SCA Divests Its Business in South East Asia, Taiwan and South Korea for Integration with Vinda

STOCKHOLM–(BUSINESS WIRE)–Regulatory News:

SCA, a leading global hygiene and forest products company,
strengthens the cooperation with Vinda International Holdings Limited
(“Vinda”) by integrating its business in South East Asia, Taiwan and
South Korea into Vinda. SCA is the majority shareholder in Vinda, one of
China’s largest hygiene companies.

As part of the transaction, SCA and Vinda have signed an agreement
regarding the exclusive license to market and sell the SCA brands; TENA
(incontinence products), Tork (Away-from-Home tissue), Tempo (consumer
tissue), Libero (baby diapers), and Libresse (feminine care) in South
East Asia, Taiwan and South Korea. With this agreement, Vinda will hold
the rights to these product brands in these Asian markets. Vinda will
acquire the brands Drypers, Dr.P, Sealer, Prokids, EQ Dry and Control
Plus in these markets. SCA will continue to provide innovation and
technical support for the business.

“Asia is an important growth market for SCA with a large population and
low penetration of hygiene products. This transaction strengthens the
collaboration between SCA and Vinda and enables us to further leverage
on our strengths to build a leading Asian hygiene business” says Magnus
Groth, President and CEO of SCA.

SCA has been a shareholder in Vinda since 2007, became its majority
shareholder in late 2013, and has consolidated Vinda financials since
the first quarter of 2014. In 2014, SCA divested its hygiene business in
China (Mainland China, Hong Kong and Macau) for integration with Vinda.

SCA’s hygiene business in South East Asia, Taiwan and South Korea had
net sales of approximately SEK 2.2 billion in 2014. The business has
approximately 1,600 employees and three personal care production sites
in Malaysia and Taiwan. The purchase consideration amounts to HKD 2.8
billion (approx. SEK 3.1 billion) on a debt-free basis.

The agreement is subject to approval by the independent shareholders of
Vinda. Closing of the transaction is expected during the first quarter
of 2016. Vinda is listed on the Hong Kong Stock Exchange.

As a consequence of this transaction SCA’s Shanghai office will stop to
have operations. This is expected to lead to approximately SEK 90m in
restructuring costs that will be recognized as an item affecting
comparability in the fourth quarter of 2015.

NB: This information is such that SCA must disclose in accordance with
the Securities Markets Act or the Financial Instruments Trading Act. The
information was submitted for publication on October 29, 2015, at 01:00
a.m. CET.

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 and
Vinda. As Europe’s largest private forest owner, SCA places considerable
emphasis on sustainable forest management. The Group has about 44,000
employees. Sales in 2014 amounted to approximately SEK 104bn (EUR
11.4bn). 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, 46 8 788 51 58
VP Media Relations and
Online Communications
or
Johan Karlsson, 46 8 788 51 30
Vice
President Investor Relations