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
* In January 2012 SCA announced that the Packaging business, excluding the two kraftliner mills, are being divested
2 June 2012
3. SCA Group
Major changes
Acquisition of Georgia-Pacific’s European tissue operations
Divestment of the Packaging business, excluding
the two kraftliner mills
Established joint venture in Australia/New Zealand
Acquisition of Everbeauty an Asian hygiene products company
Increased shareholding in Vinda
Acquisition of PISA in Chile
New hygiene organization
Acquisition of PLF a French solid-wood products company
3 June 2012
4. Acquisition of Georgia-Pacific’s
European tissue operations
Creates a leading European tissue
company
Strengthens SCA’s product offering and
geographic presence
Sales: EUR 1.25bn
Purchase price: EUR 1.32bn
Annual synergies: EUR 125m
With full implementation of synergies,
earnings per share are expected to
increase by approximately SEK 1.70
4 June 2012
5. Georgia-Pacific acquisition
Substantial synergies
Increased supply chain efficiency
Optimization of logistics
More efficient sourcing
Improved SG&A and A&P efficiency
Annual synergies: EUR 125m
Improves Tissue EBIT margins by
2-2.5 percentage points
Full effect in 3 years after closing
Related costs: EUR 130m
5 June 2012
6. Georgia-Pacific acquisition
Enhances SCA’s presence in Consumer and AFH tissue
European Consumer tissue market
25% SCA SCA and GP
35%
European AFH tissue market
SCA and GP
SCA
20% 30%
6 June 2012
7. Acquisition of Everbeauty
Leading Asian personal care company
Sales: SEK 1.6bn*
Sales split: baby diapers 60% and incontinence
products 40%
Purchase price: SEK 1.9bn
Sales in China, Taiwan and Southeast Asia
Strong brands, market positions and distribution
• Incontinence care products
• No. 2 in China and No. 1 in Taiwan
• Baby diapers
• No. 5 in China and Taiwan
* 2010 sales
7 June 2012
8. 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: EUR 1.7bn on a debt-free basis
Earnings per share declines by SEK 0.73*
* Based on earnings for the period for 2011
8 June 2012
9. 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
9 June 2012
10. SCA Group
Hygiene business is growing
% of net sales
~20%*
54% 40%
46% 60% ~80%*
Forest Products and Hygiene products
Packaging (Personal Care and Tissue)
* Provided that the Packaging divestment and the acquisition of Georgia-Pacific’s European tissue business are closed according to plan.
10 June 2012
14. 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
14 June 2012
16. Growth
Organic growth of 4%*
High growth in emerging markets
Acquisition of Georgia-Pacific´s European tissue
operations
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
Acquisition of Everbeauty an Asian personal care
company
Continued expansion of wind power opportunities
Ongoing projects totalling 4 TWh
* Q1 2012 compared with Q1 2011, excluding exchange rate movements and divestments
16 June 2012
17. Growth
Growth potential for hygiene products
Global population growth
An aging population
Increased market penetration
Higher disposable income
Customers and consumers demand
more comfort and sustainability
17 June 2012
18. Growth
High potential in markets with low penetration
Usage of hygiene products
Units/capita/year Units/child/year Units/woman/year Kg/capita/year
North America Western Europe Eastern Europe Latin America Asia
18 June 2012
19. Growth
High growth in Emerging markets
Q1 2012
Emerging markets sales growth:
Personal Care: +23%*
Tissue: +14%*
% of Personal Care sales % of Tissue sales
Emerging markets 18% Emerging markets
35%
Mature markets Mature markets
* Adjusted for exchange rate movements
19 June 2012