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SCA Personal Care Europe

Issue 3 Autumn 2011

Achievement Awards winners set standards | At SCA green is more than a colour | First results of lead line concept |

Page 4 Page 8 Page 11

Editorial

Dear Colleague,

We are currently reviewing our communication channels and have decided to publish three instead of four issues of Inside this year. Employees in selected countries will be invited to participate in a survey later this year and help us evaluate the next steps in our employee communication.

I am happy to report that we delivered a strong finish to the second quarter before the summer holidays. In this issue we would like to share more business highlights in some detail. We saw good growth with TENA in Retail and our TENA Solution pilots have been very successful (page 7). It is great to see that our Action launch in Nordic has been a success and that our new thin open baby diaper scores extremely well in consumer panels and external lab tests. By the time you read this we will already have launched the Libero Dance collection in Nordic our new thin Baby pants which we introduce on page 3. Together with all the other product launches we need to work hard to make this introduction a success. We still have a considerable profitability gap to close in an extremely challenging business environment. I therefore expect every one of us to contribute by managing costs tightly, and successfully implementing our ambitious efficiency programs. Read more about the lead-line concept that will help us improve efficiency in our manufacturing processes on page 11. Other highlights in Q2 include the signing of a 5050 joint venture (JV) with the Turkish hygiene products company Komili from Yldz Holding. With this JV we have created a bridgehead into one of the most interesting and dynamic nearby growth markets. In addition, SCA acquired 95 percent of the Turkish hygiene products company San Saglik, producer of incontinence care products, from the family-owned MT Group. We also continue to work on the c/o life branding of SCA as a company that cares for people and nature. The Munich Airport, with thousands of visitors every weekend, held its first ever Sustainability Days on July 810 and SCA was an official partner for the event (read more about PCE sustainability activities on pages 89). During our Leadership Meeting in the summer, we gave out this years Achievement Awards for Personal Care Europe (pages 34) congratulations again to the winners and nominees! We also introduced the new members of my management team: Nick, Paul and Mark. Please join me in welcoming them here again and wishing them all the best for their new challenges. Together with the new team members we will set the transformation agenda that will lead us to our long term aspirations and will position PCE as a force to be reckoned with. I very much look forward to tackling this challenge together with you! Yours sincerely

New members of the PCLT

Paul Davies was appointed VP Retailer Brand Europe. Paul brings with him a wide range of experience in the areas of sales, sourcing, manufacturing, operational improvement and logistics from his 9 years in SCA and other FMCG, consultancy and aerospace businesses. The position of VP Branded Retail Europe was taken up by Nick van Holstein who brings 25 years of international marketing and general management experience with leading FMCG companies such as Sara Lee, Kao, Quaker Oats and Henkel. Mark Scorgie has been appointed VP Health Care. Mark has worked at SCA for over 20 years and brings with him extensive experience from the operations where he led the PCE Health Care business in regions East and UK, before taking on his current position in the GHC.

Thomas Wulkan

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Brand News

Lets dance
This autumn, Liberos 5th edition of limited Up&Go pant diapers hits the dance floor with funky design diapers that are extra thin to give babies more freedom to move and get grooving.
Libero fans can create their own little dance video through a fun application on the Libero website. Choose one of four dancing Libero babies, add some cool music and send your very own Libero Dance World clip to your friends or share it on Facebook.

Libero Dance Collection diapers are produced in Hoogezand. I am a big fan of music and really like the rock, disco, punk, and hip-hop styles of the new Libero Dance Collection, says line operator Erik Kazemier.

Trendy Libero babies will soon be seen in stylish Libero Up&Go tank tops, which loyal Libero parents receive in return for buying Libero Up&Go Dance Collection diapers.

Baby Soft for premature babies

Regularly stroking and caressing has a positive impact on the development of prematurely born babies. As their skin is much thinner and reacts more sensitively than the skin of babies born to term, this poses extra requirements on diapers for premature and tiny babies. Not only is our new Libero Baby Soft for premature babies much smaller in size, the silent materials we use ensure that the diaper is extra soft on babys skin, explains Bernhard Dworak, European Marketing Manager for Libero. Libero Baby Soft diapers do not have any hard edges and we do not allow any excess material, such as glue. And to make the first skin care a positive experience for the premature baby, we look carefully at all materials used in the production process and in the working environment.

