Setra Group interim report January-june 2005

Setra Group AB (publ) is Sweden’s largest wood products company with annual sales totalling approximately

SEK 5,300 million and some 1,400 employees. The Group is divided into two business areas: Setra Sawn

Products and Setra Wood Products. Setra Sawn Products comprises 12 sawmills with an annual production of approximately 2.3 million cubic

metres. External sales amount to approximately SEK 3,900 million. About 35% of annual volume is sold in the

Swedish market. Exports are primarily to the UK, Denmark, Germany, Spain, France, Norway, Italy and Japan.

Setra Wood Products comprises five production units and eight distribution units. Annual sales total

approximately SEK 1,400 million.

Setra Group AB has approximately 2,400 shareholders. The largest shareholders are Sveaskog AB with 50%,

Lantbrukarnas Ekonomi AB (LRF) with approximately 25% and Skogsägarna Mellanskog ekonomisk förening

with approximately 24%. Other shareholders own approximately 1% of the shares.

Compared with first quarter of 2005

- Net sales amounted to SEK 1,504 million (1,232).

-  Operating profit amounted to SEK 2 million (-57).

-  Operating profit for the first quarter was charged with SEK -17 million in items affecting

comparability.

-  Loss after financial items amounted to SEK -9 million (-66).

-  Cash flow from operating activities amounted to SEK 44 million (-246).

-  The improved earnings are mainly attributable to increased volume and improved margins

within the Sawn Products business area.

Compared with the first half of 2004

-  Net sales amounted to SEK 2,736 million (2,723).

-  Operating loss amounted to SEK -55 million (-3).

- Operating profit during 2005 was charged with SEK -17 million (0) in items affecting

comparability.

-  Loss after financial items amounted to SEK -75 million (-25).

-  Cash flow from operating activities amounted to SEK -202 million (-102).

-  The decline in earnings is mainly due, in addition to items affecting comparability of SEK

- 17 million, to lower margins in both business areas.

www.setragroup.se