Year-end Report for 2004

Quarter Full year MSEK 4-04 3-04 4-03 2004 2003 Net 4,042 3,824 3,940 15,653 15,816 turnover Operating 335 535 507 1,860 2,338 profit Profit 281 478 462 1,654 2,126 after financial items Profit 238 338 295 1,211 1,451 after tax Earnings 2.81 3.99 3.69 14.49 18.14 per share (before dilution), SEK Earnings 2.81 3.99 3.55 14.36 17.48 per share (after dilution), SEK Return on 7.0 10.1 7.8 8.4 9.7 equity, % - The Group’s net turnover amounted to MSEK 15,653 (2003: 15,816). - The profit after tax was MSEK 1,211 (1,451). - Earnings per share after dilution amounted to SEK 14.36 (17.48). Return on equity was 8.4 % (9.7). - The operating profit amounted to MSEK 1,860 (2,338). Higher delivery volumes had a favourable effect on the result, while lower prices, currency effects and higher costs had an unfavourable effect. The fourth quarter operating result declined by MSEK 200 in relation to the previous quarter’s result, to MSEK 335, mainly due to high costs in connection with the rebuilding and maintenance stops at Iggesund Paperboard, seasonally higher costs and adverse currency effects. - The Board proposes to pay a dividend of SEK 10 per share. Last year an ordinary dividend of SEK 10 and an extra dividend of SEK 30 per share were paid. - Demand for newsprint and magazine paper has continued to increase. Holmen Paper’s deliveries rose by 5 % in relation to the previous year. The European price negotiations for 2005 are still going on and are expected to result in higher prices. Demand for virgin fibre-based paperboard remained stable. Iggesund Paperboard’s deliveries increased by 4 % in relation to the previous year. 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