NET INTEREST-BEARING DEBT

Total debt/booked debt may differ for Norske Skog's maturity profiles. This is due to premiums or discounts on issued bonds, hedge reserve and fair value hedging.

Norske Skog has recognised an amount in the balance sheet as a result of the termination of a large part of the fair value hedge portfolio in the first half of 2009. A hedge reserve (deferred income) amounting to NOK 247 million is included in interest-bearing debt as at 31 March 2012. The corresponding figure as at 31 December 2011 was NOK 270 million, and NOK 338 million as of 31 December 2010.

The hedge reserve does not constitute any payment obligation for the group, but will be amortised in the income statement over the lifetime of the debt that has been hedged.
The carrying amount is not included in net interest-bearing debt when calculating the gearing ratio. The calculation is shown in the table below:

in NOK mill	31 March 2012 Reported Acc to loan agr)**
Interest-bearing non-current liabilities	7 862 7 873
Interest-bearing current liabilities	638 640
- Hedge reserve	247 240
- Fair value Hedge	- -
- Cash and Cash equivalents	1 157 1 156
= Net interest-bearing debt	7 096 7 117
*Adj net interest bearing debt )**	7 202

*) Adjusted net interest bearing debt according to definition in loan agreement

**) Calculated using the average exchange rate per month for the last 12-month period