Annual Report 2004 (pdf, 2.1 MB) - Rörvik Timber

S U M M A RY
A N N UA L R E P O R T
20
04

CONTENTS
The year in brief 3
Managing Director’s comments 4
Rörvik in brief 6
Overview of recent years 8
Business concept, goals and strategy 10
Timber architecture 12
The market 14
Production 18
Selling timber 21
Investments 22
Statement of income 24
Cash flow analyses 25
Balance sheet 26
Changes in stockholders equity 27

THE YEAR IN BRIEF 3
THE YEAR IN BRIEF
• Net turnover increased to 1,388 MSEK (1.278)
• Result after tax decreased to 1 MSEK (7)
• Result per share was 0.07 SEK (0.55)
• Operating income decreased to 14 MSEK (27)
• Operating income for the Timber Business Area
dropped to 12 MSEK (40)
• Income for the fourth quarter of the year
decreased considerably to –8 MSEK (8)
The cost levels for timber raw material have
increased
The prices of timber product have been under
considerable pressure
• Operating income for the Wood Products
Business Area increased to 10 MSEK (–3). Lower
material costs of timber goods and reduced
transport costs
• Altered raw material conditions after the storm
in January 2005
2004 2003
Net turnover, MSEK 1,388 1,278
Operating income, MSEK 14 27.6
Operating margin, % 1.0 2.2
Income after finacial items 0 11.6
Return on operating capital, % 2,4 5.0
Return on stockholder equity, % 0.5 3.8
Solidity, % 27.0 26.2
Average number of employees 439 451
Income per share, SEK 0.07 0.55

4
MANAGING DIRECTOR’S COMMENTS
AN INCREASE IN FOCUS
Investments have been
implemented according to
plan. Going into 2005 all
the pre-conditions for an
industrially and financially
strong Rörvik Timber are in
place, says Johan Hansen,
Managing Director and
CEO of Rörvik Timber.
OPERATIONS TO STRENGTHEN Rörvik Timber have
continued during the year. The programme of investments
for increased efficiency, that was decided upon
in 2002, has been implemented according to plan. The
year’s investments reached a level of 52 million SEK.
In addition, there has been an increased focus on
organisational changes, with the aim of coordinating
and making better use of the group’s resources.
Operations for change have been run on an increasingly
tougher market. Sawmills are being squeezed
between increasing raw material costs and falling
sales prices.
This was particularly evident towards the end of 2004.
THE MARKET
The demand for sawn timber is good, though has
weakened somewhat during the year. It has been
particularly difficult for pine products. Prices have
fallen. The market has been stable for spruce products.
All in all, delivered prices were approximately 2
percent lower compared with 2003. The produced
sawn volume of timber has increased by 3 percent to
531 tm 3 .
The group’s operations within the pressure
impregnated timber Business Area, have developed
in a positive direction. The position that the largest
players in the Nordic countries find themselves in
has provided improved market potential for pine
products. For the Wood Products Business Area the
changes in organisation, in the form of outsourcing
of production have entailed an increased focus on
marketing and logistics. Refining to a pure “Trading
House” has rapidly had the desired effects. Demand
has been good and both volumes and margins have
been able to be increased. The production units
within the Business Area, Burseryds Listfabrik and
BJU in Rottne have both shown positive sales and
production developments.
RAW MATERIALS
Continued hard competition for raw material has prevailed,
resulting in an increase in costs. The increased
production volume within the sawmill industry has
made it necessary to import a considerable amount
of raw material. Timber costs have increased by 5
percent compared with 2003. During the year, the
group’s raw material organisation has been collected
into a single, new unit, Rörvik Forest. The aim of this
has been to achieve greater efficiency and improved
processing of the raw material market by means of
unified and common action. Raw material supplies
have functioned well. Increased requirements have
been able to be satisfied. A new raw material strategy
has been implemented that will mean that, in
the future, acquisitions will considerably exceed the
needs of our own plants. The reason for this is to
ensure that sufficient raw material is available, no
matter the state of the market and to hold down
raw material costs. As a first step in this strategy,
major import agreements have been signed with
Russian suppliers. In addition an agreement has been
reached for the acquisition of raw material company
Wijkström Timber AB which will be finalised at
the beginning of 2005. By means of these measures
Rörvik Timber will, from 2005 onwards, have control
over a timber flow, the equivalent of more than
2 million m 3 to. Those volumes that are not used by
our own industries will be sold to industries within
Sweden and on the continent.
ANNUAL RESULTS
Income after financial items decreased from 11.6 million
SEK in 2003 to 0.2 million SEK. The background
to this reduced income is the deteriorating margins
for the Timber Business Area. Rising raw material
prices and lower sales prices have meant that operational
income decreased by 25.3 million SEK.
For the Wood products Business Area, a good market
and the effects of the programme of measures taken,
has meant that the operational income has improved
by 13.5 million SEK.

MANAGING DIRECTOR’S COMMENTS 5
THE INVESTMENT PROGRAMME
Despite a toughening market the investment programme
has been implemented according to plan.
Investments in plant reached 52 million SEK (63), of
which 32 million SEK (9).has been financed via leasing
agreements.
The largest project has been carried out at the plant
in Myresjö, where a new planing shop and a new
timber reception facility are now in operation, with
good results.
The investments planned for 2005 will be directed
towards increasing volumes. This will improve
efficiency and reduce manufacturing costs.
THE EFFECTS OF HURRICANE “GUDRUN”
On the 8th January 2005 widespread storm damage
was suffered in forests and other property, primarily
in southern Halland and western Småland, in the
south of Sweden. The group’s plants suffered only
minor damage. Electrical power cuts caused a few
days stoppage in production at two of the plants. In
the short-term, the availability of timber for sawmills
and other forestry products will considerably exceed
the requirements of local industries despite the fact
that felling and transport capacity is somewhat
limited.
Different methods for preserving timber blown
down by the hurricane, either felled or still on the
forest floor, for a shorter or longer period of time
will be put into large scale operation by a number of
different parties involved. Storage damage will occur
to differing degrees in time and space. Agreements
and statements made point towards the price level
of storm-felled timber being clearly lower than what
applied to sawmill timber in the autumn of 2004.
On the other hand, there will be increased costs
for timber transport and storage as well as quality
related costs throughout the whole of the processing
chain, in order to limit the effects for the timber
users and for the timber goods market as a whole.
Extended periods of credit for the raw material
extracted from the storm affected forest will have a
positive effect on tied up capital. The cash flow effect
for 2005 is deemed to be positive, but the exact level,
at this point in time, is impossible to calculate.
THE MEASURES DECIDED UPON INCLUDE the
comprehensive storage of sawmill timber, increased
production, the postponement of holiday closures
and the sales of sawmill timber from the storm area.
The already determined increase in production and
the further increases implemented after the storm
are calculated to mean that production for 2005 will
reach approximately 625 tm 3 , which is an increase of
17 percent compared to 2004. The overall result effect
should be positive for 2005 and 2006. The long-term
effect is negative for the sawmill industry within
the affected areas, where the availability of sawmill
timber can be anticipated to reduce drastically once
the clearing of storm damaged forests has been
completed within a couple of years. For Rörvik
Timber the established import operations can be a
decisive factor for profitable operations.
IMPORTANT WORKING AREAS IN 2005
The year will be characterised by the measures, both
in the long and short terms, to solve the possibilities
and threats that the effects of the storm entail.
The centralisation of the marketing and raw material
organisations within the Timber Business Area will
require changes and new working methods. The
continuation of the investment programme must be
implemented within tight controls and minimised
“running-in” problems.
FUTURE PROSPECTS
At the present time, the market for sawn timber
goods does not look as if it will improve. Stable
raw material supplies and improved performance
in sawmill/ cleaving provide positive effects to
income. Add to this the short-term effects of the
storm. The conditions for a considerably better result
for the Timber Business Area are good. For the
Wood Products Business Area it is considered that
the good level of profitability reached during 2004
will be maintained. All in all the conditions are in
place in 2005 that will mean a both industrially and
financially strong Rörvik Timber.
Sandsjöfors the 28th February 2005
Johan Hansen
Managing Director and CEO

