Holmen

Quarterly Report • Apr 26, 2024

Holmen's Interim Report January-March 2024

		Quarter		Full year
SEKm	1-24	4-23	1-23	2023
Net sales	5 720	5 400	6 223	22 795
EBITDA	1 300	1 059	2 080	6 114
Operating profit	944	714	1 737	4 755
Profit after tax	744	538	1 371	3 697
Earnings per share, SEK	4.7	3.4	8.5	23.0
Operating margin, %	17	13	28	21
Book value, forest assets, SEKm	56 532	56 348	52 308	56 348
Cash flow before investments and change in working capital	1 112	551	2 299	5 311
Net financial debt	2 034	1 869	376	1 869
Debt/equity ratio, %	4	3	1	3

• Operating profit for January-March amounted to SEK 944 million (January-March 2023: 1 737), which corresponds to an operating margin of 17 per cent. The decrease in operating profit is due to lower paper prices and the positive impact of income from the sale of surplus electricity the previous year.
• Compared with the fourth quarter, operating profit increased by SEK 230 million. The increase is mainly due to a major maintenance shutdown, which had a negative impact off SEK 180 million in the previous quarter.
• Profit after tax for January-March amounted to SEK 744 million (1 371), which corresponds to earnings per share of SEK 4.7 (8.5).

*Excl. items affecting comparability.

CEO comments

In the first quarter, consumption and new construction were subdued by central banks maintaining high interest rates to contain inflation. Thanks to strong earnings from forest, hydro power and paper, we were still able to deliver a good profit of SEK 944 million.

Although the forest industry was not producing at full capacity, competition for logs and pulpwood was strong. Wood prices continued to increase, which further increased profit from forest to SEK 452 million. Our position in the wood market, with good control over the raw materials and the entire value chain, is becoming increasingly important as demand for forest raw materials grows. It ensures the security of our raw material supplies and puts us in a good position to develop our industries.

Electricity prices in the Nordics were higher than normal due to a cold winter and low hydro and nuclear power production. At SEK 208 million, profit from energy were largely unchanged compared with the previous quarter, where higher electricity prices were offset by lower hydro power production. During the quarter we decided to invest SEK 1.5 billion in the construction of Blisterliden Wind Farm, which will increase our electricity production from hydro and wind by 20 per cent.

The wood products market continued to be marked by weak construction activity, but prices still increased due to a global shortage of raw materials. However, the price increase was not enough to offset the increased cost of logs, resulting in a SEK -26 million loss from wood products. With well-invested sawmills and an increased processing capacity, we will be in a strong position when the construction market turns.

The consumer paperboard market recovered somewhat as our customers' stocks are back to normal levels. Paperboard prices have been under pressure but stabilised during the quarter. For paper, demand was largely unchanged after a significant decrease the previous year. Paper prices slightly decreased. Despite lower prices and higher raw material costs, board and paper delivered a profit of SEK 370 million. By bringing our process industry expertise together, we are improving our capacity for business development in consumer paperboard as well as transport packaging, books and magazines.

Holmen has developed well by creating added value from the forest and land we own, and our business model is now focused on four distinct business lines, i.e. forestry, hydro and wind power, woodworking industry and process industry operations. With our large forest holdings as a foundation, we grow houses while also harnessing the energy that blows over the treetops and flows in the rivers. We then make renewable packaging, magazines and books from the residual forestry products. Our strong financial position equips us well for a world that is set to transition to a fossil-free society.

Key figures Q1 2024

Operating profit, SEKm Operating margin, % Debt/equity ratio, %

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	1-24	4-23	1-23	2023
Net sales	2 233	1 939	2 105	7 996
Of which from own forest	455	422	384	1 768
Operating costs	-1 937	-1 714	-1 865	-6 958
Change in biological assets	174	183	133	562
EBITDA	470	408	373	1 600
Depreciation and amortisation according to plan	-18	-24	-22	-77
Operating profit	452	384	351	1 523
Investments (incl. reforestation)	38	53	28	222
Book value, forest assets	56 532	56 348	52 308	56 348
EBITDA margin, %*	62	52	61	57
Operating margin, %*	61	50	59	55
Deliveries, own forest, '000 m³sub	631	618	620	2 702

*Own forest before change in biological assets.

Competition on the wood market remained strong and prices increased further in the first quarter.

