Presentation SCA interim report Q2 2011

Interim Report
1 January – 30 June 2011

Interim Report Q2 2011

Increased raw material prices
NBSK pulp Recovered paper - Europe
USD/Metric tonne
1075
1050 USD/metric ton 190 EUR / ton
1025
1000
975 170
950
925
900
875 150
850
825
800 130
775
750
725 110
700
675
650 90
625
600
575
550 70
525
500
475 50
450
425
400 30
-98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11
NBSK PIX Value OCC ONP/OMG

Recovered paper - US Oil based material
1,75
USD/short ton
USD/short ton EUR / kg
450

1,50
400

350 1,25

300
1,00
250

200 0,75

150
0,50
100

0,25
50

0
0,00
-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11
jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10 jan-11
High grade deinking Polyethylene (PE) Bags, backsheet, pack.film Propylene (Contract fd) Superabsorbent
Oil (eur/kg) Polypropylene (PP homo) NW, Fibres

2 Interim Report Q2 2011

Summary – H1 2011 vs H1 2010
 Sales increased 5%*
 Hygiene business
 Higher volumes
 Good growth in emerging markets
• Personal care, 9%**
• Tissue, 9%**
 Packaging and Forest Products
 Packaging volumes increased 2%
• Corrugated volumes decreased 2%
• Corrugated prices increased 13%
 Publication paper volumes decreased 1%
 Solid-wood product volumes increased 16%
 EBIT increased 1%***
 Higher prices and volumes
 Cost savings
 Significantly higher raw material costs, SEK 2.1bn
 Higher distribution costs
 Negative currency impact, SEK 600m
 Profit before tax decreased 1%***
 Cash flow from current operations: SEK 1,840m
* Adjusted for exchange rate movements and divestments
** Adjusted for exchange rate movements
*** Excluding restructuring costs and adjusted for exchange rate movements

Summary - Q2 2011 vs Q2 2010
 Sales increased 6%*
 Hygiene business
 Higher volumes
 Good growth in emerging markets
• Personal care, 11%*
• Tissue, 9%*
 Packaging and Forest Products
 Packaging volumes flat
• Corrugated volumes decreased 3%
• Corrugated prices increased 12%
 Publication paper volumes increased 4%
 Solid-wood product volumes increased 19%
 EBIT decreased 7%**
 Higher prices and volumes
 Cost savings
 Significantly higher raw material costs, SEK 900m
 Higher distribution costs
 Negative currency impact, SEK 300m
 Profit before tax decreased 10%**
 Cash flow from current operations: SEK 1,487m
* Adjusted for exchange rate movements
** Excluding restructuring costs and adjusted for exchange rate movements

H1 2011 results
SEK millions H1 H1 Change, Change,
unless otherwise stated 2011 2010 % %**
Net sales 52,064 53,266 -2 5 ***
EBIT* 4,262 4,467 -5 1
EBIT margin* (%) 8.2 8.4
Profit before tax* 3,683 3,944 -7 -1
Earnings per share (SEK) 3.85 3.57 8 13
Cash flow from current operations 1,840 2,816
Debt/Equity ratio 0.55 0.62

* Adjusted for restructuring costs in 2010
*** Adjusted for exchange rate movements and divestments


Q2 2011 results
SEK millions Q2 Q2 Change, Change,
unless otherwise stated 2011 2010 % %**
Net sales 26,671 27,067 -1 6
EBIT* 2,150 2,440 -12 -7
EBIT margin* (%) 8.1 9.0
Profit before tax* 1,873 2,196 -15 -10
Earnings per share (SEK) 1.96 2.04 -4 +1
Cash flow from current operations 1,487 1,668

* Adjusted for restructuring costs in 2010


Q2 2011 vs. Q1 2011
Summary
 Group
 Sales increased 5%
 Higher volumes and prices
 EBIT increased 2%
 Higher volumes and prices
 Higher raw material costs
 Profit before tax increased 3%

 Business areas
 Personal Care, EBIT flat
 Higher volumes
 Tissue, EBIT increased 7%
 Higher volumes
 Packaging, EBIT decreased 3%
 Higher prices
 Higher volumes
 Forest Products, EBIT increased 7%
 Lower raw material costs


Personal Care
Q2 2011 vs Q2 2010

6,418  Sales decreased by 5% (+4%*)
6,116
 Incontinence care increased 2%*
-5%
 Baby diapers increased 8%*
 Feminine care increased 1%*
 Emerging markets 11%*
• Incontinence care 5%*
SALES SEKm Q2 2011 Q2 2010
• Baby diapers 20%*
• Feminine care 2%*
753**

582  EBIT decreased by 23%** (-18%***)
-23%**  Higher volumes
 Cost savings
EBIT SEKm Q2 2011 Q2 2010  Significantly higher raw material costs

EBIT margin 9.5% 11.7%**
* Excluding exchange rate effects
** Excluding restructuring costs
*** Excluding restructuring costs and exchange rate effects

Tissue
Q2 2011 vs Q2 2010

 Sales decreased by 5% (+4%*)
9,609
10,064  Consumer tissue increased 4%*
 AFH tissue increased 6%*
-5%
 Emerging markets 9%*
• Consumer tissue 8%*
• AFH tissue 11%*
Q2 2011 Q2 2010
 EBIT decreased by 16% (-8%*)
 Higher prices
791  Changed product mix
668
 Higher volumes
-16%
 Higher raw material, energy
and distribution costs
EBIT SEKm Q2 2011 Q2 2010

EBIT margin 7.0% 7.9%


Packaging
Q2 2011 vs Q2 2010

 Sales increased by 1% (+11%*)
6,856 6,770
 Higher prices
1%
 Lower volumes due to divestments

 EBIT increased 53% (62%**)
SALES SEKm Q2 2011 Q2 2010  Higher prices and volumes
 Cost savings
467
 Higher raw material costs, SEK 500m
53% 306  Negative currency impact



* Excluding exchange rate effects and divestments
** Excluding exchange rate effects

Forest Products
Q2 2011 vs Q2 2010

 Sales increased by 6%(8%*)
4,566 4,308  Higher prices for publication papers and pulp
6%  Higher volumes

 EBIT decreased by 23%
 Higher raw material and energy costs
 Negative currency impact
SALES SEKm Q2 2011 Q2 2010

691

532

-23%




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 for Personal Care,
Tissue and publication papers during H2


Q&A


IR Contacts:
Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor Relations
Tel: +46 8 788 51 30 Tel: +46 8 788 52 82
Email: ir@sca.com Website: www.sca.com


Presentation SCA interim report Q2 2011

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Presentation SCA interim report Q2 2011