11 March 2010

Handelsbanken Basic Industry Seminar 11 March 2010Jan Johansson, President and CEO

11 March 20102

SCA – a global hygiene products and paper company

Net sales of SEK 111bn

Approximately 50,000 employees and sales in more than 100 countries

TEN and Tork leading global brands for incontinence care and Away From Home tissue

Ranked 2nd greenest company in the world, one of the world’s 100 most sustainable companies and one of the world’s most ethical companies, included in the Dow Jones Sustainability indexes

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Forest Products

Packaging Tissue

Personal Care

37%25%

15% 23%

Sales 2009: SEK 111bn

SCA GroupSales and EBIT split 2009

32%

39%

25%

4%

Sales splitEBIT splitEBIT split

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Strong global and regional positions

GlobalIncontinence care: 1AFH tissue: 3

Nordic region

Baby diapers: 1

EuropeTissue: 1Corrugated board: 2Baby diapers: 3Incontinence care: 1Privately owned forests: 1Mexico

Hygiene products: 2

ColombiaIncontinence care: 1Feminine care: 1Tissue: 1

4

AustraliaFeminine care: 1Incontinence care: 1Tissue: 2

North AmericaAFH tissue: 3Incontinence care: 3

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SCA short and mid term strategic focus

11 March 2010

SCA Group Strategic Direction

1. 2. 3.

6

SCA Group Strategic directionInitiatives

7

1. 2. 3.

Cost reductions in all business areas of close to SEK 1bn

Cash flow from current operations:increased SEK 7.7bn

Rationalized supplychain in Packagingand Tissue

Green field tissueplants in Russia and Mexico

Efficiency programs in Packaging & Forest Products

TissueTork elevationTempo complete carePlenty active wipe

Personal Care Stretch diaper upgradesTamponsBaby care products

PackagingMira System Tissue packaging solutions

Forest Products New paper qualitiesIncreased value added

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11 March 201088

SEKmSEKm

Coping recession Net sales and Operating profit

*Excluding SEK 439m Packaging restructuring costs

**Excluding SEK 387m Packaging restructuring costs

***Excluding SEK 632m Packaging restructuring costs

*** ***

11 March 2010

SCA Group Strategic Direction

1. 2. 3.

4.

9

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GrowthHigh potential in markets with low penetration

Usage of hygiene products

Units/capita/year Units/child/year Units/woman/year

Western Europe Eastern Europe Latin America AsiaNorth America

Kg/capita/year

Penetration in mature markets around 35%

10

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Strong SCA positionsGood market growthFavourable socio-demographics

Joint venture

Good market growthFavourable socio-demographics

Our growth markets

Market tests of Incontinence care products and Baby diapers

11 March 2010

25%

Mature markets

Emerging markets

% of Hygiene sales in 2009

2009 Emerging markets hygiene sales growth:

Personal Care: +13%

Tissue: +6%

GrowthHigh growth in Emerging markets

12

11 March 2010

SCA Group Strategic DirectionPersonal Care

13

Short and mid term

Maintain Tena leadership in premium segment and increase growth in economy segmentStrengthen leading positions in Europe Further restore Baby diapers private label profitabilityDrive innovationMarket test in ChinaGrow in prioritized Emerging marketsIncrease value added and branded

11 March 2010

SCA Group Strategic DirectionTissue

14

Short and mid term

Strengthen leading positions in Europe Further restore Consumer Tissue profitabilityDrive innovationGrow in prioritized Emerging marketsIncrease value added and branded

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Focused, differentiated & consumer relevant mega-brand portfolio

From … … To

DACH East

Nordic NL

Complicated, region specific, inefficient brand portfolio

Brand strategyConsumer Tissue Europe

11 March 2010

SCA Group Strategic DirectionPackaging

16

Short and mid term

Deliver restructuring programEffectively address cost and efficiency improvement needsDivest non-core assetsGrow value added

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Packaging restructuring program

Closed New Hythe testliner mill

Closed 11 corrugated units

Employee reduction: approx. 1,500 of 2,200

Costs: SEK 1,458m of SEK 1.7bn

Annualized savings: approx. 60% of SEK 1,070m

17

Current status

Full savings Q2 2010

11 March 2010

SCA Group Strategic DirectionForest Products

18

Short and mid term

Continued focus on productivity and efficiencyExplore opportunities to expand pulp capacityGrow value added and brandedCommercialize renewable energyExplore alternative areas of fiber use

30

40

50

60

70

80

90

100

110

120

-07 -08 -09 -10OCC PIX

EUR/t

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400425450475500525550575600625650675700725750775800825850875900925950

-98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10

NBSK PIX Value

USD/Metric tonne

NBSK pulpIncreasing raw material prices

0

50

100

150

200

250

300

350

400

450

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09

USD/short ton

High grade deinking OCC

Recovered paper - USA

February 2009 – USD 585February 2010 – USD 850

February 2009 – EUR 37February 2010 – EUR 93

February 2009 – USD 166February 2010 – USD 277

USD/short ton

USD/metric ton EUR / ton

OCC

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Outlook 2010

Hygiene businessesStable demandGood growth in emerging markets

PackagingDemand improvement, but weak startIncreasing prices

Forest ProductsLow demand and decreasing prices for publication paperImprovement for pulp and solid-wood products

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Q&A

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