Holmen

Quarterly Report • May 8, 2025

Holmen's Interim Report January-March 2025

		Quarter		Full year
SEKm	1-25	4-24	1-24	2024
Net sales	5 973	5 513	5 720	22 759
EBITDA	1 348	1 059	1 300	5 110
Operating profit	988	716	944	3 721
Profit after tax	752	558	744	2 861
Earnings per share, SEK	4.8	3.5	4.7	18.0
Operating margin, %	17	13	17	16
Book value, forest assets	58 098	57 843	56 532	57 843
Cash flow before investments and change in working capital	1 129	665	1 112	3 728
Net financial debt	3 560	3 397	2 034	3 397
Debt/equity ratio, %	6	6	4	6

• Operating profit for January-March amounted to SEK 988 million (January-March 2024: 944), corresponding to an operating margin of 17 per cent (17). Compared with the fourth quarter, operating profit increased by SEK 272 million due to higher deliveries of paperboard and paper, lower energy costs and reduced impact of planned production shutdowns.
• Profit after tax for January-March amounted to SEK 752 million (744), which corresponds to earnings per share of SEK 4.8 (4.7).
• In January-March, own shares were bought back for SEK 119 million, equal to 0.2 per cent of the total number of shares.
• The Annual General Meeting approved a dividend of SEK 12 per share (SEK 1 888 million), which was paid in April.
• The Board of Directors has decided to exercise the authorization from the 2025 AGM to buy back own shares.

CEO comments

The year began with optimism about the economic development, which turned into concern about the impact of the imposition of tariffs on trade flows and consumption. Despite challenging market conditions and a shortage of forest raw material, we have further advanced our positions in Board and Paper, which contributed to a strong result for the first quarter of SEK 988 million.

Competition for logs remains high but has eased somewhat for pulpwood due to lower industrial activity and weaker demand from the energy sector. Wood prices further increased, but the harvest was lower than normal, which meant that earnings from Forest decreased slightly to SEK 487 million. We manage the forest actively and responsibly to supply a growing industry with renewable raw material, which also provides the greatest climate benefit over time.

Energy is still expensive in Europe and electricity prices are being upheld by high fossil fuels prices. In Sweden, the cost of energy is significantly lower and, in northern Sweden, the electricity supply has been locked in for much of the time, resulting in historically low prices. The low electricity prices resulted in weak earnings from Renewable Energy in the first quarter, of SEK 29 million. As hydro power can be steered towards times when it is most needed, we still managed to maintain a premium for our hydro and wind power portfolio of around 30 per cent above the market price in northern Sweden.

Wood product consumption has been subdued in recent years. In the first quarter, wood product prices increased, driven by global raw material shortages and hopes of increased construction. The higher prices had a positive impact, but profit amounted to only SEK 1 million, due to rebuild shutdowns and increasing costs for logs. The imposition of tariffs is increasing uncertainty about market developments, while price differences for logs within Sweden are significant. We are therefore reviewing the production rate at Braviken Sawmill. However, with well-invested sawmills and a strong position in the wood market, we are in a good position for when the construction cycle turns.

There was a slight positive development in demand for consumer paperboard during the quarter, but consumption in Europe is still lower than before the pandemic. Demand for paper decreased in most segments. Market prices were largely unchanged. Despite weak market conditions, earnings from Board and Paper were strong, at SEK 528 million, thanks to good deliveries and unusually low energy costs. Our focus on niches in which fresh fibre comes into its own has enabled high capacity utilisation, but the imposition of tariffs is creating uncertainty about trade flows and consumer behaviour.

With our large forest holdings as a foundation, we grow trees for sustainable construction. From residual products we make renewable packaging, magazines and books, helping our customers to reduce their fossil carbon footprints. At the same time, we harness the energy that blows over the treetops and flows in the rivers. Given our strong financial position, we are well equipped to deal with a world marked by trade barriers and geopolitical tensions.

Forest

Holmen carries out active and sustainable forestry on over 1 million hectares of its own productive forest land. The annual harvest from own forest normally amounts to 2.8 million m3sub.

		Quarter		Full year
SEKm	1-25	4-24	1-24	2024
Net sales	2 572	2 396	2 233	9 318
Of which from own forest	448	538	455	1 990
Operating costs	-2 305	-2 099	-1 937	-8 203
Change in biological assets	238	245	174	907
EBITDA	505	542	470	2 022
Depreciation and amortisation according to plan	-18	-20	-18	-75
Operating profit	487	522	452	1 947
Investments (incl. reforestation)	37	47	38	229
Book value, forest assets	58 098	57 843	56 532	57 843
EBITDA margin*, %	61	58	62	54
Operating margin*, %	59	56	61	53
Deliveries, own forest, '000 m³sub	535	676	631	2 643

^*Profit from own forests before the change in value of biological assets as a percentage of own forest net sales.

Competition for logs remained high in the first quarter, whereas demand for pulpwood eased somewhat. Prices increased.

