2. SCA Group
Leading global hygiene and forest products company
CAGE conference in London 2March 2014
ď§ Sales of SEK 99bn*
ď§ 44,000 employees
ď§ Sales in about 100 countries
ď§ #1 or #2 positions in about 90 countries
ď§ Strong brands;
ďˇ TENA and Tork are leading global brands for
incontinence products and AfH tissue
ď§ Chinaâs third largest tissue company
ď§ Europeâs largest private forest owner
ď§ Europeâs second-largest sawmill company
ď§ Several of the worldâs most prestigious sustainability awards
* Sales number based on SCAâs 2013 sales according to new and amended reporting standards and
including Vindaâs annualized 2013 half-year sales.
3. ď§ Divestment of the Packaging business, excluding the two kraftliner mills
ď§ Acquisition of Georgia-Pacificâs European tissue operations
ď§ Acquired majority ownership in Vinda
ď§ Strengthened positions in emerging markets
ďˇ Acquisition of Everbeauty in Asia
ďˇ Acquisition of PISA in Chile
ďˇ Investment in India
ď§ Joint venture in Australia/New Zealand
ď§ Divestment of Aylesford Newsprint and Laakirchen publication paper mills
ď§ Efficiency programs
ď§ New hygiene organization
Transformation of SCA
CAGE conference in London 3March 2014
4. ď§ 2012 Sales: approximately SEK 5bn
ď§ Extensive distribution network across China
ďˇ More than 300,000 points of sales
ď§ Strong brand
ď§ No. 3 in China
Acquired Majority Ownership in Vinda
Leading tissue company in China
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6. CAGE conference in London
SCA Group
2013 Sales and EBIT by Business Area
32%
51%
17%
EBIT
16%
Tissue
Personal CareForest Products Sales
6March 2014
EBIT
32%
EBIT
52%
7. 52%31%
17%
62%
38%
March 2014 CAGE conference in London 7
Feminine care
Baby diapers
75%Â branded
IncontinenceÂ
products
Personal Care
AfH tissue
Consumer tissue
54%Â branded
Tissue
SCA Group
2013 Sales by Product Segment
9. Financial Targets
* Annual organic sales growth
** Return on capital employed
Sales growth* ROCE**
Personal Care 5-7% 30%
Tissue 3-4% 15%
Forest Products in line with market in top quartile
Group
Business areas
CAGE conference in London 9March 2014
Debt/Equity 0.70
Debt payment capacity above 35%
Dividend policy 1/3 of cash flow from current operations
10. 10
Efficiency Programs
ď§Hygiene business cost and productivity program
ď§ Annualized cost savings in Q4 2013: approx. EUR 175m
ď§ Total annual cost savings of EUR 300m, full effect in 2015
ď§Georgia-Pacific synergies
ď§ Annualized cost savings in Q4 2013: approx. EUR 55m
ď§ Total annual cost savings of EUR 125m, full effect in 2016
ď§Forest Products efficiency program
ď§ Annualized earnings improvement in Q4 2013: SEK 980m
ď§ Total annual earnings improvement of SEK 1,300m, full effect in 2015
March 2014 CAGE conference in London
11. Innovation drives Profitable Growth
Strengthens market positions and profitability
March 2014 CAGE conference in London 11
12. Growth
ď§ Sales growth of 10%* in 2013
ď§ Good growth in emerging markets
ďˇ Personal Care sales growth of 10%** in 2013
ďˇ Tissue sales growth of 13%** in 2013
ď§ Acquired majority ownership in Vinda
ď§ Investment in India
ďˇ Launch of Libero and Tempo
* 2013 compared with 2012, excluding exchange rate effects and divestments
** 2013 compared with 2012, excluding exchange rate effects
March 2014 CAGE conference in London 12
13. ď§ Global population growth
ď§ An aging population
ď§ Increased market penetration
ď§ Higher disposable income
ď§ Customers and consumers demand
more comfort and sustainability
Market Drivers
Good growth opportunities
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14. Aging Population
Total population over 60 years exceeding 1 billion by 2020
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0
200
400
600
800
1Â 000
1Â 200
Total world Europe China USA
2013
2020
+30%
+22%
Millions over
60 years old
+25%
+13%
15. 15
Western Europe Eastern Europe Latin America AsiaNorth America
Usage of Hygiene productsÂ
Units/person with incontinence/year Units/child up to 2.5 years/year Units/woman 15-49 years/year Kg/capita/year
CAGE conference in LondonMarch 2014
0
100
200
300
400
500
600
700
0
100
200
300
400
0
5
10
15
20
25
Incontinence Products Baby Diapers Feminine Care Tissue
Hygiene Products
High potential in markets with low penetration
0
500
1Â 000
1Â 500
2Â 000
16. Growth
Good growth in Emerging markets
* 2013 compared with 2012, excluding exchange rate effects
42%
58%
20%
80%
Personal Care Tissue
Mature
markets
Emerging
markets
Mature
markets
Emerging
markets
Growth in
Emerging
Markets 2013: 10%* 13%*
16
26%
74%
Group
Mature
markets
Emerging
markets
11%*
CAGE conference in LondonMarch 2014
17. * Excluding exchange rate effects and divestments
** Excluding divestments
*** Excluding items affecting comparability, exchange rate effects, divestments and
including gains on forest swaps of SEK 583m (91) before tax
Summary
2013 vs 2012
ď§ Sales increased 10%*
ď§ Hygiene business, 12%*
ď§ Forest Products, 0%**
ď§ EBIT increased 19%***
ď§ Proposed increase in the dividend by 5.6%
to SEK 4.75 per share
March 2014 CAGE conference in London 17