Business idea
SCA's business idea is to offer the market customer-adapted and refined products based on wood fibres.

History/Operations
SCA is an integrated paper company producing hygiene products, packaging and graphic papers.
The historical roots go back to the 17th century, when companies in northern Sweden started to exploit the forests and use the rivers as a means of transport. In 1929, Ivar Kreuger founded SCA by merging ten forestry companies into one, to produce sawn timber products and wood pulp. Today, SCA owns 1,8 million hectares of productive forest and operates a comprehensive sawmill business.
The basis for the operations is the company's wide knowledge of wood fibres. This know-how is now used in the development of ever more refined products, used by private consumers, institutions as well as trade and industry. SCA is Europe's largest user of waste paper, using as much recycled fibres as new fibres in production.

SCA Fine Paper manufactures coated and uncoated wood-free paper for offset printing and high quality office paper. The division consists of the paper mills Stockstadt in Germany, Hallein in Austria, Wifsta in
Sweden, sales of fine paper products from SCP Ruzomberok in Slovakia and the wholesale company SCA Paper Trade.
Wifsta Office is a wide assortment of high quality office papers in different qualities (Mosaique, Astral, Celeste and Premium). There are three types of packaging: Standard for office use, Magnum for large-scale users and flexible small packages.

Markets
Europe is SCA's main market, while expansion is going on in Central and Eastern Europe as well as Asia and America.
SCA's twelve largest markets together make up 87 percent of the group's net turnover. The three largest markets are Germany, the UK and France.

SCA Fine Paper has its main markets in Western and Central Europe, with greatest sales (thousand tons per year) to Germany (57), France (20), England (18) and Sweden (16).

Organization and personnel
The SCA group is divided up into three strategic business areas: Hygiene Products, Packaging and Graphic Papers. SCA Fine Paper is one of two divisions within the business area Graphic Papers.
At the beginning of 1998, the number of employees in the group as a whole amounted to just over 33,000 in some 30 countries. At the same time, SCA Fine Paper had 3,300 employees.
The group head office is in Stockholm, Sweden. SCA Fine Paper has its head office in Raubling, Germany.

Financial position
1997

Net turnover SCA group: MSEK 58,595

Net turnover SCA Fine Paper: MSEK 11,000

The SCA share is quoted on the stock exchanges in Stockholm and London and can also be traded in the USA in the form of ADR (American Depositary Receipts).

Chairman of the board
Bo Rydin

Managing director
Sverker Martin-Löf

Contact persons:
Niclas Holmén or Ingrid Svensson
SCA Fine Paper
SE-861 81 Timrå
Sweden
tel: +46(0)60-16 40 00
fax: +46(0)60-57 31 52
e-mail: wifstamarketing@finepaper.sca.se
www.wifsta.com