Presentation of SCA Year-end report 2010

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  1. 1. Year-end Report 2010Jan Johansson, President and CEO Year-end Report 2010
  2. 2. Summary Full year 2010 EBIT increased 4%* 4%Higher volumes in all businessesHigher prices in Packaging and TissueSEK 1bn in cost savingsSignificant profit improvement in PackagingSEK 5.2bn in increased raw material costs5 2bnNegative currency impact Profit before tax increased 10%*10% Cash flow from current operations: SEK 7.4bn N t debt dNet d bt decreased b SEK 6b d by6bn Debt payment capacity improved to 35%* Excluding restructuring costs and adjusted for exchange rate movements 2 Year-end Report 2010
  3. 3. SCA Group Strategic Priorities Cost reductions in all Efficiency programs in SCA Group 5%* Personal Carebusiness areas ofPackaging and Forest Thin baby diaperSEK 1bnProducts Personal Care 2%** Tena Ultra thins Emerging markets 10%** Cash flow from Closure/Divestment Strong Tena valueof 18 packaging unitscurrent operations:tti assortment tt Tissue 2%**SEK 7.4bn Emerging markets 6%** Supply chain Tissue excellence and asset Tork Xpressnap Packaging 20%* utilization programs inCaf Tissue Europe Forest Products 3%** Tork Performance Restructuring program Tempo ice in Baby diapers in Packaging Europe Trueflo New tissue plant in ZeoCool Mexico Forest Products New Personal Care Increased value plant i Rl t in Russia i dd dadded*Adjusted for exchange rate movements, divestments and closures* *Adjusted for exchange rate movements3 Year-end Report 2010
  4. 4. Full year 2010 vs. 2009SCA market update k t d t Hygiene business G d volume growth i I Good l th in Incontinence care, F i i care and AFH ti tiFeminine d tissue Good sales growth in Emerging marketsPersonal Care 10%*Tissue 6%* Packaging and Forest Products Increased demand for Packaging Corrugated volumes increased 5% Corrugated prices increased 6% Publication paper volumes increased 3% Solid-wood product volumes increased 8% Significantly increased raw material prices g yp Raw material costs increased SEK 5.2bn Stronger SEK to other currencies Negative sales impact of SEK 7.2bn equivalent to 6%* Adjusted for exchange rate movements4Year-end Report 2010
  5. 5. Q4 2010 vs. Q4 2009SCA market update k t d t Hygiene business Higher volumes in all product categories Strong sales growth in Emerging marketsPersonal Care 16%*Tissue 11%* Packaging and Forest Products I Increased d d demand f P k id for Packaging Corrugated volumes increased 3% Corrugated prices increased 15% P bli ti paper volumes i Publicationl increased 7%d Solid-wood product volumes increased 11% Significantly increased raw material prices Raw material costs increased SEK 1.7bn Stronger SEK to other currencies g Negative sales impact of SEK 2bn equivalent to 7%* Adjusted for exchange rate movements5Year-end Report 2010
  6. 6. Full year 2010 resultsSEK millionsChange, Change,unless otherwise stated2010 2009%%**Net sales109,142110,857 -2 5***EBIT*9,6089,648 0 4EBIT margin* (%) i *8.8888.787Profit before tax* 8,4928,004 610Earnings per share (SEK) 7.90 7 906.78 6 78 17Cash flow from current operations7,399 11,490-36Debt/Equity ratio0.510.60* Excluding restructuring cost** Adjusted for exchange rate movements*** Adjusted for exchange rate movements and divestments6 Year-end Report 2010
  7. 7. Q4 2010 resultsSEK millions Q4Q4Change, Change,unless otherwise stated20102009Q4/Q4,%* Q4/Q4,%**Net sales27,564 27,50708***EBIT*2,567 2,56805EBIT margin* (%)9.39.3Profit before tax* 2,274 2,28005Earnings per share (SEK) 2 38 2.38 1 721.72 38Cash flow from current operations2,389 2,544 -6* Excluding restructuring cost** Adjusted for exchange rate movements*** Adjusted for exchange rate movements and divestments7 Year-end Report 2010
  8. 8. Q4 2010 vs. Q3 2010Summary Group S l i Sales increased 4%* d EBIT increased 3%** Profit before tax increased 3%** Business areas Personal Care, EBIT increased 10%** Improved price/mix Higher volumes Tissue, EBIT increased 9%* Higher volumes and prices Packaging, EBIT increased 15%* Higher prices and savings from restructuring program F Forest Products, EBIT decreased 13%***tP d t d d Higher raw material and energy costs Lower prices Negative currency impact of SEK 140m* Adjusted for exchange rate movements** Excluding restructuring costs and adjusted for exchange rate movements*** Excluding restructuring costs8 Year-end Report 2010
