Holmen

Quarterly Report • Feb 7, 2013

Year-end report 2012

		Quarter			Full year
SEKm	4-12	3-12	4-11	2012	2011
Net turnover	4 276	4 230	4 630	17 852	18 656
Operating profit excl. items affecting comp.*	271	394	410	1 713	1 980
Operating profit	78	394	4 003	1 520	5 573
Profit after tax	902	249	2 939	1 853	3 955
Earnings per share, SEK	10.7	3.0	35.0	22.1	47.1
Return on equity, %	17.7	5.0	64.0	9.3	23.1

* Items affecting comparability in Q4 2012 refers to an impairment loss and restructuring costs in Holmen Paper (-193 million) and Q4 2011 revaluation of forest (+3 593 million).

• Profit after tax for 2012 was SEK 1 853 (2011: 3 955) million. The profit includes an impairment loss and restructuring costs of SEK -193 million and SEK +911 million in non-recurring tax effects. Profit after tax for the previous year includes SEK +2 648 million from the revaluation of forest.
• Earnings per share amounted to SEK 22.1 (47.1). Return on equity was 9.3 (23.1) per cent.
• The Board proposes a dividend of SEK 9 (8) per share.
• Operating profit excluding items affecting comparability totalled SEK 1 713 (1 980) million. The contribution from currency hedges fell, while the change in the value of forests rose.
• Operating profit for the fourth quarter decreased by SEK 123 million to SEK 271 million, excluding items affecting comparability. Costs showed a seasonal increase and exchange rates had a negative effect on profit.
• The market situation for paperboard was stable during the quarter, while demand for printing paper and sawn timber was weak.

Holmen Paper		Quarter			Full year
SEKm	4-12	3-12	4-11	2012	2011
Net sales	1 960	2 001	2 144	8 144	8 631
Operating costs	-1 831	-1 765	-1 955	-7 282	-7 629
EBITDA	128	237	189	862	1 002
Depreciation and amortisation according to plan	-192	-191	-192	-768	-774
Operating profit excl. items affecting comp.	-63	46	-3	94	228
Items affecting comparability*	-193	-	-	-193	-
Operating profit	-257	46	-3	-99	228
Investments	60	47	61	174	210
Operating capital	5 608	6 046	6 606	5 608	6 606
EBITDA margin, %**	7	12	9	11	12
Operating margin, %**	-3	2	0	1	3
Return on operating capital, %**	-4	3	0	2	3
Production, '000 tonnes	404	407	395	1 658	1 673
Deliveries, '000 tonnes	411	414	422	1 651	1 668

* Items affecting comparability refers to an impairment loss on non-current assets (SEK -153 million) and restructuring costs (SEK -40 million).

** Excluding items affecting comparability

Demand for printing paper in Europe remained weak in the fourth quarter. Printing paper deliveries to Europe declined by 8 per cent during the year. Newsprint deliveries declined by 10 per cent, while magazine paper fell by 7 per cent.

Deliveries by Holmen Paper totalled 1 651 000 tonnes in 2012, which is slightly lower than the previous year. Deliveries of the strategic products MF Magazine and book paper rose by 10 per cent.

Holmen Paper's operating profit for 2012 was SEK 94 (228) million, excluding items affecting comparability. Rationalisations, a better product mix and lower prices for recovered paper have to a large extent counterbalanced the lower contribution from currency hedges.

Compared with the third quarter, earnings fell by SEK 109 million to SEK -63 million, excluding items affecting comparability. Staff and energy costs saw a seasonal increase, while the strong Swedish krona had an impact on results. Profit for the fourth quarter includes an impairment loss of SEK -40 million on finished goods.

Operating profit for the fourth quarter was affected by an impairment loss on non-current assets (SEK -153 million) and a provision for restructuring costs (SEK -40 million), which are reported as items affecting comparability.

Holmen's Board of Directors has decided to invest SEK 200 million in energy efficiency improvements at Hallsta Paper Mill. Together with the forthcoming closure of a SC paper machine, this will lead to a reduction in the workforce of approximately 230 individuals. The cutbacks will be implemented gradually during autumn 2013 and spring 2014.

Iggesund Paperboard		Quarter			Full year
SEKm	4-12	3-12	4-11	2012	2011
Net sales	1 163	1 261	1 216	4 967	5 109
Operating costs	-993	-980	-953	-4 009	-3 923
EBITDA	170	281	263	959	1 186
Depreciation and amortisation according to plan	-100	-104	-82	-363	-323
Operating profit	70	177	182	596	863
Investments	248	436	380	1 523	1 120
Operating capital	6 177	6 084	5 041	6 177	5 041
EBITDA margin, %	15	22	22	19	23
Operating margin, %	6	14	15	12	17
Return on operating capital, %	5	12	15	10	19
Production, paperboard, '000 tonnes	117	129	112	492	471
Deliveries, paperboard, '000 tonnes	117	126	109	485	474

The market for SBB and FBB was stable during the quarter. Deliveries to Europe in 2012 were unchanged compared to 2011.

