Deutsche Bank Conference. Fredrik Rystedt, Executive Vice President and CFO

Transcription

1 Deutsche Bank Conference Fredrik Rystedt, Executive Vice President and CFO

2 SCA a Leading Global Hygiene and Forest Products Company June 16, 2016 Deutsche Bank Conference Paris 2

3 SCA in Brief 115 SEK billion in net sales SEK billion in operating profit* 2015 Presence in approximately 100countries Number of employees 44,000 *Excluding items affecting comparability June 16, 2016 Deutsche Bank Conference Paris 3

4 Sales by Business Area 2015 Forest Products Net Sales 15% Tissue 30% 55% Personal Care June 16, 2016 Deutsche Bank Conference Paris 4

5 Global Market Positions Incontinence Products: 1 AfH Tissue: 1 Consumer Tissue: 2 Baby Diapers: 4 Feminine Care: 5 June 16, 2016 Deutsche Bank Conference Paris 5

6 Favorable Market Trends An aging population Global population growth Increasing disposable income Increased insight that good hygiene improves health and well-being June 16, 2016 Deutsche Bank Conference Paris 6

7 Usage of Hygiene Products High potential in markets with low penetration North America Western Europe Eastern Europe Latin America Asia Data is based on market data and SCA s estimates. June 16, 2016 Deutsche Bank Conference Paris 7

8 Global Hygiene Market Size and Growth Bubble size: Market size CAGR* North America 27bn ~2% Western Europe 18bn ~1% Eastern Europe 3bn ~3% Russia 2 bn CAGR ~9% Asia 30bn ~7% LATAM 10bn ~6% Africa 7bn ~7% Australia 1bn ~2% * Expected CAGR (Compound Annual Growth Rate) Data is based on market data and SCA s estimates. Global Market Size 2015: EUR 99bn June 16, 2016 Deutsche Bank Conference Paris 8

9 Global Hygiene Market 2015 Higher market growth in Emerging Markets Market size 2015: EUR 47bn Market growth CAGR* : ~5-7% Market size 2015: EUR 52bn Market growth CAGR* : ~1-2% * Expected CAGR (Compound Annual Growth Rate) Data is based on market data and SCA s estimates June 16, 2016 Deutsche Bank Conference Paris 9

10 SCA Performance * Excluding items affecting comparability June 16, 2016 Deutsche Bank Conference Paris 10

11 Dividend and Total Shareholder Return June 16, 2016 Deutsche Bank Conference Paris 11

12 SCA Creates Value SCA Creates Value 8 Enhancing Value Creation Return above Cost of Capital Invest for future growth Increase return Grow where return is high Innovation Innovation Innovation Investments in Emerging Markets and market activities Build stronger brands Efficiency improvements Cure or kill Improve portfolio mix Continue to invest in market activities M&A * Excluding items affecting comparability 12 June 16, 2016 Deutsche Bank Conference Paris 12

13 Financial Group Targets Return on Capital Employed Group: 13% Business area: Personal Care: 30% Tissue: 15% Forest Products: To be in top quartile of the industry Organic Sales Growth Annual organic sales growth: Personal Care: 5 7% Tissue: 3 4% Forest Products: to grow in line with the market Capital Structure & Dividend Effective capital structure Maintain a solid investment grade rating SCA aims to provide longterm stable and rising dividends to its shareholders June 16, 2016 Deutsche Bank Conference Paris 13

14 Organic Sales Growth Outcome vs. Targets June 16, 2016 Deutsche Bank Conference Paris 14

15 Return on Capital Employed Outcome* vs Targets * Excluding items affecting comparability June 16, 2016 Deutsche Bank Conference Paris 15

16 Strategic Priorities Profitable Growth Innovation Efficiency June 16, 2016 Increasing efficiency in the entire value chain Deutsche Bank Conference Paris 16

17 Profitable Growth Maximize the core by investing in winning markets Top 20 Profitable market share growth Up-andcoming Invest and grow for the long term Develop, Cure or Kill Develop stars, turnaround or exit poor performers Export Profitability and low risk June 16, 2016 Deutsche Bank Conference Paris 17

18 Profitable Growth Expanding the core Scale up Soaps & Wipes To New Core Grow Solutions & Services Explore New Categories June 16, 2016 Deutsche Bank Conference Paris 18

19 Profitable Growth Win in Digital Digital Capabilities Global digital operating model and capabilities Digital Channels Excellence in e-commerce & e-marketing Digital Products Tork EasyCube TENA Identifi June 16, 2016 Deutsche Bank Conference Paris 19

20 Innovation Around 30 innovations/product launches in 2015 June 16, 2016 Deutsche Bank Conference Paris 20

21 Efficiency Supply Chain Efficiencies with Value Stream Mindset Go to Market Excellence Best Practice Sharing June 16, 2016 Deutsche Bank Conference Paris 21

22 Other Key Activities Support the success of Vinda expansion in Asia Secure integration of Wausau Paper Investing in Östrand pulp mill expansion Creating two divisions; Hygiene and Forest Products June 16, 2016 Deutsche Bank Conference Paris 22

23 Group Q vs. Q Sales SEK 28,177m +1% Organic Sales Growth 3% Operating Profit* SEK 3,247m +13%** Operating Margin* 11.5% +120bp EPS SEK % Operating Cash Flow SEK 2,735m +40% * Excluding items affecting comparability ** Excluding items affecting comparability, currency translation effects, acquisitions and divestments June 16, 2016 Deutsche Bank Conference Paris 23

24 Q&A June 16, 2016 Deutsche Bank Conference Paris 24

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