- Net sales and sales volumes increased in Q1 2012 compared to Q4 2011 due to higher sales volumes. Operating profit was MSEK 142, a 6% operating margin. - Price cuts were halted and price increases were announced for sack and kraft papers. Wood costs decreased. - Operating profit increased in packaging and speciality paper due to higher sales volumes and lower costs. It decreased slightly in packaging boards due to lower prices. Profit improved in market pulp due to higher volumes and lower fixed costs compensating for lower prices. - Cash flow from operations was positive due to higher operating surplus and improved working capital.

1. INTERIM REPORT | JANUARY-MARCH 2012
Per Lindberg, CEO and President, and Susanne Lithander, CFO | 26 April, 2012
1

2. AGENDA
• Highlights
• Development by Business Area
• Financials
• Outlook
2

3. HIGHLIGHTS IN Q1 2012
• Increase in net sales and sales volumes vs. Q4 2011
• Operating profit of MSEK 142, 6% operating margin
• Non-recurring costs of MSEK 14
• Price cuts halted
‒ ~2% lower prices in local currency for packaging paper
‒ ~25 USD/tonne price increase for NBSK pulp in Europe
• Price increases announced for sack and kraft papers
• Lower wood costs
3

4. INCREASED SALES DUE TO HIGHER VOLUMES
NET SALES SALES VOLUME
2 500 400
Sales volume, ktonnes
+10%
350 +14%
Net sales, MSEK
2 000 300
1 500 250
2 086 2 291 200 315 360
1 000 150
500 100
50
0 0
Q4 -11 Q1 -12 Q4 -11 Q1 -12
4

5. BUSINESS AREAS & SEGMENTS
PACKAGING &
SPECIALITY PAPER PACKAGING BOARDS
Kraft & Sack Paper S/C Fluting, Liner, Liquid Board
MARKET PULP
Nordic Bleached
Softwood Kraft Pulp
Note: Graph shows sales breakdown per business area for Q1 2012. 5

6. PACKAGING & SPECIALITY PAPER
Market situation in Q1 2012
• Improved order situation vs. Q4 2011
• Sack paper had higher order levels than normal while kraft
paper was at normal levels towards the end of Q1
• Price cuts halted
• 80 EUR/tonne in price increase announced from 1 June for
sack and kraft papers
6

7. PACKAGING & SPECIALITY PAPER
Financials – Q1 2012 vs. Q4 2011
160
• Operating profit up by MSEK 35 140
Operating profit, MSEK
120
• Mainly due to higher sales volumes 100
and lower variable costs 80
60
40
20
0
Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 - 12
Q1 -12 Q4 -11 Q1 -11 FY 2011
Net sales, MSEK 1,091 941 1,217 4,293
Operating profit, MSEK 100 65 140 450
Operating margin, % 9 7 12 10
7

8. PACKAGING BOARDS
Market situation in Q1 2012
• Somewhat improved order situation
‒ Slightly lower levels than normal
• Price cuts halted
8

9. PACKAGING BOARDS
Financials – Q1 2012 vs. Q4 2011
140
• Operating profit down by MSEK 4 120
Operating profit, MSEK
• Lower prices were partly offset by 100
higher sales volumes and lower 80
costs 60
40
20
0
Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 - 12
Q1 -12 Q4 -11 Q1 -11 FY 2011
Net sales, MSEK 663 644 728 2,772
Operating profit, MSEK 56 60 97 370
Operating margin, % 8 9 13 13
9

10. MARKET PULP
Market situation in Q1 2012
• Pulp market improved vs. Q4 2011
• Price increased to ~850 USD/tonne at end of Q1 2012 from
~825 USD/tonne at end of Q4 2011
• Price increase to 870 USD/tonne announced for April
10

11. MARKET PULP
Financials – Q1 2012 vs. Q4 2011
50
• Operating profit improved by MSEK 8 40
Operating profit, MSEK
• Higher sales volumes and lower fixed 30
costs compensated for lower prices 20
10
0
Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 -12
-10
-20
-30
Q1 -12 Q4 -11 Q1 -11 FY 2011
Net sales, MSEK 436 416 436 1,752
Operating profit, MSEK -16 -24 38 64
Operating margin, % -4 -6 9 4
11

12. Q1 2012 IN SUM
• 10% increase in net sales due to higher sales volumes
(vs. Q4 2011)
• Operating profit of MSEK 142, 6% operating margin
• Non-recurring costs of MSEK 14
• Price cuts halted
• Price increases announced for sack and kraft papers
• Lower wood costs
• Closing of the deal with UPM-Kymmene anticipated to
take place in Q2 2012
12