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People News

Achievement Award winners set standards

received their award from members of the Personal Care Europe Leadership Team.
*As defined in the Personal Care Cultural Aspirations

Sustainability Customer & Consumer Achievement

Personal Care Europe

All teams who were nominated for one of the Personal Care Europe Achievement Awards 2010/11 have demonstrated exemplary behaviours with respect to Sustainability, Consumers & Customers, and Achievement*, throughout the last year. The winners in all four categories were announced in summer and

Best Performing Team Retail

Xavier Penas, CD France Retail, received the Best Performing Team Retail Award 2010/11 on behalf of his whole team. Also nominated for the award were Norway and UK/Ireland. We earned this award for kicking one of our fiercest competitors out of the market, says Xavier. In our team we really have an attitude to perform. It is part of our achievement culture to deliver results. Excellence, Respect, and Responsibility, SCAs core values, are the red line in everything we do and we constantly try to improve our performance according to these principles.
Bjrn yrs, CD Retail Norway; Arjan Vermeer, Director Marketing; Xavier Penas, CD Retail France; Peter Czekirda, VP Finance; Phil Warner, CD Retail UK/Ireland (from left)

Best Performing Team Health Care

Norway won the Best Performing Team Health Care Award. Also nominated were the teams from Italy and Slovakia. We are a highly motivated team with a winning mindset, says Trond Dahl Hansen, CD Health Care Norway. Our success has been made possible through a strong support in our Region, from the management team and the Category. Our aim for next year is to reach a market share of 100%.
Hkan Molin, VP Hygiene MEA; Massimo Minaudo, CD Health Care Italy; Marnie Gowers, CD Health Care Slovakia; Trond Dahl Hansen, CD Health Care Norway; Mike Hallerstrm, VP Health Care (from left)

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People News

Best Performing Team Product Supply

The Pegasus Department in Hoogezand took home this years Best Performing Team Award for Product Supply. Nominated were also the Thin Towels Department in Gemersk Hrka and the Comfort Department in Falkenberg. Bert Oosting, Unit Support Manager, who received the award on behalf of his team, says: We have had a challenging year. The Best Performing Team Award is a great recognition of our efforts to meet our goals. It will certainly boost spirit in the Hoogezand factory. My thanks to everybody in the supply chain, who helped us achieve our goals; special thanks to Unicharm.

Alena Drobnakova, Thin Towels Gemersk Hrka; Ulf Isaksson, Comfort Department Falkenberg; Donato Giorgio, VP Product Supply; Bert Oosting, Pegasus Department, Hoogezand; Christina Rindegrd, VP Human Resources (from left)

Bert Oosting and the team from the Pegasus Department in Hoogezand with the Best Performing Team Award Product Supply 2010/11.

Personal Care Europe Forerunner Award

The Fenix 8 Start-up Team from the Oawa factory was awarded with the PCE Forerunner Award for the outstanding results achieved in 2010/11. Also nominated were the LMT Italy and the TENA DACH Marketing Team. The Forerunner trophy was handed over to Grzegorz Raszczuk, Project Manager, who says: As a team we have a break-through attitude. We will now use our learnings from the Fenix start-up and we want to start up three lines in the same spirit and with the same excellent results next year. We are not afraid of challenges!

Massimo Minaudo, CD Health Care Italy; Grzegorz Raszczuk, Fenix 8 Start-up team Oawa; Thomas Wulkan, President; Peter Beichel, Marketing Manager TENA DACH (from left)

Grzegorz Raszczuk took the Forerunner Award 2010/11 home to the Fenix 8 Start-up Team (Photo taken by Maciej Pakosz)

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Brand News

Be twisted
new Libresse tampons
use this as a license to be cheeky.
The communication campaign around the launch of the new Libresse tampons in Sweden and Norway treats the subject of periods open and truthfully. Be twisted the theme of our launch campaign is a call to action for girls to make the most of their periods, adds Axel Weiblen, Communications Manager for Libresse. Be twisted shows the product benefit, while giving girls a platform to express themselves and to feel more positive about their periods. Within only two months after launch, the new Libresse tampons have been able to increase their market share in Norway to over 20% and to give the whole category a very positive twist.

