Jan Åström, CEOLennart Persson, CFO

SCA Interim Report 1 January–30 June 2007

Delivering according to strategy

�Strong organic growth

�Acquisitions and

strategic investments

� Increased share of

value-added products

and services

Strong volume development

Higher raw material costs

Positive price trend

Strong development in H1 2007 vs. H1 2006

�Pre-tax profit up 18% to SEK 3,876m

�Net earnings up 21% to SEK 3,004m

Continued upward trend Q2 2007 vs. Q1 2007

�Strong volumes, positive price movements and lower energy costs

�Increased costs for raw materials

Strong earnings improvement

25,294 25,095 25,65025,615 26,128

14.4% 14.7% 14.9% 14.8%15.2%

0

5,000

10,000

15,000

20,000

25,000

30,000

Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007

0%

2%

4%

6%

8%

10%

12%

14%

16%

Sales EBITDA margin

Group – Quarterly Development

SEKm EBITDA (%)

SCA Group Sales and EBITH1 2007 compared with H1 2006

SEKm

SEKm

+288 +36 +180+366 +179

50,694

51,743

48,000

50,000

52,000

Sales H1

2006

Personal Care Tissue Packaging Forest

Products

Other Sales H1

2007

4,068 +51+45

+397 +205 -36 4,730

2,000

3,000

4,000

5,000

EBIT H1 2006 Personal Care Tissue Packaging Forest

Products

Other EBIT H1 2007

Sales

EBIT

� Price/mix: +4.5%� Volume: +1.5%

� Currency: -2%

� Price/mix: +49% � Volume: +9%

� Energy: +9%� Raw materials: -24%� Currency: -5%

Sales: +2%

EBIT: +16%

2,448-7+87-67+79

+742,282

1,800

2,000

2,200

2,400

EBIT Q1 2007 Personal Care Tissue Packaging Forest

Products

Other EBIT Q2 2007

SCA Group Sales and EBITQ2 2007 compared with Q1 2007

SEKm

SEKm

25,61526,128

+43+254-342+223

+335

23,000

25,000

27,000

Sales Q1

2007

Personal

Care

Tissue Packaging Forest

Products

Other Sales Q2

2007

Sales

EBIT

� Volume: +2%� Price/mix: +1%

� Price/mix: +12%� Volume: +8%

� Energy: +8% � Raw materials: -7%

Sales: +2%

EBIT: +7%

Cash-flow Analysis H1 2007 compared with H1 2006

� Operating cash surplus SEK 7,423m (6,878)

� Higher cash flow from operations

� Cash flow from current operations SEK 919m (772)

� Higher net working capital

� Cash flow before dividend SEK 2,827m (325)

� Divestment of the packaging operations in North

America

� Debt/equity ratio: 0.56 (0.70)

� Taxes:

� Tax-rate 2007: 22.5%

� Positive one-off effect in Q3 of SEK 400m

5,249 5,246 5,429 5,3315,554

17.8%17.5%17.7%17.6%17.9%

2,000

3,000

4,000

5,000

6,000

Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 20070%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Sales EBITDA margin

SEKm

Personal Care – Quarterly Development

� Strong volumes, especially within the retail segment

� Increased sales of higher value products in institutional incontinence

EBITDA (%)Q2/Q1 comments:

� Incontinence care

� Favourable launch of “Feel Dry” and recovered sales

in institutional incontinence

� Baby diapers

� Continued strong development for branded products,

particularly high growth in Russia and Colombia

� Good contribution from new pant diapers for retailers’

brands in Europe

� Feminine care

� High growth of branded feminine care products in all

markets

� Launch of new product line with natural essences in

Mexico and Central America – Saba’s new Confort line

Personal Care

7,787 7,743 7,844 7,725 8,060

12.0%11.2%11.6%

12.2%11.9%

3,000

5,000

7,000

9,000

Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007

0%

2%

4%

6%

8%

10%

12%

14%

Sales EBITDA margin

Tissue – Quarterly Development

SEKm

� Strong sales growth within AFH in North America

� Further improvements in the European consumer tissue operations

� Increased costs for raw materials

� Lower energy costs

EBITDA (%) Q2/Q1 comments:

Tissue

� Consumer tissue

� Strategic shift towards a product portfolio with

higher value in Europe

� AFH tissue Americas

� Strong growth and increased share of

value/proprietary products

• New customer contracts

• Completion of Tork launch in October

� AFH tissue Europe

� Positive volume and price development

� Tissue in China

� Successful IPO of Vinda

8,231 8,288 8,445 8,5718,229

10.8%

11.9% 12.1% 12.2%12.4%

3,000

5,000

7,000

9,000

Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007

0%

2%

4%

6%

8%

10%

12%

Sales EBITDA margin

Packaging – Quarterly Development

SEKm

� Strong development with increased prices

� Higher costs for recovered paper

� Lower energy costs

� Divestiture of North American packaging operations

EBITDA (%)Q2/Q1 comments:

Packaging

� Containerboard

� Good market balance

� Increases in raw material costs

� Corrugated packaging� Price increases under implementation, further

improvements expected in H2

� Continued market growth

4,454 4,339 4,480 4,4724,726

23.0%22.4%22.5%

21.0%21.8%

1,000

2,000

3,000

4,000

5,000

Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007

0%

5%

10%

15%

20%

Sales EBITDA margin

Forest Products – Quarterly Development

� Strong volumes and higher prices in pulp, timber and solid-wood products

� Increased volumes in Publication papers but disappointing price development

� Higher raw material costs

SEKm EBITDA (%)Q2/Q1 comments:

Forest Products

� Publication papers� Competitive European market for magazine

papers

� Higher costs for recovered paper and wood

� Pulp, timber and solid-wood products� Continued favourable market for solid-wood

products

� Strong pulp markets

Summary

� Delivering according to strategy� Strong organic growth, acquisitions and

strategic investments

� Increased share of value-added products and services

� Stable financial outlook

� High raw material costs and uncertain energy markets

� Strong volumes, price increases and product mix improvements