  9. 9. Net debtAnd debtA d d bt payment capacity titSEKm Net debt decreased SEK 6 bn%50 000 5036% 40%40 000 4033%35%33%30 000 3020 000 2010 000 1000 Q4 2009Q1 2010Q2 2010 Q3 2010 Q4 2010Net debtDebt payment capacity9Year-end Report 2010
  10. 10. Personal CareInitiatives 2010I iti ti Restructuring program in baby diapers in Europe Annual savings of EUR 15m with full effect in Q3 2011 Investment in local production in Russia Acquisition of Copamex baby diapers business No. 3 in Mexico Growth TTena h i has increased market shared k t h Market test of incontinence care products in China expanded Feminine care products launched in Malaysia and tampons in Sweden and the Netherlands Extended range of Libero baby care products Emerging market sales increased 10%* Innovation Tena Ultra thins Thin baby diaper Strong Tena value assortment* Adjusted for exchange rate movements10Year-end Report 2010
  11. 11. Personal CareQ4 2010 vs. Q4 2009 6,375 6,393 6,125, Sales flat (+6%*) Incontinence care increased 4%*0% Feminine care increased 5%* Baby diapers increased 8%* 8% Emerging markets increased 16%* Incontinence care 10%*SALES SEKmQ410 Q4 09 Q3 10 Baby diapers 21%* 21% Feminine care 12%* 901 735 697**-18% EBIT decreased by 18% (-12%*) Higher volumes Higher raw material costEBIT SEKm Q410 Q4 09 Q3 10 Increased investment inEBIT margin 11.5% 14.1% 11.4%**market activities* Adjusted for exchange rate movements** Excluding restructuring costs11 Year-end Report 2010
  12. 12. TissueInitiatives 2010I iti ti Implementation of price increases Investment in new tissue plant in Mexico European brand migration project Growth Tork has gained market share in Europe and North America Emerging market sales increased 6%*Innovation I ti Tork Xpressnap Caf Tork Performance Tempo Ice Tempo KidsTTempo toilet tissue t il t ti* Adjusted for exchange rate movements12 Year-end Report 2010
  13. 13. TissueQ4 2010 vs. Q4 200910,33810 338 Sales decreased by 2% (+5%*) 10,1549,924 Consumer tissue increased 6%* AFH tissue increased 4%*-2% Emerging markets increased 11%* g g Consumer tissue increased 14%* AFH tissue increased 3%*SALES SEKm Q410 Q4 09 Q3 10 EBIT decreased by 18% (-14%*)965 Higher raw material costs 787 753 Higher volumes -18% Higher prices Lower other production andenergy costsEBIT SEKmQ410 Q4 09 Q3 10EBIT margin7.8% 9.3% 7.6%* Adjusted for exchange rate movements13Year-end Report 2010
  14. 14. PackagingInitiatives 2010I iti ti Finalized restructuring program Annualized savings of SEK 1,070m Divestment of the Asian packaging operation Annual sales of USD 250m Price increases Innovation Trueflo ZeoCool14 Year-end Report 2010
  15. 15. PackagingQ4 2010 vs. Q4 2009 Sales increased 6% (+25%*) 7,405 6,960 7,392 Higher prices and volumes 6%* EBIT increased to 567 MSEK (149 MSEK**)() Higher prices and volumes Savings from restructuring program Higher raw material costsSALES SEKm Q410 Q4 09 Q3 10567 512281%** 149**EBIT SEKm Q410 Q4 09 Q3 10EBIT marging7.7% 2.1%** 6.9%* Adjusted for exchange rate movements, divestments and closures** Excluding restructuring costs15Year-end Report 2010
  16. 16. Forest ProductsInitiatives 2010I iti ti Efficiency project at Ortviken paper mill Annual savings of SEK 45m when fully realized Creation of Gll timber AB SCA Energy, new business unit SCAs deliveries of FSC certified publication paper SCA s increased 35%16Year-end Report 2010
  17. 17. Forest ProductsQ4 2010 vs. Q4 2009 Sales increased 2% (+4%*) 4,290 4,415 Higher volumes 4,201 Publication papers 2% Lower prices Solid-wood products and Pulp Higher pricesSALES SS S SEKm Q410 Q4 09 Q3 10 EBIT ddecreased 10%d 661 685** Higher volumes 592 Higher raw material and energy costs -10%10% Negative currency impact of SEK 260m Publication papers Lower prices Solid-wood products and PulpEBIT SEKm Q410 Q4 09 Q3 10 Higher pricesEBIT marging13.8% 15.7% 15.5%*** Adjusted for exchange rate movements** Excluding restructuring cost 17Year-end Report 2010
  18. 18. Dividend Proposed 8% increase of the dividend to SEK 4.00 (3.70) per share ()p18Year-end Report 2010
  19. 19. Outlook 2011 Good demand for all businesses Good growth in Emerging markets for Hygiene businesses Continued high raw material costs Increasing corrugated prices Price increases on publication papers19Year-end Report 2010
  20. 20. Q&A20 Year-end Report 2010
  21. 21. 21 Year-end Report 2010