Holmen’s interim report January

Quarter         January-June  Full year
SEKm               2-16     1-16    2-15   2016   2015      2015
Net sales          3 937    3 828  4 139  7 765  8 293     16 014
Operating profit     483      580    435  1 063    831      1 700
excl. items
affecting
comparability
Operating profit     483      348    435    831    831        769
Profit after tax     364      450    322    815    620      1 323
excl. items
affecting
comparability
Profit after tax     364      222    322    587    620        559
Return on capital    7.7      9.1    6.4    8.4    6.2        6.4
employed, %*
Return on equity,    7.1      4.3    6.1    5.7    5.8        2.6
%
Earnings per         4.3      2.6    3.8    7.0    7.4        6.7
share, SEK
Cash flow before     569      542    574  1 111  1 097      2 526
investments
Debt/equity ratio   0.22     0.21   0.29   0.22   0.29       0.23

* Excluding items affecting comparability, which are included in operating
profit at SEK -232 million in the first quarter of 2016 and SEK -931 million in
the fourth quarter of 2015.

  · Operating profit excluding items affecting comparability for the first half
-year of 2016 increased by SEK 232 million to SEK 1 063 million as a result of
higher profits in paper.
  · Compared with the first quarter, operating profit for the second quarter
decreased by SEK 97 million to SEK 483 million as a result of running in the
rebuilt board machine, seasonally lower hydro power production and earnings from
timber trading returning to normal levels.
  · Profit after tax for January–June amounted to SEK 587 million (620), which
corresponds to earnings per share of SEK 7.0 (7.4). Excluding items affecting
comparability, profit after tax amounted to SEK 815 million (620) and earnings
per share to SEK 9.7 (7.4).
  · Sale of the newsprint mill in Madrid was completed in the second quarter.
The sale represents a decisive step towards concentrating the paper business
into magazine paper and speciality products. The rebuilt board machine in
Workington reached full capacity towards the end of the quarter, while a further
stage in the expansion of pulp production at Iggesund Mill was completed. At mid
-year, forest and hydro power accounted for two thirds of the Group’s operating
capital.

 For further information please contact:
Henrik Sjölund, President and CEO, tel. +46 8 666 21 05
Anders Jernhall, EVP and CFO, tel.  +46 8 666 21 22
Ingela Carlsson, Communications Director, tel.  +46 70 212 97 12

This is information that Holmen AB is obliged to disclose under the Swedish
Securities Market Act and the Swedish Financial Instruments Trading Act. The
information was submitted for publication on 17 August 2016 at 12.20 CET.
Holmen’s interim report January–June 2016

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