Annual Report 2021
We groW
houses
We groW
change
contents
2021
Holmen in brief
CEO’s message
Strategy and targets
Investment case
The year in brief
Forest
Paperboard
Paper
Wood Products
Renewable Energy
A sustainable business
Employees
Corporate governance report
Risk management
Shareholder information
03
04
06
10
14
16
18
20
22
24
26
36
38
43
48
Financial statements
Notes
Proposed appropriation of profits
Auditor’s report
Review of Sustainability Report
Board of Directors
Group management
Key figures
Ten-year review, finance
Five-year review, sustainability
Business overview
Definitions and glossary
Calendar and information
50
56
83
85
87
88
90
91
92
94
96
98
99
100% Holmen-produced
This entire annual report is made using Holmen’s
own products. The cover is printed on Invercote G,
manufactured at Iggesund Mill. This is a paper-
board with high whiteness and a smooth, matt
surface. The paperboard is ideal for graphical
products with a surface finish. The insert is
printed on Holmen TRND, which is manufactured
at Hallsta Paper Mill. This is an uncoated, matt
magazine paper that offers a wide range of options
in terms of bulk, grammage and shade. Both
Holmen TRND and Invercote G are made using
fresh fibre from sustainably managed forests.
The Board of Directors and the CEO of Holmen
Aktiebolag (publ.), corporate identity number
556001-3301, submit their annual report for
the parent company and the Group for the 2021
financial year. The annual report comprises the
administration report (pages 2, 6–9, 14–15, 34–49,
83–84, 88–89) and the financial statements,
together with the notes and supplementary infor-
mation (pages 50–82). The statutory sustainability
report in accordance with the Annual Accounts Act
is included in the annual report (pages 8–9, 31,
34–37, 40–42, 44–45). The Group’s consolidated
income statement and balance sheet and the parent
company’s income statement and balance sheet
will be adopted at the Annual General Meeting.
The basis for the sustainability information
presented is the issues identified as key in view
of the materiality analysis conducted in 2018.
The Sustainability Report has been compiled in
accordance with the Global Reporting Initiative’s
GRI guidelines at Core level. The report comprises
pages 2, 4–10, 12–13, 16–50, 61, 63–66, 80, 87–
90, 94–97. GRI index is available at holmen.com.
The information is audited by a third party, see
separate assurance report at holmen.com.
This is a translation of the Swedish annual report
of Holmen Aktiebolag (publ.). In the event of
inconsistency between the English and the Swedish
versions, the Swedish version shall prevail.
The cover is printed on Invercote G 280 gsm. The insert is printed on Holmen TRND, 2.0 – 80 gsm. Layout: Identity Works. Production: Gylling Produktion AB.
Photos: Ulla-Carin Ekblom, Måns Berg, Christian Ekstrand and others. Print: Larsson Offsettryck AB
2
2
Holmen Annual Report 2021
Holmen Annual Report 2021
Holmen
grows
Houses
We manage the forest actively and sustain
ably, and use the raw material wisely and
far-sightedly. The wood is refined into wood
products for sustainable building, and we
turn whatever is left over into worldleading
paperboard and innovative paper products.
In addition, we use the water rushing down
the rivers and the wind blowing through the
treetops to produce renewable energy. For us,
succesful business and a sustainable future go
hand in hand. When we grow houses, we are
also growing change.
2021 in figures
Net sales
19 479 SEKm
Operating profit*
4 061 SEKm
Cash flow
3 375 SEKm
No. of employees
3 474
Total shareholder return Holmen B and OMX Stockholm
Index
700
600
500
400
300
200
100
0
12
13
14
15
16
17
18
19
20
21
Jan 22
Holmen B
OMX Stockholm 30 (OMXS30)
*Excl. items affecting comparability
Holmen in brief
Holmen Annual Report 2021
Holmen Annual Report 2021
3
3
CEO’s message
Dear sHareHolDers,
2021 was characterised by a rapid economic recovery with a shortage of input goods and logistics
resources, which led to increased prices across much of society. With our own forest holdings and
renewable energy assets, we were nevertheless able to advance our positions while at the same
time seeing our operating profit climb to a historically high level of SEK 3 731 million.
As we close the books on 2021, we can clearly see that
our business model − creating value based on our forest
assets − is a successful one. We have managed to keep up
production and seize on opportunities to increase prices,
which has generated superb results, helped in no small
part by sales of wood products. We can also report that
interest in owning forest remains high, as reflected in the
9 per cent increase in the value of our forest assets to
SEK 47 billion. In light of the solid earnings development
and our strong financial position, the proposal is to increase
the ordinary dividend to SEK 7.50 and to pay an extra
dividend of SEK 4.00.
The transition to a sustainable world
The transition to a sustainable world continues, with
politicians, businesses and consumers jointly pushing
towards sustainable use of the planet’s resources. The
greatest challenge lies in halting global warming, in which
context it is worth noting that energy production accounts
for three-quarters of carbon emissions. Although we are
seeing rapid advances in renewable energy, only a small
proportion of the world’s energy comes from sustainable
sources. Looking back over the past 50 years, the world’s
energy consumption has tripled, and this increase in
demand has almost exclusively been met using fossil fuels.
Moving forward, we have to be able to supply a growing
population with more energy, while at the same time
transitioning existing energy production to sustainable
sources. This means not only that we need to produce
more renewable electricity, but that we must also electrify
substantial elements of industrial production, heating
and transport.
Renewable electricity production
With a fossil-free energy system and opportunities to
increase renewable electricity generation, Sweden is well
placed to lead the development of next-generation, fossil-
free industrial processes. Recent initiatives concerning
everything from green steel to batteries are concrete
examples of companies beginning to turn words into
action. With our controllable hydro power, we can help
to provide the growing industries with green electricity
when needed. When Blåbergsliden Wind Farm becomes
fully operational in early 2022, we will be increasing our
provision of renewable energy by 30 per cent. We see good
potential to develop a significant wind power business.
Sustainable building
The real estate sector accounts for over a third of Europe’s
carbon emissions, something that the major construction
companies have begun to acknowledge as they set targets
to become fossil-free along the whole value chain. The
main challenge is that making cement manufacture
sustainable is both costly and difficult. Wood offers an
alternative that not only is fossil-free, but also stores
carbon dioxide in the buildings. This makes the market
prospects for wood very promising, not least if fossil
construction materials are made to carry their true cost
to the climate. Through the acquisitions and investments
of recent years, we have expanded our wood products
business while at the same time shifting ourselves forward
in the value chain, most recently with the acquisition of
Martinsons. We are now taking the next step in developing
Iggesund Sawmill by adding construction timber as a
complement to our strong joinery products portfolio,
while at the same time increasing capacity. With a strong
position in the wood market and well-invested sawmills,
we have created a platform for continued growth for many
years to come.
