SCA Capital Market Day focuses on profitability

Today, SCA – the hygiene and forest company – is holding a CMD in Stockholm. The
Group-wide financial targets and strategy remains with a focus on efficiency,
innovation, growth and sustainability. The target for return on capital employed
for Tissue and Forest Products has been adjusted. In recent years, SCA has
completed hygiene acquisitions and divested for example the packaging
operations. In order to further strengthen profitability in the hygiene
operations, measures are initiated for decreased costs and improved efficiency.
SCA is undergoing a major transformation and restructuring, and retains its
Group-wide financial targets: a 13% return on capital employed (ROCE) over a
business cycle, a debt/equity ratio of 0.70 and a debt-payment capacity of 35%.
The dividend policy is to pay out one-third of cash flow from current
operations. The ROCE target has been revised from 13% to 15% for Tissue and, for
Forest Products, from 11% to being in the top quartile of the sector.

The integration of the European tissue operations acquired from Georgia-Pacific
is progressing in line with or better than planned, and is expected to provide
EUR 125m in annual cost synergies, with full effect after three years.

“Our efficiency program from 2011 goes according to plan and to date we have
achieved more than half of the expected annual savings of EUR 80m. A new
efficiency program has been initiated within the hygiene operations to further
reduce costs and increase productivity. It will provide annual cost savings of
some EUR 300m, with full impact in 2015. About 1,500 employees are affected and
costs are expected to some EUR 100m,” says Jan Johansson, President and CEO.

During the past year, SCA completed a number of major acquisitions and
divestments, which has strengthened the company and focused operations on
hygiene and forest products. The hygiene operations currently accounts for 80%
of SCA’s sales, with the majority in Europe, but with increasing exposure to
emerging markets, both via organic growth and acquisitions. Increasing
disposable income in emerging markets offers continuing favourable conditions
for growth in the hygiene operations.

“We have seen great innovation progress with successful examples such as the
Tork Xpressnap napkin dispenser and the TENA Belt incontinence product,” notes
Jan Johansson.

­“We have taken several steps to sharpen the focus of forest products operations
on high value added products, most lately with the rebuild of a paper machine in
Ortviken and the disposal of SCA’s shareholding in the UK-based Aylesford paper
mill. We are also continuing to take steps in decreasing costs and making our
production more environmentally friendly, most recently with the investment in a
biofuel lime kiln at the Munksund kraftliner mill.”

Stockholm, November 5, 2012

For additional information, please contact:
Johan Karlsson, Vice-President, Investment Relations, +46 8 788 51 30
Petter Tiger, Acting Communications Manager Media Relations, +46 8 788 53 62
Joséphine Edwall-Björklund, SVP Corporate Communications, +46 8 788 52 34
SCA is a global hygiene and forest company that develops and produces personal
care products, tissue and forest products. Sales are conducted in some 100
countries. SCA has many well-known brands, including the global brands TENA and
Tork. Sales in 2011 amounted to SEK 106 billion (EUR 11.7 billion). SCA has
approximately 37,000 employees. More information at www.sca.com