We at Libresse know that periods are a time full of emotions and feelings and sometimes you just want to let them out, says Paula Backman, Regional Marketing Manager Northwest Region. Girls have a lot on their plate during their period. However, instead of feeling bad about it, we encourage girls to
There are several ways that Libresse tampons have improved, but the easy twist opening is unique to the category.

period its your

Prova! NY tampong med smart ppning

Helt ny tampong Ny design Enkel att ppna

Tampons with a twist make periods just that little bit easier. Libresse encourages girls to let their feelings out and post their twisted stories on Libresses Facebook site or on libresse.se.

We know the feeling

comfort and protection

Nana 2 in 1 more freshness for every day

Nana 2in1 liners make everyday life of French women much fresher. Nanas new innovative product is made of two thin liners, one over the other. To feel super fresh throughout the day, consumers just peel off the first liner to enjoy the freshness of a complete new liner underneath. There is no other product like this on the market, says Perrine Flipo, Nanas Product Manager. It clearly differentiates Nana from other brands, both technically and conceptually. 2in1 confirms that Nana understands what women need and want. First consumer studies confirm that a majority of French consumers appreciate the concept and find it really innovative and comfortable.
By Peggy Saintin Saintin, Internal & Institutional Communications France

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Brand News

TENA Solutions:

First pilot results from the Regions

TENA Solutions, TENAs holistic offering for nursing homes and institutions, rests on three pillars: guidelines, innovative products and expert support for the best and most effective continence care and personal hygiene. Nearly 80 TENA Solutions pilot projects have just been concluded across Europe with impressive first results: participating nursing homes report fewer leakages and considerable skin improvements of their residents. Caregivers can now spend more quality time with their residents, something which benefits the working atmosphere in the institutions as well. Through applying TENA Solutions, the institutions were able to choose the right products and minimise waste and laundry. Really an improvement for the environment!

Seniorenpension Eisenstadt in Austria

Ingo Grtner Maria Jelovic Peter Schpp

New Sales Institutions team for Spain

A new Sales Institutions team was established for Spain in September 2010. The new team conducted 31 TENA Solutions pilots with a total of 3000 patients. With passion and commitment, this team successfully conveyed the TENA Solutions concept to their customers and demonstrated that economic sustainability, innovative products and c/o life go hand in hand.
The TENA consultancy team for Austria.

By using TENA Flex and the 3-in-1 skin care and cleansing products, the nursing home caregivers were able to save a lot of time. Head nurse Andrea Kargl explains: Applying modern care products and routines is so efficient that we now have time for other activities with our residents. The successful TENA Solutions pilot convinced the Seniorenpension to become TENA customers, which was a huge motivation boost for the Austrian TENA team. Our customers no longer see us as sales people, but rather as consultants, says TENA consultancy team leader in Austria, Maria Jelovic. Ingo Grtner, Solutions Project Leader in Austria, adds: We are no longer just selling incontinence products, but rather offering an efficient overall solution for continence care and resident hygiene. This is definitely a competitive advantage for TENA!

Italy

TENA Solutions in Italy is a natural evolution of TENA Services, says Sarah Marinoni, Sales Support Manager. The Italian sales force has successfully included assessments and tests in their selling approach for several years. The real innovation of TENA Solutions is the availability of thorough continence and personal hygiene guidelines the TENA guidelines which will be introduced on the Italian market with every single customer.

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Sustainability

At SCA green is mor

Sustainability has been in SCAs genes ever since our foundation in 1929. Awards and recognition such as regular listings on the FTSE4 Good global sustainability index or being named as one of the worlds most ethical companies by the Ethisphere Institute are strong proof points that sustainability is not just a buzz word in our company.

