Year-end Report 1 January - 31 December 2000

Year-end Report 1 January - 31 December 2000 00:4 00:3 00:2 00:1 0012 9912 Net sales, SEK M 18,03 16,78 16,35 15,99 67,15 64,89 0 4 1 2 7 6¹ Earnings after financial 2,048 3,836 1,773 1,670 9,327 5,521 items, SEK M - excl. non-recurring 1,805 7,296 items, SEK M Earnings per share, SEK 6.00 15.02 5.05 4.79 30.86 16.85 - excl. non-recurring 5.40 21.24 items, SEK Cash flow from current 9.32 9.21 6.37 3.79 28.69 31.45 operations per share, SEK 2 Dividend, SEK per share 7.75 6.80 1 Including net sales in SCA's former fine paper operations. 2 Board proposal. * Earnings in 2000 and in the fourth quarter were record high. * Company acquisitions and organic growth increased the Group net sales by 12%. The increase for Packaging was 16% and for Hygiene Products 11%. * Operating margins for Hygiene Products and Forest Products improved during the fourth quarter. * The board propose a dividend of SEK 7.75 per share, an increase with 14%. NET SALES AND EARNINGS Consolidated net sales amounted to SEK 67,157 M (64,896), 3% higher than in the preceding year. Adjusted for the influence of fine-paper operations, which were included in the first three quarters of 1999, net sales rose 20% for the Group's other operations. Expansion through company acquisitions and organic growth resulted in a net sales increase of 12%, while the remainder of the increase was attributable to higher selling prices. Changes in exchange rates reduced Group net sales by 2%. Group operating profit amounted to SEK 10,534 M (6,733). Excluding non- recurring items, SEK 2,031 M, operating profit amounted to SEK 8,503 M, an increase of SEK 26% compared with 1999. Currency movements had a marginally negative impact on earnings. Operating profit rose in all business areas. Operating profit for Hygiene Products amounted to SEK 2,909 M (2,613), up 11%, while the corresponding figure for Packaging was SEK 2,977 M (2,216), an increase of 34%, and Forest Products reported operating profit of SEK 2,720 M (2,123), up 28%. Operating profit includes SCA's share of earnings in Modo Paper for the period January-July, amounting to SEK 644 M. Operating profit in 1999 included SEK 491 M relating to SCA's former fine paper operations and the share in earnings of Modo Paper. Operating profit in the fourth quarter also includes gains on a leasing transaction involving the pulp mill at Östrand of about SEK 140 M. The amount was reported among finance operations. Financial items amounted to an expense of SEK 1,207 M (expense: 1,212). Higher interest rates offset the effect of a lower average net debt. Group earnings after financial items amounted to SEK 9,327 M (5,521). Excluding non-recurring items, earnings after financial items totaled 7,296, up 32% compared with 1999. Net earnings after taxes amounted to SEK 7,148 M (3,602), corresponding to earnings per share after full tax and dilution of SEK 30.86 (16.85). Net earnings after tax, excluding non-recurring items, rose 37% to SEK 4,917 M, which corresponds to earnings per share after full tax and dilution of 21.24, representing an improvement of 26%. The corresponding earnings per share, excluding goodwill amortization, was SEK 24.38 (19.66). Net earnings after tax, including non-recurring items, was SEK 7,148 M, equal to earnings per share, after full tax and dilution, of SEK 30.86. Return on shareholders' equity was 20% (12), while return on capital employed was 18% (12). Excluding non-recurring items, the return on shareholders' equity was 14% (12), while the return on capital employed was 15% (12). Comparison with the third quarter As a result of improvements in operating profit for Hygiene Products, 17%, Packaging, 