Iggesund Paperboard's deliveries amounted to 485 000 tonnes for the year, 11 000 tonnes higher than the previous year.

Operating profit for Iggesund Paperboard in 2012 was SEK 596 (863) million. The decline was attributable to lower contribution from currency hedges, while higher deliveries made a positive effect. Depreciation increased as a result of the new recovery boiler entering service.

Compared with the third quarter, profit fell by SEK 107 million to SEK 70 million. Deliveries declined and results were affected by the stronger Swedish krona. Cost increased as a result of some disruptions to production and seasonally higher staff costs.

The new biofuel boiler in Workington is planned to enter service in spring 2013. Together with the investment in the recovery boiler at Iggesund that entered service in spring 2012, the investment amounts to SEK 3.4 billion, of which SEK 2.8 billion has been paid out to date.

Holmen Timber		Quarter		Full year
SEKm	4-12	3-12	4-11	2012	2011
Net sales	256	264	249	1 129	875
Operating costs	-278	-255	-262	-1 139	-902
EBITDA	-22	8	-13	-10	-26
Depreciation and amortisation according to plan	-28	-31	-28	-120	-109
Operating profit	-50	-23	-40	-130	-136
Investments	3	4	31	9	365
Operating capital	1 416	1 436	1 507	1 416	1 507
EBITDA margin, %	-9	3	-5	-1	-3
Operating margin, %	-20	-9	-16	-12	-16
Production, '000 m3	168	147	157	651	560
Deliveries, '000 m3	155	151	145	660	487

The market for sawn timber remained weak and prices fell to some extent in the fourth quarter.

Deliveries by Holmen Timber totalled 660 000 cubic metres during the year, an increase of 173 000 cubic metres on the previous year as a result of higher deliveries from Braviken Sawmill.

Operating loss for Holmen Timber in 2012 was SEK -130 (-136) million. Lower raw material prices and a higher level of deliveries have had a positive effect on profit, but this effect has been counterbalanced by lower selling prices, the impact of the stronger krona and higher depreciation.

Compared with the third quarter, the operating loss increased by SEK 27 million to a loss of SEK 50 million. Selling prices were down slightly and costs were high as a result of difficult weather conditions at the end of the year.

Holmen Skog		Quarter		Full year
SEKm	4-12	3-12	4-11	2012	2011
Net sales	1 479	1 310	1 589	6 061	6 348
of which from own forests	422	323	387	1 383	1 457
Operating costs	-1 249	-1 252	-1 404	-5 448	-5 579
Depreciation and amortisation according to plan	-12	-8	-9	-33	-30
Earnings from operations	218	50	176	581	739
Change in value of forests*	31	120	3 593	350	3 593
Operating profit	249	170	3 769	931	4 332
Operating profit excl. items affecting comp*.	249	170	176	931	739
Investments	18	116	1	169	42
Operating capital	16 663	16 621	16 278	16 663	16 278
Return on operating capital, %**	6	4	5	6	6
Harvesting company forests, '000 m3	1 016	760	798	3 211	2 988

*Revaluation of forests amounts in Q4 2011 to SEK 3 593 million and is stated as items affecting comparability.

** Excluding item affecting comparability

Demand for both timber and pulpwood in Sweden remained weak in the fourth quarter. Market prices fell slightly in the autumn.

Holmen Skog's earnings from operations for 2012 amounted to SEK 581 (739) million. The decline was attributable to a fall of just over 10 per cent in selling prices and higher harvesting costs as a result of a storm in central Sweden at the turn of 2011/2012. Harvesting on own forests increased to 3 211 000 cubic meters, which is in line with the new harvesting plan. Operating profit, including a change in value of SEK 350 (3 593) million, amounted to SEK 931 (4 332) million.

Compared with the third quarter, earnings from operations rose by SEK 168 million to SEK 218 million, mainly as a result of a higher volume of harvesting and seasonally lower costs for silviculture. Earnings for the previous quarter were negatively affected by an impairment loss on the value of felling rights.

Holmen Energi	Quarter				Full year
SEKm	4-12	3-12	4-11	2012	2011
Net sales	460	358	440	1 728	1 807
of which from own hydro power	151	90	164	522	552
Operating costs	-352	-303	-319	-1 354	-1 383
Depreciation and amortisation according to plan	-5	-5	-5	-19	-19
Operating profit	103	50	116	355	406
Investments	11	5	5	26	16
Operating capital	3 261	3 198	3 253	3 261	3 253
Return on operating capital, %	13	6	14	11	13
Production of company hydro power, GWh	351	282	378	1 343	1 230

Holmen Energi's profit for 2012 was SEK 355 (406) million. With high levels of precipitation during the spring and the summer, production was around 20 per cent higher than a normal year and 10 per cent higher than the previous year. The average price of Holmen Energi's own production fell by just over 10 per cent as a result of lower market prices for electricity.

