BillerudKorsnäs divests its Baltic pellets operations SIA Latgran to AS Graanul Invest

BillerudKorsnäs has signed an agreement with AS Graanul Invest (“Graanul”)
concerning the sale of its shares in SIA Latgran (“Latgran” or the “Company”).
Latgran is a leading Latvian based pellets producer with annual volumes of 497
thousand tonnes and sales of EUR 73 million in 2014. BillerudKorsnäs’ ownership
in Latgran is 75 percent, and the remaining 25 percent is owned by Baltic
Resources Ab. The total consideration for 100 percent of the Company amounts to
EUR 104 million on a cash and debt free basis, corresponding to a multiple of 7x
Latgran’s EBITDA for 2014.

Per Lindberg, CEO of BillerudKorsnäs comments on the transaction:

“Latgran has shown a strong sales and earnings development during our ownership
and has been a great investment for BillerudKorsnäs. Meanwhile, BillerudKorsnäs
has increasingly evolved towards a more focused company, working with renewable
packaging material and solutions that has become our core business. The sale of
Latgran is in line with our strategy and will enable us to continue to develop
our core business. At the same time the transaction strengthens Latgran’s
ability to further develop its pellets business together with Graanul.”

The transaction is expected to close during July 2015, provided that certain
closing conditions are fulfilled.

SEB Corporate Finance and Superia Corporate Finance have acted as financial
advisers and Cederquist is the legal advisor to BillerudKorsnäs in connection
with the transaction.

For further information, please contact:

Per Lindberg, President and CEO +46 (0)8 553 335 00

Susanne Lithander, CFO, +46 (0)8 553 335 00

The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to
publish under the Swedish Securities Market Act. Submitted for publication at
11.00 CET, 22 May 2015.

About Graanul

AS Graanul Invest is a privately owned company, established in 2003, and focuses
on forestry, development of bioenergy and the production of renewable energy.
The company has since inception shown strong growth and is currently the biggest
producer of pellets in the Baltic countries and the second largest in Europe
with an annual production capacity of 853 thousand tonnes.

About Latgran

Latgran, established in 2004, is a leading producer of utility grade pellets in
Latvia. Latgran employs 123 people and produced 497 thousand tonnes of pellets
in its four factories and generated sales of approximately EUR 73 million in
2014. The vast majority of production is exports primarily to major electricity
and regional thermal energy producers in Northern and Western Europe.
BillerudKorsnäs provides packaging materials and solutions that challenge
conventional packaging for a sustainable future. We are a world leading provider
of primary fiber based packaging materials and have customers in over 100
countries. The company has 8 production sites in Sweden, Finland and the UK and
about 4300 employees in over 13 countries. BillerudKorsnäs has an annual
turnover of about SEK 21 billion and is listed on Nasdaq Stockholm.
www.billerudkorsnas.com