Svenska Cellulosa : 2020 Q1 Interim report

Q12020

January-March 2020 compared with January-March 2019

• Net sales declined 6% to SEK 4,793m (5,076). The decrease was mainly related to lower selling prices, which were offset by higher delivery volumes from the expanded pulp mill.
• EBITDA decreased to SEK 1,030m (1,560), which was mainly related to lower selling prices
• EBITDA margin amounted to 21.5% (30.7)
• Operating cash flow declined to SEK 341m (626)
• Earnings per share was SEK 0.69 (1.29)

January-March 2020 compared with October-December 20191

• Net sales increased 11% to SEK 4,793m (4,312), mainly related to higher delivery volumes, offset by lower selling prices
• EBITDA amounted to SEK 1,030m (1,0551), corresponding to an EBITDA margin of 21.5% (24.51). Lower selling prices were offset by higher delivery volumes and lower costs for maintenance stops.

		Quarter
SEKm	2020:1	2019:1	%	2019:41	%
Net sales	4,793	5,076	-6	4,312	11
EBITDA	1,030	1,560	-34	1,055	-2
EBITDA margin	21.5	30.7		24.5
Operating profit	628	1,168	-46	637	-1
Net Profit	483	908	-47	478	1
Earnings per share SEK	0.69	1.29		0.68
Operating cash flow	341	626		583
Net Debt / EBITDA (LTM)	1.9x	1.6x		1.6x

1Excluding the effect of changed accounting method for valuation of forest assets in Q4 2019

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

2

COMMENTS ON THE FINANCIAL STATEMENTS

Earnings for the first quarter of 2020 were in line with the preceding quarter, but declined year on year. Lower selling prices were offset by higher delivery volumes for all product areas compared with the preceding quarter.

We are in the midst of a pandemic, the consequences of which are difficult to predict, but our highest priority is the health and safety of our employees and society. SCA also has a responsibility to deliver important input goods to, among others, hygiene products and packaging for food and medicines.

The impact on production, deliveries and demand for SCA's products as a result of the coronavirus has so far been limited. SCA has taken a number of actions to protect risk groups, reduce the spread of the virus and to maintain production and operations. SCA has a solid financial position and strong liquidity (see page 6).

The supply of wood to SCA's industries was stable. Wood consumption increased during the quarter due to higher delivery volumes in all business areas. The price of pulpwood and sawlogs declined slightly compared with the preceding quarter.

The consumption of solid-wood products remained stable during the period and SCA's deliveries increased compared with the preceding quarter. However, market prices decreased slightly.

The pulp market improved during the quarter, driven by an increased demand for tissue and hygiene products, SCA's prioritized market segments in pulp. A price increase was implemented at the end of the quarter, the average selling price however remained lower than the preceding quarter.

Demand for kraftliner improved and European inventory levels continued to decline. SCA implemented a price increase for brown kraftliner from the end of the quarter, though the average selling price remained lower than the preceding quarter. For publication paper, demand and market prices declined.

Higher growth enables increased harvesting

SCA performed a new forest survey in 2019 that showed a greater standing volume and higher growth than previously calculated. The annual net growth amounts to approximately 10.5 million m3fo, 1 million m3fo higher than the estimate in the previous survey. Higher growth gives greater long-term harvesting potential and means a further increase in the contribution made by SCA's forests to reduce the adverse effects of climate change.

Based on the new forest survey, a new harvesting calculation is being conducted and a preliminary assessment indicates that annual harvesting can gradually increase from about 4.3 million m3sub in 2020 to 5.4 million m3sub in 2025 (see page 5).

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

At March 31, 2020, gross debt amounted to SEK 10,614m with an average maturity of approximately 4.5 years (including the lease liability). The loan structure consists ofshort-termcommercial paper as well as bonds and bilateral bank loans. The lease liability amounted to

SEK 835m, a decrease by SEK 19m compared with the preceding quarter. Unutilized credit facilities amounted to SEK 5,000m and mature in 2024. Cash and cash equivalents amounted to SEK 867m at the end of the period, an increase by SEK 413m during the quarter. In theJanuary-March2020 period, financial items totaled SEK-24mcompared with SEK-30min theyear-earlierperiod and compared with SEK-25min the preceding quarter.

1Excluding changed accounting method for the valuation of forest assets.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1,SE-85188 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No.556012-6293

Net sales increased 11%, of which price/mix accounted for-4%,volume for 16%, currency

for-1%and acquisitions/divestments for 0%, and amounted to SEK 4,793m (4,312). Growth was mainly attributable to higher sales volumes due to maintenance stops in the comparative period.

EBITDA amounted to SEK 1,030m (1,0551), corresponding to an EBITDA margin of 21.5% (24.51). Lower selling prices were offset by higher delivery volumes, lower costs for planned maintenance stops of SEK 0m (185), lower costs for unscheduled maintenance stops at the Östrand pulp mill and a fire at the Ortviken paper mill of SEK 0m (70), and lower raw material costs. The decrease was also related to a positiveone-offitem of SEK 0m (115) from forest land transactions, which increased earnings in the fourth quarter of 2019.

Operating profit amounted to SEK 628m (6371).

CASH FLOW

January-March2020 compared withJanuary-March2019

The operating cash surplus amounted to SEK 690m (1,314). The cash flow effect of changes in working capital was SEK-146m(-353).Current capital expenditures, net, totaled

SEK-175m(-168).Operating cash flow decreased to SEK 341m (626). See page 21.

Strategic capital expenditures totaled SEK-189m(-143).The cash flow effect of acquisitions amounted to SEK 0m(-158,pertaining to the acquisition of shares in Groupe ISB). Cash flow for the period was SEK 406m(-172).See page 17.