The harvest from Holmen's forests totalled 535 km3 (631)in January-March, which is lower than the long-term harvest plan.

Operating profit for January-March amounted to SEK 487 million (452). Earnings were affected positively by higher prices, but negatively by lower harvests.

Compared with the fourth quarter, operating profit decreased by SEK 35 million due to lower harvest. The decrease in profit was partly offset by higher prices.

Renewable Energy

In a normal year Holmen delivers 1.9 TWh of renewable hydro and wind power.

		Quarter		Full year
SEKm	1-25	4-24	1-24	2024
Net sales	130	117	302	642
Operating costs	-73	-79	-67	-267
EBITDA	57	38	235	375
Depreciation and amortisation according to plan	-28	-28	-28	-111
Operating profit	29	10	208	265
Investments	384	159	129	559
Capital employed	5 009	4 588	4 309	4 588
EBITDA margin, %	44	33	78	58
Operating margin, %	23	8	69	41
Deliveries hydro- and wind power, GWh	499	531	475	1 728

Electricity prices in northern Sweden remained lower than normal in the first quarter due to high water flows and averaged SEK 170/MWh (Q1 2024: 550, Q4 2024: 140).

Holmen's hydro and wind power deliveries amounted to 499 GWh (Q1 2024: 475) in January-March, which was 10 per cent lower than normal seasonal levels, due to the rebuild of Junsterforsen hydro power station. The levels in Holmen's water storage reservoirs at the end of March were significantly higher than normal for the time of the year.

Operating profit for January-March amounted to SEK 29 million (208). The decrease in earnings is due to significantly lower electricity prices.

Compared with the fourth quarter, earnings increased by SEK 19 million as a result of slightly higher electricity prices.

In March 2024, work began on the rebuild of Junsterforsen hydro power station, which generates 130 GWh in a normal year. The power station is scheduled to be commissioned in the summer.

^*Twelve-month rolling average.

Wood Products

Holmen delivers wood products for joinery and construction purposes. Production takes place at five sawmills adjacent to own forest with an annual production of 1.5 million cubic metres.

		Quarter		Full year
SEKm	1-25	4-24	1-24	2024
Net sales	1 061	933	989	3 896
Operating costs	-1 008	-909	-966	-3 708
EBITDA	53	24	23	188
Depreciation and amortisation according to plan	-52	-42	-49	-186
Operating profit	1	-18	-26	2
Investments	68	97	100	364
Capital employed	2 531	2 375	2 276	2 375
EBITDA margin, %	5	3	2	5
Operating margin, %	0	-2	-3	0
Deliveries, '000 m³	345	325	356	1 348

Demand for wood products remained weak in the first quarter, but prices increased due to raw material shortages.

Deliveries for January-March totalled 345 km3, which is 3 per cent lower than during the same period last year, but 6 per cent higher than in the fourth quarter.

Operating profit for January-March amounted to SEK 1 million (-26). Selling prices were just over 10 per cent higher than a year ago, but the effect was partly offset by higher costs for logs. In the first quarter, a rebuild shutdown took place at Iggesund Sawmill, which had a negative impact on earnings of SEK 30 million.

Compared with the fourth quarter, operating profit increased by SEK 19 million. Selling prices increased, but the effect on earnings was partly offset by higher costs for logs and the rebuild shutdown at Iggesund Sawmill.

^*Twelve-month rolling average.

Board and Paper

Holmen produces premium paperboard and innovative paper products from fresh fibre from sustainably managed forests. Annual production normally amounts to 1.5 million tonnes at a total of four production facilities in Sweden and the UK.

		Quarter		Full year
SEKm	1-25	4-24	1-24	2024
Net sales	3 897	3 709	3 655	15 238
Operating costs	-3 114	-3 223	-3 031	-12 552
EBITDA	783	486	624	2 686
Depreciation and amortisation according to plan	-255	-245	-253	-984
Operating profit	528	241	370	1 702
Investments	214	383	218	949
Capital employed	8 015	8 019	8 153	8 019
EBITDA margin, %	20	13	17	18
Operating margin, %	14	6	10	11
Deliveries, '000 tonnes	359	341	352	1 424

Demand for consumer paperboard in Europe was slightly higher than a year ago. As for paper, demand was lower than for the same period of last year. Prices were largely unchanged.

Holmen's deliveries of paperboard and paper increased in January-March to 359 ktonnes (352), which was 5 per cent higher than in the fourth quarter.

Operating profit for January-March amounted to SEK 528 million (370). The improved profit is due to good production and low energy costs. The increase in earnings was partly offset by higher wood prices, and SEK 40 million of temporarily increased production costs at Braviken Paper Mill when the solid fuel boiler was out of operation.

Compared with the fourth quarter, operating profit improved by SEK 287 million. Deliveries increased and energy costs were low. The fourth quarter was burdened by the effect of maintenance and rebuild shutdowns but benefited from revenue from emission allowances and green electricity certificates.