6
KORT OM RÖRVIK

RÖRVIK IN BRIEF 7
RÖRVIK IN BRIEF
RÖRVIK TIMBER AB (PUBL) operates timber processing
activities in the south of Sweden. The group employs
some 440 co-workers in some eight locations in the
south of Sweden. Annual turnover reached approximately
1.4 billion SEK, of which exports account for
approximately 40 percent. The principle market for
the group’s timber products is northern Europe.
RÖRVIK’S “B” SHARES ARE QUOTED on the Stockholm
Stock Exchange’s O list, with approximately 2,500
shareholders. Operations are divided into two business
areas:
• Timber, that produces and sells sawn and processed
timber products to industries within the building,
component and carpentry sections as well
as to builder’s merchants in Sweden, Denmark
and northern Europe. In total, there are plants
in six locations that together, produce some 600
thousand cubic metres of sawn timber goods,
of which, approximately 60 percent is further
processed by way of planing or impregnation.
Approximately 30, thousand m 3 is finger jointed.
The impregnation of timber is carried out at the
group’s own plant in Tranemo and on a sub-contracting
basis at part-owned plants.
• Wood Products markets products for indoor and
outdoor environments, primarily to builder’s
merchants and the DIY market in Sweden and
ORGANISATION O R G A N I S AT I O N 2005 2 0 0 5
T I M B E R B U S I N E S S A R E A
Boxholm Timber AB
Rörvik Timber Höglandet AB
• Myresjö
• Rörvik
• Sandsjöfors
• Tranemo
Tvärskog Timber AB
Nordic Wood Treatment AB
(part owned)
Skandinavisk Trælastagentur A/S
Wijkström Timber AB
Norway. The major proportion of production is
sold under its own brand name Jabo. Panelling and
construction beams, etc., are purchased internally
within the group from the Timber Business Area,
whilst small garden cabins and the garden range
are purchased from sub-contractors in Sweden and
abroad. Building mouldings, beadings and skirting
boards and pine glue line boards are produced at
the group’s companies in Burseryd and Rottne. The
Business Area sales and logistics centre is located in
Tranemo.
W O O D P R O D U C T S B U S I N E S S A R E A
AB Burseryds Listfabrik
BJU i Rottne AB
Jabo Wood Products AB

8
OVERVIEW OF RECENT YEARS
OVERVIEW OF RECENT YEARS
THE GROUP 2004 2003 2002 2001 2000
Income/earnings
Net turnover total MSEK 1 388 1 278 1 199 1 156 1 255
thereof: Sweden MSEK 815 720 789 705 773
Rest of Europe MSEK 504 475 335 386 423
Rest of the world MSEK 69 83 75 65 59
Product revenues *) MSEK 1 092 938 1 020 910 956
Operating income **) MSEK 14 28 8 –17 30
Operating income MSEK 14 28 8 –17 16
Financial items MSEK –14 –16 –15 –13 –14
Income after Financial items MSEK 0 12 –7 –30 2
Profit/loss for the Financial year MSEK 1 7 –6 –22 1
Key figures income/earnings
Operating margin **) % 1.0 2.2 0.7 -1.5 2.4
Operating margin % 1.0 2.2 0.7 -1.5 1.3
Profit margin % 0.1 0.6 -0.5 -1.9 0.1
Earnings per share SEK 0.07 0.55 -0.43 -1.56 0.10
Cash flow
Operative cash flow excl. investment
reimbursement MSEK 73 26 4 47 65
Paid interest net MSEK -14 -16 -15 -13 -14
Paid taxes net MSEK 1 0 1 -5 5
Investments in plant excl.
company acquisitions ****) MSEK -20 -63 -57 -30 -23
Company acquisitions MSEK -7 -3 0 - -11
Plant & company sales***) MSEK 6 1 4 35 17
Cash flow before financing MSEK 43 -55 -63 34 39
Cash flow per share SEK 3.08 -3.96 -4.53 2.45 2.79
Key figures financing
At respective year ends
Stockholder equity MSEK 202 201 195 201 223
Interest-bearing net debt MSEK 323 337 283 208 242
Liquidity % 27.0 36.2 27,6 31,4 30,4
Debt to equity ratio – multiple 1.6 1.7 1.5 1.1 1.1
No. of shares, average 1000’s 13 864 13 864 13 864 13 864 13 864
Stockholder equity per share SEK 14.57 14.5 14.06 14.49 16.05
Key figures returns
Calculated per rolling 12 month period
on employed capital **) % 2.4 5.0 1.6 -3.6 5.68
on employed capital % 2.4 5.0 1.6 -3.6 3.08
on stockholder equity % 0.5 3.8 -3.0 -10.2 0.66
*) Net turnover minus by-products and trading relating to
round timber and timber products.
**) Excluding items affecting comparability.
***) Sales is a net figure after deduction for the taxes paid on
the sales results.
****) Exclusive leasing