9% and Forest Products, 6%, consolidated operating profit, excluding non-recurring items, rose 10% to SEK 2,334 M. The earnings improvements in Hygiene Products and Packaging was due mainly to previously implemented price hikes gaining full effect while the earnings increase for Forest Products was attributable primarily to higher deliveries during the quarter. Earnings after financial items rose 13% and amounted to SEK 2,048 M (1,805), which, excluding non-recurring items, represented the highest quarterly earnings to date. CASH FLOW The operating cash surplus amounted to SEK 12,383 M (11,101), corresponding to 18% (17) of net sales. Operating cash flow amounted to SEK 9,005 M (8,707). Working capital increased by SEK 1,109 M (226) during the year. The trend in working capital during the year was affected by the exceptionally low level of tied-up working capital at the preceding year-end, when it amounted to 10.3% of net sales. Tied-up working capital at the end of the quarter amounted to 11,3%. Current net capital expenditures amounted to SEK 2,245 M (2,046) Cash flow from current operations, that is, before strategic investments and dividends, amounted to SEK 6,652 M (6,740), equal to SEK 28.68 (31.45) per share. Company acquisitions during the period totaled SEK 2,349 M, and were primarily attributable to the acquisition of Metsä Corrugated and Johnson & Johnson's North American incontinence products operations. Divestments, including SCA's interest in Modo Paper, generated SEK 7,758 M. Strategic investments in plant and machinery and restructuring costs amounted to SEK 1,452 M and primarily involved expansion expenditures in hygiene operations. This resulted in a net inflow from strategic investments, company acquisitions and divestments of SEK 3,957 M compared with an outflow of SEK 10,500 M a year earlier. SEK M 0012 9912 Net sales 67,157 64,896 Operating cash surplus 12,383 11,101 % of net sales 18 17 Current capital expenditures, -2,245 -2,046 net % of net sales 3 3 Changes in working capital -1,109 -226 Other operating cash flow -24 -122 changes Operating cash flow 9,005 8,707 1 Tax payment etc -1,391 -1,351 Free cash flow 7,614 7,356 Per share, SEK 32.83 34.33 Interest payment after taxes -962 -616 Cash flow from current 6,652 6,740 operations Per share, SEK 28.68 31.45 Strategic investments and 3,957 -10,500 divestments Cash flow before dividend 10,609 -3,760 1 Tax attributable to operating profit. FINANCING Net debt at the year-end amounted to SEK 15,880 M, which was SEK 8,193 M lower than at the beginning of the year. The change reflects the net of cash flow from current operations amounting to SEK 6,652 M, net inflow for strategic investments and divestments, etc., totaling SEK 3,957 M, dividends of SEK 1,585 M and negative effects of currency movements etc., amounting to SEK 831 M. The weakening of the Swedish krona increased equity by approximately SEK 800 M. The debt/equity ratio amounted to 0.39 (0.69). The interest coverage multiple was 7.0 (5.6), excluding the effect of non-recurring items. HYGIENE PRODUCTS BUSINESS AREA Net sales amounted to SEK 31,040 M (27,327), an increase of 14% compared with a year-earlier. Acquired companies and organic growth increased net sales by 11%. Selling prices and improved product mix increased net sales 5%, while currency movements affected it adversely by 2%. Operating profit rose 11% to SEK 2,909 M (2,613). The improvement was primarily attributable to company acquisitions and expansion in non-European markets. Implemented price increases, productivity increases and volume growth offset sharp increases in raw material and energy prices during the year as well as increased depreciation