Billerud Financial Statement 2003

STOCKHOLM, Sweden, Jan. 27, 2004 (PRIMEZONE) -- FINANCIAL STATEMENT January-December 2003



                                 Quarter  Full year
                                   2003      2003     2002
                                    IV       III       IV    2003   2002

 Net turnover, MSEK                 1 689      1 728  1 735  6 992  7 067

 Operating profit, MSEK               255        282    341  1 118  1 214

 Operating margin, %                   15         16     20     16     17

 Profit after financial items,        238        262    312  1 042  1 116
 MSEK

 Net profit, MSEK                     172        186    224    748    800

 Earnings per share, SEK             3.10       3.28   3.85  13.13  13.25

-- Market demand during the final quarter of 2003 remained relatively weak.

-- The operating profit for the full year in 2003 was MSEK 1,118, down 8% on 2002, but slightly better than forecast in September's interim report.

-- Compared with the third quarter, the operating profit in the final quarter was down 10% at MSEK 255 mainly due to one-off costs.

-- The return on capital employed in 2003 was 24%, compared with 25% in 2002. Excluding the effects of currency hedging, the return was 13%.

-- The operating cash flow during the year was MSEK 992 (969), of which MSEK 326 was posted in the final quarter. . Deliveries during the year amounted to 1,288,000 tonnes, which was similar to the 2002 level.

-- The synergy target of MSEK 200 in higher profits, identified on the formation of Billerud, was achieved based on the annualised figure for December 2001.

-- The Board proposes a dividend of SEK 6.50 per share, same as in 2002. The Board will also propose that the share buy-back continues.

-- Pulp prices are expected to rise in 2004. There are signs of growing demand for containerboard. The market situation for packaging paper in general is expected to improve during the second half of 2004.

-- Billerud estimates that increased deliveries and expected price changes will not fully compensate for the negative effect of changes in currency rates.

Billerud Financial Statement 2003

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