Fossil-free paper and paperboard
We grow forest with a view to building houses. When we
saw the wood, whatever is left over is used in our paper
and paperboard mills, where wood chips and shavings are
topped up with the trees that are too narrow to become
construction material. With a practically fossil-free energy
supply, we provide the market with climate friendly
products – a fact that our customers are increasingly
beginning to appreciate. With control over the wood
raw material and a sustainable energy supply, we are
continuing to develop our position by making the most of
the unique properties that fresh fibre provides.
Managed forest generates climate benefits
The world’s forests capture and store as much
carbon dioxide as there is in the atmosphere, and this
sequestration is increasing year on year. This increase is
seen exclusively in the forests that are actively managed.
We have long combined active forestry with preservation
of good biodiversity, and we are seeing this bear fruit
with a steadily increasing volume of standing timber
and larger harvests from healthy ecosystems. Regular
independent measurements show that the conditions for
biodiversity in Sweden and Finland are good, while the
majority of other countries both in and outside Europe
need to do much, much more. We are focused on gradually
increasing the carbon storage in our standing forest,
while at the same time stepping up production of wood
products, paperboard and paper as part of the transition
to a sustainable world. In 2021, our combined operations
contributed towards a climate benefit of 7 million tonnes
CO2e, equivalent to 15 per cent of emissions in Sweden.
We grow houses and then make renewable packaging,
magazines and books from what is left over, while also
harnessing the energy that blows through the treetops
and flows down the rivers. Backed by a strong financial
position, we are well equipped to benefit from the
opportunities that will open up as Europe converts to
a fossil-free society.
Stockholm, 18 February 2022
Henrik Sjölund
President and CEO
4
Holmen Annual Report 2021
CEO’s message
» We have created a
platform for continued
growth for many years
to come.«
CEO’s message
Holmen Annual Report 2021
5
Strategy and targets
growing a
sustainable
future
Our business concept is to own
and add value to the forest
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 customers and
shareholders, but also contributes to a better
climate and thriving rural communities.
↗ Paper
The Paper business will be developed by
offering resource-efficient alternatives
to traditional products.
6
Holmen Annual Report 2021
Strategy and targets
← Forest
Forest growth and future harvests
will increase through active and
sustainable forestry. A strong
position in the wood market
will enable the development of
Holmen’s production facilities.
↙ Renewable Energy
The Renewable Energy business
will grow by establishing wind
power on Holmen’s own land.
← Wood Products
The Wood Products business
will grow through products
and solutions for sustainable
construction.
← Paperboard
The Paperboard business will develop
on the basis of its position as a market
leader in the premium segment for
renewable consumer packaging.
Strategy and targets
Holmen Annual Report 2021
7
Strategy and targets
we aim to create value tHat
stanDs tHe test of time
wHile contributing to a
better climate
Forest
The forest is sustainably managed to
provide a good annual return and stable
value growth. Growth and harvests will
increase over time.
In 2021, harvest amounted to 2.8
million m3, which is in line with the current
harvesting plan. Forest property prices
continued to rise during the year, which
increased the value of the Group’s forest
assets by 9 per cent to SEK 47 billion.
Industry
The industrial operations are run with a
focus on long-term profitability. The target
is for a sustained return of over 10 per cent
on capital employed.
In 2021, the return for the industrial side
of the business reached 26 per cent, driven
by excellent profitability in Wood Products.
Renewable Energy
The production of renewable energy will
increase by complementing our existing
hydro power with wind power on our
own land.
The level of hydro and wind power
production was normal, amounting to
a little over 1.2 TWh. 2022 will see the
wind farm in Blåbergsliden become fully
operational, which is expected to boost the
Group’s annual production of renewable
energy by a little over 0.4 TWh.
Annual harvest, ’000 m3sub/year
Industry’s return on
capital employed, %
Production of hydro and
wind power, GWh
3 500
3 000
2 500
2 000
1 500
1 000
500
0
2002-
2006
2007-
2011
2012-
2016
2017-
2021
2022-
2026*
2027-
2031*
2032-
2036*
2037-
2041*
30
25
20
15
10
26
17
18
19
20
21
1 600
1 200
800
400
0
1 230
17
18
19
20
21
Harvest
Thinning
Storms & other events
*Forecast
8
Holmen Annual Report 2021
Strategy and targets
Climate benefit
We will increase our benefit to the climate
through higher growth in our forest and
higher sales of renewable products that
store carbon dioxide and replace fossil-
based alternatives, while also reducing the
fossil emissions along our value chain.
In 2021, Holmen’s operations helped
to generate a climate benefit of almost
7 million tonnes of CO2e, with positive
contributions from all the business areas.
For further information, see page 32.
Capital structure
Our financial position is to be strong in
order to secure room for manoeuvre when
making long-term commercial decisions.
Net financial debt will not exceed 25 per
cent of equity.
At year end, the financial position
remained strong, with a debt/equity ratio
of 9 per cent.
Dividend
Holmen will generate a good annual
dividend for shareholders. The level is
determined by the Group’s profitability,
investment plans and financial situation.
The dividend is supplemented with share
buy-backs where this is judged to create
long-term value for shareholders.
The Board proposes that the 2022 AGM
approve a dividend of SEK 7.50 per share
and an extra dividend of SEK 4.00 per share.
Climate benefit, million tonnes CO2e
Net debt as % of equity
Dividend per share, SEK
8
6
4
2
0
7
17
18
19
20
21
40
30
20
10
0
9
17
18
19
20
21
12
9
6
3
0
Proposal
4.00
Proposal
7.50
17
18
19
20
21
Ordinary dividend
Extra dividend
Strategy and targets
Holmen Annual Report 2021
9
Investment case
tHe value of owning forest
Wind and hydro power. Owning forest
land also provides opportunities for other
revenue streams, not least by developing
wind power. With our extensive forest
holdings, we have a unique opportunity to
develop areas that are favourable for wind
power. We continue to initiate projects on
our own land, and in the autumn Holmen’s
new Blåbergsliden Wind Farm began
generating electricity step by step. When
operating at full strength, the wind farm will
produce 0.4 TWh, boosting our production
of hydro and wind power to 1.6 TWh per
year. There are currently 159 wind turbines
in use or under construction on our land.
With several wind projects in various stages
of development, we have an opportunity
to continue expanding wind power within
Holmen.
Holmen’s energy production is dominated
by hydro power from our 21 fully or partly
owned power stations. Hydro power pro-
vides a reliable electricity supply and
delivers major social benefits in the tran-
sition to more renewable energy sources.
Other opportunities on our land.
