INTERIM REPORT JANUARY-SEPTEMBER 2006

Full
Quarter January-September year
MSEK 3-06 2-06 3-05 2006 2005 2005

Net turnover 4 521 4 661 4 082 13 762 12 084 16 319
Operating
profit 610 485 590 1 714 1 403 1 973
Profit
after tax 382 303 371 1 090 859 1 256
Earnings
per share, SEK 4.5 3.6 4.4 12.9 10.1 14.8
Return on 9.5 7.5 9.6 9.0 7.4 8.0
equity, %

- The Group’s net turnover for January-September amounted to MSEK 13 762 (January-September 2005: 12 084). The increase is explained by higher deliveries, mainly from new capacity in Spain, and higher newsprint prices.

- Profit after tax was MSEK 1 090 (859).

- Earnings per share amounted to SEK 12.9 (10.1). Return on equity was 9.0% (7.4).

- Operating profit was MSEK 1 714 (1 403). The improvement is due to higher deliveries of paperboard and newsprint as well as increased newsprint prices.

The operating profit for the third quarter was MSEK 125 higher than for the second quarter, mainly due to higher production and seasonally lower personnel and maintenance costs. The costs of fibre and energy increased.

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

The market situation for virgin fibre board in Europe was very good during the third quarter. Iggesund Paperboard’s deliveries were 10% higher than for January-September 2005. Prices were stable.