Financial reporting regarding SCA’s new reporting segments
Press release
Sundsvall, 27 January 2023
Financial reporting regarding SCA’s new reporting segments
Renewable Energy is a new reporting segment for SCA as of 1 January, 2023. This decision is in line with SCA’s stated ambition to grow and realise business opportunities in renewable energy.
SCA is one of Europe’s leading renewable energy producers. 20% of Sweden’s wind power capacity is installed on SCA land, and with the use of the entire tree, SCA has grown to become one of Europe’s leading producers of sustainable bioenergy. SCA has also stated its intention to continue growing in renewable energy through investments and organic growth. In 2021, SCA decided to invest in a new biorefinery in Gothenburg that will produce biofuel and in 2022, SCA acquired its first own wind farm.
SCA’s new reporting segments
For reference, please see below a description of and financial reporting for SCA’s segments, which have been recalculated for the time periods indicated.
Forest
The Forest segment includes the supply of raw materials for SCA’s forestry activities and the management and felling of 2.7 million hectares of privately owned forest land in northern Sweden and the Baltics. The segment also includes the purchase of timber from other forest owners and the transport of timber to SCA plants.
Activities within Renewable Energy linked to our Forest business area, including wind power leases and sales of unrefined biofuels for energy generation, are reported in the Renewable Energy segment from 1 January 2023.
Wood
The Wood segment includes the sawmill business, with five sawmills in northern Sweden, and wood processing and distribution to the construction sector in Sweden and France.
Sales of refined biofuels made from residual products from sawmills, mainly pellets, are reported in the Renewable Energy segment from 1 January 2023.
Pulp
The Pulp segment includes the production and sale of bleached coniferous sulfate pulp, (NBSK), and chemical thermomechanical pulp, (CTMP), produced at SCA’s pulp plant in Östrand and Ortviken industrial site. The plant is also a net producer of green energy and biochemicals such as tall oil and turpentine.
Sales of tall oil, a product from pulp production, are reported in the Renewable Energy segment from 1 January 2023.
Containerboard
The Containerboard segment manufactures and sells packaging paper (kraftliner), with production taking place at our integrated paper mills in Obbola and Munksund.
Sales of tall oil, a product from kraft pulp production, are reported in the Renewable Energy segment from 1 January 2023.
Renewable Energy
The Renewable Energy segment includes the production and sale of refined and unrefined biomass and biofuel. The segment also includes activities in, and income related to, SCA’s wind power activities and sales of green products for energy production from SCA’s industries.
For further information on this release, please contact:
Anders Edholm, SVP Sustainability and Communications, +46 (0) 60 19 32 12
Josefine Bonnevier, Head of Investor Relations, +46 (0)60 19 33 90