Where parts of our land holdings are located
near centres of population, in southern and
central Sweden, and in tourist areas close
to the mountains, the potential exists to
develop the land for housing and holiday
accommodation. Extracting stone and
gravel from our own land for use in projects
such as road building is another possibility
for landowners such as Holmen.
The forest is a fantastic asset.
In the drive to become less depen
dent on fossil raw materials, forest
products have a key role to play
and demand for them will increase
over time.
Active forestry improves tree growth,
and with it the amount of renewable raw
material, but the potential is limited to the
areas that are available for forestry. The
fact that Holmen owns 1.3 million hectares
of land provides fantastic opportunities to
create value over time.
The growth in the forest is the result of
our active and sustainable forest manage-
ment, which begins with the seed – we
raise our own seedlings and reforest all
the areas that are harvested. Because the
annual growth is greater than the harvest,
the amount of wood in our forests is also
increasing year on year, which means that
we will gradually be able to harvest more in
the future. In 2021, Holmen’s total volume
of standing timber amounted to 125 million
m3 growing stock, solid over bark, which is
6 per cent higher than 10 years ago.
Revenue from our forest holdings
Owning forest naturally provides a chance to
earn revenue when the forest is harvested.
The best prices are achieved for the large
logs that are turned into construction
material. Holmen uses the narrower part of
the tree and wood from thinning, along with
residual wood chips from the sawmills,
to manufacture paperboard and paper
for packaging, books and other graphical
printing. In addition to logs and pulpwood,
treetops and branches have their own uses
and are sold as forest fuel for the production
of district heating and so on.
The value of the forest is confirmed
by current transactions
A large number of forest property transac-
tions are carried out every year. Holmen’s
forest assets are recognised at fair value
based on the prices paid for forest proper
ties in the areas where we have our forest.
As of 31 December 2021, the book value
stands at SEK 47 080 (43 202) million,
which averages out at SEK 45 100 per
hectare of productive forest land. The value
varies across the country, with forest pro-
perties in southern Sweden being valued
much higher per hectare as a result of
a greater volume of standing timber,
higher wood producing capacity, a shorter
harvesting cycle and greater demand for
forest land.
Planned harvest, ’000 m3sub/year
3 500
3 000
2 500
2 000
1 500
1 000
500
0
2002-
2006
2007-
2011
2012-
2016
2017-
2021
2022-
2026*
2027-
2031*
2032-
2036*
2037-
2041*
Thinning
Harvest
Storms & other events
*Forecast
Wood prices, SEK/m3sub
Price of forest properties, SEK/m3sub
600
500
400
300
200
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2004
2006
2008
2010
2012
2014
2016
2018
2020
800
600
400
200
0
2015
2016
2017
2018
2019
2020
2021
Real
Nominal
Southern Sweden
Central Sweden
Northern Sweden
Source: Annual collation of price statistics from various market players and
transaction data.
10
Holmen Annual Report 2021
Investment case
tHe climate transition
is Driving DemanD
One of society’s biggest challenges
is meeting the needs of a growing
population while at the same time
curbing climate change. If we
are to successfully transition to
a fossil-free society, we must
break our dependence on fossil
resources and make more use of
renewable materials from nature.
Growing demand for renewable
and fossil-free products
Demand for raw materials and products that
are renewable, recyclable and fossilfree
is on the rise, a trend being accelerated by
political decisions and increasing aware-
ness among consumers. Active forestry is
boosting the growth in our forests, but the
supply of forest raw materials is limited,
while at the same time global demand is
expected to increase, for both logs and
pulpwood.
Population growth and urbanisation,
coupled with surging ambitions for
sustainable construction, are driving the
wood products market. Demand for paper-
board and paper is being fuelled largely
by economic and population growth, as
well as changes in consumer behaviour
and increased digitalisation. The desire
to reduce climate impacts and avoid
plastic packaging is a strong driving force
promoting greater use of wood fibre-based
products.
Everything and everyone must
carry their climate cost
The European energy market is undergoing
a major transition. Roughly half of electricity
production in Europe is fossilfree, but
electricity only accounts for a quarter of
total energy consumption and almost all
other energy consumption is fossil-based.
To meet the climate targets, much of fossil-
based energy production will need to be
switched to fossil-free sources. As fossil
energy is phased out, renewable electricity
production will take on even greater
significance in the future. According to a
report by the Confederation of Swedish
Enterprise (reference page 99), demand for
electricity in Sweden alone is set to rise by
at least 60 per cent by the year 2045.
However, it will not be enough just to
increase the production of renewable
energy – all transport and industrial
processes will need to be electrified and
made more energy-efficient, as will the
construction and heating of buildings.
Achieving this transition will require major
investment and all products will have to
carry the true cost of their climate impact.
Buildings account for considerable emis-
sions of greenhouse gases from material
and energy use, during both their construc-
tion and their life cycle. Within the EU,
the construction and real estate sector is
responsible for 35 per cent of fossil carbon
dioxide emissions, and in Sweden buildings
account for 40 per cent of energy use.
Active measures in the areas of heating,
material choices and transport offer major
opportunities to cut the real estate sector’s
climate footprint. As the focus on climate
issues intensifies, it is becoming increasingly
clear that the forest and its products have a
vital role to play in a fossil-free future. This
is true not least of wood products, which
store carbon dioxide when they are in use,
while at the same time reducing demand
for products with a high carbon footprint,
such as concrete and steel.
The climate can’t wait
Holmen is a company that is helping
to improve the climate. The amount of
greenhouse gas in the atmosphere is lower
thanks to the work we do. Our growing
forests capture and store carbon dioxide,
our products replace fossil alternatives and
our production of hydro power and wind
power contributes to the transition towards
a renewable energy system in Europe.
Investment case
Holmen Annual Report 2021
11
Investment case
we are Helping tHe
worlD to transition
Volume of standing timber,
m3 growing stock, solid over bark
per hectare of productive forest land
We are living in a time of huge challenges for the future and there is an
urgent need for change in order to deal with the climate crisis. Our circular
business meets that need. With our operations already providing climate
benefits, we are looking to make even more of a contribution to the
transition. And it all starts in the forest.
Higher growth while
preserving biodiversity
Holmen has been managing forests since
the 17th century and over the years
has contributed to enormous industrial
advances. Historically, biodiversity has not
been a priority issue in Swedish forestry,
but the past 30 years have seen major
developments and we have learned a great
deal about how we can improve conditions
for biodiversity and at the same time
increase growth in the forest.
Holmen’s forest strategy focuses on
achieving high and profitable growth while
also ensuring that all naturally occurring
species can thrive in the Swedish forest
landscape. Of Holmen’s over a million
hectares of forestclad land, we use about
80 per cent for wood production.