Compared with the third quarter, profit rose by SEK 53 million to 103 million, as a result of higher electricity prices and seasonally higher production. The levels in Holmen's water storage reservoirs were normal at the end of the period.

Net financial items and financing

Net financial items for 2012 amounted to SEK -227 (-244) million. During the year, interest expense of SEK 51 (35) million was capitalised in connection with major investment projects and consequently reduced the recognised interest expense. Just over half pertains to projects completed in June 2012. The average cost of borrowing was 4.1 (4.4) per cent.

Cash flow from operating activites totalled SEK 2 254 million. Cash flow from investing activites was SEK -1 920 million. SEK 672 million in dividends was paid during the year.

The Group's net financial debt increased by SEK 331 million to SEK 6 590 million in 2012. The debt/equity ratio was 0.32 and the equity/assets ratio was 56 per cent. Financial liabilities including pension provisions totalled SEK 6 967 million, SEK 4 866 million of which was represented by current liabilities. Cash, cash equivalents and financial receivables totalled SEK 377 million. The Group has unused long-term contractually agreed credit facilities of SEK 5 302 million, maturing in 2016-2017.

Equity

In 2012, the Group's equity increased by SEK 1 039 million to SEK 20 813 million. Profit for the period totalled SEK 1 853 million. The dividend paid was SEK 672 million. In addition, other comprehensive income totalled SEK -141 million.

Tax

Recognised tax for 2012 was SEK +559 million. Recognised tax has benefitted to the extent of SEK +911 million from changes to recognised deferred tax liabilities and assets resulting from a reduction in corporate tax rate in Sweden, as well as a reduction in recorded tax values of loss carry forwards. Excluding these items, recognised tax would have totalled SEK -352 million, corresponding to 27 per cent of profit before tax.

Hedging exchange rates and electricity prices

The Group hedges parts of future estimated net flows in foreign currencies. Operating profit for 2012 includes currency hedges of SEK 221 (570) million. At year-end, the Group had hedged its anticipated currency flows for the next four months. Longer-term hedges have been made for certain transactions. The fair value of currency hedges not yet recognized as income amounted to SEK 49 million at year-end.

About 90 per cent of the price of the Group's estimated net consumption of electricity in Sweden has been hedged for the 2013-2015 period, while approximately 50 per cent has been hedged for the 2016-2017 period and about 35 per cent for 2018-2021.

Investments

Cash flow from investing activities in 2012 was SEK -1 920 (-1 733) million. Scheduled depreciation and amortisation totalled SEK 1 313 (1 260) million. The majority of the investments were in the new recovery boiler and turbine at Iggesund Mill and the new biofuel boiler in Workington.

Personnel

The average number of employees (full-time equivalents) in the Group was 3 945 (4 041). The reduction is mainly attributable to cutbacks in Holmen Paper.

Share buy-backs

At the 2012 AGM, the Board received authorisation to purchase up to 10 per cent of the company's shares. No buy-backs took place during the period. The company already owns the 0.9 per cent of the shares outstanding, in order to secure the company's commitments pursuant to the call option scheme for employees.

Dividend

The Board proposes that the AGM to be held on 10 April 2013 approve a dividend of SEK 9 (8) per share, corresponding to 3.6 per cent of equity. The dividend proposal is based on an appraisal of the Group's profitability, future investment plans and financial position. The proposal record date for the dividend is 15 April 2013.

Nomination committee proposals to the 2013 AGM

Holmen's nomination committee proposes that the Board consist of eight (currently nine) members elected by the Annual General Meeting. The nomination committee proposes the re-election of the current board members: Fredrik Lundberg (who is also proposed for re-election as Chairman of the Board), Carl Bennet, Magnus Hall, Lars G Josefsson, Carl Kempe, Louise Lindh, Ulf Lundahl and Göran Lundin. Current board member Hans Larsson has declined re-election.

The committee also proposes that KPMG AB be reelected as the company's auditors.

The nomination committee's other proposals will be presented in the notice to the AGM.

Prior to the 2013 AGM, Holmen's nomination committee is made up of Mats Guldbrand, L E Lundbergföretagen, Alice Kempe, Kempestiftelserna, Hans Hedström, Carnegie Fonder and Fredrik Lundberg, Chairman. The chairman of the nomination committee is Mats Guldbrand.

Material risks and uncertainties

The Group's and the parent company's material risks and uncertainties relate primarily to changes in demand and the prices of its products, the cost of key input goods, and changes in exchange rates. For a more detailed description of material risks and uncertainties see Holmen's annual report for 2011 (pages 28-31 and Note 26).

