Holmen

Quarterly Report • May 8, 2012

		Quarter		Full year
SEKm	1-12	4-11	1-11	2011
Net turnover	4 778	4 630	4 721	18 656
EBITDA	789	729	864	3 240
Operating profit*	560	410	558	1 980
Profit after tax*	389	291	370	1 307
Earnings per share, SEK*	4.6	3.5	4.4	15.6
Return on equity, % *	7.9	6.8	8.8	7.8

*Excluding revaluation of forest in Q4 2011: + SEK 3 593 million before tax (SEK 2 648 million after tax).

• Profit after tax for January–March 2012 was SEK 389 million (January–March 2011: SEK 370 million).
• Earnings per share reached SEK 4.6 (4.4). Return on equity totalled 7.9 per cent (8.8).
• Operating profit reached SEK 560 million (558). Earnings from forest and energy increased while the lower outcome from currency hedges had a negative impact on printing paper and paperboard.

Compared with the fourth quarter, operating profit increased by SEK 150 million following improvements in all business areas.

Demand for paperboard in Europe improved in the first quarter but remained weak for printing paper and sawn timber.

Holmen Paper		Quarter		Full year
SEKm	1-12	4-11	1-11	2011
Net sales	2 093	2 144	2 170	8 631
Operating costs	-1 866	-1 955	-1 919	-7 629
EBITDA	227	189	251	1 002
Depreciation and amortisation according to plan	-193	-192	-194	-774
Operating profit	34	-3	57	228
Investments	28	61	49	210
Operating capital	6 433	6 606	6 937	6 606
EBITDA margin, %	11	9	12	12
Operating margin, %	2	0	3	3
Return on operating capital, %	2	0	3	3
Production, '000 tonnes	422	395	446	1 673
Deliveries, '000 tonnes	406	422	419	1 668

Demand for printing paper in Europe was weak in the quarter. Magazine paper deliveries to Europe declined 4 per cent, and 9 per cent for newsprint. The prices were largely unchanged.

Deliveries by Holmen Paper totalled 406 000 tonnes in the first quarter, slightly lower than the same period last year, as a result of the shutdown of a paper machine in Madrid in spring 2011. The weak demand in Europe involved certain production limitations. Deliveries of the strategic MF Magazine and book products continued to rise.

Operating profit for January–March amounted to SEK 34 million (57). Costs have been cut following implemented rationalisation initiatives, while the contribution from currency hedges declined to SEK 60 million (120).

Profit increased by SEK 37 million compared to the fourth quarter as a result of a rise in production and a drop in maintenance costs.

Iggesund Paperboard		Quarter		Full year
SEKm	1-12	4-11	1-11	2011
Net sales	1 332	1 216	1 257	5 109
Operating costs	-1 037	-953	-932	-3 923
EBITDA	295	263	325	1 186
Depreciation and amortisation according to plan	-80	-82	-81	-323
Operating profit	214	182	244	863
Investments	468	380	196	1 120
Operating capital	5 476	5 041	4 433	5 041
EBITDA margin, %	22	22	26	23
Operating margin, %	16	15	19	17
Return on operating capital, %	16	15	22	19
Production, paperboard, '000 tonnes	127	112	126	471
Deliveries, paperboard, '000 tonnes	123	109	118	474

Demand for SBB and FBB improved from a weak level at the end of last year. Deliveries to Europe increased by 8 per cent compared with the low levels in the fourth quarter, but were 6 per cent lower than in the first quarter of 2011.

Iggesund Paperboard's deliveries amounted to 123 000 tonnes in the first quarter, which was 4 per cent more than the same period last year.

Iggesund Paperboard's operating profit for January–March was SEK 214 million (244). Deliveries increased, but costs were higher and the contribution from currency hedges declined to SEK 60 million (80).

Compared to the outcome for the fourth quarter, profit rose by SEK 32 million. Deliveries increased from a low level, while the contribution from currency hedges fell.

The two major investment projects, a new recovery boiler and turbine at Iggesund Mill and a new biofuel boiler at Workington, are proceeding as planned. SEK 1.8 billion out of a total of SEK 3.4 billion has been paid and operation is estimated to start in June 2012 and spring 2013, respectively. The projects will cut energy costs and improve the mills' competitiveness.

