Post on 20-Aug-2015
SCA Capital Market Day 2012Jan Johansson, President and CEO
Macro EconomyChina’s economic slowdown…
U.S. election
Holding back recovery
CMD 20122
To be, or not to be…
Effects of high unemployment
Germans sick of paying
The Arabic spring
European debt crisis
CMD 20123
Global population growth
An aging population
Increased market penetration
Higher disposable income
Customers and consumers demand more comfort and sustainability
Market DriversGood growth opportunities
CMD 20124
2010 2017
Personal CareTissue
Global Hygiene Products MarketIncreased penetration and aging and growing population
CMD 20125
0
200
400
600
800
1 000
1 200
Total world Europe China USA
20102017
+34%
+21%
Millions aged over 60 years old
Aging PopulationTotal population aged over 60 approaching 1 billion by 2017
+25%
+12%
CMD 20126
Western Europe Eastern Europe Latin America AsiaNorth America
Usage of Hygiene products
Units/capita/year Units/child/year Units/woman/year Kg/capita/year
Hygiene ProductsHigh potential in markets with low penetration
CMD 20127
Today
SCA is a leading global Hygiene and Forest productscompany
Net sales of SEK 91bn* 37,000 employees Sales in more than 100 countries World’s second-largest hygiene company #1 or #2 positions in close to 80 countries Strong brands;
TEN and Tork are leading global billion-euro brands for Incontinence care and AFH tissue
Europe’s largest private forest owner Europe’s second-largest sawmill company Several of the world’s most prestigious
sustainability awards8 CMD 2012
SCA Group
* 2011 sales adjusted for closed transactions
CMD 2012
Divestment of the Packaging business, excluding the two kraftliner mills Acquisition of Georgia-Pacific’s European tissue operations Acquisitions in emerging markets
Everbeauty in Asia Pro Descart in Brazil San Saglik and Komili(50%) in Turkey
Joint venture in Australia/New Zealand Divestment of Aylesford Newsprint Efficiency program Leadership and culture
9
Transforming SCA
10
46% 60%
40%54%
~20%*
~80%*
SCA GroupHygiene business is growing
% of net sales
Forest Products and Packaging
Hygiene products(Personal Care and Tissue)
CMD 2012
11
SCA Group9 months 2012 sales and EBIT by Business Area
CMD 2012
Forest Products
Tissue
Personal Care
48%
22%30%
Sales by Business Area
Forest Products
Tissue
Personal Care
49%
16%35%
EBIT by Business Area
12
SCA GroupSales by Product Category
CMD 2012
Feminine care
Baby diapers73% branded
Incontinence products
31%
15%
54%
Personal Care
AFH tissue
Consumer tissue52% branded
38%62%
Tissue
37%
Mature markets
Emerging markets
% of Personal Care sales**
Q3 2012 Emerging markets sales growth:
Personal Care: +26%*
Tissue: +20%*
GrowthHigh growth in Emerging markets
* Adjusted for exchange rate movements** Q3 2012
13
16%
Mature markets
% of Tissue sales**
Emerging markets
CMD 2012
14
Leading Market positions Globally and regionally
North America
Incontinence products:AFH tissue:
23
Mexico
Incontinence products: 1
Feminine care: 1
Consumer tissue 2
AFH tissue: 3
Baby diapers: 3
Colombia
Incontinence products: 1
Feminine care: 1
Tissue: 1
Baby diapers 2
Nordic region
Incontinence products: 1
Baby diapers: 1
AFH tissue: 1
Consumer tissue: 2
Feminine care 2
Europe
Tissue: 1
Incontinence products 1
Baby diapers: 3
Feminine care 3
Private forest owners: 1
Solid-wood products: 2
Asia
Incontinence products: 1Globally
Incontinence products: 1
AFH tissue: 1
Consumer tissue: 2
CMD 2012
Value market positions
CMD 201215
SCA Group’s Priorities
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
• Health & Safety• Hygiene solutions• Sustainable innovations• Code of Conduct
Sustainability
• Climate & Energy• Water• Fiber sourcing &
Biodiversity
People Nature
Financials• Return on capital
