2. SCA Group in 2011
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
2 AGM 2012
3. SCA Group
Sales in 2011
Forest Products Sales Personal Care
16% 23%
25%
36%
Packaging Tissue
3 AGM 2012
6. Personal Care
SEKm
24,775 25,027
Strong global leadership in incontinence
5%*
products for the TENA brand
13% growth in developing countries
Sales 2011 2010
Investment in local production of
incontinence products in Russia
Acquisitions in Brazil and Turkey
2,922
Efficiency programme
2,645
-9%
Increased raw material costs
Operating profit** 2011 2010
Operating margin** 10.7% 11.7%
* Excluding exchange rate effects
** Excluding items affecting comparability
6 AGM 2012
8. Forest Products
SEKm New lime kiln at pulp mill in Östrand
17,180 17,123 Upgrade of newsprint machine enables
1%* production of higher paper grades
Higher raw material prices
Negative exchange rate effects
Sales 2011 2010
Forest – net growth of 1%
Sales of FSC products increasing
2,455
2,001
-18%
Operating profit** 2011 2010
Operating margin** 11.6% 14.3%
* Excluding exchange rate effects
** Excluding items affecting comparability
8 AGM 2012
9. Packaging
SEKm
Market recovery
26,650 26,831
Increased market prices
8%**
Higher raw material prices
Sales* 2011 2010
1,909
1,577
21%
Operating profit*** 2011 2010
Operating margin*** 7.2% 5.9%
* .
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
9 AGM 2012
10. Strategic changes
Acquisition of Georgia-Pacific’s European tissue
operations
Divestment of Packaging operations, excluding the
two kraftliner mills in Sweden
10 AGM 2012
11. Acquisition of Georgia-Pacific’s
European tissue operations
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
11 AGM 2012
12. 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
12 AGM 2012
13. SCA Group
After completion of ongoing transactions
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
13 AGM 2012
15. Efficiency
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 AGM 2012
19. 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
19 AGM 2012
20. Sustainability is business-critical
Value creation for people, nature and business
Economy
Nature People
Sustainability strategy is an integral part of business operations
20 AGM 2012