Interim Report January-September 2001

Report January-September 2001 * Profit after net financial items MSEK 15.1 (14.3) * Positive result for the third quarter for the first time since 1995 * Further strengthened financial position Sales The third quarter too has been characterized by a weak market. The general uncertainty about the development of the business cycle has probably affected the behaviour of customers. Official reports do however show a slight improvement towards the end of the quarter and orders received from the European paper industry are slightly above the equivalent figures for last year. However, they are considerably lower than the 1999 level. KLIPPAN's order situation is currently relatively weak, with one to two weeks' cover for most machines. Optimal cover is three to four weeks. Turnover for the period, MSEK 645.0, fell by MSEK 6.4 or 1.0% compared to the same period last year. This can be explained by the strategic aim of lower volumes for the near-bulk range and reduced sales to markets with low profitability. The weak Swedish krona and a favourable product mix have meant that KLIPPAN's average level of income has shown a positive development. Deliveries amounted to 67,600 tons, which was 8,500 tons (11%) lower than last year. The export percentage was 77% (77). Production Production of paper amounted to 67,800 tons (75,400). Pulp production amounted to 20,600 tons (22,300). The planned holiday stoppage was one week longer than last year. Result Operating profit for the group amounted to MSEK 25.4 (25.7) and profit after financial items amounted to MSEK 15.1 (14.3). The return on capital employed for the latest 12 month period was 10.5% (full year 2000 = 10.7%). The periodic result for 2000 included items affecting comparability amounting to MSEK 20.4. For the first time since 1995, KLIPPAN can account for a positive result for the third quarter. The improvement in the result excluding items affecting comparability for only the third quarter was MSEK 16.5 compared to last year. Reduced fixed costs are an important component of the improvement. The accumulated result excluding items affecting comparability has improved by MSEK 21.2. The fall in pulp prices has been arrested and suppliers have notified price increases of approximately 5% ahead of the final quarter of the year. These have not yet been completely accepted by the market. Exchange rate differences of MSEK 8.0 are accounted for under the heading "Other income and expenses" in the income statement. At the end of the third quarter, the number of employees at work was 505 (520). Changes to equity [REMOVED GRAPHICS] Investments Investments during the period amounted to MSEK 10.1 (16.1). MSEK 4.0 of these relate to measures aimed at improving personal and operational safety in the high voltage plant at the mills. The remaining investments are mainly of an efficiency and production enhancing character. Liquidity and financing The group's liquid assets, including the unused part of the bank overdraft facility, increased by MSEK 43.3 to MSEK 73.5. The interest- bearing net liability has fallen by MSEK 18.4 during the year. Solidity amounted to 36.8% (29.7) and the debt/equity ratio to 0.9 times (1.3). Cash flow analysis [REMOVED GRAPHICS] *Excluding unused part of bank overdraft facility [REMOVED GRAPHICS] Next report KLIPPAN's press release of year-end report for 2001 will be presented on 14 February 2002. Klippan, 25 October 2001 Bengt Östensson President/CEO The contents of this report have not been the subject of examination by the company's auditors. For further information, please contact the President, Bengt Östensson, tel +46(0)771-11 00 00 or +46(0)70 595 86 27 or Malin Dermé, Corporate Manager Finance, tel +46(0)771-11 00 00 or direct +46(0)435-292 13 or alternatively mobile +46(0)70 864 63 56. SUMMARY GROUP INCOME STATEMENT AND GROUP BALANCE SHEET [REMOVED GRAPHICS] * Reported annually '** Share prices as at 30.09.01 SEK 15.00, as at 31.12.00 SEK 14.50, as at 30.09.00 SEK 16.60 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/26/20011026BIT00250/bit0002.doc http://www.waymaker.net/bitonline/2001/10/26/20011026BIT00250/bit0002.pdf