OVERVIEW OF RECENT YEARS 9

10
BUSINESS CONCEPT – GOALS – STRATEGY

BUSINESS CONCEPT – GOALS – STRATEGY 11
BUSINESS CONCEPT – GOALS – STRATEGY
BUSINESS CONCEPT
Rörvik Timber, principally operating with sawn
timber goods, shall:
• be the natural collaborative partner for the
supply of timber products to customers within
industrial, commercial and DIY markets.
• actively develop the ability and capacity to satisfy
customers’ requirements in terms of service, leadtimes,
security of delivery, range and product
quality.
• by means of a serious marketing strategy, create
profitability both for ourselves and for our
customers.
OPERATIONAL GOALS
Rörvik Timber’s goals are to:
• create value for its owners through consistent and
continuous good levels of profitability.
• develop products and range in accordance with
the requirements of its customers, taking active
consideration of the environment.
• maintain a good working environment for its coworkers
FINANCIAL GOALS
Rörvik Timber’s goals are to achieve:
• an average profit margin of at least 8 per cent
over a market economic cycle.
• a rate of turnover of capital of three times.
• an average return on working capital of 15 per
over a market economic cycle.
• an equity capital of at least 30 per cent.
• a debt to equity ratio below 1.0.
• a liquidity of at least 10 per cent of turnover.
• an average operational cash flow of at least 10 per
cent of turnover over a market economic cycle.
STRATEGY
• operations shall primarily be concentrated on the
Nordic countries and Northern Europe.
• the degree of processing of supplied materials
shall increase in order to create greater value for
us and our customers.
• the development of the range and products
shall take place in close collaboration with our
customers.
• continued development shall primarily be
achieved through investment, rationalisation and
marketing efforts in order to create growth and
competitiveness.
• Rörvik Timber shall be a serious and long-term
partner for forestry owners and suppliers within
our area of activity.
• an expansion of operations shall take place
in order to ensure that our financial goals are
achieved.
F O L L O W I N G U P G O A L S Goal Result 2004
Operating margin, % at least 8 1.0
Speed of capital turnover, multiple 3 1.7
Return on operating capital, % 15 2.4
Solidity, % at least 30 27.0
Debt to equity ratio, multiple at most 1 1.6
Liquidity, % at least 10 6.0

12
TIMBER ARCHITEC TURE
TIMBER REQUIRES ITS OWN BUILDING SYSTEM
INTERVIEW WITH ANDERS LANDSTRÖM architect SAR/
MSA. Anders Landström is one of Sweden’s leading
architects and a strong advocate of timber. Anders
has worked as assistant professor in the art of timber
construction at Lund University. Today, he runs
Landström’s Architects in Stockholm.
Sweden can be a leader in creating good, large timber
buildings, says architect SAR/MSA Anders Landström.
SWEDEN HAS SEVERAL DECADES of experience of the
industrial building of large buildings, constructed of
materials other than timber. This has created a certain
attitude towards timber buildings. In general, it
seems to be considered that timber is only suitable
for smaller houses and buildings. We can change this
if architects, together with all the other parties involved,
increase their knowledge and learn more about
the qualities and characteristics of timber. Several
watch words can be used to describe what makes
timber superior to other materials: low weight, the
correct environmental profile and local manufacture.
Timber buildings with timber beams provide an
improved indoor climate. In our climate, the indoor
environment is extremely important to our own well
being.
BUILDING WITH TIMBER SUFFERS FROM the fact that the
preparatory work is carried out in the same way as,
for example, a concrete building. Building with timber
requires its own logistics and its own building
system in order to come into its own. The materialneutral
pricing that is said to take place today, is
often based on concrete systems.
TIMBER IS PUBLIC WELFARE
Architecture in timber provides us with great possibilities
to show that there is something special about
modern Swedish architecture. We can show that timber
is more than a cladding material. By highlighting
the characteristics and properties of timber beams,
we can become a leading force in creating good, large
timber buildings. In this context, the International
Timber Programme* can lead to better collaboration
between the parties involved in building. With large
scale timber building our building sector can develop
structurally and become more small scale through
the use of industrially manufactured, designed components.
To build more in timber is pure public welfare
as it both creates employment and has a positive
effect on the environment.
HISTORICALLY, SOLID TIMBER BUILDING SYSTEMS have
functioned well and are competitive. Solid timber
buildings have excellent properties, for example, in
terms of the storage and emission of heat and humidity.
Solid timber buildings can be built everywhere. The
buildings can be provided with wooden panelling
to act as a “raincoat” in rainy areas or with suitable
“clothing” such as rendering, in city environments.
We must design and build timber buildings that from
the very beginning are thought out with a building
system in timber. Not continually adapt building
plans from projects that have been designed for other
building systems. All too frequently, timber comes
into the picture at too late a stage, when function and
dimensions have already been determined and are
“locked”.
THERE ARE MANY POSSIBILITIES to develop sub-systems,
such as volume elements and box-beams that
are rigid. Double constructions of volume boxes that
provide good sound standards. The knowledge about
what provides rigidity makes it possible, using corbelling,
to create interesting large building in timber.

TRÄ ARKITEKTUR I SVERIGE 13
INCREASED CREDIBILITY
Timber in larger buildings for homes or public buildings
have an obvious attraction, but a certain level
of credibility must be created. It is therefore important
that industry and society in general, direct
resources that make it possible to produce good
examples in Sweden too. In central Europe, several
timber industries have developed new building
components that enable an industrial building to be
flexible and of a very high quality both in terms of
performance and architecture.
Company environment
in the “Inventor” quarter of
Videum’s Science Park in Växjö.
Large timber buildings built
with timber beams.
THE ROLE OF THE ARCHITECT MUST be at the centre due
to the fact that timber architecture entails complex
systematics between a conceptual idea and different
collaborating detail solutions. A continued development
of different building components and the
properties of timber construction to satisfy different
technical requirements, must continually take place.
We must create large timber buildings that have clear
architectural and conceptual thinking behind them
and we can only achieve this through development
and collaboration between architects, designers and
producers with a good overall view of the picture
that is required.
*The national strategy for the increased use of timber in building
construction was approved by the Swedish government in 2004.
A chancellery has been established and a national coordinator
appointed. During 2005 wide ranging information will reach building
contractors, housing associations, etc. Education, training and
research into industrial processes will also take place.

