Investor Relations

Q1 2018

1929 SCA founded

2

1975-2006 Acquisitions :

• Mölnlycke, Sweden

• PWA, tissue, Germany

• Georgia-Pacific, AfH tissue, USA

Divestments:

Packaging business

Two publication paper mills

2007-2016 Acquisitions:

• Vinda, tissue, China

• P&G, tissue, EU

• Georgia-P., tissue, EU

2017 split

Forest Products

1929

Forest Products

and Packaging 2006

Hygiene

Forest Products

Hygiene

2016

2017

Forest Products

Divestments:

• Packaging

• Two publication paper mills

3

EBITDA margin 1)

23% Industrial ROCE 2)

13%

Forestland

2.6m ha

Net growth

3.0m m3fo

Sales (SEKm)

16,664 EBITDA 1) (SEKm)

3,761

Forest Wood

Pulp Paper

Note: 1) Adjusted EBITDA and EBITDA margin. 2) Adjusted ROCE for the industrial segments; Wood, Pulp

and Paper adjusted for capex invested in the Östrand project.

4

Growing

demand for

virgin fiber

E-commerce

Increased

demand for

renewable

materials

Eco-awareness

More

packaged

goods

Kraftliner mill

Paper mill

Pellet production

Pulp mill

Saw mill

Saw mill, partly-owned

6% of Sweden

Productive forestland

2.0m ha

Forestland

2.6m ha

Standing volume

232m m3fo

Munksund

Obbola

Rundvik

Gällö

Bollstabruk

Östrand

Ortviken

Tunadal

Härnösand

Stugun

5

6

Growth Harvesting Land value

7 Note: (1) Corresponding to approximately 4.3m m3sub.

Gross growth of standing forest

Natural losses and pre-commercial thinning

Available growth of standing forest

Annual harvesting

Annual net increase of standing forest

9.5

-1.3

8.2

-5.2

3.0

Forest growth metrics (m m3fo)

(1)

Growth drivers: Plant genetics, Age distribution, Forest

management methods, Global climate change

Current cash flow

New harvesting plan every 8-10 years

Harvesting increase to >7m m3fo in 2116

Future cash flow

Real growth rate of 3.5% (8.2/232)

8

From 11 to 5 highly automated and efficient sawmills

Average capacity/

mill: (m3/year) 160k 430k

1.8m m3

2.2m m3

2007 2017

11

sawmills

5

sawmills

SEK ~2.0bn invested

since 2007

Rundvik

Munksund

Bollsta

Tunadal

Gällö

Jämtlamell

Rundvik

Munksund

Holmsund

Vilhelmina

Bollsta

Tunadal

Gällö

Tjärnvik

Boden

Graninge

2007 2017

9

Share of Wood’s net sales (2017)

Building Materials

Trade

Wood Industry

Wholesalers

(standard wood)

45%

Wood sales (SEKbn)

1.1

4.7

6.0

1997 2007 2017

Wholesalers Wood Industry Building Materials Trade

+9% p.a.