employed• Growth• Capital structure
CMD 201216
CMD 201217
EfficiencyRestructuring program in baby diapers
in Europe completed2011 Efficiency program
Annual cost saving: EUR 80m Higher machine efficiency and reduced CAPEX
Cost and productivity program Annual cost saving: EUR 300m
Georgia-Pacific synergies Annual cost saving: EUR 125m
Energy efficiency program Annual cost saving: EUR 70m
Efficiency improvements in Forest Products Investments in upgrades and new capacity
Meet changing demands and requirements
Create long-term, profitable differentiation
Strengthen market positions
Build stronger brands
Drive growth
CMD 201218
Innovation drives Profitable growthStrengthens market positions and profitability
Mature markets Improve profitability Increased cash flow
generation Strengthen market
positions Category expansion
Established emerging markets Profitable growth Strengthen market
positions Category expansion
SCA’s Market Priority
Not-present emerging markets Selected entry
CMD 201219
Financial Targets
CMD 2012
* Annual organic sales growth** Return on capital employed
20
Sales growth* ROCE**Personal Care 5-7% 30%Tissue 3-4% 15%Forest Products in line with market in top quartile
Group
Business areas
ROCE** 13%Debt/Equity 0.70Debt payment capacity above 35%
Dividend policy 1/3 of cash flow from current operations
CMD 201221
SummaryTransformation
Leading brands and market positions
Strong product portfolio and innovations
Good growth opportunities
Substantial efficiency improvements
Profitability improvement
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
Hygiene OperationsMats Berencreutz, Executive Vice President
CMD 201222
CMD 201223
Strong brandsand leading global billion-euro brands
#1 or #2 positions in close to 80 countries
Strong Brands and Market positions
To own and develop 6-10 global brand positionings of > EUR 1bn each
Strengthen our profitability in core markets
Increase share of revenues and profit from D&E markets
Increase share of revenues and profit from less capital intensive opportunities
Increase share of branded business vs. retailer brands
Increase share of No. 1 or No. 2 positions in our branded business portfolio
Hygiene Aspiration
CMD 201224
Consumer tissue
Away From Home
Baby FeminineIncontinence care
Category Priorities
Lead & shapeProducts and
valued services
GrowthPenetration
mature markets
Early entrance new markets
Go to marketProducts and
valued services
GrowthLeverage
synergies globally
Early entrance new markets
Secureprofitability
Selective D&E market
Cost effectiveto be on par with market leader
Speed tomarketCompetitive offer
premium and value
Drive scale Excellence in
brand management
Innovation and Cost leadership
CMD 2012
Leverage our Brands and broaden Offer
Growth D&E markets
25
Priorities
Core capabilities
Cost savings Organization effectiveness
Drive Growth Drive Efficiencies
• Leaner, more agile organization
• Shift resources where required to win
• Faster, simplified decision making
• Clarified ways of working
• Innovation & Marketing
• S&M execution
• Global, integrated supply
• Best-in-class support
CMD 201226
27 CMD 2012
Total annual cost savings: EUR 300mRelated restructuring costs: EUR 100mHeadcount reduction: approx. 1,500
Manufacturing
Sourcing
Logistics 12%
43%6%
39%
SG&A
Manufacturing Blueprint implementation Asset utilization improvements Best practice sharing
Sourcing World-class sourcing processes Leverage global scale Consolidation of suppliers
Logistics Optimize warehouse footprint Lower transportation costs Working capital management
SG&A Fewer layers in the organization Clear roles and responsibilities, no overlaps Center-led support model
Cost savings
* Excluding Georgia-Pacific acquisition
Cost and Productivity program*Key actions