14
THE MARKET
Exterior panels from Rörvik Timber used directly in
house production, here at Trivselhus in Korsberga.

THE MARKET 15
INCREASED CONSUMPTION OF CONIFEROUS TIMBER PRODUCTS
FROM A GLOBAL PERSPECTIVE, Sweden is one of the
forestry industry’s major powers. We are the world’s
second biggest exporter of sawn timber products,
after Canada and the fourth largest nation in terms
of the production of paper pulp. Supplies from the
Swedish sawmill industry account for approximately
12 percent of the consumption of sawn timber
products within the EU. The forestry industry and
forestry are responsible for approximately 4 percent
of Sweden’s GNP. The forestry industry is responsible
for approximately 12 percent of industry’s processing
value and employment.
The forestry industry includes paper and paper pulp
industries, the saw mill industry, carpentry, the wood
board industry, the packaging industry and the mill
board industry.
EUROPE’S CONSUMPTION OF sawn and planed coniferous
timber products reached a record level during
2004 and increased to 95.5 million cubic metres. This
is an increase of 2 percent compared with the previous
year. The collected Swedish production increased
by 1 percent to approximately 17 million cubic metres,
of which, 66 percent was exported. For Rörvik
Timber production volume increased by 3 percent.
In total, the Swedish market consumed 5.7 million
cubic metres of sawn and planed timber, which is an
increase of 1 percent compared to last year.
INDUSTRIAL TIMBER
The market in Sweden for sawn timber products has
an annual turnover of 35 billion SEK. For the whole
of the timber-mechanical industry (saw mills, timber
manufacturers and wood boards) the turnover is 80
billion SEK, with an export value of 37 billion SEK.
RÖRVIK TIMBER IS one of the largest players on the
market in the south of Sweden, with an annual production
of 530 tm3. Deliveries go to the timber consuming
industries, specialised builder’s merchants and
to the consumer sector. The industrial sector is the
largest and is responsible for slightly more than 70
percent of deliveries.
RÖRVIK’S PRINCIPLE MARKETS, apart from Sweden,
are Northern Europe, with Great Britain, Ireland,
Germany, Holland, Denmark and Norway being the
biggest purchasing countries. Overall, the demand
from these countries has been good during the year.
Norway shows a positive trend, above all, when it
comes to pine products. Exports to Great Britain have
decreased somewhat due to the receding exchange
rate for the pound. Ireland shows strong development
in terms of construction and this trend is expected
to be maintained. Germany and Holland, who are
normally major and important purchasing countries,
have had weak developments in their economies and
demand has therefore decreased on these markets.
Exports were responsible for 41 percent.
DURING 2004 THE market conditions for spruce products
has been considerably more favourable than for
pine products. The pine market has been subject to
major price pressure due to an excess availability of
goods. Within the pressure impregnation Business
Area, demand has been good.
MARKET DEVELOPMENTS FOR 2005 are difficult to assess,
not least of all, due to the effects of the hurricane.
However, a shortage of better quality spruce products
cannot be ruled out. For pine products too, it is believed
that shortages can occur.
CONSUMER BUSINESS
Through the Jabo Wood Products AB subsidiary, the
group has a strong presence on the consumer market
for timber products within the DIY sector. Sweden
and Norway are the principle markets, of which
Sweden is the larger with over 50 percent of deliveries.
From the 1st March 2004, Jabo Wood Products
became a pure trading house which, amongst other
things, means that sawmill and further processing
production at the plant in Tranemo are now run by
the Rörvik Timber Höglandet subsidiary, as are the
impregnation operations and all sales of pressure
impregnated products for the Danish market.
THE DEMAND FOR TIMBER PRODUCTS within the DIY
sector has, over the last three to five years, been very
strong. Amongst other things, this has resulted in
even more players establishing themselves in both
the production and the retail sections.
One of the strong contributory factors to this increase
in private consumption both in Sweden and abroad,
is the considerable interest in home improvements
and fittings generated by the flora of TV programmes
and interior design magazines who have created a
niche for themselves with this category of consumer.
At the same time that an increasing number of
people are building conservatories and re-fitting and

16
THE MARKET
furnishing their homes, competition for products also
increases, which in many cases leads to pressure on
prices and reduced margins.
THANKS TO AN ESTABLISHED brand name, a wide range
of products and well developed logistics, Jabo has
established a leading position within this segment.
The biggest “chain” customers are COOP, Bauhus and
Silvan. Customers also include a number of independent
parties not belonging to any of the established
chains. Jabo is considered to be the biggest player
within the garden products area.
THE SALES OF MOULDINGS, beadings and skirting
boards under the Jabo brand name, have had a positive
development during 2004. For Burseryds Listfabrik
this has meant an increase of 50 percent against the
previous year. One contributing factor to this is that
demand has increased considerably within the DIY
sector. Sales are also made to the window industry.
All deliveries go to the Swedish market, which is characterised
by a few, well established producers.
THE SALES OF GLUE-LINE BOARDS in pine has increased
during the year. Approximately 70 percent of deliveries
go to the consumer sector as “hobby boards”. The
remainder are sold with customer specific dimensions
and quality requirements as ingoing components
for the furniture and furnishing industries.
Sweden and Norway are the biggest markets, followed
by England.
CUSTOMER COLLABORATION
The UK is an important market for a number of building
industry products. Through close collaboration
with one of the UK’s biggest industrial timber concerns,
supplies of, for example, finger jointed timber
products have increased. Through technical competence
and an active customer dialogue, the customer’s
production of a new type of load bearing joists – I
Joists - has been possible. The product has developed
extremely positively. The house building industry,
that is an extremely important customer category,
requires a wide range of timber products. Thanks
to increased market competence and specialisation
customer adapted supplies are made possible.
Customer adapted products through specialisation and increased customer collaboration. Interior from the roof-truss line at Trivselhus.
THE UNIT IN TVÄRSKOG, the market leader in Sweden
for finger jointing techniques, enables customer adapted
products based on different countries’ building
standards and industrial requirements. Product development
of this type increases customer satisfaction