The trees we plant today will grow for
around 80 years before they are harvested,
and an awful lot can happen in that time.
The forest could be hit by drought, storms
and pests. But a thriving ecosystem increases
the chances that the trees will survive and
reach maturity. Each year, we invest around
SEK 170 million in care for our forests and
constantly work to improve everything from
seedlings to nature conservation through
research, development and education
– all to ensure good growth and healthy
ecosystems for future generations.
The Biodiversity Intactness Index (BII)
shows that the conditions for biodiversity
in Sweden have improved since the 1970s
and are now rated as good.
12
Holmen Annual Report 2021
Investment case
120
90
60
30
0
119
1948
1965
1988
2000
2020
1955
1975
1993
2010
2021
Biodiversity Intactness Index
Sweden
100
95
90
85
95.25
1970
1980
1990
2000
2005
2010
2015
2020
Areas with a BII above 90 are considered to have
enough biodiversity to be a resilient and functioning
ecosystem. Source: Natural History Museum.
References page 99.
2010
2012
2013
2013
2014
2017
2020
2021
Braviken
Sawmill taken
into operation
Solid fuel boiler at Hallsta Paper Mill
replaced with fossilfree electricity
Opening of Varsvik Wind
Farm outside Hallstavik
Acquisition of Martinsons
and its two sawmills
New recovery boiler
at Iggesund Mill
New biofuel boiler
at Workington Mill
Acquisition of
Linghem Sawmill
Blåbergsliden Wind Farm
built outside Skellefteå
Increased
production and
processing of
wood products
Increased
production of
renewable energy
from wind power
Lower fossil
emissions
from our
production
Holmen’s manufacture of wood products
has become an increasingly important
part of our business. The construction
of Braviken Sawmill in 2010 and the
acquisition of Martinsons in 2020 have
prompted strong growth in our wood
products business. Demand for refined
wood products is growing and with rising
interest in wood construction we see
great opportunities to further develop
the business.
With a broader palette of refined
products, we hold a strong market position,
with increased sales to chains of builders’
merchants. Through Martinsons, we are
now also able to offer the planning and
construction of complete frames in CLT
and glulam for everything from sports halls
and schools to office blocks and apartment
buildings.
With five sawmills strategically located
near our forest holdings, we are maximising
the value of our forest and securing the raw
material supply to all of our industrial sites.
For Holmen, the establishment of large-
scale wind power provides a logical comple
ment to our controllable hydro power. It is
also a good way to derive added value from
our land, as higher energy production pro
vides a good revenue stream for Holmen.
Holmen opened Uppland’s first wind
farm, Varsvik, back in 2014, and now in
2021 Blåbergsliden Wind Farm has just
been completed outside Skellefteå. With
26 turbines, the wind farm will boost our
annual production of renewable energy
by 30 per cent, taking it up to 1.6 TWh.
In addition to Blåbergsliden, a permit
application for another wind farm in
Västerbotten has been submitted, and in
2021 we also applied for environmental
permits for wind power in Östergötland.
As a large landowner, Holmen is well
placed to help with the expansion of
wind power and in recent years we have
conducted surveys and wind analyses on
the Group’s land to identify favourable sites
for future wind power development.
We began planning for the transition
from fossil energy use at our industrial
sites in the early 2000s. Since then we
have switched to primarily using fossil-
free electricity and renewable energy from
biofuel. Combined with energy efficiencies,
emissions of fossil carbon dioxide from our
production facilities have thus been cut
significantly.
Since 2005, the use of fossil fuels in
our production has fallen by 85 per cent.
In contrast to many of our competitors on
the continent, much of our manufacturing
is practically fossilfree, and production at
Hallsta Paper Mill is entirely fossil-free.
Today the majority of our fossil
emissions are generated from purchases of
input products, along with transport to and
from Holmen’s industrial sites. Therefore,
we are now focusing on cutting emissions
in these areas.
Production of wood products,
’000 m3
Use of fossil fuels (base year 2005), %
1 600
1 200
800
400
0
1 465
2016
2017
2018
2019
2020
2021
30
0
-30
-60
-90
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
-85
Investment case
Holmen Annual Report 2021
13
Net sales and operating margin
Operating profit/loss and return
SEKm
20 000
16 000
12 000
8 000
4 000
0
SEKm
19 479
25
5 000
20
4 000
21
15
3 000
10
2 000
5
0
1 000
0
16
17
18
19
20
21
4 061
9
7
16
17
18
19
20
21
Net sales
Operating margin*
*Excl. items affecting comparability
Operating profit*
Return on capital employed*
Return on equity**
*Excl. items affecting comparability
**Excl. forest revaluation 2019
Cash flow, SEKm
Net debt as % of equity
%
15
12
9
6
3
0
Operating profit*
Business area, %
8
35
39
16
2
Forest
Paperboard
Paper
Wood Products
Renewable Energy
Total: 4 061 SEKm
1 495 SEKm
673 SEKm
70 SEKm
1 668 SEKm
347 SEKm
*Excl. items affecting profitability and Group-
wide
Capital employed*
Business area, %
4 000
3 000
2 000
1 000
0
3 375
1 332
1 741
16
17
18
19
20
21
20
15
10
5
0
Investments
Dividend
Acquisitions
Cash flow before investments and
changes in working capital
8
5
3
10
9
16
17
18
19
20
21
74
Forest
Paperboard
Paper
Wood Products
Renewable Energy
Total: 51 093 SEKm
37 300 SEKm
5 169 SEKm
1 637 SEKm
2 278 SEKm
4 069 SEKm
*Excl. Group-wide
14
Holmen Annual Report 2021
The year in brief
The year in brief
Historic results based on
our own forest
2021 turned out to be another
year defined by the coronavirus
pandemic. With a business based
on our own forest holdings and a
substantial profit of SEK 3 731 mill
ion, it is evident that we success
fully maintained production and
benefited from the price rises that
followed when demand rose.
The continued strength of the wood
products market drove demand for logs,
leading to high prices, while demand for
pulpwood remained normal with stable
prices. Profit for the Forest business area
amounted to SEK 1 495 million, with sales
of forest assets in the UK contributing to the
strong result. The value of owning Swedish
forest also became increasingly clear,
as the market price for forest property
continued to rise over the year. Based
on transaction prices in the areas where
the Group owns forest land, the value of
Holmen’s forest assets climbed 9 per cent
to SEK 47 billion.
As restrictions were lifted and the
world opened up, demand for consumer
packaging rose, causing an uplift in prices
at the end of the year. Paperboard’s
revenue was adversely impacted by a
major maintenance shutdown at both our
mills, leading to a profit of SEK 673 million.