as a result of expansion investments. In the fourth quarter, operating profit was SEK 865 M, an increase of 17% compared with the third, while at the same time the margin improved. This was due to the full effect of price hikes earlier in the year. Consumer Products Earnings from Consumer Products increased 26% to SEK 1,394 M (1,108). The rise is primarily attributable to acquisitions, as well as from efficiency-enhancement gains and organic growth in the fluff area. Compared with the third quarter, earnings during the fourth quarter increased from SEK 361 M to SEK 455 M, up 26%, mainly as a result of the effect of the price rises and certain cost reductions. The operating margin rose from 8% to 9%. AFH and incontinence products Operating profit for AFH and incontinence products was at the year-earlier level, amounting to SEK 1,515 M (1,505). The volume trend was favorable for incontinence operations, while tissue volumes were largely unchanged. Operating profit for the fourth quarter amounted to SEK 410 M (379), 8% higher compared with the third quarter due to higher sales volumes. SEK M 00:4 00:3 00:2 00:1 0012 9912 Net sales 8,29 7,84 7,49 7,40 31,04 27,32 1 8 9 2 0 7 Operating surplus 1,28 1,13 1,00 1,03 4,451 3,877 3 1 1 6 Operating profit 865 740 631 673 2,909 2,613 Operating surplus 15 14 13 14 14 14 margin, % Operating margin, % 10 9 8 9 9 10 Volume growth, % 2 2 Consumer products 1.0¹ 0.7¹ 0.2¹ 4.3¹ 11.1 8.0 2 2 AFH and Incontinence 2.7¹ 1.5¹ 4.1¹ 1.6¹ 6.9 8.0 products ¹ Compared with the immediately preceding quarter. 2 Compared with corresponding period previous year. See also additional information on page 17-19. PACKAGING BUSINESS AREA Net sales for the period amounted to SEK 24,636 M (19,858), an increase of 24%. The increase was attributable to company acquisitions, 16%, and increased sales prices, 11%, while currency movements reduced sales by 3%. Operating profit amounted to SEK 2,977 M (2,216), an improvement of 34%. The increase resulted from higher sales prices and company acquisitions. During the year, raw material and energy costs increased substantially which limited the earnings improvement. The business area's external net sales of liner products amounted to about 200,000 tons during the year. Sales in the fourth quarter increased significantly due to the acquisition of Metsä Corrugated which was only consolidated for one month of the third quarter. Compared with the third quarter, earnings during the fourth quarter rose 9% to SEK 854 M (787), mainly due to the effect of earlier price hikes in the corrugated board area. The earnings improvement was limited by continued rising costs of energy and transports. Margins were unchanged. Corrugated board packaging Market growth in Europe amounted to 3.4% during 2000. The large markets, Germany, France, Italy and Spain, grew by 5-6%, while corrugated board demand in the UK fell by nearly 3%. Price rises for corrugated board were implemented gradually during the year. Prices stabilized during the fourth quarter. Containerboard After a year of good volume growth and rising prices, the market stabilized in the fourth quarter. Raw material costs, primarily for recycled fiber, have increased significantly. This also applies to energy prices, which continued to rise at the end of the year. In order to balance the inventory situation, downtime was taken during the second half of the year. SEK M 00:4 00:3 00:2 00:1 0012 9912 Net sales 6,752 6,093 6,015 5,776 24,63 19,85 6 8 Operating surplus 1,197 1,067 982 1,002 4,248 3,390 Operating profit 854 787 671 665 2,977 2,216 Operating surplus 18 18 16 17 17 17 margin, % Operating margin, % 13 13 11 12 12 11 Production Liner products, kton 612 