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2014-10-24

Rottneros: INTERIM REPORT, JANUARY TO SEPTEMBER 2014

(For complete interim report see attached file)

* Income after net financial items amounted to SEK 52 million for the third
quarter of 2014, compared with a profit of SEK 31 million for the second
quarter of 2014 and a loss of SEK -91 million for the third quarter of
2013. Income after net financial items amounted to SEK 102 (-115) million
for the period January to September. The comparison period 2013 included
one-off items that amounted to SEK ‑92 million.

* A strong market meant that the average PIX price for NBSK continued to rise
during the third quarter and amounted to an average of USD 929. The price
increase in Swedish kronor amounts to seven per cent compared with the
second quarter of 2014. The price increase in SEK amounts to approximately
14 per cent compared with the third quarter of 2013.
* Cash flow from operating activities amounted to SEK 92 (47) million for the
third quarter of 2014. Net loan receivables amounted to SEK 44 (-9) million
on 30 September.
* Rottneros’ deliveries increased by five per cent over the year, while the
pulp market increased by one per cent.

Events after the end of the period

* Rottneros is selling the BCTMP equipment from Utansjö Bruk to
BillerudKorsnäs. The sale will affect the cash position positively with SEK
39 million.

CEO’S STATEMENT

Strong upward trend continues

It is with great delight and satisfaction that we are able to report a
continuing upward trend for the third quarter. The Group is showing an
operating profit of SEK 53 million, which is significantly better than the
levels reported in recent years. The operating profit for the first nine
months of the year amounted to SEK 106 million, representing an improvement
of SEK 125 million compared with the same period of 2013.

Good market prospects and favorable currency trends have paved the way for
this significant improvement to our results. In addition to this, internal
measures with a clear focus on structured working methods have brought good
order to our mills within a short period of time. This will also increase
production availability in the future.

We are continuing to work on a broad front to build a new Rottneros. Modern
and cohesive leadership represents a critical piece of the jigsaw for
achieving market leadership and sustainable profitability. By creating common
core values for all workers, we are laying the foundation for long-term
success. For this reason we launched an advanced leadership training program
for all managers within the Group after the summer. The next phase of this
work will involve our entire workforce. So far our ’Core value project’ has
been successful and has great prospects of proving to be of decisive
importance for our future. Our yearly maintenance stop in Vallvik was
conducted during October and it went successfully according to plan. The cost
of the stop will affect the result for the fourth quarter.

It is also pleasing that the process of selling the production equipment from
Utansjö Bruk has borne fruit after several years' work. The sale of the
equipment to BillerudKorsnäs, which is to be completed during the fourth
quarter, is expected to provide a cash injection of SEK 39 million.

The normal seasonal decline in August never emerged, and the strong demand
reached new heights in September. The market for softwood kraft pulp
continues to be strong and our order books are well filled for the fourth
quarter. Projects are being conducted at both mills that will further
increase productivity following the maintenance shutdown in the autumn.

To conclude, I am excited about the forthcoming quarter and the opportunities
that our extensive program of change will yield for the future.

Carl-Johan Jonsson

For more information, please visit Rottneros’ updated
website,www.rottneros.com.

This report has not been reviewed by the company’s auditors.

Stockholm, 23 October 2014

Carl-Johan Jonsson

Chief Executive Officer and President

Rottneros discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. This information
was submitted for publication on 24 October 2014 at 08.30. A Swedish and an
English version of this report have been drawn up. The Swedish version shall
prevail in the event of differences between the two reports.

Författare NGN

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