37%

18%

10

Meeting long-term growth in

tissue and white packaging

Increases value of the forest

World-class competitiveness

Cost efficient supply of raw materials

7.8 SEKbn

investment

Kraftliner – strategic growth area

Grow the share of value-added products: white-

top, heavy duty and wet strength

Increase production capacity and improve

efficiency

Publication paper – maximize

cash flow

Positive cash-flow through operational excellence

and optimized product and market mix

11

12

One of Europe’s largest supplier of forest

based biofuels with 9 TWh produced in 2017

301 wind turbines on SCA’s forest land with

an average annual production of 2.3 TWh

Future growth opportunities within

liquid biofuels and green chemicals

13

EBITDA margin

Nordic peer group

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

14

Pilot facility for biofuel production in operations since Q2 2017

Investment in increased production of White-top Kraftliner

The world's fastest saw line in full production in Tunadal

Environmental permit applications for a possible production increase at Obbola

Kraftliner mill and a bio refinery at Östrand initiated

Wind power target of 5 TWh 2020 will be achieved

Start-up of a 1 million tonnes pulp mill in June 2018

15

SCA’s growing forest binds ~4m tons CO2

annually and provide renewable materials

95% fossil free production

21% of the productive forest land is excluded

from harvesting to preserve biodiversity

Carbon dioxide emissions from fossil fuels

reduced by ~50% since 2010

Our forests will be as rich in timber,

biodiversity and nature experience

as today

16

Continuous

improvement

Strategic

competence

Health and

safety

Kraftliner

expansion

Renewable

energy

Pulp expansion

project

Strong market with higher prices

Sales growth of 11% vs Q1 2017

• Price/mix +13%, volumes -3%, currency 1%

EBITDA up 47% vs Q1 2017

• Higher prices

• Positive currency effects

• Harsh winter conditions

Östrand project progressing according to plan

• Planned start-up in June 2018

• SEK 6.1bn invested up to Q1, out of SEK 7.8bn in total

Stable wood supply despite harsh winter conditions

Improved product and market mix

18

797 724

1,049 1,078

1,175

20% 17%

25% 25% 27%

Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18

EBITDA development (SEKm)

Note: 1) ROCE for the industrial segments; Wood, Pulp and Paper (* Industrial ROCE adjusted for capex

invested in the Östrand project).

EBITDA margin

26.7%

Industrial ROCE 1)

12% / 17%*

Net debt/EBITDA

1.8x

EBITDA (SEKm)

