The interim report summarizes Billerud's financial performance for the first three quarters of 2011. Key highlights include strong earnings with an operating profit of MSEK 296 and margin of 13%. Cash flow from operating activities was very strong at MSK 531. All three business areas - Packaging & Speciality Paper, Packaging Boards, and Market Pulp - saw increases in operating profit compared to the previous quarter. However, order situations weakened for packaging paper and boards due to seasonal reductions in customer stock levels and growing uncertainty in demand. Billerud received two major packaging design awards. Overall results were above target operating margin of 12% despite price pressures and weaker demand outlook for the remainder of the year.

1. INTERIM REPORT | JANUARY-SEPTEMBER 2011
THE NATURAL PART IN
SMARTER PACKAGING
Per Lindberg, CEO and President, and Susanne Lithander, CFO | 28 October, 2011
1

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

3. HIGHLIGHTS IN Q3 2011
• Strong earnings
‒ Operating profit of MSEK 296, margin 13%
• Very strong cash flow
‒ Cash flow from operating activities of MSK 531
• Significant increase in earnings for packaging paper
• Net cash position
• Growing uncertainty about packaging paper demand
‒ Weakened order situation
‒ Stable local prices for packaging paper
3

4. THE NATURAL PART IN SMARTER PACKAGING
• Pentawards Best of the Show
‒ Billerud’s design agency NINE received the world’s finest
design award
• Design Challenge 2011
‒ Billerud FibreForm® was rewarded at the largest Nordic
packaging fair
4

5. STRONG RESULTS FROM BUSINESS AREAS
Billerud group Business areas
300 296 300 292
275 +8%
+35%
250 250
216 +40%
200 +35% 200
EBIT, MSEK
EBIT, MSEK
150 150
100 100 +27%
50 50
+50%
0 0
Apr-Jun 11 Jul-Sep 11 Apr-Jun 11 Jul-Sep 11
Packaging & Speciality Paper
Currency hedging, other, etc Packaging Boards
Business areas Market Pulp
5

6. 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 July-September 2011. 6

7. PACKAGING & SPECIALITY PAPER
Market situation in Q3 2011
• Order situation for sack and kraft paper continued to
weaken gradually
‒ Seasonality and reduction of stock levels were main reasons
• Market-related production shutdowns implemented to
restore market balance
‒ Mainly related to sack paper
• Stable prices in local currency vs. Q2 2011
• Increased price pressure during the quarter
7

8. PACKAGING & SPECIALITY PAPER
Financials – Q3 2011 vs. Q2 2011
160
• Operating profit up MSEK 41 140
Operating profit, MSEK
120
• Improved currency situation and 100
lower costs 80
60
• Lower sales volume had a negative
40
impact on operating profit
20
0
Q3 Q4 Q1 Q2 Q3
2010 2011
Q3 2011 Q2 2011 Q3 2010 FY 2010
Net sales, MSEK 1,056 1,079 1,085 4,166
Operating profit, MSEK 143 102 106 417
Operating margin, % 148 9 10 10
8

9. PACKAGING BOARDS
Market situation in Q3 2011
• Order situation weakened to some extent
‒ Growing uncertainty about demand compared with Q2 2011
• Stable prices in local currency vs. Q2 2011
• Increased price pressure towards the end of Q3 2011
‒ Related to lower prices for recycled fibre-based grades
9

10. PACKAGING BOARDS
Financials – Q3 2011 vs. Q2 2011
140
• Operating profit up MSEK 25 120
Operating profit, MSEK
• Improved currency situation and 100
lower fixed costs 80
60
40
20
0
Q3 Q4 Q1 Q2 Q3
2010 2011
Q3 2011 Q2 2011 Q3 2010 FY 2010
Net sales, MSEK 696 704 649 2,428
Operating profit, MSEK 119 94 107 271
Operating margin, % 17 13 16 11
10

11. MARKET PULP
Market situation in Q3 2011
• Weakened pulp market vs. Q2 2011
• Producers’ pulp stocks increased
• Demand relatively good vs. Q2 2011
• Price in Europe fell to ~950 USD/tonne at end of Q3 2011
from ~1,025 USD/tonne at end of Q2 2011
11

12. MARKET PULP
Financials – Q3 2011 vs. Q2 2011
100
• Operating profit up MSEK 10 90
Operating profit, MSEK
80
• Higher sales volume and an 70
60
improved currency situation 50
compensated for less favourable 40
prices in local currency 30
20
10
0
Q3 Q4 Q1 Q2 Q3
2010 2011
Q3 2011 Q2 2011 Q3 2010 FY 2010
Net sales, MSEK 465 435 452 1,731
Operating profit, MSEK 30 20 92 276
Operating margin, % 6 5 20 16
12

13. Q3 2011 IN SUM
• Strong earnings
‒ Operating profit of MSEK 296, margin 13%
‒ MSEK +76 in higher operating profit from business areas
• Very strong cash flow
• Growing uncertainty about packaging paper demand
• Billerud received two of the most recognised packaging
awards
13