In the second and third quarters, major maintenance shutdowns will be carried out at Workington Mill and Iggesund Mill respectively, which are expected to have a negative impact on earnings of around SEK 150 million each.

The solid fuel boiler at Braviken, which was out of operation after a fire at the end of last year, is expected to be brought back into operation in the autumn after being repaired. Costs beyond those already accounted for are covered by insurance.

^*Twelve-month rolling average.

Cash flow, financing and net financial items

Cash flow from operating activities before changes in working capital totalled SEK 1 129 million (1 112) for January-March. Working capital increased, which had a SEK -523 million (-640) impact on cash flow. Cash flow from investing activities amounted to SEK -695 million (-486), of which SEK 370 million relates to the construction of Blisterliden Wind Farm. The investment is estimated at SEK 1 500 million, of which SEK 848 million has been paid out so far.

The Group's net financial debt increased by SEK 163 million to SEK 3 560 million in January-March. Net debt was 6 per cent of equity.

At 31 March, the Group's long-term borrowing amounted to SEK 2 502 million and its short-term borrowing totalled SEK 2 492 million. Cash and cash equivalents totalled SEK 1 565 million. The agreed credit facility amounts to SEK 4 000 million and is available until 2027. The credit facility is unused.

Standard & Poor's long-term credit rating for Holmen is BBB+ with a stable outlook.

Net financial items for January-March totalled SEK -20 million (-6).

Tax

Recognised tax for January-March amounted to SEK -215 million (-194). Recognised tax as a proportion of profit before tax was equal to 22 per cent (21).

Equity

In January-March, the Group's equity decreased by SEK 1 027 million to SEK 56 343 million. Profit for the period totalled SEK 752 million (744) and other comprehensive income totalled SEK 251 million (-711). Equity for the period was reduced by SEK 1 888 million of dividends approved but not paid, and SEK 119 million of shares were bought back.

Hedging of exchange rates

The Group hedges parts of its future estimated net flows in foreign currencies. Operating profit for January-March includes a gain from currency hedges of SEK 108 million (-122). For EUR/SEK, more than 2 years of expected net flows are hedged at an average exchange rate of 11.45. For other currencies, 4–5 months of flows are hedged.

Hedging of electricity prices

Electricity consumption at the Group's paper mills usually amounts to 3 TWh per year. To reduce the impact of changing electricity prices on profit, consumption is partly hedged. In the first quarter, 80 per cent of the paper mills' electricity consumption was hedged. For the remainder of 2025, 85 per cent is hedged. For 2026, price hedges are in place covering 70 per cent of consumption and 10 per cent for 2027.

The Group delivers 1.9 TWh of hydro and wind power in a normal year. Hydro and wind power are not hedged.

Personnel

The average number of employees (FTE) in the Group was 3 370 (3 422).

Dividend

The 2025 AGM set the dividend at SEK 12 (11.5) per share, of which SEK 3 (3) per share related to an extra dividend. The dividend, totalling SEK 1 888 million, was paid on 7 April.

Share buy-backs

In the first quarter, 300 000 shares were bought back for SEK 119 million, corresponding to an average price of SEK 397 per share. The buy-backs amount to 0.2 per cent of the total number of shares. The company already owned 3.0 per cent of the total number of shares, meaning that at 31 March 2025 Holmen held 3.2 per cent of the total number of shares.

The 2025 AGM renewed the Board's authorisation to take decisions on purchasing up to 10 per cent of the company's shares. The Board of Directors of has decided to exercise its authorisation from the AGM. Repurchases may take place from 8 May 2025 until the next annual general meeting and include a maximum of 3 million shares of class B.

Stockholm, 8th of May 2025 Holmen AB (publ)

Henrik Sjölund President and CEO

For further information please contact:

Henrik Sjölund, President and CEO, tel. +46 8 666 21 05 Stefan Loréhn, CFO, tel. +46 8 666 21 22 Stina Sandell, Senior Vice President Sustainability and Communications, tel. +46 73 986 51 12

		Quarter		Full year
Condensed income statement, SEKm	1-25	4-24	1-24	2024
Net sales	5 973	5 513	5 720	22 759
Other operating income	454	690	406	2 083
Change in inventories	-153	-128	150	233
Raw materials and consumables	-3 203	-3 064	-3 244	-12 752
Personnel costs	-860	-830	-840	-3 389
Other operating costs	-1 103	-1 371	-1 068	-4 739
Change in value of biological assets	238	245	174	907
Profit from investments in associates	1	4	2	7
Depreciation and amortisation according to plan	-360	-343	-356	-1 388
Operating profit	988	716	944	3 721
Finance income	7	8	16	39
Finance costs	-27	-22	-23	-101
Profit before tax	967	702	938	3 660
Tax	-215	-144	-194	-798
Profit for the period	752	558	744	2 861
Earnings per share, SEK
Basic	4.8	3.5	4.7	18.0
Diluted	4.8	3.5	4.7	18.0
Operating margin, %	17	13	17	16
Return on capital employed, %	6	5	6	6
Return on equity, %	5	4	5	5

