SCA's presentation at the Cheuvreux Pan Europe Paris Conference in France, March 16, 2010.

1. Cheuvreux Pan-Europe Paris Conference
16 March 2010
Lennart Persson, CFO
16 March 2010

2. 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
2 16 March 2010

3. SCA Group
Sales and EBIT split 2009
EBIT split EBIT split
Forest Products Sales split Personal Care
25% 32%
15% 23%
25%
37%
4% 39%
Packaging Tissue
Sales 2009: SEK 111bn
3 16 March 2010

4. Strong global and regional positions
Nordic region
Baby diapers: 1
North America Europe
AFH tissue: 3 Tissue: 1
Incontinence care: 3 Corrugated board: 2
Baby diapers: 3
Incontinence care: 1
Mexico Privately owned forests: 1
Hygiene products: 2 Global
Incontinence care: 1
Colombia AFH tissue: 3
Incontinence care: 1 Australia
Feminine care: 1
Feminine care: 1
Tissue: 1
Incontinence care: 1
Tissue: 2
4 16 March 2010

5. SCA Group Strategic direction
3.
Initiatives
1. 2.
Cost reductions in all Rationalized supply Tissue
business areas of chain in Packaging Tork elevation
close to SEK 1bn and Tissue Tempo complete care
Plenty active wipe
Green field tissue
Cash flow from plants in Russia and Personal Care
Mexico Stretch diaper upgrades
current operations:
Tampons
increased SEK 7.7bn Efficiency programs in Baby care products
Packaging & Forest Packaging
Products Mira System
Tissue packaging solutions
Forest Products
New paper qualities
Increased value added
5 16 March 2010

6. SCA Group Strategic Direction
1. 2. 3.
4.
6 16 March 2010

7. Growth
High potential in markets with low penetration
Usage of hygiene products
Units/capita/year Units/child/year Units/woman/year Kg/capita/year
Penetration
in mature
markets
around 35%
North America Western Europe Eastern Europe Latin America Asia
7 16 March 2010

8. Our growth markets
Strong SCA positions
Good market growth
Favourable socio-demographics
Joint venture
Good market growth
Favourable socio-demographics
Market tests of Incontinence care
products and Baby diapers
8 16 March 2010

9. Growth
High growth in Emerging markets
2009
Emerging markets hygiene sales growth:
Personal Care: +13%
Tissue: +6%
% of Hygiene sales in 2009
Emerging markets
25%
Mature markets
9 16 March 2010

10. SCA Group Strategic Direction
Personal Care
Short and mid term
Maintain Tena leadership in premium segment and increase
growth in economy segment
Strengthen leading positions in Europe
Further restore Baby diapers private label profitability
Drive innovation
Market test in China
Grow in prioritized Emerging markets
Increase value added and branded
10 16 March 2010

11. SCA Group Strategic Direction
Tissue
Short and mid term
Strengthen leading positions in Europe
Further restore Consumer Tissue profitability
Drive innovation
Grow in prioritized Emerging markets
Increase value added and branded
11 16 March 2010

12. SCA Group Strategic Direction
Packaging
Short and mid term
Deliver restructuring program
Effectively address cost and efficiency improvement needs
Divest non-core assets
Grow value added
12 16 March 2010

13. SCA Group Strategic Direction
Forest Products
Short and mid term
Continued focus on productivity and efficiency
Explore opportunities to expand pulp capacity
Grow value added and branded
Commercialize renewable energy
Explore alternative areas of fiber use
13 16 March 2010

14. Increasing raw material prices
February 2009 – USD 585
NBSK pulp February 2010 – USD 850
OCC February 2009 – EUR 37
February 2010 – EUR 93
950
USD/metric ton
USD/Metric tonne
EUR / ton
925 EUR/t
120
900
875
110
850
825
800 100
775
750 90
725
700 80
675
650
70
625
600
575 60
550
525 50
500
475 40
450
425
30
400
-98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10
-07 -08 -09 -10
OCC PIX
NBSK PIX Value
Recovered paper - USA February 2009 – USD 166
USD/short ton
February 2010 – USD 277
450 USD/short ton
400
350
300
250
200
150
100
50
0
-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09
High grade deinking OCC
14 16 March 2010

15. Outlook 2010
Hygiene businesses
Stable demand
Good growth in emerging markets
Packaging
Demand improvement, but weak start
Increasing prices
Forest Products
Low demand and decreasing prices for publication paper
Improvement for pulp and solid-wood products
15 16 March 2010

16. Q&A
16 16 March 2010

17. 17 16 March 2010