Interim Report January - June 2001

Interim Report January - June 2001 Quarter January-June MSEK 2001 II 2001 I 2000 II 2001 2000 Net turnover, MSEK 1,742 1,840 1,612 3,582 3,200 Operating profit, MSEK 319 469 290 788 515 · Billerud was formed through a merger of the paper mills in Skärblacka, Karlsborg and Gruvön. · Return on capital employed, measured as a moving 12-month figure, amounted to 34% (30% for the full year 2000). · Downward trend in the market continued. · Stock-exchange listing planned for December 2001. · The accounts are prepared in accordance with the recommendations of the Swedish Financial Accounting Standards Council. For further details, see page 6. Billerud Group The establishment of Billerud through the merger of AssiDomän's Skärblacka and Karlsborg paper mills with Stora Enso's Gruvön paper mill has created a new, competitive and in many respects leading company in packaging paper. Today, Billerud is 50% owned by AssiDomän and 50% by Stora Enso. (All financial information relating to 2000 is pro forma) Sales and results Second quarter Net turnover for the period, MSEK 1,742, decreased compared with the previous quarter by MSEK 98 or 5%. The lower turnover was due to lower volumes of kraft paper. In the same period last year, net turnover amounted to MSEK 1,612. Operating profit amounted to MSEK 319, a decrease compared with the previous quarter of MSEK 150 or 32%. Lower prices for market pulp and the annual maintenance shutdown in Skärblacka had an impact on earnings. In the same period last year, operating profit amounted to MSEK 290. January - June Compared with the first half of 2000, net turnover increased by MSEK 382 or 12% and amounted to MSEK 3,582. All product areas increased their turnover. The operating profit of MSEK 788 represents an improvement over the first half of 2000 of MSEK 273 or 53%. The increase was attributable to higher average prices mostly due to the favourable foreign exchange trend with a weakened Swedish krona. The result for the period was affected by production shutdowns resulting from the weak market situation. The cost level rose slightly, mainly due to higher prices for wood and chemicals. Net financial items, amounting to MSEK -55, mainly pertained to interest at market rates charged on loans from the company's owners. The estimated tax charge was MSEK 208. The tax charge corresponds to a tax rate of just over 28%. Return on capital employed, calculated on the latest 12-month period, amounted to 34%, compared with 30% for the full year 2000. Return on equity was 42%. Foreign exchange exposure 25% of the Group's sales are in Swedish kronor and 75% in foreign currency, primarily EUR, USD and GBP. The majority of costs are in Swedish kronor. The Group is therefore exposed to exchange rate fluctuations. In order to manage this, Billerud has hedged exchange rates as shown below. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/07/31/20010731BIT00060/bit0001.doc The full report http://www.waymaker.net/bitonline/2001/07/31/20010731BIT00060/bit0001.pdf The full report

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BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world-leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 8 production sites in Sweden, Finland and the UK and about 4300 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

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