Operating profit for January-March was SEK 452 million (351). The improvement in earnings is attributable to an increase in wood prices of just over 15 per cent.

Compared with the fourth quarter, profit increased by SEK 68 million as a result of increasing wood prices.

Renewable Energy

In a normal year Holmen delivers 1.8 TWh of renewable hydro and wind power.

		Quarter		Full year
SEKm	1-24	4-23	1-23	2023
Net sales	302	312	368	1 070
Operating costs	-67	-72	-60	-263
EBITDA	235	241	309	807
Depreciation and amortisation according to plan	-28	-28	-27	-110
Operating profit	208	213	282	697
Investments	129	28	9	59
Capital employed	4 309	4 283	4 319	4 283
EBITDA margin, %	78	77	84	75
Operating margin, %	69	68	76	65
Deliveries hydro and wind power, GWh	475	491	517	1 658

Electricity prices in the Nordics were higher than normal in the first quarter due to a cold winter and low hydro and nuclear power production. In northern Sweden, the electricity price averaged 550 SEK/MWh (Q1 2023: 600, Q4 2023: 500).

Operating profit for January-March was SEK 208 million (282). The decrease in earnings is the result of 10 per cent lower electricity prices in northern Sweden and lower wind power production.

Profit was largely unchanged compared with the fourth quarter. Higher electricity prices made a positive contribution, but this was offset by lower hydro power production.

In March, the replacement of the generator and turbine at Junsterforsen Power Plant began, and is expected to take all year and result in a loss of production of 90 GWh.

In the first quarter, a decision was made to invest SEK 1.5 billion to build Blisterliden Wind Farm. The wind farm should be commissioned in 2026 and is expected to produce 360 GWh per year in a normal year.

*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	1-24	4-23	1-23	2023
Net sales	989	935	1 087	4 075
Operating costs	-966	-983	-1 017	-3 885
EBITDA	23	-48	70	190
Depreciation and amortisation according to plan	-49	-41	-48	-184
Operating profit	-26	-89	23	6
Investments	100	168	75	391
Capital employed	2 276	2 139	2 193	2 139
EBITDA margin, %	2	-5	6	5
Operating margin, %	-3	-10	2	0
Deliveries, '000 m³	356	359	397	1 498

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

Operating profit for January-March was SEK -26 million (23). The decrease in profit is due to lower deliveries. The cost of logs increased, but this was offset by higher selling prices and increased income from the sale of wood chips and biofuel.

Compared with the fourth quarter, profit improved by SEK 63 million, as selling prices increased slightly more than the cost of raw materials, and as the fourth quarter was negatively affected by a shutdown for a rebuild 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	1-24	4-23	1-23	2023
Net sales	3 655	3 471	4 005	14 965
Operating costs	-3 031	-2 968	-2 630	-11 278
EBITDA	624	503	1 374	3 687
Depreciation and amortisation according to plan	-253	-243	-239	-957
Operating profit	370	260	1 135	2 730
Investments	218	343	201	1 011
Capital employed	8 153	7 625	8 050	7 625
EBITDA margin, %	17	14	34	25
Operating margin, %	10	7	28	18
Deliveries, '000 tonnes	352	337	338	1 343

Demand for both consumer paperboard and paper was at the same level as a year ago. Paperboard prices stabilised after being under pressure. Paper prices slightly decreased from a high level.

Operating profit for January-March was SEK 370 million (1 135). The decrease in profit is mainly due to lower paper prices and the positive impact of income from the sale of surplus electricity the previous year.

Profit increased by SEK 110 million compared with the fourth quarter. The annual maintenance shutdown at Iggesund Mill had a negative impact off SEK 180 million on profit for the fourth quarter. Lower selling prices and higher raw material costs had a negative impact on profit but were partly offset by increased deliveries.

The annual maintenance shutdown at Iggesund Mill is planned for the fourth quarter, with an expected negative impact on profit of SEK 200 million.

*Excl. items affecting comparability. **Excl. items affecting comparability and twelve-month rolling average.

Cash flow, financing and net financial items

Cash flow from operating activities before changes in working capital totalled SEK 1 112 million (2 299) for January-March. Working capital increased, which had a SEK -640 million (-150) impact on cash flow. Cash flow from investing activities was SEK -486 million (-319).

The Group's net financial debt increased by SEK 165 million to SEK 2 034 million in January-March. Net debt was 4 per cent of equity.

