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SCA Capital Market Day focuses on profitability

  SCA Capital Market Day focuses on profitability

Business Wire

STOCKHOLM -- November 05, 2012

Regulatory News:

Today, SCA (STO:SCAA)(STO:SCAB) – 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

SCA is a global hygiene andforest 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. Salesin 2011 amounted to SEK106 billion (EUR11.7 billion). SCA
has approximately 37,000 employees. More information at www.sca.com

This information was brought to you by Cision http://www.cisionwire.com

Contact:

Johan Karlsson
Vice-President, Investment Relations
+46 8 788 51 30
or
Petter Tiger
Acting Communications Manager Media Relations
+46 8 788 53 62
or
Joséphine Edwall-Björklund
SVP Corporate Communications
+46 8 788 52 34