Cost and Productivity programSubstantial cost savings
28 CMD 2012
0
50
100
150
200
250
300
350
2013 2014
300
200
Estimates of Year-end run rate savings
EURm
CMD 201229
Georgia-Pacific AcquisitionStrengthens SCA’s No. 1 position in Tissue in Europe
Consumer tissue
No. 1
30% market share
Away From Home
No. 1
31% market share
CMD 201230
Georgia-Pacific AcquisitionStrengthens our no.1 position
Perfect strategic fit
Substantial synergies
Strengthens our geographic presence in Europe
Strong innovation portfolio
Strengthens our branded portfolio
31
Georgia-Pacific AcquisitionSynergies
Cost synergies
Supply chainSales and Marketing
Support and overhead
25%
60%15%
Supply chain synergies Manufacturing excellence and best
practice Footprint optimization Scale effects raw materials Logistics optimization
Sales and Marketing S&M organization consolidation
A&P efficiencySupport and overhead
Consolidation of support functions
CMD 2012
Cost synergies
Total annual cost synergies: EUR 125mRelated restructuring costs: EUR 130m
32 CMD 2012
0
50
100
150
2013 2014 2015
90
50
125
Estimates of Year-end run rate cost savings
EURm
Georgia-Pacific AcquisitionSynergies
33 CMD 2012
0
50
100
150
200
250
300
350
400
450
2013 2014 2015
390
250
425
Estimates of Year-end run rate cost savings
EURm
SummaryCost and Productivity program and Georgia-Pacific synergies
CMD 201234
Summary
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
Strong brands and market positions
Substantial savings from cost and productivity program
Georgia-Pacific acquisition strengthens our position and will generate substantial cost synergies
SCA Global Hygiene SupplyWilliam Ledger, President
SCA World class Production facilities
CMD 2012
Tissue
Personal Care86 factories for hygiene products worldwide, incl. JV
36
Grossprofit
Raw Material/Other Cons.
Energy
Distr. Costs
Personnel costsDepreciation
Others
Cost of Goods
SCA’s Hygiene BusinessSupply cost is a large part of turnover
CMD 201237
Savings
Energy
Distr. Costs
Personnelcosts
Depreciation
Others
Raw Mat/ Others Cons.
Gearing up to Capture Savings
CMD 201238
Hygiene SourcingWaste
reduction
Logistics
Blue PrintBest practice
sharing
Energysavings
We have programs to address all cost
components
Global Best Practice Sharing drives Performance
CMD 201239
Sourcing Savings
CMD 201240
Renewed strong Global sourcing capabilities
700 initiatives identified and pursued
Georgia-Pacific Sourcing integration
Controlled by a program office
CMD 201241
Logistics SavingsGlobal Strategy
Reduce operating cost
Costdown
Free-up liquidity
Capitalturnover up
Improve customer service
Sales up
Value Added Services &
with logistics as
differentiator
Warehouse footprint
Stock reduction
Transport sourcing
Transport optimi-zation
Driving GrowthOrganicNew Paper Machine
in Germany (Kostheim)
Extension of Tissue Production in Russia (Sovetsk)
M&AAcquisitions integration, e.g.
Georgia-Pacific
Greenfield
CMD 201242
CMD 2012
Summary
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
43
Safety first Blueprint at all sites Manufacturing Excellence Lowest cost in Industry Earliest to market in key categories Seamless integration of all acquisitions Standardized low cost site for D&E Sustainable operations with global knowledge sharing
SCA Forest ProductsUlf Larsson, President
CMD 201245
R&D
Forest
Publication paper
Pulp
Energy
SCA Forest ProductsEurope’s largest forest owner and a cost efficient producer
Solid wood Distribution/logistics
Containerboard
SCA Forest ProductsBusiness overview
2011 net sales, SEK 20bn
4,800 employees
46 CMD 2012
Market positions
Publication papers
Growth rate: -2 – -4% p.a.
SCA position No 5
5 %
Growth rate: 1% p.a.
Solid-wood products
SCA position No 22 %
Growth rate: 1 – 2% p.a.
