Year-end report for 2006

Quarter Full year
MSEK 4-06 3-06 4-05 2006 2005
Net
turnover 4 830 4 521 4 235 18 592 16 319
Operating
profit 590 610 570 2 303 1 967
Profit
after tax 369 382 397 1 459 1 256
Earnings
per share,
SEK 4.4 4.5 4.7 17.2 14.8
Return on 9.0 9.5 10.0 9.0 8.0
equity, %



· The Group’s net turnover for 2006 amounted to MSEK 18 592 (2005:
16 319). The increase is explained by higher deliveries, mainly from the
new paper machine in Spain, and higher prices for newsprint and magazine
paper.

· The profit after tax was MSEK 1 459 (1 256).

· Earnings per share amounted to SEK 17.2 (14.8). Return on equity was
9.0% (8.0).

· The Board proposes that a dividend of SEK 12 per share be paid. A
dividend of SEK 11 was paid for the previous year.

· The operating profit was MSEK 2 303 (1 967). The improvement is due
to higher newsprint prices and increased deliveries, which was offset by
higher energy costs.

The operating profit for the fourth quarter was MSEK 20 lower than that
for the third quarter, an effect of seasonally higher costs within
Holmen Paper and improved results within Holmen Kraft and Holmen Skog.

· The market situation for newsprint in Europe remained strong during
the fourth quarter. Holmen Paper’s deliveries were 15% higher than in
2005, largely as a result of the new paper machine in Madrid. The prices
of Holmen Paper’s products were on average some 5% higher than in the
previous year.

The market situation for virgin fibre board in Europe remained firm in
the fourth quarter. Iggesund Paperboard’s deliveries were 9% higher than
in 2005. Prices were stable.

Stockholm 1 February 2007
Holmen AB (publ)

Magnus Hall
President and CEO

Interim report for January-March 2007 will be published on 9 May. The 2007 Annual General Meeting will be held in Stockholm at 4.00 p.m. on 28 March. Annual Report for 2006 will be published at the beginning of March and will be sent to the shareholders by post.

For further information please contact:
Magnus Hall, President and CEO, tel +46 8 666 21 33
Anders Almgren, CFO, tel +46 8 666 21 16
Christer Lewell, Public Relations Director, tel +46 8 666 21 15.



About Us

Holmen is a forest industry group that manufactures paperboard, paper and wood products and runs forestry and energy production operations. In 2016 Holmen’s net sales were SEK 15.5 billion and the group has approx. 3 000 employees. Holmen’s shares are listed on Nasdaq Stockholm, Large Cap. For more information, visit holmen.com

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