Life Cycle Assessments from cradle to grave

SCA has a long tradition of working with Life Cycle Assessments (LCA). A life cycle assessment evaluates the environmental impact of a product throughout its entire life, from production and sourcing of raw material to manufacturing to transport and finally to product disposal. LCAs help SCA to determine further improvements to our products life cycle, e.g. selecting suppliers that offer environmentally sound materials or providing guidance for the design of thinner, high-performance products.

Eco Actions

Svanen the Nordic Swan

ECO ACTIONS is our common way of communicating our environmental activities and achievements to our consumers and customers in a credible, meaningful and inspiring way for all our Personal Care brands in Europe (TENA, Libero, and the Libresse family). The Eco Actions logo appears on packs with a reference to our brand website. Consumers can browse to the brand websites and learn more about our products environmental activities and achievements as well as the brands social responsibility.

All Libero diapers* carry the renowned Nordic eco label Svanen. This label guarantees that Libero diapers fulfil stringent environmental and product criteria. Svanen is licensed by the Swedish association Ecolabelling and it certifies that the pulp used in the diapers comes from sustainable forestry, that all raw materials were reviewed and approved from an environmental and health perspective and that the performance of the diaper is as good as any other, conventionally produced diaper on the market. Furthermore, Svanen does not allow any ingredients that might cause allergies or are harmful in any way to babies.
*except Russia/CIS

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Sustainability

re than just a colour

Sustainability weekend at Munich Airport

Sustainability is truly close to our hearts and embedded in our company culture, said Personal Care Europe President Thomas Wulkan during the opening ceremony of the first Sustainability Days at the Munich Airport. He continued, For us at SCA, c/o life means that we care about people and about nature. Many Munich colleagues volunteered their personal time to man the SCA stand during the three-day event: turning the wheel of fortune, leading kids over our barefoot path or pointing families to our giant cardboard sofa for a free photo shoot. The volunteers showed their commitment to SCA and its sustainability goals and were spirited ambassadors for c/o life.

New garden for girls home

The Hatzikyriakio Foundation in Athens provides a shelter for girls from difficult family backgrounds. This spring, many colleagues from the SCA office in Athens helped them build a garden, where the girls can grow their own vegetables and also learn about natures lifecycle from planting to growing to eating their vegetables.

We care for trees the SCA Tree Pool

Eco-friendly lights in Hoogezand

One thousand seedlings are available in the Tree Pool which SCA employees and teams can order for tree planting activities with their customers or in their communities, for example a nursing home, a school or kindergarten. All tree planting activities will take part in a competition and stand a chance to win the Tree Pool award for their personal dedication, ideas and team efforts. If youd like to participate you can send your project idea to your local Tree Pool coordinator. Details on the SCA Tree Pool can be found on Essentials under http://intranet.sca.se/SCATreePool.

The Hoogezand factory has translated Personal Cares cultural aspirations around sustainability into energy management and started to replace all conventional lamps with LED lights. LEDs provide bright and calm light that consume 50% less energy. Our colleagues really like it: the LED lights are environmentally-friendly and are much brighter than the lamps we had before, comments Eric Doornbos, who is responsible for the installation of the LED lights.

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Product Supply

The Gemersk Hrka factory opened its doors

Gemersk Hrka opened its doors for all employees, their families and friends in May. Over 1200 visitors followed Plant Manager Ronald Knols invitation and took the chance to find out why SCA is a great place to work. We wanted to show our factory and the Personal Care production process to all local SCA families and bring them closer to SCA and Personal Care Europe, explains Ronald. We will only achieve our Compelling Business Needs when all our teams are working as one, sharing the same ambitions. The Family Day is really meant to celebrate all the efforts our employees put in their work for SCA. The Gemersk Hrka factory team had also prepared four mini exhibitions around SCA, Personal Care Europe, the Gemersk Hrka factory and c/o life.
Tomas Hires, Communications By Coordinator Slovakia

Ludmila Ondrejova was one of the organizers organisers of the entertainment programme during the Open Day. She says: Our SCA kids had a fun afternoon in a little theatre, with face painting, jumping ropes, and other fun activities, during which their parents were able to enjoy some live music.