Damage to the turbine in the biofuel boiler
at Workington Mill increased energy
costs by SEK 330 million, but did not
affect paperboard production. The higher
costs were posted as an item affecting
comparability. A lack of recycled fibre
and record-high electricity prices placed
constraints on European production of
printing paper which, coupled with capacity
reductions, created a shortage of paper in
the market and prices rose towards the end
of the year. The high electricity prices were
partially offset by substantial increases
in deliveries and a better product mix.
Paper reported a profit of SEK 70 million.
Wood Products experienced steep price
rises in the first half of the year, but as
customers ran down stocks in the autumn,
prices fell back slightly. On the back of
these high sales prices, and the greater
volumes resulting from the acquisition of
Martinsons, Wood Products profit totalled
SEK 1 668 million.
The economic recovery drove up
demand for coal and natural gas, while
tightened regulations on fossil carbon
emissions increased the cost of emission
allowances. Together, these factors pushed
electricity prices on the continent up to
record levels. The energy shortage in
Europe also affected Swedish electricity
prices, while at the same time the price
differences within Sweden were unusually
large due to limitations in transmission
capacity. Although production fell from
the high levels of 2020, Renewable Energy
reported a higher profit of SEK 347 million
due to a rise in the average electricity price.
Holmen’s financial position remains
strong, even after distribution of the
dividend and investments. During the
year, the Group’s net financial debt fell
by SEK 80 million to SEK 4 101 million,
equating to 9 per cent of equity.
Key figures
Net sales, SEKm
Operating profit/loss, SEKm
Operating profit/loss excl. items affecting comparability, SEKm
Profit for the year, SEKm
Diluted earnings per share, SEK
Ordinary dividend per share, SEK
Extra dividend per share, SEK
Return on capital employed, %
Cash flow before investments and changes in working capital, SEKm
Cash flow from investments, SEKm**
Equity, SEKm
Net financial debt, SEKm
Net debt as % of equity
Average no. of employees (FTE)
2021
19 479
3 731
4 061
3 004
18.5
7.5*
4.0*
8.5
3 375
1 332
46 992
4 101
9
3 474
2020
16 327
2 479
2 479
1 979
12.2
7.25
3.5
5.6
2 411
1 924
42 516
4 181
10
2 974
*Board proposal. **Net including company acquisitions but excluding changes in non-current financial receivables.
Outlook
The continuing economic recovery is
expected to drive demand for pulpwood.
Demand for logs is expected to remain at
a high level, given the ongoing strength
of demand and an unstable supply of raw
material from Central Europe due to the
long-standing effects of storms and insect
attacks.
The paperboard market has seen
positive development during the pande-
mic and is expected to continue growing.
European consumption of fresh fibre
board rose by 6 per cent over the year, and
Holmen continues to focus its business
development on the customer segments
with the highest quality requirements. The
shortage of input goods that affected the
market balance for paper in 2021 appears
to be continuing into 2022. With local wood
raw material and fossil-free electricity,
our competitiveness is sound and we
are continuing to develop our business
in segments where the benefits of fresh
fibre are most evident. The established
commitment to wood products continues,
with investments in increased capacity
and processing aimed at developing the
wood products business and generating
added value from our own forest holdings.
The market for wood products also looks
favourable, particularly if other construc-
tion materials are required to carry their
true cost to the climate.
Greater electrification of both manu
facturing and transport is going to push up
demand for more renewable electricity.
Blåbergsliden Wind Farm will become fully
operational in the first quarter of 2022,
which will increase our annual wind and
hydro power production by 30 per cent. The
levels in Holmen’s water storage reservoirs
were normal at the end of the year.
With our strong financial position,
Holmen is well equipped to exploit any
opportunities as Europe converts to a fossil-
free society. Our business already provides
climate benefits and the best we can do for
the climate is to help more customers to
replace fossil sources with renewables.
The year in brief
Holmen Annual Report 2021
15
Forest
sustainable forestry
Holmen manages the forest actively
and sustainably. As well as being
a stable source of revenue for
Holmen, the forest brings major
climate benefits by capturing and
storing carbon dioxide and reducing
the need for fossil raw materials.
The strategy is to increase the
revenue from and future value of
the forest holdings through active
and sustainable forestry.
Holmen’s forests cover 1.3 million hectares,
of which a little over a million hectares
comprise productive forest land. As one
of Sweden’s biggest landowners, we are
largely able to supply Holmen’s Swedish
produc tion units with renewable raw ma-
terial from our own sources. Economies of
scale and efficient logistics give us a strong
position in the wood market, which boosts
com petitiveness and enables the develop-
ment of Holmen’s production facilities.
Actively managed forest benefits
the climate
In our forests, we grow houses. This means
that we manage the forest for the benefit
of the wood. The trees absorb carbon
dioxide as they grow, while replacing fossil
alternatives doubles the climate effect of
the renewable raw material. In addition,
the larger the area managed, the more
carbon dioxide is captured. Forest that is
not managed does not deliver anywhere
near the same longterm benefits for the
climate, not least due to the absence of any
substitution of products that are harmful
for the climate. Our active forestry also
means that the trees grow better. When we
increase the harvest, we are binding more
carbon dioxide in wood products in the long
term and are able to offer more climate-
smart products in paperboard and paper.
Forestry constantly developing
The volume of standing timber in Holmen’s
forests is built up over 70–90 years and is
then harvested when it reaches maturity,
with a new growth cycle beginning after
harvest. The most important silviculture
measures come in the years immediately
after harvest, when the soil is prepared
and the land is reforested using seedlings
and seeds that are specifically tailored
to the location. The forest is cleaned and
thinned in order to select trees with the
best potential for continuing their growth.
Around 10–30 years before the forest is
harvested, it can be fertilised to further
boost growth. Holmen invests around
SEK 170 million a year in future growth
through silviculture and fertilisation.
Holmen’s forestry is certified according
to PEFC™ and FSC® and all the wood
is traceable.
45 million seedlings. Holmen’s two nur-
series – one in Gideå and one in Friggesund
– produce a little over 45 million spruce and
pine seedlings each year, the majority of
which are planted on our own land. Selected
seeds and organic fertiliser produce healthy
and vigorous seedlings that are given a
special coating to protect against insect
attack. Using bio-based heating makes
the production of seedlings practically
fossil-free. Holmen is also involved in the
development of an automated system for
growing forest seedlings. This technology
will allow us to produce seedlings that grow
better, offer higher wood quality and have
greater disease resistance.
Biodiversity
We combine active forestry focused on
high growth with protecting the diversity
of natural habitats and species in our
forests. We apply extensive environmental
conservation measures during harvesting.
