Holmen Ab Class A · OMXSTO:HOLM_A
Holmen Ab Class A — Shareholder Meeting (2014)
28 slides from Holmen Ab Class A's shareholder meeting presentation, 2014
Slide 1: Mr Chairman, esteemed shareholders
Mr Chairman, esteemed shareholders, Holmen has been in a period of considerable change for a while now. During such times it is more important than ever to establish a clear identity and a direction for the future. There has been a sharp focus on the process over the past two years... 1
Slide 2: Strategy and change management
…and here we can see an extract from the Annual Report where we present the strategy that will drive the work forward. At the same time, we have worked intensively with our employees to increase motivation and awareness of the objectives we have for the future. Now and then, I meet people who say th
Slide 3: 2013 results
But let us start by looking at the past year. Holmen has reported weak results for 2013. The Group’s net sales were down from SEK 17.9 billion to SEK 16.2 billion. Operating profit, excluding items affecting comparability, was down from SEK 1.7 billion to SEK 1.2 billion. Investments, which stood at
Slide 4: Financial position and dividend proposal
Holmen’s Board has established the aim for the Group to have a strong financial position that provides stability and an opportunity to make investment decisions more independently of economic conditions and external financing possibilities. Over the year, the target for the debt/equity ratio has bee
Slide 5: Iggesund Paperboard strategy
Our strategy is for Holmen to be the customers’ first choice for high performance paperboard. For many years now, Iggesund Paperboard has held a market- leading position in the premium paperboard segment. As a result of the major investments that have been made in recent years, conditions are good f
Slide 6: Paperboard demand and deliveries
As the chart shows, demand in 2013 was good. Iggesund Paperboard’s deliveries were, however, slightly down on the previous year, primarily due to production losses from a maintenance shutdown. 6
Slide 7: Paperboard profit
Profit for our paperboard business was also down, due in part to the strong Swedish krona, but also to a major maintenance shutdown at Iggesund Mill and production disruptions. Once these issues had been rectified, production at the pulp mill beat previous records. 7
Slide 8: New biofuel boiler in Workington
Here we can see the new biofuel boiler in Workington, which became operational at the beginning of the year and also made a positive contribution to 2013 earnings. 8
Slide 9: Workington mill changes
The mill in Workington has undergone major changes over the past few years. The oldest of the mill’s two machines was shut down in 2009 and the remaining machine was upgraded at the same time. This action enabled us to shift our market position to a higher quality segment. The number of employees wa
Slide 10: Paperboard mills and new management
Together with the previous investment in a new recovery boiler and turbine at Iggesund Mill, both our paperboard mills are now well placed to achieve excellent production efficiency and significant environmental benefits. Iggesund Paperboard has also undergone major organisational change. Annica Bre
Slide 11: Holmen Paper strategy
Now let us turn our attention to Holmen Paper and our printing paper business, in which Holmen aims to be the customers’ first choice for innovative printing paper products. The strategic direction for Holmen Paper is to be a speciality paper producer that exploits the unique properties of virgin fi
Slide 12: Printing paper demand and speciality products
Overall demand for printing paper continues to fall, but the market balance for newsprint still improved due to extensive closures. In fact, we closed two paper machines ourselves in the autumn, one for newsprint and one for SC magazine paper. Holmen Paper’s deliveries of the strategic products MF M
Slide 13: Holmen Paper results
Holmen Paper has posted a loss overall. This is attributable to the strong Swedish krona, lower volumes and lower selling prices. Rationalisations and lower wood prices have had a positive impact. One glimmer of light was offered by the modest price rises for newsprint that became possible around th
Slide 14: Restructuring of printing paper business
Holmen Paper has undergone substantial restructuring over the past five years. Five out of ten paper machines have been shut down, production capacity has been cut by over 30 per cent, and the number of employees has more than halved. At the same time, the product mix has shifted towards more specia
Slide 15: Holmen Timber strategy
The strategy for the sawmill business is to be the customers’ first choice for high quality base products for building in wood. The aim is also for Holmen Timber to be Scandinavia’s most cost-effective producer of sawn timber. 15
Slide 16: Sawn timber market and sawmill results
The market for sawn timber remained weak during 2013, but there are encouraging signs. Both of Holmen’s sawmills produced record volumes and profits improved, especially towards the end of the year. Contributing to this improvement were slightly higher sales prices coupled with lower raw material co
Slide 17: Braviken Sawmill and bio co-location
With the construction of Braviken Sawmill, Holmen has broadened its portfolio of sawn timber, enabling the company to capture market share in a new segment. Both our sawmills are also part of an integrated bio co-location with their neighbouring paperboard board and paper mills. In addition, they en
Slide 18: Wood supply chain synergies
There are also significant synergies in the wood supply chain, making us a good partner for forest owners. This combination of factors provides us with competitive advantages. 18
Slide 19: Wood in construction and new markets
Wood is currently used a great deal in building individual houses, but there are many other applications for wood, including high-rise buildings, sports halls, multi- storey car parks, bridges, and so on. As the applications increase, so new markets open up. Demand is also rising in geographic marke
Slide 20: Holmen Skog strategy
“The value of Holmen’s forest holdings shall increase through measures to promote growth and by using land for wind power-related business opportunities.” This is the strategy for our Holmen Skog business area. The Group’s considerable forest holdings enable it to pursue cost-effective forestry. The
Slide 21: Holmen Skog earnings and film
Compared with the previous year, Holmen Skog’s earnings from operations rose, largely due to a high volume of harvesting and lower costs, although selling prices were also lower. Operating profit, which includes a change in value of SEK 264 million, remained essentially unchanged. Overall, our fores
Slide 22: New product areas based on wood fibre
There we have it. “Growing our future”… But there are those who do not believe this to be the case. Those who assert that consumption of forest raw materials is going to decline, who talk about the forest industry gap between supply and demand. I am not among them. Part of Holmen’s strategy relates
Slide 23: New Business Development unit
In order to take a more focused approach towards the strategy of seeking out new product areas based on wood fibre, this year saw the establishment of the New Business Development unit within the Group. Its work will be led by Ola Schultz-Eklund, formerly managing director of the Workington mill. De
Slide 24: Holmen Energi
And so, on to Holmen Energi. Holmen’s production is to be based on a significant proportion of energy from internal renewable sources. In addition to developing and managing our existing hydro and wind power assets, the business area is tasked with preparing for wind power investments on the Group’s
Slide 25: Holmen Energi operating profit
The operating profit for Holmen Energi was slightly up on the previous year. The figure includes SEK +102 million associated with the establishment of a jointly owned wind power company for the wind farm in Varsvik outside Norrtälje. Higher property tax reduced profit by SEK 32 million. 25
Slide 26: First wind farm and hydro power holdings
I am delighted that we were able to break ground for Holmen’s first wind farm during 2013. The investment is being made by a company jointly owned by Holmen and the French investment fund Eurofideme 2. Holmen now wholly or partially owns 21 hydro power stations and three wind farms. Combined with th
Slide 27: Sustainability and investments
The extensive investments made in recent years have been hugely significant for the Group’s profitability and competitiveness, but also for the environment and the climate. They have made a strong contribution towards realising the Group’s sustainability targets. The Group’s use of fossil fuels, for
Slide 28: Closing remarks and CEO handover
Ladies and gentlemen. This is the 10th time I’ve stood before the AGM and reported on the Group’s operations. It will also be my last as CEO of Holmen. Tomorrow, Henrik Sjölund will take over as President and CEO. I would like to take this opportunity to wish Henrik every success in his new role. It