SCA Interim Report 1 January - 30 June 2000

Interim report 1 January - 30 June 2000 00:2 00:1 0006 9906 Net sales, SEK M 16,351 15,992 32,343 32,631¹ Earnings after financial items, SEK M 1,773 1,670 3,443 2,415 2 Earnings per share, SEK 5.05 4.79 9.84 7.56 Earnings per share excluding goodwill 5.79 5.53 11.32 8.83 2 amortization, SEK Cash flow from current operations per 6.37 3.79 10.16 12.10 2 share, SEK 1 Including net sales in SCA's former fine paper operations. 2 Adjusted historically to reflect new issue. * Earnings after financial items rose 43%, compared with 1999. * Operating profit rose 44% for Packaging, 37% for Forest Products and 7% for Hygiene Products. * Operating cash surplus improved to 18% (16) of net sales. SECOND QUARTER 2000 COMPARED WITH FIRST QUARTER 2000 * Earnings after financial items rose 6% and amounted to SEK 1,773 M, which was the best-ever quarterly result. * Despite very sharp increases in the cost of raw materials during the quarter, Packaging was able to fully compensate these through price increases and other improvements. * Hygiene Products experienced pressures on margins during the quarter, although the decline was significantly less than during the previous quarter. NET SALES AND EARNINGS The first six months of 2000 were characterized by favorable economic growth with growing demand for the SCA's products and increasing raw material prices, particularly pulp and recovered paper. Increases in sales prices were implemented in virtually all product areas. Consolidated net sales amounted to SEK 32,343 M (32,631), a decline of 1% compared with 1999. Adjusted for the deconsolidation of fine paper activities, which was included in the six-month report for the previous year, net sales by the Group's core operations increased 18%. Currency movements decreased consolidated sales by 2%. Group operating profit amounted to SEK 4,044 M (2,999), an increase of 35%, compared with the corresponding period in 1999. Currency movements had some negative impact on earnings. All business areas reported improved operating profits. Operating profit for the Hygiene Products business area amounted to SEK 1,304 M (1,217), an increase of 7%. Packaging reported an operating profit of SEK 1,336 M (929), an increase of 44%, while operating profit for Forest Products rose by 37% to SEK 1,293 M (946). Operating profit attributable to SCA's ownership share in Modo Paper amounted to SEK 524 M, which was more than twice as high as operating profit reported last year for SCA's former fine paper operations, which totaled SEK 230 M. Financial items amounted to an expense of SEK 601 M (expense: 584). The increase was attributable to higher interest rates. Group earnings after financial items amounted to SEK 3,443 M (2,415), an increase of 43% compared with the corresponding period of 1999. Net earnings after tax totaled SEK 2,279 M (1,587). Earnings per share after full tax and full dilution amounted to SEK 9.84 (7.56), an improvement of 30%. Earnings per share after full tax and full dilution but excluding goodwill amortization amounted to SEK 11.32 (8.83). The fact that earnings per share increased less than profit after tax is attributable to the new share issue in 1999. Return on shareholders' equity was 14% (11). The return on capital employed was 13% (11). Comparisons with the first quarter Despite continuing price increases for pulp and recovered paper, operating profit increased by 7% to SEK 2,093 M. In the Forest Products business area, price increases and higher sales volumes contributed to a 13% increase in profits to SEK 686 M, and profit from the ownership share in Modo Paper increased 40% to SEK 306 M. Operating profit in the Packaging business area increased 1% to SEK 671 M, while profit reported by Hygiene Products declined 6% to SEK 631 M, due to continued rapid increases in pulp and recovered paper prices. Earnings after financial items increased 6% and amounted to SEK 1,773 M, which was the best-ever quarterly result. CASH FLOW The operating cash surplus amounted to SEK 5,737 