January 30, 2020 EBITDA (SEKm) and EBITDA margin Sales growth of 4% - PowerPoint PPT Presentation

January 30, 2020

EBITDA (SEKm) and EBITDA margin Sales growth of 4% vs 2018 +1% +44% • Price/mix -8%, volume 11%, currency 3%, acq/div -2% 5,319 EBITDA up 1% vs 2018 5,252 - Lower selling prices + Higher pulp volumes + Positive currency effects 3,781 3,648 28% Operating cash flow up 6% vs 2018 3,385 27% 3,300 23% Ramp-up of Östrand pulp mill 22% 22% 21% • Investment financed by operating cash flow Acquisition of 30,000 ha forest land in the Baltics SEK 7.5bn Kraftliner investment in Obbola Increased standing volume from new forest survey Revaluation of forest asset to market value of SEK 70bn 2014 2015 2016 2017 2018 2019 Note: Excluding effects from changed accounting method for valuation of forest assets. 3

EBITDA (SEKm) Industrial ROCE 1) Proposed dividend (SEK) 5,319 12% 2.00 (5,252) (20%) (1.75) EBITDA margin Net debt/EBITDA EPS (SEK) 27% 1.6x 4.05 (28%) (1.3x) (5.21) Note: Excluding effects from changed accounting method for valuation of forest assets. 4 Figures in “(#)” refer to 2018. 1 ) ROCE for the industrial segments; Wood, Pulp and Paper.

Sales growth of -12% vs Q4 2018 • Price/mix -12%, volume 1%, currency 1%, acq/div -2% Weaker market with lower prices • However, increasing demand and declining inventories Q4 vs Q3 EBITDA down 29% vs Q4 2018 - Lower selling prices - Higher costs for planned maintenance stops - Unplanned stops + Positive currency effects Note: Excluding effects from changed accounting method for valuation of forest assets. 5

EBITDA (SEKm) EBITDA (SEKm) and EBITDA margin 1,055 -29% 1,560 1,549 1,494 1,364 1,340 1,175 1,078 1,055 1,034 33% 31% 30% EBITDA margin 27% 27% 26% 25% 24% 24% 22% Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Note: Excluding effects from changed accounting method for valuation of forest assets. 6

Net sales (SEKm) EBITDA (SEKm) EBITDA margin 10% 42% Prices stable during the quarter 35.8% 607 1,694 • Prices on new contracts are lower 1,540 27.7% 427 Sales up 10% + Increased volumes to the expanded pulp mill, partly offset by maintenance stops + Higher prices Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 EBITDA up 42% Price development – Pulpwood and Sawlogs + Higher prices + Higher earnings from revaluation of biological assets 140 130 + Capital gain from forest transactions 120 110 100 90 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Pulpwood Sawlogs 7

Net sales (SEKm) EBITDA (SEKm) EBITDA margin Over supply in continental Europe, -12% -45% 14.5% leading to declining prices 226 1,558 1,376 Sales down 12% 9.1% 125 - Lower prices - Deconsolidation in Wood France following merger with Groupe ISB Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 EBITDA down 45% - Lower prices and higher costs for wood raw material Price development – Solid Wood Products + Higher income from byproducts 120 + Positive currency effects 115 110 105 100 95 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Price index SEK 8

Average daily NBSK production (tonnes) Full Planned maintenance stop 2,500 capacity • Economizer replaced 2,000 Unplanned maintenance stop Actual 1,500 • Downtime for repeated repair work on faulty conveyor belt 1,000 Focus on maximizing availability 500 0 Jan/18 Jun/18 Jan/19 Jun/19 Jan/20 Feb/18 Mar/18 Apr/18 May/18 Jul/18 Aug/18 Sep/18 Oct/18 Nov/18 Dec/18 Feb/19 Mar/19 Apr/19 May/19 Jul/19 Aug/19 Sep/19 Oct/19 Nov/19 Dec/19 Note: October 2019 excludes planned maintenance stop. 9 Production January 2020 up until January 28, 2020.

