SCA plans to split the Group into two listed companies in 2017, hygiene and forest products

SCA is a leading global hygiene and forest products company. Today about 85% of
the Group sales derives from the hygiene business and about 15% from the forest
products business. To create further value for the shareholders, the SCA Board
of Directors plans to initiate work in order to propose to the Annual General
Meeting 2017 to decide on a split of the Group into two listed companies. This
is planned to be completed through a distribution of the Group’s hygiene
business to its shareholders in accordance with the rules of Lex Asea*. In the
event of a distribution of the hygiene business, SCA’s shareholders will, in
addition to their current shareholding, also receive shares in the new listed
hygiene company.
In August 2015, SCA announced that, in order to further develop the Group’s two
operations, SCA had decided to initiate a dividing of the Group into two
divisions: a hygiene division and a forest products division.

“For the Annual General Meeting 2017, the Board of Directors plans to present a
proposal for the distribution and listing of the company's hygiene business”,
says Pär Boman, Chairman of the Board of Directors of SCA.

“Our hygiene and forest products businesses are two strong operations with
attractive offerings in their respective industries. After a thorough analysis,
our conclusion is that a split of SCA into two listed companies is the best way
to continue to create shareholder value, customer benefits and further
development opportunities”, says Magnus Groth, President and CEO of SCA.

An evaluation, mainly based on value creation and flexibility for the
shareholders, has been made of various methods and structural alternatives to
achieve a complete split of the two businesses into two independent companies.
The conclusion is that a distribution and listing of SCA's hygiene business will
create more shareholder value and incur relatively low transactional risk and
relatively low transaction costs.

“It is the Board of Directors´ opinion that the proposal to split the hygiene
and forest products businesses into two listed companies increases the ability
for each business to successfully realize its strategies and increase value for
SCA's shareholders. It is also pleasing that the main shareholders will support
the proposal at the Annual General Meeting”, says Pär Boman Chairman of the
Board of Directors of SCA.

“As a long-term asset manager and active owner in SCA we share the company’s
opinion that a dividing of the business creates value over time. It is a natural
step in the successful streamlining towards the hygiene business and the forest
products business conducted over several years, says Helena Stjernholm”, CEO,
Industrivärden.

Prior to the Annual General Meeting 2017, the Board of Directors plans to
present a proposal for the distribution and listing of the Group's hygiene
business. The distribution is proposed to be made to the shareholders in
proportion to their holdings of SCA's Class A and Class B shares. The
distribution is expected to meet the requirements of Lex Asea. If the
shareholders decide in favor of the proposal, the plan is to distribute and list
the new hygiene company on Nasdaq Stockholm during the second half of 2017.
Following a split, there will be two listed companies. One will be a hygiene
company including SCA's current business areas Personal Care and Tissue. The
second, a forest products company including all forest products operations and
all the forest land owned by the SCA Group.

“SCA's leading global hygiene business offers products that make life easier
every day for millions of people around the world. An increasing awareness of
the relationship between hygiene and health, combined with a growing and aging
population, are creating greater demand for hygiene products. Furthermore, SCA
is Europe's largest private forest owner and the well-integrated supply chain,
with production facilities concentrated in Sweden in close proximity to its
forest holdings, offers significant synergies and competitive advantages. Forest
Products is an efficient and well-invested business. Our investment in increased
pulp capacity in the Östrand mill, one of the largest industrial investments in
Sweden, will further strengthen our long-term competitiveness”, says Magnus
Groth, President and CEO of SCA.

Effective immediately, SCA's Directors appointed by shareholders and CEO, Magnus
Groth, have, in addition to current assignments also been appointed the Board of
Directors and CEO of the parent company for the hygiene business. The intention
is to appoint Ulf Larsson, current President of SCA Forest Products and a member
of the Executive Management Team, CEO of the listed forest products company
after the distribution of the hygiene business.

Effective immediately, the Board of Directors has also appointed Ulf Larsson, in
addition to current assignments, Executive Vice President of SCA.

The intention is that the new listed hygiene company receives a new name and is
registered in Stockholm and the forest products company keeps the name SCA and
is registered in Sundsvall.

Conference call

A conference call, held in English, for media, analysts and investors will be
held today at 09:30 CET by Magnus Groth, President and CEO of SCA. The
conference call will be live webcasted at www.sca.com. You can also participate
by telephone, call: +1 646 934 6795, +44 (0)207 1620 177 or +46 (0)8 5052 0114.
Specify "SCA" or conference id 959885. Please call in good time before the
conference starts.

Facts SCAs businesses 2015

+--------------+----------------+------------------------+
|              |Hygiene business|Forest products business|
+--------------+----------------+------------------------+
|              |                |                        |
+--------------+----------------+------------------------+
|Net sales     |SEK 98,528m     |SEK 17,279m             |
+--------------+----------------+------------------------+
|Adjusted      |SEK 11,207m     |SEK 2,605m              |
|operating     |                |                        |
|profit1       |                |                        |
+--------------+----------------+------------------------+
|Capital       |SEK 68,201m     |SEK 37,217m             |
|employed2     |                |                        |
+--------------+----------------+------------------------+
|Average number|39,898          |4,153                   |
|of employees  |                |                        |
+--------------+----------------+------------------------+
|Sales in      |Approx. 100     |Approx. 50              |
|number of     |                |                        |
|countries     |                |                        |
+--------------+----------------+------------------------+
|1Excluding                     |                        |
|items                          |                        |
|affecting                      |                        |
|comparability                  |                        |
|and common                     |                        |
|Group expenses                 |                        |
|2 Excluding                    |                        |
|common Group                   |                        |
|items                          |                        |
+--------------+----------------+------------------------+

*Lex Asea is a tax regulation in Sweden. This provision means that if a parent
company distributes shares in a wholly owned subsidiary to its shareholders,
then the taxation of the capital gain the shareholders may enjoy in connection
to the distribution under certain circumstances be postponed until the time when
the shareholder in turn sells the received shares.

NB: This information is information that SCA is obliged to make public pursuant
to the EU Market Abuse Regulation or the Securities Markets Act. The information
was submitted for publication, through the agency of the contact person set out
below, at 07:30 CET on August 24, 2016.

Karl Stoltz, Media Relations Manager, +46 8 788 51 55
For further information, please contact:

Joséphine Edwall-Björklund, SVP Group Functions Communications, +46 8 788 52 20
Linda Nyberg, VP Media Relations and Online Communications, 46 8 788 51 58
Johan Karlsson, VP Investor Relations, 46 8 788 51 30
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, Vinda and Zewa. As Europe’s largest private forest
owner, SCA places considerable emphasis on sustainable forest management. The
Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK
115bn (EUR 12.3bn). 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.