M (5,213), equal to 18% (16) of net sales. Operating cash flow amounted to SEK 3,217 M (3,453). Working capital increased by SEK 1,516 M (744) during the period. This year, the seasonal increase in working capital has been strengthened by an exceptionally low level of tied-up working capital, 10.3% of net sales at year-end. The low level was the result of very high deliveries in the fourth quarter, due to customer inventory needs prior to the millennium shift and expectations of price hikes. At the end of the period, tied-up working capital amounted to 12.3% of annual sales, compared with 12.4% after adjustment for fine paper operations at the corresponding date during the previous year. The net of ongoing investments amounted to SEK 946 M (911). Cash flow from current operations, that is before strategic investments and dividends, amounted to SEK 2,357 M (2,550), equal to SEK 10.16 (12.10) per share. Company acquisitions and strategic capital investments in machinery and plant, as well as structural costs, totaled SEK 1,089 M (5,270). Strategic capital expenditures in machinery and plant amounted to SEK 739 M (1,540), mainly in Hygiene Products. Divested units amounted to SEK 32 M (30). SEK M 0006 9906 Net sales 32,343 32,631 Operating cash surplus 5,737 5,213 % of net sales 18 16 Current capital expenditures, net -946 -911 % of net sales 3 3 Changes in working capital -1,516 -744 Other operating cash flow changes -58 -105 Operating cash flow 3,217 3,453 1 Tax payment etc -430 -509 Free cash flow 2,787 2,944 Per share, SEK 12.01 13.98 Interest payment after taxes -430 -394 Cash flow from current operations 2,357 2,550 Per share, SEK 10.16 12.10 Strategic investments and divestments -1,057 -5,240 Cash flow before dividend 1,300 -2,690 1 Tax attributable to operating profit. FINANCING Net debt at the close of the period amounted to SEK 23,957 M, which was SEK 116 M lower than year-end 1999. The change reflects the net of cash flow from current operations amounting to SEK 2,357 M, net expenditures for strategic investments totaling SEK 1,057 M, dividend amounting to SEK 1,566 M and positive effects of currency movements totaling SEK 382 M. The strengthening of the Swedish krona reduced equity by approximately SEK 470 M. The decline was caused by SCA's policy of hedging Group assets outside Sweden, which is based on the principle whereby currency movements should mainly not affect the debt/equity ratio. This policy means that the foreign assets will only be hedged to a limited extent. The debt/equity ratio amounted to 0.69 (0.96). The interest coverage multiple was 6.7 (5.1). HYGIENE PRODUCTS BUSINESS AREA Net sales amounted to SEK 14,901 M (13,288), an increase of 12% compared with the year-earlier period. Acquired companies accounted for most of the increase. Operating profit rose 7% to SEK 1,304 M (1,217). The improvement was attributable to effects generated by acquired companies, organic growth and rationalization measures. Implemented price increases, however, have not yet fully compensated the high increases in raw materials prices, resulting in reduced margins. Compared with the first quarter, operating profit declined 6% due to raw material costs increasing faster than prices for finished products. Pulp prices will probably continue to increase somewhat during the third quarter. At the same time, sharp increases in tissue prices were implemented. It is therefore expected that the prospects for gradually increased margins during the second half of the year are favorable. Consumer products Earnings from consumer products increased 24% to SEK 578 M (468). Acquired companies accounted for most of the increase. During the second quarter, the operating margin declined from 7% to 6% as a result of weaker profits in the consumer tissue segment where market conditions have not permitted price increases at a rate that would allow increases in pulp prices to be passed on. The expenses for sales support and marketing still remain at a high level in conjunction with the successful introduction of the Wipe & Clean household towels in Europe. The sales trend for diapers and feminine hygiene products was favorable, volume growth is favorable and margins are equal or higher than in previous year. AFH and incontinence products Operating profit for AFH and incontinence products was lower than in the previous year and totaled SEK 726 M (749). Strong volume growth and increased prices during the second quarter allowed margins to be retained, despite sharply increasing raw material costs. SEK M 00:2 00:1 0006 9906 Net sales 7,499 7,402 14,901 13,288 Operating surplus 1,001 1,036 2,037 1,812 Operating profit 631 673 1,304 1,217 Operating surplus margin, % 13 14 14 14 Operating margin, % 8 9 9 9 Volume growth, % 2 2 Consumer products 0.2¹ 4.3¹ 18.8 4.7 2 2 AFH and incontinence products 4.1¹ 1.6¹ 5.9 8.2 ¹ Compared with the immediately preceding quarter. 2 Compared with corresponding period previous year. PACKAGING BUSINESS AREA Net sales for the period amounted to SEK 11,791 M (9,409), an increase of 25%. Operating profit amounted to SEK 1,336 M (929), an increase of 44%. Operating profit for the second quarter was on par with the first quarter, despite increasing raw material prices. Corrugated board packaging Market conditions in Europe are very favorable. In the major markets of Germany, France, Italy and Benelux, deliveries were estimated to have increased by between 6% and 9% during the first six months of the year. Corrugated board deliveries in the U.K., where manufacturing industries have been severely affected by the strong currency, deliveries were at the same level as during the preceding year. Growth in the Swedish and Danish markets, which are important for SCA, was also favorable, with increases of between 4% and 6%. Price increases were implemented successively during the spring and summer. These price increases, however, were not sufficient to allow margins to be fully retained. In certain cases, there were also delays in the implementation of price increases due to long-term contracts. Further price increases have been announced for the third quarter. Containerboard Demand was strong in Europe during the first six months of the year, and price increases were implemented. Since no general price increases for kraftliner and testliner are expected during the third quarter, some reduction in customer inventories occurred toward the end of the second quarter, resulting in lower deliveries from the liner mills. Demand for white top liner products is exceptionally strong, and some price increases are expected during the third quarter. Recovered paper prices, which increased sharply during the first six months, were stabilized in June. Demand for containerboard was weaker in the U.S. than in Europe, due to the strong dollar, greater millennium effects and associated adjustments of inventories. Liner inventories therefore increased, and market-related production stops were announced. Lower domestic demand and lower exports to Asia also resulted in declining prices for recycled fiber. An increase in containerboard demand is expected during the autumn, due to strong underlying growth. SCA's liner deliveries were limited by maintenance stoppages in the kraftliner mills during the second quarter, as well as a fire at the testliner mill in Lucca, Italy, which resulted in a production loss of about 10,000 tons. SEK M 00:2 00:1 0006 9906 Net sales 6,015 5,776 11,791 9,409 Operating surplus 982 1,002 1,984 1,492 Operating profit 671 665 1,336 929 Operating surplus margin, % 16 17 17 17 Operating margin, % 11 12 11 11 Production Liner products, kton 631 647 1,278 1,112 Deliveries Liner products, kton 620 647 1,267 1,139 2 Corrugated board, Mm 967 920 1,887 1,650 FOREST PRODUCTS BUSINESS AREA Net sales by the business area amounted to SEK 6,272 M (5,553), an increase of 13%. Operating profit rose to SEK 1,293 M (946), an increase of 37%, primarily due to increased profit in pulp operations. Profit for the second quarter increased 13% to SEK 686 M (607), compared with the first quarter. This was due to favorable