1. YEAR-END REPORT | JANUARY-DECEMBER 2011Per Lindberg, CEO and President, and Susanne Lithander, CFO | 1 February, 2012 1

2. AGENDA Highlights Development by Business Area Financials Outlook Acquistion of UPM-Kymmenes packaging paper business 2

3. HIGHLIGHTS IN 2011 6% increase in net sales vs. 2010 10% operating margin Return on capital employed of 20% Significant price increases achieved Price increase of MSEK 943 (local currency) vs. 2010 4% increase in sales volumes vs. 2010 Higher wood costs Changed market environment in H2 2011 3

4. INCREASED RESULTS FOR PACKAGING PAPEROperating profit breakdown, MSEK Operating profit breakdown, %1 200 100% 1 037 9781 000 80% 800 66% 688 60% 84% 600 820 +19% 40% 400 200 276 20% 27% 64 6% 0 73 94 0% 7% 10% 2010 2011 2010 2011 Currency hedging, other, etc Currency hedging, other, etc Market Pulp Market Pulp Packaging paper Packaging paper 4

5. HIGHLIGHTS IN Q4 2011 Weak earnings Operating profit of MSEK 75, margin 4% Price pressure ~4% lower prices in local currency for packaging paper ~125 USD/tonne price drop for NBSK pulp in Europe Periodical maintenance stop at Gruvn mill Order situation for packaging paper at lower levels than normal Uncertainty about demand, signs of more stable development Market-related shutdowns increasingly implemented vs. Q3 2011 Seasonally higher fixed costs vs. Q3 2011 5

6. BUSINESS AREAS & SEGMENTSPACKAGING &SPECIALITY PAPER PACKAGING BOARDSKraft & Sack Paper S/C Fluting, Liner, Liquid Board MARKET PULP Nordic Bleached Softwood Kraft PulpNote: Graph shows sales breakdown per business area for 2011. 6

7. PACKAGING & SPECIALITY PAPERMarket situation in Q4 2011 Order situation stable but at an low level Customers continued to focus on reducing stock levels Market-related production shutdowns implemented to restore market balance Price pressure continued Price level in local currency deteriorated for all products vs. Q3 2011 7

8. PACKAGING & SPECIALITY PAPERFinancials Q4 2011 vs. Q3 2011 160 Operating profit down by MSEK 78 140 Operating profit, MSEK 120 Mainly due to lower prices but also to 100 higher costs 80 60 40 20 0 Q4 -10 Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q4 -11 Q3 -11 Q4 -10 FY 2011 Net sales, MSEK 941 1,056 1,020 4,293 Operating profit, MSEK 65 143 131 450 Operating margin, % 7 14 13 10 8

9. PACKAGING BOARDSMarket situation in Q4 2011 Order situation at lower levels than normal Order situation continued to weaken Customers reduced their stocks to a greater extent vs. Q3 2011 Price pressure continued Lower prices in local currency for most products vs. Q3 2011 9

10. PACKAGING BOARDSFinancials Q4 2011 vs. Q3 2011 140 Operating profit down by MSEK 59 120 Operating profit, MSEK Increased costs and lower sales 100 volumes due to the periodic 80 maintenance shutdown at Gruvn 60 40 ~60% of the total cost for the 20 shutdown 0 Lower prices Q4 -10 Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q4 -11 Q3 -11 Q4 -10 FY 2011 Net sales, MSEK 644 696 648 2,772 Operating profit, MSEK 60 119 122 370 Operating margin, % 9 17 19 13 10

11. MARKET PULPMarket situation in Q4 2011 Pulp market continued to weaken vs. Q3 2011 Several non-integrated NBSK producers implemented market related production shutdowns Price in Europe fell to ~825 USD/tonne at end of Q4 2011 from ~950 USD/tonne at end of Q3 2011 11

