Year-End Report 2005

Setra Group AB (publ) is Sweden’s largest wood products company with annual sales totalling approximately SEK 5,400 million and some 1,400 employees.

Compared with third quarter of 2005
· Net sales amounted to SEK 1,432 million (1,210).
· Fourth-quarter earnings were charged with items affecting comparability totalling SEK -45 million (0), which relate to impairment losses on fixed assets.
· Operating loss amounted to SEK 48 million (15). Excluding items affecting comparability the operating loss was SEK 3 million (15).
· Loss after financial items amounted to SEK 56 million (24).
· Cash flow from operating activities was SEK 35 million (112).

Compared with 2004
· Net sales amounted to SEK 5,378 million (5,279).
· Earnings for the year were charged with items affecting comparability of SEK -61 million (0).
· Operating loss amounted to SEK 118 million (70). Excluding items affecting comparability the operating loss was SEK 57 million (70).
· Loss after financial items amounted to SEK 155 million (108).
· Cash flow from operating activities amounted to SEK -55 million (59).
· Loss after tax was SEK 93 million (106).

Future prospects
Prices for sawn timber are expected to increase further during 2006. This, combined with completed and planned earnings improvement measures, means that a significant improvement in earnings can be expected in 2006.