1,175 47%

19

20

Pilot facility for biofuel production in operations since Q2 2017

Investment in increased production of White-top Kraftliner

The world's fastest saw line in full production in Tunadal

Environmental permit applications for a possible production increase at Obbola

Kraftliner mill and a bio refinery at Östrand initiated

Wind power target of 5 TWh 2020 will be achieved

Start-up of a 1 million tonnes pulp mill in June 2018

Jerry Larsson, President Wood

April 1, 2018

Kristina Enander, President Pulp

November 1, 2018

Jonas Mårtensson, President Forest

April 1, 2018

22

1,312 1,298

Q1 2017 Q1 2018

325 304

Q1 2017 Q1 2018

24.8% 23.4%

Q1 2017 Q1 2018

-1% -6%

Net sales (SEKm) EBITDA (SEKm) EBITDA margin

Stable wood supply despite harsh winter conditions

Slight increase in prices, especially higher prices

for imported wood

Sales down 1%

• Lower volumes

• Minor price increases

EBITDA down 6%

• Harsh winter conditions affecting transportation and

harvesting costs

80

90

100

110

120

Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18

Pulpwood Sawlogs

Price development – Pulpwood and Sawlogs

23

95

100

105

110

115

120

Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18

Price index SEK

1,364 1,503

Q1 2017 Q1 2018

Net sales (SEKm) EBITDA (SEKm) EBITDA margin

145

172

Q1 2017 Q1 2018

10.6% 11.4%

Q1 2017 Q1 2018

Price development – Solid Wood Products

10% Strong market with continued price increases

Low inventory levels

Sales up 10%

• Higher prices

EBITDA up 19%

• Higher prices

• Increased raw material costs

• Extra costs related to the harsh winter conditions

19%

24

641 589

Q1 2017 Q1 2018

104

178

Q1 2017 Q1 2018

16.2%

30.2%

Q1 2017 Q1 2018

Net sales (SEKm) EBITDA (SEKm) EBITDA margin

Price development – NBSK Pulp

Strong pulp market with increased prices

Östrand project on plan • Planned start-up in June 2018

• SEK 6.1bn invested up to Q1, out of SEK 7.8bn in total

Sales down 8% • Higher prices

• Lower deliveries due to inventory build up ahead

of the Q2 stop

EBITDA up 71% • Higher prices

• Lower deliveries

• Direct costs affected by project

• Negative currency effects – mainly USD

95

100

105

110

115

120

125

Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18

Price index SEK

-8% 71%

25

Start-up in June according to plan

7.8 SEKbn

investment

Extended stop initiated in April

• Extension of recovery boiler

• Fiber line

Sequential start-up mitigates risk

• Wood handling unit – Q3 2017

• Control center – Q3 2017

• Evaporation plant – Q4 2017

• Water treatment – Q4 2017

• Drying and packaging – Q1 2018

26

27

Availability

• December: 89.3%

• January: 99.2%

• February: 99.9%

• March: 100%

28

29

30

31

80

90

100

110

120

130

140

Q1'16

Q1'17

Q1'18

Price index SEK

2,049

2,383

Q1 2017 Q1 2018

268

586

Q1 2017 Q1 2018

13.1%

24.6%

Q1 2017 Q1 2018

80

90

100

110

120

130

140

Q1'16

Q1'17

Q1'18

Price development –

Kraftliner

Price development –

Publication paper

16% 119%

Net sales (SEKm) EBITDA (SEKm) EBITDA margin

Strong Kraftliner market with higher prices

Improved market for publication paper

Sales up 16%

• Higher Kraftliner prices

EBITDA up 119%

• Higher Kraftliner prices

• Positive currency effects

• Improved product and market mix

• Stable cost development

32

Quarter

SEKm Q1 2018 Q1 2017 Change

Net sales 4,400 3,972 11%

EBITDA 1,175 797 47%

EBITDA margin 26.7% 20.1% 6.6 p.p.

EBIT 889 498 79%

EBIT margin 20.2% 12.5% 7.7 p.p.

Financial items 1 -36

Profit before tax 890 462 93%

Tax -191 -99

Profit for the period 699 363 93%

Earnings per share, SEK 1.00 0.52

33

Paper

Net sales (SEKm)

Pulp Forest Wood

312 295 338

325 364

316 358

304

25% 23%

26% 25%

30%

25% 28%

23%

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

1,2

34

1,2

61

1,2

96

1,3

12

1,2

10

1,2

61

1,2

87

1,2

98

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

1,8

89

1,8

59

1,9

98

2,0

49

2,0

69

2,0

96

2,2

20

2,3

83

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

1,4

96

1,3

20

1,3

61

1,3

64

1,6

37

1,5

67

1,4

26

1,5

03

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

556

668

668

641

585

644

672

589

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

140 143 161 145

154 187 184 172

9% 11% 12% 11% 9% 12% 13% 11%

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

105 160

102 104 71

158 149 178

19%

24%

15% 16% 12%

25% 22%

30%

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

378

293 271 268 291

439 481

586

20% 16% 14% 13% 14%

21% 22% 25%

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

EBITDA (SEKm) and EBITDA margin

34

SEK 3,972m

13% -3% 1%

SEK 4,400m

Net salesQ1 2017

Price/Mix Volume Currency Net salesQ1 2018

+ 11%

Positive for all segments Negative for Pulp

and Kraftliner

EUR positive, USD negative

35

SEK 797m

SEK +482m

SEK -25m

SEK -65m SEK

+4m

SEK +45m

SEK -63m SEK

1,175m

EBITDAQ1 2017

Price/Mix Volume Raw material Energy Currency Other EBITDAQ1 2018

+ 47%

Higher prices for all segments. Focus on

improving mix

EBITDA margin

20.1% EBITDA margin

26.7%

Higher costs for wood raw material and chemicals

EUR positive, USD negative

36

SEKm Q1 2018 Q1 2017

EBITDA 1,175 797

Revaluation of biological assets and other non cash flow items -253 -223

Operating cash surplus 922 574

Change in working capital -159 -354

Current capital expenditures -76 -126

Other operating cash flow -96 -9

Operating cash flow 591 85

Strategic capital expenditures -634 -515

37

Start-up in June according to plan

7.8 SEKbn

investment

Ramp-up period of 12-18 months

• 2018 – volumes in-line with 2017

• 2020 – first full year at full capacity

World-class competitiveness

• Doubled NBSK capacity

• Fixed cost reduction of SEK 350 per tonnes compared to pre project level

• Improved energy balance – from a net consumer of 0.1 TWh to a net producer of 0.5 TWh