Holmen Timber		Quarter		Full year
SEKm	1-12	4-11	1-11	2011
Net sales	298	249	151	875
Operating costs	-300	-262	-159	-902
EBITDA	-3	-13	-8	-26
Depreciation and amortisation according to plan	-31	-28	-19	-109
Operating profit	-34	-40	-27	-136
Investments	1	31	172	365
Operating capital	1 548	1 507	1 396	1 507
EBITDA margin, %	-1	-5	-5	-3
Operating margin, %	-11	-16	-18	-16
Return on operating capital, %	-9	-11	-8	-9
Production, '000 m3	173	157	110	560
Deliveries, '000 m3	173	145	78	487

The market for sawn timber remained weak and prices were largely unchanged.

Holmen Timber's deliveries amounted to 173 000 cubic metres in the first quarter, which is around 20 per cent higher than in the preceding quarter following higher deliveries from Braviken Sawmill.

Holmen Timber reported an operating loss of SEK -34 million (-27) for January–March. The weak outcome was due to raw material prices remaining high and a weak market with pressure on prices. Only half of the depreciation for Braviken Sawmill was charged to the earnings of the first quarter of 2011.

Operating profit increased by SEK 6 million compared to the fourth quarter as a result of a rise in deliveries and lower costs.

4

Holmen Skog		Quarter		Full year
SEKm	1-12	4-11	1-11	2011
Net sales	1 695	1 589	1 697	6 348
of which from own forests	282	387	320	1 457
Operating costs	-1 526	-1 404	-1 452	-5 579
Depreciation and amortisation according to plan	-7	-9	-7	-30
Earnings from operations	162	176	238	739
Change in value of forests*	88	3 593	-17	3 593
Operating profit	250	3 769	221	4 332
Operating profit excl. items affecting comp*.	250	176	221	739
Investments	25	1	-2	42
Operating capital	16 261	16 278	12 627	16 278
Return on operating capital, %	6	5	7	6
Harvesting company forests, '000 m3	645	798	664	2 988

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

Demand for timber in Sweden was normal in the first quarter, but weaker for pulpwood. Market prices decreased.

Holmen Skog's operating profit for January–March amounted to SEK 250 million (221). Earnings from operations (before changes in the value of forests) were SEK 162 million (238). Selling prices were around 10 per cent lower. Harvesting costs were unusually high because of a heavy storm in the mid-Sweden region at the turn of the year. The

value change was SEK 88 million (-17) and corresponds to a normal value change for forest following the upward revaluation carried out in the fourth quarter.

Compared to the fourth quarter, earnings from operations were down by SEK 14 million. The effect of lower prices and low harvesting were counteracted by low silviculture costs.

Holmen Energi		Quarter		Full year
SEKm	1-12	4-11	1-11	2011
Net sales	497	440	494	1 807
of which from own hydro power	169	164	138	552
Operating costs	-363	-319	-382	-1 383
Depreciation and amortisation according to plan	-5	-5	-5	-19
Operating profit	130	116	107	406
Investments	2	5	0	16
Operating capital	3 216	3 253	3 245	3 253
Return on operating capital, %	16	14	13	13
Production of company hydro power, GWh	378	378	276	1 230

Holmen Energi's operating profit for January–March was SEK 130 million (107). Production was normal for the season but almost 40 per cent higher than the same period of 2011. Lower market prices for electricity brought down the average price of Holmen Energi's own production by around 10 per cent.

Operating profit rose by SEK 14 million from the fourth quarter following slightly higher prices for the own production.

The levels in Holmen's water storage reservoirs were slightly above normal at the end of the period.

Net financial items and financing

Net financial items for January–March amounted to SEK -56 million (-58). During the period, interest expense of SEK 16 million (5) was capitalised in connection with major investment projects and consequently reduced the recognised interest expense. The cost of borrowing was 4.4 per cent (4.4).

Cash flow from operating activities totalled SEK 541 million. Cash flow from investment activities totalled SEK -533 million. Dividend of SEK 672 million was paid to shareholders after the end of the quarter.

During January–March, the Group's financial net debt decreased by SEK 52 million to SEK 6 207 million. The debt/equity ratio was 0.32 and the equity/assets ratio 52 per cent. Financial liabilities including pension provisions totalled SEK 6 435 million, of which SEK 2 831 million were current liabilities. Cash, cash equivalents and financial receivables totalled SEK 228 million. The Group has unused long-term contractually agreed credit facilities of SEK 5 410 million, maturing in 2016–2017.

Equity

In January–March, the Group's equity decreased by SEK 325 million to SEK 19 448 million. Profit for the period totalled SEK 389 million, and dividend approved but unpaid totalled SEK 672 million. In addition, other comprehensive income totalled SEK -42 million. This is mainly attributable to the fact that transaction hedges with a positive fair value matured during the period.