Transactions with related parties

There were no transactions between Holmen and related parties that had a significant effect on the company's financial position and performance.

Accounting policies

The report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Market Act. For the parent company the report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which complies with Recommendation RFR 2 Accounting for Legal Entities, issued by the Swedish Financial Reporting Board. The parent company's and the Group's accounting policies used in the report are unchanged from the latest published annual report. The figures in tables are rounded off.

Stockholm 7 February 2013 Holmen AB (publ)

Magnus Hall President and CEO

The report has not been reviewed by the company's auditors.

Interim report for January–March 2013 will be published on 24 April 2013.

For further information please contact:

Magnus Hall, President and CEO, tel. +46 8 666 21 05 Anders Jernhall, CFO, tel. +46 8 666 21 22 Ingela Carlsson, Communications Director, tel. +46 70 212 97 12

Group income statement

		Quarter		Full year
Income statement, SEKm	4-12	3-12	4-11	2012	2011
Net sales	4 276	4 230	4 630	17 852	18 656
Other operating income	153	161	182	621	661
Change in inventories	-1	-42	-33	-34	176
Raw materials and consumables	-2 340	-2 290	-2 512	-9 802	-10 280
Staff costs	-671	-561	-674	-2 499	-2 477
Other operating costs	-898	-891	-920	-3 550	-3 580
Depreciation and amortisation according to plan	-339	-340	-319	-1 313	-1 260
Impairment losses	-153	-	-	-153	-
Change in value of biological assets	31	120	3 593	350	3 593
Interest in earnings of associates	20	8	56	47	84
Operating profit	78	394	4 003	1 520	5 573
Finance income	2	0	1	7	12
Finance costs	-56	-65	-59	-234	-256
Profit before tax	24	330	3 945	1 294	5 328
Tax	878	-81	-1 005	559	-1 374
Profit for the period	902	249	2 939	1 853	3 955
Earnings per share, basic, SEK	10.7	3.0	35.0	22.1	47.1
Earnings per share, diluted, SEK	10.7	3.0	35.0	22.1	47.1
Operating margin, % *	6.3	9.3	8.9	9.6	10.6
Return on capital employed, % *	4.0	5.9	6.7	6.5	8.5
Return on equity, %	17.7	5.0	64.0	9.3	23.1

Statement of comprehensive income,		Quarter		Full year
SEKm	4-12	3-12	4-11	2012	2011
Profit for the period	902	249	2 939	1 853	3 955
Other comprehensive income
Cash flow hedging	-3	-25	-19	-77	-523
Actuarial gains and losses in respect of pensions,
incl. special employer's contribution	-85	59	-99	-16	-184
Translation difference on foreign operation	36	-145	-113	-129	-4
Hedging of currency risk in foreign operation	-21	79	76	88	31
Tax attributable to other comprehensive income	20	-29	7	-6	174
Total other comprehensive income	-53	-61	-149	-141	-506
Total comprehensive income	850	188	2 790	1 711	3 448

* Excl. items affecting comparability.

Share structure
	Votes	No. of shares	No. of votes	Quota value	SEKm
A-share	10	22 623 234	226 232 340	50	1 131.2
B-share	1	62 132 928	62 132 928	50	3 106.6
Total number of shares		84 756 162	288 365 268		4 237.8
Holding of ow n B shares bought back		-760 000	-760 000
Total number of shares in issue		83 996 162	287 605 268
Issued call options, B shares*		758 300

* Exercise period May-June 2013. The exercise price is SEK 224.50 per share.

Group financial statement

	2012	2012	2011
Balance sheet, SEKm	31 December	30 September	31 December
Non-current assets
Intangible non-current assets	57	28	26
Property, plant and equipment	12 543	12 680	12 516
Biological assets	16 227	16 214	15 771
Interests in associates	1 821	1 832	1 815
Other shares and participating interests	13	13	13
Non-current financial receivables	39	57	82
Deferred tax assets	2	176	194
Total non-current assets	30 702	31 000	30 416
Current assets
Inventories	3 221	3 261	3 556
Trade receivables	2 290	2 507	2 366
Current tax receivable	75	85	26
Other operating receivables	419	309	694
Current financial receivables	31	54	46
Cash and cash equivalents	308	189	112
Total current assets	6 343	6 404	6 800
Total assets	37 046	37 403	37 217
Equity	20 813	19 963	19 773
Non-current liabilities
Non-current financial liabilities	1 746	3 102	3 319
Pension provisions	355	243	358
Other provisions	497	498	472
Deferred tax liabilities	5 504	6 657	6 630
Total non-current liabilities	8 102	10 501	10 780
Current liabilities
Current financial liabilities	4 866	3 638	2 822
Trade payables	2 245	2 246	2 655
Current tax liability	3	5	13
Provisions	68	120	157
Other operating liabilities	950	930	1 016
Total current liabilities	8 131	6 939	6 663
Total liabilities	16 233	17 440	17 443
Total equity and liabilities	37 046	37 403	37 217
Debt/equity ratio, times	0.32	0.33	0.32
Equity/assets ratio, %	56.2	53.4	53.1
Operating capital	32 905	33 128	32 469
Capital employed	27 403	26 647	26 032
Net financial debt	6 590	6 684	6 259
Pledged collateral	6	6	6
Contingent liabilities	100	100	118

	Full year
Change in equity, SEKm	2012	2011
Opening equity	19 773	16 913
Profit for the period	1 853	3 955
Other comprehensive income	-141	-506
Total comprehensive income	1 711	3 448
Dividends paid	-672	-588
Closing equity	20 813	19 773

Group cash flow statement

	Quarter			Full year
Cash flow analysis, SEKm	4-12	3-12	4-11	2012	2011
Operating activities
Profit before tax	24	330	3 945	1 294	5 328
Adjustments for non-cash items *	431	240	-3 364	1 057	-2 561
Paid income taxes	-112	-88	-161	-434	-557
Cash flow from operating activities
before changes in working capital	342	483	419	1 916	2 210
Cash flow from changes in working capital
Change in inventories	34	115	70	314	-237
Change in trade receivables and other operating receivables	91	165	11	241	64
Change in trade payables and other operating liabilities	37	-253	-35	-217	63
Cash flow from operating activities	505	509	465	2 254	2 101
Investing activities
Acquisition of non-current assets	-360	-622	-547	-1 975	-1 849
Disposal of non-current assets	5	5	40	18	58
Change in non-current financial receivables	17	13	17	37	58
Cash flow from investing activities	-337	-603	-490	-1 920	-1 733
Financing activities
Change in financial liabilities and current financial receivables	-50	172	34	537	139
Dividends paid to the shareholders of the parent company	-	-	-	-672	-588
Cash flow from financing activities	-50	172	34	-135	-448
Cash flow for the period	118	79	10	199	-80
Opening cash and cash equivalents	189	113	105	112	193
Exchange difference in cash and cash equivalents	0	-3	-2	-3	-1
Closing cash and cash equivalents	308	189	112	308	112

		Quarter		Full year
Change in net financial debt, SEKm	4-12	3-12	4-11	2012	2011
Opening net financial debt	-6 684	-6 645	-6 174	-6 259	-5 772
Cash flow from operating activities	505	509	465	2 254	2 101
Cash flow from investing activities (excl financial
receivables)	-354	-616	-507	-1 956	-1 791
Dividends paid	-	-	-	-672	-588
Actuarial revaluation of pension liability	-84	58	-100	-16	-182
Foreign exchange effects and changes in fair value	27	10	57	59	-28
Closing net financial debt	-6 590	-6 684	-6 259	-6 590	-6 259

* The adjustments consist primarily of depreciation according to plan, impairment losses, change in value of biological assets, change in provisions, interests in earnings of associated companies, currency effects and revaluations of financial instruments as well as capital gains/losses on sale of fixed assets.

The Parent company

Income statement, SEKm				Full year
	4-12	Quarter 3-12	4-11	2012	2011
Operating income	3 960	3 895	4 173	16 419	16 434
Operating costs	-3 539	-3 760	-4 281	-15 416	-15 616
Operating profit	421	135	-108	1 004	818
Net financial items	-3 118	200	162	-2 588	855
Profit after net financial items	-2 697	335	54	-1 584	1 673
Appropriations	457	12	74	495	-41
Profit before tax	-2 240	347	127	-1 089	1 632
Tax	382	-89	-42	95	-443
Profit for the period	-1 857	258	85	-994	1 189
Statement of comprehensive income,		Quarter			Full year
SEKm	4-12	3-12	4-11	2012	2011
Profit for the period	-1 857	258	85	-994	1 189
Other comprehensive income
Cash flow hedging	43	-49	-150	-70	-811
Tax attributable to other comprehensive income	-18	13	39	12	213
Total other comprehensive income	25	-36	-110	-58	-598
Total comprehensive income	-1 832	222	-25	-1 053	591

Balance sheet, SEKm	2012	2012	2011
		31 December 30 September 31 December
Non-current assets	18 029	20 361	20 324
Current assets	5 624	5 415	5 724
Total assets	23 653	25 776	26 048
Restricted equity	5 915	5 915	5 915
Non-restricted equity	3 514	5 346	5 238
Untaxed reserves	2 064	2 521	2 559
Provisions	1 262	1 301	1 389
Liabilities	10 898	10 693	10 946
Total equity and liabilities	23 653	25 776	26 048
Pledged collateral	6	6	6
Contingent liabilities	77	75	95

Sales to Group companies in 2012 accounted for SEK 89 (102) million of operating income.

