Holmen (HOLM) Investor presentation summary

Land and resource management

• Manages 1.3 million hectares of land, with 1.0 million hectares as productive forest area, supporting sustainable harvests and biodiversity initiatives.

• Annual harvests reach 2.8 million m³ of wood, with plans for increased harvesting aligned with ecosystem health.

• Forest holdings are valued at market price, showing steady appreciation over recent years.

• Property development processes include feasibility studies, stakeholder dialogue, and permit applications.

Financial performance and capital allocation

• Operating profit has fluctuated, with strong energy support but weaker industrial results.

• SEK 1.5 billion dividend paid in April, with net debt at 10% of equity post-dividend.

• Return on capital employed (ROCE) in the industry is currently 11%, below the 10-year average of 20%.

• Buybacks and capital expenditure are ongoing, maintaining a conservative debt/equity ratio.

Renewable energy and market dynamics

• Generates 2.2 TWh of hydro and wind power annually, contributing to strong financial results.

• Renewable energy operations have produced at a 30% premium to market price over the last five years.

• High energy prices, especially during cold weather and low wind periods, have boosted profitability.

• Commissioning of new wind farms supports future growth.