Tax

Recognised tax for January–March was SEK -116 million. The recognised tax in relation to profit before tax was 23 per cent.

Hedging exchange rates and electricity prices

The Group hedges parts of future estimated net flows in foreign currencies. Operating profit for January–March 2012 includes currency hedges of SEK 126 million (213).

At the end of the quarter, the Group's expected currency flows versus the SEK were hedged for the next four months. The fair value of currency hedges not yet entered as income amounted to SEK 42 million at the end of the quarter.

About 90 per cent of the price of the Group's estimated net consumption of electricity in Sweden has been hedged for 2012 and 2013, while approximately 80 per cent has been hedged for the 2014–2015 period and about 30 per cent for 2016–2021.

Investments

Cash flow from investment activities was SEK -533 (-388) million in the January–March period. Scheduled depreciation and amortisation totalled SEK 317 million (306). The majority of the investments were in the new recovery boiler and turbine at Iggesund Mill and the new biofuel boiler at Workington.

Personnel

The average number of employees (full-time equivalents) in the Group was 3 940 (4 108). The reduction is mainly attributable to cutbacks at Holmen Paper.

Share buy-backs

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

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.

Stockholm, 8 May 2012 Holmen AB (publ)

Magnus Hall President and CEO

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

The interim report for January–June 2012 will be published on 14 August 2012.

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, Public Relations Director, tel. +46 70 212 97 12

Accounting principles

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.

The Group

	Quarter			Full year
Income statement, SEKm	1-12	4-11	1-11	2011
Net sales	4 778	4 630	4 721	18 656
Other operating income	144	182	193	661
Change in inventories	11	-33	240	176
Raw materials and consumables	-2 679	-2 512	-2 859	-10 280
Staff costs	-622	-674	-607	-2 477
Other operating costs	-849	-920	-825	-3 580
Depreciation and amortisation according to plan	-317	-319	-306	-1 260
Change in value of biological assets	88	3 593	-17	3 593
Interest in earnings of associates	6	56	18	84
Operating profit	560	4 003	558	5 573
Finance income	2	1	5	12
Finance costs	-58	-59	-63	-256
Profit before tax	504	3 945	501	5 328
Tax	-116	-1 005	-131	-1 374
Profit for the period	389	2 939	370	3 955
Earnings per share, basic, SEK	4.6	35.0	4.4	47.1
Earnings per share, diluted, SEK	4.6	35.0	4.4	47.1
Operating margin, % *	11.7	8.9	11.8	10.6
Return on capital employed, % *	8.7	6.7	9.9	8.5
Return on equity, %	7.9	64.0	8.8	23.1

		Quarter
Statement of comprehensive income, SEKm	1-12	4-11	1-11	Full year 2011
Profit for the period	389	2 939	370	3 955
Other comprehensive income
Cash flow hedging	-71	-19	-91	-523
Actuarial gains and losses in respect of pensions,
incl. special employer's contribution	38	-99	-21	-184
Translation difference on foreign operation	-28	-113	-73	-4
Hedging of currency risk in foreign operation	14	76	34	31
Tax attributable to other comprehensive income	5	7	21	174
Total other comprehensive income	-42	-149	-130	-506
Total comprehensive income	347	2 790	240	3 448

* Excl. items affecting comparability.

The Group

	2012	2011
Balance sheet, SEKm	31 March	31 December
Non-current assets
Intangible non-current assets	25	26
Property, plant and equipment	12 481	12 516
Biological assets	15 879	15 771
Interests in associates	1 820	1 815
Other shares and participating interests	13	13
Non-current financial receivables	74	82
Deferred tax assets	183	194
Total non-current assets	30 474	30 416
Current assets
Inventories	3 485	3 556
Trade receivables Current tax receivable	2 481 210	2 366 26
Other operating receivables	453	694
Current financial receivables	52	46
Cash and cash equivalents	101	112
Total current assets	6 782	6 800
Total assets	37 256	37 216
Equity	19 448	19 773
Non-current liabilities
Non-current financial liabilities	3 298	3 319
Pension provisions	307	358
Other provisions	471	472
Deferred tax liabilities	6 635	6 630
Total non-current liabilities	10 711	10 780
Current liabilities
Current financial liabilities	2 831	2 822
Trade payables	2 352	2 655
Current tax liability	19	13
Provisions	139	157
Other operating liabilities*	1 756	1 016
Total current liabilities	7 097	6 663
Total liabilities	17 807	17 443
Total equity and liabilities	37 256	37 216
Debt/equity ratio, times	0.32	0.32
Equity/assets ratio, %	52.2	53.1
Operating capital	32 107	32 469
Capital employed	25 655	26 032
Net financial debt	6 207	6 259
Pledged collateral	6	6
Contingent liabilities	106	118

* Included in Other operating liabilities as of the 31st March 2012 is an unpaid dividend of MSEK 672.

