SCA Annual Report 2009

S C

A A

nnual R ep

ort 2009

Contents

SCA at a glance flap

Introduction

CEO’s message 2

The SCA share 4

Strategy 6

Board of Directors’ Report

SCA Group

Operations and structure 10

Acquisitions, investments and divestments 11

Other Group information 12

Sales and earnings 13

Operating cash flow 14

Financial position 15

Innovations 16

Business areas

Personal Care 22

Tissue 26

Packaging 30

Forest Products 34

Responsibility and Governance

Corporate Governance 38

Board of Directors and Auditors 44

Corporate Senior Management Team 45

Risk and risk management 46

Sustainability 52

Financial statements

SCA Group

Income statement 56

Consolidated statement of comprehensive income 56

Consolidated statement of changes in equity 57

Operating cash-flow statement 57

Cash-flow statement 58

Balance sheet 60

Parent Company 61

Notes 63 Proposed distribution of earnings 98 Audit report 99 SCA data

Multi-year summary 100

Comments on the multi-year summary 101

Description of expenses 102

Raw materials, energy and transports 102

Production capacity 103

Definitions and key ratios 104

Glossary 104

Annual General Meeting and Nomination Committee 105

SCA was ranked as one of the world’s most sustainable com- panies by the responsible business magazine Canadian Corporate Knights.

SCA has been listed on the FTSE4Good global sustain ability index since 2001.

In 2008, SCA became a UN Global Compact member. SCA’s 2008 Communication on Progress report was selected as representative of Best Practice by Global Compact.

SCA was named one of the world’s most ethical com panies by the Ethisphere Institute.

SCA applies the Global Reporting Initiative (GRI) at A level in its sustainability reporting. The report was audited by Pricewaterhouse- Coopers.

SCA is included in the Dow Jones STOXX Sustainability Index and the Dow Jones Sustainability WORLD Index, which are two of the world’s most prestigious sustainability indexes.

9 10

The insurance company, Folksam, compiles an annual index for responsible business practices. In 2009, SCA shared the top spot when the marks for the environment and human rights were combined.

SCA was honoured with the 2009 Finforum award by FAR SRS – an industry organisation for auditors and consultants – the Swedish Society of Financial Analysts SFF, the Swedish Public Relations Association and Irev. The commendation focused on SCA’s expressed desire to contribute to sustainable development.

2009

FINFORUM- PRISET

tilldelas

Svenska Cellulosa Aktiebolaget SCA

Anna-Clara af Ekenstam Juryns ordförande

SCA har i sin kommunikation gjort ett snabbt skifte från det traditionella skogsföretaget som upplevts att ha varit i bakvatten till ett framtidsinriktat konsumentföretag med stark kund- och konsument-

insikt. SCA har visat att de skapar värde i en anda av innovation och med en uttalad vilja att bidra till en hållbar utveckling. Företaget har en gedigen ekonomisk information och en stor öppenhet på sin

hemsida. SCA har i denna förändring visat mod, kraft, handling och transparens.

SCA is included in OMX GES Sus- tainability Nordic and OMX GES Sustainability Sweden, two indexes for responsible investments calcula- ted by Nasdaq OMX in cooperation with GES Investment Services.

Recognition

N O

R

D IC

ECOLA B

E L

P R

IN TED MA

T T

E R

341 123

Because our products make life easier for you and millions of people around the world. Because our resources and processes are a natural part of the global lifecycle. And because we care.

c/o Life is our way of expressing SCA’s unique values, personality and direction.