FINANCING

At March 31, 2020, net debt totaled SEK 9,087m, an increase during the quarter of SEK 490m. The increase in net debt was mainly due to the revaluation of pension assets. Net debt in relation to EBITDA amounted to 1.9x (1.6x in the preceding quarter1).

Operating profit decreased to SEK 628m (1,168).

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

3

Net sales

SEKm

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2019:1 2019:2 2019:3 2019:4 2020:1

GROUP

SALES AND OPERATING PROFIT

January-March 2020 compared with January-March 2019

Net sales amounted to SEK 4,793m (5,076), a decrease of 6%, of which price/mix accounted for -16%, volume for 11%, currency for 2% and acquisitions/divestments for -3%. The decrease was mainly related to lower selling prices in all business areas, offset by higher delivery volumes from the expanded pulp mill in Östrand. The merger with Groupe ISB, within Wood, had a negative effect on net sales since the merged company is not consolidated in SCA.

EBITDA & margin

SEKm
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2019:1	2019:2	2019:3	2019:4	2020:1

EBITDA decreased 34% to SEK 1,030m (1,560), which corresponds to an EBITDA margin of

• 21.5% (30.7). The decrease was mainly attributable to lower selling prices, which was somewhat

45offset by higher delivery volumes in Pulp and Kraftliner, lower raw material costs and positive

1. exchange rate effects. The decline was also attributable toone-off items in SCA Wood France

1. totaling SEK 0m (90), which increased earnings during the first quarter of 2019.

30

25The cost of planned maintenance stops amounted to SEK 0m (0).

20

15

10

5

0January-March 2020 compared with October-December 2019

Note: EBITDA 2019:4 excluding the impact of the changed accounting method for the valuation of forest assets

Change in net sales (%)

	2020:1	2020:1
	vs	vs
	2019:1	2019:4
Total	-6	11
Price/mix	-16	-4
Volume	11	16
Currency	2	-1
Acquistion and
divestment	-3	0

Operating cash flow

SEKm 1,200

1,000

800

600

400

200

0

2019:1 2019:2 2019:3 2019:4 2020:1

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

4

TAX

January-March 2020 compared with January-March 2019

Tax amounted to SEK 121m (230), corresponding to an effective tax rate of 20.1% (20.2).

EQUITY

January-March 2020

Total consolidated equity decreased by SEK 259m during the period to SEK 68,251m at March 31, 2020. Equity decreased due to comprehensive income for the period of SEK -258m and other items of SEK -1m.

CURRENCY EXPOSURE AND CURRENCY HEDGING

About 85% of sales are priced in currencies other than SEK, primarily EUR, USD and GBP. Most purchasing is conducted in SEK, but some purchasing is carried out in foreign currencies.

To reduce the risk of a weaker SEK, all balance sheet items in foreign currency are hedged, as well as major decided and contracted expenses in foreign currency for investments in fixed assets. In addition, a proportion of future net flows in the major currencies are hedged and, in some cases, special order flows.

The company has hedged about 70% of the expected EUR net exposure from sales minus purchases until the end of the third quarter of 2020, as well as approximately 50% for the fourth quarter of 2020 and 25% for the first quarter of 2021, at the average EUR/SEK exchange rate of

1. The company has hedged about 80% of the expected USD net exposure from sales minus purchases until the end of the third quarter of 2020, as well as approximately 60% for the fourth quarter of 2020 and 35% for the first quarter of 2021, at the average USD/SEK exchange rate of

PLANNED MAINTENANCE STOPS

No maintenance stops were carried out in the first quarter of 2020.

The estimated effect of the planned maintenance stops on earnings in 2020, calculated as the total of the direct cost of the maintenance and the effect from lower fixed cost coverage from reduced production during the stops, is shown in the table below.

		Actual
SEKm	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Total
Pulp	0	0	0	138	138
Paper	0	63	0	47	110
Total	0	63	0	185	248
	Actual		Forecast
SEKm	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Total
Pulp	0	0	35	110	145
Paper	0	65	45	0	110
Total	0	65	80	110	255

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

5

INVESTMENTS

SCA invests in Obbola kraftliner mill

SCA announced in September 2019 that the company is building a new paper machine for the production of kraftliner at its Obbola paper mill in Umeå. Production in Obbola will increase from the current 450,000 tonnes of kraftliner to 725,000 tonnes per year to meet an expected increase in demand for renewable packaging.

The total investment will be approximately SEK 7.5bn over a five-year period and will be reported as a strategic investment. The investment will replace necessary reinvestments in Obbola of about SEK 2.5bn. The investment will mainly be financed using operating cash flow, complemented with the Group's normal financing sources.

The new paper machine is being constructed in a new building, in line with the current paper machine. This means the mill will be in full operation during the construction period before switching over from the old machine to the new one ahead of its start-up in 2023. The new mill's ramp-up to full capacity is expected to take three years.

The investment of SEK 7.5bn includes environmental investments of approximately SEK 1bn, which include the reduction in oil consumption of 8,000 cubic meters per year and improve the water treatment capacity. Following the investment, SCA's own industrial processes will be 97% fossil- free.

FOREST SURVEY

Increase in standing volume in new forest survey

SCA performed a new forest survey in 2019. According to the new survey, SCA's standing volume in Sweden is estimated at 249 million m3fo as of December 31, 2019. This compares with the previous survey from 2012-2013 which indicated standing volume of 238 million m3fo at the end of 2019. Of the 11 million m3fo increase, about 6 million m3fo is related to higher than expected growth during the period between surveys (six years) and about 5 million m3fo is related to better data measurement compared with the previous survey.

The annual gross growth in Sweden amounted to approximately 10.5 million m3fo, 1 million m3fo higher than the estimate in the previous survey of about 9.5 million m3fo. Net growth, growth after harvesting and natural losses, amounted to approximately 4.0 million m3fo, compared with the previous estimate for annual net growth of about 3.0 million m3fo.