For example, we leave old and dead trees in
the forest landscape, as well as trees along
watercourses. We also conduct targeted
initiatives to increase the availability
of habitats that are in short supply, not
least by restoring wetlands or performing
controlled burning. In addition, we have
identified almost 8 800 sites that we do
not harvest. In these areas that have
been voluntarily set aside, we conduct
inventories of the natural assets and,
where necessary, take action to protect
and boost habitat diversity. The aim is to
ensure that all naturally occurring species
are able to thrive in the Swedish forest
landscape.
Sustainable forestry is about balancing
several perspectives – economic, environ-
mental and social – and succeeding in
doing so over time. It is in our interest and
equally in the interest of society for us to
manage the forest actively and sustainably
and for us to use the raw material in a wise
and far-sighted way.
16
Holmen Annual Report 2021
Forest
Learning more about Swedish
forests
Forestry is essential to thriving rural
communities. It creates jobs in places
where there are few employers and
gives people an opportunity to live, work
and enjoy quality of life outside the city
regions. Forestry also makes the forests
easily accessible. Our forest roads take
people out into the countryside, while
thinning means the forest does not become
overgrown. With its contribution to both
the climate and the Swedish economy,
management of the forest is of great
national, regional and local significance.
Holmen and other industry players have
therefore joined forces to make politicians,
authorities and the general public aware
of how vital the forest is for the climate,
and the importance of forestry for an
emerging bioeconomy.
Holmen’s Knowledge Forests. To raise
awareness of our forestry and forest
research, we have established Holmen’s
Knowledge Forests. The forests are
selected for their specific biological
conditions and is used to explore, gather
and pass on knowledge. It is also our way
of showing that sustainable forestry can
promote growth while at the same time
increasing biodiversity in the forest. This
year saw the opening of Likstammen
Knowledge Forest in Södermanland, where
we operate sustainable management
of lakeside holdings, combining active
forestry with pure nature conservation
measures such as restoring wetlands.
Strong position in the wood market
The growing interest in building in wood
has driven up demand for logs in recent
years. Calls for different types of renewable
packaging material and large-scale invest-
ments in pulp mills have also helped to
drive up demand for pulpwood.
Over the year, demand for logs remained
high and prices increased, while the pulp-
wood market was more balanced. Holmen
holds a strong position in the wood market
and, with our growing output of wood prod-
ucts, we can process an ever-increasing
proportion of our forest at our own
industrial sites.
» It is in our interest and equally
in the interest of society for us
to manage the forest actively
and sustainably and for us to
use the raw material in a wise
and far-sighted way.«
Key figures
Operating profit
Comment on results
2021
2020
Net sales, SEKm
6 509
5 883
Of which from own forest,
1 376
1 325
SEKm
Operating profit/loss, SEKm
1 495
1 367
Investments, SEKm
249
207
Book value, forest assets,
SEKm
Average no. of employees
(FTE)
Volume from own forest,
’000 m3sub
47 080 43 202
431
384
2 833
2 841
Volume of standing timber,
m3 growing stock, solid over bark
per hectare of productive forest land
120
90
60
30
0
1948
1965
1988
2000
2020
1955
1975
1993
2010
2021
Forest inventory
SEKm
1 600
1 200
800
400
1 495
Forest posted a profit of SEK 1 495 million,
which was positively impacted by the sale
of a large forest property in the UK. Demand
for logs was good, while the pulpwood
market was more balanced, with stable
prices. Harvesting and thinning of Holmen’s
own forest stood at a normal level, in line
with the harvesting plan. Forest property
prices continued to rise during the year,
which increased the value of the Group’s
forest assets by 9 per cent to SEK 47 billion.
0
16
18
21
Operating profit/loss excluding items
17
19
20
affecting comparability
Holmen’s forests 2021
Total land acreage
Total forest land acreage*
– of which nature conservation areas
Productive forest land**
Total volume of standing timber
on productive forest land
1 304 000 ha
1 159 000 ha
201 000 ha
1 044 000 ha
125 million m3 growing stock, solid over bark
* Calculated based on Holmen’s stand catalogue and data from the National Forest Inventory in line with the interna-
tional definition of forest land: Land area > 0.5 hectares with a tree canopy cover of more than 10 per cent for trees
capable of reaching a height of at least 5 metres at maturity.
** Forest land that can produce 1 m3 growing stock, solid over bark per hectare and year (on average during the growth
period of the forest stand) according to Holmen’s stand catalogue.
Forest
Holmen Annual Report 2021
17
» Our customers’ choices make
a difference. And the best we
can do for the climate is to help
more customers to replace
fossil sources with renewables.«
Key figures
Operating profit/loss and return
Comment on results
2021
2020
Net sales, SEKm
6 261
6 187
Operating profit/loss
excl. items affecting
comparability, SEKm
673
812
SEKm
1 000
750
Investments, SEKm
399
275
500
Capital employed, SEKm
5 169
5 276
Average no. of employees
(FTE)
1 263
1 228
250
Deliveries, ’000 tonnes
544
544
0
%
20
673
15
13
16
17
18
19
20
21
10
5
0
Demand for paperboard for consumer
packaging gradually increased over the
year, causing prices to rise. However, major
maintenance shutdowns at both mills had
a negative impact on profits, which totalled
SEK 673 million for Paperboard. Damage
to the turbine at Workington Mill increased
energy costs, but did not affect paperboard
production. The higher costs were posted
as an item affecting comparability.
Operating profit/loss excluding items
affecting comparability
Return on capital employed, excluding
items affecting comparability
European demand for SBB and FBB
Price trend FBB
Mtonnes
4
3
2
1
0
12
13
14
15
16
17
18
19
20
21
Index
120
100
80
60
40
20
0
12
13
14
15
16
17
18
19
20
21
18
Holmen Annual Report 2021
Paperboard
Paperboard
Premium PaPerboard for
conscious brands
Holmen Iggesund is a market
leader in the production of high
quality paperboard. The strategy
is to grow globally with two of
the market’s strongest brands by
combining high quality, custom
products and firstclass service.
Holmen develops premium paperboard
for consumer packaging solutions in
sectors such as cosmetics, electronics,
pharmaceuticals, food and tobacco. The
paperboard is marketed under two brands:
Invercote and Incada. The products
are world leaders due to their quality,
durability and excellent design properties.
Our facilities for paperboard production
and processing are located in Iggesund and
Strömsbruk in Sweden and in Workington
in the UK.
Our paperboard is manufactured from a
renewable, recyclable and biodegradable
material, which allows us to work with our
customers to develop better packaging
solutions that are more fit for purpose –
solutions that are sustainable and promote
more circular packaging systems.
Fresh fibre delivers unique
properties
Both Invercote and Incada are manu-
factured entirely from fresh fibre, which
brings multiple product benefits. Higher
strength, better brightness and a neutral
effect on smell and taste in contact with
food are just a few of the properties
that add clear value to the end product.