13. FINANCIAL INFORMATION
13

14. QUARTERLY KEY FIGURES
Q1 -12 Q4 -11 Q1 -11
Net sales, MSEK 2,291 2,086 2,547
Operating profit, MSEK 142 75 332
Operating margin 6% 4% 13%
Profit/share, SEK 0.94 0.44 2.28
Net debt/equity ratio -0.04 -0.05 0.05
Sales volume (ktonnes) 360 315 369
14

15. OPERATING PROFIT BRIDGE Q1 2012 vs. Q4 2011
160
+69 +41 142
0
140
120
+37
100
MSEK
75 -56
80
60 -24
40
20
0
Operating Sales & Selling prices Effects of Change in Change in Change in Operating
profit production (in respective exchange rate variable costs fixed costs depreciation profit
Q4 2011 volumes* sales currency) fluctuations, Q1 2012
incl. hedging
* Includes product mix.
15

16. CASH FLOW GENERATION FROM OPERATION
MSEK
Q1 -12 Q4 -11 Q1 -11
Operating surplus, etc 298 238 481
Change in working capital, etc. 22 48 -301
Net financial items, taxes, etc. -202 -12 -181
Cash flow from operating activities 118 274 -1
Current net investments -155 -178 -82
Operating cash flow -37 96 -83
1) Minus equals increase in net debt 16

17. WORKING CAPITAL KEY RATIOS
Days sales outstanding Overdue WC as % of quarterly sales
70 6,0 70%
Working capital (excl. IAS)/quartely net turnover
60 60%
5,0
50 50%
4,0
% of total receivables
DSO days
40 40%
3,0
30 30%
2,0
20 20%
10 1,0 10%
0 0,0 0%
17

18. MARKET PRICES AFFECTING RESULT
Electricity index (Sweden*) Wood price index
280 160
240 140
200
120
160
120 100
80 80
2004 Q4 - Q4 - Q4 - Q4 - Q4 - Q4 - Q4 - 2004 Q4 - Q4 - Q4 - Q4 - Q4 - Q4 - Q4 -
05 06 07 08 09 10 11 05 06 07 08 09 10 11
Source: Nordpool. *Price area Sweden Source: Billerud
18

19. MARKET PRICES AFFECTING RESULT
Market pulp (USD/t) TCW index*
118
1 050
1 000 115
950 112
900
850
109
800 106
750 103
700
650 100
600 97
550
94
2004 Q4 - Q4 - Q4 - Q4 - Q4 - Q4 - Q4 - 2004 Q4 - Q4 - Q4 - Q4 - Q4 - Q4 - Q4 -
05 06 07 08 09 10 11
05 06 07 08 09 10 11
Note: Average price for the quarter Source: Riksbanken *Total Competitiveness Weights Index
19

20. CURRENCY SITUATION
• Profit effect of net flow hedging MSEK 44 (99) for Q1 2012
• Market value of outstanding contracts not relating to trade
receivable was MSEK 38*
Hedge level 12 months forward: Average hedged currency rates (share of net flow)
Q2 -12 Q3 -12 Q4 -12 Q1 -13 Total 12
months
EUR 50% 9.19 9.16 9.10 8,99 9.15
(83%) (65%) (41%) (14%) (50%)
6.74 6.81 6.88 6.82 6.79
USD 49%
(84%) (57%) (38%) (16%) (49%)
10.58 10.68 10.74 10.71 10.65
GBP 49%
(83%) (62%) (36%) (16%) (49%)
Note: Data in table and graph are as of 31 March 2012. *As of 31 March 2012. 20

21. OUTLOOK
21

22. OUTLOOK
• The market shows signs of an upturn during the second quarter.
• The order situation in the packaging paper segments improved in the
first quarter, compared to the previous one, and had at the beginning
of the second quarter on average returned to normal levels. It is
anticipated that the order situation will remain good in the next quarter.
• Price cuts in the packaging paper segments halted during the quarter.
• Price rises have during the quarter been announced in certain product
categories and a price increase of 8-10% for sack and kraft paper was
announced after the end of the quarter, to take effect on 1 June 2012.
22

23. OUTLOOK CONT.
• Acquisition-related non-recurring costs will be charged to results in the
quarter in which the acquisition of UPM-Kymmene’s packaging paper
business will be completed. These costs are estimated to an additional
approximately SEK 15 million. Added to this figure will be non-recurring
costs, already disclosed, estimated at approximately SEK 22 million to
separate off the business acquired. The costs will accrue over the three
remaining quarters of the year.
• Wood prices are anticipated to be lower in 2012 than in 2011.
23

24. Q&A
We believe in embracing what is important to our customers, our company,
our employees and the environment. By always giving back more than we take,
we are building a company for future generations.
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