		Quarter		Full year
Condensed statement of comprehensive income, SEKm	1-25	4-24	1-24	2024
Profit for the period	752	558	744	2 861
Other comprehensive income
Revaluation of forest land	-	454	-	454
Revaluation of defined benefit pension plans	-1	2	-3	-5
Tax attributable to items that will not be reclassified to profit for the period	0	-94	1	-92
Items that will not be reclassified to profit for the period	-1	362	-3	357
Cash flow hedging	406	-158	-961	-501
Translation difference on foreign operation	-146	63	118	181
Hedging of currency risk in foreign operation	95	-43	-79	-127
Tax attributable to items that will be reclassified to profit for the period	-103	41	214	129
Items that will be reclassified to profit for the period	252	-97	-708	-318
Total other comprehensive income after tax	251	265	-711	39
Total comprehensive income	1 003	823	33	2 900

	Jan-Mar
Condensed change in equity in summary, SEKm	2025	2024
Opening equity	57 370	56 923
Profit for the period	752	744
Other comprehensive income	251	-711
Total comprehensive income	1 003	33
Currency hedging result for the acquisition of fixed assets	-26	-
Share saving program	3	3
Buy-back of own shares	-119	-
Dividend	-1 888	-
Closing equity	56 343	56 960

	2025	2024
Condensed balance sheet, SEKm	31 Mar	31 Dec
Non-current assets
Biological assets	31 849	31 600
Forest land	26 249	26 243
Intangible non-current assets	494	498
Property, plant and equipment	11 351	11 231
Right-of-use assets	236	220
Investments in associates	1 692	1 701
Other shares and participating interests	6	6
Non-current financial receivables	47	46
Deferred tax assets	2	3
Total non-current assets	71 928	71 549
Current assets
Inventories	5 670	5 697
Trade receivables	2 975	2 823
Current tax receivable	31	144
Other operating receivables	1 674	1 085
Current financial receivables	73	15
Cash and cash equivalents	1 565	234
Total current assets	11 987	9 999
Total assets	83 915	81 548
Equity	56 343	57 370
Non-current liabilities
Non-current financial liabilities	2 502	2 502
Non-current liabilities relating to right-of-use assets	124	132
Pension obligations	8	9
Non-current provisions	384	389
Deferred tax liabilities	14 417	14 252
Total non-current liabilities	17 435	17 285
Current liabilities
Current financial liabilities	2 492	953
Current liabilities relating to right-of-use assets	120	95
Trade payables	3 780	3 808
Current tax liability	152	97
Current provisions	41	45
Other operating liabilities*	3 554	1 895
Total current liabilities	10 138	6 893
Total liabilities	27 573	24 178
Total equity and liabilities	83 915	81 548
Debt/equity ratio, %	6	6
Equity/assets ratio, %	67	70
Capital employed	59 903	60 767
Net financial debt	3 560	3 397

^*March 2025 include approved, but not paid, dividend of SEK 1 888 million (-).

		Quarter		Full year
Condensed cash flow statement, SEKm	1-25	4-24	1-24	2024
Operating activities
Profit before tax	967	702	938	3 660
Adjustments for non-cash items
Depreciation and amortisation according to plan	360	343	356	1 388
Change in value of biological assets	-238	-245	-174	-907
Other*	5	-6	7	12
Paid income taxes	35	-129	-15	-425
Cash flow from operating activities
before changes in working capital	1 129	665	1 112	3 728
Cash flow from changes in working capital
Change in inventories	-8	-312	-228	-824
Change in trade receivables and other operating receivables	-540	517	-428	4
Change in trade payables and other operating liabilities	24	220	17	409
Cash flow from operating activities	606	1 091	472	3 317
Investing activities
Acquisition of non-current assets	-706	-698	-487	-2 123
Disposal of non-current assets	11	18	1	57
Cash flow from investing activities	-695	-680	-486	-2 066
Financing activities
Amortization of liabilities associated with to right-of-use assets	-32	-31	-33	-127
Change in financial liabilities and current financial receivables	1 575	-1 077	-9	385
Buy-back of own shares	-119	-183	-	-647
Dividends paid to the shareholders of the parent company	-	-	-	-1 831
Cash flow from financing activities	1 424	-1 291	-43	-2 221
Cash flow for the period	1 335	-880	-57	-970
Opening cash and cash equivalents	234	1 113	1 202	1 202
Exchange difference in cash and cash equivalents	-3	1	2	2
Closing cash and cash equivalents	1 565	234	1 147	234

		Quarter		Full year
Change in net financial debt, SEKm	1-25	4-24	1-24	2024
Opening net financial debt	-3 397	-3 543	-1 869	-1 869
Cash flow from operating activities	606	1 091	472	3 317
Cash flow from investing activities	-695	-680	-486	-2 066
Buy-back of own shares	-119	-183	-	-647
Dividend paid	-	-	-	-1 831
Liabilities arising from new right-of-use agreements	-49	-17	-55	-105
Revaluations of defined benefit pension plans	-1	2	-3	-3
Foreign exchange effects and changes in fair value	94	-68	-93	-192
Closing net financial debt	-3 560	-3 397	-2 034	-3 397

^*The adjustments consist primarily of change in provisions, profit from investments in associates, currency effects and revaluations of financial instruments as well as capital gains/losses on sale of non-current assets.

