Seminar on Consumer Markets - PDF by pms11296

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									ABG Sundal Collier Consumer Seminar
            12 March 2008




            Jan Johansson
          President and CEO
Sales split by business
Forest Products                           Personal Care




                      17%    21%



                    31%
                              31%




Packaging                                        Tissue

                  Sales 2007: SEK 106bn
Growth in consumer products
   Percentage
    of sales




                                                                     Other


                                                                     Forest products


                                                                     Packaging


                                                                     Hygiene products
                                                                     (Tissue and Personal Care)




 SCA has gradually shifted the balance towards products of a higher value content
Personal Care - at a glance

Overview                                   Total sales 2007: SEK 22bn

 Innovation driven business

 TENA incontinence care sold both in                16%
 retail channel and to institutions
                                                               55%
                                                  29%
 TENA global no. 1 with 26% market
 share

 Libero no. 1 in baby diapers in Nordic
 countries                                           Incontinence care

                                                      Baby diapers
 Strong regional positions with feminine
                                                      Feminine care
 care
Personal Care – demand drivers

           Incontinence care

  Aging population
  Higher disposable income
  Increasing acceptance
  Product availability
  Entry into ”greyzone”
             Baby diapers
  Birth rates
  Higher disposable income
  Extended diaper period

            Feminine care
  Number of women of fertile age
  Higher penetration in emerging markets
TENA is sold in over 90 countries




19%                          40%
                             Market
Market
                             share in
share in
                             Europe
North
America           26%
                  Global
                  market
                  share
TENA success story in figures
Net sales 1987 - 2007

EURm


                            Retail in North America



                     TENA Pants launch


       TENA Lady retail Europe
Higher value in incontinence care




       Improves SCA´s profitability
       and reduces the total cost for
              the customer
Baby diapers – strong position in
selected markets

 Strong positions with branded products in
 selected markets in Europe and Asia-Pacific
 – Dominating position in Nordic
   (market share approx 55%)
 – Strong growth in Russia

 Leading position within retailers’ brands in
 Europe

 Sales in more than 50 countries
Feminine care – one global brand
platform

                                             Russia




                  Europe



                           Middle East

  Latin America




                                             Australasia

                              South Africa
SCA Tissue – at a glance

Overview                                 Total sales 2007: SEK 33 bn

  No. 1 in Europe

  Global No. 3
                                                  41%      59%
  No.3 in AFH tissue North America

  Leading positions in Latin America

  Products include toilet paper,
  kitchen rolls, handkerchiefs, facial
  tissue and napkins                                     Consumer tissue

                                                          AFH tissue
  Strong own brands and supplier of
  retailers’ brands
Consumer tissue - products
Products          Main Brands

 Toilet paper



 Household
 towels



 Handkerchiefs



 Napkins



 Facial tissues
Tork is sold in some 80 countries




19%                            17%
                               Market
Market
                               share in
share in
                               Europe
North
America           No.3
                  on the
                  global AFH
                  market
North America AFH has significantly increased
the share of value added products

      3%       15%            30%




               System sales and dispensers
               Standard products
Strong focus on growth markets


       Strong brands

       Unique concepts

       Global best practice

       Long experience of
       growth markets
Accelerated sales growth
in Emerging markets
                            Eastern Europe,
Latin America               Russia          Asia
(local currency)           (local currency)       (local currency)
                                     17%

         7%
                                                           16%




  2006        2007            2006         2007     2006         2007




% of total sales 1997                              % of total sales 2007


          7%       Emerging markets                                  Emerging markets
                                                             16%



                   Mature markets                                       Mature markets
Extremely low penetrated markets

Usage of personal care products

Units/capita/year
                                     Units/child/year            Units/woman/year




                    Western Europe     Eastern Europe   Latin America    Asia
Packaging - at a glance

Overview                        Total sales 2007: SEK 34 bn
                                Revenue split


   Europe’s second largest
   supplier of corrugated                    10%
   packaging                           10%
                                                     66%
   High level of                      14%
   containerboard integration

   Strategy to increase value
   content

   Operations in Europe and                  Conventional Packaging

   China                                     Consumer Packaging
                                             Protective Packaging

                                             Other
SCA Forest Products – at a glance

Overview                           Total sales 2007: SEK 19bn

 Supplier of publication papers
 (SC- LWC- and Newsprint                        6%
 grades)                                                32%
                                          24%
 Europe's largest private owner
 of forestland, 2.6 million                  23% 15%
 hectares

 Pulp mill with production to
                                                SC / LWC paper
 tissue and publication papers
                                                Newsprint
 Supplier of solid-wood products                Pulp & timber

                                                Solid-wood products

                                                Other
Business highlights
      Strong earnings improvement
    SEK millions
    unless otherwise stated                   2007          2007 2006 Change, %
    Net sales                              105,913       105,913 101,439                4

    EBITDA                                  19,818       15,976* 14,665                 9

    EBITDA-margin (%)                           18.7         15.1*      14.5
    EBIT                                    10,147         9,847*      8,505           16
    Profit before tax                         8,237        7,937*      6,833           16

    Earnings per share (SEK)                  10.16          9.80*      7.75           26
    Operating cash flow                       8,127         8,127      6,304           29
    Debt/Equity ratio                          0.58           0.58      0.62




*Excluding forest revaluation and efficiency enhancement activities with a net EBIT impact of SEK 300m
Continued dividend growth
SEK
          5
                                                         R)
                                                    %(CAG
                                           th   9
          4
                                   nd grow
                         D    ivide
          3


          2


          1


          0
               1998    1999    2000   2001   2002     2003   2004   2005   2006   2007 1)




       Proposed dividend of SEK 4.40 per share
1) Proposed dividend
SCA Group market trends 2008

 Continued good demand for
 SCA’s main segments
 Increased raw material and
 energy costs
 Positive price momentum

								
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