At 31 March, the Group's long-term borrowing amounted to SEK 1 600 million and short-term borrowing was SEK 1 300 million. Cash and cash equivalents totalled SEK 1 147 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 -7 million (-10).

Tax

Recognised tax for January-March amounted to SEK -194 million (-356). Recognised tax as a proportion of profit before tax was 21 per cent (21).

Equity

In January-March, the Group's equity increased by SEK 37 million to SEK 56 960 million. Profit for the period amounted to SEK 744 million (1 371) and other comprehensive income amounted to SEK -711 million (-2 184), which mainly relates to changes in the market value of electricity and currency hedges.

Hedging of exchange rates

The Group hedges parts of its future estimated net flows in foreign currencies. Operating profit for January-March includes results from currency hedges of SEK -122 million (-108). For EUR/SEK, more than 2 years of expected net flows are hedged at an average exchange rate of 11.15. For other currencies, 4-8 months of flows are hedged.

Hedging of electricity prices

Electricity consumption at the Group's paper mills 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 2024, 90 per cent is hedged. For 2025, price hedges are in place covering 85 per cent, 40 per cent is hedged for 2026 and 10 per cent for 2027.

The Group delivers 1.8 TWh of hydro and wind power in a normal year. There are no hedges for the remainder of 2024.

Personnel

The average number of employees (FTE) in the Group was 3 422 (3 451).

Dividend

The 2024 AGM set the dividend at SEK 11.5 (16) per share, of which SEK 3 (8) per share related to an extra dividend. The dividend, totalling SEK 1 831 million, was paid on 23 April.

Share buy-backs

The 2024 AGM renewed the Board's authorisation to take decisions on purchasing up to 10 per cent of the company's shares. No buy-backs took place during the period. The company holds 2.0 per cent of the total number of shares.

Stockholm, 26 April 2024 Holmen AB (publ)

Henrik Sjölund President and CEO

The report has not been reviewed by the company's auditors.

For further information please contact:

Henrik Sjölund, President and CEO, tel +46 8 666 21 05 Anders Jernhall, Executive Vice President and 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	1-24	4-23	1-23	2023
Net sales	5 720	5 400	6 223	22 795
Other operating income	406	522	487	1 996
Change in inventories	150	-200	83	-79
Raw materials and consumables	-3 244	-2 799	-2 823	-11 162
Personnel costs	-840	-839	-826	-3 312
Other operating costs	-1 068	-1 205	-1 204	-4 691
Change in value of biological assets	174	183	133	562
Profit from investments in associates	2	-3	8	6
Depreciation and amortisation according to plan	-356	-345	-343	-1 360
Operating profit	944	714	1 737	4 755
Finance income	16	15	16	49
Finance costs	-23	-27	-26	-98
Profit before tax	938	702	1 727	4 705
Tax	-194	-164	-356	-1 008
Profit for the period	744	538	1 371	3 697
Earnings per share, SEK
Basic	4.7	3.4	8.5	23.0
Diluted	4.7	3.4	8.5	23.0
Operating margin, %*	17	13	28	21
Return on capital employed, %*	6	5	12	8
Return on equity, %	5	4	10	7
*Excl. item affecting comparability.

		Quarter		Full year
Condensed statement of comprehensive income, SEKm	1-24	4-23	1-23	2023
Profit for the period	744	538	1 371	3 697
Other comprehensive income
Revaluation of forest land	-	3 493	-	3 493
Revaluations of defined benefit pension plans	-3	4	11	-6
Tax attributable to items that will not be reclassified to profit for the period	1	-720	-2	-718
Items that will not be reclassified to profit for the period	-3	2 777	9	2 769
Cash flow hedging	-961	759	-2 789	-3 549
Translation difference on foreign operation	118	-92	48	55
Hedging of currency risk in foreign operation	-79	58	-33	-42
Tax attributable to items that will be reclassified to profit for the period	214	-168	581	740
Items that will be reclassified to profit for the period	-708	557	-2 193	-2 795
Total other comprehensive income after tax	-711	3 334	-2 184	-27
Total comprehensive income	33	3 872	-813	3 671

	Jan-Mar
Condensed change in equity in summary, SEKm	2024	2023
Opening equity	56 923	56 950
Profit for the period	744	1 371
Other comprehensive income	-711	-2 184
Total comprehensive income	33	-813
Share saving program	3	3
Dividend	-	-2 592
Closing equity	56 960	53 547