Parent company

		Quarter		Full year
Condensed income statement, SEKm	1-25	4-24	1-24	2024
Operating income	5 612	5 346	5 329	21 646
Operating costs	-5 268	-5 405	-5 008	-20 620
Operating profit	344	-59	321	1 027
Net financial items	80	279	-85	284
Profit after net financial items	424	221	236	1 311
Appropriations	100	-28	149	366
Profit before tax	523	192	385	1 677
Tax	-113	10	-85	-302
Profit for the period	410	202	299	1 375

		Quarter		Full year
Condensed statement of comprehensive income, SEKm	1-25	4-24	1-24	2024
Profit for the period	410	202	299	1 375
Other comprehensive income
Cash flow hedging	407	-161	-963	-503
Tax attributable to other comprehensive income	-84	33	198	104
Items that will be reclassified to profit for the period	323	-128	-765	-400
Total comprehensive income	733	75	-465	976

	2025	2024
Condensed balance sheet, SEKm	31 Mar	31 Dec
Non-current assets	19 437	19 374
Current assets	10 391	8 152
Total assets	29 828	27 527
Restricted equity	5 915	5 915
Non-restricted equity	4 760	6 058
Untaxed reserves	4 955	4 950
Provisions	1 313	1 215
Liabilities	12 886	9 389
Total equity and liabilities	29 828	27 527

Sales to Group companies accounted for SEK 71 million (96) of operating income for January-March.

Appropriations include net Group contributions totalling SEK 104 million (280).

The parent company's investments in property, plant and equipment and intangible assets totalled SEK 9 million (13).

Notes

1. Accounting policies

This report was prepared in accordance with IAS 34, Interim Financial Reporting. Information in accordance with IAS 34.16A can be found in the financial statements and their accompanying notes, as well as in other parts of the interim report. The consolidated accounts are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the Swedish Annual Accounts Act. The parent company's accounts are prepared in accordance with RFR 2 Accounting for Legal Entities and the Swedish Annual Accounts Act. New or revised IFRS and interpretative statements from IFRIC have not had any material effect on the earnings or position of the Group or the parent company. The figures in tables are rounded off.

2. Forest land and biological assets

The Group's forest land is recognised at fair value based on transaction prices in the counties where the Group owns forest land, less the fair value of standing trees recognised as biological assets. The value of forest land is usually updated at year-end and following acquisitions or disposals. Fair value measurement is based on measurement level 3. Only productive forest land is assigned a value.

The value of the biological assets is determined by calculating the present value of expected future cash flows, less selling costs but before tax, from current standing trees, and is continually updated during the year.

Biological assets were valued at SEK 31 849 million (31 Dec 2024: 31 600) at 31 March. The change in value of biological assets, calculated as the net of the change due to harvesting and the unrealised change in fair value, totalled SEK 238 million in the first quarter and is recognised as a change in value relating to biological assets in the income statement. The book value of forest land at 31 March was SEK 26 249 million (31 Dec 2024: 26 243).

3. External net sales by market

	Forest	Renewable	Wood	Board and	Group
Jan-Mar 2025		Energy	Products	Paper
Scandinavia	886	129	348	291	1 655
Rest of Europe	-	-	393	2 841	3 234
Asia	-	-	67	447	514
Rest of the world	-	-	252	317	569
Total Net sales	886	129	1 061	3 897	5 973

	Forest	Renewable	Wood	Board and	Group
Jan-Mar 2024		Energy	Products	Paper
Scandinavia	774	302	367	175	1 617
Rest of Europe	0	-	349	2 821	3 170
Asia	-	-	50	385	436
Rest of the world	-	-	223	273	496
Total Net sales	775	302	989	3 655	5 720

4. Composition of share capital

Share structure	Votes	No. of shares	No. of votes	Quotient value	SEKm
A share	10	45 246 468	452 464 680	26	1 180
B share	1	117 265 856	117 265 856	26	3 058
Total number of shares		162 512 324	569 730 536		4 238
Holding of own B shares bought back		-5 144 132	-5 144 132
Total number of shares issued		157 368 192	564 586 404

5. Financial instruments

	Book value		Fair value
	2025	2024		2024
SEKm	31 Mar	31 Dec	31 Mar	31 Dec
Assets at fair value	844	427	844	427
Assets at acquisition cost	4 564	3 082	4 564	3 082
Liabilities at fair value	439	578	439	578
Liabilities at acquisition cost	8 772	7 242	8 772	7 242

Holmen measures financial instruments at fair value or cost in the balance sheet depending on their classification. In addition to items of net financial debt, excluding pension obligations and liabilities related to right-of-use assets, financial instruments include trade receivables and trade payables. Financial instruments measured at fair value in the balance sheet belong to measurement level 2 pursuant to IFRS 13 and mostly consist of electricity price, currency and interest rate hedging derivatives. Their net fair value at 31 March was SEK 405 million, which is SEK 555 million higher than at year-end, mainly due to the change in the fair value of the electricity and currency derivatives.

