SCA and Vinda to integrate hygiene business in China

SCA, a leading global hygiene and forest products company, and the majority
shareholder in China’s third-largest tissue company, Vinda International
Holdings Limited (“Vinda”) is strengthening the cooperation with Vinda. SCA to
transfer its hygiene business in China (Mainland China, Hong Kong and Macau) to
Vinda.
As part of the transaction, SCA and Vinda have signed an agreement regarding the
exclusive license to market and sell the SCA brands; TENA, (incontinence
products) Tork (Away from Home tissue), Tempo (consumer tissue), Libero (baby
diapers), and Libresse (feminine care) in China (Mainland China,Hong Kong and
Macau). With this agreement, Vinda will hold the rights to these product brands
in these Chinese markets. Vinda will acquire SCA’s Dr P and Sealer brands in
China.

“With its immense number of inhabitants, ageing population and low penetration
of hygiene products, China is an attractive and important market with
significant potential for future growth. This new cooperation and transaction
will generate mutual benefits for both SCA and Vinda particularly in
distribution, sales, innovation and R&D. Vinda will get access to a broader
product portfolio and SCA’s brands will have the potential to reach a broader
base of consumers and customers via the extensive and robust distribution
network of Vinda in China,” says Jan Johansson, President and CEO of SCA.

SCA has been a shareholder in Vinda since 2007, became its majority shareholder
in late 2013, and has consolidated Vinda financials since the first quarter of
2014.

SCA’s hygiene business in China (Mainland China, Hong Kong and Macau) had net
sales of approximately SEK 600m in 2013. The purchase consideration amounts to
HKD 1,144m (approx. SEK 1,000m) on a debt-free basis.

The agreement is subject to approval by the independent shareholders of Vinda.
Vinda is listed on the Hong Kong Stock Exchange.

NB: This information is such that SCA must disclose in accordance with the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on 18 July 2014, at approximately
01:00 CET.
For additional information please contact:
Johan Karlsson, VP Investor Relations, 46 8 788 51 30
Boo Ehlin, VP Media Relations, 46 8 788 51 36
SCA is a leading global hygiene and forest products company. The Group develops
and produces sustainable personal care, tissue and forest products. Sales are
conducted in about 100 countries under many strong brands, including the leading
global brands TENA and Tork, and regional brands, such as Libero, Libresse,
Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest
owner, SCA places considerable emphasis on sustainable forest management. The
Group has about 44,000 employees. Sales in 2013 amounted to approximately SEK
93bn (EUR 10.7bn). SCA was founded in 1929, has its headquarters in Stockholm,
Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit
www.sca.com.