Net financial items include the result from hedging equity in foreign subsidiaries totalling SEK 88 (31) million, Group contribution of SEK -1 293 (1 091) million and an impairment loss on participations in subsidiaries of SEK -1 373 million.

The parent company's investments in property, plant and equipment and intangible non-current assets totalled SEK 53 (33) million

The Group

			2012			2011			Full year
Quarterly figures, SEKm	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	2012	2011
Income statement
Net sales	4 276	4 230	4 569	4 778	4 630	4 518	4 787	4 721	17 852	18 656
Operating costs	-3 717	-3 623	-3 888	-3 996	-3 956	-3 697	-3 989	-3 858	-15 224	-15 501
Interest in earnings of associates	20	8	13	6	56	6	5	18	47	84
Depreciation and amortisation according to plan	-339	-340	-317	-317	-319	-319	-316	-306	-1 313	-1 260
Change in value of forests	31	120	111	88	-	11	6	-17	350	-
Items affecting comparability*	-193	-	-	-	3 593	-	-	-	-193	3 593
Operating profit	78	394	488	560	4 003	519	492	558	1 520	5 573
Net financial items	-54	-64	-52	-56	-58	-64	-64	-58	-227	-244
Profit before tax	24	330	436	504	3 945	455	428	501	1 294	5 328
Tax	878	-81	-123	-116	-1 005	-112	-125	-131	559	-1 374
Profit for the period	902	249	313	389	2 939	343	302	370	1 853	3 955
Diluted earnings per share, SEK	10.7	3.0	3.7	4.6	35.0	4.1	3.6	4.4	22.1	47.1
Net sales
Holmen Paper	1 960	2 001	2 090	2 093	2 144	2 102	2 215	2 170	8 144	8 631
Iggesund Paperboard	1 163	1 261	1 212	1 332	1 216	1 296	1 340	1 257	4 967	5 109
Holmen Timber	256	264	313	298	249	254	221	151	1 129	875
Holmen Skog	1 479	1 310	1 578	1 695	1 589	1 469	1 594	1 697	6 061	6 348
Holmen Energi	460	358	413	497	440	437	436	494	1 728	1 807
Elimination of intra-group net sales	-1 042	-964	-1 036	-1 136	-1 008	-1 038	-1 020	-1 047	-4 178	-4 113
Group	4 276	4 230	4 569	4 778	4 630	4 518	4 787	4 721	17 852	18 656
Operating profit/loss by business area**
Holmen Paper	-63	46	77	34	-3	105	70	57	94	228
Iggesund Paperboard	70	177	134	214	182	199	238	244	596	863
Holmen Timber	-50	-23	-24	-34	-40	-30	-38	-27	-130	-136
Holmen Skog	249	170	261	250	176	164	178	221	931	739
Holmen Energi	103	50	72	130	116	108	75	107	355	406
Group-w ide	-38	-27	-33	-35	-21	-26	-31	-44	-132	-120
Group	271	394	488	560	410	519	492	558	1 713	1 980
Operating margin, % **
Holmen Paper	-3.2	2.3	3.7	1.6	-0.1	5.0	3.1	2.6	1.2	2.6
Iggesund Paperboard	6.0	14.1	11.0	16.1	14.9	15.4	17.8	19.4	12.0	16.9
Holmen Timber	-19.6	-8.6	-7.5	-11.3	-16.2	-12.0	-17.2	-17.9	-11.5	-15.5
Group	6.3	9.3	10.7	11.7	8.9	11.5	10.3	11.8	9.6	10.6
EBITDA by business area**
Holmen Paper	128	237	270	227	189	300	262	251	862	1 002
Iggesund Paperboard	170	281	213	295	263	279	319	325	959	1 186
Holmen Timber	-22	8	7	-3	-13	2	-8	-8	-10	-26
Holmen Skog	230	58	157	169	185	160	179	245	614	769
Holmen Energi	108	55	77	134	121	112	80	111	374	424
Group-w ide	-35	-25	-30	-33	-16	-15	-24	-60	-123	-115
Group	579	615	694	789	729	838	808	864	2 676	3 240
Return on operating capital, % **
Holmen Paper	-4.3	3.0	4.9	2.1	-0.2	6.1	4.0	3.3	1.5	3.3
Iggesund Paperboard	4.6	11.9	9.5	16.3	14.9	17.0	20.9	22.3	10.4	18,7
Holmen Timber	-14.1	-6.2	-6.2	-8.8	-10.7	-8.1	-10.6	-8.4	-8.7	-9.5
Holmen Skog	6.0	4.1	6.4	6.2	4.9	5.2	5.7	7.0	5.7	5.7
Holmen Energi	12.8	6.3	9.0	16.0	14.3	13.3	9.2	13.2	11.0	12.5
Group	3.3	4.8	6.0	6.9	5.4	7.2	6.9	7.9	5.2	6.8
Key indicators
Return on capital employed, % **	4.0	5.9	7.5	8.7	6.7	9.0	8.7	9.9	6.5	8.5
Return on equity, %	17.7	5.0	6.4	7.9	64.0	8.1	7.3	8.8	9.3	23.1
Deliveries
New sprint and magazine paper, '000 tonnes	411	414	419	406	422	402	426	419	1 651	1 668
Paperboard, '000 tonnes	117	126	118	123	109	121	127	118	485	474
Saw n timber, '000 m³	155	151	181	173	145	141	123	78	660	487
Harvesting company forests, '000 m³	1 016	760	790	645	798	734	792	664	3 211	2 988
Production of company hydro pow er, GWh	351	282	332	378	378	342	234	276	1 343	1 230