615 631 647 2,505 2,267 Deliveries Liner products, kton 601 604 620 647 2,472 2,300 Corrugated board, 992 903 967 920 3,782 3,396 2 Mm FOREST PRODUCTS BUSINESS AREA Net sales by the business area amounted to SEK 12,876 M (11,532), an increase of 12%. Operating profit amounted to SEK 2,720 M (2,123), up 28%. Earnings improved for pulp and LWC but declined somewhat for SC paper. Formation of the Scaninge forestry and sawmill company, to which SCA contributed the sawmill in Lugnvik and about 8% of its existing forest holdings, resulted in a reduction in SCA's net debt of SEK 916 M. Since Scaninge is reported as an associated company, interest charges of SEK 28 M have reduced operating profit for the business area during the second half of the year. Earnings for the fourth quarter rose 6% compared with the third quarter and totaled SEK 734 M (693). The earnings improvement was generated by the publications paper operations and was due to higher delivery volumes during the quarter. Publication papers Operating profit from publication paper operations amounted to SEK 1,348 M (1,306), up 3%. Higher delivery volumes and sales prices for LWC offset higher costs of pulp and recycled fiber as well as increased energy prices. The earnings improvement during the fourth quarter was due to very high delivery volumes. The publication paper market is strong and prices were increased at year-end for SC and newsprint. Pulp, timber and solid wood products The operating profit totaled SEK 1,372 M (817), and was thus nearly 70% higher than in the preceding year. Most of the improvement is attributable to better earnings in pulp operations. Operating profit in forestry operations was somewhat lower than in the preceding year, while earnings for sawmill operations improved. The earnings decline of SEK 30 M during the fourth quarter compared with the third is due to lower earnings in the forest operations due to extraordinary costs caused by the difficult weather conditions in the autumn. SEK M 00:4 00:3 00:2 00:1 0012 9912 Net sales 3,376 3,228 3,177 3,095 12,87611,532 Operating surplus 997 942 950 869 3,758 3,144 Operating profit 734 693 686 607 2,720 2,123 Operating surplus 30 29 30 28 29 27 margin, % Operating margin, % 22 21 22 20 21 18 Production Publication paper, 325 323 319 319 1,286 1,222 kton Solid wood products, 147 150 187 170 654 681 3 km Deliveries Publication paper, 343 310 329 311 1,293 1,226 kton Solid wood products, 160 125 178 184 647 670 3 km See also additional information on page 17-19. PERSONNEL The number of SCA Group employees at year-end was 34,953 (34,137). MARKET OUTLOOK The market situation is expected to remain favorable in the early part of 2001, with favorable demand for the Group's products although a weakening in volume is expected compared with the fourth quarter. Currently, the price situation for Packaging and Hygiene Products is stable, while increases in the costs of raw materials have leveled out. In contrast, the cost of energy and transport is expected to rise during the first quarter. Pulp prices are currently stable, but could be corrected downward during the first half of the year. However, increased competition is being noted in the Hygiene Products and Packaging areas, among other factors, in anticipation of the risk of a general economic slowdown. The publication papers market remains strong, which resulted in price increases for SC and newsprint in the beginning of the year. OTHER Divestment of the interest in Modo Paper during the third quarter resulted in a capital gain of SEK 2,656 M. A provision of SEK 625 M for restructuring measures in the tissue area was allocated in the same quarter. The combined effect of these