SCA Capital Market Day 2012

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


Feminine care: 1

Tissue: 1

Baby diapers 2

Nordic region


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


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


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


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


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


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


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


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


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


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


Baby: 5

Asia

Incontinence care brand* 1

98

Japan


Taiwan


Baby: 5

* Excluding Japan

South Korea


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


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


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


Johan Karlsson, VP Investor RelationsTel: +46 8 788 51 30

Louise Tjeder, Director Investor RelationsTel: +46 8 788 51 62

IR Contacts:

Email: [email protected] Website: www.sca.com

SCA Capital Market Day 2012

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Transcript of SCA Capital Market Day 2012