earnings in pulp operations. Despite higher prices for pulp and recovered paper, profit in publication papers was unchanged, compared with the first quarter. The market for newsprint, SC paper and LWC paper is very favorable. Price increases were implemented for publication paper contracts that were not fixed until year-end. LWC prices were raised by between 4% and 6% around mid-year in most markets. Pulp, wood and solid wood products The operating profit rose to SEK 624 M (284), which was more than twice the year-earlier figure. The improvement was entirely attributable to higher pulp prices. Forestry operations generated profits in line with the preceding year, while profit from sawmill operations improved. Publication paper Operating profit from publication paper operations amounted to SEK 669 M (662), an increase of 1%. Despite higher costs for pulp, recovered paper and oil-based energy, higher delivery volumes and marginally higher average prices contributed to slightly higher profits than in the preceding year. SEK M 00:2 00:1 0006 9906 Net sales 3,177 3,095 6,272 5,553 Operating surplus 950 869 1,819 1,451 Operating profit 686 607 1,293 946 Operating surplus margin, % 30 28 29 26 Operating margin, % 22 20 21 17 Production Publication paper, kton 319 319 638 597 3 Solid wood products, km 187 170 357 310 Deliveries Publication paper, kton 329 311 640 585 3 Solid wood products, km 178 184 362 304 OTHER MATTERS The divestment of SCA's shareholding in Modo Paper, as well as the acquisition of Metsä-Serla's Corrugated division, are expected to be approved by the EU Commission and implemented in August. With the current profit level in fine paper operations, prevailing interest rates and before realization of coordination effects in corrugated board operations, these transactions will have a negative impact on earnings after financial items of about SEK 140 M during the third quarter. The capital gain will amount to about SEK 2.6 billion. With regard to the acquisition of Metsä Tissue, the EU Commission is not expected to issue a decision at the earliest before the fourth quarter. A memorandum of understanding has been signed with Jefferson Smurfit plc regarding the divestment of the Danish company Neopac A/S, which is part of Metsä-Serla's Corrugated Board division, for a purchase price amounting to about EUR 30 M on a debt-free basis. The establishment with Graninge of a jointly owned forestry and timber company was implemented according to plan on July 1. For SCA, this will result in a reduction of net debt by about SEK 900 M. PERSONNEL The number of employees at the close of the period was 34,874 (34,388). The change reflects a net of company acquisitions and the separation of the fine paper operations during the autumn. MARKET OUTLOOK Market condition are expected to remain strong with favorable demand for the Group's products during the autumn. The rate of price increases for raw materials will probably slow down during the closing six months of the year, which means that price increases for finished products are expected to result initially in stabilization and then gradual improvement of margins in the hygiene products and packaging areas. The strong market conditions for publication paper are expected to continue during the second half of the year. However, it will probably only be possible to increase prices in the LWC segment. SHARE DISTRIBUTION 00-06-30 Series A Series B Total Registered number of shares 62,033,309 168,266,615 230,299,924 Unconverted debenture loans - 1,368,468 1,368,468 Outstanding warrants - 1,741,206 1,741,206 Total after full conversion 62,033,309 171,376,289 233,409,598 During the second quarter, 100,000 series A shares were re-classified as series B shares. Calculated in accordance with the recommendations of the Swedish Financial Analysts Association, effects of the outstanding convertible debenture and warrant programs amount to a maximum dilution of 0.7%, which was taken into account when calculating earnings per share for the period. Stockholm 28 July 2000 SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ) Sverker Martin-Löf President and CEO This report is unaudited. The interim report for 1 January - 30 September will be released on 30 October 2000. Copies of the Interim Report are available at SCA U.K. Holdings Limited, SCA Packaging House, 543, New Hythe Lane, Aylesford, Kent ME20 7PE, attention, Tony Staples, telephone 0044 1622 883 025. Statement of Earnings 1 January - 30 June 2000 1999 SEK M EUR M SEK M EUR M Net sales 32,343 3,859 32,631 3,653 Operating expenses -26,571 -3,170 -27,471 -3,076 Operating surplus 5,772 689 5,160 577 Depreciation according to plan, -1,926 -230 -1,910 -214 properties and plant Depreciation according to plan, goodwill -344 -41 -267 -30 Share in earnings of Modo Paper AB¹ 524 62 - - Share in earnings of other associated 18 2 16 2 companies Operating profit 4,044 482 2,999 335 Financial items -601 -72 -584 -65 Earnings after financial items 3,443 410 2,415 270 Income taxes -1,136 -135 -797 -89 Minority interest -28 -3 -31 -3 Net earnings after tax 2,279 272 1,587 178 Operating margin 13% 9% Return on shareholders' equity 14% 11% Return on capital employed 13% 11% ¹ As of 1 October 1999, Modo Paper AB is included as a share in earnings. For earlier periods, SCA's original fine paper operations are included in net sales, operating expenses, etc. Business Areas Net sales 1 January - 30 June SEK M 2000 1999 Hygiene Products 14,901 13,288 Packaging 11,791 9,409 Forest Products 6,272 5,553 1 Fine paper, paper merchanting - 5,237 Other operations 729 862 Intra-Group deliveries -1,350 -1,718 Total net sales 32,343 32,631 See also additional information on page 16 ¹ As of 1 October 1999, Modo Paper AB is included as a share in earnings. Accordingly, net sales are not reported after this date. Earnings 1 January - 30 June SEK M 2000 1999 Hygiene Products 1,304 1,217 Packaging 1,336 929 Forest Products 1,293 946 2 Fine paper, paper merchanting 524 230 Other operations -69 -56 Operating profit before goodwill 4,388 3,266 amortization 3 Goodwill amortization -344 -267 Total operating profit 4,044 2,999 Financial items -601 -584 Earnings after financial items 3,443 2,415 See also additional information on page 16. 2 Pertains to share in earnings of Modo Paper AB as of the fourth quarter 1999, but refers to operating profit for earlier periods. 3 Goodwill amortization: 2000 1999 Hygiene Products 89 38 Packaging 98 68 Fine paper, paper merchanting - 1 4 Common 157 160 Group 344 267 4 Goodwill reported on a Groupwide basis pertains to surplus values in companies acquired in 1990, with operations that were integrated in SCA's various business areas. Goodwill attributable to later acquisitions has been allocated to the business area that made the purchase. Balance sheet 2000-06-30 1999-12-31 SEK M EUR M SEK M EUR M Assets Tangible assets 43,844 5,211 44,571 5,215 Goodwill 10,046 1,194 10,431 1,220 Other intangible assets 873 104 904 106 Long-term receivables 85 10 102 12 Shares and participations 5,107 607 5,057 592 Receivables and inventories 19,525 2,321 18,312 2,143 Financial receivables and investments 2,040 242 4,207 492 Cash and bank balances 1,517 180 1,630 191 Total assets 83,037 9,869 85,214 9,971 Equity, provisions and liabilities Shareholders' equity 34,345 4,082 34,133 3,994 Minority interests 622 74 587 69 Provisions for pensions 919 109 1,029 120 Other provisions 7,561 899 7,603 890 Interest-bearing debt 26,595 3,161 28,881 3,379 Operating liabilities and other 12,995 1,544 12,981 1,519 noninterest-bearing debt Total equity, provisions and liabilities 83,037 9,869 85,214 9,971 Debt/equity 0,69 times 0,69 times Equity/assets 42% 41% Cash flow statement 1 January - 30 June SEK M 2000 1999 2 Operating cash surplus 5,737 5,213 Changes in working capital -1,516 -744 Current capital expenditures -946 -911 Other operating cash flow changes -58 -105 Operating cash flow 3,217 3,453 Financial items -601 -584 Income taxes paid -232 -316 Other -27 -3 Cash flow from current operations 2,357 2,550 Strategic capital expenditures -739 -1,540 Strategic structural expenditures -212 -153 Company acquisitions -138 -3,577 Divestments 32 30 Cash flow before dividend 1,300 -2,690 Dividend -1,566 -1,283 1 Net cash flow -266 -3,973 3 Net debt, 1 January -24,073 -24,756 Net cash flow -266 -3,973 Currency effects 382 882 4 Other effects - 171 3 Net debt, 30 June -23,957 -27,676 3 Debt payment capacity 39% 32% 1 Additional information in accordance with Swedish Financial Accounting Standards Council's recommendation regarding reporting of cash flow: Net cash flow -266 -3,973 Change in interest-bearing debt 195 3,772 Change in cash and bank balances -71 -201 Cash and bank balances at beginning of 1,630 1,819 period Change in cash and bank balances -71 -201 Currency effects on cash and bank -42 -24 balances Cash and bank balances at end of period 1,517 1,594 2 Operating surplus adjusted for significant non-cash items in accordance with the principles being applied by SCA effective at mid-year 1999. 3 Calculated pro forma with pension liabilities included in net debt. 4 The effects of pension liabilities are included in net debt. Quarterly data Group 2000 1999 SEK M II I IV III II I Net sales 16,351 15,992 15,662 16,603 16,389 16,242 Operating surplus 2,903 2,869 3,053 2,783 2,627 2,533 Depreciation according to -952 -974 -998 -931 -961 -949 plan, properties and plant Depreciation according to -172 -172 -188 -147 -132 -135 plan, goodwill Share in earnings of Modo 306 218 136 - - - Paper AB¹ Share in earnings of other 8 10 21 5 11 5 associated companies Operating profit 2,093 1,951 2,024 1,710 1,545 1,454 Financial items -320 -281 -313 -315 -258 -326 Earnings after financial 1,773 1,670 1,711 1,395 1,287 1,128 items Income taxes -587 -549 -555 -497 -425 -372 Minority interest -16 -12 -24 -15 -21 -10 Net earnings after tax 1,170 1,109 1,132 883 841 746 Earnings per share, SEK 5.05 4.79 5.10 4.19 4.01 3.55 Earnings per share, excluding 5.79 5.53 5.94 4.89 4.63 4.20 goodwill amortization, SEK ¹ As of 1 October 1999, Modo Paper AB is included as a share in earnings. For earlier periods, SCA's original fine paper operations are included in net sales, operating expenses, etc. Quarterly data Business Areas Net sales 2000 1999 SEK M II I IV III II I Hygiene Products 7,499 7,402 7,275 6,764 6,679 6,609 Packaging 6,015 5,776 5,587 4,862 4,664 4,745 Forest Products 3,177 3,095 3,087 2,892 2,812 2,741 Fine paper, paper - - - 2,558 2,616 2,621 merchanting¹ Other operations 347 382 383 440 487 375 Intra-Group deliveries -687 -663 -670 -913 -869 -849 Total net sales 16,351 15,992 15,662 16,603 16,389 16,242 See also additional information on page 17 Operating surplus 2000 1999 SEK M II I IV III II I Hygiene Products 1,001 1,036 1,117 948 907 905 Packaging 982 1,002 1,075 823 793 699 Forest Products 950 869 896 797 742 709 Fine paper, paper - - - 228 236 222 merchanting¹ Other operations -30 -38 -35 -13 -51 -2 Total operating surplus 2,903 2,869 3,053 2,783 2,627 2,533 See also additional information on page 17 ¹ As of 1 October 1999, Modo Paper AB is included as a share in earnings. For earlier periods, SCA's original fine paper operations are included in net sales, operating expenses, etc. Quarterly data Business Area Operating profit 2000 1999 SEK M II I IV III II I Hygiene Products 631 673 747 649 602 615 Packaging 671 665 737 550 505 424 Forest Products 686 607 625 552 488 458 Fine paper, paper 306 218 136 125 122 108 merchanting¹ Other operations -29 -40 -33 -19 -40 -16 Operating profit before goodwill amortization 2,265 2,123 2,212 1,857 1,677 1,589 2 Goodwill amortization -172 -172 -188 -147 -132 -135 Total operating profit 2,093 1,951 2,024 1,710 1,545 1,454 See also additional information on page 17 1 Pertains to share in earnings of Modo Paper AB as of the fourth quarter 1999, but refers to operating profit for earlier periods. 