* Items affecting comparability in Q4 2012 refers to an impairment loss on non-current assets and restructuring costs. Q4 2011 refers to revaluation of forest.

** Excl. items affecting comparability.

The Group

Full year review, SEKm	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Income statement
Net sales	17 852	18 656	17 581	18 071	19 334	19 159	18 592	16 319	15 653	15 816
Operating costs Interest in earnings of associates	-15 224 47	-15 501 84	-15 077 28	-15 191 45	-16 614 50	-15 637 12	-15 069 11	-13 287 20	-12 631 25	-12 306 -6
Depreciation and amortisation according to plan	-1 313	-1 260	-1 251	-1 320	-1 343	-1 337	-1 346	-1 167	-1 156	-1 166
Change in value of forests	350	-	52	16	-16	89	115	82	61	-
Items affecting comparability*	-193	3 593	264	-	-361	557	-	-	-	-
	1 520	5 573	1 596	1 620	1 051	2 843	2 303	1 967	1 952	2 338
Operating profit		-244	-208	-255	-311	-261	-247	-233	-206	-212
Net financial items	-227
Profit before tax	1 294	5 328	1 388	1 366	740	2 582	2 056	1 734	1 746	2 126
Tax	559	-1 374	-684	-360	-98	-1 077	-597	-478	-471	-675
Profit for the year	1 853	3 955	704	1 006	642	1 505	1 459	1 256	1 275	1 451
Diluted earnings per share, SEK	22.1	47.1	8.4	12.0	7.6	17.8	17.2	14.8	15.1	17.5
Operating profit by business area**
Holmen Paper	94	228	-618	340	280	623	754	631	487	747
Iggesund Paperboard	596	863	817	419	320	599	752	626	809	1 001
Holmen Timber	-130	-136	20	21	13	146	80	13	5	18
Holmen Skog	931	739	818	605	632	702	643	537	586	516
Holmen Energi	355	406	495	414	327	272	197	301	178	193
Group-w ide	-132	-120	-200	-178	-159	-56	-123	-141	-113	-137
Group	1 713	1 980	1 332	1 620	1 412	2 286	2 303	1 967	1 952	2 338
EBITDA by business area**
Holmen Paper	862	1 002	229	1 218	1 176	1 537	1 667	1 358	1 214	1 497
Iggesund Paperboard	959	1 186	1 141	780	688	954	1 108	976	1 152	1 335
Holmen Timber	-10	-26	49	52	47	169	104	38	28	40
Holmen Skog	614	769	794	616	674	639	556	483	553	545
Holmen Energi	374	425	516	435	346	289	214	319	196	210
Group-w ide	-123	-116	-198	-176	-160	-54	-115	-122	-96	-123
Group	2 676	3 240	2 531	2 925	2 771	3 534	3 534	3 052	3 047	3 504
Deliveries
New sprint and magazine paper, '000 tonnes	1 651	1 668	1 732	1 745	2 044	2 025	2 021	1 764	1 731	1 655
Paperboard, '000 tonnes	485	474	464	477	494	516	536	492	501	481
Saw n timber, '000 m³	660	487	285	313	266	262	248	229	195	189
Harvesting company forests, million m³	3.2	3.0	3.0	2.9	2.6	2.6	2.6	2.3	2.6	2.7
Production of company hydro pow er, GWh	1 343	1 230	1 145	1 090	1 128	1 193	934	1 236	1 054	867
Balance sheet
Non-current assets	30 664	30 334	26 028	25 694	26 506	26 153	25 354	25 793	23 381	20 940
Current assets	6 005	6 642	6 950	6 075	7 268	6 549	6 138	5 709	5 149	4 743
Financial receivables	377	240	454	407	828	541	649	712	459	675
Total assets	37 046	37 217	33 432	32 176	34 602	33 243	32 141	32 214	28 989	26 358
Equity	20 813	19 773	16 913	16 504	15 641	16 932	16 636	16 007	15 635	15 366
Deferred tax liability	5 504	6 630	5 910	5 045	4 819	5 482	5 030	5 143	5 177	4 557
Financial liabilities and interest-bearing provisions	6 967	6 499	6 227	6 091	8 332	6 518	6 634	7 351	5 335	4 044
Operating liabilities	3 762	4 313	4 382	4 536	5 809	4 310	3 841	3 713	2 842	2 391
Total equity and liabilities							32 141		28 989	26 358
	37 046	37 217	33 432	32 176	34 602	33 243		32 214
Cash flow
Operating activities	2 254	2 101	1 523	2 873	1 660	2 476	2 358	2 471	2 331	2 443
Investing activities	-1 920	-1 733	-1 597	-818	-1 124	-1 315	-947	-3 029	-1 195	-726
Cash flow after investments	334	368	-74	2 054	536	1 161	1 411	-558	1 136	1 717
Key indicators
Return on capital employed, % **	7	9	6	7	6	10	10	9	10	12
Return on equity, %	9	23	4	6	4	9	9	8	8	10
Debt/equity ratio	0.32	0.32	0.34	0.34	0.48	0.35	0.36	0.41	0.31	0.22
Dividend Ordinary dividend, SEK	9***	8	7	7	9	12	12	11	10	10

