2. SCA
leading
one of three
hygiene companies
worldwide
2 16 November 2010
3. SCA Group
A global hygiene products and paper company
Net sales SEK 111bn
45,000 employees and sales in more than
100 countries
World’s third largest hygiene products
company
TEN and Tork leading global brands for
incontinence care and Away From Home
tissue
Europe’s largest private forest owner
Europe’s second largest packaging company
3 16 November 2010
4. SCA Group
Hygiene business is growing
% of net sales
100%
80% 40%
58%
60%
40%
60%
20% 42%
0%
1999
1997 2009
2008 09
Packaging and Hygiene products
Forest Products
4 16 November 2010
5. SCA Group
Sales and EBIT split first nine months 2010
EBIT split EBIT split
Forest Products Sales split Personal Care
25% 30%
15% 22%
27%
36%
14% 31%
Packaging Tissue
5 16 November 2010
6. Leading market positions
Global and regional
Nordic region
Incontinence care: 1
Baby diapers: 1
North America AFH tissue: 1
AFH tissue: 3 Consumer tissue: 2
Incontinence care: 3
Europe
Tissue: 1
Corrugated board: 2
Mexico Baby diapers: 3
Incontinence care: 1 Incontinence care: 1
Tissue: 2
Privately owned forests: 1
Feminine care: 3
Baby: 3 Global
Incontinence care: 1
Colombia
AFH tissue: 3 Australia
Incontinence care: 1
Feminine care: 1 Feminine care: 1
Tissue: 1 Incontinence care: 1
Tissue: 2
6 16 November 2010
8. Growth
High potential in markets with low penetration
Usage of hygiene products
Units/capita/year Units/child/year Units/woman/year Kg/capita/year
Penetration
in mature
markets
around 35%
North America Western Europe Eastern Europe Latin America Asia
8 16 November 2010
9. Our growth markets
Strong SCA positions
Good market growth
Favourable socio-demographics
Joint venture
Good market growth
Favourable socio-demographics
Market tests of Incontinence care
products
9 16 November 2010
10. Increased pace of innovation
Strengthens market positions
10 16 November 2010
11. Hygiene business
Sales split first nine months 2010
Away-From- Incontinence
Home tissue care
24% 21%
Baby
10%
11% diapers
7%
38%
Consumer
tissue Feminine
care
11 16 November 2010
12. Hygiene business
Strategic focus
Strengthen leading positions
Maintain Tena leadership in premium
segment and increase growth in economy
segment
Drive innovation
Increase value added and branded
Grow in prioritized Emerging markets
Increased share of no.1 and no.2 positions
Improve profitability in Consumer tissue and
Baby diapers
12 16 November 2010
13. Q3 2010 vs Q3 2009
SCA market update
Significantly increased raw material prices
Pulp, OCC, recovered paper
Raw material costs increased SEK 1.8bn
Stronger SEK to other currencies
Negative sales impact of SEK 1.5bn equivalent to 6%
Hygiene business
Good growth for Incontinence care, Feminine care and AFH tissue
Continued good growth in emerging markets
Packaging and Forest Products
Increased demand for Packaging
• Corrugated volumes increased 4%
Publication paper volumes flat
Increased volumes for solid-wood products and pulp
13 16 November 2010
14. Q3 2010 results
SEK millions Q3 Q3 Change, Change, Q2
unless otherwise stated 2010 2009 Q3/Q3,%* Q3/Q3,%** 2010
Net sales 27,204 27,108 0 6 27,652
EBIT* 2,574 2,576 0 2 2,440
EBIT margin* (%) 9.5 9.5 8.8
Profit before tax* 2,274 2,199 3 2,196
Earnings per share (SEK) 1.95 1.82 7 2.04
Cash flow from current operations 2,194 4,259 1,668
* Excluding restructuring cost
** Adjusted for exchange rate movements
14 16 November 2010
15. Outlook 2010
Hygiene businesses
Good demand
Seasonally weaker demand in Q4 for AFH tissue North America
Full impact in Q4 of price increases in Tissue
Packaging
Seasonally weaker demand in Q4
Increasing prices
Forest Products
Good demand
15 16 November 2010
