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2016-12-22

SCA: SCA to discontinue its hygiene business in India

SCA has decided to discontinue its hygiene business in India. Four
years after entering the Indian market, our conclusion is that
profitability cannot be achieved within a reasonable timeframe. SCA
prioritizes growth in selected emerging markets such as China,
Southeast Asia, Latin America, Eastern Europe and Russia, where the
company already holds strong market positions. Emerging markets
accounted for 32% of SCA's net sales in 2015.

The total cost of the discontinuation of operations are expected to
amount to approximately SEK 350m and will be recognized as an item
affecting comparability in the fourth quarter of 2016. Approximately
SEK 50m of these costs are expected to impact cash flow.

The hygiene business in India reported total net sales of
approximately SEK 110m in 2015, the majority of which related to baby
diapers.

The hygiene business in India will be discontinued in the first
quarter of 2017.

For additional information please contact:

Linda Nyberg, Vice President Media Relations, 46 (0)8 788 51 58
Johan Karlsson, Vice President Investor Relations, 46 (0)8 788 51 30

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, Vinda and Zewa. As Europe's largest private forest owner, SCA
places considerable emphasis on sustainable forest management. The
Group has about 44,000 employees. Sales in 2015 amounted to
approximately SEK 115bn (EUR 12.3bn). 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.

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http://news.cision.com/sca/r/sca-to-discontinue-its-hygiene-business-in-...
http://mb.cision.com/Main/600/2155438/607352.pdf

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