SCA Closes Baby Diaper Business in Mexico

STOCKHOLM–(BUSINESS WIRE)–As part of SCA’s (STO:SCAA) (STO:SCAB) work with addressing weak market
positions that have inadequate profitability, the Group has decided to
close its baby diaper business in Mexico. Mexico is the Group’s eighth
largest market, based on sales in 2015, and is highly prioritized by
SCA. SCA holds leading market positions in feminine care, incontinence
products and tissue in the country.

The total costs for the closure of the business are expected to amount
to approximately SEK 170m and will be recognized as an item affecting
comparability in the third quarter of 2016. Approximately SEK 20m of
these costs are expected to impact cash flow.

The baby diaper business in Mexico had net sales of approximately SEK
340m in 2015.

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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Contacts

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