Year-end release 2004

12/31/2004 2:00 PM

The earnings presented below include Invik as of the third quarter of 2004. Pro forma figures include Invik as of 1 January 2004.

Net sales for the full year rose to SEK 6,649 (5,660) million. Pro forma net sales amounted to SEK 7,541 million.

Operating profit, excluding income from corporate development, amounted to SEK 782 (523) million. The pro forma operating profit amounted to SEK 844 million.

Net profit after taxes totaled SEK 662 (3,731) million. The comparative figures for 2003 include the reversal of depreciation in the amount of SEK 2,867 million. Pro forma net profit after taxes amounted to SEK 713 million.

Earnings per share were SEK 2.73 (16.94). Pro forma earnings per share were SEK 2.70.

Korsnäs Holding reported an operating profit of SEK 735 (527) million. The comparative figures for 2003 include a write-down of fixed assets at Korsnäs Packaging in the amount of SEK 331 million and a property tax refund to the company of SEK 51 million for previous years.

Invik (former Modern Finance Group) reported an increase in operating profit to SEK 179 (130) million, of which SEK 86 (-) million is included in the consolidated operating profit for the year.

The market value of the Group's holdings of listed securities amounted to SEK 21,898 million at 31 December 2004. Accordingly, market value was SEK 5,581 million higher than book value on the same date. On 16 February 2005, the market value was SEK 22,425 million.

The Board of Directors proposes that the Annual General Meeting of shareholders approve a non-cash dividend in the form of a distribution of all shares in Invik & Co. AB (former Modern Finance Group). Kinnevik has decided to hold SEK 235 million of convertible debentures, which could be converted into a combination of Invik class A and class B shares that at full conversion would provide Kinnevik with an ownership representing 14.6% of the capital. Depending on the combination of class A and class B shares, Kinnevik would hold about 25% of the votes. Information about Invik's capitalization in other respects as well as a more detailed description of the terms and conditions of the distribution will be provided in sufficient time prior to the Annual General Meeting on 12 May 2005.

In addition to the non-cash dividend of shares in Invik & Co. AB the Board of Directors also proposes a cash dividend of SEK 0.25 per share.
The full year-end report can be downloaded from the following link: