SCAs Presentation Q1 2015
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The Q1 2015 interim report highlights strong organic sales growth of 15% and an operating profit increase of 6%, driven by efficiency, innovation, and strong performance in emerging markets. Notable product launches included Edet and Tork, contributing to higher sales across all business areas. Despite low growth in mature markets, the overall cash flow remained robust, although there were currency challenges due to a stronger USD.
SCAs Presentation Q1 2015
- 2. Magnus Groth President and CEO April 30, 2015 Interim Report Q1 2015 2
- 3. April 30, 2015 Interim Report Q1 2015 3 Summary Q1 2015 Good organic growth in sales and operating profit Strong growth in emerging markets Strong cash flow Higher sales and profits in all business areas Continued work with efficiency Introduced 11 innovations and product launches - Edet, Nosotras, Plenty, Tork and Zewa
- 4. Group Q1 2015 vs. Q1 2014 April 30, 2015 Interim Report Q1 2015 4 Organic Sales Growth Operating Profit* Operating Margin* Operating Cash FlowEPS Sales SEK 27,958m +15% * Excluding items affecting comparability ** Excluding items affecting comparability, gains on forest swaps of SEK 0m (152) before tax and currency translation effects *** Excluding items affecting comparability and gains on forest swaps of SEK 0m (152) before tax SEK 2,872m +6%** 10.3% +10 bp*** SEK 2.43 +15% SEK 1,960m +37% +6%
- 5. Strategic Priorities April 30, 2015 Interim Report Q1 2015 5 EFFICIENCY INNOVATION GROWTH INCREASING EFFICIENCY IN THE VALUE CHAIN
- 6. Innovations and Product Launches Q1 2015 April 30, 2015 Interim Report Q1 2015 6 Plenty Schoonmaak Doekjes • Hygienic & useful for tougher cleaning tasks • Thanks to its Power Dots technology, it delivers the superior strength of a cloth combined with the absorbency and convenience of Plenty kitchen roll • Softness increase • Bulk increase • New absorbing cushions embossing design Edet Ultra Soft, Zewa Deluxe • For sensitive surfaces and industrial cleaning & technical tasks that need pristine results • Antistatic, perfect for more technical tasks • Works well with solvents, detergents and disinfectants Tork Industrial Low-Lint Cleaning Cloth Nosotras Frescura Extrema Range of hygiene products which give women an extra kick of hygiene and freshness feeling during the day
- 7. April 30, 2015 Interim Report Q1 2015 7 Fredrik Rystedt CFO
- 8. Net sales Q1 2014 Price/Mix Volume Currency Net sales Q1 2015 Organic sales growth 6% Price/Mix +2% Volume +4% April 30, 2015 Interim Report Q1 2015 8 +2% +4% SEK 24,234m +9% SEK 27,958m Net Sales Q1 2015 vs. Q1 2014 +15%
- 9. Group Organic Sales Growth Q1 2015 vs. Q1 2014 Total Mature Markets Emerging Markets April 30, 2015 Interim Report Q1 2015 By region Mature markets Western Europe - Strong growth for baby diapers and feminine care - Good growth for incontinence products - Higher sales for consumer tissue - Lower sales for AfH tissue North America - Strong growth for AfH tissue - Lower sales for incontinence products Emerging markets Strong growth in emerging markets - Personal Care - Latin America +15% - Russia +27% - Tissue - Asia +19% - Latin America +9% - Russia +15% 9 +6% +4% +11%
- 10. Operating Profit Q1 2014 Price/Mix Volume Raw Material Energy Currency Other** Operating Profit Q1 2015 April 30, 2015 Interim Report Q1 2015 10 SEK +548m SEK 2,630m SEK 2,872m Operating Profit* – Group Q1 2015 vs. Q1 2014 +9% SEK +318m SEK -721m SEK +37m SEK +234m SEK -174m * Excluding items affecting comparability and including gains on forest swaps of SEK 0m (152) before tax ** Other includes gains on forest swaps of SEK -152m
- 11. Cash Flow Q1 2015 vs. Q1 2014 Operating cash surplus Change in working capital Restructuring costs, etc Capital expenditures (including strategic) Operating cash flow including strategic capital expenditures Q1 2015 SEKm Q1 2014 SEKm 4,118 -1,028 -227 -1,347 1,516 3,569 -1,141 -230 -1,275 923 Interim Report Q1 2015April 30, 2015 11
- 12. April 30, 2015 Interim Report Q1 2015 12 Magnus Groth President and CEO
- 13. Personal Care Q1 2015 vs Q1 2014 April 30, 2015 Interim Report Q1 2015 13 * Excluding items affecting comparability ** Return on capital employed excluding items affecting comparability Sales growth 15% Organic sales growth 6% Price/mix +2% Volume +4% Strong growth in emerging markets Strong growth for baby diapers and feminine care Operating profit increased 6%* Higher volumes Better price/mix Cost savings Higher raw material costs due to higher pulp prices and a stronger USD Investments in increased marketing activities for incontinence products and in India Operating margin 10.4%* ROCE** 26.1% Net Sales Operating Profit* Q1 2015Q1 2014 Q1 2015Q1 2014 Q1 2015Q1 2014 Operating Margin* SEK 8,319m SEK 7,242m SEK 869m SEK 822m 11.4% 10.4% Organic Sales Growth by Region Organic Sales Growth by Product Segment Incontinence Products Baby Diapers Feminine Care TotalMature Markets Emerging Markets Total +3% +6% +7% +16% +4% +10% +6% 52% 30% 18% % of Personal Care Sales: 57% 43% +15% +6% -100 bp
- 14. Tissue Q1 2015 vs Q1 2014 April 30, 2015 Interim Report Q1 2015 14 * Excluding items affecting comparability ** Return on capital employed excluding items affecting comparability Sales growth 18% Organic sales growth 5% Price/mix +1% Volume +4% Strong growth in emerging markets Strong growth for consumer tissue Operating profit increased 12%* Higher volumes Better price/mix Cost savings Higher raw material costs mainly due to a stronger USD Operating margin 10.1%* ROCE** 12.5% Net Sales Operating Profit* Q1 2015Q1 2014 Q1 2015Q1 2014 Q1 2015Q1 2014 Operating Margin* SEK 15,435m SEK 13,116m SEK 1,556m SEK 1,393m 10.6% 10.1% Organic Sales Growth by Region Organic Sales Growth by Product Segment Consumer Tissue AfH Tissue TotalMature Markets Emerging Markets Total +5% +2% +14% +5% 65%% of Tissue Sales: 35%68% 32% +18% +12% -50 bp +7% +2%
- 15. Forest Products Q1 2015 vs Q1 2014 April 30, 2015 Interim Report Q1 2015 15 * Excluding items affecting comparability and gains on forest swaps of SEK 0m (152) before tax ** Return on capital employed excluding items affecting comparability Q1 2015 Sales growth 8% Price/mix +5% Volume +1% Currency +2% Strong growth for kraftliner and pulp Operating profit increased 56%* Higher prices (including exchange rate effects) Lower energy costs Cost savings Operating margin 15.7%* ROCE** 6.8% Net Sales Operating Profit* Q1 2015Q1 2014 Q1 2015Q1 2014 Q1 2014 Operating Margin* SEK 3,999m SEK 4,316m SEK 434m 10.9% 15.7% SEK 678m +8% +56% +480 bp
- 16. April 30, 2015 Interim Report Q1 2015 16 Q1 2015 Summary Good organic growth in sales and operating profit Strong growth in emerging markets Strong cash flow Higher sales and profits in all business areas Global Environment Low growth in mature markets and good growth in emerging markets for hygiene products FX headwinds due to stronger USD Competitive market environment
- 17. April 30, 2015 Interim Report Q1 2015 17 Q&A