Interim Report January-March 2008

Quarter Full year
MSEK 1-08 4-07 1-07 2007
Net turnover 4 875 5 073 4 787 19 159
Operating profit 446 1 039 634 2 843
Operating profit excl.
items affecting
comparability* 446 482 634 2 286
Profit after tax 271 341 397 1 505
Earnings per share,
SEK 3.2 4.0 4.7 17.8
Return on equity, % 6.4 8.1 9.7 9.2

* Items affecting comparability relate to a write-down of fixed assets and a positive revaluation of forests of net MSEK 557 carried through in the fourth quarter of 2007.

· The Group’s net turnover for January-March 2008 amounted to MSEK 4 875(January-March 2007: 4 787).

· Profit after tax was MSEK 271 (397).

· Earnings per share amounted to SEK 3.2 (4.7). Return on equity was 6.4% (9.7).

· The operating profit was MSEK 446 (634). This result was adversely affected by lower newsprint prices and higher cost of wood.

The operating profit excluding items affecting comparability was MSEK 36 lower than during the fourth quarter of 2007.

· The demand for newsprint in Europe fell slightly during the first quarter. The price of newsprint fell. In Holmen Paper’s case, the price
was on average some 4% lower than in the first quarter of 2007, whereas deliveries rose by 3%.

The market situation for virgin fibre board in Europe weakened slightly during the first quarter. Iggesund’s deliveries were 5% lower than
during the corresponding period the previous year. Prices were stable.