	2024	2023
Condensed balance sheet, SEKm	31 Mar	31 Dec
Non-current assets
Forest assets
Biological assets	30 738	30 555
Forest land	25 795	25 793
Intangible non-current assets	509	513
Property, plant and equipment	10 526	10 330
Right-of-use assets	265	244
Investments in associates	1 688	1 686
Other shares and participating interests	5	5
Non-current financial receivables	62	61
Deferred tax assets	3	3
Total non-current assets	69 591	69 190
Current assets
Inventories	5 102	4 837
Trade receivables	3 241	2 696
Current tax receivable	50	114
Other operating receivables	997	1 630
Current financial receivables	7	50
Cash and cash equivalents	1 147	1 202
Total current assets	10 544	10 529
Total assets	80 135	79 719
Equity	56 960	56 923
Non-current liabilities
Non-current financial liabilities	1 602	1 902
Non-current liabilities relating to right-of-use assets	158	160
Pension obligations	11	9
Non-current provisions	411	418
Deferred tax liabilities	13 752	13 858
Total non-current liabilities	15 934	16 347
Current liabilities
Current financial liabilities	1 365	1 021
Current liabilities relating to right-of-use assets	114	91
Trade payables	3 387	3 394
Current tax liability	120	105
Current provisions	36	31
Other operating liabilities	2 219	1 808
Total current liabilities	7 241	6 449
Total liabilities	23 175	22 796
Total equity and liabilities	80 135	79 719
Debt/equity ratio, %	4	3
Equity/assets ratio, %	71	71
Capital employed	58 994	58 793
Net financial debt	2 034	1 869

		Quarter		Full year
Condensed cash flow statement, SEKm	1-24	4-23	1-23	2023
Operating activities
Profit before tax	938	702	1 727	4 705
Adjustments for non-cash items
Depreciation and amortisation according to plan	356	345	343	1 360
Change in value of biological assets	-174	-183	-133	-562
Other*	7	-10	-5	-31
Paid income taxes	-15	-304	367	-160
Cash flow from operating activities
before changes in working capital	1 112	551	2 299	5 311
Cash flow from changes in working capital
Change in inventories	-228	341	-61	11
Change in trade receivables and other operating receivables	-428	326	451	899
Change in trade payables and other operating liabilities	17	110	-540	-417
Cash flow from operating activities	472	1 329	2 149	5 805
Investing activities
Acquisition of non-current assets	-487	-601	-319	-1 706
Disposal of non-current assets	1	7	1	53
Cash flow from investing activities	-486	-594	-319	-1 653
Financing activities
Amortization of liabilities associated with to right-of-use assets	-33	-31	-31	-114
Change in financial liabilities and current financial receivables	-9	-417	-521	-1 064
Buy-back of own shares	-	-	-	-1 119
Dividends paid to the shareholders of the parent company	-	-	-	-2 592
Cash flow from financing activities	-43	-448	-552	-4 888
Cash flow for the period	-57	287	1 279	-736
Opening cash and cash equivalents	1 202	917	1 935	1 935
Exchange difference in cash and cash equivalents	2	-2	1	3
Closing cash and cash equivalents	1 147	1 202	3 214	1 202

		Quarter		Full year
Change in net financial debt, SEKm	1-24	4-23	1-23	2023
Opening net financial debt	-1 869	-2 616	-2 145	-2 145
Cash flow from operating activities	472	1 329	2 149	5 805
Cash flow from investing activities (excl. financial receivables and acquisition)	-486	-594	-319	-1 653
Buy-back of own shares	-	-	-	-1 119
Dividend paid	-	-	-	-2 592
Liabilities arising from new right-of-use agreements	-55	-42	-34	-117
Revaluations of defined benefit pension plans	-3	3	9	-6
Foreign exchange effects and changes in fair value	-93	51	-36	-43
Closing net financial debt	-2 034	-1 869	-376	-1 869

*The adjustments consist primarily of change in provisions, interests in earnings of associated companies, currency effects and revaluations of financial instruments as well as capital gains/losses on sale of fixed assets.

