This is SCA SCA – a leading global hygiene and forest products company The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2014 amounted to SEK 104bn (EUR 11.4bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com. SCA’s strategic priorities are Growth, Innovation and Efficiency Sustainability is an integral part of the company’s business model and its work is based on economic, environmental and social value generation – where all parts are equally important in the endeavor to create a successful company. business Areas Personal Care 30% of SCA’s 2014 net sales Tissue 54% of SCA’s 2014 net sales Forest Products 16% of SCA’s 2014 net sales Personal Care SCA is a global leader in personal care and has a portfolio of incontinence products, baby diapers and feminine care products. Within these product segments, SCA also offers such products as wet wipes, soap, baby oil, lotion and cotton pads. The products are sold under SCA’s global, regional and local brands, such as Libero, Libresse, Nosotras, Saba and TENA, as well as under retailers’ brands. Distribution channels for the products are the retail trade, pharmacies and care institutions. The global leading brand for incontinence products, TENA, is the single largest brand in the Personal Care business area. Incontinence products SCA offers a broad range of incontinence products under the TENA brand and is the clear global market leader. The global brand TENA has annual sales in excess of SEK 10bn. SCA’s offering, which includes both products and services, improves the quality of life for consumers while also reducing costs for institutional customers, such as nursing homes. Baby diapers SCA offers both open baby diapers and pant diapers, as well as baby-care products, and is the world’s fourth largest player in the segment and the second largest in Europe. Feminine care In feminine care, SCA offers a broad product portfolio that includes pads, panty liners, tampons and intimate soaps. SCA is the world’s fifth largest player in the area and the third largest in Europe. SCA is the market leader in Latin America. Libresse Roll.Press.Go™ A hygienic solution which addresses the problem of disposing of used pads. Now women can simply roll up a used pad, place it in the wrapper and press the self-sealing edges to close. This offers a hygienic and discreet way to dispose of used feminine care products. The product is also sold under the SCA brands Bodyform, Nana, Nuvenia, Saba, Nosotras and Libra. Tissue SCA is a leading global tissue company and manufactures and sells consumer tissue and Away-from-Home (AfH) tissue. The consumer tissue product portfolio comprises toilet paper, kitchen rolls, facial tissues, handkerchiefs and napkins. In the consumer tissue segment, products are sold to retailers under SCA’s own brands, such as Lotus, Tempo and Vinda, as well as under retailers’ brands. In the AfH tissue segment, SCA develops and markets complete hygiene solutions, including tissue, soap, dispensers, service and maintenance to hospitals, large workplaces, industries, restaurants and hotels, under the globally leading brand Tork. Consumer tissue SCA is the world’s second largest supplier of consumer tissue, which includes toilet paper, kitchen rolls, facial tissues, handkerchiefs and napkins. AfH tissue SCA is the world’s largest supplier of AfH tissue with the global Tork brand. The AfH segment comprises institutions and companies, including hospitals, healthcare institutions, large workplaces, industries, restaurants and hotels, for which SCA develops and sells complete hygiene solutions comprising tissue, soap, dispensers, service and maintenance. The products are distributed by wholesalers and service companies. Tork Xpressnap® Image line napkin dispensers with Tork Xpressnap® Extra Soft Leaf Design napkins This new range of napkin dispensers focuses on design and is targeted at image-conscious customers. At the same time, it reduces napkin usage by at least 25% compared to traditional dispensers. The dispenser, which contains high-quality napkins, is made from aluminum and walnut and is available in two sizes. Winner of the Red Dot Product Design Award in 2014. Forest Products SCA is Europe’s largest private forest owner, encompassing some 2.6 million hectares of forest land and produces forest products with a strong environmental profile. Operations are based on in-depth customer insight, high innovative ability and a sustainability perspective at all levels. SCA sells paper for packaging and print, pulp, solid-wood products and renewable energy. Publication papers SCA’s sales of publication papers mainly take place within the Western European market. The single largest markets are the Nordic region, Germany and the UK. Kraftliner (packaging papers) SCA is Europe’s third largest supplier of packaging paper based on fresh wood fiber – kraftliner. Pulp In the pulp market, SCA has positioned itself in the high-quality segment based on its excellent access to, and expertise in, the unique Nordic long-fiber forest raw material. Solid-wood products SCA is a qualified supplier of purpose-designed wood products to industries for further processing into such items as panels, floors, windows, doors and furniture. SCA’s saw mill operations is the second largest in Europe. Renewable energy SCA is one of Europe’s largest suppliers of forestbased biofuels, such as tree branches, crowns, stumps, bark, sawdust, peat and processed products which includes pellets and briquettes. Activities continue at SCA Energy, which is tasked with managing and developing SCA’s renewable energy business. Planning over hundreds of years In 2014, a new long-term harvesting calculation was performed that shows that SCA will be able to maintain its current harvesting level for the next 15-20 years, after which it will be able to increase harvesting. At the same time, the amount of forest excluded from forestry activities to provide sensitive animal and plant species room to thrive is growing. This is our relationship to the forest – it is a resource that generates value and prosperity and it offers an environment in which all living organisms can thrive – plants, animals and us humans. Sustainability Creating value for people and nature Sustainability is an integral part of SCA’s business model and is of critical importance to our success and profitability. Sustainability work contributes to business value in a number of ways. Ambitious sustainability targets SCA has established ambitious People and Nature targets in the areas of Employee Health & Safety, People and Nature Innovations, Hygiene Solutions, Code of Conduct, Climate and Energy, Fiber