SCA: Changes in SCA’s Financial Reporting for 2014 Due to New and Amended Reporting Standards

  SCA: Changes in SCA’s Financial Reporting for 2014 Due to New and Amended
  Reporting Standards

Business Wire

STOCKHOLM -- March 10, 2014

Regulatory News:

SCA (Svenska Cellulosa AB) (STO:SCAA) (STO:SCAB)

As described in the year-end report 2013, effective January 1, 2014, SCA
applies the following new and amended reporting standards: IFRS 10
Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12
Disclosure of Interests in Other Entities, IAS 27 Separate Financial
Statements, and IAS 28 Investments in Associates and Joint Ventures.

These standards are applied retrospectively, which entails that the cash
flows, income statements and balance sheets for 2012 and 2013 have been
recalculated to reflect the changes in the new and amended reporting
standards. It is mainly IFRS 10 Consolidated Financial Statements and IFRS 11
Joint Arrangements that have affected the recalculations. The other standards
are not judged to have any material impact on the Group’s or parent company’s
result or financial position.

For SCA, this entails that some joint ventures have been reclassified to
subsidiaries. For the joint ventures that have not been reclassified as
subsidiaries the equity method is applied. A few individual companies have
been classified as joint operations for which proportionate consolidation is
applied.

Please find below recalculated cash flows, income statements and balance
sheets for 2012 and 2013.

NB:

SCA discloses the information provided herein pursuant to the Securities
Markets Act. Submitted for publication on March 10, 2014, at 08.30 CET.

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 and Vinda. As Europe’s largest private
forest owner, SCA places considerable emphasis on sustainable forest
management. The Group has about 44,000 employees. Sales in 2013 amounted to
approximately SEK 93bn (EUR 10.7bn). 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.

OPERATING CASH FLOW ANALYSIS

OPERATING CASH FLOW ANALYSIS
SEK m                                               1312    1212
Operating cash surplus                              14,004  13,068
Change in working capital                           -328    1,119
Current capital expenditures, net                   -3,489  -3,272
Restructuring costs, etc.                           -1,294  -988
Operating cash flow                                 8,893   9,927
                                                            
Financial items                                     -1,061  -1,323
Income taxes paid                                   -1,741  -1,265
Other                                               161     102
Cash flow from current operations                   6,252   7,441
                                                            
Acquisitions                                        -5,488  -14,873
Strategic capital expenditures, fixed assets        -1,906  -1,971
Divestments                                         1,716   17,682
Cash flow before dividend                           574     8,279
Dividend                                            -3,303  -3,089
Cash flow after dividend                            -2,729  5,190
Net cash flow from disposal group                   0       468
Net cash flow                                       -2,729  5,658
                                                            
Net debt at the start of the period                 -33,063 -36,820*
Net cash flow                                       -2,729  5,658
Remeasurement to equity                             2,176   -1,787
Currency effects                                    -117    -114
Effect of reclassification of operating liability** -186    0
Net debt at the end of the period                   -33,919 -33,063
Debt/equity ratio                                   0.5     0.54
Debt payment capacity, %                            38      38

* Including disposal group ** Provision for payroll tax has been reclassified
to net debt under IAS 19.

STATEMENT OF PROFIT OR LOSS

SEK m                                           1312     1212
Net sales                                         92,873    89,229
Cost of goods sold 1)                             -69,585   -67,035
Gross profit                                      23,288    22,194
Sales, general and administration 1)              -13,122   -13,323
Items affecting comparability 2)                  -1,239    -2,614
Share of profits of associates                    215       169
Operating profit                                  9,142     6,426
Financial items                                   -1,061    -1,323
Profit before tax                                 8,081     5,103
Tax                                               -2,220    -364
Net profit for the period continued operations    5,861     4,739
Net profit for the period from disposal group     0         503
Net profit for the period                         5,861     5,242
Earnings attributable to:
Owners of the parent                              5,546     4,956
Non-controlling interests                         315       286
Earnings per share, SEK - owners of the
parent total operations
- before dilution effects                         7.9       7.06
- after dilution effects                          7.9       7.06
Earnings per share, SEK - owners of the
parent continued operations
- before dilution effects                         7.9       6.34
- after dilution effects                          7.9       6.34
Calculation of earnings per share                 1312      1212
Earnings attributable to owners of the parent     5,546     4,956
                                                                    
Average no. of shares before dilution, millions   702.3     702.3
Average no. of shares after dilution, millions    702.3     702.3
1) Of which, depreciation                         -5,005    -4,993
2) Distribution of items affecting comparability
Distribution of restructuring costs, etc. per function
Cost of goods sold                                -288      -300
Sales, general and administration                 -740      -982
Impairment, etc.                                  -211      -1,332
Total items affecting comparability               -1,239    -2,614
Gross margin                                      25.1      24.9
Operating margin                                  9.8       7.2
Financial net margin                              -1.1      -1.5
Profit margin                                     8.7       5.7
Tax                                               -2.4      -0.4
Net margin *                                      6.3       5.3
* Excluding Net profit for the period from disposal group
Excluding items affecting comparability:          1312      1212
Gross margin                                      25.1      24.9
Operating margin                                  11.2      10.1
Financial net margin                              -1.1      -1.5
Profit margin                                     10.1      8.6
Tax                                               -2.8      -0.8
Net margin *                                      7.3       7.8
* Excluding Net profit for the period from disposal group

