Presentation of SCAs Interim Report Q3 2014

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    29-Jun-2015

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SCA had yet another strong quarter and despite higher competition and low growth in mature markets, we delivered good organic sales growth. Learn more: http://sca.com/en/IR/Reports/Interim-reports/Reports/2014/2014-Q3/

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  • 1. SCA Interim ReportQ3 2014

2. Q3 2014Current EnvironmentWeak development of the global economyGeo-political conflictsLow growth in mature markets and good growth inemerging markets for hygiene productsCompetitive market environmentHigher raw material prices and FX headwinds due tostronger USDIncreased European demand for kraftliner and solid-woodproducts but lower demand for publication papersOctober 29, 2014 SCA Interim Report Q3 2014 2 3. SummaryQ3 2014 vs. Q3 2013Strong increase of operating profit and cash flowGood organic sales growthContinued work with cost efficiencySeveral launches of new innovations and productsLibresse, Lotus, Saba, Tempo and TorkSCAs transfer of Chinese hygiene business to Vinda closedReceived top score in Climate Disclosure Leadership IndexOctober 29, 2014 SCA Interim Report Q3 2014 3 4. GroupQ3 2014 vs. Q3 2013Organic Sales Growth Operating Profit*SalesSEK26,594m+16%SEK3,035m+16%+4%Operating Margin* EPS Operating Cash Flow11.4%+/-0 bp* Excluding items affecting comparabilitySEK 2,68+30%SEK4,015m+59%October 29, 2014 SCA Interim Report Q3 2014 4 5. Efficiency ProgramsHygiene business cost and efficiency programBlueprint implementation in all sitesScale effects for sourcing realizedWarehouse efficiency programs and footprint projectsGeorgia-Pacific synergiesBlueprint implementation on-goingFootprint optimization on-going and three sites closedMost of scale effects for sourcing of raw materials realizedForest Products efficiency programClosure of two saw millsRationalization of maintenance organizationHigher productivity in harvesting activitiesOctober 29, 2014 SCA Interim Report Q3 2014 5 6. Efficiency ProgramsExamples of improvements1101009080Personal CareMachine EfficiencyConverting2012 2013 YTD 20141101009080TissueMachine EfficiencyConverting2012 2013 YTD 20141101009080TissueMachine EfficiencyPapermaking2012 2013 YTD 20141101009080Personal Care and TissueSourcing Costs2012 2013 YTD 20141101009080Personal Care and TissueLogistics Costs2012 2013 YTD 20141101009080TissueEnergy Consumption2012 2013 YTD 2014October 29, 2014 SCA Interim Report Q3 2014 6IndexIndexIndexIndexIndexIndex 7. Innovations and Product LaunchesQ3 2014Libresse Maxi NightSecure Saba Invisible, Saba Ultra Extra security & comfort for night time Worry free sleep for a fresh morning Next generation multi-color print ontowels with a three color print design Print is essential to communicatefunction - strengthen performancecredentials (printed barriers in variouscolors signal different protection levels) Patented and innovative disposalsolution for sanitary towels Self-sealing edges to tightly secure allsides of the wrapper for discreet andhygienic disposal anywhere/anytimeSCA Interim Report Q3 2014 7Libresse Roll.Press.GoOctober 29, 2014 8. Innovations and Product LaunchesQ3 2014Tempo ProtectTMTork Xpressnap Image line napkindispensers with Tork XpressnapExtra Soft Leaf Design napkinsLotus Handkerchief New Tempo Protect antibacterialhankies and wet wipes For the image-consciousestablishments where details matter Reduces napkin usage by at least 25%compared to traditional dispensers Premium 2-ply napkins for softnesswith an elegant leaf design Winner of Red Dot Product Designaward in 2014 With lotus extracts Reinforces softness and well-beingperception On Lotus Pur Blanc, Lotus Compactand Lotus ClassicOctober 29, 2014 SCA Interim Report Q3 2014 8 9. Net SalesQ3 2014 vs. Q3 2013SEK 23,002mNet salesQ3 2013+1%+3%+5%+7%SEK 26,594m+16%Price/Mix Volume Acquisition Currency