BONG LJUNGDAHL AB Interim report January – March 2007

“Last year’s restructuring efforts had a tangible impact on the first quarter in the form of reduced costs, at the same time the restructuring programmes have boosted our capacity utilisation. Our focus now is on pushing through price increases,” says Bong’s President and CEO Anders Davidsson.

• Net sales are reported at SEK 540 million (556). ProPac continued to gain importance for the Group and accounted for 9 percent of sales in the first quarter (7).

• Operating profit was SEK 24 million (25) and profit after tax amounted to SEK 9 million (10). Earnings per share after dilution were SEK 0.65 (0.78).

• The restructuring programme generated a decrease of SEK 18.5 in fixed costs compared to the same quarter of 2006.

• The price of uncoated fine paper has continued to increase sharply. First quarter profit was negatively affected by the delay in passing on price increases to customers.

• Cash flow after investing activities was SEK -79 million (-34).