Slide 1: Interim report presentation January-September 2024
Interim report presentation January-September 2024 Henrik Sjölund, CEO Anders Jernhall, CFO October 24th, 2024
Slide 2: Solid earnings despite slow cycle
Group Solid earnings despite slow cycle Strong Board and Paper performance 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 1 921 3 000 1 622 1 737 4 755 1 138 1 166 2 000 4 061 3 719 500 983 1 078 944 714 2 345 2 479 1 000 0 0 Q3-22 Q4-22 Q1-2
Slide 3: 16% ROCE in our industry in the last year
Group 16% ROCE in our industry in the last year 18% average for the last 10 years % 60 50 40 30 20 10 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 M12** Industry's return on capital employed* Average return on capital employed, industry* 3 *Excl. items affecting comparability. **Q4-23 – Q3-24
Slide 4: Dividends & buy-backs of SEK 6 bn 2023-2024
Group Dividends & buy-backs of SEK 6 bn 2023-2024 Net debt at 6% of equity SEKm Cash flow Capital employed 8 000 Forest 7 000 Renewable Energy 6 000 Wood Products Board and Paper 5 000 4 000 3 000 % Debt/equity ratio 2 000 25 20 1 000 15 10 0 5 19 20 21 22 23 M12* 0 Dividend Buy-back of own shares 1
Slide 5: Forest
Forest 1.3 million ha total land area 1.0 million ha productive forest land
Slide 6: Wood prices at record levels
Forest Wood prices at record levels Challenging to pass on log costs to construction end market W ood cost at mill gate Index (Holmen average) 220 200 180 160 140 120 100 80 60 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Saw logs Pulpwood 6
Slide 7: Price increases translating into higher profits
Forest Price increases translating into higher profits Harvesting cash-flow has increased 60% in 3 years SEKm SEKm 500 2 000 1 750 400 1 500 1 250 300 490 482 1 000 452 1 808 200 402 390 397 384 750 1 495 1 523 346 351 1 367 1 401 1 172 500 100 250 0 0 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24
Slide 8: Renewable Energy
Renewable Energy 1.8 TWh per year
Slide 9: Historically low Swedish power prices in Q3
Renewable Energy Historically low Swedish power prices in Q3 Power landlocked due to grid constraints Energy prices EUR/MWh 250 200 150 100 50 0 2019 2020 2021 2022 2023 2024 South Sweden (SE3) North Sweden (SE2) Germany 9 Source: Macrobond
Slide 10: Price level insufficient to cover depreciation in Q3
Renewable Energy Price level insufficient to cover depreciation in Q3 SEKm % SEKm % 500 125 1 250 25 400 100 1 000 20 300 75 750 15 463 200 50 282 500 1 006 10 100 214 213 208 25 135 697 68 59 250 5 0 0 468 336 347 -12 215 -100 -25 0 0 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 19 20 21 2
Slide 11: Wood Products
Wood Products 1.5 million m3 per year
Slide 12: Slow constructional cycle
Wood Products Slow constructional cycle Prices down after seasonal up-tick in April-May 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) 12 Source: Swedish Forest Industries
Slide 13: Lower selling prices & higher log costs
Wood Products Lower selling prices & higher log costs SEKm % SEKm % 200 40 2 000 100 150 30 1 500 75 100 20 177 1 000 50 1 668 50 10 1 237 55 47 500 25 23 19 0 0 0 -26 62 185 6 -67 0 0 -50 -10 -69 -89 -100 -20 -500 -25 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 19 20 21 22 23 M12* Operati
Slide 14: Board and Paper
Board and Paper 1.5 million tonnes per year
Slide 15: Muted consumer demand
Board and Paper Muted consumer demand European SBB and FBB demand Prices kton Index 3 000 160 140 2 500 120 2 000 100 1 500 80 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** *Oct 2023– Sep 2024 15 **Adjusted for rebates Source: CEPI and Fastmarke
Slide 16: Paper consumption moving sideways
Board and Paper Paper consumption moving sideways Oversupplied market Printing paper demand W E 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 Newsprin
Slide 17: Strong deliveries & production in Q3
Board and Paper Strong deliveries & production in Q3 Seasonally low costs for personnel and maintenance 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 2 730 400 868 10 1 000 20 724 1 721 611 653 200 370 438 5 50
Slide 18: Growing a sustainable future
Growing a sustainable future
Slide 19: holmen.com
HOLMEN holmen.com