* Items affecting comparability in 2012 refers to an impairment loss on non-current assets (SEK -153 million) and restructuring costs (SEK -40 million). 2011 refers to revaluation of forest. 2010 refers to w rite-dow n of fixed assets (SEK -555 million), provisions for restructuring (SEK -231 million) and revaluation of forest (SEK +1050 million). 2008 refers to provisions and costs due to restructure and closure of mills and result effects from fire (SEK -361 million). 2007 relate to a w rite-dow n of goodw ill and tangible fixed assets of SEK -1 603 million w ithin Holmen Paper, a reversed w rite-dow n of SEK 60 million w ithin Holmen Timber, and a positive revaluation of forests by SEK 2 100 million w ithin Holmen Skog.

** Excl. items affecting comparability.

*** Proposed by the board

Stated in accordance w ith IFRS from 2004. As far as Holmen is concerned, the principal difference betw een IFRS and previous accounting principles is that forest assets are valued and stated in the accounts at fair value, that goodw ill is no longer depreciated according to plan, and that the fair value of financial assets and liabilities that are hedged are taken into the balance sheet.

Holmen in brief

Holmen's business concept is to develop and run profitable business within three product-oriented business areas for printing paper, paperboard and sawn timber as well as two raw material-oriented business areas for forest and energy. Europe is the key market.

The business area Holmen Paper manufactures printing paper for magazines, directories, advertising material, books and daily newspapers at two Swedish mills and one Spanish mill. Iggesund Paperboard produces paperboard for consumer packaging and graphics printing at one Swedish and one English mill. Holmen Timber produces sawn timber at two Swedish sawmills. Annual production capacity is 1 750 000 tonnes of printing paper, 530 000 tonnes of paperboard and 870 000 cubic metres of sawn timber.

Holmen Skog manages the Group's forests covering just over one million hectares. The annual volume harvested in company forests is some 3.2 million cubic metres. Holmen Energi is responsible for the Group's hydro power assets and for developing the Group's business within the energy sector. Normal yearly production amounts to some 1 100 GWh of electric power at wholly and partly owned hydro power stations in Sweden. Holmen Skog and Holmen Energi are also responsible for the Group's wood and electricity supply in Sweden.

Press and analyst conference

On the publication of the year-end report, a press and analyst conference will be held at 14.30 CET on Thursday, February 7. Venue: Jernkontoret, Kungsträdgårdsgatan 10, Stockholm. Holmen President and CEO Magnus Hall will present and comment on the report. The presentation will be held in English.

The conference is also directly available as a webcast on Holmen's website, www.holmen.com. You may also participate in the conference by telephone, by calling +46 (0)8 505 598 53 (within Sweden), +44 (0)203 043 24 36 (from the rest of Europe) or +1 866 458 40 87 (from the US) no later than 14.25 CET.

Financial reports

Week 12 2013	Annual report 2012 is published on the Group's website
24 April 2013	Interim report January-March 2013
14 August 2013	Interim report January-June 2013
24 October 2013	Interim report January-September 2013

_______________________________________________________________________________________ In its capacity as issuer, Holmen AB is releasing the information in this year-end report for 2012 in accordance with Chapter 17 of the Swedish Securities Market Act (2007:528). The information was distributed to the media for publication at 12.30 CET on Thursday February 7, 2013.

This is a translation of the Swedish year-end report of Holmen Aktiebolag (publ.). In the event of inconsistency between the English and the Swedish versions, the Swedish version shall prevail.