Financial Statement January-December 2006

Quarter Full year
2006 2006 2005
IV III IV 2006 2005

Net 1 867 1 878 1 742 7 369 6 823
turnover,
MSEK

Operating 176 205 81 552 -200
profit/
loss, MSEK

Operating 9 11 5 7 -3
margin, %

Profit/loss 150 179 60 457 -278
after
financial
items, MSEK

Net profit/ 90 129 61 312 -183
loss, MSEK

Earnings 1.75 2.52 1.19 6.08 -3.56
per share,
SEK


Full year 2006 compared with 2005
· Net turnover climbed 8% to reach MSEK 7,369 (6,823).
· Net profit increased to MSEK 312 (-183).
· Earnings per share were SEK 6.08 (-3.56).
· Operating profit soared to MSEK 552 (-200), a rise of MSEK 752.
· The operating margin was 7%, compared with 3% in 2005 before for one-
off costs of MSEK 400 in 2005. The improvement of 4% was due to better
prices and product mix, the positive effect of currency hedging and
lower fixed costs resulting from the energy investments and the Billerud
2007 savings project.

Final quarter 2006
· The market remained strong and prices developed positively.
· The currency situation deteriorated and a large amount of maintenance
work in the final quarter meant that earnings were down on the third
quarter.
· New financial targets were established.

Proposed dividend
· The Board proposes a dividend of SEK 3.50 (3.25) per share for 2006.

Outlook for 2007
· The market is expected to remain strong in 2007, with potential for
price increases in local currencies.
· At current prices, costs for wood raw materials are expected to rise
in the first quarter by around MSEK 50 compared with the fourth quarter
2006.
· The cost-savings programmes will result in continued cost reductions

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 PresidentPer Lindbergand 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. Follow the press
conference at www.billerud.com

Billerud Group