue North America� Full impact in Q4 of price increases in Tissue
� Packaging� Seasonally weaker demand in Q4� Increasing prices
� Forest Products� Good demand
16 November 201016
Q&A
16 November 201017