Parent company

		Quarter		Full year
Condensed income statement, SEKm	1-24	4-23	1-23	2023
Operating income	5 329	5 201	5 699	21 571
Operating costs	-5 008	-5 089	-4 780	-19 152
Operating profit	321	112	919	2 419
Net financial items	-85	129	-37	359
Profit after net financial items	236	240	882	2 778
Appropriations	149	77	-189	190
Profit before tax	385	317	693	2 968
Tax	-85	-71	-143	-547
Profit for the period	299	246	550	2 421

		Quarter		Full year
Condensed statement of comprehensive income, SEKm	1-24	4-23	1-23	2023
Profit for the period	299	246	550	2 421
Other comprehensive income
Cash flow hedging	-963	762	-2 672	-3 429
Tax attributable to other comprehensive income	198	-157	550	706
Items that will be reclassified to profit for the period	-765	605	-2 121	-2 723
Total comprehensive income	-465	851	-1 571	-302

	2024	2023
Condensed balance sheet, SEKm	31 Mar	31 Dec
Non-current assets	19 022	18 810
Current assets	8 826	8 901
Total assets	27 848	27 711
Restricted equity	5 915	5 915
Non-restricted equity	7 071	7 533
Untaxed reserves	4 615	4 484
Provisions	1 142	1 308
Liabilities	9 104	8 471
Total equity and liabilities	27 848	27 711

Sales to Group companies accounted for SEK 96 million (90) of operating income for January-March.

Appropriations include net Group contributions totalling SEK 280 million (-57).

The parent company's investments in property, plant and equipment and intangible assets totalled SEK 13 million (10).

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. In the first quarter of 2024, Board and Paper was reported on as a new business area. Comparison periods have therefore been recalculated. The figures in tables are rounded off.

2. Forest assets

The Group's forest assets are recognised at fair value based on the transaction prices for forest properties in those areas where the Group has forest land. Forest assets are usually valued at year-end. The total value of the forest assets is allocated across growing trees and forest land. The value of the growing trees, which is recognised in accordance with IAS 41 biological assets, is determined by calculating the present value of expected cash flows and is updated regularly during the year. Changes in value are recognised in the income statement. The value of forest land is recognised in accordance with IAS 16 and is updated when the annual value of the forest assets is calculated, and when there are acquisitions or disposals. Changes in the value of forest land are recognised in other comprehensive income.

The value of the biological assets at 31 March was SEK 30 738 million (31 Dec 2023: 30 555). 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 174 million in the first quarter and is recognised in the Group's operating profit. The book value of forest land at 31 March was SEK 25 795 million (31 Dec 2023: 25 793).

3. External net sales by market

	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

	Forest	Renewable	Wood	Board and	Group
Jan-Mar 2023		Energy	Products	Paper
Scandinavia	762	368	416	196	1 742
Rest of Europe	1	-	372	3 183	3 555
Asia	-	-	99	441	540
Rest of the world	-	-	200	186	386
Total Net sales	763	368	1 087	4 005	6 223

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		-3 289 969	-3 289 969
Total number of shares issued		159 222 355	566 440 567

5. Financial instruments

	Book value			Fair value
	2024	2023	2024	2023
SEKm	31 Mar	31 Dec	31 Mar	31 Dec
Assets at fair value	317	941	317	941
Assets at acquisition cost	4 412	3 926	4 412	3 926
Liabilities at fair value	1 017	561	1 017	561
Liabilities at acquisition cost	6 306	6 314	6 306	6 314

Holmen measures financial instruments at fair value or at 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 -700 million, which is SEK 1 080 million lower than at year-end, mainly due to the change in the market value of 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. Operating profit for January-March 2024 and the comparison periods included no items affecting comparability. Page 112 of Holmen's 2023 annual report shows the items recognised as affecting comparability in previous periods.

		Quarter		Full year
SEKm	1-24	4-23	1-23	2023
EBITDA	1 300	1 059	2 080	6 114
Depreciation and amortisation according to plan	-356	-345	-343	-1 360
Operating profit excl. items affecting comparability	944	714	1 737	4 755
Items affecting comparability	-	-	-	-
Operating profit	944	714	1 737	4 755

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.

	2024	2023
SEKm	31 Mar	31 Dec
Fixed assets*	69 526	69 126
Working capital**	3 217	3 522
Deferred tax assets	3	3
Deferred tax liabilities	-13 752	-13 858
Capital employed	58 994	58 793

*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:

	2024	2023
SEKm	31 Mar	31 Dec
Non-current financial liabilities	1 602	1 902
Non-current liabilities relating to right-of-use assets	158	160
Current financial liabilities	1 365	1 021
Current liabilities relating to right-of-use assets	114	91
Pension obligations	11	9
Non-current financial receivables	-62	-61
Current financial receivables	-567	-50
Cash and cash equivalents	-587	-1 202
Net financial debt	2 034	1 869

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 2023, pages 49–53, and Note 27.