items, SEK 2,301 M, comprises non- recurring items. The closing of the books is preliminary and has not been the object of a final examination by the company's auditors. At the Board meeting to be held on 22 February, where the year-end report will be presented, the provision for restructuring measures of SEK 625 M, which was posted in the third quarter, will be finally specified. At the time of this meeting, the EU Commission's decision regarding the Metsä Tissue transaction will also be available. In January, an agreement was reached with Georgia-Pacific covering acquisition of parts of the company's American tissue operations. In addition, SCA has tendered a bid for the shares in the American packaging company Tuscarora. These transactions were described in a press release distributed on 22 January 2001. ANNUAL GENERAL MEETING The Annual General Meeting will be held on 6 April, at 2:00 p.m. at Cirkus in Stockholm. The proposed record date to receive dividends is 11 April. Payment through VPC is expected to take place on 18 April. The interim reports for 2001 will be distributed on 27 April, 27 July and 30 October. The annual report for 2000 is expected to be distributed in mid-March 2001. NOMINATING COMMITTEE The Nominating Committee, whose task is to present proposals regarding the composition of SCA's Board of Directors, includes Bo Rydin, SCA Board Chairman, Bo Damberg, Handelsbanken Foundations, Thomas Halvorsen, Fjärde AP-fonden, Björn Lind, SEB Funds, and Peter Rudman, Nordbanken Funds. SHARE DISTRIBUTION 00-12-31 Series A Series B Total Registered number of 61,626,133 168,775,422230,401,55 shares 5 Unconverted debenture - 1,169,908 1,169,908 loans Outstanding warrants - 1,741,206 1,741,206 Total after full 61,626,133 171,686,536233,312,66 conversion 9 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 0.6%, which was taken into account when calculating earnings per share for the period. Stockholm, 30 January, 2001 SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ) Sverker Martin-Löf President and CEO A press conference will be held in Stockholm toady at 14:00 CET at Biblioteksgatan 29 Konferenser AB. A telephone conference will be held today at 16.00 CET (10.00 EST). Instructions for participating in the telephone conference: 1. Dial +46-8-598 001 60 at least ten minutes before the conference call starts. 2. Please note that you do not need a personal code, but be prepared to state your name. 3. Wait until the conference call starts. If you are unable to participate in the conference call, a replay will be available at +46 8 598 090 00, enter the phone meeting number 598 001 60 and the message pin 010130. Copies of the Year-end 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 December 2000 1999 SEK M EUR M SEK M EUR M Net sales 67,157 7,960 64,896 7,371 Operating expenses - -6,485 - -6,122 54,714 53,900 Non-recurring items 2,031 241 Operating surplus 14,474 1,716 10,996 1,249 Depreciation according to plan, -3,923 -465 -3,839 -436 properties and plant Depreciation according to -729 -86 -602 -68 plan, goodwill Share in earnings of Modo 644 76 136 16 Paper AB¹ Share in earnings of other 68 8 42 4 associated companies Operating profit 10,534 1,249 6,733 765 Financial items -1,207 -143 -1,212 -138 Earnings after financial 9,327 1,106 5,521 627 items Income taxes -2,133 -253 -1,849 -210 Minority interest -46 -6 -70 -8 Net earnings after tax 7,148 847 3,602 409 Operating margin 16% 10% - excl. non-recurring items 13% Return on shareholders equity 20% 12% - excl. non-recurring items 14% Return on capital employed 18% 12% - excl. non-recurring items 15% 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 December SEK M 2000 1999 