6. Alternative performance measures

Holmen uses performance measures to supplement measures defined by IFRS or directly in the income statement and balance sheet in order to clarify the company's financial position and performance.

Earnings measures

Operating profit is the principal measure of earnings that is used to monitor financial performance. This includes all income and costs except for financial items and tax. Depreciation/amortisation of non-current assets is also included. EBITDA (earnings before interest, taxes, depreciation and amortisation) is used as a supplementary measure. To clarify how these earnings measures are affected by matters outside normal business operations, such as impairment losses, closures, major restructuring measures and breakdowns, as well as changes to assumptions in the valuation of biological assets, the term 'items affecting comparability' is used. The purpose is also to increase comparability between different periods. The effects of maintenance and rebuilding shutdowns are not treated as items affecting comparability. There are no items affecting comparability in the operating profit/loss for January-March. A description of the items that are recognised as affecting comparability in previous periods is provided on page 128 of Holmen's annual report for 2024.

		Quarter		Full year
SEKm	1-25	4-24	1-24	2024
EBITDA	1 348	1 059	1 300	5 110
Depreciation and amortisation according to plan	-360	-343	-356	-1 388
Operating profit excl. items affecting comparability	988	716	944	3 721
Items affecting comparability	-	-	-	-
Operating profit	988	716	944	3 721

Measure of margin, return and indebtedness

Operating profit, excluding items affecting comparability, as a proportion of sales is known as the operating margin. EBITDA as a proportion of sales is known as the EBITDA margin. The performance measure of return on capital employed is used to measure operating profit, excluding items affecting comparability, as a proportion of capital employed. Capital employed is calculated as fixed assets plus working capital less the net sum of deferred tax liabilities and deferred tax assets. This corresponds to equity plus net financial debt. Average capital employed is calculated based on quarterly data.

	2025	2024
SEKm	31 Mar	31 Dec
Fixed assets*	71 879	71 500
Working capital**	2 438	3 516
Deferred tax assets	2	3
Deferred tax liabilities	-14 417	-14 252
Capital employed	59 903	60 767

^*Forest assets, non-current intangible assets, property, plant and equipment, right-of-use assets, investments in associates and other shares and participations.

^**Inventories, trade receivables, current tax receivable, other current operating receivables, trade payables, current tax liability, non-current provisions, current provisions and other operating liabilities

The debt/equity ratio is calculated as net financial debt divided by equity. The equity/assets ratio is calculated as equity divided by total assets. Net financial debt consists of the following components:

	2025	2024
SEKm	31 Mar	31 Dec
Non-current financial liabilities	2 502	2 502
Non-current liabilities relating to right-of-use assets	124	132
Current financial liabilities	2 492	953
Current liabilities relating to right-of-use assets	120	95
Pension obligations	8	9
Non-current financial receivables	-47	-46
Current financial receivables	-73	-15
Cash and cash equivalents	-1 565	-234
Net financial debt	3 560	3 397

7. Transaction with related parties

There were no transactions between Holmen and related parties that had a significant effect on the company's financial position and performance.

8. Material risks and uncertainties

The Group's and the parent company's material risks and uncertainties relate primarily to changes in demand and the prices of its products, the cost of key input goods, and changes in exchange rates. For a more detailed description of the material risks and uncertainties, see Holmen's annual report for 2024, pages 49–53, and Note 26. The tariffs imposed between the United States and other countries have so far only had a marginal effect on the Group's earnings and financial position. The Group's sales to the United States are limited and amounted to 4 per cent of total sales in the first quarter of 2025. The indirect effects of tariffs, resulting from example changes in trade patterns, are difficult to assess. If they were to affect markets that are important for Holmen, there is a risk that the Group's earnings and financial position would be adversely affected. Holmen continuously monitors developments in order to take measures to minimise such potential effects. Page 53 of Holmen's annual report for 2024 describes how changes in deliveries or prices affect the Group's earnings.