Quarterly figures, SEKm	2024 Q1	Q4	2023 Q3	Q2	Q1	Full year 2023
Income statement
Net sales	5 720	5 400	5 418	5 754	6 223	22 795
Operating costs	-4 596	-4 521	-4 053	-4 391	-4 284	-17 249
Change in value of biological assets	174	183	140	106	133	562
Profit from associates and joint ventures	2	-3	0	1	8	6
EBITDA	1 300	1 059	1 505	1 471	2 080	6 114
Depreciation and amortisation according to plan	-356	-345	-339	-332	-343	-1 360
Operating profit	944	714	1 166	1 138	1 737	4 755
Net financial items	-6	-12	-18	-10	-10	-49
Profit before tax	938	702	1 148	1 129	1 727	4 705
Tax	-194	-164	-250	-239	-356	-1 008
Profit for the period	744	538	898	890	1 371	3 697
Earnings per share, SEK	4.7	3.4	5.6	5.5	8.5	23.0
Net sales
Forest	2 233	1 939	1 880	2 073	2 105	7 996
Renewable Energy	302	312	159	231	368	1 070
Wood Products	989	935	929	1 124	1 087	4 075
Board and Paper	3 655	3 471	3 749	3 740	4 005	14 965
Elimination of intra-group net sales	-1 459	-1 257	-1 298	-1 413	-1 342	-5 311
Group	5 720	5 400	5 418	5 754	6 223	22 795
EBITDA by business area
Forest	470	408	417	402	373	1 600
Renewable Energy	235	241	95	163	309	807
Wood Products	23	-48	66	102	70	190
Board and Paper	624	503	961	848	1 374	3 687
Group-wide	-51	-44	-34	-44	-47	-170
Group	1 300	1 059	1 505	1 471	2 080	6 114
Operating profit/loss by business area
Forest	452	384	397	390	351	1 523
Renewable Energy	208	213	68	135	282	697
Wood Products	-26	-89	19	55	23	6
Board and Paper	370	260	724	611	1 135	2 730
Group-wide	-59	-54	-41	-52	-54	-202
Group	944	714	1 166	1 138	1 737	4 755
Operating margin, %
Wood Products	-3	-10	2	5	2	0
Board and Paper	10	7	19	16	28	18
Group	17	13	22	20	28	21
Return on capital employed, %
Industry (Wood Products, Board and Paper)	14	7	29	26	47	27
Group	6	5	8	8	12	8
Return on equity, %
Group	5	4	7	7	10	7
Deliveries
Own forest, '000 m³sub	631	618	676	788	620	2 702
Hydro- and wind power, GWh	475	491	317	334	517	1 658
Wood Products, '000 m³	356	359	353	388	397	1 498
Board and Paper, '000 tonnes	352	337	346	323	338	1 343

