Deutsche Bank Conference Fredrik Rystedt, Executive Vice President and CFO

SCA – a Leading Global Hygiene and Forest Products Company

June 16, 2016

Deutsche Bank Conference Paris

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SCA in Brief

115

13

SEK billion in net sales 2015

SEK billion in operating profit* 2015

Presence in approximately

100

countries

Number of employees

44,000

*Excluding items affecting comparability June 16, 2016

Deutsche Bank Conference Paris

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Sales by Business Area 2015 Net Sales

Forest Products

15% Tissue

30%

55%

Personal Care

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Global Market Positions

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Incontinence Products:

1

AfH Tissue:

1

Consumer Tissue:

2

Baby Diapers:

4

Feminine Care:

5

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Favorable Market Trends Increasing disposable income

An aging population

Global population growth

Increased insight that good hygiene improves health and well-being June 16, 2016

Deutsche Bank Conference Paris

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Usage of Hygiene Products High potential in markets with low penetration

North America

Western Europe

Eastern Europe

Latin America

Asia

Data is based on market data and SCA’s estimates. June 16, 2016

Deutsche Bank Conference Paris

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Global Hygiene Market Size and Growth Bubble size: Market size  CAGR* 2015 - 2020

Western Europe € 18bn  ~1%

North America € 27bn  ~2%

LATAM € 10bn  ~6%

Eastern Europe € 3bn  ~3%

Russia € 2 bn CAGR ~9%

Asia € 30bn  ~7%

Africa € 7bn  ~7%

Australia € 1bn  ~2%

* Expected CAGR (Compound Annual Growth Rate) Data is based on market data and SCA’s estimates. June 16, 2016

Global Market Size 2015: EUR 99bn Deutsche Bank Conference Paris

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Global Hygiene Market 2015 Higher market growth in Emerging Markets

 

Market size 2015: EUR 47bn Market growth CAGR* 2015-2020: ~5-7%

 

Market size 2015: EUR 52bn Market growth CAGR* 2015-2020: ~1-2%

* Expected CAGR (Compound Annual Growth Rate) Data is based on market data and SCA’s estimates June 16, 2016

Deutsche Bank Conference Paris

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SCA Performance

* Excluding items affecting comparability June 16, 2016

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Dividend and Total Shareholder Return

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SCA Creates Value SCA Creates Value Return above Cost of Capital

8

Enhancing Value Creation Invest for future growth

Increase return

Grow where return is high

Innovation

Innovation

Innovation

Investments in Emerging Markets and market activities

Efficiency improvements

Improve portfolio mix

Cure or kill

Continue to invest in market activities

Build stronger brands M&A

* Excluding items affecting comparability June 16, 2016

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Financial Group Targets Return on Capital Employed Group: 13% Business area:  Personal Care: 30%  Tissue: 15%  Forest Products: To be in top quartile of the industry

June 16, 2016

Organic Sales Growth Annual organic sales growth:  Personal Care:

5–7%

 Tissue:

3–4%

 Forest Products: to grow in line with the market

Deutsche Bank Conference Paris

Capital Structure & Dividend  Effective capital structure  Maintain a solid investment grade rating

 SCA aims to provide longterm stable and rising dividends to its shareholders

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Organic Sales Growth Outcome vs. Targets

June 16, 2016

Deutsche Bank Conference Paris

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Return on Capital Employed Outcome* vs Targets

* Excluding items affecting comparability June 16, 2016

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Strategic Priorities Profitable Growth

Innovation

Efficiency

Increasing efficiency in the entire value chain June 16, 2016

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Profitable Growth Maximize the core by investing in winning markets

Top 20

Up-andcoming

Develop, Cure or Kill

Export

Profitable market share growth

Invest and grow for the long term

Develop stars, turnaround or exit poor performers

Profitability and low risk

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Profitable Growth Expanding the core

Scale up Soaps & Wipes To ”New Core” June 16, 2016

Grow Solutions & Services

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Explore New Categories

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Profitable Growth Win in Digital

June 16, 2016

Digital Capabilities

Digital Channels

Digital Products

Global digital operating model and capabilities

Excellence in

Tork EasyCube

e-commerce &

TENA Identifi

e-marketing Deutsche Bank Conference Paris

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Innovation Around 30 innovations/product launches in 2015

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Efficiency

Supply Chain Efficiencies with Value Stream Mindset

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Go to Market Excellence

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Best Practice Sharing

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Other Key Activities  Support the success of Vinda expansion in Asia  Secure integration of Wausau Paper  Investing in Östrand pulp mill expansion  Creating two divisions; Hygiene and Forest Products

June 16, 2016

Deutsche Bank Conference Paris

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Group Q1 2016 vs. Q1 2015 Sales

* **

Organic Sales Growth

Operating Profit*

SEK 28,177m +1%

3%

SEK 3,247m +13%**

Operating Margin*

EPS

Operating Cash Flow

11.5% +120bp

SEK 2.74 13%

SEK 2,735m +40%

Excluding items affecting comparability Excluding items affecting comparability, currency translation effects, acquisitions and divestments

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Q&A

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