• Potentially higher wood costs as wood has to be sourced further away

Project related costs (indirect)

• Project related costs of SEK 60m (150), of which SEK 10m (50) depreciation

• Primarily during the first 9 months of 2018

Maintenance stops

• Start-up in June 2018, following an extended maintenance stop

• Expected EBITDA impact of maintenance stops (1)

Q1: SEK 0m (8)

Q2: SEK 220m (65)

Q3: SEK 0m (0)

Q4: SEK 20m (58)

Ramp-up effects (direct)

• Increased direct costs for energy, chemicals and wood during ramp-up

• Higher share of B-grade pulp during ramp-up

• Expected earnings impact of SEK 100-250m, primarily in Q2 and Q3

Working capital

• Increase due to higher production volumes, particularly raw material inventory

38 Note: Figures in “(#)” refer to 2017.

(1) The estimated effect of maintenance stops on earnings in 2018, calculated as the total of the direct cost of the

maintenance and the effect from lower fixed cost coverage from the reduced production during the stop.

EBITDA impact Q1 2018 2018e 2017

Project related costs 16 50 100

Maintenance stops 0 240 131

Ramp-up effects 25 100-250 -

Total (SEKm) 41 390-540 231

One-off costs related to the finalization of the Pulp expansion project

39

SEKm Mar 31, 2018 Dec 31, 2017

Forest assets according to IAS 41 1) 31,593 31,386

Deferred tax relating to Forest assets -6,950 -6,905

Forest assets, net of deferred tax 24,643 24,481

Working capital 3,025 2,861

Working capital/Net sales 2) 17% 18%

Other capital employed 15,832 15,377

Total capital employed 43,500 42,719

Net debt 7,256 5,966

Net debt/EBITDA 3) 1.8x 1.6x

Equity 36,244 36,753

Net debt/Equity 20% 16%

Note: 1) Gross value before deferred taxes. 2) Calculated as an average of working capital for 13 months as

a percentage of 12-month rolling net sales. 3) 12-months EBITDA, up to end of each period.

Strong market with increased prices

Sales growth of 11% vs Q1 2017

EBITDA up 47% vs Q1 2017

Östrand project progressing according to plan

Stable wood supply despite harsh winter conditions

Improved product and market mix

40

42

3,300

3,781

3,385

3,648

4,026

21% 23%

22% 22% 24%

2014 2015 2016 2017 LTM

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

EBITDA (SEKm) and EBITDA margin

15,412 16,152

15,373

16,664 17,092

2014 2015 2016 2017 LTM

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Net sales (SEKm)

43

Net sales (SEKm)

EBITDA (SEKm) and EBITDA margin 1)

603 478 531

670 697

12% 9% 10% 11% 11%

2014 2015 2016 2017 LTM

1,232 1,213 1,238 1,363 1,342

24% 24% 25% 27% 27%

2014 2015 2016 2017 LTM

768

970

530 482 556

31% 35%

21% 19%

22%

2014 2015 2016 2017 LTM

5,187 5,108 4,978 5,070 5,056

2014 2015 2016 2017 LTM

5,114 5,315 5,441 5,994 6,133

2014 2015 2016 2017 LTM

2,518 2,760 2,492 2,542 2,490

2014 2015 2016 2017 LTM

8,226 8,548 7,744

8,434 8,768

2014 2015 2016 2017 LTM

Paper Pulp Forest Wood

1,243 1,295 1,245

1,479

1,797

15% 15% 16% 18%

20%

2014 2015 2016 2017 LTM

Note: 2014 and 2015 EBITDA refer to adjusted figures. 2016 and forward refer to unadjusted

figures. For details please see the quarterly report.

This presentation may contain forward-looking statements. Such statements are based on our current expectations and

are subject to certain risks and uncertainties that could negatively affect our business. Please read SCA’s most recent

annual report for a better understanding of these risks and uncertainties.