INTERIM REPORT JANUARY-MARCH 2005

Quarter Full year MSEK 1-05 4-04 1-04 2004 Net turnover 3,801 4,042 3,903 15,653 Operating 364 352 572 1,952 profit Profit after 307 298 530 1,746 financial items Profit after 217 249 376 1,275 tax Earnings per 2.56 2.94 4.70 15.26 share (before dilution), SEK Earnings per 2.56 2.94 4.52 15.12 share (after dilution), SEK Return on 5.5 6.5 8.6 7.9 equity, % • The Group’s net turnover for January-March amounted to MSEK 3,801 (January-March 2004: 3,903). • The profit after tax amounted to MSEK 217 (376). • Earnings per share after dilution amounted to SEK 2.56 (4.52). Return on equity was 5.5 % (8.6). • The operating profit was MSEK 364 (572). The decline was due to significant cost increases for raw material and to lower deliveries. The price of newsprint and magazine paper was higher, but the effect on the result was limited by negative currency effects. In relation to the fourth quarter of 2004 the result increased by MSEK 12 to MSEK 364. • Demand for newsprint and magazine paper was largely unchanged in relation to the first quarter of 2004. Holmen Paper’s deliveries were 1 % lower than for the corresponding period last year, and 15 % lower than in the fourth quarter. The price was raised during the quarter. Demand for virgin fibre-based paperboard in Europe was slightly lower than during the first quarter of 2004. Iggesund Paperboard’s deliveries declined by 8 % in relation to the corresponding period last year, and were 2 % lower than during the fourth quarter. Modest price increases have been made. • With effect from this interim report, Holmen applies IFRS to its consolidated financial statements. 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 Holmen is a forest products industry group with the capacity to produce 2.4 million tonnes of paper and paperboard per year. The EU countries, which account for some 90 per cent of the Group’s turnover, are by far the largest market. Holmen Paper produces paper for daily newspapers, magazines, directories and advertising matter at three Swedish mills and one Spanish mill. Iggesund Paperboard produces paperboard for packaging and graphic purposes at two Swedish mills and one English mill. Iggesund Timber produces sawn timber at one Swedish sawmill. Holmen Skog manages the Group’s one million hectares of forests and the annual volume harvested from company forests is some 2.5 million cubic metres. Holmen’s annual wood consumption is some 4.5 million cubic metres. Holmen Skog’s earnings are largely generated by the sale of wood harvested in company forests. Holmen Kraft produces in a normal year some 1,100 GWh of electric power at wholly and partly owned hydroelectric power stations in Sweden. Holmen’s annual power consumption is some 4,200 GWh. Holmen Kraft’s earnings are largely generated from the production of electric power by wholly and partly owned hydroelectric power assets.