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INTERIM REPORT JANUARY-JUNE 2016 2016-07-20 Per Lindberg, CEO and President, and Susanne Lithander, CFO

STABILITY AND PRODUCTION PLATFORM INVESTMENT

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Adjusted EBITDA reached SEK 884 million and EBITDA margin 16%

Sales volumes increased with 4% compared to Q2 last year

Production running according to plan towards the end of the quarter

Investment decisions during the quarter to strengthen position within MG kraft

paper

Stable markets in general, with exception for some segments

2% VOLUME GROWTH AND INCREASED SALES FOR COMPARABLE UNITS

5 489 5 439

11 123 10 796

0

2 000

4 000

6 000

8 000

10 000

12 000

Q2 15 Q2 16 Jan-Jun15

Jan-Jun16

3

kton SEKm

IMPROVING VOLUMES AND SALES

SALES

VOLUMES

* Excluding divested and acquired operations

5 284 5 389

10 647 10 746

0

2 000

4 000

6 000

8 000

10 000

12 000

Q2 15 Q2 16 Jan-Jun15

Jan-Jun16

NET SALES

+2%* vs. 2Q15

+1%* vs. 1H15

668 692

1 369 1 390

0

300

600

900

1 200

1 500

1 800

Q2 15 Q2 16 Jan-Jun15

Jan-Jun16

NET SALES*

SEKm

+4% vs. 2Q15

+2% vs. 1H15

YTD EBITDA MARGIN ON TARGET

4

897 884

1 948 1 901

0

400

800

1 200

1 600

2 000

2 400

Q2 15 Q2 16 Jan-Jun15

Jan-Jun16

SEKm

IMPROVING PROFITABILITY

Adjusted EBITDA

* Excluding divested and acquired operations

854 884

1 849 1 901

0

400

800

1 200

1 600

2 000

2 400

Q2 15 Q2 16 Jan-Jun15

Jan-Jun16

Adjusted EBITDA*

+4%* vs. 2Q15

+3%* vs. 1H15

SEKm

MEETING OUR FINANCIAL TARGETS STRONG OP. CASH FLOW, ROCE ABOVE TARGET, NET DEBT/EBITDA INCREASE DUE

TO DIVIDEND PAYOUT

323

631

1 056

786

0

300

600

900

1 200

1 500

Q2 15 Q2 16 Jan-Jun15

Jan-Jun16

5

SEKm

OP. CASH FLOW

12

14

0

4

8

12

16

20

Jan-Jun15

Jan-Jun16

1,92

1,24 1,32

0,00

0,50

1,00

1,50

2,00

2,50

Q2 15 Q1 16 Q2 16

%

ROCE NET DEBT/EBITDA

multiple

ROCE based on rolling 12 months

STRENGTHENING BILLERUDKORSNÄS POSITION IN MG KRAFT PAPER

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Production stop at

Tervasaari site

Q4

2016

Production start

Q3

2016

Q1

2017

Q2

2017 Q3

2017

Q4

2017

Q1

2018

Dismantling, transportation and setup of relocated machine

Installation of surface treatment capacity

Skärblacka production unit to become world leading center for MG kraft

paper production

Total CAPEX of SEK 1 280 million over three years CAPEX guidance for 2016: 1 300 + 120 SEKm

Considerable improvement of production efficiency and margins within

Packaging Paper business area

PACKAGING PAPER BUSINESS AREA Q2 2016

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Maintenance shutdowns and lower prices

impact profitability

Net sales SEK 2 085 million, -4% Q2-15

EBITDA SEK 266 million, -27% Q2-15

EBITDA margin 13%

Markets Stable prices in local currencies, except for weaker brown

sack paper market

Seasonally improved order situation for brown sack paper despite some current

market weakness

Stable order situation for white sack and kraft paper markets

Selective growth

CONSUMER BOARD BUSINESS AREA Q2 2016

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Improving production rates to provide volume

growth in H2

Net sales SEK 2 028 million, -1% Q2-15

EBITDA SEK 479 million, -1% Q2-15

EBITDA margin 24%

Markets Stable order situation and pricing in local currencies

Sales volumes lower than previous year du to production issues in Q4-15 and Q1-16

Volume growth

CORRUGATED SOLUTIONS BUSINESS AREA Q2 2016

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Continued strong performance despite temporarily lower

fluting demand

Net sales SEK 839 million, +16% Q2-15

EBITDA SEK 130 million, +38% Q2-15

EBITDA margin 15%

Markets Stable pricing and order books for liner

Temporarily lower seasonal demand and poor harvest season impact fluting prices

Value growth

OUTLOOK

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Demand and order situation for the third quarter is expected to be stable

with normal seasonal variances for all business areas.

Average prices in local currency in the third quarter are in general

anticipated to be stable with exceptions for some segments.

No changes to wood prices are anticipated for the third quarter.

Gävle and Karlsborg production units will have planned maintenance

shutdowns during the third quarter.

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WE

PACKAGING FOR A

Q&A

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