Kraftliner
SCA position No 2
20 %
47 CMD 2012
CMD 2012
Market OpportunitiesSCA Forest Products
Long term demand growth for all product areas except publication papers
Growing interest for wind and biofuel
Truly sustainable products for environmentally aware consumers
48
CMD 2012
SCA Forest ProductsPriorities
Improvement program in difficult market and currency situationReduced exposure to standard newsprintProduct renewal towards fresh fiber based packaging papersWind power expansion Improved market position towards Scandinavian, French and UKbuilding merchants
49
CMD 2012
Cost and ProductivitySCA Forest Products
A strong track record of improving cost and productivityExamples:- Ortviken + 4 %/a in production/FTE 2006-2011- Saw mills + 3 %/a in production/FTE 2006-2011
Additional actions necessary due to current market and currency situation
Reinforced improvement program launched in all units
50
Wind power business model JV concept where partners Statkraft and
Fred.Olsen Renewables allocate capex to SCA land
SCA income from fixed lease and energy price dependent components
Hedge for electricity to SCA/Ortviken
Decided: SEK 8bn, 1.6 TWh/a generationIn pipeline: SEK 16bn, 3.4 TWh/a generation
Biofuels Logging residuals and by-products from forest
industry becomes biofuel Deliveries of 3.2 TWh in 2011 Only 1/3 of potential of logging residuals utilized
51 CMD 2012
Innovative SolutionsGood potential in renewable energy
SCA is the world’s largest supplier of FSC* certified forest products
Strong growth in sales of FSC* solid-wood, pulp and paper products
SCA is also PEFC** certified
52 CMD 2012
Sustainability - our DNACommercial advantages
Publication Papers
* Forest Stewardship Council** Program for the Endorsement of Forest Certification
FSC* products
Replacing oil with biofuelsSignificantly reduced carbon dioxide
emissions from fossil fuelsAnnual cost saving of approximately
SEK 50m for each mill Östrand - 17 500 m3 oil/a
- 52 500 ton CO2/a Munksund - 7 500 m3 oil/a
- 22 500 ton CO2/a
Investments in lime kilns
53 CMD 2012
Sustainability - our DNAReduced cost and environmental impact
CMD 201254
SummarySCA Forest Products – Top 3 priorities
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
1. Product renewal from publication papers and especially from standard newsprint
2. Commercialization of wind power
3. Improvement program to address market and currency situation
Global Hygiene CategoryChristoph Michalski, President
Build global brand positionings for scale
Drive innovation for growth and profit
Within a changing global consumer/customer environment Changing demographics
Urbanization
Price pressures
Private Label
Digital globally
CMD 2012
Innovation and BrandingStrengthens market positions and profitability
56
ONE GLOBAL PACK DESIGN
Baby Diapers
57 CMD 2012
Performancethrough Innovations
CMD 201258
Lights by TENAInnovation success
UK launch summary 2011/12 14% sales growth vs. previous year 25% new consumers recruited from Feminine care Base sales are at the highest level for 3 years lights by TENA have grown shopper numbers
• 30% within lights by TENA only• 70% on repertoire shoppers (liners, maxi and ultra mix)
Brand Equity showed improvement amongst younger consumers on parameters like substitutability and quality
CMD 201259
Dobles launchInnovation success
Successfully launched in Colombia, Australia and France
Increased SCA liners market share by recruiting new consumers from competition
Reaching 5.8% value market share of total liners market
Dobles share of total liners assortment approx. 12% in Colombia, 9% in Australasia and 7% in France
Dobles packaging design in Colombia
CMD 201260
SCA builds strong Patent positions for Valuable Innovations
SCA builds long term strategic patent protection for hygiene innovation activities
On average SCA files 80 new patent applications per year
SCA’s patent portfolio consists of around 1,000 patent families, including those transferred to SCA through acquisitions in 2012
The Tork dispenser forhand towel rolls
one example of an SCA invention, protected by several global patent families
The seamless, strongconstruction of the
dispenser
The unique lock
