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