Guidelines for 2012

The following principles and guidelines were approved by the Annual General Meeting on May 7, 2012.

Senior executives covered include the CEO in the Parent Company, other senior executives in the Parent Company and the CEO of Korsnäs ("Senior Executives") as well as directors of the Board to the extent they are remunerated outside their
Directorship. At present the number of Senior Executives amounts to six individuals.

The remuneration to the Senior Executives shall consist of fixed salary, variable salary, as well as the possibility to participate in a long-term incentive programme, pension and other customary benefits. These components shall create a well-balanced remuneration which reflects individual performance and which offers a competitive remuneration package adjusted to conditions in the market.

• The fixed salary is revised yearly and based on the executive's competence and area of responsibility.

• The variable salary may not exceed 50 percent of the fixed salary and is calculated according to a combination of results achieved and individual performance.
• Other benefits shall only constitute a limited amount in relation to the total remuneration and shall correspond to local practice.

• Pension premiums are paid to insurance companies within the framework of defined contribution plans, with a maximum of 20 percent of the fixed salary.

• In the event of notice of termination of employment being served by the Company, there is entitlement to salary during a notice period of a minimum of 6 and a maximum of 18 months. Salary during the notice period is reduced by salary received from a potential new employment.

Board Members, elected at General Meetings, may in certain cases receive a fee for services performed within their respective areas of expertise, outside of their Board duties. Compensation for these services shall be paid at market terms and be approved by the Board of Directors.

In special circumstances, the Board may deviate from the above guidelines. In such case, the Board is obligated to give account for the reason for the deviation at the following Annual General Meeting.

In accordance with the Swedish Code of Corporate Governance, the Remuneration Committee within the Board of Directors monitors and evaluates the application of the guidelines for remuneration to the Senior Executives established by the Annual General Meeting. The evaluation has resulted in the conclusion that the guidelines adopted by the Annual General Meeting have been followed during 2011. Furthermore, the Company's auditor has, pursuant to Ch 8 Sec 54 of the Companies Act
(2005:551), provided a statement with respect to whether there has been compliance with the guidelines for remuneration to the Senior Executives which have applied since the previous Annual General Meeting.