Holmen’s interim report January

Quarter          January-September   Full Year
SEKm                       3-16      2-16   3-15    2016    2015           2015
Net sales                 3 810     3 937  4 032  11 575  12 325         16 014

Operating profit            520       483    493   1 583   1 324          1 700
excl. items affecting
comparability
Operating profit            520       483    493   1 352   1 324            769
Profit after tax            395       364    377   1 212     997          1 323
excl. items affecting
comparability
Profit after tax            395       364    377     982     997            559
Earnings per share, SEK     4.7       4.3    4.5    11.7    11.9            6.7
Operating margin, % *      13.7      12.3   12.2    13.7    10.7           10.6
Return on capital           8.4       7.7    7.3     8.4     6.5            6.4
employed, % *
Return on equity, %         7.7       7.1    7.2     6.3     6.3            2.6
Cash flow before            560       478    629   1 792   1 598          2 083
investments and working
capital
Debt/equity ratio          0.21      0.22   0.27    0.21    0.27           0.23

* Excluding items affecting comparability, which are included in operating
profit at SEK -232 million in 2016 and SEK -931 million in 2015. See also page
15.

  · Operating profit excluding items affecting comparability for
January–September 2016 increased by SEK 259 million to SEK 1 583 million as a
result of higher profits in paper.
  · Compared with the second quarter, operating profit for the third quarter
increased by SEK 37 million to SEK 520 million as a result of seasonally lower
costs.
  · Profit after tax for January–September amounted to SEK 982 million (997),
which corresponds to earnings per share of SEK 11.7 (11.9). Excluding items
affecting comparability, profit after tax amounted to SEK 1 212 million (997)
and earnings per share to SEK 14.4 (11.9).
  · Following the divestment of the mill in Madrid, the paper business has been
focused on magazine and book paper, which in the third quarter increased to
account for 85 per cent of paper sales. Investments made in paperboard provide
potential for production increases, but production disruptions led to paperboard
production being largely unchanged in the third quarter. Reduced costs and
higher prices have increased current year earnings from forests. Together with
hydro power, forests account for two-thirds of the Group’s capital employed.

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 information is information that Holmen AB is obliged to make public
pursuant to the EU Market Abuse Regulation and/or the Securities Markets Act.
The information was submitted for publication, through the agency of the contact
person set out above, on 26 October 2016 at 12.35 CET.
Holmen’s interim report January–September 2016

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