SCA's Presentation from the ABGSC SRI conference, June 12 - 2012

ABGSC SRI conferenceKersti Strandqvist, SVP Corporate Sustainability

SCA GroupMajor changes Acquisition of Georgia-Pacific’s European tissue operations Divestment of the Packaging business, excluding the two kraftliner mills Established joint venture in Australia/New Zealand Acquisition of Everbeauty an Asian hygiene products company Increased shareholding in Vinda Acquisition of PISA in Chile New hygiene organization Acquisition of PLF a French solid-wood products company2 June 2012

SCA GroupAfter completion of ongoing transactions Net sales of SEK 92bn 37,000 employees and sales in more than 100 countries World’s second-largest hygiene company TEN and Tork are leading global brands for incontinence care and AFH tissue Europe’s largest private forest owner Europe’s second-largest sawmill company3 June 2012

Global challenges/opportunities Ageing population Growing middle class Scarce resources Climate change Deforestation Access to water4 June 2012

Sustainability – a business approach Improved competitive edge Reduced cost Reduced risk level Attract investors Employer branding Strengthen the brand5 June 2012

Sustainability strategyValue creation for people, nature and business Economy Nature People Sustainability is an integral part of business operations6 June 2012

What is measured gets done People targets Nature targets Health & Safety  Climate & energy Hygiene solutions  Water Sustainable innovations  Fibre sourcing and Code of Conduct biodiversity 7 June 2012

Existing sustainability targets Carbon dioxide emissions Improved water usage SCA will reduce its emissions SCA will reduce its water from fossil fuels and from consumption in water stressed purchased electricity and heating regions with 10% by 2015, with by 20% by the year 2020, with 2010 as a reference year. All pulp 2005 as a reference year. and paper mills will employ mechanical and biological water treatment plants by 2015. Responsible use of wood raw Code of Conduct compliance material SCA’s Code of Conduct applies to No fresh fibre-based material all employees at all locations comes from controversial worldwide. sources*. Target also includes pulp and containerboard.*Illegally logged timber, Timber from forests with high conservation value and/or timber from areas where human rights or traditional rights of indigenous people are being violated. 88 June 2012

Sustainability for profitable businessEconomic value creation We help customers achieve their sustainability targets EU Green Public procurement Graphic paper – OTTO, Metro, REWE, Bertelsmann Publishing companies - IPC Media,Bauer Media, Hearst Magazines, Future Publishing DIY markets - Buildbase, Homebase Starbucks Empire State building Retailers FSC9 June 2012

Energy consumption affects costsValue creation for nature New lime kiln in Östrand first in the world to substitute fuel oil for wood powder – Reduces carbon dioxide emissions by 80% and cost by SEK 50m annually ESAVE – 1,700 small-scale projects has generated annual savings of SEK 700m since 2003 – 360 projects in 2011 resulted in a reduction of carbon dioxide emissions by 54,000 tonnes and a 1.7% reduction in energy consumption per product tonne10 June 2012

Solutions for a growing middle classEconomic value creation Increased share of net sales from emerging markets New business models – customised products and solutions Increased interest in sustainability in emerging markets11 June 2012

Incontinence solutions for dignityValue creation for people An ageing population creates growth opportunities Being able to stay at home instead of in residential homes adds to dignity and quality of life Lower cost for society with home care compared to residential homes12 June 2012

Growth opportunities in China Value creation for people New Innovation Centre in Shanghai delivers innovative products building on customer and consumer insight – TENA Belt Dialogue with policy makers Education of 6,000 nurses Home care pilot Everbeauty acquisition13 June 2012

Resource efficiency favours environmentValue creation for nature Life Cycle Assessments improve customer offering – Thinner incontinence care products, diapers and feminine care products reduce carbon footprint and improve function and fit – TorkXpressnap reduce consumption by at least 25%, positive for the environment and for the customers14 June 2012

Forests as carbon absorbers SCA is Europe’s largest private forest owner – FSC certified since 1999 Our forests have a net growth of about 1% annually Our forests absorb as much carbon dioxide as is discharged from our entire production – 2.6 Mtonnes Well-managed forests contribute to solve the climate change problem15 June 2012

Innovative solutionsGreat potential in renewable energy Wind power, 5 TWh – SCA/Statkraft initiative – SCA/Fred.Olsen Renewables – SCA proprietary project – Many potential wind areas on SCA land – Leasing of locations Biofuels – Biofuels account for 45% of SCA’s fuel consumption – Deliveries of 3.2 TWh in 2011 – Logging residuals and by-products from forest industry becomes biofuel – Only 1/3 of potential of logging residuals is utilised New business unit for renewable energy solutions, SCA Energy16 June 2012

IR Contacts:Johan Karlsson, VP Investor Relations Jessica Ölvestad, Manager Investor RelationsTel: +46 8 788 51 30 Tel: +46 8 788 52 82 Email: ir@sca.com Website: www.sca.com

SCA's Presentation from the ABGSC SRI conference, June 12 - 2012

by SCA Svenska Cellulosa Aktiebolaget on Jun 27, 2012

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SCA’s Presentation from the ABGSC SRI conference, June 12 - 2012 Presentation Transcript