Together with 3 million m3fo of forest in the Baltic states, SCA's total standing volume amounts to 252 million m3fo.

Higher growth enables increased harvesting

Higher growth gives greater long-term harvesting potential and means an increase in the contribution made by SCA's forests to reducing the adverse effects of climate change. Based on the new forest survey, a new harvesting calculation is being conducted and a preliminary assessment indicates that annual harvesting can gradually increase from about 4.3 million m3sub in 2020 to 5.4 million m3sub in 2025. The ramp up of the annual rate of harvesting is expected to be linear over five years.

The increased growth and harvesting potential is the result of ambitious investments in silviculture and more efficient forest management. In addition, growth is expected to increase further in the long term as the climate becomes warmer. Higher growth also increases SCA's contribution to a fossil- free society. Growing forests bind carbon dioxide at the same time as a higher level of timber production enables more substitution of fossil based products to renewable alternatives. In 2019, SCA contributed a total climate benefit of 10.5 million tonnes of carbon dioxide, which corresponds to the emissions from all passenger cars in Sweden.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

6

CORONAVIRUS PANDEMIC

Health and safety of our employees and society is the highest priority during the coronavirus pandemic. The impact on production, deliveries and demand for SCA's products, where SCA also has a responsibility to deliver important input goods to, among others, hygiene products and packaging for food and medicines, has so far been limited.

SCA has a solid financial position and strong liquidity. In addition, SCA works actively to secure cash flow, monitor inventory levels and secure the supply chain. SCA has also taken a number of actions to protect risk groups, reduce the spread of the virus and to maintain production and operations.

There is significant uncertainty going forward and the coronavirus may have a negative impact on SCA's earnings.

The Forest business area, where most of operations take place in Northern Sweden, has to date been unaffected by the pandemic. The business area is active to ensure the supply of raw material to SCA's industries, where access to harvesting resources is key.

The impact on solid-wood products has been limited up to today, but there is substantial uncertainty moving forward. Delivery volumes to Scandinavia have remained stable, but the market weakened slightly toward the end of the quarter. Demand in Asia is recovering following lower demand in the first quarter of 2020. Demand in southern Europe, the UK and France decreased sharply due to the restrictions imposed, which will impact SCA's wood processing and distribution to the building materials trade in the UK and France. In response to lower demand, sawmills will limit production.

SCA is primarily focused on pulp to tissue and hygiene products - product areas where demand has increased due to the coronavirus. Demand for pulp for specialty paper has also risen while demand for pulp for publication paper has fallen.

Deliveries of kraftliner improved during the quarter and inventory levels declined. The coronavirus has increased demand for packaging paper to e-commerce and food, while demand has fallen for packaging to industrial products.

The ongoing pandemic has created greater uncertainty in the publication paper market and demand has fallen sharply as a result of the decrease in direct mail and advertising. In response to the current uncertain market conditions, the Ortviken paper mill has planned for potential temporary stoppages, which may come at short notice, in the coming quarters. Currently, about 5 weeks of stoppages are planned for the spring and summer.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

7

Share of Net sales

Jan-Mar 2020*

27%

* before elimination of intra-Group sales

Share of EBITDA

Jan-Mar 2020**

41%

• share calculated of total EBITDA excluding central costs

Net sales

SEKm

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

2019:1 2019:2 2019:3 2019:4 2020:1

EBITDA & margin

SEKm				%
650				65
600				60
550				55
500				50
450				45
400				40
350				35
300				30
250				25
200				20
150				15
100				10
50				5
0				0
2019:1	2019:2	2019:3	2019:4	2020:1

FOREST

SCA owns 2.6 million hectares of forest land in Northern Sweden and the Baltic region, an area corresponding to 6% of Sweden's land area. SCA's unique forest holding is a growing resource that provides access to high-quality forest raw materials while absorbing a net of more than 10% of Sweden's fossil CO2emissions.

			Quarter
SEKm		2020:1	2019:1	%	2019:4	%
Net sales	1,833	1,651	11	1,694	8
EBITDA	452	331	37	607	-26
Depreciation	-54	-50	8	-58	-7
Operating profit	398	281	42	549	-28
EBITDA margin, %	24.6	20.0		35.8
Operating margin, %	21.7	17.0		32.4
Return on capital employed, %	2.8	4.1		5.2
Harvesting of own forest, thousand m3sub	751	745	1	1,230	-39
Revaluation of biological assets1	333	232	44	223	49

Management of SCA-owned forest

Forest includes net sales from timber sourced from SCA's own forests, and from timber purchased from other forest owners, which is sold internally to SCA's forest industry operations. The pricing method is based on an average of Forest's externally sourced timber prices.

During the first three months of the year, the volume of timber harvested from SCA-owned forest was 751,000 m3sub. The current planned rate of timber harvest in SCA-owned forest is approximately 4.3 million m3sub per year.2

Revaluation of biological assets

The revaluation of biological assets recognized under the Forest segment is related to the underlying change in value. The revaluation is mainly driven by the annual increase in standing volume (net growth) and the market value of forest land. The non-recurring impact of the changed accounting method for the valuation of forest assets of approximately SEK 16 billion in the fourth quarter of 2019 was recognized in the Other segment.

January-March 2020 compared with January-March 2019

Net sales increased 11% to SEK 1,833m (1,651), mainly related to higher delivery volumes to the expanded pulp mill.

EBITDA improved 37% to SEK 452m (331). The increase is mainly explained by higher earnings from the revaluation of biological assets due to the increased net growth according to the new forest survey and the changed accounting method for the valuation of forest assets.