The function of manualpaper loading
The feeding mechanism of the
cassette
A loading and retention mechanism for paper
refill, including the unique plug
The unique designof the complete
Washroom dispenser family
CMD 201261
Unify and Connect
SCA and our Product Brands
CMD 201262
SCA in the Volvo Ocean RaceEmpowering women
Strengthen the SCA and product brands Increase sales and commercial operations performance A stronger one company feeling
63 CMD 2012
CMD 2012
64
Summary
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
Branding and constant innovation creating profitable growth today and tomorrow
CMD 2012
SCA Consumer Goods EuropeMagnus Groth, President
CMD 2012
One face to retail Customers in Europe
74%
12%
5%7% 2%
Sales by category
Consumer tissue
Baby
Feminine
Incontinenceproducts Retail
Other (Cottonpads)
2011 net sales of SEK 24.5bn Consumer tissue biggest category Number of employees: 4,300
66
Consolidation and internationalizationMultichannel and multiformat Internet shoppingPromotions Retailer brands
CMD 201267
Trends in Retail
CMD 2012
Market PositionsEurope
30%
13%
12%
45%
SCA KC Sofidel Others
SCA #1
Growth rate: 3.6%
56%
12%
11%
21%
P&G KC SCA Others
50%
16%
8%
26%
P&G J&J SCA Others
SCA #3
Growth rate: 2.1%
SCA #3
Growth rate: 1.1%
Consumer Tissue Baby Feminine
68
CMD 2012
One face to the Retail customers
One Go to market approach
Dual-track strategy
69
Opportunities
EfficiencyGo to Market Advantage
Account Management Pricing Management
Trade Spend and Promotioneffectiveness
Shopper Engagement andCategory Management Execution at Retail
Sales Force Effectiveness Logistics Management
CMD 201270
Channel Management
Maximizing the Shopper journey Promotional Support
CMD 201271
Online Home Store Fixture
+14%
+20%
Confirmed contact with 61k shoppers
Innovation Baby private label success story
Strategic Partnerships Product innovation and improved quality Thin diapers meet consumer demandDedicated supply chain and retailer brand organization
72 CMD 2012
Secured new contracts and increased volumes with 50%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
73
Growth Consumer Tissue in Russia
Zewa Net Sales in Russia
CAGR*: 24%
CMD 2012
* Compound annual growth rate
CMD 2012
Summary
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
74
Strong supplier to Retailers Go to Market is a competitive advantage Innovations enable growing faster than the market
SCA AFH Professional Hygiene EuropeSune Lundin, President
Away From Home Business Overview
ProductsTork provides complete professional dispenser and refill systems for: Personal hygiene (hand wiping tissue, toilet
paper and soap) Products for wiping, cleaning and polishing
applications Napkins and related table-top products
Customers Industrial Trade and service Education Hotels, restaurants, catering Health care
76 CMD 2012
CMD 201277
DistributorsService providers
End Customers
Go to Market
CMD 2012
AFH tissueSCA is the global market leader
SCA is global No. 119 % market share
78
CMD 2012
SCA AFH Professional Hygiene EuropeBusiness overview
2011 net sales: SEK 7.2bn
Approx. 10,500 Employees in 2012
Clear No. 1 position with 31% market share
Market leader in all Regions with the best Supply Chain footprint
79
CMD 201280
Sustainability awareness
Innovation & Digital world
Hygiene awareness
Supply Chain Efficiency Strong market positions
Market growth in Europe
Many Opportunities
Growth
Market growth in Europe of 2%Capturing adjacent growth in the
hygiene sectorValue adding products and services
Soaps, disinfectants, cleaning solutions, washroom solutions and design
Well positioned for growth e.g. in Russia through local manufacturing
CMD 201281
Innovation
82 CMD 2012
CMD 2012
Summary
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
83
Strong market positions and good growth opportunities
Increased efficiency in supply chain
Sustainability as a differentiator
Innovations add value
SCA AmericasDon Lewis, President
CMD 2012
SCA Americas Business overview
85
2011 net sales SEK 15.6bn
8,300 employees
46%
19%
20%
9%6%
Sales by Category
AFH
Consumer tissue
Incontinence care
Feminine
Baby
56%22%
22%
Sales by Region
North Americas
South America
Mexico & CentralAmerica