Achieving all this relies on the combination
of fresh fibre and a multitiered structure,
with layers of different fibre types forming
the basis for the paperboard’s outstanding
performance.
Close customer collaboration
on development
With its high and consistent quality, the
paperboard ensures stable results in the
customer’s production process. Products
are constantly being developed to meet
the growing demand for sustainable
packaging solutions. The customers’ need
for support and fast deliveries are priority
areas that cover everything from advice
and product samples to service centres
with local sheeting units and warehousing.
Via support teams that maintain close
contact with the market and have a deep
understanding of the customer’s needs
and wishes, we offer expert advice before,
during and after the customer’s production
process.
The service offering includes environ-
mental documentation and access to
analysis facilities at the company’s own
accredited laboratory for sensory and
chemical analysis, known as the taint and
odour lab, at Iggesund Mill. Coupled with
the finishing options at the lamination unit
in Strömsbruk, this means that we can offer
custom solutions that meet the toughest
requirements.
Smart and sustainable production
Both of Holmen’s paperboard mills hold
chainofcustody certification and all the
wood raw material comes from sustainably
managed forests. Our facilities are largely
selfsufficient in renewable thermal and
electrical energy. Iggesund Mill is integrated
with Iggesund Sawmill, ensuring that every
part of the tree is put to use on site in a
circular production process. Wood chips
from the sawmill are used as raw material
for the paperboard production, while bark
and wood shavings are used as biofuel to
produce energy and district heating. The
circle is closed when the surplus heat from
the mill is used for drying processes at
the sawmill.
Within the past two years, Iggesund Mill
and Workington Mill have both received
a Platinum rating from EcoVadis for their
successful sustainability work. In 2021,
Iggesund Mill was also ranked number one
in its class by the international analysis
firm, cementing the mill’s worldbeating
status on sustainability.
A renewable alternative to plastic
Two strong trends in the packaging
market are the drive to reduce impacts
on the climate and the drive to avoid
plastic packaging. Replacing fossil plastic
materials with paperboard cuts our
customers’ carbon footprint, while also
reducing the amount of plastic that can end
up in the natural environment. Products
made from fresh fibre can also be recycled,
which is essential for a functioning recycled
fibre industry.
New product for food packaging.
Inverform, a paperboard product specifi
cally developed to replace plastic and
aluminium food packaging, has been
well received by the market. Inverform
has been designed for press-moulded
and folded trays for packaging ready
meals. Inverform-based packaging has
a substantially lower carbon footprint
than regular plastic trays and can also
be recycled in the existing packaging
collection system. In addition, 2021 saw
the launch of a degradable bioplastic that
can be used as a barrier against liquids and
fats. The new Bio E coating, comprising
75 per cent renewable raw material, is a
vital step towards entirely fossil-free food
packaging. Our customers’ choices make
a difference. And the best we can do for
the climate is to help more customers to
replace fossil sources with renewables.
These innovations are prime examples of
how we continue to develop purposeful
packaging solutions in collaboration with
our customers and partners.
Growing packaging market
Demand for packaging is rising in line
with factors such as population growth,
urbanisation, an expanding middle class
and more single-person households.
Demand in the various product segments
varies depending on the market, but
there is a general increase in demand
for renewable packaging materials.
This trend is being driven by regulations
against single-use plastics and growing
environmental awareness among
consumers.
Demand up in the wake of the pandemic.
The resumption of operations after the
pandemic, with the restoration of inven-
tories and disruption of supply chains, has
created a shortage of paperboard for con-
sumer packaging. Demand for paperboard
was good over the year, particularly in food,
electronics and pharmaceuticals.
Paperboard
Holmen Annual Report 2021
19
Paper
innovative PaPer Products
from fresH fibre
Holmen develops fresh fibre
based papers that are perfect
for books, magazines and
printed advertising. Our papers
are lightweight compared to
traditional alternatives, making
them resourceefficient without
compromising on quality or the
overall impression. The focus
lies on delivering and constantly
developing products that are
competitive over time.
Holmen is a market leader in the develop-
ment of new paper products based entirely
on fresh fibre. In contrast to recycled fibre
products, fresh fibre produces a naturally
high brightness for an improved experience
of text and images. Holmen’s paper prod-
ucts have high bulk, making them thick yet
light, which means that the customer gets
more paper with the same feel at no extra
cost. A lighter paper also enables lower
distribution costs.
With renewable raw material, fossil-free
electricity and resourceefficient produc
tion, we are able to offer products with a
low climate footprint. Customer interest
in the low climate impact of our products
continues to grow, in a trend that matches
our strategy of helping our customers to
conduct more sustainable business.
Paper with the power to
communicate
Our customers are largely publishers, print-
ing firms and retailers looking for resource
and costefficient papers with a focus on
bulk, brightness and overall impression.
We take a long-term approach in working to
meet customer demand and create profit-
able products in three graphical segments:
books, magazines and printed advertising.
Book paper. Holmen’s book paper
is the leading product for paperback
books in Europe. Our carbon-neutral
paper with high bulk helps customers to
achieve efficiencies in both production
and distribution. Publishers appreciate
Holmen’s paper because it offers product
properties – in the form of a bright, smooth
surface – that enhance the reading
experience.
Graphical paper. Holmen offers a wide
range of papers for magazines and printed
advertising. The combination of high bulk,
whiteness and brightness makes our maga-
zine papers competitive alternatives, with a
focus on the overall impression.
Direct mail is still considered an impor-
tant communications channel for driving
customers to both physical stores and
digital commerce. Holmen’s lightweight
paper offers customers the potential to
increase the format or the number of pages
or copies without adding to the cost, or
simply to bank the pure savings on both
paper and distribution.
Paper products of the future
Holmen has been making paper for more
than 100 years and has unparalleled
expertise. We are convinced that paper
has an important role to play in society,
today and tomorrow. With fresh fibre as the
foundation, we are continuing to develop
our position in a changing market, in both
existing and new segments. Investments
have boosted capacity in selected product
areas and our development of new paper
products involves close collaboration with
customers and partners.
Packaging paper. The launch of paper
products for flexible packaging in the
form of bags and wrapping paper, as
well as base paper for the production of
corrugated board, marks our next step
in developing the paper products of the
future. Broadening our range of products
for sustainable packaging solutions
boosts our competitiveness, offering
customers opportunities to reduce their
climate footprint and replace fossil-based
packaging.
Production in circular ecocycles
Holmen’s paper is produced at two Swedish
mills, Braviken and Hallsta. Strategic
logistical locations ensure short transport
distances for the wood and proximity to
ports with good capacity. The raw material
for our paper comprises residual products
from nearby forests and sawmills, which
are employed in a circular ecocycle where
nothing goes to waste. Environmental and
chainofcustody certification enables
20
Holmen Annual Report 2021
Paper
us to ensure that the raw material for our
products always comes from sustainably
managed forests.