Net salesQ3 2014Organic sales growth 4%Price/Mix +1%Volume +3%October 29, 2014 SCA Interim Report Q3 2014 9 10. GroupOrganic Sales Growth Q3 2014 vs. Q3 2013By regionTotal MatureMarketsEmergingMarkets Mature markets Low growth in mature markets- Tissue in Western Europe -1%- Personal Care in Western Europe +3%- AfH tissue in North America +2% Emerging markets Strong growth in Eastern Europe, Russiaand Latin America- Incontinence products in Russia +27%- Tissue in Russia +15%- Incontinence products in Latin America +19%- Feminine care in Latin America +11%- Tissue in China +22%October 29, 2014 SCA Interim Report Q3 201410+4%+2%+9% 11. GroupQ3 2014 vs. Q3 2013Operating profit increased 16%*Organic operating profit growth 6%**Better price/mixHigher volumesCost savingsConsolidation of VindaHigher raw material costsOperating margin flat at 11.4%*Earnings per share increased 30%Operating cash flow increased 59%Operating Profit*SEK 3,035m+16%Q3 2014SEK 2,625mQ3 2013Operating Margin*11.4% 11.4%* Excluding items affecting comparability** Excluding items affecting comparability, exchange rate effects and consolidation of China+/-0 bpQ3 2013 Q3 2014Earnings per ShareSEK 2.68SEK 2.06+30%Q3 2013 Q3 2014October 29, 2014 SCA Interim Report Q3 2014 11 12. Personal CareQ3 2014 vs Q3 2013Net Sales Operating Profit*Operating Margin*SEK 7,382m SEK 7,968m SEK 880m SEK 897m 11.9%11.3%+8% +2%-60 bpQ3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014Organic Sales Growthby Region+4%+2%+6%Mature EmergingTotalMarketMarket+4%Total% of PersonalCare Sales 58% 42%* Excluding items affecting comparability Sales growth 8% Organic sales growth 4% Price/mix +0% Volume +4% Strong growth in emerging markets Growth in all product segments Strong growth for feminine care Operating profit increased 2%* Higher volumes Cost savings Higher raw material costs partly dueto stronger USD Operating margin 11.3%*Organic Sales Growthby Product Segment+3%IncontinenceProducts+2%BabyDiapers+9%FeminineCare52% 30% 18%October 29, 2014 SCA Interim Report Q3 2014 12 13. TissueQ3 2014 vs Q3 2013Net Sales Operating Profit*Operating Margin*SEK 14,473mSEK 11,910mSEK 1,740mSEK 1,524m12.8%12.0%+22% +14%-80 bpQ3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014Organic Sales Growthby Region+1% 0%+9%+1%Mature EmergingTotalMarketMarketTotal% of Tissue Sales 70% 30% 63% 37%* Excluding items affecting comparability Sales growth 22% Organic sales growth 1% Price/mix 0% Volume +1% Strong growth in emerging markets Operating profit increased 14%* Higher volumes Cost savings Consolidation of Vinda Lower energy costs Higher raw material costs Higher distribution costs Lower profit in AfH tissue North Americadue to increased competition Operating margin 12.0%* Margin at same level as last yearexcluding VindaOrganic Sales Growthby Product Segment+0%ConsumerTissue+2%AfHTissueOctober 29, 2014 SCA Interim Report Q3 2014 13 14. Forest ProductsQ3 2014 vs Q3 2013Net Sales Operating Profit*Operating Margin*SEK 3,843mSEK 4,237mSEK 613m 14.5%+46% +360 bpSEK 420m 10.9%+10%Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013* Excluding items affecting comparabilityQ3 2014 Sales growth 10% Price/mix +4% Volume +5% Currency +1% Growth in all product segments Operating profit increased 46%* Higher prices (including exchange rate effects) Cost savings Lower energy costs Higher harvesting costs Operating margin 14.5%*October 29, 2014 SCA Interim Report Q3 2014 14 15. SummaryQ3 2014 vs. Q3 2013Strong increase of operating profit and cash flowGood organic sales growthSeveral launches of new innovations and productsLibresse, Lotus, Saba, Tempo and TorkSCAs transfer of Chinese hygiene business to Vinda closedGlobal EnvironmentLow growth in mature markets and good growth in emerging markets forhygiene productsHigher raw material prices and FX headwinds due to stronger USDOctober 29, 2014 SCA Interim Report Q3 2014 15 16. Q&AOctober 29, 2014 SCA Interim Report Q3 2014 16