CMD 2012
Market Positions North America
* CAGR 2012-2015Healthcare includes Institutions and HomecareSource: Global Market Database 2011
25%
18%
12%11%
34%
Incontinence care North America
K-C
SCA
Medline
First Quality
Other
AFH Growth rate*: 1.4%
Market position: #3
Incontinence care Growth rate*: 4.7%
Market position: #2
86
30%
21%20%
7%
22%
AFH North America
GP
K-C
SCA
Bay West
Other
CMD 2012
Market PositionsMexico & Central America
*CAGR 2012-2015
61%12%
6%
5%
16%
Mexico/Central America Tissue
K-C
SCA
FAPSA
P&G
Other
61%15%
9%
5%10%
Mexico/Central America Personal Care
K-C
SCA
Mabesa
P&G
Other
Tissue Growth rate*: 4.6%
Market positions: #2 Tissue
(#2 in Consumer tissue & AFH)
Personal Care Growth rate*: 4.8 %
Market positions: #2 Personal Care
(#1 Incontinence care; #1 Feminine,
#3 Baby)
87
CMD 2012
Market Positions South America
Tissue Growth rate*: 5.5%
Market positions: #3 Tissue (Consumer
tissue & AFH)
Personal Care Growth rate*: 4.8%
Market positions: #1 Incontinence;
#3 Feminine, #4 Baby
*CAGR 2012-2015
24%
19%
10%7%
40%
South America TissueCMPC
K-C
SCA
Santher
Other
24%
19%
10%10%
37%
South America Personal Care
K-C
P&G
J&J
SCA
Other
88
89
AFH tissue North America35% of sales from value added products
6%8% 9%
13%
16%
20%
26%
29%
33%35%
20092004 2005 2006 2007 20082003 2010 2011 2012 YTD
CMD 2012
CMD 201290
New tissue plant in MexicoImproved products and increased cost efficiency
CMD 2012
Mexican Incontinence category growing at 15% annually60+ age group to double by 2025Current consumption shows huge opportunitySCA the undisputed leader, 40% share
Mexico/Central America Incontinence market Opportunity ripe for SCA as category leader
91
CMD 201292
Leveraging strong Brands and Market share in Colombia with adjacent products
CMD 2012
Brazil Expansion2011 acquisition of Pro Descart for #2 market position in
incontinence products Incontinence market growing rapidly2012 TENA launch
93
CMD 201294
Summary
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
Insight-driven innovation fueling value added growth in North America, world’s largest hygiene marketsPowerful hygiene positions in the fast-growing Latin
American market
SCA Asia PacificUlf Söderström, President
CMD 2012
SCA Asia PacificBusiness overview
Net sales 2011: SEK 2bn*
2,900 employees 4 manufacturing plants and 14 OEM
(Malaysia, China, Taiwan) Strong global and regional brands
No.1 Incontinence brand in Asia (ex. Japan)
60%
3%
28%
8%
1%
Sales by category(post Everbeauty acq)
BabyFeminineIncontinence careConsumer tissueAFH
12%
8%
8%
2%17%
37%
4%4%
8%
Sales by regions 2011(post Everbeauty acq) China
Hong Kong
Japan JV
Korea
Taiwan
Malaysia
Philippines
Singapore
Thailand
96
* Excluding Australia and New Zeeland
CMD 2012
Market PositionsAsia
27%
21%15%
10%
9%
6%
5%4% 3%
Incontinence care
UCOtherLivedoDaioHakujujiKaoSCANepiaKami Shoji
CAGR* 2011-2017: 6.2%
27%
22%20%
9%
5%
5%5%
4% 3%
Baby
UCOtherP&GK-CKaoDSGSCAHengAnDaio
97
* Compound annual growth rate
CMD 2012
Market PositionsKey markets
Malaysia
Baby: 1
Incontinence care: 1
Feminine: 3
Hong Kong
Hankies and box facials: 1
Thailand
Baby: 3
Singapore
Baby: 3
China Mainland
Incontinence care: 2
Baby: 5
Asia
Incontinence care brand* 1
98
Japan
Incontinence care: 5
Taiwan
Incontinence care: 1
Baby: 5
* Excluding Japan
South Korea
Incontinence care: 2
CMD 2012
Market Opportunities
99
High organic hygiene growth in China
Many other fast emerging hygiene markets
Consolidation opportunities
More sophisticated consumers
Rising sustainability awareness
Significant social media influence
100 CMD 2012
Chinese Market
Biggest consumer group in the world 21 million new born babies in 2011 Age 60+ accounts for 13% of total population
Growing purchasing power
Increasing hygiene awareness
Actionable sustainability commitment
National sales & distribution network in China
Efficient low cost production sites
Strong economy segment brands
Successful integration program
Ambitious growth plans
Acquisition of EverbeautyLeading Asian personal care company
101 CMD 2012
102 CMD 2012
Innovation Case During 2012 R&D Asia continued it’s successful momentum and
achievement by launching the following new innovations*.