THE MARKET 17
Ulric Bergenholtz, Kjell Blom, Sylve Nydén and Helen Kronander
discuss quality and logistics with Jabo in Tranemo.
and strengthens business relationships.
DURING THE YEAR A new market organisation has 140
100
been established. Amongst other things this means
80
that each sawmill unit now has a central sales 60 function.
This change has meant that the distance 40 between
the market and production has been reduced
0
and that communication has become more efficient.
ON THE CONSUMER SIDE THE refining of Jabo Wood
Products has meant an increased focus on marketing
and sales of timber products, to consumer outlets.
The large chains set increasingly higher demands for
efficient IT, logistics and storage functions. During
the year these functions have been further developed
and integrated into customers’ business systems.
Jabo Wood Products also hold training sessions and
a “timber school” for store personnel within respective
working areas. Collaboration results in long-term
customer relationships and an increased brand loyalty.
RAW MATERIAL
In recent years Rörvik has strengthened its position
on the raw material market through and active movement
of volumes from standing timber and felling
assignments to supply agreements. The stock of standing
timber at the end of the year was the lowest for
E U R O P A S E X P O R T A V S Å G A D E T R Ä V A R O R
E U R O P A S E X P O R T A V S Å G A D E T R Ä V A O R
s t ö r s t a k ö p a r l ä n d e r several years. Despite an increased share of delivered
s t ö r s t a k ö p a r l ä n d e r
t u s e n k u b i k m e t e r
280 t u s e n k u b i k m e t e r
280
260
260
240
240
220
220
200
200
180
180
160
160
140
120
80
40
20
120
100
60
20
timber, costs have increased, which has considerably
affected results. In terms of volume, the supply of
raw materials to all sawmill units has been good. The
raw material base today, encompasses the whole of
the Baltic Sea region.
TO MEET THE increased competition on the raw material
market, the group’s raw material organisations
have been collected within a single new unit, Rörvik
Forest. The aim of this is to attain greater efficiency
97-01 0 98-01 99-01 00-01 01-01 02-01 03-01 04-01 05-01
97-01 98-01 99-01 00-01 01-01 02-01 03-01 04-01 05-01
JAPAN
JAPAN
Källa: Skogsindustrierna
Källa: Skogsindustrierna
USA
and better processing of the market through a unified
USA
front. At the beginning of 2005 the raw material
purchasing company Wijkström Timber AB
in Norrköping was acquired. This complements
D E L I V E R I E S P E R G E O G R A P H I C
D E L I V E R I E S P E R G E O G R A P H I C
M A R K E T i n p e r c e n t
M A R K E T i n p e r c e n t
Sweden, 58.7
Sweden, 58.7
Other EU, 32.2
Other EU, 32.2
Other Europa, 4.0
Other Europa, 4.0
Africa, 2.7
Africa, 2.7
Asia, 1.8
Asia, 1.8
Other world, 0.5
Other world, 0.5
Rörvik’s raw material organisation and strengthens
the raw material base. Thanks to this acquisition
Rörvik control a timber flow that corresponds to over
2 million m3 to.
BY-PRODUCTS
The paper pulp industry’s requirements for cellulose
chips has continued to be good. The market for biofuel
B E Rwas Ä K Nfavourable AT E X P Oduring R T V Ä Rthe D E first half of 2004. Due
B E R Ä K N AT E X P O R T V Ä R D E
S Å G A D E T R Ä V A R O R
to increased S Å G A D E import T R Ä Vvolumes A O R and a mild winter, the
price
2200 SEK/m3
level sank considerably for bio-fuel for large
scale 2100 use, during the second half of the year. In the
2100
longer 2000 term prices are deemed to increase, taking
2000
into 1900 account the building of bio-fuel furnaces. In the
1900
short 1800 term however, the availability of storm timber
1800
will 1700 affect supplies and prices will go down. The
1700
high 1600 oil price has contributed to the fact that that an
1600
increasing number of homes (houses and apartments)
1500
1500
2200 SEK/m3
are heated by briquettes and pellets manufactured
1400
97-01 1400 98-01 99-01 00-01 01-01 02-01 03-01 04-01 05-01
97-01 98-01 99-01 00-01 01-01 02-01 03-01 04-01 05-01
from sawdust and planing shavings from sawmills.
FURU
GRAN
Supplies of sawdust to the chipboard industry have
FURU
been insignificant.
Källa: Skogsindustrierna
Källa: Skogsindustrierna
GRAN
D E L I V E R I E S , J A B O W O O D P R O D U C T S
D E L I V E R I E S , J A B O W O O D P R O D U C T S
P E R S E G M E N T M S E K
P E R S E G M E N T M S E K
300
300
254 231
250
254 231
250
200
200
150
150
174 164
174 164
100
100
50
50
80 67
0
80 67
0
2004 2003
2004 2003
Indoor environment Outdoor environment
Indoor environment Outdoor environment
T
p r
Setr
SCA TImbe
SCA
Södra Timbe
Södra
Moelve
M
Stora Enso Timbe
Stora Enso
Vid
Rörvik Timbe
Rörvik
Norrskog-NW
Norrsko
Norra Skogsägarn
Norra Skogs
Martinsso
Mar

18
PRODUCTION
After sawing the timber passes through raw sorting,
here at an interior from the unit in Rörvik.

PRODUCTION 19
INCREASED SPECIALISATION
RÖRVIK TIMBER AB is one of Sweden’s biggest producers
of sawn and processed timber products with
an annual turnover of 1.4 billion SEK. The units are
located in the south of Sweden, with the region of
Småland as its base. Operations are environmentally
certified in accordance with ISO 14001 and raw material
acquisition is certified in accordance with PEFC*.
RAW MATERIALS USED are made up of 70 percent spruce
timber and 30 percent pine timber, which is collected
from the whole of the Baltic Sea region. Local
timber acquisition dominates. Purchases take place
in the form of delivered timber, felling assignments
or the purchase of standing timber. Felling and
transport services are supplied by external contractors.
EACH PROCESSING UNIT HAS specialised on the basis
of raw material quality, competence, production possibilities
and market conditions. In this way the optimum
utilisation of capacity and cost effectiveness in
customer deliveries is reached.
Rörvik Timber Höglandet includes the four sawmills
in Myresjö, Rörvik, Sandsjöfors and Tranemo.
Operations are directed towards the Nordic house,
mouldings and carpentry industries. A high proportion
of the products are further processed, either by
planing and/or impregnation.
TVÄRSKOG TIMBER’S STRENGTH is construction timber
in long lengths either from the sawmill or via finger
jointing. The company is the country’s leading producer
of finger jointed timber. Operations are directed
towards the house building industry. For the
Danish roof truss market there is a stock of tensile
strength sorted ranges, in order to be able to offer
quick deliveries. The proportion of imported timber
is approximately 75 percent.
At part-owned Nordic Wood Treatment in Åstorp
impregnation is carried out, on a sub-contracting
basis, for the southern Swedish and Danish markets.
Impregnation is also carried out at our own plant in
Tranemo.
BJU IN ROTTNE is Sweden’s third largest manufacturer
of pine glue-line boards for furniture and furnishings.
“Hobby boards” for the retail market dominate
supplies. Production during 2004 was 7.5 tm3 (4,8).
BURSERYDS LISTFABRIK IS one of the country’s leading
manufacturers of mouldings, beadings and skirting
boards for the consumer builders merchant
and the housing industry. At the end of 2003 the
sales direction changed to apply to building mouldings/beadings/skirtings
to industrial users and to
consumer builder’s merchants. Production has been
altered and investments have been implemented for
increased capacity and cost effectiveness.
*PEFC - Programme for the Endorsement of Forest Certification
schemes. An international certification system where products shall
be derived from responsibly managed forests, from an environmental,
social and economic perspective.
PRODUCTION UNITS
Boxholm Timber is the group’s largest plant.
Operations are directed towards glu-lam manufacturers,
carpenters and the furniture industry.
An OG moulding from Burseryd’s Listfabrik,
ready for the consumer market.
Really long lengths with high tensile strength by means
of finger jointing techniques from Tvärskog Timber.

