Jan Johansson, President and CEO

Handelsbanken Basic Industry Seminar 2011

10 March 2011

� Net sales SEK 109bn

� 45,000 employees and sales in more than 100 countries

� World’s third largest hygiene products company

SCA GroupA global hygiene products and paper company

222

company

� TEN and Tork leading global brands for incontinence care and Away-From-Home tissue

� Europe’s largest private forest owner

� Europe’s second largest packaging company

10 March 2011

Forest Products Personal Care

15% 22%

SCA GroupSales and EBIT split 2010

29%25%

Sales split

EBIT splitEBIT split

33

Packaging Tissue

36%

27%

15% 22%

30%16%

10 March 2011

Leading market positionsGlobal and regional

Europe

Tissue: 1

Corrugated board: 2

North America

AFH tissue: 3Incontinence care: 3

Nordic region

Incontinence care: 1

Baby diapers: 1

AFH tissue: 1

Consumer tissue: 2

4

Corrugated board: 2

Baby diapers: 3

Incontinence care: 1

Privately owned forests: 1

Australia

Feminine care: 1Incontinence care: 1Tissue: 2

Mexico

Incontinence care: 1

Tissue: 2

Feminine care: 3Baby: 3 Global

Incontinence care: 1

AFH tissue: 3ColombiaIncontinence care: 1

Feminine care: 1Tissue: 1

10 March 2011

Strong global and regional brands

Eastern Europe

North America Europe

5

Asia PacificLatin America

North America Europe

10 March 2011

SCA Group Strategic Priorities

� Cost reductions in all

business areas of

SEK 1bn

� Cash flow from

current operations:

� Efficiency programs in

Packaging and Forest

Products

� Closure/Divestment of 18 packaging units

� Personal Care

� Thin baby diaper

� TENA Ultra thins

� Strong TENA value assortment

� SCA Group 5%*

� Personal Care 2%**

� Emerging markets 10%**

� Tissue 2%**

6

current operations:

SEK 7.4bn

of 18 packaging units

� Supply chain

excellence and asset

utilization programs in

Tissue Europe

� Restructuring program

in Baby diapers in

Europe

� New tissue plant in

Mexico

� New Personal Care

plant in Russia

assortment

� Tissue

� Tork Xpressnap Café

� Tork Performance

� Tempo ice

� Packaging

� Trueflo

� ZeoCool

� Forest Products

� Increased value added

� Tissue 2%**

� Emerging markets 6%**

� Packaging 20%*

� Forest Products 3%**

*Adjusted for exchange rate movements, divestments and closures

* *Adjusted for exchange rate movements

10 March 2011

GrowthHigh 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%

7

Western Europe Eastern Europe Latin America AsiaNorth America

7 10 March 2011

Latin America

South East Asia

Eastern Europe /Russia

� Strong SCA positions

� Good market growth

� Favourable socio-demographics

GrowthSCA’s growth markets

88

� Joint venture

� Good market growth

� Favourable socio-demographics

Middle East

China � Incontinence care products

10 March 2011

Increased pace of innovationStrengthens market positions

9 10 March 2011

Personal careInitiatives 2010

Feminine care

17%

Incontinencecare 56%

� Restructuring program in baby diapers in Europe

� Annual savings of EUR 15m with full effect in Q3 2011

� Investment in local production in Russia

� Acquisition of Copamex baby diapers business� No. 3 in Mexico

� Growth

Net sales 2010:SEK 25bn

23 november 201010

56%

Baby diapers27%

10 March 2011

� Growth� TENA has increased market share

� Incontinence care products in China expanded

� Feminine care products launched in Malaysia and tampons in Sweden and the Netherlands