1. Flirt Value A more affordable TENA Belt
2. Libresse PureFresh Green Tea Odor Control Feminine hygiene range of sanitary pads and panty liners, with Green Tea scent and odor control feature
3. Tempo Toilet paper A premium quality toilet paper encompassing both Neutral and Applewood
* All innovations from start to launch within approx. 7 months
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
CMD 2012103
Summary
Asia is the engine of future hygiene growth
SCA Incontinence Care EuropeMargareta Lehmann, President
CMD 2012105
Incontinence CareSCA is the clear global market leader
SCA is global No. 125% market share
No. 2 has 9%
CMD 2012
SCA Incontinence Care EuropeBusiness overview
48%34%
18%
Channel SplitEuropean Incontinence Market
Home careInstitutionRetail
2011 net sales of SEK 9.5bn Clear European market
leader with 41% market share and strong positions in all channels
Approx. 1,000 employees All market segments in one
organization to secure synergies
106
CMD 2012
SCA 41%
Hartmann 13%
Ontex (incl Lille) 10%
TZMO 7%
P&G 5%
Artsana 4%
Indas 4%Attends 4%
Abena 3%Others 10%
European market growth rate 3%
Average Market Penetration 37%
Market PositionClear European No. 1 in Incontinence care
107
CMD 2012
Aging society
Low penetration rates Eastern Europe Light Incontinence (Lady & Men)
Increased awarenessof the category
Holistic view on care
Lobbying and Co-payment
TENA brand strength
Market OpportunitiesMany growth opportunities to exploit growth in TENA
108
Bakgrunds bild
CMD 2012109
0
200
400
600
800
1 000
1 200
Total world Europe China USA
20102017
+34%
+21%
Millions aged over 60 years old
Aging PopulationTotal population aged over 60 approaching 1 billion by 2017
+25%
+12%
Drive growth in selected market/segment combinations
Grow tender business profitably by develop tender excellence – influencing tender criterias
Increase competiveness in all quality tiers in the assortment
Drive Retail growth in all key markets
Grow Market share take>50% of market growth
CMD 2012110
Grow Penetration in Key segments
Increase market value by upgrading to new modern concepts, e.g. Pants
Increase usage & value by influencing reimbursement models
New users by innovation and communication
CMD 2012111
Average market
Pants Light Inco
Female
Light Inco Male
Examples MarketPenetration
%
10
20
30
40
50
60
70
80
Build on core competence to expand beyond absorbent products
Expand core competenceinto new service areas
Expand the Category Leverage TENA strength
CMD 2012112
Diagnostics
SAbsorbent
Incontinenceproducts
Patient hygiene
Skincare
Training
Service
Diagnostics
CMD 2012
Improve the Core
InnovationRight Product Offer
Drivenew areas
Upgrades &New Launches
Increased Heavy Incontinence development in all quality tiers
Promising launch program inLight Incontinence & Pants
Acquisition of new innovationconcepts; Diagnostics, Patient Hygiene
113
CMD 2012114
Summary
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
Global Brand with potential:• Growing market - demography and low penetration• Customer driven innovation• Expertise in continence management• Strong Go to market approach
CMD 2012115
SummaryTransformation
Leading brands and market positions
Strong product portfolio and innovations
Good growth opportunities
Substantial efficiency improvements
Profitability improvement
SUSTAINABILITY
EFFICIENCY INNOVATION GROWTH
Johan Karlsson, VP Investor RelationsTel: +46 8 788 51 30
Louise Tjeder, Director Investor RelationsTel: +46 8 788 51 62
IR Contacts:
Email: ir@sca.com Website: www.sca.com