	2025		2024			Jan-Mar		Full year
Quarterly figures, SEKm	Q1	Q4	Q3	Q2	Q1	2025	2024	2024
Income statement
Net sales	5 973	5 513	5 632	5 894	5 720	5 973	5 720	22 759
Operating costs	-4 865	-4 703	-4 522	-4 743	-4 596	-4 865	-4 596	-18 563
Change in value of biological assets	238	245	320	168	174	238	174	907
Profit from associates	1	4	1	0	2	1	2	7
EBITDA	1 348	1 059	1 431	1 319	1 300	1 348	1 300	5 110
Depreciation and amortisation according to plan	-360	-343	-353	-336	-356	-360	-356	-1 388
Operating profit	988	716	1 078	983	944	988	944	3 721
Net financial items	-20	-14	-23	-18	-6	-20	-6	-62
Profit before tax	967	702	1 055	965	938	967	938	3 660
Tax	-215	-144	-239	-221	-194	-215	-194	-798
Profit for the period	752	558	816	744	744	752	744	2 861
Earnings per share, SEK	4.8	3.5	5.1	4.7	4.7	4.8	4.7	18.0
Net sales Forest		2 396	2 198	2 491	2 233		2 233	9 318
Renewable Energy	2 572 130	117	63	159	302	2 572 130	302	642
Wood Products	1 061	933	921	1 053	989	1 061	989	3 896
Board and Paper	3 897	3 709	3 980	3 894	3 655	3 897	3 655	15 238
Elimination of intra-group net sales	-1 687	-1 641	-1 531	-1 704	-1 459	-1 687	-1 459	-6 335
Group	5 973	5 513	5 632	5 894	5 720	5 973	5 720	22 759
EBITDA by business area
Forest Renewable Energy	505	542 38	501 15	509 87	470 235	505	470 235	2 022 375
Wood Products	57 53	24	48	93	23	57 53	23	188
Board and Paper	783	486	903	673	624	783	624	2 686
Group-wide	-50	-31	-36	-44	-51	-50	-51	-162
Group	1 348	1 059	1 431	1 319	1 300	1 348	1 300	5 110
Operating profit/loss by business area
Forest	487	522	482	490	452	487	452	1 947
Renewable Energy	29	10	-12	59	208	29	208	265
Wood Products	1	-18	0	47	-26	1	-26	2
Board and Paper	528	241	653	438	370	528	370	1 702
Group-wide	-58	-39	-44	-51	-59	-58	-59	-194
Group	988	716	1 078	983	944	988	944	3 721
Operating margin, %
Wood Products	0	-2	0	4	-3	0	-3	0
Board and Paper	14	6	16	11	10	14	10	11
Group	17	13	19	17	17	17	17	16
Return on capital employed, % Industry (Wood Products, Board and Paper)	20	8	25	18	14	20	14	16
Group	6	5	7	7	6	6	6	6
Return on equity, %
Group	5	4	6	5	5	5	5	5
Deliveries
Own forest, '000 m³sub	535	676	561	776	631	535	631	2 643
Hydro- and windpower, GWh	499	531	365	357	475	499	475	1 728
Wood products, '000 m³	345	325	325	342	356	345	356	1 348
Board and paper, '000 tonnes	359	341	370	361	352	359	352	1 424