Change in equity, SEKm				Jan-March
				2012	2011
Opening equity				19 773	16 913
Profit for the period				389	370
Other comprehensive income				-42	-130
Total comprehensive income				347	240
Dividends paid				-672	-588
Closing equity				19 448	16 564
Share structure
Share	Votes	No. of shares	No. of votes	Quota value	SEKm
A	10	22 623 234	226 232 340	50	1 131.2
B	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.

	Quarter			Full year
Cash flow analysis, SEKm	1-12	4-11	1-11	2011
Operating activities
Profit before tax	504 194	3 945 -3 364	501 281	5 328 -2 561
Adjustments for non-cash items *
Paid income taxes	-241	-161	-66	-557
Cash flow from operating activities
before changes in working capital	457	419	716	2 210
Cash flow from changes in working capital
Change in inventories	95	70	-93	-237
Change in trade receivables and other operating receivables	33	11	-44	64
Change in trade payables and other operating liabilities	-43	-35	-138	63
Cash flow from operating activities	541	465	441	2 101
Investing activities
Acquisition of non-current assets	-541	-547	-425	-1 849
Disposal of non-current assets	2	40	10	58
Change in non-current financial receivables	7	17	27	58
Cash flow from investing activities	-533	-490	-388	-1 733
Financing activities
Change in financial liabilities and current financial receivables	-18	34	-66	139
Dividends paid to the shareholders of the parent company	-	-	-	-588
Cash flow from financing activities	-18	34	-66	-448
Cash flow for the period	-10	10	-13	-80
Opening cash and cash equivalents	112	105	193	193
Exchange difference in cash and cash equivalents	-1	-2	-2	-1
Closing cash and cash equivalents	101	112	178	112
Change in net financial debt, SEKm		Quarter		Full year

Change in net financial debt, SEKm	1-12	4-11	1-11	2011
Opening net financial debt	-6 259	-6 174	-5 772	-5 772
Cash flow from operating activities	541	465	441	2 101
Cash flow from investing activities (excl financial
receivables)	-540	-507	-415	-1 791
Dividends paid	-	-	-	-588
Actuarial revaluation of pension liability	38	-100	-20	-182
Foreign exchange effects and changes in fair value	13	57	14	-28
Closing net financial debt	-6 207	-6 259	-5 752	-6 259

* The adjustments consist primarily of depreciation according to plan and write-downs of fixed assets, 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

		Quarter		Full year
Income statement, SEKm	1-12	4-11	1-11	2011
Operating income	4 372	4 173	4 060	16 434
Operating costs	-4 118	-4 281	-3 719	-15 616
Operating profit	254	- 108	341	818
Net financial items	283	162	153	855
Profit after net financial items	536	54	494	1 673
Appropriations	30	74	-24	-41
Profit before tax	567	127	470	1 632
Tax	-89	-42	-119	-443
Profit for the period	478	85	351	1 189
Statement of comprehensive income,		Quarter		Full year
SEKm	1-12	4-11	1-11	2011
Profit for the period	478	85	351	1 189
Other comprehensive income
Cash flow hedging	-67	-150	-199	-811
Tax attributable to other comprehensive income	18	39	52	213
Total other comprehensive income	-49	-110	-146	-598
Total comprehensive income	429	-25	204	591

Balance sheet, SEKm	2012	2011
		31 March 31 December
Non-current assets	20 223	20 324
Current assets	5 815	5 724
Total assets	26 038	26 048
Restricted equity	5 915	5 915
Non-restricted equity	4 995	5 238
Untaxed reserves	2 529	2 559
Provisions	1 378	1 389
Liabilities	11 222	10 946
Total equity and liabilities	26 038	26 048
Pledged collateral	6	6
Contingent liabilities	97	95

Sales to Group companies accounted for SEK 25 million (27) of operating income for January–March.

Net financial items include the result from hedging equity in foreign subsidiaries totalling SEK 14 million (34) and Group contributions of SEK 102 million (173).

The parent company's investments in property, plant and equipment and intangible non-current assets totalled SEK 9 million (1).