SCA Annual Report 2009

S C

A A

nnual R ep

ort 2009

Contents

SCA at a glance flap

Introduction

CEO’s message 2

The SCA share 4

Strategy 6

Board of Directors’ Report

SCA Group

Operations and structure 10

Acquisitions, investments and divestments 11

Other Group information 12

Sales and earnings 13

Operating cash flow 14

Financial position 15

Innovations 16

Business areas

Personal Care 22

Tissue 26

Packaging 30

Forest Products 34

Responsibility and Governance

Corporate Governance 38

Board of Directors and Auditors 44

Corporate Senior Management Team 45

Risk and risk management 46

Sustainability 52

Financial statements

SCA Group

Income statement 56

Consolidated statement of comprehensive income 56

Consolidated statement of changes in equity 57

Operating cash-flow statement 57

Cash-flow statement 58

Balance sheet 60

Parent Company 61

Notes 63 Proposed distribution of earnings 98 Audit report 99 SCA data

Multi-year summary 100

Comments on the multi-year summary 101

Description of expenses 102

Raw materials, energy and transports 102

Production capacity 103

Definitions and key ratios 104

Glossary 104

Annual General Meeting and Nomination Committee 105

SCA was ranked as one of the world’s most sustainable com- panies by the responsible business magazine Canadian Corporate Knights.

SCA has been listed on the FTSE4Good global sustain ability index since 2001.

In 2008, SCA became a UN Global Compact member. SCA’s 2008 Communication on Progress report was selected as representative of Best Practice by Global Compact.

SCA was named one of the world’s most ethical com panies by the Ethisphere Institute.

SCA applies the Global Reporting Initiative (GRI) at A level in its sustainability reporting. The report was audited by Pricewaterhouse- Coopers.

SCA is included in the Dow Jones STOXX Sustainability Index and the Dow Jones Sustainability WORLD Index, which are two of the world’s most prestigious sustainability indexes.

9 10

The insurance company, Folksam, compiles an annual index for responsible business practices. In 2009, SCA shared the top spot when the marks for the environment and human rights were combined.

SCA was honoured with the 2009 Finforum award by FAR SRS – an industry organisation for auditors and consultants – the Swedish Society of Financial Analysts SFF, the Swedish Public Relations Association and Irev. The commendation focused on SCA’s expressed desire to contribute to sustainable development.

2009

FINFORUM- PRISET

tilldelas

Svenska Cellulosa Aktiebolaget SCA

Anna-Clara af Ekenstam Juryns ordförande

SCA har i sin kommunikation gjort ett snabbt skifte från det traditionella skogsföretaget som upplevts att ha varit i bakvatten till ett framtidsinriktat konsumentföretag med stark kund- och konsument-

insikt. SCA har visat att de skapar värde i en anda av innovation och med en uttalad vilja att bidra till en hållbar utveckling. Företaget har en gedigen ekonomisk information och en stor öppenhet på sin

hemsida. SCA har i denna förändring visat mod, kraft, handling och transparens.

SCA is included in OMX GES Sus- tainability Nordic and OMX GES Sustainability Sweden, two indexes for responsible investments calcula- ted by Nasdaq OMX in cooperation with GES Investment Services.

Recognition

N O

R

D IC

ECOLA B

E L

P R

IN TED MA

T T

E R

341 123

Because our products make life easier for you and millions of people around the world. Because our resources and processes are a natural part of the global lifecycle. And because we care.

c/o Life is our way of expressing SCA’s unique values, personality and direction.

Group’s largest markets

SEKm

Germany

UK

US

France

Italy

Sweden

Netherlands

Spain

0 4,000 8,000 12,000 16,000

0 4000 8000 12000 16000

Belgien

Mexiko

Australien

Danmark

Spanien

Nederländerna

Sverige

Italien

Frankrike

USA

Storbritannien

Tyskland

SCA at a glance SCA creates value by fulfilling the needs of customers and consumers in a spirit of inno- vation, through continuous efficiency enhancements and with a clear desire to contribute to a sustainable development. The Group develops, produces and markets personal care products, tissue, packaging, publication papers and solid- wood products, and sells products in more than 100 countries. In 2009, SCA had annual sales of SEK 111bn (EUR 10.5bn) and about 50,000 employees.

Personal Care The business area comprises three product

segments: incontinence care, baby diapers

and feminine care. Production is conducted at

23 facilities in 20 countries. Products are sold

in more than 100 countries throughout the

world.

Packaging SCA is a full-service supplier of packaging solu-

tions and offers both transport and con