EBITDA margin increased to 24.6% (20.0), mainly related to higher earnings from the revaluation of biological assets. An increase in externally sourced pulpwood to meet higher demand for wood for the expanded pulp mill had an adverse impact on the EBITDA margin. Externally sourced wood is sold to the industry at cost and thereby contributes to higher net sales, but not to increased profits, resulting in a lower margin.

January-March 2020 compared with October-December 2019

Net sales increased 8% to SEK 1,833m (1,694), primarily attributable to higher delivery volumes.

EBITDA amounted to SEK 452m (607), a decrease of 26%. The decrease was mainly related to seasonally lower harvesting from SCA-owned forest, lower selling prices and a positive one-off item of SEK 0m (115) from forest land transactions, which increased earnings in the fourth quarter of 2019. Higher earnings from the revaluation of biological assets had a positive impact on earnings.1

1. The proportion of timber harvested fromSCA-owned forest relative to deliveries from external suppliers varies between quarters. The expected annual change in value of the biological assets is distributed between the quarters in relation to seasonal variations in harvesting of SCA-owned forest. A higher share of harvesting from SCA-owned forest generally leads to a lower impact from the revaluation of biological assets.
2. According to the previous forest survey from2012-2013. Based on the new forest survey, a new harvesting calculation is being conducted and a preliminary assessment indicates that annual harvesting can gradually increase from about 4.3 million m3sub in 2020 to 5.4 million m3sub in 2025.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

8

Share of Net sales

Jan-Mar 2020*

21%

* before elimination of intra-Group sales

Share of EBITDA

Jan-Mar 2020**

8%

WOOD

SCA is one of Europe's leading suppliers of wood-based products for the wood industry and building materials trade, with an annual production capacity of 2.2 m3of solid-wood products. SCA has five cost-efficient sawmills located close to its forest holdings in Northern Sweden, as well as wood processing and distribution to the building materials trade in Scandinavia, the UK and France.

			Quarter
SEKm		2020:1	2019:1	%	2019:4	%
Net sales	1,436	1,678	-14	1,376	4
EBITDA	95	297	-68	125	-24
Depreciation	-64	-68	-6	-76	-16
Operating profit	31	230	-87	49	-37
EBITDA margin, %	6.6	17.7		9.1
Operating margin, %	2.1	13.7		3.6
Return on capital employed, %	3.5	28.3		6.0
Deliveries, wood products, thousand m3	610	638	-4	578	6

• share calculated of total EBITDA excluding central costs

Net sales

SEKm 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200

0

2019:1 2019:2 2019:3 2019:4 2020:1

EBITDA & margin

SEKm				%
300				18
250				15
200				12
150				9
100				6
50				3
0				0
2019:1	2019:2	2019:3	2019:4	2020:1

January-March 2020 compared with January-March 2019

Net sales declined 14% to SEK 1,436m (1,678). The decrease was mainly related to lower selling prices and the merger with Groupe ISB, which had a negative effect on net sales, since the merged company is not consolidated in SCA.

EBITDA decreased to SEK 95m (297), which was mainly attributable to lower selling prices and one-off items in SCA Wood France totaling SEK 0m (90), which increased earnings during the first quarter of 2019.

January-March 2020 compared with October-December 2019

Net sales increased 4% to SEK 1,436m (1,376). This increase was primarily attributable to higher delivery volumes, which were offset by lower selling prices.

EBITDA amounted to SEK 95m (125), a decrease of 24%. The decrease was primarily attributable to lower selling prices, which were offset by lower raw material costs.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

9

Share of Net sales

Jan-Mar 2020*

18%

* before elimination of intra-Group sales

Share of EBITDA

Jan-Mar 2020**

17%

PULP

SCA produces market pulp at Östrand pulp mill. Östrand is one of the largest and most cost-efficient production lines for softwood kraft pulp in the world. Together with thermomechanical pulp production, Östrand's annual capacity amounts to 1 million tonnes. SCA's pulp has high-strength properties, suitable for tissue and specialty paper.

			Quarter
SEKm		2020:1	2019:1	%	2019:4	%
Net sales	1,188	1,134	5	900	32
EBITDA	186	351	-47	20	830
Depreciation	-131	-129	2	-128	2
Operating profit	55	221	-75	-109	150
EBITDA margin, %	15.6	31.0		2.2
Operating margin, %	4.6	19.5		-12.1
Return on capital employed, %	2.3	12.2		-4.7
Deliveries, pulp, thousand tonnes	226	168	35	167	35

January-March 2020 compared with January-March 2019

• share calculated of total EBITDA excluding central costs

Net sales

SEKm 1,400

1,200

1,000

800

600

400

200

0

2019:1 2019:2 2019:3 2019:4 2020:1

EBITDA & margin

SEKm				%
400				40
300				30
200				20
100				10
0				0
2019:1	2019:2	2019:3	2019:4	2020:1

Net sales rose 5% to SEK 1,188m (1,134). This increase was primarily attributable to higher delivery volumes to the expanded pulp mill, which were offset by lower selling prices.

EBITDA declined 47% to SEK 186m (351), which was mainly attributable to lower selling prices. Higher delivery volumes and favorable exchange rate effects had a positive earnings effect. The cost of planned maintenance stops amounted to SEK 0m (0).

January-March 2020 compared with October-December 2019

Net sales increased 32% to SEK 1,188m (900). The increase was primarily attributable to higher delivery volumes. Maintenance stops had a negative impact on delivery volumes for the comparative period. Lower selling prices had an adverse impact on net sales.

