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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