2 Goodwill amortization: Hygiene Products 43 46 45 27 19 19 Packaging 51 47 63 40 31 37 Fine paper, paper merchanting - - - 1 1 0 Common 78 79 80 79 81 79 Group 172 172 188 147 132 135 Quarterly data Business Areas Operating surplus margins 2000 1999 Percent II I IV III II I Hygiene Products 13 14 15 14 14 14 Packaging 16 17 19 17 17 15 Forest Products 30 28 29 28 26 26 Fine paper, paper merchanting¹ n a n a n a 9 9 8 See also additional information on page 18 Operating margins excluding goodwill amortization 2000 1999 Percent II I IV III II I Hygiene Products 8 9 10 10 9 9 Packaging 11 12 13 11 11 9 Forest Products 22 20 20 19 17 17 Fine paper, paper n a n a n a 5 5 4 merchanting¹ See also additional information on page 18 1 As of 1 October 1999, Modo Paper AB is included as a share in earnings. Accordingly, margins are not reported after this date. Quarterly data Group 2 Margins 2000 1999 Percent II I IV III II I Operating surplus margin 17.8 17.9 19.5 16.8 16.0 15.6 Operating margin, excluding goodwill 13.9 13.3 14.1 11.2 10.2 9.8 amortization Operating margin 12.8 12.2 12.9 10.3 9.4 9.0 Financial net margin -1.9 -1.8 -2.0 -1.9 -1.6 -2.0 Profit margin 10.9 10.4 10.9 8.4 7.8 7.0 2 Since fine paper and paper merchanting are reported as a share in earnings of Modo Paper AB as of 1 October 1999, the margin figures are not fully comparable over time. Five-year summary Full year 1999 1998 1997 1996 1995 Earnings after financial items, SEK M 5,521 5,169 4,457 3,573 5,731 Earnings per share after tax, SEK 16.85 16.11 13.20 10.11 16.57 Earnings per share after tax, excluding 19.66 18.06 14.97 11.50 18.01 goodwill amortization, SEK Debt/equity ratio, times 0.69 0.83 0.85 0.79 0.80 Return on capital employed, % 12 13 12 10 16 Return on shareholders' equity, % 12 13 12 10 17 Additional information - Business Areas Net sales 1 January - 30 June SEK M 2000 1999 Hygiene Products 14,901 13,288 Consumer products 8,883 7,549 AFH and incontinence products 6,018 5,739 Forest Products 6,272 5,553 Pulp, timber and solid wood products 2,821 2,372 Publication paper 3,451 3,181 Operating profit 1 January - 30 June SEK M 2000 1999 Hygiene Products 1,304 1,217 Consumer products 578 468 AFH and incontinence products 726 749 Forest Products 1,293 946 Pulp, timber and solid wood products 624 284 Publication paper 669 662 Additional information - Business Areas Quarterly data Net sales 2000 1999 SEK M II I IV III II I Hygiene Products 7,499 7,402 7,275 6,764 6,679 6,609 Consumer products 4,440 4,443 4,284 3,894 3,774 3,775 AFH and incontinence products 3,059 2,959 2,991 2,870 2,905 2,834 Forest Products 3,177 3,095 3,087 2,892 2,812 2,741 Pulp, timber and solid wood 1,410 1,411 1,304 1,272 1,187 1,185 products Publication paper 1,767 1,684 1,783 1,620 1,625 1,556 Operating surplus 2000 1999 SEK M II I IV III II I Hygiene Products 1,001 1,036 1,117 948 907 905 Consumer products 536 571 624 449 406 424 AFH and incontinence products 465 465 493 499 501 481 Forest Products 950 869 896 797 742 709 Pulp, timber and solid wood products 444 353 377 328 227 211 Publication paper 506 516 519 469 515 498 Operating profit 2000 1999 SEK M II I IV III II I Hygiene Products 631 673 747 649 602 615 Consumer products 267 311 380 260 218 250 AFH and incontinence products 364 362 367 389 384 365 Forest Products 686 607 625 552 488 458 Pulp, timber and solid wood products 355 269 278 255 141 143 Publication paper 331 338 347 297 347 315 Additional information - Business Areas Quarterly data Operating surplus margins 2000 1999 Percent II I IV III II I Hygiene Products 13 14 15 14 14 14 Consumer products 12 13 15 12 11 11 AFH and incontinence products 15 16 17 17 17 17 Forest Products 30 28 29 28 26 26 Pulp, timber and solid wood products 31 25 29 26 19 18 Publication paper 29 31 29 29 32 32 Operating margins excluding goodwill amortization 2000 1999 Percent II I IV III II I Hygiene Products 8 9 10 10 9 9 Consumer products 6 7 9 7 6 7 AFH and incontinence products 12 12 12 14 13 13 Forest Products 22 20 20 19 17 17 Pulp, timber and solid wood products 25 19 21 20 12 12 Publication paper 19 20 19 18 21 20 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/07/28/20000728BIT00200/bit0001.doc http://www.bit.se/bitonline/2000/07/28/20000728BIT00200/bit0002.pdf