Restructuring at Braviken Paper Mill

Holmen Paper intends to cease production on PM 51 at Braviken Paper Mill outside
Norrköping, Sweden during the third quarter of 2013. The mill’s product mix will
be improved when the proportion of newsprint shrinks by 200 000 tonnes. At the
same time, staff will be cut by 180 persons.

“We’re forced to shut down parts of our newsprint production,” says Henrik
Sjölund, head of Holmen Paper. “Falling demand, pressure on prices, excessively
high costs of raw materials and, not least, the strong Swedish krona makes this
measure inevitable. It’s extremely regrettable that it has to affect so many of
our employees.”

The restructuring process is a further step in the strategy of concentrating
Holmen Paper’s Swedish operations on speciality paper.

“This spring, we’ll be introducing book paper from Braviken while further
refining the speciality products that are already being produced today,” says
Henrik Sjölund. “The measures are part of our change strategy in which we’re
developing unique speciality paper that makes the production processes of our
customers more cost efficient.”

Following the restructuring programme, Braviken Paper Mill is estimated to have
360 employees and two paper machines with an annual capacity of just under
600 000 tonnes of printing paper. When the changes currently underway at Holmen
Paper have been completed, it is estimated that the Swedish units will be able
to produce 1 150 000 tonnes of printing paper, of which 75 per cent will be
speciality paper, a portion that is expected to grow further. Production is 90
per cent based on virgin fibre. At the mill in Madrid just over 300 000 tonnes
of newsprint are produced, based on recovered paper and recovered water. The
combined workforce in the business area is estimated to amount to 1 000
employees.

Operating profit for the first quarter is expected to be affected by an
impairment loss on non-current assets (SEK 100 million) and a provision for
restructuring costs (SEK 40 million).

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For further information please contact:
Ingela Carlsson, communications director, Holmen, tel. +46 (0)70-212 97 12

In its capacity as issuer, Holmen AB is releasing the information in this press
release in accordance with Chapter 17 of the Swedish Securities Market Act
(2007:528). The information was distributed to the media for publication at
11:00 CET on Tuesday 19 March 2013.