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1 January – 30 June 2013
SCA Interim Report
July 18, 2013 SCA Interim Report Q2 2013 1
 Weak global growth
 Weak Western Europe
 Increased confidence in some recovery in the US
 Tissue
 Some growth in Europe and North America
 High growth in Emerging markets
 Personal Care
 Good demand for incontinence products in Europe
 Stable demand for baby diapers and feminine care in Western Europe
 Good growth in Emerging markets
 Forest Products
 Improved global market for solid-wood products
 Improved European market for kraftliner
 Decreased demand for publication paper
July 18, 2013 SCA Interim Report Q2 2013 2
Macro update
 Sales growth 18%*
 Hygiene business, 21%**
• Acquisitions
• Higher volumes
• Good growth in Emerging markets
 Forest Products, -4%***
• Lower prices including currency effects
• Higher volumes
 EBIT increased 5%****
 Acquisitions
 Higher volumes
 Cost savings
 Operating cash flow decreased 37%
July 18, 2013 SCA Interim Report Q2 2013 3
Summary
Q2 2013 vs. Q2 2012
* Excluding exchange rate effects and divestments
** Excluding exchange rate effects
*** Excluding divestments
**** Excluding items affecting comparability and exchange rate effects
Efficiency programs
 Hygiene business cost and productivity program
 Achieved cost savings Q2 2013: SEK 231m
 Annualized cost savings in Q2 2013: EUR 110m
 Total annual cost savings of EUR 300m, full effect in 2015
 Georgia-Pacific synergies
 Achieved cost savings Q2 2013: SEK 87m
 Annualized cost savings in Q2 2013: EUR 40m
 Total annual cost savings of EUR 125m, full effect in 2016
 Forest Products efficiency program
 Achieved earnings improvement Q2 2013: SEK 110m
 Annualized earnings improvement in Q2 2013: SEK 440m
 Total annual earnings improvement of SEK 1,300m, full effect in
2015
July 18, 2013 SCA Interim Report Q2 2013 4
Q2 2013 Results
July 18, 2013 SCA Interim Report Q2 2013 5
SEK millions Q2 Q2
unless otherwise stated 2013 2012 Change, % Change, %
Net sales 22,145 20,273 9 18 **
EBIT* 2,156 2,105 2 5 ***
EBIT margin* (%) 9.7 10.4
Profit before tax* 1,943 1,789 9 11 ***
Earnings per share (SEK) 1.63 1.85
Operating cash flow 1,499 2,391 -37
Debt/Equity ratio 0.55 0.41
* Excluding items affecting comparability
** Excluding exchange rate effects and divestments
*** Excluding items affecting comparability and exchange rate effects
 Group
 Sales increased 4%*
 EBIT increased 3%**
 Business areas
 Personal Care, EBIT flat***
 Higher volumes
 Cost savings
 Higher raw material costs
 Tissue, EBIT increased 11%**
 Higher volumes
 Cost savings
 Higher raw material costs
 Forest Products, EBIT increased 9%**
 Higher prices
 Cost savings
 Costs for maintenance stops
July 18, 2013 SCA Interim Report Q2 2013 6
Q2 2013 vs. Q1 2013
Summary
* Excluding divestments
** Excluding items affecting comparability and divestments
*** Excluding items affecting comparability
July 18, 2013 SCA Interim Report Q2 2013 7
Personal Care
Q2 2013 vs. Q2 2012
Q2 2012   Q2 2013
EBIT margin** 12.0%
EBIT** SEKm Q2 2012  Q2 2013
* Excluding exchange rate effects
** Excluding items affecting comparability
*** Excluding items affecting comparability and exchange rate effects
4%
6,7646,530
3%**
806781
11.9%
SALES SEKm
 Sales growth 4% (10%*)
 Incontinence products increased 6%*
 Baby diapers increased 7%*
 Feminine care increased 8%*