Hygiene Products 31,040 27,327 Packaging 24,636 19,858 Forest Products 12,876 11,532 1 Fine paper, paper merchanting - 7,795 Other operations 1,484 1,685 Intra-Group deliveries -2,879 -3,301 Total net sales 67,157 64,896 See also additional information on page 14 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 December SEK M 2000 1999 Hygiene Products 2,909 2,613 Packaging 2,977 2,216 Forest Products 2,720 2,123 2 Fine paper, paper merchanting 644 491 Other operations -18 -108 Operating profit, before goodwill amortization and excl. non- 9,232 7,335 recurring items 3 Goodwill amortization -729 -602 Total operating profit, excl. non-recurring items 8,503 6,733 Non-recurring items 2,031 - Operating profit 10,534 6,733 Financial items -1,207 -1,212 Earnings after financial items 9,327 5,521 Earnings after financial items, excl. non-recurring items 7,296 5,521 See also additional information on page 15. 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 189 110 Packaging 223 171 Fine paper, paper merchanting - 2 Common 317 319 Group 729 602 Balance sheet 2000-12-31 1999-12-31 SEK M EUR M SEK M EUR M Assets Tangible assets 44,587 5,041 44,571 5,215 Goodwill 11,218 1,269 10,431 1,220 Other intangible assets 1,160 131 904 106 Long-term receivables 371 42 102 12 Shares and participations 1,920 217 5,057 592 Receivables and inventories 21,065 2,381 18,312 2,143 Financial receivables and 2,266 256 4,207 492 investments Cash and bank balances 1,440 163 1,630 191 Total assets 84,027 9,500 85,214 9,971 Equity, provisions and liabilities Shareholders' equity 40,457 4,574 34,133 3,994 Minority interests 612 69 587 69 Provisions for pensions 891 101 1,029 120 Other provisions 8,353 944 7,603 890 Interest-bearing debt 18,694 2,114 28,881 3,379 Operating liabilities and other noninterest-bearing debt 15,020 1,698 12,981 1,519 Total equity, provisions and 84,027 9,500 85,214 9,971 liabilities Debt/equity 0.39 times 0.69 times Equity/assets 49 % 41 % Cash flow statement 1 January - 30 September SEK M 2000 1999 2 Operating cash surplus 12,383 11,101 Changes in working capital -1,109 -226 Current capital expenditures, net -2,245 -2,046 Other operating cash flow changes -24 -122 Operating cash flow 9,005 8,707 Financial items -1,207 -1,212 Income taxes paid -993 -951 Other -153 196 Cash flow from current operations 6,652 6,740 Strategic capital expenditures -1,121 -2,615 Strategic structural expenditures -331 -370 Company acquisitions -2,349 -10,400 Divestments 7,758 2,885 Cash flow before dividend 10,609 -3,760 Conversion of convertible debenture 15 loan New issue 4,579 Dividend -1,585 -1,304 1 Net cash flow 9,039 -485 Net debt at beginning of period -24.073 -21.370 Net cash flow 9.039 -485 Pension liabilities -2.573 Currency effects -846 355 Net debt at end of period -15.880 -24.073 Debt payment capacity 45 % 32 % 1 Additional information in accordance with Swedish Financial Accounting Standards Council's recommendation regarding reporting of cash flow: Net cash flow 9,039 -485 Change in interest-bearing debt -9,306 247 Change in cash and bank balances -267 -238 Cash and bank balances at beginning 1,630 1,819 of period Change in cash and bank balances -267 -238 Currency effects on cash and bank 77 49 balances Cash and bank balances at end of 1,440 1,630 period 2 Operating surplus adjusted for significant non-cash items in accordance with the principles being applied by SCA effective at mid-year 1999, excluding for example strategic divestments. Quarterly data Group 2000 1999 SEK M IV III II I IV III II I Net sales 18,0316,7816,3515,99 15,6616,6016,3816.24 0 4 1 2 2 3 9 2 Operating surplus, excl. non-recurring 3,5553,1162,9032,869 3,0532,7832,6272.533 items