EBITDA improved to SEK 186m (20). The increase was primarily due to lower costs for planned maintenance stops of SEK 0m (138), lower costs for unscheduled maintenance stops of SEK 0m (50), and lower raw material costs. Lower selling prices had a negative impact on earnings.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

S C A I n t e r i m r e p o r t - J a n u a r y 1 - M a r c h 3 1 , 2 0 2 0

1 0

Share of Net sales

Jan-Mar 2020*

34%

* before elimination of intra-Group sales

Share of EBITDA

Jan-Mar 2020**

34%

• share calculated of total EBITDA excluding central costs

Net sales

SEKm 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200

0

2019:1 2019:2 2019:3 2019:4 2020:1

PAPER

SCA produces kraftliner - paper for corrugated transport packaging - and publication paper for magazines, catalogs and commercial print. SCA is Europe's largest independent producer of kraftliner, with a total capacity of 865,000 tonnes per year. Kraftliner is produced at the paper mills in Munksund, Piteå, and in Obbola, Umeå. Publication paper is produced at the Ortviken paper mill in Sundsvall, with a capacity of 775,000 tonnes per year.

				Quarter
SEKm		2020:1	2019:1	%	2019:4	%
Net sales	2,242	2,366	-5	2,108	6
EBITDA	379	616	-38	382	-1
Depreciation	-143	-137	4	-149	-4
Operating profit	236	479	-51	233	1
EBITDA margin, %	16.9	26.0		18.1
Operating margin, %	10.5	20.2		11.1
Return on capital employed, %	14.3	28.7		13.9
Deliveries, kraftliner, thousand tonnes	220	193	14	186	18
Deliveries, publication paper, thousand tonnes	175	174	1	163	7

January-March 2020 compared with January-March 2019

Net sales declined 5% to SEK 2,242m (2,366). Lower selling prices for kraftliner and publication paper had an adverse impact on net sales, which was offset by higher delivery volumes for kraftliner.

EBITDA declined 38% to SEK 379m (616). The decrease was primarily attributable to lower selling prices for kraftliner and publication paper. Higher delivery volumes for kraftliner, lower raw material costs and favorable exchange rate effects had a positive earnings effect. The cost of planned maintenance stops amounted to SEK 0m (0).

January-March 2020 compared with October-December 2019

Net sales rose 6% to SEK 2,242m (2,108). This increase was primarily attributable to higher delivery volumes for kraftliner and publication paper, which were offset by lower selling prices.

EBITDA & margin

SEKm				%
700				35
600				30
500				25
400				20
300				15
200				10
100				5
0				0
2019:1	2019:2	2019:3	2019:4	2020:1

EBITDA amounted to SEK 379m (382), a decrease of 1%. Lower selling prices for kraftliner and publication paper were offset by higher sales volumes for kraftliner and publication paper, lower raw material costs, lower costs for maintenance stops of SEK 0m (47) and favorable exchange rate effects.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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1 1

RENEWABLE ENERGY

SCA's forest assets and industrial operations provide the company with significant potential to develop new business opportunities in the field of renewable energy. Greater value creation from by-products from the forest and industry create opportunities for profitable and sustainable growth.

SCA is now one of Europe's largest producers of forest-based bioenergy, with a total production of about

11.9 TWh per year. In Sweden, SCA has three pellets factories that have an annual production capacity of 300,000 tonnes.

SCA leases out land for wind power production. At the end of the first quarter of 2020, 536 wind turbines were operating on SCA's land with an annual production capacity of 5.0 TWh, equivalent to about 20% of Sweden's total wind power production. Together with previously agreed but not yet completed projects, production on SCA's land is expected to increase to 8.0 TWh by 2022.

The expanded pulp mill in Östrand will produce 1.2 TWh of green electricity, corresponding to almost 1% of Sweden's total electricity production. The mill is self-sufficient in electricity and the surplus of 0.5 TWh is sold on the electricity market.

SCA also develops products for the next-generation of biofuels and green chemicals.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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1 2

SHARE DISTRIBUTION

March 31, 2020	Class A	Class B	Total
Registered number of shares	64,587,672	637,754,817	702,342,489

At the end of the period, the proportion of Class A shares was 9.2%. No change was made to Class A and Class B shares during the first quarter. The total number of votes in the company amounts to 1,283,631,537.

FUTURE REPORTS

• Financial statements for the second quarter will be published on July 21, 2020.
• Financial statements for the third quarter will be published on October 30, 2020.
• Theyear-end report will be published on January 29, 2021.

INVITATION TO PRESS CONFERENCE ON INTERIM REPORT FOR THE FIRST QUARTER OF 2020

The press conference can be followed via webcast or telephone. The President and CEO, Ulf Larsson, and CFO, Toby Lawton, will present the report and answer any questions.

Time:Friday, April 24, 2020 at 10:00 a.m.

The press conference will be webcast live at www.sca.com. It is also possible to participate by telephone by calling:

Sweden:	+46	(0)8 5069 2180
UK:	+44	(0)2071 928000
US:	[phone]

Specify "SCA" or the conference ID: 6461139.

Sundsvall, April 24, 2020

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ)

Ulf Larsson

President and CEO

For further information, please contact

Toby Lawton, CFO, [phone]

Andreas Ewertz, Investor Relations Director, [phone]

Josefine Bonnevier, Investor Relations Director, [phone] (as of May 4)

Please note:

This is information that SCA is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of the contact person set out below, on April 24, 2020 at 08:00 a.m. CEST. The report has not been reviewed by the company's auditors.

Björn Lyngfelt, Vice President, Communications, [phone]

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS

			Quarter
SEKm		2020:1	2019:1 %	2019:4 %

Net sales Other income Change in inventories

Change in value in biological assets Raw materials and consumables Personnel costs

Other external costs

Share of profits of associates

EBITDA

Depreciation

4,793	5,076	-6	4,312	11
511	570	-10	598	-15
-256	196		114
333	232	44	16,265	-98
-1,726	-2,025	-15	-1,574	10
-787	-767	3	-738	7
-1,843	-1,723	7	-1,863	-1
5	1		-16
1,030	1,560	-34	17,098	-94
-402	-392	3	-498	-19

Operating profit		628	1,168	-46	16,600	-96
Financial items		-24	-30		-25
Profit before tax	604	1,138	-47	16,575	-96
Tax	-121	-230		-3,422
Net Profit for the period	483	908	-47	13,153	-96
Earnings per share SEK 1	0.69	1.29		18.73
Earnings attributable to:
Owners of the parent	483	908		13,153
Average no. of shares, millions	702.3	702.3		702.3
Margins (%)
EBITDA margin	21.5	30.7		396.5
Operating margin	13.1	23.0		385.0
Net margin	10.1	17.9		305.0

1There are no dilution effects.