12. MARKET PULPFinancials Q4 2011 vs. Q3 2011 60 Operating profit down by MSEK 54 50 Operating profit, MSEK 40 An improved currency situation 30 compensated partly for less 20 favourable prices in local currency 10 0 Write-down of the value of finished -10 Q4 -10 Q1 -11 Q2 -11 Q3 -11 Q4 -11 goods stocks due to lower pulp price -20 -30 Q4 -11 Q3 -11 Q4 -10 FY 2011 Net sales, MSEK 416 465 450 1,752 Operating profit, MSEK -24 30 53 64 Operating margin, % -6 6 12 4 12

13. Q4 2011 IN SUM Weak earnings Price pressure Periodical maintenance stop at Gruvn mill Order situation for packaging paper at lower levels than normal Market-related shutdowns increasingly implemented vs. Q3 2011 Seasonally higher fixed costs vs. Q3 2011 13

14. FINANCIAL INFORMATION 14

15. QUARTERLY KEY FIGURES Q4 -11 Q3 -11 Q4 -10Net sales, MSEK 2,086 2,327 2,279Operating profit, MSEK 75 296 326Operating margin 4% 13% 14%Profit/share, SEK 0.44 2.03 2.19Net debt/equity ratio -0.05 -0.03 0.03Sales volume (ktonnes) 315 335 323 15

16. OPERATING PROFIT BRIDGE Q4 2011 vs. Q3 2011 350 296 300 -26 250 200 MSEK 150 -111 -7 -24 100 +10 75 -63 50 0 Operating Sales & Selling prices Effects of Change in Change in Change in Operating profit production (in respective exchange rate variable costs fixed costs depreciation profit Q3 2011 volumes* sales currency) fluctuations, Q4 2011 incl. hedging* Includes product mix. 16

17. FULL YEAR KEY FIGURES FY 2011 FY 2010 vs. 2010Net sales, MSEK 9,343 8,828 +6%Operating profit, MSEK 978 1,037 -6%Operating margin 10% 12% -2p.p.Profit/share, SEK 6.63 6.84 -3%Net debt/equity ratio -0.05 0.03 +0.08Sales volume (ktonnes) 1,354 1,307 +4% 17

18. OPERATING PROFIT BRIDGE FY 2011 vs. FY 2010 2 500 +943 2 000 1 500 MSEK -608 1 037 +22 -243 978 1 000 -4 -92 -77 500 0 Operating Sales & Selling prices Effects of Change in Change in Change in Strike Operating profit production (in respective exchange rate variable costs fixed costs depreciation compensation profit 2010 volumes* sales fluctuations, 2011 currency) incl. hedging* Includes product mix. 18

19. FINANCIAL TARGETSOrganic growth Operating margin Return on investment 25%16% 14%14% 12% 20%12% 10%10% 15% 8%8% 6% 10%6% 4%4% 5%2% 2%0% 0% 0% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011-2% Return on capital employed Operating margin WACC before tax Organic growth 19

20. FINANCIAL TARGETS Net debt/equity ratio Dividend 100% 4.0 60% 3.5 80% 50% 3.0 60% 40% 2.5 SEK 40% 2.0 30% 20% 1.5 20% 1.0 0% 2007 2008 2009 2010 2011 10% 0.5 -20% 0.0 0% 2007 2008 2009 2010 2011 Dividend per share, SEK Net debt/equity ratio Dividend payout ratio, % 20

21. CASH FLOW GENERATION FROM OPERATION MSEK Q4 -11 Q3 -11 Q4 -10 2011 2010 Operating surplus, etc 238 464 583 1,604 1,625 Change in working capital, etc. 48 83 -115 -113 -147 Net financial items, taxes, etc. -12 -16 -7 -219 -85 Cash flow from operating 274 531 461 1,272 1,393 activities Current net investments -178 -121 -81 -510 -331 Operating cash flow 96 410 380 762 1,0621) Minus equals increase in net debt 21

22. MARKET PRICES AFFECTING RESULTElectricity index (Sweden*) Wood price indexSource: Nordpool. *Price area Sweden Source: Billerud 22

23. MARKET PRICES AFFECTING RESULTMarket pulp (USD/t) TCW index*Note: Average price for the quarter Source: Riksbanken *Total Competitiveness Weights Index 23

24. CURRENCY SITUATION Profit effect of net flow hedging MSEK 44 (79) for Q4 2011 and MSEK 190 (344) for FY 2011 Market value of outstanding contracts not relating to accounts receivable was MSEK 17* Average hedged currency rates (share of net flow) Hedge level 12 months forward: Q1 -12 Q2 -12 Q3 -12 Q4 -12 Total 12 months EUR 54% 9.35 9.19 9.22 9.19 9.26 (92%) (68%) (41%) (17%) (54%) USD 53% 6.65 6.71 6.79 6.90 6.71 (92%) (60%) (41%) (19%) (53%) GBP 50% 10.59 10.56 10.68 10.75 10.61 (85%) (60%) (38%) (15%) (50%)Note: Data in table and graph are as of 31 December 2011. *As of 31 December 2011. 24

25. OUTLOOK 25

26. OUTLOOK At present there is uncertainty about the order situation for the Group in the first part of 2012. However, the market is showing signs of more stable development Continued price pressure is expected for the packaging paper segments at the beginning of 2012 If required, market-related production shutdowns will be implemented in order to restore the balance in the market 26

27. THE NATURAL PART INSMARTER PACKAGINGACQUISITION OF UPM-KYMMENES PACKAGING PAPER OPERATION | FEB 2012 27

28. ACQUISITION OF UPM-KYMMENES PACKAGINGPAPER OPERATION Billerud Finland Oy, a wholly-owned subsidiary to Billerud AB, has signed an agreement with UPM-Kymmene (UPM) to acquire UPMs packaging paper operation in Pietarsaari and Tervasaari, Finland Transaction amount is MEUR 130 (SEK ~1.2bn) Expected to be cash flow positive from closing Earnings per share is expected to increase with approximately SEK 1.20 including fully realized synergies The transaction is subject to approval by relevant competition authorities 28

29. EXCELLENT STRATEGIC FIT Strengthen Billeruds platform within smarter packaging Complements Billeruds existing product offerings Strengthen the development of future renewable packaging solutions World-class asset and product quality Significantly reduced pulp market exposure Around 85% of the current market pulp exposure virtually hedged Will decrease volatility in Billerud earnings Favourable impact on currency exposure Substantially increased cost base in EUR 29

30. SYNERGIES AND FINANCIALS Annual net synergies of approximately MSEK 30 Full effect from end of 2013 Non-recurring costs in 2012 of approximately MSEK 22 Allows for increased flexibility in production structure and product mix Financials 2011 for the acquired operation Sales: approximately MEUR 220 (SEK 2bn) EBITDA: approximately MEUR 18 (MSEK 165) EBITDA margin: approximately 8% 30

31. ACQUIRED OPERATION PM1 in UPMs Pietarsaari mill, Finland PM1 is physically integrated with one of the largest European pulp mills, which remains in UPMs ownership White and brown sack and kraft paper 200,000 tonnes in annual production capacity PM7 in UPMs Tervasaari mill, Finland PM7 is non-integrated White and brown kraft paper 100,000 tonnes in annual production capacity Very efficient and well invested assets with low reinvestment needs Around 185 employees 31

32. LONG-TERM AGREEMENTS SIGNED The acquired operation will continue to be dependent on supply of raw materials from UPM Long-term agreements have been signed on commercial terms between UPM and Billerud, including: Pulp Steam Electricity Mill services Pulp at market price 32

33. FULLY FINANCED Transaction financed by a combination of cash at hand and debt via existing credit facilities Net debt-to-equity (ND/E) ratio will increase by 24 percentage points following the transaction After closing of the transaction, the Groups net debt-to-equity is expected to be below the financial target of 0.6-0.9 ND/E, all other things being equal 33

34. Q&A We believe in embracing what is important to our customers, our company,our employees and the environment. By always giving back more than we take, we are building a company for future generations. 34