Strategy

SCA is a global hygiene and paper company that develops and produces personal care products, tissue, packaging solutions and forest products. The Group’s sales amount to SEK 109bn, with the hygiene business accounting for 60% of this amount. SCA sells its products in some 100 countries under many strong brands, including TENA and Tork, both of which are globally leading brands.

Golden eggs - SCA
Efficiency and innovation to generate sustainable growth is an effective strategy for achieving long-term competitiveness. These priorities were important in the past year and will form the basis for the Group’s continued work. SCA’s prioritised areas are costs and cash flow, capital efficiency, innovation and growth.

The Group’s proximity to customers and consumers, and knowledge of local and regional market conditions – combined with global experience, strong brands, efficient production and innovativeness – represent key competitive factors.

Sustainability is also a prioritised area and forms an integral part of the business and of the Group’s strategy for growth and value creation. As a consequence of the steady improvement in the global economy in 2010, there is greater potential for growth in 2011.

Costs, cash flow and capital efficiency

SCA is active in an intensely competitive market and a continuous focus on cost efficiency is vital to ensure the continued competitiveness of the Group. Reducing costs and increasing capital efficiency generates improved cash flow and value creation.

Innovation strategy

Innovation is a means of developing and differentiating SCA’s products and services, retaining and strengthening market positions, building strong brands, driving growth by expanding the offering to existing customers in existing markets, and attracting new customers in new markets.

Growth

SCA aims to be the leading company in the markets in which it conducts operations. All operations in mature markets, such as Western Europe and North America, will continue to strengthen their positions. In addition to defending and re-inforcing its position in mature markets, the aim is to advance positions in emerging markets, primarily in regions where SCA already has representation.

Sustainability

Sustainability is an integral part of SCA operations and the Group’s strategy for growth and value creation. To further raise ambitions and develop sustainability activities, a new corporate staff unit for sustainability was established at Group level in 2010.
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