Annual Report 2013
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Annual Report 2013 SCA PARTICIPATES WITH AN ALL-FEMALE TEAM IN THE VOLVO OCEAN RACE 2014–2015 Introduction B Responsibility and governance Contents This is SCA .................................................................... flap Corporate Governance ................................................ 50 2013 at a glance ............................................................... 1 Board of Directors and Auditors ................................ 56 CEO’s message ................................................................ 2 Corporate Senior Management Team ...................... 58 A changing world ............................................................. 4 Risk and risk management .......................................... 60 Insight through dialog ..................................................... 6 B Doing the right thing ........................................................ 7 Financial statements .......................................................................... SCA’s strategy .................................................................. 8 Contents 66 ............................... Targets for people and nature .................................... 10 Consolidated income statement 67 Innovation and brands .................................................. 12 Consolidated statement of comprehensive income ........................................... 67 Sustainability creates profitable business .............. 14 Consolidated statement of changes in equity ........ 68 Leadership and culture ................................................. 15 Consolidated operating cash flow statement ........ 68 Value for our stakeholders ........................................... 16 Consolidated cash flow statement ............................ 69 The SCA share ................................................................ 18 Correlation between consolidated cash flow Information to shareholders ........................................ 21 statement and operating cash flow statement ....... 70 Consolidated balance sheet ....................................... 71 B Board of Directors’ Report Financial statements, Parent Company ................... 72 B SCA Group Notes ................................................................................ 74 Operations and structure ............................................ 24 Adoption of the annual accounts ............................. 109 Acquisitions, investments and divestments ........... 25 Proposed disposition of earnings ........................... 110 Other Group information .............................................. 26 Audit report ................................................................... 111 Sales and earnings ........................................................ 27 Operating cash flow ...................................................... 28 SCA Data Financial position ........................................................... 29 Multi-year summary .................................................... 112 Comments to the multi-year summary ................... 113 B Business areas Description of costs .................................................... 114 Personal Care ................................................................. 30 Raw materials, energy and transport activities .... 114 Tissue ............................................................................... 38 Production plants ........................................................ 115 Forest Products ............................................................. 44 Definitions and key ratios........................................... 116 ......................................................................... Glossary 116 Addresses ..................................................................... 117 Awards and recognition ................................back cover Key figures Key figures 2013 20124) 2011 SEK EUR2) SEK EUR2) SEK EUR2) Net sales, SEKm/EURm 89,019 10,295 85,408 9,815 81,337 9,013 Operating profit, SEKm/EURm 8,683 1,004 6,012 691 2,299 255 Operating profit, SEKm/EURm1) 9,934 1,149 8,646 994 7,738 858 Operating margin, % 10 7 3 Operating margin, %1) 11 10 10 Profit before tax, SEKm/EURm 7,683 888 4,748 546 974 108 Profit before tax, SEKm/EURm1) 8,934 1,033 7,382 849 6,413 711 Profit for the year, SEKm/EURm 5,564 643 5,000 575 607 68 Profit for the year, SEKm/EURm1) 6,392 739 7,257 834 5,678 629 Earnings per share, SEK 7:90 7:06 0:78 Earnings per share, SEK1) 9:08 10:27 8:00 Cash flow from current operations per share, SEK 8:53 10:35 7:55 Dividend per share, SEK 4:753) 4:50 4:20 Strategic capital expenditures, incl. acquisitions, SEKm/EURm –7,334 –848 –16,735 –1,923 –2,620 –290 Divestments, SEKm/EURm 1,716 199 17,682 2,032 –15 –2 Equity, SEKm/EURm 66,304 7,422 60,164 6,989 61,291 6,857 Return on capital employed, % 9 7 4 Return on capital employed, %1) 11 10 9 Return on equity, % 9 8 1 Return on equity, %1) 10 12 9 Debt/equity ratio 0.51 0.55 0.60 Debt/equity ratio, excluding pension liabilities 0.48 0.48 0.52 Average number of employees 34,004 33,775 43,6975) Number of employees on December 31 33,535 35,701 43,3145) 1) Excluding items affecting comparability. 