Upturn in market with positive outlook

CEO Per Lindberg comments on the development during Q1 2012:
“The order
situation has improved in our packaging paper segments and is now at a normal
level. However, our sales of SEK 2 291 million and operating margin of 6%
reflect a low level of prices. In local currency, prices for packaging paper
fell by around 2% in the first quarter, as a result of pressure on prices during
the previous quarter. We are today announcing an increase of EUR 80 per tonne in
the prices of our sack and kraft paper, with effect from 1 June.

As we
disclosed earlier, we reached agreement with UPM-Kymmene on 1 February
concerning the acquisition of its packaging paper operations in Pietarsaari and
Tervasaari, at a cost of EUR 130 million. The acquisition will complement our
current product offering and enable us to develop and strengthen our offering in
renewable, smarter packaging. Through the acquisition, we will also reduce our
pulp exposure, in turn bringing down the volatility in our results. It also
enables us to expand our EUR cost base. We are anticipating net annual synergies
amounting to SEK 30 million, and that earnings per share will rise once the
effects of the synergies are achieved. It is anticipated that the take-over of
the acquired business will be completed in the second quarter.”

Solna, 26
April 2012
Billerud Aktiebolag (publ)

Per Lindberg
President and CEO

For
further information please contact:
Per Lindberg, President and CEO, +46 8 553
335 01 or +46 70 248 15 17
Susanne Lithander, CFO, +46 8 553 335 07 or +46 73
037 08 74

The information is such that Billerud Aktiebolag (publ) is
obligated to publish under the Swedish Securities Market Act. Submitted for
publication at 07.47 CET on 26 April 2012.
Billerud – “The Natural Part in Smarter Packaging”. Packaging manufacturers and
brand owners are offered added value in the form of brand-strengthening,
productivity-boosting and environment-enhancing packaging solutions. Billerud
has a world-leading market position within primary fibre-based packaging paper.
Billerud has annual sales of around SEK 9 000 million and is listed on NASDAQ
OMX Stockholm. www.billerud.com