Interim Report Q2 2015

JANUARY 1 – JUNE 30, 2015 (compared with same period a year ago)

  · Net sales rose 14% (5% excluding exchange rate effects) to SEK 57,177m
(50,063)
  · Organic sales growth, which excludes exchange rate effects, acquisitions and
divestments, was 5%
  · Operating profit, excluding items affecting comparability, rose 9% to SEK
6,089m (5,564)
  · The operating margin, excluding items affecting comparability, was 10.6%
(11.1%)
  · Profit before tax, excluding items affecting comparability, rose 11% to SEK
5,626m (5,081)
  · Items affecting comparability totaled SEK -280m (-405)
  · Earnings per share were SEK 5.23 (4.66)
  · Return on capital employed, excluding items affecting comparability, was
11.4% (11.4%)
  · Cash flow from current operations was SEK 3,366m (2,078)

(Table included in attached pdf)

CEO’S COMMENTS
The second quarter of 2015 showed continued good organic sales growth and a
higher operating profit compared with the same period a year ago. This is
despite a continued challenging business environment, with higher raw material
costs mainly owing to the stronger U.S. dollar. The favorable performance has
been made possible by continued focus on our three strategic priorities:
profitable growth, innovation and efficiency. During the quarter we introduced
ten innovations and product launches under brands such as Edet, Okay, Plenty,
TENA, Tork and Zewa, at the same time that our work on improving efficiency
along the entire value chain continues with undiminished strength.

We continue to invest in emerging markets and have decided to invest
approximately SEK 650m in a new production facility in Brazil for the
manufacture of incontinence products. SCA is today the second largest company in
the Brazilian market for incontinence products, with the globally leading TENA
brand and the local Biofral brand. Brazil, which is one of SCA’s prioritized
emerging markets, is the third largest retail market in the world for
incontinence products.

During the second quarter of 2015, price increases were achieved for consumer
tissue in Europe, with gradual effect during the second half of 2015.

Consolidated net sales for the second quarter of 2015 increased by 13% compared
with the same period a year ago. Organic sales growth was 5%, with growth in all
business areas. In emerging markets, which accounted for 33% of sales, organic
sales growth was 12% and in mature markets organic sales growth was 2%.

Consolidated operating profit for the second quarter of 2015, excluding items
affecting comparability, gains on forest swaps and currency translation effects,
rose 9% compared with the same period a year ago. The increase is mainly
attributable to a better price/mix, higher volumes and cost savings. Raw
material costs increased by SEK 435m. The operating margin, excluding items
affecting comparability and gains on forest swaps, increased by 0.3 percentage
points to 11.0%. Operating cash flow increased by 42%.

Personal Care showed a higher operating profit for the second quarter of 2015
compared with the same period a year ago. Operating profit was favorably
affected by a better price/mix, higher volumes and cost savings. Higher raw
material costs had a negative impact on earnings as a result of the stronger
U.S. dollar and higher pulp prices, which were not fully compensated by lower
costs for oil-based raw materials. Tissue showed a higher operating profit owing
to a better price/mix, higher volumes and cost savings. Higher raw material
costs related mainly to the stronger U.S. dollar had a negative impact on
earnings. Operating profit for Forest Products, excluding gains on forest swaps,
rose mainly as a result of higher prices (including exchange rate effects) and
cost savings.

For further information, please contact:
Fredrik Rystedt, CFO and Executive Vice President, +46 8 788 51 31
Johan Karlsson, Vice President Investor Relations, Group Function
Communications, +46 8 788 51 30
Linda Nyberg, Vice President Media Relations and Online Communications, Group
Function Communications, +46 8 788 51 58
Joséphine Edwall-Björklund, Senior Vice President, Group Function
Communications, +46 8 788 52 34

NB
SCA discloses the information provided herein pursuant to the Securities Markets
Act. This report has been prepared in both Swedish and English versions. In case
of variations in the content between the two versions, the Swedish version shall
govern. Submitted for publication on July 16, 2015, at 12:00 CET.