sourcing, Biodiversity and Water. Creating value for people We want to share our hygiene knowledge and ensure access to affordable, sustainable hygiene solutions. Our activities include teach- ing young women about menstruation and puberty, children about the importance of good hand hygiene and nurses about incontinence. Creating value for nature Our forests represent a unique resource. They provide our industries with high-quality wood raw material and enable energy production for wind and biofuels. Our growing forests absorb 2.6 million tons of carbon dioxide annually which exceeds the emissions from SCA’s own production. SCA was named one of the world’s most ethical companies by the Ethisphere Institute in the US. SCA has been listed on the FTSE4Good global sustainability index since 2001. SCA is included in the Climate Disclosure Leadership Index. CDP holds the world’s largest database of primary corporate climate change information. SCA is a UN Global Compact signatory as of 2008. SCA is recognized as a global leader in sustainable ­d evelopment, and has received numerous industry awards for sustainability. Innovation Innovation drives growth and profitability and is one of the company’s three strategic priorities. Innovation is crucial when it comes to building our brands and meeting customer and consumer needs. SCA’s innovation process is deeply embedded in the Group’s strategy and business model. Innovation activities are based on market trends, customer and consumer insight, new technology and new business models. SCA also takes sustainability aspects and product safety into consideration throughout the process. SCA’s presence in both mature and emerging markets provides a good understanding of trends and customer and consumer needs. Innovation work is supported by SCA’s innovation teams across the globe and a well-developed innovation culture. SCA’s strategy is to increase the pace of innovation, capitalize on global economies of scale and ensure that all segments have a competitive and balanced portfolio of innovations. Particular focus is given to exploring the possibility of broadening the product portfolio, as well as expanding the range of services. SCA encourages open innovation – meaning cooperation with external parties. Open innovation is an important part of the innovation process and offers a number of benefits, such as providing input from adjacent industries, speeding up development processes and cutting costs. SCA depends on motivated, competent and highperforming employees who have a personal sense of drive and are encouraged to be innovative. To further capitalize on its employees’ creativity and good ideas, SCA has created an internal innovation platform that can be used during all stages of a project to ask for help with solutions and find people with the right expertise. In 2014, SCA introduced about 30 innovations and product launches and applied for 48 patents. New TENA Slip with ConfioAir™ TENA Slip has been improved with the addition of ConfioAir™, a breathable material that maintains skin health. TENA Slip is suitable for medium to heavy urine leakage. Tork SmartFresh™ An IT-based service for public restrooms that provides easy access to real-time data showing the number of restroom visits. This allows cleaning schedules to be adapted to actual toilet use. Tork SmartFresh™ gives the restroom area a distinctive design and provides the end user with a new restroom experience. For example, a media screen can be used to display information or advertisements. Tork Smart Fresh™ also offers added freshness thanks to its automatic scent and toilet cleaning function. A strong brand creates long-term value SCA is a leading global hygiene and forest products company with the ambition of establishing a strong corporate brand and strengthening the link to our customer and consumer brands. SCA has undergone a major transformation in recent years, completing a number of acquisitions and divestments around the world. To increase the awareness about SCA and to strengthen the connection to the company’s customer and consumer brands, as well as provide women the opportunity to act in an arena that has normally been reserved for men, are some of the reasons for SCA to participate with a female team, Team SCA in the Volvo Ocean Race 2014–2015. Our participation with Team SCA and the opportunity to follow the crew’s journey in the Volvo Ocean Race have played an important role in SCA’s journey of change to increases awareness of SCA, our products and the approximately 80 brands in SCA’s portfolio, including the global leaders TENA and Tork and strong regional brands such as Lotus, Libresse, Tempo, Libero, Saba and Nosotras. The Volvo Ocean Race serves as a unique global marketing platform to unite and connect target groups, such as customers, consumers, other external target groups and employees, with SCA’s operations and brands worldwide, in order to increase awareness of SCA and strengthen the perception of the Group as a leading global hygiene and forest products company. SCA and WSSCC educated girls and volunteers about menstruation and hygiene in conjunction with the stopover in Cape Town. SCA and the women of Team SCA have already inspired and motivated tens of thousands of people around the world to believe in themselves and to go after their goals and dreams. SCA is dedicated to creating value for people and nature. During the stopovers in Alicante, Spain, and Cape Town, South Africa, seedlings were donated for tree planting projects. During all stops, we invited children from local preschools, schools and orphanages to show and teach them about how good hand hygiene impacts people’s health. This work is linked to our longstanding philosophy of educating people around the world about such issues. We work to raise awareness of the importance of good hygiene, to break taboos regarding incontinence and to support young women in their development, for example, by educating them about what happens to their bodies during puberty and when they have their period. In late 2014, SCA announced its partnership with the Water Supply and Sanitation Collaborative Council (WSSCC), the only UN body devoted solely to the sanitation and hygiene needs of vulnerable and marginalized people. As part of this partnership, SCA and WSSCC educated young girls, women and volunteers about menstruation and hygiene in conjunction with Team SCA’s stopover in Cape Town. Svenska Cellulosa Aktiebolaget SCA (publ) PO Box 200, SE-101 23 Stockholm, Sweden Visiting address: Klarabergsviadukten 63 Tel +46 8 788 51 00, fax +46 8 788 53 80 Corp. Reg. No.: 556012-6293 www.sca.com