Interim Report Q1 2016


JANUARY 1 – MARCH 31, 2016 (compared with same period a year ago)

  · Net sales rose 1% (5% excluding exchange rate effects) to SEK 28,177m
(27,958)
  · Organic sales growth, which excludes exchange rate effects, acquisitions and
divestments, was 3%
  · Operating profit, excluding items affecting comparability, rose 13% to SEK
3,247m (2,872)
  · The operating margin, excluding items affecting comparability, was 11.5%
(10.3%)
  · Profit before tax, excluding items affecting comparability, rose 12% to SEK
2,922m (2,602)
  · Items affecting comparability totaled SEK -191m (-122), of which SEK -185m (
-119) affects cash flow
  · Earnings per share were SEK 2.74 (2.43)
  · Return on capital employed, excluding items affecting comparability, was
11.9% (10.4%)
  · Cash flow from current operations was SEK 1,821m (1,246)
  · The acquisition of Wausau Paper Corp. was closed on January 21, 2016


(Table included in attached pdf)


CEO’S COMMENTS
Through continued focus on our strategic priorities profitable growth,
innovation and efficiency, we delivered favorable organic sales and earnings
growth for the first quarter of 2016. We have introduced ten innovations under
the Libero, Libresse, Lotus, TENA and Tork brands, among others.

In January 2016 we completed the acquisition of Wausau Paper Corp., a leading
North American manufacturer of Away-from-Home tissue. The integration process
has been started, and we expect to achieve annual synergies of approximately USD
40m with full effect in three years. After the end of the quarter, on April 1,
we integrated our hygiene business in Southeast Asia, Taiwan and South Korea
with Vinda, where SCA is the majority shareholder. Work has now begun on
leveraging our joint strengths to build a leading Asian hygiene business.

Consolidated net sales for the first quarter of 2016 increased by 1% compared
with the same period a year ago. Organic sales growth was 3%. In emerging
markets, which accounted for 32% of sales, organic sales growth was 9%, while in
mature markets organic sales growth was -1%. The hygiene business showed good
organic sales growth, which amounted to 6% for Personal Care and 4% for Tissue.
Sales for Forest Products decreased by 6%, mainly attributable to lower prices.

Consolidated operating profit for the first quarter of 2016, excluding items
affecting comparability, currency translation effects, acquisitions and
divestments, rose 13% compared with the same period a year ago. The increase is
mainly attributable to higher volumes, a better price/mix, lower energy costs
and cost savings. Higher raw material costs had a negative earnings impact.
Operating profit for the hygiene business improved mainly as a result of higher
volumes, a better price/mix, cost savings and lower energy costs for Tissue. The
lower operating profit for Forest Products was mainly attributable to lower
prices.

Consolidated operating margin, excluding items affecting comparability,
increased by 1.2 percentage points to 11.5%. Operating cash flow increased by
40%. Return on capital employed, excluding items affecting comparability, grew
by 1.5 percentage points to 11.9%.

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 and Online, 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 at 08:00 CET on April 28, 2016. This report
has not been reviewed by the company’s auditors.

Attachments

04286859.pdf