20 PRODUCTION
S AW M I L L P R O D U C T I O N T I M B E R B A t h o u s a n d s m 3
“ I N T E G R AT E D ” P L A N I N G P L A N T S t h o u s a n d s m 3
Unit Operation Wood type/ Result Result
2004 sawn 2003 2004
Boxholm 2 shift spruce 55/pine 45 160 158
Myresjö 2 shift spruce 104 107
Rörvik 9 hours pine 80/spruce 20 80 78
Sandsjöfors 10 hours spruce 34 38
Tranemo 2 shift spruce 90/pine 10 60 65
Tvärskog 10 hours spruce 78 85
Summa 516 531
Units
Boxholm
Tvärskog
Höglandet*
* Myresjö
Rörvik
Sandsjöfors
Tranemo
218
36
58
124
242
33
67
142
306
44
54
208
T H E 1 0 L A R G E S T S A W M I L L C O M P A N I E S I N S W E D E N
p r o d u c t i o n
Prognos för 2005: 625 tm 3
The diagram does
not include the
independent planing
plant in Tranemo.
Result 02 Result 03
Result 04
M i l l i o n c u b i c m e t r e s
Setra
SCA TImber
T H E 1 0 L A R G E S T S A W M I L L C O M P A N I E S I N S W E D E N
p r o d u c t i o n
Södra Timber
Moelven
Setra
Stora Enso Timber
SCA TImber
Vida
Södra Timber
Rörvik Timber
Moelven
Norrskog-NWP
Stora Enso Timber
Norra Skogsägarna
Vida
Martinsson
Rörvik Timber
M i l l i o n c u b i c m e t r e s
0Norrskog-NWP
0,25 0,50 0,75 1,00 1,25 1,50 1,75 2,00 2,25 2,50
Norra Source: Skogsägarna The forestry industries
Martinsson
0 0,25 0,50 0,75 1,00 1,25 1,50 1,75 2,00 2,25 2,50
1
Source: The forestry industries
T O TA L P R O D U C T I O N O F C O N I F E R O U S T I M B E R
i n S w e d e n , m i l l i o n m ' s v
18
15
12
9
6
3
T O TA L P R O D U C T I O N O F C O N I F E R O U S T I M B E R
i n S w e d e n , m i l l i o n m ' s v
18
15
12
0
9
1990 1995 2000
2003
6
10 largest sawmills Totalt
3
Source: The forestry industries
0
1990 1995 2000
2003
It is estimated that for 2004
the10 largest have increased
somewhat.
Official statistics will be
published in June 2005
10 largest sawmills
Totalt

SELLING TIMBER
21
PRODUCT DEVELOPMENT – A LINK IN CUSTOMER COLLABORATION
RÖRVIK TI MBER SELLS almost half of its produced
volume on different export markets, with northern
Europe being the principle market.
Industrial export sales correspond to approximately
600 million SEK annually and most frequently are
effected via agents. For the Nordic consumer market,
customers are processed via our own sales teams.
A GEOGRAPHIC MARKET that in recent years has developed
in a very positive direction for Rörvik is the
United Kingdom. The British house and building
market can be described as conservative, where
Elisabeth Karlsson, export manager at Tvärskog Timber discusses joist
systems with Tom Bruce Jones, a director of James Jones & Sons Ltd in
Scotland.
bricks, mortar and steel dominate amongst building
materials. The majority of houses are built on site,
but at the same time as material and labour costs
rise, demand for other building materials and more
prefabrication has increased.
Scotland has come furthest when it comes to timber
frame housing production. Research and technical
solutions have made it possible to successfully build
5 storey buildings in timber.
One of Rörvik’s units, Tvärskog Timber, has a
range of finger jointed timber that is increasingly in
demand on the UK house building market.
CUSTOMER COLLABORATION
Via Tvärskog Timber, who are specialists in finger
jointed products, collaboration with the leading timber
processing company James Jones & Sons Ltd.,
has developed in a positive direction. The techniques
used by Tvärskog makes it possible to produce
lengths specifically adapted to different countries’
requirements and standards. Today, Tvärskog Timber
is James Jones’ only supplier of finger jointed timber
outside their own domestic market.
APPROXIMATELY 5 YEARS ago, James Jones started the
manufacture of a completely new type of product,
specifically adapted for house building – the patented
JJI Joist – a stronger, lighter and more flexible
alternative to conventional solid timber joists and a
component expressly specified by virtually all of the
UK’s major house builders. In essence, the I Joist is a
composite beam consisting of upper and lower flang-
A new type of joist where solid finger jointed timber is bonded to a
central vertical section of OSB (Oriented Strand Board). A growing
product on the UK building market.
es of finger-jointed softwood, with a bonded central
vertical section of OSB (Oriented Strand Board).
JAMES JONES SUPPLY approximately 6 million running
metres of this product annually and approximately
50,000 buildings in the UK have these joists today.
Tvärskog supply approximately 10 percent of the
annual requirement of finger jointed timber.
JAMES JONES & SONS Ltd., is run by the 5th generation
of the family and is a very well established and
respected company in the industry. Approximately
75 percent of the production of I joists today goes to
England where alternative methods and building
systems are in great demand.
The collaboration with Tvärskog Timber has contributed
to product development. The future looks very
bright for more timber in building!

22
INVESTMENTS
One of the year’s investments, a new dimensioning station, timber
sorting and new timber reception facility at the sawmill unit in Myresjö.

INVESTMENTS 23
INVESTMENTS FOR INCREASED PROFITABILITY
THE TOTAL INVESTMENTS in the Swedish forestry
industry’s plants during 2004 reached almost 20 billion
SEK, of which 1.4 billion was in the sawmill
industry according to Statistics Sweden.
RÖRVIK TIMBER, during the period between 2002
and 2004 has invested approximately 176 million SEK
in plant and equipment.
The investment programme, which started in 2002,
has had an effect in lower costs and improved capacity.
THE TIMBER BUSINESS AREA
Within the business area there are six processing
units: Boxholm, Myresjö, Rörvik, Sandsjöfors,
Tranemo and Tvärskog.
At the Myresjö unit a new planing line has been
put into operation which provides reduced internal
transport, shorter lead-times and increased capacity.
In addition, a new dimensioning station, timber
sorting and timber reception facilities have been
installed. Improved handling of timber increases
productivity in sawprocess.
At the plant in Rörvik a completely new raw sorting
line has been installed, which will cut down stoppage
times and increase capacity. During the spring of
2004 a new cleave was also put into operation in the
planing line.
IN BOXHOLM a 3D measuring frame and a new saw
control have been installed to increase sawn yield.
With the recent years’ investments, production has
increased by a little more than 50 tm3 to an annual
pace of 560 tm3 at the end of 2004. During the second
half of 2005 production of sawn timber will exceed
600 tm3 in annual pace. This has been made possible
partly due to an increased number of shifts and partly
through current investments in a drying facility.
WOOD PRODUCTS BUSINESS AREA
At Jabo Wood Products the warehousing function
has been strengthened as one link in the further
development of a rational logistics centre for customers
in the consumer segment. The mouldings
warehouse has been enlarged and equipped with
new transport conveyors that make the handling of
goods simpler and more efficient. During 2005 new
pallet stands will start to be used. These are easier
to work with and at the same time, reduce the risk
of transport damage. A new modern four-way truck
has been purchased which provides increased load
capacity.
AT BURSERYDS LISTFABRIK investments have begun in
automatic equipment for sorting/packaging which is
estimated to be completed during 2005.
AT BJU IN ROTTNE who manufacture pine glue-line
boards, there is modern and well invested plant. A
minor addition to the available machinery is planned,
which will provide increased capacity and flexibility.
COMPETENCE DEVELOPMENT
Higher demands are made of co-workers as more
and more production equipment becomes automated.
This requires continual training efforts to increase
competence.
A completely new raw sorting line at the unit in Rörvik, that increases
capacity, amongst other things, thanks to a reduced number of stoppages.