CONSOLIDATED BALANCE SHEET

SEK m                                  December 31, 2013  December 31, 2012
Assets
Goodwill                                13,785              12,349
Other intangible assets                 8,136               5,580
Tangible assets                         81,544              75,274
Shares and participations               1,072               2,317
Non-current financial assets            3,190               3,577
Other non-current receivables           1,819               996
Total non-current assets                109,546             100,093
Operating receivables and               31,077              29,736
inventories
Current financial assets                536                 401
Non-current assets held for sale        32                  1,937
Cash and cash equivalents               3,785               2,118
Total current assets                    35,430              34,192
Total assets                            144,976             134,285
Equity
Owners of the parent                    63,271              59,706
Non-controlling interests               4,540               1,993
Total equity                            67,811              61,699
Liabilities
Provisions for pensions                 2,548               4,820
Other provisions                        10,531              9,207
Non-current financial liabilities       28,703              24,077
Other non-current liabilities           593                 1,022
Total non-current liabilities           42,375              39,126
Current financial liabilities1)         10,009              10,105
Other current liabilities               24,781              23,355
Total current liabilities               34,790              33,460
Total liabilities                       77,165              72,586
Total equity and liabilities            144,976             134,285
1)Committed credit lines amount to SEK 18 186m of which unutilized SEK 18
186m.
Debt/equity ratio                       0.50                0.54
Visible equity/assets ratio             44%                 44%
Return on capital employed              10%                 8%
Return on equity                        9%                  9%
Excluding items affecting comparability:
Return on capital employed              11%                 10%
Return on equity                        11%                 12%
Equity per share, SEK                   96                  88
Capital employed                        101,730             94,762
- of which working capital              7,740               7,125
Provisions for restructuring costs are included in the balance sheet as
follows:
- Other provisions*                     416                 616
- Operating liabilities                 786                 630
*) of which, provision for tax risks    292                 482
Net debt                                33,919              33,063
Total Equity                            67,811              61,699

NET SALES

SEK m        1312    1212    2013:04:00  2013:03:00  2013:02:00  2013:01:00
Personal      29,736   29,084   7,578        7,382        7,475        7,301
Care
Tissue        48,096   43,476   12,357       11,910       11,930       11,899
Forest        15,525   18,283   3,646        3,843        3,788        4,248
Products
Other         95       1,240    -4           -2           26           75
Intra-group   -579     -2,854   -157         -131         -100         -191
deliveries
Total net     92,873   89,229   23,420       23,002       23,119       23,332
sales

OPERATING PROFIT

SEK m          1312    1212    2013:04:00  2013:03:00  2013:02:00  2013:01:00
Personal Care   3,519    3,437    859          880          902          878
Tissue          5,724    4,778    1,601        1,524        1,333        1,266
Forest          1,843    1,363    916          420          250          257
Products3)
Other           -705     -538     -213         -199         -207         -86
Total
operating       10,381   9,040    3,163        2,625        2,278        2,315
profit 1)
Financial       -1,061   -1,323   -272         -283         -227         -279
items
Profit before   9,320    7,717    2,891        2,342        2,051        2,036
tax 1)
Tax             -2,639   -737     -933         -656         -524         -526
Net profit
for the
period from     0        503      0            0            0            0
disposal
group
Net profit
for the         6,681    7,483    1,958        1,686        1,527        1,510
period 2)
                                                                                    
1) Excluding
items
affecting       -1,239   -2,614   -215         -233         -373         -418
comparability
before tax
amounting to:
2) Excluding
items
affecting       -820     -2,241   -45          -172         -297         -306
comparability
after tax
amounting to:
3) Including
effects of
forest swaps,   583      91       455          7            0            121
Forest
Porducts
before tax

OPERATING MARGIN

%            1312  1212  2013:04:00  2013:03:00  2013:02:00  2013:01:00
Personal      11.8   11.8   11.3         11.9         12.1         12
Care
Tissue        11.9   11     13           12.8         11.2         10.6
Forest        11.9   7.5    25.1         10.9         6.6          6
Products

CONSOLIDATED INCOME STATEMENT

SEK m                      2013:04:00  2013:03:00  2013:02:00  2013:01:00
Net sales                   23,420       23,002       23,119       23,332
Cost of goods sold          -17,512      -17,028      -17,339      -17,706
Gross profit                5,908        5,974        5,780        5,626
Sales, general and          -2,831       -3,424       -3,540       -3,327
administration
Items affecting             -215         -233         -373         -418
comparability
Share of profits of         86           75           38           16
associates
Operating profit            2,948        2,392        1,905        1,897
Financial items             -272         -283         -227         -279
Profit before tax           2,676        2,109        1,678        1,618
Taxes                       -763         -595         -448         -414
Net profit for the period   0            0            0            0
from disposal group
Net profit for the period   1,913        1,514        1,230        1,204

This information was brought to you by Cision http://news.cision.com

Contact:

SCA
Johan Karlsson
Vice President Investor Relations
+46 8788 51 30
or
Boo Ehlin
Vice President Media Relations
+46 8788 51 36
 
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