INTERIM REPORT JANUARY-JUNE 2005

Quarter January-June Full year MSEK 2-05 1-05 2-04 2005 2004 2004 Net turnover 4,201 3,801 3,884 8,002 7,787 15,653 Operating profit 449 364 460 813 1,032 1,952 Profit after financial items 387 307 407 694 937 1,746 Profit after tax 271 217 288 488 664 1,275 Earnings per share (after dilution), SEK 3.20 2.56 3.40 5.76 7.89 15.12 Return on equity, % 7.0 5.5 7.0 6.2 7.8 7.9 · The Group’s net turnover for January-June amounted to MSEK 8,002 (January-June 2004: 7,787). · The profit after tax amounted to MSEK 488 (664). · Earnings per share after dilution amounted to SEK 5.76 (7.89). Return on equity was 6.2 % (7.8). · The operating profit amounted to MSEK 813 (1,032). The decline is due to significant cost increases for input goods, lower paperboard production, and unfavourable currency effects. Higher prices for newsprint and magazine paper, however, have had a favourable effect on the result. In relation to the first quarter, the second quarter result improved by MSEK 85 to MSEK 449, mainly owing to higher deliveries of newsprint and magazine paper to Europe. · Market conditions for newsprint and magazine paper in Europe have improved after a seasonally weak start to the year. Holmen Paper’s deliveries were 2 % higher than in the first half of 2004. Prices were stable following the increases made at the beginning of the year. Market conditions for virgin fibre-based paperboard in Europe remained stable. Iggesund Paperboard’s deliveries were 2 % lower than during the first half of 2004. Prices were stable. 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