� Extended range of Libero baby care products

� Emerging market sales increased 10%*

� Innovation� TENA Ultra thins

� Thin baby diaper

� Strong TENA value assortment

* Adjusted for exchange rate movements

TissueInitiatives 2010

Consumertissue 62%

� Implementation of price increases

� Investment in new tissue plant in Mexico

� European brand migration project

� Growth

� Tork has gained market share in Europe and North America

Net sales 2010:SEK 40 bn

23 november 201011

AFH-tissue38%

10 March 2011

and North America

� Emerging market sales increased 6%*

� Innovation

� Tork Xpressnap Café

� Tork Performance

� Tempo Ice

� Tempo Kids

� Tempo toilet tissue

* Adjusted for exchange rate movements

PackagingInitiatives 2010

Protective packaging 3%

Service 4%

Industrial packaging 4%

� Finalized restructuring program

� Annualized savings of SEK 1,070m

� Divestment of the Asian packaging operation

� Annual sales of USD 250m

Net sales 2010:SEK 30bn

23 november 201012

Consumer packaging

20%

Conventional corrugated board

69%

10 March 2011

� Price increases

� Innovation

� Trueflo

� ZeoCool

Forest ProductsInitiatives 2010

Pulp 16%

Timber

8%

LWC-paper 18%

� Efficiency project at Ortviken paper mill

� Annual savings of SEK 45m when fully realized

� Creation of Gällö timber AB

� SCA Energy, new business unit

Net sales 2010:SEK 17bn

23 november 201013

SC-paper 17%

Newsprint14%

Solid-woodproducts

27%

10 March 2011

� SCA Energy, new business unit

� SCA’s deliveries of FSC certified publication paper increased 35%

�Hygiene business� Good volume growth in Incontinence care, Feminine care and AFH tissue

� Good sales growth in Emerging markets

� Personal Care 10%*

� Tissue 6%*

�Packaging and Forest Products� Increased demand for Packaging

Full year 2010 vs. 2009SCA market update

� Increased demand for Packaging

• Corrugated volumes increased 5%

• Corrugated prices increased 6%

� Publication paper volumes increased 3%

� Solid-wood product volumes increased 8%

�Significantly increased raw material prices� Raw material costs increased SEK 5.2bn

�Stronger SEK to other currencies� Negative sales impact of SEK 7.2bn equivalent to 6%

10 March 2011

* Adjusted for exchange rate movements

14

50

70

90

110

130

150EUR/t

450475500525550575600625650675700725750775800825850875900925950975

10001025

USD/Metric tonne

High raw material pricesFeb 2010 – USD 840

Feb 2011 – USD 949Feb 2010 – EUR 89

Feb 2011 – EUR 135USD/metric ton

EUR / ton

OCCNBSK pulp

23 november 201015

0,00

0,25

0,50

0,75

1,00

1,25

1,50

1,75

jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10 jan-11

EUR/Kg

Polyethylene (PE) Bags, backsheet, pack.film Propylene (Contract fd) Superabsorbent

Oil (eur/kg) Polypropylene (PP homo) NW, Fibres

30

-00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11

OCC PIX

400425450

-98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11

NBSK PIX Value

0

50

100

150

200

250

300

350

400

450

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10

USD/short ton

High grade deinking OCC

Recovered paper - USADec 2009 – USD 277

Dec 2010 – USD 310

USD/short ton

Oil based materials

EUR / kg

Jan 2010 – EUR 0.30

Jan 2011 – EUR 0.41

10 March 2011

Full year 2010 results

SEK m Change, Change,

unless otherwise stated 2010 2009 % %**

Net sales 109,142 110,857 -2 5***

EBIT* 9,608 9,648 0 4

EBIT margin* (%) 8.8 8.7EBIT margin* (%) 8.8 8.7

Profit before tax* 8,492 8,004 6 10

Earnings per share (SEK) 7.90 6.78 17

Cash flow from current operations 7,399 11,490 -36

Debt/Equity ratio 0.51 0.60

* Excluding restructuring cost

** Adjusted for exchange rate movements

*** Adjusted for exchange rate movements and divestments

10 March 201116

Net debtAnd debt payment capacity

%SEKm

30

40

50

30 000

40 000

50 000

35% 33%

36%

33%

Net debt decreased SEK 6 bn

40%

1717

0

10

20

0

10 000

20 000

Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

Net debt Debt payment capacity

10 March 2011

Dividend

� Proposed 8% increase of the dividend to SEK 4.00 (3.70) per share

10 March 201118

Outlook 2011

� Good demand for all businesses

� Good growth in Emerging markets for Hygiene businesses

� Continued high raw material costs

� Increasing corrugated prices

10 March 2011

� Increasing corrugated prices

� Price increases on publication papers

19

Q & A

10 March 201120

10 March 201121