Depreciation according to plan, - -949 -952 -974 -998 -931 -961 -949 properties and plant 1,048 Depreciation according to plan, goodwill -196 -189 -172 -172 -188 -147 -132 -135 Share in earnings of Modo Paper AB¹ - 120 306 218 136 - - - Share in earnings of other associated 23 27 8 10 21 5 11 5 companies Operating profit, excl. non-recurring 2,3342,1252,0931,951 2,0241,7101,5451,454 items Non-recurring items -2,031 - - - - - - Operating profit 2,3344,1562,0931,951 2,0241,7101,5451,454 Financial items -286 -320 -320 -281 -313 -315 -258 -326 Earnings after 2,0483,8361,7731,670 1,7111,3951,2871,128 financial items Earnings after financial items, 2,0481,8051,7731,670 1,7111,3951,2871,128 excl. non-recurring items Income taxes -648 -349 -587 -549 -555 -497 -425 -372 Minority interest -11 -7 -16 -12 -24 -15 -21 -10 Net earnings after tax1,3893,4801,1701,109 1,132 883 841 746 - excl. non-recurring 1,249 items Earnings per share, 6.0015.02 5.05 4.79 5.10 4.19 4.01 3.55 SEK - excl. non-recurring 5.40 items 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 IV III II I IV III II I Hygiene Products 8,2917,8487,4997,402 7,27 6,76 6,67 6,60 5 4 9 9 Packaging 6,7526,0936,0155,776 5,58 4,86 4,66 4,74 7 2 4 5 Forest Products 3,3763,2283,1773,095 3,08 2,89 2,81 2,74 7 2 2 1 Fine paper, paper - - - - -2,55 2,61 2,62 merchanting¹ 8 6 1 Other operations 365 390 347 382 383 440 487 375 Intra-Group deliveries -754 -775 -687 -663 -670 -913 -869 -849 Total net sales 18,0316,7816,3515,99 15,6 16,6 16,3 16,2 0 4 1 2 62 03 89 42 See also additional information on page 17 Operating surplus 2000 1999 SEK M IV III II I IV III II I Hygiene Products 1,2831,1311,0011,036 1,117 948 907 905 Packaging 1,1971,067 9821,002 1,075 823 793 699 Forest Products 997 942 950 869 896 797 742 709 Fine paper, paper - - - - - 228 236 222 merchanting¹ Other operations 78 -24 -30 -38 -35 -13 -51 -2 Total operating surplus, 3,5553,1162,9032,869 3,0532,7832,6272,533 excl. non-recurring items Non-recurring items -2,031 - - - - - - Total operating surplus 3,5555,1472,9032,869 3,0532,7832,6272,533 See also additional information on page 18 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 Operating profit 2000 1999 SEK M IV III II I IV III II I Hygiene Products 865 740 631 673 747 649 602 615 Packaging 854 787 671 665 737 550 505 424 Forest Products 734 693 686 607 625 552 488 458 Fine paper, paper - 120 306 218 136 125 122 108 merchanting¹ Other operations 77 -26 -29 -40 -33 -19 -40 -16 Operating profit before 2,5302,3142,2652,123 2,21 1,85 1,67 1,58 goodwill amortization 2 7 7 9 Goodwill -196 -189 -172 -172 -188 -147 -132 -135 2 amortization Total operating profit, 2,3342,1252,0931,951 2,02 1,71 1,54 1,45 excl. non-recurring 4 0 5 4 items Non-recurring items 2,031 - - - - - - Total operating profit, 2,3344,1562,0931,951 2,02 1,71 1,54 1,45 incl. non-recurring 4 0 5 4 items See also additional information on page 18 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 51 48 43 46 45 27 19 19 Packaging 63 62 51 47 63 40 31 37 Fine paper, paper - - - - - 1 1 0 merchanting Common 82 78 78 79 80 79 81 79 Group 196 189 172 172 188 147 132 135 Quarterly data Business Areas Operating surplus margins 2000 1999 Percent IV III II I IV III II I Hygiene Products 15 14 13 14 15 14 14 14 Packaging 18 18 16 17 19 17 17 15 Forest Products 30 29 30 28 29 28 26 26 See also additional information on page 19 Operating margins excluding goodwill amortization 2000 1999 Percent IV III II I IV III II I Hygiene Products 10 9 8 9 10 10 9 9 Packaging 13 13 11 12 13 11 11 9 Forest Products 22 21 22 20 20 19 17 17 See also additional information on page 19 Quarterly data Group 1 Margins Excl. non-recurring 2000 1999 