SCA (SCA) Investor presentation summary

Strategy and integrated value chain

• Priorities: increase value from each tree, grow pulp, containerboard and wood, develop renewable energy, and expand forest holdings in the Nordics and Baltics.

• Integrated value chain reported sales of SEK 20.8bn, EBITDA of SEK 10.2bn, 49% EBITDA margin and 40% industrial ROCE; 2022 climate benefit was 10.1 Mt CO₂.

• 2030 targets include raising annual climate benefit to 15 Mt CO₂, sourcing 100% of wood raw material from responsibly managed forests, and achieving zero waste.

Forest assets and growth

• Forest holdings total 2.7m ha, including 2.1m ha of productive forestland; standing volume is 267m m³fo, equivalent to 6% of Sweden.

• 2022 forest metrics: gross growth 10.5m m³fo, harvesting 5.3m m³fo and net standing-volume increase 3.8m m³fo; own forests supply ~50% of wood raw material needs.

• Baltic holdings were ~70,000 ha against a 100,000 ha target; estimated market value was 40–50% above purchase price, based on 2021 transactions.

• Forest growth, harvesting and land value underpin the forest-return thesis; the Swedish Forest Total Return index recorded a 10% CAGR from 1956 to 2022, with cash flow reinvested in forest.

Industrial businesses

• 2022 segment results: wood sales SEK 6.753bn and EBITDA SEK 2.079bn (31% margin); pulp SEK 7.209bn and SEK 2.961bn (41%); kraftliner SEK 6.823bn and SEK 2.852bn (42%).

• Wood operations have 2.2m m³ annual capacity across five modern sawmills; strategy emphasizes value-added products, customized offerings and plant efficiency.

• Pulp capacity includes 900kt of NBSK and 300kt of CTMP at Ortviken by 2025; the new Ortviken CTMP facility started up in Q4 2022.

• Obbola’s new kraftliner machine added 275kt annual capacity after starting up at year-end 2022; total capacity is targeted at 1,140kt in 2026, the first full-capacity year.