Full year review, SEKm	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Income statement
Net sales Operating costs	22 759	22 795	23 952	19 479	16 327 -18 563 -17 249 -15 865 -14 622 -13 250 -13 961 -12 984 -13 379 -12 626 -13 348	16 959	16 055	16 133	15 513	16 014
Change in value of biological assets	907	562	509	464	579	487	425	415	315	267
Profit from associates and JV	7	6	10	0	-6	0	-9	-12	-22	7
EBITDA*	5 110	6 114	8 607	5 321	3 651	3 486	3 488	3 157	3 179	2 940
Depreciation and amortisation according to plan	-1 388	-1 360	-1 345	-1 261	-1 172	-1 141	-1 012	-991	-1 018	-1 240
Operating profit excl. items affecting
comparability	3 721	4 755	7 262	4 061	2 479	2 345	2 476	2 166	2 162	1 700
Items affecting comparability	-	-	266	-330	-	8 770	-94	-	-232	-931
Operating profit	3 721	4 755	7 527	3 731	2 479	11 115	2 382	2 166	1 930	769
Net financial items	-62	-49	-87	-39	-42	-34	-25	-53	-71	-90
Profit before tax	3 660	4 705	7 441	3 691	2 437	11 081	2 356	2 113	1 859	679
Tax	-798	-1 008	-1 567	-688	-458	-2 351	-89	-445	-436	-120
Profit for the year	2 861	3 697	5 874	3 004	1 979	8 731	2 268	1 668	1 424	559
Earnings per share, SEK	18.0	23.0	36.3	18.5	12.2	52.6	13.5	9.9	8.5	3.4
EBITDA by business area*
Forest	2 022	1 600	1 488	1 573	1 422	1 217	1 216	1 099	1 030	935
Renewable Energy	375	807	1 112	375	242	362	205	159	143	198
Wood Products	188	190	1 441	1 857	309	159	337	165	80	86
Board and Paper	2 686	3 687	4 713	1 679	1 820	1 887	1 861	1 884	2 051	1 860
Group-wide	-162	-170	-148	-163	-143	-140	-132	-149	-124	-138
Group	5 110	6 114	8 607	5 321	3 651	3 486	3 488	3 157	3 179	2 940
Operating profit by business area*
Forest	1 947	1 523	1 401	1 495	1 367	1 172	1 185	1 069	1 001	905
Renewable Energy	265	697	1 006	347	215	336	181	135	120	176
Wood Products	2	6	1 237	1 668	185	62	246	80	-3	9
Board and Paper	1 702	2 730	3 796	743	886	944	1 018	1 053	1 192	772
Group-wide	-194	-202	-178	-193	-174	-168	-154	-170	-148	-163
Group	3 721	4 755	7 262	4 061	2 479	2 345	2 476	2 166	2 162	1 700
Deliveries
Own forest, '000 m³sub	2 643	2 702	2 813	2 833	2 841	2 699	2 816	2 883	2 945	3 132
Hydro- and windpower, GWh	1 728	1 658	1 639	1 230	1 352	1 109	1 145	1 169	1 080	1 441
Wood products, '000 m³	1 348	1 498	1 435	1 373	1 052	879	828	852	776	730
Board and paper, '000 tonnes	1 424	1 343	1 498	1 573	1 426	1 534	1 561	1 643	1 630	1 824
Balance sheet
Forest assets	57 843	56 348	52 151	47 080	43 202	41 345	18 701	17 971	17 595	17 340
Other non-current assets	13 659	12 781	12 477	12 251	11 784	10 781	10 586	10 780	11 106	12 184
Current assets	9 750	9 277	14 758	7 956	6 878	6 264	6 845	5 710	5 852	5 607
Financial receivables	295	1 313	2 050	814	679	950	781	430	338	325
Total assets	81 548	79 719	81 436	68 101	62 543	59 340	36 912	34 891	34 891	35 456
Equity Deferred tax liability	57 370 14 252	56 923 13 858	56 950 13 490	46 992 11 610	42 516 10 570	40 111 10 299	23 453 5 839	22 035 5 650	21 243 5 613	20 853 5 508
Financial liabilities and interest-bearing provisions	3 692	3 182	4 195	4 915	4 860	4 733	3 587	3 366	4 283	5 124
Operating liabilities	6 234	5 755	6 801	4 584	4 597	4 196	4 033	3 840	3 752	3 971
Total equity and liabilities	81 548	79 719	81 436	68 101	62 543	59 340	36 912	34 891	34 891	35 456
Cash flow
Operating activities	3 317	5 805	5 484	3 229	2 457	2 884	2 286	2 509	1 961	2 526
Investing activities**	-2 066	-1 653	-1 352	-1 332	-1 924	-1 050	-1 005	-644	-123	-824
Cash flow after investments	1 251	4 153	4 132	1 897	533	1 834	1 281	1 865	1 838	1 702
Key ratios
Return on capital employed, industry, %***	16	27	52	26	12	12	15	13	13	6
Return on equity, %	5	7	11	7	5	35	10	8	7	3
Debt/equity ratio, %	6	3	4	9	10	9	12	13	19	23
Ordinary dividend, SEK	9	8.5	8	7.5	7.25	3.5	6.75	6.5	6	5.5
Extra dividend, SEK	3	3	8	4	3.5	-	-	-	-	-
Share buy-backs	647	1 119	-	-	-	1 430	-	-	-	-
Average number of employees	3 498	3 546	3 466	3 474	2 974	2 915	2 955	2 976	2 989	3 315

^*Excl. items affecting comparability. **Net after disposals and before changes in non-current financial receivables.

^***Wood Products, Board and Paper excl. items affecting comparability.

Holmen in brief

Holmen's extensive forest holdings are the foundation of our business. Using our own production facilities, the growing trees are refined into everything from wood for climate-smart building to renewable packaging, magazines and books, while at the same time we generate hydro and wind power on our own land. A business that not only creates value for shareholders and customers, but also contributes to a better climate and thriving rural communities.

Press and analyst conference

On the publication of the interim report, a webcast press and analyst conference will be held at 09.00 CEST on Thursday 8th of May. Holmen President and CEO Henrik Sjölund, together with CFO Stefan Loréhn, will present and comment on the report. The presentation will be held in English.

The press and analyst conference will be webcast and may be followed via: www.holmen.com/reports

You may also participate in the conference by telephone, by calling no later than 08.55 CEST on:

Within Sweden: +46 8 505 100 31 From the rest of Europe: +44 207 107 06 13 From the US: +1 631 570 56 13

Financial report

14 August 2025 Interim report January-June 2025 23 October 2025 Interim report January-September 2025

30 January 2026 Year-end report 2025

This is information that Holmen AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 CEST on Thursday, 8 May 2025.

This is a translation of the Swedish interim report of Holmen Aktiebolag (publ.). In the event of inconsistency between the English and the Swedish versions, the Swedish version shall prevail.