Slide 1: Interim report presentation January-March 2024
Interim report presentation January-March 2024 Henrik Sjölund, CEO Anders Jernhall, CFO April 26th, 2024
Slide 2: Forest
Forest 1.3 million ha total land area 1.0 million ha productive forest land
Slide 3: Lack of wood pushing up prices to record levels
Forest Lack of wood pushing up prices to record levels Despite slow end markets Wood cost at mill gate Index (Holmen average) 200 180 160 140 120 100 80 60 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Saw logs Pulpwood 3
Slide 4: Price increases translating into higher profits
Forest Price increases translating into higher profits SEKm SEKm 500 1 800 450 1 600 400 1 400 350 1 200 300 1 000 250 452 800 1 623 200 402 397 1 495 1 523 390 384 1 367 1 401 349 346 351 600 150 305 1 172 100 400 50 200 0 0 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 19 20 21 22 23 M12**
Slide 5: Renewable Energy
Renewable Energy 1.8 TWh per year
Slide 6: Weather & low production kept Nordic power prices high in Q1
Renewable Energy Weather & low production kept Nordic power prices high in Q1 Energy prices EUR/MWh 250 200 150 100 50 0 2019 2020 2021 2022 2023 2024 South Sweden (SE3) North Sweden (SE2) Germany 6 Source: Macrobond
Slide 7: Hydro earnings at strong levels
Renewable Energy Hydro earnings at strong levels SEKm % SEKm % 500 125 1 250 25 400 100 1 000 20 300 75 750 15 463 200 50 500 1 006 10 282 697 624 100 214 213 208 25 250 5 168 162 135 336 347 68 215 0 0 0 0 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 19 20 21 22 23 M12** Operating profit*
Slide 8: Wood Products
Wood Products 1.5 million m3 per year
Slide 9: Global shortage of logs constrains supply
Wood Products Global shortage of logs constrains supply Index 330 280 230 180 130 80 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Export price 'World Price' (FX-basket) Export price Sawn softwood (SEK) 9 Source: Swedish Forest Industries
Slide 10: Downtime impacting profitability
Wood Products Downtime impacting profitability SEKm % SEKm % 600 60 2 000 100 500 50 1 500 75 400 40 1 000 50 300 598 30 529 1 668 200 20 1 237 500 25 100 177 10 62 185 6 23 55 19 0 0 0 0 -43 -67 -89 -26 -100 -10 -500 -25 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 19 20 21 22 23 M12* Oper
Slide 11: Board and Paper
Board and Paper 1.5 million tonnes per year
Slide 12: Board destocking is over
Board and Paper Board destocking is over Price pressure fading European SBB and FBB demand Prices kton Index 3 500 160 3 000 140 120 2 500 100 2 000 80 1 500 60 1 000 40 500 20 0 0 15 16 17 18 19 20 21 22 23 M12* 15 16 17 18 19 20 21 22 23 24 FBB Pulp NBSK** *Q2-23 – Q1-24 12 **Adjusted for rebates
Slide 13: Paper prices declining somewhat
Board and Paper Paper prices declining somewhat Printing paper demand WE Prices kton Index 16 000 250 14 000 200 12 000 10 000 150 8 000 100 6 000 4 000 50 2 000 0 0 15 16 17 18 19 20 21 22 23 M12* 15 16 17 18 19 20 21 22 23 24 Uncoated magazine & book Coated magazine Newsprint Uncoated magazine Pul
Slide 14: Lower prices and energy costs impacting profit
Board and Paper Lower prices and energy costs impacting profit Some compensation from higher deliveries SEKm % SEKm % 1 600 40 4 000 80 1 400 35 3 500 70 1 200 30 3 000 60 1 000 25 2 500 50 800 20 2 000 40 3 796 600 1 231 15 1 500 30 1 135 2 730 1 041 400 868 10 1 000 20 724 1 965 655 611 200 370 5
Slide 15: Group
Group
Slide 16: Solid earnings despite slow cycle
Group Solid earnings despite slow cycle Good contribution from forest, hydro power & paper Operating profit* Operating profit* SEKm SEKm 8 000 2 500 7 000 2 000 6 000 5 000 1 500 4 000 7 262 1 000 2 101 1 921 3 000 1 617 1 622 1 737 4 755 1 138 1 166 2 000 4 061 3 962 500 944 714 2 345 2 479 1 000 0
Slide 17: Growing a sustainable future
Growing a sustainable future
Slide 18: EU has high ambitions for climate & ecosystems
EU has high ambitions for climate & ecosystems 18
Slide 19: European industry has not decarbonised
European industry has not decarbonised Biodiversity is under pressure European industrial emissions Biodiversity Intactness Index Europe (excl. combustion) 2005–2022 90% threshold for healthy ecosystems 800 100 700 95 600 90 500 Mt CO2e 85 400 300 80 200 75 100 70 0 1970 1980 1990 2000 2010 2023 19
Slide 20: We have lowered our fossil emissions by 90%
We have lowered our fossil emissions by 90% Swedish ecosystems are in balance Emissions from Holmen's production Biodiversity Intactness Index Sweden 2005–2023 90% threshold for healthy ecosystems 800 100 700 95 600 90 500 Kt CO2 85 400 300 80 200 75 100 70 0 1970 1980 1990 2000 2010 2023 20 Source:
Slide 21: Access to wood & fossil-free energy
Access to wood & fossil-free energy Forrest assets* Carbon intensity from electricity production** 21 *Proportion of forested land, %. Source: FAO Global Forest Resources Assessment 2020 **Carbon intensity from electricity production (gCO2eq/kWh). Source: Electicity Maps, entsoe.eu
Slide 22: Clean air and plenty of water in the Nordics
Clean air and plenty of water in the Nordics Air pollution* Water stress** 22 *Particles less than 2.5 micrometres per m3 (μg/m3). Source: European Environment Agency **The total demand for water relative to the renewable water resources available. Source: Aqueduct, World Resources Institute
Slide 23: We're beyond net zero
We’re beyond net zero 1.6 Mt CO 2 0.5 Mt CO 2 -0.1 Mt CO e Scope 1+2 2 Net increase in growing forest Net storage in buildings -0.6 Mt CO e Scope 3 2 23
Slide 24: 1.3 million ha total land area
Packaging, Wood products books & magazines 1.5 Mm3 1.5 Mton Harvest in own forests Hydro and wind power 2.8 Mm3 1.8 TWh 1.3 million ha total land area
Slide 25: holmen.com
HOLMEN holmen.com