The Billerud share

Share performance

The Billerud share has been listed on the Stockholmsbörsen (the Stockholm stock exchange) O-list since 20 November 2001. Since 1 July 2002 the company has been included in the Attract 40 segment, which is for O-list shares traded in the highest volumes. A round lot comprises 100 shares.

Number of shares and share capital

The share capital amounts to SEK 665 662 475 divided among 53 252 998 shares. The number of shares on the market is 51 342 998, before conversion of outstanding convertible promissory notes.

DISTRIBUTION OF SHARES 30 Dec 2005

Registered amount of shares					53 252 998
Bought-back shares in company ownership					-1 910 000
Shares on the market					51 342 998
Convertible debenture loan (on full conversion)					268 047
Shares on the market (after full conversion)					51 611 045

NUMBER OF SHARES ON THE MARKET
	2001	2002	2003	2004	2005
Average	62 740 998	60 404 501	56 989 733	52 735 464	51 342 998
Average after conversion	-	60 545 970	57 257 780	53 003 511	51 611 045
Closing day	62 740 998	57 909 998	54 127 998	51 342 998	51 342 998
Closing day after conversion	-	58 178 045	54 396 045	51 611 045	51 611 045

Dividend policy

The goal is that over a business cycle the dividend on average shall be 50 % of the net profit. Dividends to shareholders will, among other factors, be dependent on Billerud’s profit level, financial position and future development opportunities. The Board proposes that SEK 3.25 per share be paid to shareholders for the 2005 financial year.

Share performance

The Billerud share has progressed well since the listing. The last price paid in 2005 was SEK 104, which was 12 % lower than the last price paid (SEK 118.50) at the end of 2004. During the same period the Affärsvärlden forest index rose 4 % and the Affärsvärlden general index climbed 33 %.

During the year the highest price, SEK 115.50, was paid on 3 January, and the lowest, SEK 75, on 4 May. At the end of 2005, Billerud’s market capitalisation was MSEK 5 340.

Up to 15 February 2006 the price had risen to SEK 114, up 9 % on the final price paid in 2005. During the same period the Affärsvärlden forest index rose 10 % and the Affärsvärlden general index rose 3 %.

Turnover

The total number of shares traded during the year was 67.2 million. This represents 126 % of the total number of registered shares, which amounted to 53 252 998 on 30 December 2005. The average number of shares traded per trading day during 2005 was 266 663.

Share buy-back and write down of share capital

On 3 May 2005 the Annual General Meeting of Billerud shareholders voted to authorise the Board to make decisions regarding continued acquisitions of the company’s own shares. The purpose is to be able to adjust the company’s capital structure and thus contribute to a more effective utilisation of the company’s resources. However, no share buy-backs were made in 2005.

Convertible debentures

A convertible debenture loan scheme for employees of the Billerud Group in Sweden was implemented during May and June of 2002.

The conversion price is SEK 114 and the scheme runs until 20 June 2007. On full conversion, the total number of shares will increase by 268 047, which represents a dilution of 0.5 % of the total number of shares on the market.

Ownership structure

At the end of 2005 the total number of shareholders was 160 274 (166 937) and the proportion of foreign ownership was 34.4 % (31.0) excluding Billerud’s own bought-back shares (1 910 000). The other owners are private Swedish individuals 47.1 % (47.6) and private Swedish legal entities 18.5 % (20.6).

OWNERSHIP CATEGORIES, 30 December 2005*

			Number of shares		Holding/Votes,
					(%)
Swedish legal entities			9 496 606		18.5 %
Frapag Vermögensverwaltung GmbH			8 069 267		15.7 %
Other foreign legal entities			9 356 206		18.3 %
Total legal entities			26 922 079		52.5 %

Private individuals, foreign			225 186		0.4 %
Private individuals, Swedish			24 195 733		47.1 %
Private individuals, total			24 420 919		47.5 %

Total 30 Dec 2005			51 342 998		100.0 %

Source: VPC

* Excluding Billerud’s own shareholding (1 910 000)


*OWNERSHIP STRUCTURE 30 DECEMBER 2005**

Shareholding		No. of shares	%	No. of owners	%
1-100		9 450 488	17,7	135 198	84,4
101-500		4 275 699	8	18 527	11,6
500-10 000		10 594 138	19,9	6 260	3,9
10 001-50 000		4 511 810	8,5	209	0,1
50 001-		24 420 863	45,9	80	0
Total		53 252 998	100	160 274	100

* Including shares bought-back by Billerud (1 910 000)

Source: VPC

10 LARGEST SHAREHOLDERS 31 DECEMBER 2005

Billerud’s 10 largest owners as of 30 December 2005 (excluding Billerud’s own shareholding)
					Proportion of shares
			No. of shares		on market, %
Owner/manager/ deposit bank			(million)		(shares = votes)
Frapag Vermögensverwaltung GmbH			8		15,7
Sanderson Asset Management			2,5		4,8
SEB Funds/SEB Trygg Liv/Securities			2,1		4
Robur Fonder			0,7		1,3
DFA			0,6		1,2
Mellon			0,5		1
Södra Skogsägarna Ekonomisk Förening			0,5		1
Nordea			0,5		1
JP Morgan Chase			0,5		1
Handelsbanken Fonder			0,5		0,9
Total 10 largest			16,4		31,9
Total shares on the market			51,3		100

Source: VPC and Sanderson

KEY FIGURES PER SHARE

SEK per share. unless stated otherwise				IFRS
	2001	2002	2003	2004	2005
Profit/loss after tax	13,81	13,25	13,13	9,66	-3,56
Profit/loss after dilution	-	13,23	13,09	9,62	-3,56
Dividend (for each financial year)	3,5	6,5	6,5	6,5	3,25¹⁾
Dividend as % of
- share price (yield)	4,9	6,8	6	5,5	3,1
- profit	25,3	49,1	49,5	67,3	*
- closing equity	7,1	11,6	11,2	11	6,6
Cash flow	13,92	16,04	17,41	8,2	-12,8
Equity	49,3	55,82	58,19	59,16	49,2
Equity, after full conversion	-	56,04	59,42	59,41	49,52
Share price/equity, %	144	170	186	200	211
P/E ratio, times	5,1	7,2	8,3	12,3	neg
EV/EBITDA, times	3,8	4,4	4,7	6,4	36,8
Share price - year’s average	66,9	88,3	102,2	115,05	95,09
- at year’s end	71	95	108,5	118,5	104
- year’s highest	73	106	120,5	133	115,5
- year’s lowest	55	65	89,5	104	75

1) Board’s proposal
* Loss in 2005

Aktieutveckling 20 november 2001 - 15 februari 2006