For the Consolidated statement of profit or loss excluding the impact of the changed accounting method for the valuation of forest assets in 2019:4, see Note 8.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEKm

Profit for the period, continuing operations

Other comprehensive income for the period:

Items that may not be reclassified to the income statement

Change of value land assets 1

Revaluation of defined benefit pension plans

Income tax attributable to components of other comprehensive income

Total

Items that have been or may be reclassified subsequently to the income statement

Cash flow hedges Hedge cost

Translation differences in foreign operations

Income tax attributable to components of other comprehensive income

Total

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

Total comprehensive income attributable to:

Owners of the parent

Non-controlling interests

1Effect from change of accounting principal in 2019:4.

Quarter

2020:1	2019:1	2019:4
483	908	13,153
-	-	18,893
-572	35	353
118	-4	-3,966
-454	31	15,280
-445	-204	-24
-7	-	23
72	14	-20
93	42	0
-287	-148	-21
-741	-117	15,259
-258	791	28,412
-258	791	28,412
0	-	0

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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CONDENSED CONSOLIDATED BALANCE SHEET

SEKm

ASSETS

Non-current assets

Goodwill and other intangible assets

Buildings, land, machinery and equipment

Forest assets

whereof land assets whereof biological assets

Right-of-use assets

Other non-current assets

Total non-current assets

Current assets

Inventories

Trade receivables

Other current receivables

Cash and cash equivalents

Total current assets

Total assets

EQUITY AND LIABILITIES

Equity

Owners of the Parent

Share capital

Share premium

Reserves

Retained earnings

Non-controlling interests

Total equity

Non-current liabilities

Non-current financial liabilities

Provisions for pensions

Deferred tax liabilities

Other non-current liabilities & provisions

Total non-current liabilities

Current liabilities

Current financial liabilities

Trade payables

Other current liabilities

Total current liabilities

Total liabilities

Total liabilities and equity

1 5

	Mar 31, 2020		Dec 31, 2019

349211

18,30918,184

70,09769,682

20,19220,170

49,90549,512

819841

1,1131,468

90,68790,386

4,8175,014

2,7672,313

905898

867454

9,3568,679

100,04399,065

2,3502,350

6,8306,830

14,40514,693

44,66644,637

00

68,25168,510

5,8925,888

664522

15,62815,780

199161

22,38322,351

4,0583,730

3,4203,336

1,9311,138

9,4098,204

31,79230,555

100,04399,065

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEKm		Mar 31, 2020	Dec 31, 2019
Attributable to owners of the parent
Opening balance, January 1	68,510	39,062
Total comprehensive income for the period	-258	30,684
Cash flow hedge transferred at cost of hedged investments	-1	-8
Tax on cash flow hedge transferred at cost of hedged investments	0	2
Cash dividend	-	-1,229
Acquisition of non-controlling interests	0	0
Remeasurement effect upon acquisition of non-controlling interests	0	-1
Closing balance	68,251	68,510
Non-controlling interests
Opening balance, January 1	0	-
Total comprehensive income for the period	0	-
Acquisition of non-controlling interests	0	0
Closing balance		0	0
Total equity, closing balance	68,251	68,510

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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CONSOLIDATED CASH FLOW STATEMENT

SEKm

Operating activities

Profit before tax

Adjustment for non-cash items1

Paid tax

Cash flow from operating activities before changes in working capital

Cash flow from changes in working capital

Change in inventories

Change in operating receivables

Change in operating liabilities

Cash flow from operating activities

Investing activities

Acquisitions

Current capital expenditures in non-current assets, net

Strategic capital expenditures in non-current assets

Acquisition of financial asset

Cash flow from investing activities

Financing activities

Loans raised

Amortization of loans, leasing

Dividend

Cash flow from financing activities

Net cash flow for the period

Cash and cash equivalents at the beginning of the period Translation differences in cash and cash equivalents

Cash and cash equivalents at the end of the period

Cash flow from operating activities per share SEK

1Depreciation/amortization and impairment of non-current assets Fair-value measurement of biological assets

Other

Total

1 7

Jan-Mar

2020 2019

6041,138

43-21

-42-5

6051,112

202 -466

-267-306

-80420

460 760

0-158

-158-142

-189-143

0-19

-347-462

336759

-430

• -1,229

293 -470

406 -172

454648

713

1. 489

0.65 1.08

1. 392

-333-232

-26-181

43-21

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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INCOME STATEMENT PARENT COMPANY

SEKm

Other operating income

Other operating expenses

Personnel costs

EBITDA

Depreciation

Operating profit

Result from participations in Group companies

Financial items

Profit before tax

Appropriations and tax

Profit for the period

Jan-Mar

2020	2019
66	64
-43	-44
-27	-23
-4	-3
-22	-22
-26	-25
0	0
4	30
-22	5
250	148
228	153

Other operating income was mainly related to remuneration for the granting of felling rights for the Parent Company's forest assets.

