Interim report January-June 2006

Quarter January-June 2006 2006 2005 II I II 2006 2005 Net 1 839 1 704 3 624 3 443 turnover, MSEK 1 785 Operating 107 20 171 86 profit/ loss, MSEK 64 Operating 6 1 5 2 margin, % 4 Profit/loss 85 3 128 52 after financial items, MSEK 43 Net profit/ loss, MSEK 61 32 2 93 37 Earnings 1.18 0.04 1.81 0.72 per share, SEK 0.63 January-June 2006 compared with same period in 2005 · Net turnover reached MSEK 3,624 (3,443). · Net profit was MSEK 93 (37). · Earnings per share were SEK 1.81 (0.72). · Improvements in market situation continued to enable price rises for certain products. · Operating profit reached MSEK 171 (86). The improvement was due to higher prices, the effects of currency hedging and lower fixed costs. · Two of three steam turbines for internal generation of electricity came as planned into operation at the end of the quarter. Outlook for full year 2006 § Programme of cost reductions for energy and organisation continues according to plan. § Effects of cost increases from higher electricity price will be countered in the second half of the year by energy investments coming into full operation, raising Billerud’s self-sufficiency in electricity from 30% to 60%. § Improved market situation should enable continued positive price development in the respective sales currencies. For further information in connection with this report, please contact: Per Lindberg, President and CEO, +46 8 553 335 00 or +46 70 248 15 17 and Bertil Carlsén, CFO, +46 8 553 335 00 or +46 730 211 092 Billerud’s President Per Lindberg and CFO Bertil Carlsén will present the interim report live at a press conference today at 3 p.m. Location: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm.