SCA: Interim Report Q1 2015

Regulatory News:

JANUARY 1–MARCH 31, 2015 (compared with same period a year ago)

• Net sales rose 15% (6% excluding exchange rate effects) to SEK 27,958m (24,234)
• Organic sales growth, which excludes exchange rate effects, acquisitions and divestments, was 6%
• Operating profit, excluding items affecting comparability, rose 9% to SEK 2,872m (2,630)
• The operating margin, excluding items affecting comparability, was 10.3% (10.9)
• Profit before tax, excluding items affecting comparability, rose 11% to SEK 2,602m (2,342)
• Items affecting comparability totaled SEK -122m (-247)
• Earnings per share were SEK 2.43 (2.12)
• Return on capital employed, excluding items affecting comparability, was 11.2% (11.0)
• Cash flow from current operations was SEK 1,246m (667)

(Table included in attached pdf)

CEO’S COMMENTS

We delivered good organic sales growth and a higher operating profit in all business areas during the first quarter of 2015 compared with the same period a year ago. Emerging markets have continued to show high growth, and sales in Europe also developed well. We have invested and will continue to invest in emerging markets, and in March this year we inaugurated our first manufacturing facility in India. During the first quarter of 2015 we introduced 11 innovations and product launches under the Edet, Nosotras, Plenty, Tork and Zewa brands. Our efficiency work continues with undiminished strength, and focus is on improving efficiency along the entire value chain.

Consolidated net sales for the first quarter of 2015 increased by 15% compared with the same period a year ago. Organic sales growth was 6%, with growth in all business areas. In emerging markets, net sales grew 11%. Operating profit, excluding items affecting comparability, gains on forest swaps and currency translation effects, rose 6%. The increase is mainly attributable to a better price/mix, higher volumes and cost savings. Raw material costs increased by SEK 721m, mainly due to the stronger U.S. dollar. The operating margin, excluding items affecting comparability and gains on forest swaps, increased by 0.1 percentage points to 10.3%. Operating cash flow increased by 37%.

Personal Care showed a higher operating profit for the first quarter of 2015 compared with the same period a year ago. Operating profit was favorably affected by a better price/mix, higher volumes and cost savings. Higher raw material costs as a result of higher pulp prices and the stronger U.S. dollar had a negative impact on earnings. Tissue showed a higher operating profit owing to a better price/mix, higher volumes and cost savings. Higher raw material costs related to the stronger U.S. dollar had a negative impact on earnings. For Forest Products, operating profit rose mainly as a result of higher prices (including exchange rate effects) and cost savings.

NB SCA discloses the information provided herein pursuant to the Securities Markets Act. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. Submitted for publication on April 30, 2015, at 07.30 CET. This report has not been reviewed by the company’s auditors.

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