2) See footnote 1) on pages 68 and 71 for exchange rates. 3) Proposed dividend. 4) In conjunction with the creation of a joint venture in Australia and New Zealand, the operations were deconsolidated from 2012. 5) Of which packaging operations that were divested in June 2012: Average number of employees 12,015 and Number of employees on December 31 11,733. GROUP Net sales and operating margin SEKm % SCA is a leading global hygiene and forest products 120,000 12 100,000 10 80,000 8 company that develops and produces sustainable 60,000 6 40,000 4 20,000 2 0 0 2009 2010 2011 2012 2013 personal care, tissue and forest products. Net sales Operating margin Excluding items affecting comparability. Reclassified for 2010 and 2011 due to the divestment of the European packaging operations on June 30, 2012. Profit before tax and dividend per share SEKm SEK 10,000 5 8,000 4 6,000 3 4,000 2 2,000 1 0 0 2009 2010 2011 2012 2013 Profit before tax Dividend Profit excluding items affecting comparability. Reclassified for 2010 and 2011 due to the divestment of the European packaging operations on June 30, 2012. Dividend for 2013 relates to the proposed dividend. Personal Care The business area comprises three product segments: incontinence Operating cash flow products, baby diapers and feminine care. SEKm 12,000 Page 30 10,000 8,000 6,000 4,000 2,000 0 2009 2010 2011 2012 2013 Reclassified for 2010 and 2011 due to the divestment of the European packaging operations on June 30, 2012. Group’s largest markets Sales, SEKm Germany France UK US Sweden Spain Mexico Netherlands Italy Russia 0 3,000 6,000 9,000 SCA’s sales per region Europe, 73% North America, 11% Latin America, 9% 34,000 employees Sales of SEK 89bn SCA has sales in about 100 countries Asia, 6% Other countries, 1% Many strong brands BUSINESS AREAS SCA is a leading global hygiene and forest products Net sales (share of Group) Personal Care, 30% Tissue, 53% company that develops and produces sustainable Forest Products, 17% personal care, tissue and forest products. Total Group: SEK 89,019m Operating profit (share of Group) Personal Care, 30% Tissue, 53% Forest Products, 17% Total Group: SEK 9,934m Excluding items affecting comparability. Tissue Forest Products Operating cash flow (share of Group) The business area comprises two The business area comprises five Personal Care, 32% product segments: consumer tissue product segments: publication Tissue, 56% Forest Products, 12% and Away-from-Home (AfH) tissue. papers, kraftliner (packaging papers), Page 38 pulp, solid-wood products and renewable energy. Total Group: SEK 8,489m Page 44 Capital employed (share of Group) Personal Care, 11% Tissue, 51% Forest Products, 38% Total Group: SEK 100,190m Number of employees on December 31 (share of Group) Personal Care, 32 % Tissue, 56 % 34,000 employees Sales of SEK 89bn SCA has sales in about 100 countries Forest Products, 12% Many strong brands Total Group: 33,535 2013 at a glance • Majority shareholder in the Chinese tissue company • Net sales amounted to SEK 89,019m (85,408). Vinda with 51.4% ownership. • Operating profit1) amounted to SEK 9,934m (8,646). • Established operations in India. Launch of Libero • Profit before tax1) totaled SEK 8,934m (7,382). and Tempo. • Earnings per share amounted to SEK 7.90 (7.06). • Efficiency programs delivered according to plan. • Cash flow from current operations amounted to • Inaugurated first wind farm as part of jointly owned SEK 5,989m (7,271). company with Statkraft. • Proposed dividend of SEK 4.75 (4.50) per share. • Divested the publication paper mill in Laakirchen, Austria. 1) Excluding items affecting comparability. SCA Annual Report 2013 1 Introduction | CEO’s message 2013 – a strong year for SCA In 2013, we strengthened our position as a leading global hygiene and forest products company and displayed a strong performance in terms of our strategic priorities: growth, innovation and efficiency. We became the majority shareholder in the Chinese tissue company Vinda during the year. Our extensive efficiency programs delivered according to plan and we can reflect back on a year of favorable sales growth and improved profitability. Importance of growth ciency of our operations. In recent years, we The world’s population is growing and aging. have worked intensively to systemize our Combined with a higher standard