	2012		Full year
Quarterly figures, SEKm	Q1	Q4	2011 Q3	Q2	Q1	2011
Income statement
Net sales	4 778	4 630	4 518	4 787	4 721	18 656
Operating costs	-3 996	-3 956	-3 697	-3 989	-3 858	-15 501
Interest in earnings of associates	6	56	6	5	18	84
Depreciation and amortisation according to plan	-317	-319	-319	-316	-306	-1 260
Change in value of forests	88	-	11	6	-17	-
Items affecting comparability*	-	3 593	-	-	-	3 593
Operating profit	560	4 003	519	492	558	5 573
Net financial items	-56	-58	-64	-64	-58	-244
Profit before tax	504	3 945	455	428	501	5 328
Tax	-116	-1 005	-112	-125	-131	-1 374
Profit for the period	389	2 939	343	302	370	3 955
Diluted earnings per share, SEK	4.6	35.0	4.1	3.6	4.4	47.1
Net sales
Holmen Paper	2 093	2 144	2 102	2 215	2 170	8 631
Iggesund Paperboard	1 332	1 216	1 296	1 340	1 257	5 109
Holmen Timber	298	249	254	221	151	875
Holmen Skog	1 695	1 589	1 469	1 594	1 697	6 348
Holmen Energi	497	440	437	436	494	1 807
Elimination of intra-group net sales	-1 136	-1 008	-1 038	-1 020	-1 047	-4 113
Group	4 778	4 630	4 518	4 787	4 721	18 656
Operating profit/loss by business area**
Holmen Paper	34	-3	105	70	57	228
Iggesund Paperboard	214	182	199	238	244	863
Holmen Timber	-34	-40	-30	-38	-27	-136
Holmen Skog	250	176	164	178	221	739
Holmen Energi	130	116	108	75	107	406
Group-w ide	-35	-21	-26	-31	-44	-120
Group	560	410	519	492	558	1 980
Operating margin, % **
Holmen Paper	1.6	-0.1	5.0	3.1	2.6	2.6
Iggesund Paperboard	16.1	14.9	15.4	17.8	19.4	16.9
Holmen Timber	-11.3	-16.2	-12.0	-17.2	-17.9	-15.5
Group	11.7	8.9	11.5	10.3	11.8	10.6
EBITDA by business area**
Holmen Paper	227	189	300	262	251	1 002
Iggesund Paperboard	295	263	279	319	325	1 186
Holmen Timber	-3	-13	2	-8	-8	-26
Holmen Skog	169	185	160	179	245	769
Holmen Energi	134	121	112	80	111	425
Group-w ide	-33	-16	-15	-24	-60	-115
Group	789	729	838	808	864	3 240
Return on operating capital, % **
Holmen Paper	2.1	-0.2	6.1	4.0	3.3	3.3
Iggesund Paperboard	16.3	14.9	17.0	20.9	22.3	18,7
Holmen Timber	-8.8	-10.7	-8.1	-10.6	-8.4	-9.5
Holmen Skog	6.2	4.9	5.2	5.7	7.0	5.7
Holmen Energi	16.0	14.3	13.3	9.2	13.2	12.5
Group	6.9	5.4	7.2	6.9	7.9	6.8
Key indicators
Return on capital employed, % **	8.7	6.7	9.0	8.7	9.9	8.5
Return on equity, %	7.9	64.0	8.1	7.3	8.8	23.1
Deliveries
New sprint and magazine paper, '000 tonnes	406	422	402	426	419	1 668
Paperboard, '000 tonnes	123	109	121	127	118	474
Saw n timber, '000 m³	173	145	141	123	78	487
Harvesting company forests, '000 m³	645	798	734	792	664	2 988
Production of company hydro pow er, GWh	378	378	342	234	276	1 230

* Items affecting comparability in the forth quarter 2011 refers to revaluation of forest.

** Excl. items affecting comparability.

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

* Items affecting comparability in 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.

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 interim report, a press and analyst conference will be held at 14.30 CET on Tuesday, May 8. Venue: IVA Konferenscenter, Grev Turegatan 16, 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 2012

• 14 August 2012 Interim report January-June
• 26 October 2012 Interim report January-September
• 7 February 2013 Year-end report 2012

In its capacity as issuer, Holmen AB is releasing the information in this interim report for January-March 2012 in accordance with Chapter 17 of the Swedish Securities Market Act (2007:528). The information was distributed to the media for publication at 13.20 CET on Tuesday May 8 2012.

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.