SCA Press Backgrounder This is SCA Updated September, 2014. SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. We were founded in Sweden in 1929 through a merger of 10 Swedish forest operations. However, our history dates back several hundred years before that, as the oldest of those operations was established in 1673. SCA is headquartered in Stockholm, Sweden. Our services and solutions are used by millions of people throughout their lives: from early childhood, through their teens and adulthood and into old age. We bring innovative, sustainable and value-added products to the world. SCA has 44,000 employees. Sales in 2013 amounted to SEK 93bn (EUR 10.7bn). The Group has sales in about 100 countries under our leading global brands TENA (incontinence products) and Tork (away from home professional hygiene products), as well as local and regional brands such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo and Vinda. Our hygiene products, such as baby diapers, toilet paper, napkins, incontinence products, kitchen rolls, feminine-care products, facial tissues and handkerchiefs, are used by millions of people and account for about 80 percent of the Group’s net sales. The forest products area offers publication papers, kraftliner (packaging papers), pulp, solid-wood products and renewable energy. Health and hygiene are essential for every individual’s well-being and sense of dignity. SCA’s solutions improve hygiene standards throughout the world. We share our expertise and educate on the importance of good hygiene practices. We engage in activities across the globe to teach young women about menstruation and puberty and educate children about the importance of proper hand hygiene. SCA has trained 10,000 nurses from 1,200 hospitals throughout China on issues related to incontinence and elder care. Rising global population, increased life expectancy, a greater number of elderly citizens and a higher standard of living all contribute to a growing demand for hygiene products, creating opportunities for SCA. Sustainability is an integral part of our business model and is fundamental in everything we do. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. SCA has 2.6 million hectares of forestland – almost the size of Belgium. Our forest is a unique resource, contributing positively to the environment and supporting our sustainability agenda. It is a source of valuable and renewable raw materials, and also provides living space for a multitude of flora and fauna. The forest absorbs carbon dioxide, regulates water flows and generates value for society in the form of such pursuits as hunting, fishing and recreation. It enables energy through wind power and biofuels. Responsible forestry and reforestation can be one of the solutions to climate change. 1 SCA has a net growth in our forest, and we replace every tree harvested in our own forests with three new ones. Our growing forests absorb 2.6 million tons of carbon dioxide annually, which widely exceeds the carbon emissions from our own production. Cutting-edge Innovations SCA’s three strategic priorities are innovation, efficiency and growth. Our innovation process is deeply embedded in our business model and is critical for our success. At SCA we gain inspiration from people and nature and in a close customer and consumer dialogue. Inspiration leads to innovation. SCA has been delivering successful innovations for more than 80 years, from forest management to hygiene solutions. Innovation is the key to increasing benefits for customers and consumers, strengthening loyalty and customer satisfaction. One innovation launched in 2013 is TENA Identifi, a system for nursing homes to easily analyze personal voiding habits of residents, significantly enabling improved individual incontinence care. The benefit is improved quality of life and care for residents and more efficient and optimized care routines for the nursing homes. Another innovation is Tork touch-free products. To meet the demand for intelligent solutions, driven by an increased awareness of hygiene and the threat of pandemics, SCA launched the Tork H1 Sensor in 2012, a touch-free electronic paper towel dispenser. In 2013 we launched a sensor controlled touch-free dispenser for foam soap, the Tork Intuition Sensor S4. Foam soap and paper towels are dispensed without the user having to touch anything, vastly improving hygiene and reducing the spread of infection. Our dedication to being constantly innovative provides sustainable value as well as industry leadership. Open innovation, i.e. collaborations with external partners, is a resource-efficient approach which represents a growing part of our innovation process. Sustainability for a brighter future Sustainability is at the heart of everything we do and is an integral part of our business model. Our business is to create value for people and nature – value that benefits not only customers and consumers, employees and stakeholders, but the environment and communities we serve. SCA works towards ambitious sustainability targets in areas such as carbon emissions, wind power, biofuels, sourcing, biodiversity, hygiene solutions, sustainable innovations and health and safety. New resource-efficient solutions reduce the environmental impact and also lower costs. One example is the replacement of an oil-powered lime kiln in our Munksund facility with a lime kiln powered by biofuel. This replacement reduced the annual carbon dioxide emissions of the facility by 75 percent and decreased costs by SEK 50 million. We strive to be a responsible and respected corporate citizen in the communities where we operate. In 2013 we conducted 370 community relations initiatives, comprising largescale programs as well as small local projects. We work to remove taboos around incontinence and support the biannual Global Forum on Incontinence, a platform for debate and education. We donate hygiene products and money when natural disasters strike. For example, when the Haiyan typhoon hit the Philippines in 2013, we contributed 2 with a financial donation as well as hygiene products. We participate in tree-planting initiatives in Europe, North America, Latin America and Asia. SCA has been ranked one of the world’s most ethical companies by the Ethisphere Institute for seven consecutive years. We are consistently included in the Dow Jones Sustainability Index and in the Climate Disclosure Leadership Index. SCA on a transformation journey - Key events 2012 • • • • • • Divestment of the packaging operations, excluding the kraftliner