items Percent IV III II I IV III II I Operating surplus 19.7 18.6 17.8 17.9 19.5 16.8 16.0 15.6 margin Operating margin, excl. goodwill 14.0 13.8 13.9 13.3 14.1 11.2 10.2 9.8 amortization Operating margin 13.0 12.7 12.8 12.2 12.9 10.3 9.4 9.0 Financial net margin -1.6 -1.9 -1.9 -1.8 -2.0 -1,9 -1.6 -2,0 Profit margin 11.4 10.8 10.9 10.4 10.9 8.4 7.8 7,0 1 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 2 2 2 Full year 2000 1999 1998 1997 1996 Earnings after financial 7,296 5,521 5,169 4,457 3,573 items, SEK M Earnings per share after 30.86 16.85 16.11 13.20 10.11 tax, SEK Earnings per share after tax, excluding goodwill 34.00 19.66 18.06 14.97 11.50 amortization, SEK Debt/equity ratio, times 0.39 0.69 0.83 0.85 0.79 Return on capital employed, 15 12 13 12 10 % Return on shareholders' 14 12 13 12 10 equity, % 2 Adjusted historically to reflect new issue. Additional information Business Areas Net sales 1 January - 30 December SEK M 2000 1999 Hygiene Products 31,040 27,327 Consumer products 18,373 15,727 AFH and Incontinence products 12,667 11,600 Forest Products 12,876 11,532 Publication paper 7,157 6,584 Pulp, timber and solid wood 5,719 4,948 products Operating profit 1 January - 30 September SEK M 2000 1999 Hygiene Products 2,909 2,613 Consumer products 1,394 1,108 AFH and Incontinence products 1,515 1,505 Forest Products 2,720 2,123 Publication paper 1,348 1,306 Pulp, timber and solid wood 1,372 817 products Additional information Business Areas Quarterly data Net sales 2000 1999 SEK M IV III II I IV III II I Hygiene Products 8,29 7,84 7,49 7,40 7,27 6,76 6,67 6,60 1 8 9 2 5 4 9 9 Consumer products 4,82 4,66 4,44 4,44 4,28 3,89 3,77 3,77 8 2 0 3 4 4 4 5 AFH and Incontinence 3,46 3,18 3,05 2,95 2,99 2,87 2,90 2,83 products 3 6 9 9 1 0 5 4 Forest Products 3,37 3,22 3,17 3,09 3,08 2,89 2,81 2,74 6 8 7 5 7 2 2 1 Publication paper 1,97 1,72 1,76 1,68 1,78 1,62 1,62 1,55 7 9 7 4 3 0 5 6 Pulp, timber and solid wood products 1,39 1,49 1,41 1,41 1,30 1,27 1,18 1,18 9 9 0 1 4 2 7 5 Operating surplus 2000 1999 SEK M IV III II I IV III II I Hygiene Products 1,28 1,13 1,00 1,03 1,11 948 907 905 3 1 1 6 7 Consumer products 731 645 536 571 624 449 406 424 AFH and Incontinence 552 486 465 465 493 499 501 481 products Forest Products 997 942 950 869 896 797 742 709 Publication paper 560 480 506 516 519 469 515 498 Pulp, timber and solid wood products 437 462 444 353 377 328 227 211 Operating profit 2000 1999 SEK M IV III II I IV III II I Hygiene Products 865 740 631 673 747 649 602 615 Consumer products 455 361 267 311 380 260 218 250 AFH and Incontinence 410 379 364 362 367 389 384 365 products Forest Products 734 693 686 607 625 552 488 458 Publication paper 375 304 331 338 347 297 347 315 Pulp, timber and solid wood products 359 389 355 269 278 255 141 143 Additional information Business Areas Quarterly data Operating surplus margins 2000 1999 Percent IV III II I IV III II I Hygiene Products 15 14 13 14 15 14 14 14 Consumer products 15 14 12 13 15 12 11 11 AFH and Incontinence 16 15 15 16 17 17 17 17 products Forest Products 30 29 30 28 29 28 26 26 Publication paper 28 28 29 31 29 29 32 32 Pulp, timber and solid 31 31 31 25 29 26 19 18 wood products Operating margins excluding goodwill amortization 2000 1999 Percent IV III II I IV III II I Hygiene Products 10 9 8 9 10 10 9 9 Consumer products 9 8 6 7 9 7 6 7 AFH and Incontinence 12 12 12 12 12 14 13 13 products Forest Products 22 21 22 20 20 19 17 17 Publication paper 19 18 19 20 19 18 21 20 Pulp, timber and solid 26 26 25 19 21 20 12 12 wood products ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/01/30/20010130BIT00530/bit0001.doc http://www.bit.se/bitonline/2001/01/30/20010130BIT00530/bit0002.pdf