Interim report January- September 2014

(Tables included in attached PDF)

Third quarter 2014

  · Net sales increased with 9% and adjusted operating profit increased with 54%
compared to the third quarter 2013 due to synergy realisation and more
favourable currency exchange rates.
  · Compared to the previous quarter net sales increased 1% and adjusted
operating profit increased 11% due to improved exchanged rates and seasonally
lower personnel costs.
  · Operating profit was negatively impacted with approximately SEK 227 million
by periodic maintenance shutdowns in three of the production units.

January-September 2014 compared with the same period in 2013

  · Net sales has increased 5% due to 4% volume growth and more favourable
currency exchange rates.
  · The adjusted operating profit has improved with SEK 441 million primarily
due to synergies and a weakened SEK.
  · Synergies of approximately SEK 208 million have impacted the first nine
months compared to the same period last year.
  · Net debt/equity ratio has declined from 0.87 to 0.73.

Outlook

  · Demand and order situation is expected to decline temporarily for business
areas Consumer Board and Packaging Paper in the fourth quarter. The decline is
due to seasonal variations. Business area Containerboard is expected to stay on
the same level as in the third quarter. In addition, December 2014 is an
unusually short delivery month.
  · Average prices in local currency are anticipated to be stable.
  · Wood prices are expected to stay on current level for the fourth quarter of
2014.
  · Capital expenditures is estimated to be approximately SEK 1 550 million in
2014, which is SEK 150 million above the depreciation level. The capex level for
2015 will also be above the depreciation level.
  · Full synergies have been reached as of quarter three 2014.

Comments by BillerudKorsnäs’ CEO Per Lindberg:

Continued evidence of strength in third-quarter

“Our performance in the third quarter was very strong and I am pleased to see an
adjusted operating margin for the quarter at 10% and an adjusted operating
profit level of SEK 518 million. The quarter contained maintenance shutdowns at
three of our production units with a negative impact on profits of approximately
SEK 227 million. Year on year our net sales has grown 5% and our sales volume
has grown 4%. We have reduced our debts significantly thanks to a strong cash
flow and our Net debt/equity ratio is now down to 0.73.

In spite of an uncertain global environment, the overall market for packaging
materials has been good for all business areas during the quarter with stable
prices and demand. Business area Packaging Paper has kept the prices stable and
is seeing opportunities to raise prices for some of the segments in speciality
kraft papers. Business area Containerboard has, as expected, experienced
pressure from the increased market capacity on the liner side which is reflected
in lower sales volume but with continued strong margins. Business area Consumer
Board shows stability with sales volumes growing better than planned, 5%
compared to last year.

After several consecutive quarters with improved performance, we are temporarily
seeing some challenges in the fourth quarter. December will be very short from a
delivery perspective and business areas Packaging Paper and Consumer Board both
anticipates a seasonal volume decrease. Containerboard continues on a lower than
normal volume level for liner in the fourth quarter due to increased market
capacity.

During the third quarter we have announced investments in line with our asset
review and long term strategy. We are growing in accordance with our profitable
growth plans, 4% compared to last year. We have now reached our synergy targets
well ahead of plan. Even if we now close our synergy program, we will continue
our efforts with driving profit improvements in our daily work to improve our
efficiency and operational excellence. We see great opportunities to still learn
from each other within the organisation and to create value for our customers,
shareholders and employees.’’

BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will
present the interim report at a press and analyst conference at 10.00 CET on
Tuesday 28 October 2014. Venue: Tändstickspalatset, Västra Trädgårdsgatan 15,
Stockholm, Sweden.

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 in this report is such that BillerudKorsnäs AB (publ) is obliged
to disclose under the Swedish Securities Market Act and was submitted for
publication at 07.00 CET on 28 October 2014. This report has been prepared in
both a Swedish and an English version.

BillerudKorsnäs – Packaging manufacturers and brand owners are offered added
value in the form of brand-strengthening, productivity-boosting and environment
-enhancing packaging solutions. BillerudKorsnäs has a world-leading market
position within primary fibre-based packaging paper. The company has annual
sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm.
www.billerudkorsnas.com