 Emerging markets increased 16%*
 EBIT increased 3%** (3%***)
 Higher volumes
 Acquisitions
 Cost savings
 Increased marketing activities
 Higher raw material costs
July 18, 2013 SCA Interim Report Q2 2013 8
Tissue
Q2 2013 vs. Q2 2012
EBIT margin**
EBIT** SEKm
11.1%10.8 %
SALES SEKm Q2 2012   Q2 2013
Q2 2012   Q2 2013
27%**1,021
1,295
* Excluding exchange rate effects
** Excluding items affecting comparability
*** Excluding items affecting comparability and exchange rate effects
 Sales growth 23% (28%*)
 Consumer tissue increased 30%*
 AFH tissue increased 26%*
 Emerging markets increased 14%*
 EBIT increased by 27%** (33%***)
 Acquisitions
 Cost savings
 Higher volumes
23%
11,650
9,461
July 18, 2013 SCA Interim Report Q2 2013 9
Forest Products
Q2 2013 vs. Q2 2012
‐22%
EBIT margin** 6.6%8.9%
‐42%**
3,788
4,868
250
433
SALES SEKm Q2 2012   Q2 2013
Q2 2012   Q2 2013EBIT** SEKm
* Excluding divestment
** Excluding items affecting comparability
 Sales decreased 22% (-4%*)
 Publication papers, decreased sales
• Lower prices
• Divestments
 Solid-wood products, increased sales
• Higher volumes
 Kraftliner, decreased sales
• Lower volumes
• Higher prices
 Pulp, decreased sales
• Lower prices
 EBIT decreased 42%**
 Lower prices
 Negative currency effects
 Costs for maintenance stops
 Cost savings
 Lower raw material costs
Summary
July 18, 2013 SCA Interim Report Q2 2013 10
 Higher sales and profit for the hygiene businesses
 Good growth rates in Emerging markets
 Lower profit in Forest Products
 Efficiency programs delivering according to plan
July 18, 2013 SCA Interim Report Q2 2013 11
Q&A
SCA Presentation - Interim report for Q2 2013

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SCA Presentation - Interim report for Q2 2013

  • 1. 1 January – 30 June 2013 SCA Interim Report July 18, 2013 SCA Interim Report Q2 2013 1
  • 2.  Weak global growth  Weak Western Europe  Increased confidence in some recovery in the US  Tissue  Some growth in Europe and North America  High growth in Emerging markets  Personal Care  Good demand for incontinence products in Europe  Stable demand for baby diapers and feminine care in Western Europe  Good growth in Emerging markets  Forest Products  Improved global market for solid-wood products  Improved European market for kraftliner  Decreased demand for publication paper July 18, 2013 SCA Interim Report Q2 2013 2 Macro update
  • 3.  Sales growth 18%*  Hygiene business, 21%** • Acquisitions • Higher volumes • Good growth in Emerging markets  Forest Products, -4%*** • Lower prices including currency effects • Higher volumes  EBIT increased 5%****  Acquisitions  Higher volumes  Cost savings  Operating cash flow decreased 37% July 18, 2013 SCA Interim Report Q2 2013 3 Summary Q2 2013 vs. Q2 2012 * Excluding exchange rate effects and divestments ** Excluding exchange rate effects *** Excluding divestments **** Excluding items affecting comparability and exchange rate effects
  • 4. Efficiency programs  Hygiene business cost and productivity program  Achieved cost savings Q2 2013: SEK 231m  Annualized cost savings in Q2 2013: EUR 110m  Total annual cost savings of EUR 300m, full effect in 2015  Georgia-Pacific synergies  Achieved cost savings Q2 2013: SEK 87m  Annualized cost savings in Q2 2013: EUR 40m  Total annual cost savings of EUR 125m, full effect in 2016  Forest Products efficiency program  Achieved earnings improvement Q2 2013: SEK 110m  Annualized earnings improvement in Q2 2013: SEK 440m  Total annual earnings improvement of SEK 1,300m, full effect in 2015 July 18, 2013 SCA Interim Report Q2 2013 4
