STOCKHOLM, January 28, 2022 /PRNewswire/ —

January-December 2021 over January-December 2020

  • Net sales amounted to 18,822 million Swedish crowns (18,410). The shutdown of the publishing paper activities in the first quarter of 2021 (see page 5) and the disposal of Wood Supply UK in the fourth quarter of 2020 (see page 7) had a negative impact on sales. Excluding these effects, sales increased by 26%. The increase is mainly attributable to higher selling prices in all product areas.

  • EBITDA increased by 105% to reach SEK 9,109 million (4,4401). This development is mainly due to higher sales prices in all product areas, a good development in productivity and a stable and low level of costs. Exchange rate effects had a negative impact on results. The EBITDA margin was 48.4% (24.11).

  • Operating profit increased to 7,634 million Swedish crowns (2,8391)

  • Operating cash flow amounted to 5,216 million Swedish crowns (2,688)

  • Earnings per share increased to SEK8.69 (3.191)

  • The Board of Directors is proposing a dividend of SEK3.25 (2.00) per share, of which SEK2.25 relates to an ordinary dividend and SEK1.00 relates to an additional dividend

October-December 2021 versus October-December 2020

  • Net sales amounted to 4,763 million Swedish crowns (4,592). The increase is mainly attributable to higher selling prices, which were offset by the discontinuation of the printing paper activities.

  • EBITDA amounted to 2,806 million Swedish crowns (1,3771) and the EBITDA margin increased to 58.9% (30.01)

October-December 2021 over July-September 2021

  • Net sales decreased 6% to 4,763 million Swedish crowns (5,077). The variation is mainly attributable to lower selling prices.

  • EBITDA amounted to 2,806 million Swedish crowns (2,684) and EBITDA margin increased to 58.9% (52.9)

KEY FIGURES

Trimester

Full year

million SEK

2021:4

2020:41

%

2021:3

%

2021

20201

%

Net sales

4,763

4,592

4

5,077

-6

18,822

18,410

2

including the continuation of activities

4,754

3,506

5,032

18,256

13,447

262

of which publishing paper and Wood Supply UK

9

1,086

45

566

4,963

-242

EBITDA

2,806

1,377

104

2,684

5

9 109

4,440

105

EBITDA margin (%)

58.9

30.0

52.9

48.4

24.1

Operating result

2,408

986

144

2,298

5

7,634

2,839

169

net profit

1,995

821

143

1,821

ten

6 101

2,239

172

Earnings per share SEK

2.84

1.17

2.59

8.69

3.19

Operating cash flow

1,763

957

1,872

5,216

2,688

Net debt / EBITDA (LTM)

0.9x

1.7x

1.0x

0.9x

1.7x

1 Excluding the effect of exceptional items related to the shutdown of publishing paper activities in the third and fourth quarters of 2020. For more details and a comparison including the effects of these exceptional items, see note 10.

2 Change within 2020 total net sales.

COMMENTS ON THE FINANCIAL STATEMENTS

Summary of the year

Earnings for 2021 were the highest ever for SCA. The shutdown of the publishing paper activities was finalized at the beginning of the year, thus securing a structure geared towards growth markets which successively create value. Demand and prices increased across all product lines and production and cost control stabilized. Good planning and a focus on health and safety limited the spread of Covid-19 and thus ensured that production and deliveries were maintained and strategic investment projects progressed according to schedule.

Summary of the fourth quarter

Fourth quarter 2021 earnings improved 5% from the prior quarter and 104% from the prior year quarter.

Wood supply to SCA industries remained stable. Pulpwood price was in line with the prior quarter while lumber price increased in the north Sweden due to high demand.

Lower seasonal demand for solid wood products resulted in normalized inventory levels and lower market prices in the quarter compared to the prior period.

Pulp delivery volumes decreased from the prior quarter due to the planned maintenance outage that occurred during the quarter. The CTMP extension project in Ortviken is progressing on time and within budget.

Demand for kraftliner is strong, driven by a sustained high level of global demand for corrugated packaging. Market prices increased during the quarter compared to the previous quarter. kraftliner’s expansion project in Obbola is progressing on time and on budget.

Higher transaction prices for forest assets in the north Sweden

SCA bases its valuation of forest assets on Sweden on forest transactions carried out in areas where SCA owns forests. The market value of the forest increased in 2021. The average market price used in the valuation of SCA’s forest assets was SEK 324/m3for to the 31st of December2021, an increase of more than 10% compared to the previous year (SEK291/m3fo). This corresponds to a total book value of SCA’s forest assets of 84.5 billion Swedish crowns (74.9) (see page 5).

Invitation to the SCA press conference for the fourth quarter of 2021, on January 28, 2022 at. 10.00 CET

The interim report will be published on January 28, 2022around 08:00 CET. The next webcast press conference will take place at 10:00 a.m. CET in a digital format.

During the press conference, the President and Chief Executive Officer Ulf Larsson and financial director Toby Lawton will present and answer questions about the report.

The press conference will be webcast live at www.sca.com. It is also possible to participate in the press conference by telephone:

Sweden: +46 (0) 8 566 426 51
UK: +44 (0) 3333 000 804
USA: +1 631 913 1422

Call well before the conference starts. Provide conference ID 10918682#.

Please note:

This is information that SCA is required to make public under the EU Market Abuse Regulation and Securities Markets Act. This report has been prepared in Swedish and English versions. In case of content variations between the two versions, the Swedish version will prevail. The information has been submitted for publication, through the contact person listed below, on January 28, 2022 at 08:00 CET. The report has not been reviewed by the company’s auditors.

Anders EdholmCommunications Director, +46 (0)60 19 32 12

CONTACT:

For more information, please contact:

Anders EdholmGroup Communications Director, tel +46 60 19 32 12
Josephine BonnevierDirector of Investor Relations, tel + 46 73 525 99 06

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