24
STATEMENT OF INCOME
1 1388.2 1277.5 1198.8 3.4 4.4
Changes of work in progress
and finished goods 2.1 25.0 6.9 - -
Other operating revenues 6.9 4.4 6.4 0.8 -
-977.4 -896.2 -837.0 - -
2 -179.7 -160.4 -154.8 -6.2 -7.2
Personnel costs 3 -193.6 -188.7 -175.2 -6.1 -6.4
Depreciation and write-down
4 -35.9 -35.4 -36.1 -0.3 -0.3
Income from share in associated
companies 3.0 1.4 - - -
Other operating costs 0 0 -0.7 - -
Income from shares in group
companies 5 -1.0 -0.5
Interest income 6 0.4 0.7 0.8 7.8 9.7
Interest expenses 7 -13.8 -16.7 -16.5 -7.9 -10.0
Deliveries of our own production of timber products has increased by approximately 10 percent. Price developments have
been negative. The average difference is approximately 5% for pine products and approximately 2% for spruce products.
Business with sawmill timber has increased, which is in line with the group’s altered raw material strategy.
70% of invoicing takes place in Swedish kronor (SEK) The differences in exchange rates correspond to decreased revenues
by approximately MSEK
Net exchange rate differences were –1.5 MSEK.
Income from foreign currency that was sold in instalments was 1 MSEK.
Other operational income includes 3.9 MSEK being the profit from the disposal the ownership share of Krokö Fastighets
AB (previously SÅBI AB).
The cost of sawmill timber per sawn volume has increased by approximately 5 percent.
The associated company, Nordic Wood Treatment AB carries out sub-contracting assignments relating to the impregnation
of timber products.
The invoicing from Rörvik Timber in 2004 represented approximately 60% of the company’s revenue.
The operating margin was 1.0% (2.2).
Interest costs make up 3.8% of the average debt. The majority the indebtedness is connected with the variable money
market interest.
The year’s taxes were positive due to the tax free sale of shares.
Taxes on the year’s income 8 0.8 -4.0 1.5 2.6 2.8
Income per share (SEK) 0.07 0.55 -0.43
Year’s income 1.0 7.6 -5.9
Number of shares (1,000s) 13864 13864 13864
Income measurement Year Quarter Whole
year
1 2 3 4
Net turnover
Operational income after depreciation
Income after financial items
Income for the period
2004 325 434 315 314 1388
2003 301 399 282 296 1278
2004 9 16 0 -11 14
2003 9 18 3 -2 28
2004 3 15 -3 -15 0
2003 5 14 -1 -6 12
2004 2 11 -3 -9 1
2003 4 9 -1 -5 7

CASH FLOW ANALYSIS 25
Operating income pre depreciation 49.5 61.6 43.9 -8.1 -9.2
Adjusting records 10 -12.2 -4.6 -1.4 0.0 0.0
Paid interest -12.9 -15.4 -15.3 -0.2 -0.4
Paid income taxes 0.5 -0.3 1.2 4.2 2.0
Stock-in-trade incl. felling rights 27.6 -25.4 -30.7 - -
Short-term receivables 10.1 -12.4 4.6 0.9 0.1
Short-term liabilities -1.3 6.6 -11.9 -0.2 -0.7
Investments in plant & machinery -19.9 -63.2 -56.7 0.0. -0.2
Acquisitions in related companies - -3.2 - - -
Acquisitions in group companies -7.1 - -0.3 -7.1 -3.6
Sales of material fixed assets 2.0 1.3 4.0 0.2
Sales of interest in related com. 0.1 - - - -
Sales of interest in other companies 6.2 - 0.1 0.5 -
Increase of loans and credits - 51.5 55.4 -47.3 51.2
Reduction of loans and credit -47.8 - - -0.4 -0.4
Received group allowance after tax 9.8 5.2
Loans to group companies 47.9 -44.2
In hand 1 January 9.7 13.2 20.3 0.0 0.0
-5.2 -3.5 7.1 0.0 0.0
76.8 29.5 60.7 77.0 29.5
The increase in the adjustment record relates to the resetting of the result from sales relating to plant assets.
In addition, the result share in associated companies does not affect the group’s cash flow.
The reduction in stock relates to timber raw materials (above all, standing timber) within the Timber Business Area.
The timber goods stock within sawmill operations decreased during second and third quarters.
Reduced deliveries during the fourth quarter, partly due to normal seasonal reasons and high levels of production created an
increase in stock during the fourth quarter.
Investments in plant and machiner reached 52 MSEK of which, 32 MSEk was financed via leasing agreements.
The part payment for Wijkström Timber AB, that will come into effect at the beginning of 2005 amounted to 7.0 MSEK.
The reduction of credit level relates to central office credit. The cash flow analysis does not the changes of the calculated
debt relating to financial leasing agreements. This debt has increased by 29 MSEK.
Liquid funds includes foreign currency to a value of 2.5 MSEK
Cash flow measurement Year Quarter Whole
year
1 2 3 4
Current operations excl changes in
2004 10 20 5 -10 25
operating capital 2003 16 20 6 -1 41
Current operations
Investment activities
Cash flow before financial activities
2004 -19 7 40 33 61
2003 -64 30 55 -11 10
2004 -9 3 -9 -4 -19
2003 -22 -16 -14 -13 -65
2004 -28 10 31 30 43
2003 -86 15 41 -20 -55
327.6 346.5 296.6 176.3 224.1
-128.6 -180.9
-4.5 -9.7 -13.2 0.0 0.0