  • 5. Q2 2013 Results July 18, 2013 SCA Interim Report Q2 2013 5 SEK millions Q2 Q2 unless otherwise stated 2013 2012 Change, % Change, % Net sales 22,145 20,273 9 18 ** EBIT* 2,156 2,105 2 5 *** EBIT margin* (%) 9.7 10.4 Profit before tax* 1,943 1,789 9 11 *** Earnings per share (SEK) 1.63 1.85 Operating cash flow 1,499 2,391 -37 Debt/Equity ratio 0.55 0.41 * Excluding items affecting comparability ** Excluding exchange rate effects and divestments *** Excluding items affecting comparability and exchange rate effects
  • 6.  Group  Sales increased 4%*  EBIT increased 3%**  Business areas  Personal Care, EBIT flat***  Higher volumes  Cost savings  Higher raw material costs  Tissue, EBIT increased 11%**  Higher volumes  Cost savings  Higher raw material costs  Forest Products, EBIT increased 9%**  Higher prices  Cost savings  Costs for maintenance stops July 18, 2013 SCA Interim Report Q2 2013 6 Q2 2013 vs. Q1 2013 Summary * Excluding divestments ** Excluding items affecting comparability and divestments *** Excluding items affecting comparability
  • 7. July 18, 2013 SCA Interim Report Q2 2013 7 Personal Care Q2 2013 vs. Q2 2012 Q2 2012   Q2 2013 EBIT margin** 12.0% EBIT** SEKm Q2 2012  Q2 2013 * Excluding exchange rate effects ** Excluding items affecting comparability *** Excluding items affecting comparability and exchange rate effects 4% 6,7646,530 3%** 806781 11.9% SALES SEKm  Sales growth 4% (10%*)  Incontinence products increased 6%*  Baby diapers increased 7%*  Feminine care increased 8%*  Emerging markets increased 16%*  EBIT increased 3%** (3%***)  Higher volumes  Acquisitions  Cost savings  Increased marketing activities  Higher raw material costs
  • 8. July 18, 2013 SCA Interim Report Q2 2013 8 Tissue Q2 2013 vs. Q2 2012 EBIT margin** EBIT** SEKm 11.1%10.8 % SALES SEKm Q2 2012   Q2 2013 Q2 2012   Q2 2013 27%**1,021 1,295 * Excluding exchange rate effects ** Excluding items affecting comparability *** Excluding items affecting comparability and exchange rate effects  Sales growth 23% (28%*)  Consumer tissue increased 30%*  AFH tissue increased 26%*  Emerging markets increased 14%*  EBIT increased by 27%** (33%***)  Acquisitions  Cost savings  Higher volumes 23% 11,650 9,461
  • 9. July 18, 2013 SCA Interim Report Q2 2013 9 Forest Products Q2 2013 vs. Q2 2012 ‐22% EBIT margin** 6.6%8.9% ‐42%** 3,788 4,868 250 433 SALES SEKm Q2 2012   Q2 2013 Q2 2012   Q2 2013EBIT** SEKm * Excluding divestment ** Excluding items affecting comparability  Sales decreased 22% (-4%*)  Publication papers, decreased sales • Lower prices • Divestments  Solid-wood products, increased sales • Higher volumes  Kraftliner, decreased sales • Lower volumes • Higher prices  Pulp, decreased sales • Lower prices  EBIT decreased 42%**  Lower prices  Negative currency effects  Costs for maintenance stops  Cost savings  Lower raw material costs
  • 10. Summary July 18, 2013 SCA Interim Report Q2 2013 10  Higher sales and profit for the hygiene businesses  Good growth rates in Emerging markets  Lower profit in Forest Products  Efficiency programs delivering according to plan
  • 11. July 18, 2013 SCA Interim Report Q2 2013 11 Q&A