Gemersk Hrka employees competed for best places

Although not all production lines were running over the weekend, the factory tour was a big success with all participants. Gemersk Hrka colleagues took the chance to show their families and friends where they work and what they produce. Congratulations to Stefan Macko (middle) for winning the Gemersk Hrka Tennis Cup for the fourth year in a row! The second and third places went to Vladimir Andrasovsky (left), Robert Ferdinand (right).

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Product Supply

News from Oawa

First results lead line concept
The Personal Care factory in Oawa achieves fantastic first results with the implementation of the lead line concept and the Daily Direction Setting method (DDS)*. Giovanni Gangemi, Plant Manager Oawa explains: We started to apply the DDS concept on our lead line, the PP3 line, in January, and we are really proud of the rate of improvement weve achieved in such a short time! Following the DDS process flowchart and focusing on stops elimination, creating technical standards and understanding of all technical machine details, we were able to reduce waste from 10% to 3% and increase machine efficiency from 23% to 64% in six months. We achieved a record of 4.5 hours without stops, turning the worst line into possibly the best performing Peter Pan line at the moment. And this is only the start, we are sure the improvement trend will continue! We took the opportunity and applied the learnings from this line also to the start-up of the Fenix 8 line. From the very beginning, the team managed to exceed the project expectations and delivered fantastic results. To mention some numbers, we were able to produce seven times more volume than was planned in the first weeks, with an increased speed of 18%, and scrapping 40% less material during qualification. But it was not only the tools and processes that led to fantastic results in both teams, it was above all the team spirit and the achievement culture, explains Grzegorz Raszczuk, Project Manager. The entire team worked together in a great spirit of cross-functional collaboration and mutual support. Especially worth mentioning is the commitment and support of the Linselles team despite
PP3 Results
Machine efficiency %
70 60 50 40 30 20 dec jan feb mar apr may jun 12 10

Waste %

Machine efficiency %

6 4 2 0

their difficult situation. Their contribution has been essential to us for delivering these outstanding results. Giovanni concludes. I am very proud of the results of both teams and I am looking forward to applying the learnings from these lines to the others lines as well. We are up for the challenge!
* The lead line concept and the Daily Direction Setting Method are vital tools of the Operational Excellence approach in the Personal Care Europe Product Supply organisation.

Quality in Focus
All Personal Care Europe factories are working to improve their cost, quality, and service positions the Compelling Business Needs to actively contribute to the overall Personal Care Europe QRESH Manager Daniel business objectives. Carlsson QRESH* Manager Daniel Carlsson ensures that all activities around quality, safety and environment in Falkenberg are in line with the Compelling Business Needs. The new goals are great and help us clarify work processes and identify priorities, he says. The Compelling Business Needs give us good guidelines to effectively allocate resources. He continues: To ensure that we always manufacture high-quality products, we are focusing on the product specifications that are most important to our customers. We work a lot with the introduction of PPM, parts per million, and measure the number of potentially faulty products we produce, explains Daniel. Improving quality also includes making the Falkenberg factory a safe place to work. Daniel concludes: It is very important to follow processes and routines with a good amount of discipline so that we are prepared for audits and inspections and always keep a high level of quality.
*QRESH stands for Quality, Risk, Environment, Safety & Health.

By Christina Abrahamsson, Nordic Communications Support

Family picnic
Oawa employees and their families had a fun day full of activities during the Familiy Picnic in June. Many joined the rope pulling contest or helped to find out how many employees would fit in a small Fiat.

Waste %

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In Short

Young talents join

Graduate Development Program

The investments we make in our people are key to our success. The quality of the people we bring into our organisation and our ability to retain and develop these people will play a major role in determining our future. The Personal Care Europe Graduate Development Program (GDP) is an attractive offer for young, passionate people who want to progress within our business group. Fifteen graduates are currently participating in the two-year programme.
By Eva Meine, HR Projects Manager

The program is very useful, also in my everyday life. The exercises show the way I can apply theoretical learnings to real life.
Igor Zamsha (Sales & Marketing Trainee, Moscow, Russia)

I am looking forward to completing the trainee program and then to filling a position where I can help SCA achieve good results.
Gabriel Horvath (Technical Trainee, Gemersk Hrka, Slovakia)

A big benefit of the Graduate Development Program is that I get to learn the total logistical operations in a relatively short amount of time! Besides that, I get the chance to work in the central logistics operations, which I think will be a great experience!
Jinne Osinga (Logistics Trainee, Hoogezand, the Netherlands)

I am very happy to be a trainee at SCA. I dont think I could have found a better employer for my first steps in the work world. One more thing I really like about our graduate program is the multinational trainee group: we are all from different European countries and therefore can really experience an international work environment first hand.
Julie Mosdzien (Logistics Trainee, Munich, Germany)

I feel the GDP really pushes me forward. It allows me to see certain situations from a different point of view. I really appreciate having the chance to participate in this program.
Tomas Albert (Technical Trainee, Gemersk Hrka, Slovakia)

The GDP gives me a huge opportunity to know myself better and to have tools to also develop as a person as well and as a member of SCA organisation. It helps me to find and work on my weak points through on-the-job-training as well as off-the-job training.
Michal Deren (Logistics Trainee, Oawa, Poland)

The program gives me the opportunity to see different areas of the company and to gain broad insights.
Vanessa Gng (Sales & Marketing Trainee, Mannheim, Germany)

What I like most about the Graduate Development Program is the opportunity to develop myself further, as a professional as well as a person.
Sara Sanchez Aguade (Sales & Marketing Trainee, Munich, Germany)

A fantastic way of getting to know a company in all its facets, and a good way to capture and internalise the diversity SCA has to offer.
Ines Wessels (Sales & Marketing Trainee, Mannheim, Germany)

Inside SCA Personal Care Europe Publisher: Stefanie Christmann Terminalstrasse Mitte 18 (MAC) 85356 Mnchen Flughafen, Germany Editorial Management Ottilia von Chrismar, Michaela Wingefeld Layout and artwork: Sandberg Trygg AB, Sweden In collaboration with the Personal Care Europe Communications Network: Christina Abrahamsson, Ainhoa Alberto, Sandra Angerer, Gertie Eikenaar, Sarah Gilbody, Tomas Hires, Jo Jepson, Aleksandra Karpinska, Mimmi Lagergren, Marina Lukanina, Anna Rabacal, Peggy Saintin, Elisa Ughetto Comments? Ideas? Questions? Please send your e-mail to ottilia.von.chrismar@sca.com

I like the opportunity to develop. I like that the program is international and that I can meet the other trainees from all over Europe.
Daan Tijnagel (Technical Trainee, Gennep, The Netherlands)

The GDP is a structured approach which develops my own personal skills. It gives me the opportunity to reflect and review on my own developments on a regular basis and inspires me to take the next steps in my career and personal life.
Tobias Krmer (Controlling Trainee, Munich, Germany)

It is a huge responsibility, when people say to you that you are the future of the company, but at the same time it is a great motivation for new achievements!
Alexandra Popova (Sales & Marketing Trainee, Moscow, Russia)

Lets accelerate and become a tiger!

Paul Keijzers (Logistics Trainee, Gennep, the Netherlands)

The GDP gives you the tools to succeed, but it is up to you to seize the challenges and go after what you want.
Victor Oredsson (Technical Trainee, Falkenberg, Sweden)

It is a great opportunity to gain necessary professional knowledge and it is a chance to meet people from different countries and share and compare my experiences with them.
Kateryna Skarzhenivska (Sales & Marketing Trainee, Kiev, Ukraine)

Because our products make life easier for you and for millions of people around the world. Because our resources and the way we work are natural parts of the global lifecycle. And because we care.

This edition of Inside is the quarterly employee magazine of SCA Personal Care Europe, a Business Group of SCA. SCA is a global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products. SCA has about 45,000 employees and conducts sales in some 100 countries.

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