Handelsbanken conference. Jan Johansson, President and CEO

Handelsbanken conference Jan Johansson, President and CEO SCA Group Leading global hygiene and forest products company      Sales of SEK 99bn*...
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Handelsbanken conference Jan Johansson, President and CEO

SCA Group Leading global hygiene and forest products company     

Sales of SEK 99bn* 44,000 employees Sales in about 100 countries #1 or #2 positions in about 90 countries Strong brands;  TENA and Tork are leading global brands for incontinence products and AfH tissue

 China’s third largest tissue company  Europe’s largest private forest owner  Several of the world’s most prestigious sustainability awards

* Sales number based on SCA’s 2013 sales according to new and amended reporting standards and including Vinda’s 2013 sales. September 8, 2014

Handelsbanken Large Cap Conference

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Transformation of SCA Divested the Packaging business, excluding two kraftliner mills Acquired Georgia-Pacific’s European tissue operations Majority shareholder in the Chinese tissue company Vinda Strengthened positions in emerging markets Acquisition of Everbeauty in Asia Acquisition of PISA in Chile Investment in India Floated joint venture in Australia, New Zealand and Fiji Divested the Aylesford Newsprint and Laakirchen publication paper mills Efficiency programs

September 8, 2014

Handelsbanken Large Cap Conference

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SCA and Vinda to integrate hygiene business in China SCA to transfer its hygiene business in China (Mainland China, Hong Kong and Macau) to Vinda Exclusive license for Vinda to market and sell SCA brands; TENA, Tork, Tempo, Libero and Libresse in China Vinda to acquire SCA’s Dr P and Sealer brands in China Benefits in distribution, sales, innovation and R&D Vinda gets access to a broader product portfolio and SCA brands, reaching broader consumer and customer base SCA’s hygiene business in China had net sales of approx. SEK 600m in 2013 Purchase consideration amounts to approx. SEK 1,000m Subject to approval by the shareholders of Vinda

September 8, 2014

Handelsbanken Large Cap Conference

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Leading Market Positions Globally and Regionally North America Incontinence products: AfH tissue:

Nordic region 3 3

Mexico

Incontinence products:

1

Europe

Baby diapers:

1

Tissue:

1

AfH tissue:

1

Incontinence products:

1

Consumer tissue:

2

Baby diapers:

2

Feminine care:

2

Feminine care:

3

Incontinence products:

1

Feminine care:

1

Private forest owners:

1

Tissue:

2

Solid-wood products:

2

Baby diapers:

3 China

Colombia

Globally

Incontinence products:

1

Feminine care:

1

Tissue:

1

Baby diapers:

2

September 8, 2014

Incontinence products:

2

Tissue:

3

Baby diapers:

5

Incontinence products:

1

Asia (ex Japan)

AfH tissue:

1

Incontinence products:

Consumer tissue:

2

Handelsbanken Large Cap Conference

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SCA Group 2013 Sales and Operating Profit by Business Area Sales

Personal Care

Forest Products Operating Profit Operating Profit

16%

32%

17% 32%

Tissue

51% Operating Profit

52%

September 8, 2014

Handelsbanken Large Cap Conference

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SCA Group 2013 Sales by Product Segment Tissue

Personal Care Feminine care

Incontinence products

17% AfH tissue

31%

52%

38% 62%

Baby diapers 75% branded

Consumer tissue 54% branded

September 8, 2014

Handelsbanken Large Cap Conference

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Innovations and Product Launches Q2 2014 TENA Lady / Lady Pants

 

Global relaunch of TENA Lady and Lady pants Feminine designed Lady pants allowing consumers to choose from a family of TENA Lady range fitted for the needed occasion – discrete & secure September 8, 2014

Libresse Multistyle Liners /

 

CurveFitTM

New Libresse Multistyle, the most absorbent liners designed to fit any style of knickers Curvefit liners, uniquely shaped to perfectly fit body shape for maximum comfort Handelsbanken Large Cap Conference