14. FINANCIAL INFORMATION
14

15. QUARTERLY KEY FIGURES
Q3 2011 Q2 2011 Q3 2010
Net sales, MSEK 2,327 2,383 2,251
Operating profit, MSEK 296 275 276
Operating margin 13% 12% 12%
Profit/share, SEK 2.03 1.88 1.84
Net debt/equity ratio -0.03 0.06 0.12
Sales volume (ktonnes) 335 335 332
15

16. OPERATING PROFIT BRIDGE Q3 2011 vs. Q2 2011
350
+57 296
300
275 -9
250 +26
-22
+4
200 -35
MSEK
150
100
50
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
Q2 2011 volumes* sales fluctuations, Q3 2011
currency) incl. hedging
* Includes product mix.
16

17. JANUARY-SEPTEMBER KEY FIGURES
Jan-Sep 2011 Jan-Sep 2010 vs. 2010
Net sales, MSEK 7,257 6,549 +11%
Operating profit, MSEK 903 711 +27%
Operating margin 12% 11% +1p.p.
Profit/share, SEK 6.19 4.66 +33%
Net debt/equity ratio -0.03 0.12 +0.15
Sales volume (ktonnes) 1,039 984 +6%
17

18. WELL ABOVE TARGET FOR OPERATING MARGIN
14%
Operating margin, rolling 12 months (%)
12%
Financial
10% target
8%
6%
4%
2%
0%
FY 06 FY 07 FY 08 FY 09 FY 10
-2%
18

19. 09 DSO days
0
0
10
20
30
40
50
60
70
09 13
0 1
09 43
0 0
09 73
1 1
10 03
0 1
10 13
0 1
10 43
0 0
10 73
1 1
11 03
0 1
11 13
0 1
11 43
07 0
30
Days sales outstanding
% of total receivables
09
01
0.0
1.0
2.0
3.0
4.0
5.0
6.0
09 31
05
09 31
Overdue
09
10 30
01
10 31
05
10 31
09
11 30
01
11 31
05
WORKING CAPITAL KEY RATIOS
11 31
09
30
Working capital (excl. IAS)/quartely net turnover
0%
10%
20%
30%
40%
50%
60%
70%
09 09 09 09 10 10 10 10 11 11 11
03 06 09 12 03 06 09 12 03 06 09
19
WC as % of quarterly sales

20. STRONG CASH FLOW GENERATION FROM OPERATION
MSEK
Q3 2011 Q2 2011 Q3 2010
Operating surplus, etc 464 421 417
Change in working capital, etc. 83 57 67
Net financial items, taxes, etc. -16 -10 -20
Cash flow from operating activities 531 468 464
Current net investments -121 -129 -113
Operating cash flow 410 339 351
Dividend - -361 -
Other items, not affecting cash flow -2 -1 1
Change in net debt 1) 408 -23 352
1) Minus equals increase in net debt 20

21. MARKET PRICES AFFECTING RESULT
Electricity index (Sweden*) Wood price index
280 160
240 140
200
120
160
120 100
80 80
2004 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2004 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
2005 2006 2007 2007 2008 2009 2010 2010 2011 2005 2006 2007 2007 2008 2009 2010 2010 2011
Source: Nordpool. *Price area Sweden Source: Billerud
21

22. MARKET PRICES AFFECTING RESULT
Market pulp (USD/t) TCW index*
1,050 118
1,000 115
950
900
112
850 109
800 106
750 103
700
650
100
600 97
550 94
2004 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2004 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
2005 2006 2007 2007 2008 2009 2010 2010 2011 2005 2006 2007 2007 2008 2009 2010 2010 2011
Note: Average price for the quarter Source: Riksbanken *Total Competitiveness Weights Index
22

23. CURRENCY SITUATION
• Profit effect of net flow hedging MSEK -5 (119) for Q3 2011 and
MSEK 146 (265) for Jan-Sep 2011
• Market value of outstanding contracts not relating to account
receivables was MSEK -24*
Average hedged currency rates (share of net flow)
Hedge level 12 months forward: Oct-Dec Jan-Mar Apr-Jun Jul-Sep Total 12
2011 2012 2012 2012 months
EUR 47% 9.27 9.38 9.21 9.24 9.30
(84%) (64%) (27%) (14%) (47%)
6.59 6.57 6.57 6.68 6.59
USD 47%
(80%) (60%) (29%) (16%) (47%)
10.61 10.60 10.49 10.63 10.59
GBP 48%
(87%) (55%) (34%) (13%) (48%)
Note: Data in table and graph are as of 30 September 2011. *As of 30 September 2011. 23

24. OUTLOOK
24

25. OUTLOOK FOR FY 2011
• Market development at the start of the fourth quarter was
marked by some uncertainty about demand. Customers
have continued to reduce their packaging paper stock levels,
which is having a negative impact on orders. Underlying
demand, however, is estimated to be relatively stable in most
segments
• The start of the fourth quarter has been characterised by
continued price pressure
• Billerud continues its efforts to increase the proportion of
sales of packaging paper solutions, i.e. material combined
with services in order to create conditions for a relatively
more stable development
25

26. Q&A
26