mills Acquisition of Georgia-Pacific’s European tissue operations Acquisition of Asian hygiene company Everbeauty Establishment of a joint venture in Australia and New Zealand Launch of a new hygiene organization Divestment of the 50 percent holding in Aylesford Newsprint 2013 • • • • • Acquisition of majority ownership in Chinese tissue company Vinda Investment in India, launch of Libero and Tempo Divestment of the Laakirchen publication paper mill Inauguration of the first wind park in a joint venture between SCA and Statkraft Inclusion in key sustainability indexes 2014, Q1-Q2 • • • Transfer of Chinese hygiene business to Vinda SCA floats its joint venture in Australia First Swedish listed company to issue green bond journey – Team SCA in the Volvo Ocean Race In recent years, SCA has undergone a journey of change with a number of acquisitions and divestments around the world. SCA’s participation in the Volvo Ocean Race plays an important role in this journey of change and increasing the awareness and understanding of SCA. In 2012, SCA announced its participation with an all-female team, Team SCA, in the Volvo Ocean Race 2014-2015. SCA is supporting an all-female team because globally about 80 percent of the retail products SCA makes are purchased by women. This gives SCA a natural interest in the role that women play in the field of hygiene for millions of families around the world. Furthermore SCA supports female empowerment and the freedom of women to participate fully in society – socially, educationally and professionally – across the world by giving them access to and education about hygiene products and solutions. Through our Volvo Ocean Race entry, SCA is making it possible for women to participate in an arena normally reserved for men. The Volvo Ocean Race is a unique global platform for making SCA better known as the company behind our strong customer and consumer brands. This global journey and nine-month race, which starts in Alicante, Spain, in October 2014 and finishes in Gothenburg, Sweden, in June 2015, has stopovers around the world and will have millions of followers. For SCA, the race is an opportunity to build a high-performance 3 team, both among the women of Team SCA and among the company’s 44,000 employees, inspiring cooperation and focus in achieving common goals with a clear strategy. SCA Care of life – our brand promise The core of SCA is summarized in the concept “SCA Care of life”. Care of life is what connects us with all our stakeholders and it represents our uniqueness in what we stand for. It represents our mission to provide essentials that make life easier every day, everywhere. It represents our goal to deliver more value added products to the world. And it represents how we care for life on our planet. “SCA Care of life. Because our products make life easier for you and for millions of people around the world. Because our resources and the way we work are natural parts of the global lifecycle. And because we care”. SCA Facts and figures • • • • • • • • • • • • • Notes • • SCA is a leading global hygiene and forest products company Founded in 1929 with roots that date back to 1673 SCA is Europe’s largest private forest owner with 2.6 million hectares of forest land SCA has about 44,000 employees The headquarters are located in Stockholm, Sweden Sales in about 100 countries under global, regional and local brands In 2013 sales amounted to SEK 93bn (EUR 10.7bn) The five largest markets are: Germany 12%, France 11%, United Kingdom 10%, US 9%, Sweden 6% of Group sales SCA is the global market leader of incontinence products through its leading global brand TENA SCA is the global market leader of Away from Home professional hygiene products through its global brand Tork SCA is the world’s fourth largest player in feminine care products SCA is the world’s fourth largest player in baby diapers Jan Johansson is SCA's President and CEO SCA is the majority shareholder in Vinda International Holdings Limited (“Vinda”). In October, 2014 SCA transferred its hygiene business in China (Mainland China, Hong Kong and Macau) to Vinda. The companies have signed an agreement regarding the exclusive license to market and sell the SCA brands; TENA, (incontinence products) Tork (Away from Home tissue), Tempo (consumer tissue), Libero (baby diapers), and Libresse (feminine care) in China (Mainland China,Hong Kong and Macau). With this agreement, Vinda will hold the rights to these product brands in these Chinese markets. Vinda also acquired SCA’s Dr P and Sealer brands in China. During Q2, 2014 SCA floated its joint venture, Asaleo Care, in Australia, New Zealand and Fiji on the Australian Securities Exchange. SCA’s holding in Asaleo Care amounts to approximately 32.5%. Asaleo Care manufactures and markets consumer tissue and Away-from-Home (AfH) tissue, diapers, feminine care products and incontinence care products. Leading brands include TENA, Tork, Sorbent, Libra and Treasures. TENA and Tork will continue to be owned by SCA but will be licensed to Asaleo Care for sales of products under these brands in Australasian markets. 4 Notes to editors Latest press releases: http://www.sca.com/en/Media/Press-releases/ Download high resolution images and videos: http://www.sca.com/en/Media/Pressimages-and-films/ Interim reports: http://www.sca.com/en/IR/Reports/Interim-reports/ Annual reports: http://www.sca.com/en/IR/Reports/Annual-reports/ Sustainability reports: http://www.sca.com/en/Sustainability/sustainability-contacts/ SCA is 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 2013 amounted to approximately SEK 93bn (EUR 10.7bn). 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. VISIT SCA ON: http://www.sca.com/en/Media/ http://www.youtube.com/SCAeveryday http://www.slideshare.net/SCAeveryday http://www.scribd.com/SCAeveryday www.linkedin.com/company/sca-company http://www.flickr.com/photos/hygienematters https://www.facebook.com/SCA https://twitter.com/SCAeveryday https://plus.google.com/116745934092347632193?prsrc=3#116745934092347632193/p osts?prsrc=3 FOR FURTHER INFORMATION, PLEASE CONTACT: Karl Stoltz, Media Relations Manager, Group Function Communications Phone: +46 70 942 63 38, Direct: +46 8 788 51 55, E-mail: karl.stoltz@sca.com Johan Karlsson, Vice President Investor Relations, Group Function Communications Phone: +46 70 511 15 81, Direct: +46 8 788 51 30, E-mail: johan.ir.karlsson@sca.com Joséphine Edwall-Björklund, Senior Vice President, Group Function Communications Phone: +46 8 788 52 34, E-mail: josephine.edwall@sca.com 5