Libero Comfort / Up&Go

Comfort: Elastics smoother and softer around the legs, improved fit with better comfort

Up&Go: Improved fit adjusts to baby’s unique body, softly following in every move. High absorption capacity to secure optimal leakage protection 8

Innovations and Product Launches Q2 2014

  

IT-based washroom service Provides easily accessible realtime data on toilet use Facilitates cleaning, control odors and reduce water usage September 8, 2014

Tork Sanitizing Wet Wipe

Tork - EasyCubeTM

Tork - Bloe

  

IT-based washroom service



Provides easily accessible realtime data on refill consumption



Wet wipes for cleaning and sanitizing restaurant tables Discreet and portable solution

Gives instant overview of when and where cleaning is needed Handelsbanken Large Cap Conference

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Market Drivers Good growth opportunities

 Global population growth  An aging population  Increased market penetration  Higher disposable income  Customers and consumers demand more comfort and sustainability

September 8, 2014

Handelsbanken Large Cap Conference

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Usage of Hygiene Products High potential in markets with low penetration

Incontinence Products

700

Baby Diapers

Feminine Care

2 000

25

400

600 1 500 400

20

300

500

15 1 000

200

300 200

10 500

100

5

100 0 0 Units/person with incontinence/year Units/child up to 2.5 years/year

North America

September 8, 2014

Tissue

Western Europe

0

0 Units/woman 15-49 years/year

Eastern Europe

Handelsbanken Large Cap Conference

Latin America

Kg/capita/year

Asia

11

Emerging Markets Q2 2014 Sales

Group

Personal Care

Emerging markets

Tissue

Emerging markets

29%

31%

Emerging markets

43% 57% Mature markets

69%

Organic Sales Growth in Emerging Markets:

Mature markets

9%*

Mature markets

9%*

71%

8%*

* Q2 2014 compared with Q2 2013 September 8, 2014

Handelsbanken Large Cap Conference

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Aging Population Total population over 60 years exceeding 1bn by 2020 Millions aged over 60 years old

1 200 +25% 1 000 800 600 400 +30%

+13%

200

+22% 0 Total world

Europe

China

2013

September 8, 2014

USA

2020

Handelsbanken Large Cap Conference

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Incontinence Products Prevalence of incontinence % of world’s population affected by incontinence, 2013

20%

15%

10%

5%

0% 0-19 years

20-29 years

30-64 years

65+ years

Incontinence affects 4-8% of the world’s population, approximately 400 million people globally affected by incontinence Source: Data included in the graph has been obtained from the International Consultation on Incontinence 2013 September 8, 2014

Handelsbanken Large Cap Conference

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Incontinence Products Grow penetration in key segments European Market Penetration %

 Increase market value by upgrading to new modern concepts, e.g. pants

80 70

 Increase usage and value by influencing reimbursement models

60 50

 Recruit new users through innovation and communication

40 30 20 10 Average market

September 8, 2014

Pants

Light Inco Female

Light Inco Male

Handelsbanken Large Cap Conference

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Incontinence Products Expand the category  Build on core competence to expand beyond absorbent products

Service Diagnostics

Skin care

Absorbent S incontinence products

Patient hygiene

 Expand core competence into the service area to create new revenue streams

Diagnostics Training

September 8, 2014

Handelsbanken Large Cap Conference

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Group Q2 2014 vs. Q2 2013

Sales

Organic Sales Growth

Operating Profit*

SEK 25,829m +12%

+3%

SEK 2,934m +29%

Operating Margin*

EPS

Operating Cash Flow

11.4% +150 bp

SEK 2.54 +56%

SEK 2,060m +28%

* Excluding items affecting comparability and including gains on forest swaps of SEK 175m (0) before tax September 8, 2014

Handelsbanken Large Cap Conference

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Q&A

September 8, 2014

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