BALANCE SHEET PARENT COMPANY

SEKm		Mar 31, 2020	Dec 31, 2019
Tangible non-current assets	8,636	8,641
Financial non-current assets	9,765	9,681
Total non-current assets	18,401	18,322
Current assets	13,722	12,563
Total assets	32,123	30,885
Restricted equity	11,373	11,373
Non-restricted equity	8,779	8,551
Total equity	20,152	19,924
Provisions	1,591	1,594
Non-current liabilities	5,332	5,236
Current liabilities	5,048	4,131
Total equity, provisions and liabilities	32,123	30,885

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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NOTES

1. ACCOUNTING PRINCIPLES

This interim report has been prepared in accordance with IAS 34 and recommendation RFR 1 of the Swedish Financial Reporting Board, and with regards to the Parent Company, RFR 2. The accounting principles are described in detail in SCA's 2019 Annual Report.

The definition of business acquisitions in IFRS 3 Business acquisitions has been changed. The criteria for classifying an acquisition as a business acquisition is that it must contain at least an input and a substantive process that together obviously make a significant contribute to the ability to create output. The change in IFRS 3 had no impact on SCA's interim report, but may affect future periods if SCA makes acquisitions.

Several amendments and interpretations apply for the first time from 2020, but they are not judged to have any material impact on the Group's interim report.

2. EVENTS AFTER THE END OF THE QUARTER

Financing

A loan of SEK 1,000m was paid in April, which together with cash, was used to reduce outstanding commercial papers. Also in April, a new supplementary credit facility was signed with all banks in the bank group. The facility has a framework of SEK 1,600m and will expire in 12 months, with an extension option of six months. Together with unutilized credit facilities and cash, SCA's liquidity reserve amounted to approximately SEK 7.5 billion.There are no financial covenants on SCAs debt.

3. REVENUE FROM CONTRACTS WITH CUSTOMERS

	Jan-Mar
SEKm	2020		2019
Sweden	599		638
EU excl. Sweden	2,863		3,152
Rest of Europe	317		306
Rest of world	1,014		980
Total Group	4,793		5,076

4. RISKS AND UNCERTAINTIES

SCA's risk exposure and risk management are described on pages 64-68 of the 2019 Annual Report.

The corona pandemic, the outcome and consequences of which are difficult to predict, has increased uncertainty and may impact the company's performance and profitability (see page 6).

5. RELATED PARTY TRANSACTIONS

No transactions took place between SCA and related parties with any material impact on the company's financial position or results.

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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2 0

6. FINANCIAL INSTRUMENTS BY CATEGORY

	Measure-
SEKm	ment level	Mar 31, 2020	Dec 31, 2019
Financial assets measured at fair value in the
income statement
Derivatives - Current financial assets	2	1	3
Derivatives - Other current receivables	2	6	23
Total		7	26
Financial liabilities measured at fair value in the
income statement
Derivatives - Current financial liabilities	2	4	1
Derivatives - Other current financial liabilities	2	90	15
Total		94	16
Financial assets measured at fair value through
other comprehensive income
Equity instruments	3	14	14
Total		14	14
Financial liabilities measured at amortized cost
Non-current financial liabilities excluding leasing	-	5,200	5,190
Non-current financial liabilities, leasing	-	679	698
Current financial liabilities excluding leasing	-	3,897	3,574
Current financial liabilities, leasing	-	156	156
Total		9,932	9,618
Derivatives used for hedge accounting
Non-current financial assets	2	-	0
Other non-current assets	1,2	50	2
Other current receivables	1,2	18	78
Total		68	80
Derivatives used for hedge accounting
Non-current financial liabilities	2	13	-
Other non-current financial liabilities	2	102	54
Other current financial liabilities	2	432	52
Total		547	106

The fair value of trade receivables, other current and non-current receivables, cash and cash equivalents, and the fair value of trade payables is estimated to be equal to their carrying amount. The total fair value of current and non-current financial liabilities was SEK 9,093m (8,749). The value of electricity derivatives is based on published prices in an active market. Other financial instruments are market to market, based on prevailing currency and interest rates on the balance sheet date. The fair value of debt instruments is determined using valuation models, such as discounting future cash flows at quoted market rates for the respective maturity.

7. CONTINGENT LIABILITIES, PLEDGED ASSETS AND COMMITMENTS

SEKm	Parent
Contingent liabilities	Mar 31, 2020		Dec 31, 2019
Guarantees for
subsidiaries	783		750
associates	-		-
customers and others	-		-
Other contingent liabilities	316		285
Total	1,099		1,035
Pledged assets	Mar 31, 2020		Dec 31, 2019
Chattel mortgages	20		20
Total	20		20

Group

Mar 31, 2020	Dec 31, 2019
-	-
5	5
29	31
16	18
50	54
Mar 31, 2020	Dec 31, 2019
20	20
20	20

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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Commitments

SCA has a decided investment in Obbola totaling SEK 7.5bn over a five-year period. As of March 31, 2020, SEK 6.5bn remained. Of this amount, SEK 2.7bn is a contracted commitment and in its entirely refers to fixed assets.

8. ALTERNATIVE PERFORMANCE MEASURES

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Including and excluding the impact of the changed accounting method for the valuation of forest assets

			Quarter
SEKm		2020:1	2019:1 %2019:4	2019:41%2

Net sales Other income Change in inventories

Change in value in biological assets Raw materials and consumables Personnel costs

Other external costs

Share of profits of associates

EBITDA

Depreciation

Operating profit

Financial items

4,793	5,076	-6	4,312	4,312	11
511	570	-10	598	598	-15
-256	196		114	114
333	232	44	16,265	222	50
-1,726	-2,025	-15	-1,574	-1,574	10
-787	-767	3	-738	-738	7
-1,843	-1,723	7	-1,863	-1,863	-1
5	1		-16	-16
1,030	1,560	-34	17,098	1,055	-2
-402	-392	3	-498	-418	-4
628	1,168	-46	16,600	637	-1
-24	-30		-25	-25

Profit before tax		604	1,138	-47	16,575	612	-1
Tax		-121	-230		-3,422	-134
Net Profit for the period	483	908	-47	13,153	478	1
Earnings per share SEK 1	0.69	1.29		18.73	0.68
Earnings attributable to:
Owners of the parent	483	908		13,153	478
Average no. of shares, millions	702.3	702.3		702.3	702.3
Margins (%)
EBITDA margin	21.5	30.7		396.5	24.5
Operating margin	13.1	23.0		385.0	14.8
Net margin	10.1	17.9		305.0	11.1

1. Excluding the effect of changed accounting method for valuation of forest assets
2. Comparison to profit excluding effect of changed accounting method of forest valuation of forest assets

For definitions of alternative performance measures, refer to SCA's 2019 Annual Report, pages 89-92.

