SCA Interim Report 1 January-30 June 2002

Interim Report 1 January-30 June 2002 02:2 02:1 0206 0106 Earnings per share, SEK¹ 6.05 5.89 11.94 11.72 Cash flow from current operations 9.36 6.83 16.19 20.69 per share, SEK¹ Net sales, SEK M 22,355 21,015 43,370 40,078 Earnings after financial items, SEK 2,026 1,967 3,993 3,980 M Net earnings, SEK M 1,404 1,365 2,769 2,730 ¹ Adjusted historically to reflect new issue of 1.8 million shares in 2001 for stock option program (see page 9). Compared with first half of 2001 · Earnings per share rose 2%. · Operating profit for Hygiene Products' operations increased 33%, while the corresponding figure for Packaging and Forest Products declined 16% and 32%, respectively. Compared with first quarter of 2002 · Earnings per share rose 3%. · Operating profit for Hygiene Products improved 11%, while the operating profit for Packaging and Forest Products was down 5% and 8%, respectively. · Continued recovery in North America. NET SALES AND EARNINGS Earnings per share increased 2% to SEK 11.94 (11.72), corresponding to net earnings of SEK 2,769 M (2,730). CartoInvest, the Italian tissue company acquired at the end of March, was included in the Group's second quarter net sales and earnings. Consolidated net sales amounted to SEK 43,370 M (40,078), an increase of 8% compared with the year-earlier period. Of this increase, 8 percentage points are attributable to acquired companies, while higher volumes accounted for 2 percentage points. Lower prices reduced net sales by 4%. Currency movements increased consolidated net sales by 2%. Group operating profit amounted to SEK 4,484 M (4,650), and was thus 4% lower than operating profit a year earlier. Operating profit for Hygiene Products amounted to SEK 2,711 M (2,033), an increase of 33%. Operating profit for Packaging declined 16% to SEK 1,440 M (1,709), while the operating profit of Forest Products amounted to SEK 1,020 M (1,490), a decline of 32%. Currency movements had a positive impact of 6% on operating profit. Financial items amounted to an expense of SEK 491 M (expense: 670). Despite higher net debt as a result of corporate acquisitions, a significantly lower interest rate provided an improvement of SEK 179 M in financial items. Group earnings after financial items amounted to SEK 3,993 M (3,980), and thus remained on a par with the year-earlier period. Positive effects of currency movements, which reduced the effects of lower prices in Swedish kronor, primarily attributable to Forest Products, increased Group profit by 7%. The gross margin was 17.4% (18.5), while operating margin after goodwill amortization amounted to 10.3% (11.6). The decline was due to lower operating profit for Packaging and Forest Products. Return on shareholders' equity was 12% (14), and return on capital employed was 13% (15). Comparison with the first quarter of 2002 Consolidated earnings per share increased 3% compared with the preceding quarter and amounted to SEK 6.05 (5.89). The operating profit of Hygiene Products increased 11%, while operating profit for Packaging and Forest Products declined 5% and 8%, respectively. Currency movements had a negative impact of 2% on Group earnings. In hygiene operations, operating profit attributable to consumer products rose as a result of acquisitions and improved operating profit for baby diapers and feminine hygiene products. AFH and incontinence products reported a 10% increase in operating profit, primarily as a result of higher volumes. The operating profit of Packaging operations declined mainly as a result of higher raw materials costs, while the decline in operating profit for Forest Products was due to lower prices. The improvement in financial items, which amounted to an expense of SEK 238 (expense: 253), was due to the fact that dividends received, SEK 64 M, more than offset higher interest expenses. EARNINGS ANALYSIS SEK M 02:2 02:1 0206 0106 Hygiene Products 1,428 1,283 2,711 2,033 Packaging 702 738 1,440 1,709 Forest Products 488 532 1,020 1,490 Other -63 -59 -122 -111 Operating profit, before goodwill 2,555 2,494 5,049 5,121 amortization Goodwill amortization -291 -274 -565 -471 Operating profit 2,264 2,220 4,484 4,650 Financial items -238 -253 -491 -670 Earnings after financial items 2,026 1,967 3,993 3,980 Tax -608 -590 -1,198 -1,216 Minority interest -14 -12 -26 -34 Net earnings 1,404 1,365 2,769 2,730 Earnings per share, SEK 6.05 5.89 11.94 11.72 Press conference SCA's interim report for the period 1 January-30 June 2002 will be published on July 30, 2002. The press release will be sent out around 11.00 CET. A press conference will be held in Stockholm, where Jan Åström, President and CEO, will present the results. Time: 13:00 CET Venue: Salén Konferenser, Aulan, Norrlandsgatan 15, Stockholm Telephone conference The telephone conference will be held on July 30, 2002, at 15:00 CET, where Jan Åström will comment on the results. To participate, please call Genesys Conferencing at the number below at least 5 minutes prior to the conference call. Dial-in number UK +44 (0) 20 8240 8242 quote: SCA Dial-in number US +1 303 713 7929 quote: SCA The interim report and the slide presentation will be available at www.sca.com/Investors. The telephone conference will be broadcasted live over the Internet (listen-only). Requirements: Windows Media Player or Real Player. Later the same day an on-demand version of the telephone conference will be available on our web site. For further information, please contact: Jan Åström, President and CEO, +46 8 788 51 25 Peter Nyquist, Vice President, Communications and Investor Relations, +46 8 788 52 34 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/07/30/20020730BIT00080/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/07/30/20020730BIT00080/wkr0002.pdf The full report

About Us

The core of SCA’s business is the forest, Europe's largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. 2018 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 1617 bn (EUR 1,8 bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. More information at www.sca.com.

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