Financial statement January-December 2004

Quarter Full year 2004 2004 2003 IV III IV 2004 2003 Net 1 753 1 822 1 689 7 159 6 992 turnover, MSEK Operating 131 269 255 786 1 118 profit, MSEK Operating 8 15 15 11 16 margin, % Profit 116 251 238 712 1 042 after financial items, MSEK Net profit, 85 181 172 514 748 MSEK Earnings 1.65 3.46 3.10 9.75 13.13 per share, SEK · The operating profit for the full year 2004 was MSEK 786, down 30% on 2003, mainly due to unfavourable exchange rates. · Compared with the third quarter of 2004, the operating profit in the final quarter fell 51% to MSEK 131, mainly due to unfavourable exchange rates. · The return on capital employed in 2004 reached 17%, compared with 24% in 2003. Excluding the effects of currency hedging the return was 11%. · The operating cash flow during the year was MSEK 655 (992) and MSEK 55 during the final quarter. · Deliveries amounted to 1,371,000 tonnes, up 6% on last year. · The Board proposes a dividend of SEK 6.50 per share, the same as in 2003. The Board will also request authorisation to continue buying back the company’s shares. · The outlook for 2005 points to unchanged deliveries and higher pulp prices. Because of a recent storm in Sweden, wood prices are difficult to predict. Other costs are expected to remain unchanged. Changed exchange rates are expected to have a negative impact of MSEK 300 on results. For further information in connection with this report, please contact: Bert Östlund, President and CEO, +46 8 553 335 00 and Nils Lindholm, CFO, +46 8 553 335 00 or +47 70 217 5225 Billerud’s CEO Bert Östlund will present the Financial Statement at a press conference today at 4 p.m. Location: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm. The press conference will also be transmitted at www.billerud.com