Financial statement January-December 2008

Quarter Full year
2008 2008 2007
IV III IV 2008 2007

Net 1 709 2 038 2 068 7 792 7 758
turnover,
MSEK

Operating -165 126 243 289 590
profit/
loss, MSEK

Operating -10 6 12 4 8
margin, %

Profit/loss -222 89 209 124 473
after
financial
items ,
MSEK

Net profit/ -98 63 153 152 336
loss, MSEK

Earnings -1.89 1.22 2.96 2.96 6.52
per share,
SEK

Full year 2008 compared with 2007
• Net turnover was MSEK 7,792 (7,758).
• Net profit was MSEK 152 (336), and earnings per share were SEK 2.96 (6.52).
• Operating profit was MSEK 289 (590), a decrease of 51% or MSEK 301.
• The operating margin was 4% (8).
• Cash flow from operating activities increased to MSEK 791 (730).

Final quarter 2008
• Operating loss was MSEK -165, compared with an operating profit of MSEK 126 in the third quarter.
• Markets for long-fibre sulphate pulp and sack paper deteriorated strongly, which led to a decision to implement a market-related production stop at the end of the quarter.
• A planned maintenance stop was carried out at Gruvön mill.
• A new three-year syndicated credit facility of MSEK 450 was agreed.

Proposed dividend
The Board proposes that this year’s profits be used to strengthen the company’s equity and no dividend be paid for 2008.

Outlook for 2009
• There is great uncertainty about market development. The situation for sack paper and market pulp weakened considerably in the final quarter, although other segments were relatively stable.
• A reduction in global inventories to normal levels is needed to restore profitability in the market pulp segment.
• There are good prospects for relatively stable development in packaging paper segments where Billerud works closely with end-users and is a leader in quality.
• Cost savings are continuing according to plan and are expected to amount to at least MSEK 250 annually by the end of 2009, while investment levels will be reduced to half during 2009.
• An improved currency situation and falling prices for wood materials will have positive effects over time.

For further information in connection with this report, please contact Per Lindberg, President and CEO, +46 8 553 335 01 or
+46 70 248 15 17 and Bertil Carlsén, CFO, +46 8 553 335 07 or +46 730 211 092

Billerud’s President Per Lindberg and CFO Bertil Carlsén will present the financial statement at a press conference for analysts and journalists today at 3 p.m. Location: Lecture Hall, Salénhuset, Norrlandsgatan 15, Stockholm.
You can see the conference at www.billerud.se