OPERATING CASH FLOW		Quarter
SEKm	2020:1	2019:1	2019:4
EBITDA	1,030	1,560	1,055
Changes in value biological assets and other non
cash flow items	-340	-246	-323
Operating cash surplus	690	1,314	732
Change in working capital	-146	-353	140
Current capital expenditures, net 1	-175	-168	-370
Other operating cash flow	-28	-167	81
Operating cash flow	341	626	583

1Including SEK 17m (26 in 2019:1 and 99 in 2019:4) of new leasing contracts

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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2 2

CAPITAL STRUCTURE

SEKm	Mar 31, 2020	Dec 31, 2019
Biological assets	70,097	69,682
Working capital	3,470	3,748
Deferred tax relating to forest assets	-14,107	-13,977
Other capital employed, net	17,878	17,654
Total capital employed	77,338	77,107
Return on capital employed (%) 1	31.9	36.7
Return on capital employed excluding new method for valuation of forest assets (%) 1	5.3	6.9
Industrial return on capital employed (%) 1,2	8.6	11.9
Net debt, SEKm	9,087	8,597
Net debt/EBITDA (LTM)	1.9x	1.6x
Equity, SEKm	68,251	68,510
Net debt/Equity (%)	13.3	12.5

1. Rolling 12 months
2. Excluding constructions in progress

WORKING CAPITAL

SEKm	Mar 31, 2020	Dec 31, 2019
Inventories	4,817	5,014
Accounts receivable	2,767	2,313
Other current receivables	815	790
Accounts payable	-3,420	-3,336
Other current liabilities	-1,841	-1,044
Adjustments 1	332	11
Working capital	3,470	3,748
Working capital / net sales 2	20.2	20.2
1Adjustments:
Other current receivables, green certificates	0	-6
Accounts payable, strategic capital expenditures	257	62
Other current provisions	-41	-55
Other current liabilities, emission rights	116	10
Sum adjustments	332	11

2Calculated as an average of working capital for 13 months as a percentage of 12-month rolling net sales

NET DEBT

SEKm	Mar 31, 2020	Dec 31, 2019
Surplus in funded pension plans	585	1,019
Non-current financial assets	74	67
Current financial assets	1	3
Cash and cash equivalents	867	454
Financial receivables	1,527	1,543
Non-current financial liabilities	5,892	5,888
Provisions for pensions	664	522
Current financial liabilities	4,058	3,730
Financial liabilities	10,614	10,140
Net debt	-9,087	-8,597

SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ), Skepparplatsen 1, SE-851 88 SUNDSVALL, SWEDEN. www.sca.com. Corp. Reg. No. 556012-6293

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9. QUARTERLY DATA BY SEGMENT

NET SALES					Quarter
SEKm	2020:1	2019:4	2019:3	2019:2	2019:1	2018:4	2018:3	2018:2	2018:1
Forest	1,833	1,694	1,865	1,746	1,651	1,540	1,455	1,162	1,298
Wood	1,436	1,376	1,545	1,727	1,678	1,558	1,712	1,846	1,503
Pulp	1,188	900	1,129	1,214	1,134	1,049	743	485	589
Paper	2,242	2,108	2,380	2,375	2,366	2,421	2,413	2,426	2,383
Intra-group deliveries	-1,906	-1,766-1,944-1,834	-1,753	-1,642	-1,564	-1,249	-1,373
Total net sales	4,793	4,312	4,975	5,228	5,076	4,926	4,759	4,670	4,400
EBITDA					Quarter
SEKm	2020:1	2019:4	2019:3	2019:2	2019:1	2018:4	2018:3	2018:2	2018:1
Forest	452	607	388	414	331	427	292	371	304
Wood	95	125	180	188	297	226	276	230	172
Pulp	186	20	268	344	351	370	273	-112	178
Paper	379	382	577	489	616	536	728	618	586
Other	-82	-79	-49	-95	-35	-65	-20	-73	-65
Total EBITDA1	1,030	1,055	1,364	1,340	1,560	1,494	1,549	1,034	1,175

1Including the effect of changed accounting method of forests assets, EBITDA amounted to SEK 16,649m for Forest and SEK 17,097m and for the Group in 2019:4.

EBITDA MARGIN					Quarter
Percent	2020:1	2019:4	2019:3	2019:2	2019:1	2018:4	2018:3	2018:2	2018:1
Forest	24.6	35.8	20.8	23.7	20.0	27.7	20.1	31.9	23.4
Wood	6.6	9.1	11.6	10.8	17.7	14.5	16.1	12.5	11.4
Pulp	15.6	2.2	23.8	28.4	31.0	35.3	36.7	-23.1	30.2
Paper	16.9	18.1	24.2	20.6	26.0	22.2	30.2	25.5	24.6
EBITDA margin1	21.5	24.5	27.4	25.6	30.7	30.3	32.5	22.1	26.7

1Including effect of changed accounting method for valuation of forest assets, the EBITDA margin was 82,8% for Forest and 396,5% for the Group in 2019:4

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