Full year review, SEKm	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Income statement
Net sales	22 795	23 952	19 479	16 327	16 959	16 055	16 133	15 513	16 014	15 994
Operating costs				-17 249 -15 865 -14 622 -13 250 -13 961 -12 984 -13 379 -12 626 -13 348 -13 270
Change in value of biological assets	562	509	464	579	487	425	415	315	267	282
Profit from associates and JV	6	10	0	-6	0	-9	-12	-22	7	-7
EBITDA*	6 114	8 607	5 321	3 651	3 486	3 488	3 157	3 179	2 940	2 999
Depreciation and amortisation according to plan	-1 360	-1 345	-1 261	-1 172	-1 141	-1 012	-991	-1 018	-1 240	-1 265
Operating profit excl. items affecting
comparability	4 755	7 262	4 061	2 479	2 345	2 476	2 166	2 162	1 700	1 734
Items affecting comparability	-	266	-330	-	8 770	-94	-	-232	-931	-450
Operating profit	4 755	7 527	3 731	2 479	11 115	2 382	2 166	1 930	769	1 284
Net financial items	-49	-87	-39	-42	-34	-25	-53	-71	-90	-147
Profit before tax	4 705	7 441	3 691	2 437	11 081	2 356	2 113	1 859	679	1 137
Tax	-1 008	-1 567	-688	-458	-2 351	-89	-445	-436	-120	-230
Profit for the year	3 697	5 874	3 004	1 979	8 731	2 268	1 668	1 424	559	907
Earnings per share, SEK	23.0	36.3	18.5	12.2	52.6	13.5	9.9	8.5	3.4	5.4
EBITDA by business area*
Forest	1 600	1 488	1 573	1 422	1 217	1 216	1 099	1 030	935	845
Renewable Energy	807	1 112	375	242	362	205	159	143	198	233
Wood Products	190	1 441	1 857	309	159	337	165	80	86	160
Board and Paper	3 687	4 713	1 679	1 820	1 887	1 861	1 884	2 051	1 860	1 887
Group-wide	-170	-148	-163	-143	-140	-132	-149	-124	-138	-126
Group	6 114	8 607	5 321	3 651	3 486	3 488	3 157	3 179	2 940	2 999
Operating profit by business area*
Forest	1 523	1 401	1 495	1 367	1 172	1 185	1 069	1 001	905	817
Renewable Energy	697	1 006	347	215	336	181	135	120	176	212
Wood Products	6	1 237	1 668	185	62	246	80	-3	9	37
Board and Paper	2 730	3 796	743	886	944	1 018	1 053	1 192	772	815
Group-wide	-202	-178	-193	-174	-168	-154	-170	-148	-163	-146
Group	4 755	7 262	4 061	2 479	2 345	2 476	2 166	2 162	1 700	1 734
Deliveries
Own forest, '000 m³sub	2 702	2 813	2 833	2 841	2 699	2 816	2 883	2 945	3 132	3 207
Hydro- and wind power, GWh	1 658	1 639	1 230	1 352	1 109	1 145	1 169	1 080	1 441	1 113
Wood products, '000 m³	1 498	1 435	1 373	1 052	879	828	852	776	730	725
Board and Paper, '000 tonnes	1 343	1 498	1 573	1 426	1 534	1 561	1 643	1 630	1 824	1 798
Balance sheet
Forest assets	56 348	52 151	47 080	43 202	41 345	18 701	17 971	17 595	17 340	17 032
Other non-current assets	12 781	12 477	12 251	11 784	10 781	10 586	10 780	11 106	12 184	13 189
Current assets	9 277	14 758	7 956	6 878	6 264	6 845	5 710	5 852	5 607	5 964
Financial receivables	1 313	2 050	814	679	950	781	430	338	325	249
Total assets	79 719	81 436	68 101	62 543	59 340	36 912	34 891	34 891	35 456	36 434
Equity	56 923	56 950	46 992	42 516	40 111	23 453	22 035	21 243	20 853	20 969
Deferred tax liability	13 858	13 490	11 610	10 570	10 299	5 839	5 650	5 613	5 508	5 480
Financial liabilities and interest-bearing provisions	3 182	4 195	4 915	4 860	4 733	3 587	3 366	4 283	5 124	6 156
Operating liabilities	5 755	6 801	4 584	4 597	4 196	4 033	3 840	3 752	3 971	3 829
Total equity and liabilities	79 719	81 436	68 101	62 543	59 340	36 912	34 891	34 891	35 456	36 434
Cash flow
Operating activities	5 805	5 484	3 229	2 457	2 884	2 286	2 509	1 961	2 526	2 176
Investing activities**	-1 653	-1 352	-1 332	-1 924	-1 050	-1 005	-644	-123	-824	-815
Cash flow after investments	4 153	4 132	1 897	533	1 834	1 281	1 865	1 838	1 702	1 361
Return on capital employed, industry, %***	27	52	26	12	12	15	13	13	6	7
Return on equity, %	7	11	7	5	35	10	8	7	3	4
Debt/equity ratio, %	3	4	9	10	9	12	13	19	23	28
Ordinary dividend, SEK	8.5	8	7.5	7.25	3.5	6.75	6.5	6	5.5	5
Extra dividend, SEK	3	8	4	3.5	-	-	-	-	-	-
Average number of employees	3 546	3 466	3 474	2 974	2 915	2 955	2 976	2 989	3 315	3 359

*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 Friday 26th of April. Holmen President and CEO Henrik Sjölund, together with Executive Vice President and CFO Anders Jernhall, 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

15 August 2024 Interim report January-June 2024 24 October 2024 Interim report January-September 2024 31 January 2025 Year-end report 2024

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 Friday, 26 April 2024.

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.