Uptick in Softwood pulp price (USD/t) vs deliveries (Mt) Hardwood pulp inventories (days of supply) demand Decreasing 1,400 24.4 80 inventories 1,200 70 24.0 1,000 Time lag 60 Average 23.6 800 50 600 23.2 40 400 NBSK PIX Price Europe (LHS) 22.8 30 200 Global Softwood Kraft deliveries (RHS) 0 22.4 20 Softwood pulp inventories (days of supply) Decreasing Increasing pulp demand inventories 45 • Increased global pulp deliveries 40 Average 35 • Decreased softwood and hardwood inventories 30 • However, prices lagging behind 25 Chinese NBSK price slightly up in January • 20 Source: PIX, PPPC. 10

Net sales (SEKm) EBITDA (SEKm) EBITDA margin Sales down 14% -14% -95% + Increased volumes 35.3% 370 1,049 - Lower prices 900 - Planned maintenance stop - Unplanned stops 2.2% EBITDA down 95% 20 - Lower prices and higher costs for wood raw material Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 - Planned maintenance stop -138 (-15) MSEK Price development – NBSK Pulp - Unplanned maintenance stops -50 (0) MSEK + Increased volumes and improved energy balance 150 140 130 120 110 100 90 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Price index SEK 11

Price (EUR/t) vs Kraftliner deliveries (Mt) Box demand (index) Uptick in Stable increase in 850 5.5 108 demand end demand 800 106 5.4 750 104 700 5.3 650 102 600 Unbleached kraftliner price Euwid (LHS) 5.2 100 550 Kraftliner deliveries Europe (RHS) 500 5.1 98 Kraftliner inventories (days of supply) Increasing kraftliner demand Decreasing 40 inventories • Pick-up in European deliveries 35 • Decreasing inventories Seasonal increase Average 30 in December • Stable increase in box demand Good order in-flow 25 • • However, prices lagging behind 20 Source: Euwid, Numera. 12

Net sales (SEKm) EBITDA (SEKm) EBITDA margin -13% -29% Sales down 13% - Lower kraftliner prices and lower volumes 22.2% 2,421 536 2,108 18.1% + Positive currency effects 382 EBITDA down 29% - Lower kraftliner prices and lower volumes - Fire at Ortviken paper mill Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 + Positive currency effects Price development – Price development – + Higher publication paper prices Kraftliner Publication paper (LWC) + Higher share of white-top kraftliner 140 140 120 120 100 100 80 80 Q4 Q4 Q4 Q4 Q4 Q4 '17 '18 '19 '17 '18 '19 Price index SEK 13

Standing volume at Dec 31, 2019 Gross forest growth Sweden New forest survey conducted in 2019 (m m 3 fo) (m m 3 fo) SCA’s standing volume in Sweden increased +11 +1 11 m m 3 fo to 249 m m 3 fo at Dec 31, 2019 10.5 252 • Previous survey from 2012-2013 indicated a 241 Baltics 9.5 3 standing volume of 238 m m 3 fo at Dec 31, 2019 3 The 11 m m 3 sk increase related to: • 6 m m 3 fo higher growth than expected between the two surveys (6 years) Sweden • 5 m m 3 fo from refined measurement method 249 238 Annual growth 1 m m 3 fo higher than expected • Gross growth of 10.5 (9.5) m m 3 fo per year (Sweden) • Net growth of 4.0 (3.0) m m 3 fo per year (Sweden) New harvesting plan to be calculated based on the new survey • Expected to be completed during H1 2020 Forest survey Forest survey Forest survey Forest survey • Higher growth mainly from the younger forest 2012-2013 2019 2012-2013 2019 14

Sawmill Forestland Pulp mill 6% Kraftliner mill 2.6 m ha Publication Paper mill of Sweden Pellet production SCA’s forest Productive forestland Munksund 2.0 m ha Obbola Rundvik Stugun Bollstabruk Standing volume 1) Gällö Härnösand Östrand 252 m m 3 fo Tunadal Ortviken Note: 1) Including forest holdings in the Baltics. 17

Value of forest land (2019, SEK/m 3 fo) Recent larger forest transactions show a Transaction price large discrepancy between the market used to calculate new 334 value of forest land and the old book value book value 276 • Bergvik Öst / AMF – 333 SEK/m 3 fo 264 − vs SCA estimated benchmark price ~370 SEK/m 3 fo 1) Långvind / Holmen – 407 SEK/m 3 fo • − vs SCA estimated benchmark price ~400 SEK/m 3 fo 1) 136 • Bergvik Latvia / Södra – 31 EUR/m 3 fo Old book SCA SCA 3Y market value purchases divestments average Note: 1) SCA estimated benchmark price (unrestricted conditions) based on LRF/SVEFA market 18 statistics weighted according to geography and estimated share of productive forest land.

Forest book value (SEKbn) 70 Changed accounting method for valuing the forest asset as of Dec 31, ‘19 • M arket value on the basis of transactions in SCA’s area Land value Market value of SEK 70bn • Increased standing volume from new taxation included 34 Value split between Biological assets Land value at and Land value according to IFRS acquisition cost Biological • Change in value of Biological assets assets reported in Income statement • Change in value of Land reported in OCI Previous Transaction based book value market book value 19