scas annual general meeting 2011

Annual General Meeting 2011 Jan Johansson, President and CEO

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%


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

4

Corrugated board: 2

Baby diapers: 3


Privately owned forests: 1

Australia

Feminine care: 1Incontinence care: 1Tissue: 2

Mexico


Tissue: 2

Feminine care: 3Baby diapers: 3 Global


AFH tissue: 3ColombiaIncontinence care: 1

Feminine care: 1Tissue: 1


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%**

5

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


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%

6

Western Europe Eastern Europe Latin America AsiaNorth America


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


� Good market growth

� Favourable socio-demographics

Increased pace of innovationStrengthens market positions


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


Net debtAnd debt payment capacity

%SEKm

35% 33%

36%

33%

Net debt decreased SEK 6bn

40%


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


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


EBIT margin


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


EBIT margin

* Adjusted for exchange rate movements, divestments and closures


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




14

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


� 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


� If the worlds forests were managed the same way as SCA’s that would solve a big part of the climate change problem

16

SCA Group Strategic PrioritiesA stronger SCA


Tack.Tack.Tack.Tack.


scas annual general meeting 2011

Health & Medicine

feminine care

bnproductspersonal care

globalincontinence care

australia incontinence

ceo annual general meeting

colombiaafh tissue

consumer tissue

largest baby diapers