26
BAL ANCE SHEET
Balance sheet The group The Parent company
Balance sheet The group The Parent company
Amount in MSEK Not 041231 031231 021231 041231 031231
ASSETS
Fixed assets
Intangible fixed assets
Goodwill 11 3.4 4.7 6.3 - -
3.4 4.7 6.3 0.0 0.0
Tangible fixed assets
Buildings and land 12 99.6 93.4 90.5 - -
Machines and other technical
equipment 13 191.6 167.4 133.0 - -
Inventory, tools and installations 14 7.1 7.1 7.3 0.4 0.6
Current new plant and advance
payments relating to tangible
fixed assets 15 6.3 19.4 31.0 - -
304.6 287.3 261.8 0.4 0.6
Financial long-term receivables
Shares in group companies 16 228.7 231.4
Shares in associated companies 17 6.4 4.3 0.1 -
Other long-term securities 18 0.1 2.4 2.5 0.5
Receivables with group companies 184.6 237.3
Deferred tax receivables 0.8 - - 0.1 -
Other long-term receivables 7.2 0.0 0.0 7.1 -
14.5 6.7 2.6 420.5 469.2
Total long-term receivables 322.5 298.7 270.7 420.9 469.8
Current Assets
Stock in trade, etc.
Stock in trade 19 268.7 296.1 271.8 0.0 0.0
Advance payments to suppliers 2.5 2.7 1.3 - -
271.2 298.8 273.1 0.0 0.0
Short term receivables
Customer receivables 9 107.0 111.3 96.0 0.0 0.0
Receivables with group companies 10.1 14.9
Tax receivables 2.6 3.6 4.3 0.4 0.4
Other receivables 17.7 24.2 31.3 - -
Prepaid costs and accrued revenues 20 22.2 21.5 18.9 0.2 0.8
149.5 160.6 150.5 10.7 16.1
Cash and bank 4.5 9.7 13.2 0.0 0.0
Total current assets 425.2 469.1 436.8 10.7 16.1
TOTAL ASSETS 747.7 767.8 707.5 431.6 485.9
Amount in MSEK Not 041231 031231 021231 041231 031231
STOCKHOLDER EQUITY, PROVISIONS AND LIABILITIES
Stockholder equity 21
Restricted stockholder equity 138.6 138.6 138.6 138.6 138.6
Restricted reserves 89.0 101.9 83.4 80.9 80.9
227.6 240.5 222.0 219.5 219.5
Unrestricted equity: Free reserves -26.6 -47.1 -21.1 36.4 27.7
income for the year 1.0 7.6 -5.9 -6.9 2.2
-25.6 -39.5 .27.0 29.5 29.9
202.0 201.0 195.0 249.0 249.4
Untaxed reserves 22 3.4 3.5
Provisions
Deferred tax liabilities 23 28.5 29.5 25.2 0.0 0.0
Long-term liabilities
Overdraft 24 173.2 220.5 169.3 173.2 220.5
Other debts to credit institutes 111.5 97.6 97.2 2.6 3.1
Financial leasing agreements 37.2 8.2 9.7 -
Other liabilities - - - - -
321.9 326.3 276.2 175.8 223.6
Short-term liabilities
Accounts payable 128.5 126.7 127.9 0.3 0.5
Liabilities to group companies 0.3 5.9
Tax liabilities 0.7 0.3 0.1 - -
Other liabilities to credit institutes 5.7 20.1 20.5 0.4 0.4
Other liabilities 10.9 9.4 7.6 0.5 0.4
Accrued expenses and prepaid
revenue 26 49.5 54.5 55.0 1.9 2.2
195.3 211.0 211.1 3.4 9.4
TOTAL STOCKHOLDER
EQUITY AND LIABILITIES 747.7 767.8 707.5 431.6 485.9
PLEDGED SECURITY AND GUARANTEE COMMITMENTS
Pledged security
For own debts and provisions
Property mortgages 60.0 66.0 66.0 - -
Company mortgages 112.6 107.1 107.1 - -
Machines with conditional
ownership incl. leasing 40.1 10.6 2.2 - -
Net assets/shares in subsidiary
companies 167.4 171.7 189.1 231.4
380.1 355.4. 364.4 0.0 231.4
Guarantee commitments None None None
Security for group companies 22.4 7.8

CHANGES IN STOCKHOLDERS EQUIT Y 27
COMMENTS ON THE BALANCE SHEET
Fixed assets
Investment activities have continued to be high.
The majority of this year’s investments have been made in:
Myresjö: A new planing shop, new timber reception and timber sorting facility
Boxholm: Replacement of saw controls
Rörvik: Re-building of raw sorting
Shareholdings in Krokö Fastighets AB (previously SÅBI AB) have been settled (disposed of) during the year.
The financial long-term receivables item relates to the part payment for shares in Wijkström Timber AB
Current assets
Greatly reduced raw material stock, particularly standing timber. Reduced stock of timber goods despite an increase during
the fourth quarter
Customer receivables are, for seasonal reasons, low at the end of the year within both business areas.
Within Timber, the customer receivables are credit-secured
Reduced incoming VAT has further reduced the amount of other receivables.
Accrued revenues are made up, to 50%, of by-product revenues that are deducted from the purchaser per month, in arrears.
Total assets (Balance sheet total)
A continued high pace of investment has entailed an increased value of material plant by 23 MSEK.
Current assets have decreased by 45MSEK which to a large degree can be assigned to the good stock.
The balance sheet total that, on average, has been 815 MSEK, peaked on the 30 th June at 871 MSEK and on the 31 st
December was 748 MSEK, a difference of 115 MSEK
Financing
Overdraft facilities of 250 MSEK from Handelsbanken and Nordea were at our disposal during the year
At the end of the year, 173 MSEK (221) was used.
In order to cover the increased seasonal financing need that exists within both Business Areas during the first half of the
year, an increased credit of 300 MSEK was arranged.
Of other loans totalling 149 MSEK, 69 MSEK was at fixed rate of interest, with an average interest of 4.9% The calculated
liabilities relating to financial leasing agreements is included in the sum of 37 MSEK (8).
The accounts payable includes payment plans relating to the purchase of standing timber. As a consequence of the taxation
rules for income from forestry, a disproportionately large part of this credit is due for payment in January. Liability relating
to the purchase of standing timber at year end was 37 MSEK (40) including VAT.
Stockholder equity
Stockholder equity per share reached the level of 14.57 SEK (14.50).
Share
capital
Restricted
reserves
Unrestricted
reserves
Year’s
result
Balance 2002-12-31 138.6 83.4 -21.1 -5.9 195
Transfer of year 2002 result -5.9 5.9 0.0
Tax on temporary differences,
relating to property -1.4 -1.4
Shifting of
restricted/unrestricted
stockholder equity 18.5 -18.5 0.0
Exchange differences relating
to foreign group companies -0.2 -0.2
Result 2003 1.0 1.0
Balance 2004-12-31 138.6 101.9 -47.1 7.6 201.0
Transfer of year 2003 result 7.6 -7.6 0.0
Tax on temporary differences,
relating to property 0.0
Shifting of
restricted/unrestricted
stockholder equity -12.9 12.9 0.0
Exchange differences relating
to foreign group companies 0.0 0.0
Result 2004 1.0 1.0
Balance 2004-12-31
Share
capital
Reserve
fund
Premium
fund
Balanced
result
Year’s
result
Balance 2002-12-31 138.6 43.5 37.4 39.9 -12.2 247.2
-12.2 12.2 0.0
Group allowance 9.7 9.7
Result 2003 -7.5 -7.5
Balance 2003-12-31 138.6 43.5 37.4 37.4 -7.5 249.4
-7.5 7.5 0.0
Group allowance 6.5 6.5
Result 2004 6.9 -6.9
Balance 2004-12-31 138.6 43.5 37.4 36.4 -6.9 249.0
Total
Total
ACCOUNTING PRINCIPLES The accounts have been prepared in accordance with Swedish Financial Accounting Standards Council recommendations.