SCA reorganizes for higher growth and profitability

SCA reorganizes for higher growth and profitability

As of 1 April, a new organization is being implemented within SCA. Strong focus
is being placed on growth in the hygiene area - tissue and personal care
products. 
A global category organization is being established in the hygiene operations. 
Packaging and the forest products segments will focus on improving cash flow and
profitability and, for limited time, a new position as Chief Operating Officer
(COO) is being established to lead this improvement work. 

When Jan Johansson became President and CEO of SCA on 1 November 2007, he
initiated a total review of the company's management structure.

“We have concluded that SCA within the hygiene area must be quicker and more
efficient in order for us to leverage the growth opportunities and also to, in
this way, improve profitability. We must have a strong global approach in our
hygiene business. Our new organization creates the prerequisites for our
businesses to develop based on their respective conditions,” says Jan Johansson.

In the hygiene area, SCA offers baby diapers, feminine hygiene products,
incontinence care products and tissue for consumers and bulk users. It is mainly
here, in the hygiene segment, that the growth opportunities exist, especially in
emerging markets. 

“SCA has already two brands with sales above 1 billion Euro, the successful Tena
and Tork brands. We intend to strengthen their positions further and also
develop several other existing brands to greater positions”, says Jan Johansson.
He adds:

“Within consumer tissue, we have defined significant growth opportunities, while
at the same time we need to generate a sharp boost in profitability in mature
markets. Baby diapers and feminine hygiene products also have good opportunities
for growth based on strong regional positions.”

SCA's growth will focus on being number one or number two on global or selected
markets in hygiene. The new global category organization will be pooling
resources from the business areas into a new organization headed by Gunnar
Johansson, currently President of SCA's Personal Care business group. The new
unit will serve as a motor to drive organic growth. This will be accomplished
with a global strategic focus and includes responsibility for brand strategies,
consumer insight and product innovation.

“I place particularly heavy emphasis on increasing the speed to market,” says
Jan Johansson.

The strategy for the forest products operations is set, as well as for the
packaging operations where an internal consolidation is carried out with
undiminished force. However, an active benchmark will be made between the two
operations with the aim of benefiting from the positive development that has
occurred with regard to productivity and efficiency in the forest products
business. 

A Chief Operating Officer (COO) is being appointed to lead and coordinate the
work in these two operations reporting to the CEO. Kenneth Eriksson, currently
President of Forest Products, is being appointed COO. He will be succeeded at
Forest Products by Ulf Larsson, head of SCA's sawmill operations.

Other management changes is the appointment of Rijk Schipper as President
Personal Care Europe. Mr Schipper is currently President of Asia Pacific. He
will be succeeded by Christoph Michalski, currently SVP Business Development and
Strategic Planning, and with a solid experience from the consumer goods
industry. Mats Berencreutz remains President for Tissue Europe and Thomas Wulkan
remains President for Hygiene Americas. John Williams remains President
Packaging Europe.

“The overriding goal is to, through faster growth and improved profitability,
significantly increase the shareholder value in the group. With the new, global
category organization, more distinct and stronger decision-making is created
regarding on which markets and in which segments SCA shall grow,” says Jan
Johansson.

As the new organization becomes effective April 1, SCA's Group Management
consists of CEO, the Presidents of Global Hygiene Category, Tissue Europe,
Personal Care Europe, Hygiene Americas, Asia Pacific, Packaging and Forest
Products as well as CFO, COO and SVPs of corporate staffs, all reporting to
President and CEO, Jan Johansson. 



A Q&A phone conference will be held today, Monday March 10th, at 09.30 CET. 
To participate, please call:

+46 (0) 850 520 270
+44 (0) 208 817 9301
+1 718 354 1226 


Stockholm, 10 March, 2008  


For further information please contact
Bodil Eriksson, Corporate Communications, +46 8 788 5234
Pär Altan, (media) +46 8 788 5237
Johan Karlsson, (investors) + 46 8 788 5130


NB
This information is such that SCA must disclose in accordance with the
Securities Markets Act. 



SCA is a global consumer goods and paper company that develops and produces
personal care products, tissue, packaging solutions, publication papers and
solid-wood products. Sales are conducted in some 90 countries. SCA has many
well-known brands, including the global brands Tena and Tork. Sales in 2007
amounted to SEK 106 billion (EUR 11.4 billion). SCA has approximately 50,000
employees. More information at www.sca.com