Holmen is a Swedish forestry and paper company with four business areas: Holmen Timber, Holmen Skog, Holmen Paper, and Iggesund Paperboard. It has a total of 4,600 employees and generates annual sales of 18 billion SEK. Holmen owns 1 million hectares of forest land from which it harvests 3 million cubic meters of wood per year. It is increasing its harvest and sale of bioenergy sources like stumps, branches, and small trees to meet growing demand from the energy sector. Holmen is working to develop efficient harvesting and logistics for bioenergy to make it a profitable additional business.

1. Welcome to Holmen Skog

2. The Group 2009 Share of sales profit Holmen Timber Sawn timber Holmen Skog Forests & wood Holmen Energi Electric power & energy capital Holmen Paper Newsprint & magazine paper Iggesund Paperboard Paperboard Sales SEK 18.0 bn ● Operating profit SEK 1.6 bn ● Capital employed SEK 22.2 bn ● Employees 4 600

3. Product-oriented business areas Raw-material-oriented business areas

4. Production and capacity Holmen Paper 8 paper machines 1 940 000 tonnes newsprint & magazine paper/year Iggesund Paperboard 3 board machines 530 000 tonnes paperboard/year Holmen Timber 2 mills 900 000 m 3 sawn timber/year Holmen Skog 1.0 million hectares forest land 3 000 000 m 3 wood/year Holmen Energi 1.1 TWh hydro power/year Europe Rest of the world Sales

6. Wood procurement 2010 Procurement 2010, million m 3 f per year Procurement 2010 million m 3 f/year Total 10,8 of which from: million m 3 f/year Own forests 2,9 Other forest owners 7,6 Import 0,3

9. Wood delivery 2010 Pulpwood and saw timber, million m 3 f/year Internal wood delivery million m ³ f/year Braviken 1,1 Hallsta 1,3 Iggesund’s Bruk 1,4 Iggesund’s Sawmill 0,7 Total 4,5 External wood delivery million m ³ f/year Total 6,2 Total wood delivery million m ³ f/year Total 10,7

11. Increasing yield of timber Growth and felling in Holmen’s forests Annual felling Annual growth Volume of timber in Holmen’s forests Cubic metres of timber per hectare, m 3 fub

15. Sweden 378 Estonia 17 Total 395 Number of employees Men 79% Women 21%

16. Welcome to Holmen Skog Region Norrköping

20. Braviken

21. Bioenergy - A growing business with in Holmen

25. Swedish forestry – a part of the energy sector ~7 % primary forest fuels ~45 % energy Peter Roland Holmen Skog 2011-04-12 36 % Pulp & paper 16 % Pulpchips 10 % Bark, sawdust 20 % Sawn products 46 % Sawtimber 8 % Energy wood 27 % Black liquors TWh 46 % Pulpwood Annual cut Sources: Skogsindustrierna, 2007, Skogsstatistisk årsbok 2007 & Skogforsk 2010

26. Customer of bioenergy Biopower plants (producing heat and power)

27. Prognosis of Bioenergy sale - Holmen Skog & Timber, Norrköping Peter Roland Holmen Skog 2011-04-12 Numbers inGWh Holmen Skog 2009 2010 2011 2012 2013 Stumps 13 10 10 15 Small trees 10 30 45 75 90 Harvest residues 170 191 275 337 487 Energy wood 231 191 241 309 325 Total 411 425 571 731 917 Holmen Timber Sawdust 0 0 119 212 243 Bark 0 0 143 257 293 Dry chips 0 0 46 83 95 Shavings 0 0 8 41 78 Total 0 0 316 593 709 Timber & Skog total 411 425 887 1324 1626

28. Prognosis of Bioenergy sale - Holmen Skog & Timber, Norrköping Peter Roland Holmen Skog 2011-04-12

35. Forwarding of residues

36. Small tree harvesting

37. Thank you! Peter Roland Holmen Skog AB Manager of bioenergy E-mail: peter.roland@holmenskog.com