SCA delivers binding offer to acquire Georgia-Pacific´s European tissue operations

Binding offer for Georgia-Pacific’sEuropean tissue businessJan Johansson, President and CEO1 November 2011

Binding offer for Georgia-Pacific’sEuropean tissue operations Offered price: EUR 1.32bn Already in year one the transaction is estimated to contribute to an increase of earnings per share and cash flow With fully realized synergies earnings per share are expected to increase with approx. SEK 1.70 Georgia-Pacific´s acceptance of this offer is subject to consultations with works councils where appropriate The transaction will be subject to customary consultation with employee representatives and will also be subject to approval by relevant competition authorities2 November 2011

Binding offer for Georgia-Pacific’sEuropean tissue operations Creates a leading European tissue company Strengthens our product offering and geographic reach in Europe Enhances our presence in key markets Good strategic fit in AFH tissue Substantial synergies Increased share of branded sales in our consumer tissue portfolio3 November 2011

Georgia-Pacific’s European tissue operations Sales: EUR 1.25bn*  Consumer tissue, approx. 60%  AFH tissue, approx. 30%  Personal care, approx. 5% EBIT margins on similar level as SCA’s tissue business Market positions  Consumer tissue, 11% market share  AFH tissue, 10% market share Well-known Lotus brand for AFH tissue and consumer tissue Approx. 5,000 employees 15 manufacturing sites in 7 countries 670,000 tonnes annual tissue capacity* Italy and Turkey are not included in the binding offer 4 November 2011

Substantial synergies Increased supply chain efficiency  Optimization of logistics  More efficient sourcing Improved SG&A and A&P efficiency  Annual synergies: EUR 125m  Improves Tissue EBIT margins by 2-2.5 percentage points  Full effect in 3 years after closing  Related costs: EUR 130m5 November 2011

Enhances SCA’s presenceIn both Consumer tissue and AFH tissue European Consumer tissue market 25% SCA SCA and GP 35% European AFH tissue market SCA and GP SCA 19% 30%6 November 2011

Increased share of branded sales In Consumer tissue SCA’s Consumer tissue sales SCA SCA and GP Retailers’ Branded brands BrandedRetailers’ 40% 50% brands 7 November 2011

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SCA delivers binding offer to acquire Georgia-Pacific´s European tissue operations

by SCA Svenska Cellulosa Aktiebolaget on Nov 10, 2011

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SCA delivers binding offer to acquire Georgia-Pacific´s European tissue operations — Presentation Transcript