Uniquely, production at Hallsta Paper
Mill is entirely fossil-free. The mill’s energy
solutions include recovering heat from
the wastewater and the paper machines,
selling the bark to heating plants and
composting residual products to create
topsoil.
Braviken Paper Mill and Braviken Sawmill
make an energyefficient unit. The paper
mill receives raw material in the form of
wood chips from the sawmill, which in turn
is supplied with energy and heat from the
paper mill. Surplus bark and wood shavings
are sold for the production of renewable
energy.
Over the year, both mills have received
a Platinum rating from EcoVadis. This puts
them in the top percentage of the 75 000
companies around the world that have
been assessed on their environmental,
ethical and social performance.
Recycled paper grows in the forest.
Paper made from fresh fibre is essential
for the European paper recycling system.
Forest resources are limited in the rest of
Europe and paper manufacture is based
on recycled paper to a considerably
higher extent. However, paper cannot be
recycled again and again forever. After a
certain number of times, the wood fibre is
exhausted. The ecocycle therefore needs
a constant injection of fresh fibre.
The pandemic’s effects on a
challenging market
The coronavirus pandemic has had a major
impact on both supply and demand with
regard to graphical paper. Although the
pandemic has accelerated the underlying
structural downturn, capacity reductions
have stabilised the market. Demand
varies between segments, but overall our
paper products have demonstrated good
competitiveness, not least due to resource-
efficient production using local wood raw
material and fossil-free electricity.
» With fresh fibre as the
foundation, we are continuing
to develop our position in
a changing market, in both
existing and new segments.«
Key figures
Operating profit/loss and return
Comment on results
2021
2020
Net sales, SEKm
5 441
4 879
Operating profit/loss, SEKm
Investments, SEKm
70
129
73
280
Capital employed, SEKm
1 637
1 969
Average no. of employees
(FTE)
854
832
Deliveries, ’000 tonnes
1 029
883
SEKm
600
500
400
300
200
100
0
4
70
21
16
17
18
19
20
A lack of recycled fibre and recordhigh
energy prices placed constraints on
European production of printing paper
over the year. Coupled with capacity
reductions, this created a shortage in the
market, causing prices to rise towards the
end of the year. Paper posted a profit of
SEK 70 million, with substantial increases
in deliveries and a better product mix
partially offsetting the high electricity prices.
%
30
25
20
15
10
5
0
Operating profit/loss excluding items
affecting comparability
Return on capital employed, excluding
items affecting comparability
European demand for paper
Price trend
Ktonnes
20 000
15 000
10 000
5 000
0
12
13
14
15
16
17
18
19
20
21
Index
700
600
500
400
300
12
13
14
15
16
17
18
19
20
21
Uncoated magazine and book
Newsprint
Coated magazine
Uncoated magazine
Newsprint
Coated magazine
Paper
Holmen Annual Report 2021
21
» Drawing energy from the sun
and water from the ground,
trees absorb carbon dioxide
from the air, and this then
remains stored in the wood
products we manufacture.«
Key figures
Operating profit/loss and return
Comment on results
2021
2020
Net sales, SEKm
4 872
2 222
Operating profit/loss, SEKm 1 668
Investments, SEKm
242
185
107
Capital employed, SEKm
2 278
1 846
Average no. of employees
(FTE)
783
387
Deliveries, ’000 m3
1 373
1 052
SEKm
2 000
1 600
1 200
800
400
0
1 668
82
16
17
18
19
20
21
The market for wood products has
developed positively during the pandemic.
After steep price rises early in the year, the
price of wood products slipped slightly in
the autumn as customers ran down their
stocks. The acquisition of Martinsons
and the expansion of Braviken Sawmill
enabled volumes to increase, helping Wood
Products to post a historically high profit of
SEK 1 668 million.
%
100
80
60
40
20
0
Operating profit
Return on capital employed
Consumption of wood products
Price trend
Million m3
400
300
200
100
0
12
13
14
15
16
17
18
19
20
21
Index
700
600
500
400
300
200
100
0
16
17
18
19
20
21
Europe
North America
China
Other Asia
MENA
Export price Sweden
Price USA
22
Holmen Annual Report 2021
Wood Products
Wood Products
building tHe future in wood
Holmen produces sawn and
refined wood products for joinery,
construction and builders’
merchants. A project business
for full structural frames in CLT
provides a complete offering for
climatesmart, largescale wood
construction. The business is being
developed by increasing the value
added and making better use of the
wood raw material in combination
with largescale production.
Wood is a fantastic material. It is strong,
versatile, light and the only construction
material that is renewable.
Holmen’s sawmills play a key role in our
circular business. This is where the wood
is split and the processing of the forest
we have harvested begins. Developing
the wood products business is a natural
extension of our forestry work and a key
dimension of our strategy of owning and
adding value to the forest.
Sustainable building
Our wood products become houses and
other buildings. They are used for façades,
roof trusses, floors, walls, doors and win-
dow frames, as well as for furniture and
decking. Products as simple as planks and
boards create great value, not least for the
climate. Drawing energy from the sun and
water from the ground, trees absorb carbon
dioxide from the air, and this then remains
stored in the wood products we manufac-
ture. Building in wood is therefore signifi-
cantly better for the climate than building in
concrete and steel, since the manufacture
of these materials requires large amounts
of energy and generates considerable
emissions of fossil carbon dioxide. In addi
tion, the whole chain from manufacture to
transport is much more energyefficient
and cost-effective, since wood weighs less
than concrete and steel. We thus create
benefit for the climate on multiple fronts.
Adding value and increasing
production
Holmen’s high-tech sawmills enable us
to offer a wide range of dimensions and
grades. Thanks to advanced technology,
we can maximise the output from every
log. Proximity to the raw material com-
bined with efficient wood purchasing is a
key factor for profitability, while competi
tiveness is underpinned by the fact that
parts of production are co-located with the
Group’s paperboard and paper mills.
Demand for refined wood products,
especially CLT and glulam beams, is
grow ing and with rising interest in wood
construc tion we see great opportunities to
further develop the business. We currently
offer everything from joinery timber and
refined products for builders’ merchants
to advanced construction components
and glulam. The acquisition of Martinsons’
two sawmills in northern Sweden in 2020
advanced Holmen’s position in wood con-
struction and now enables us to process
the majority of the raw material from our
forests in-house. Through Martinsons, we
are also able to offer the planning and con-
struction of complete wooden frames for
everything from sports halls and schools to
office blocks and apartment buildings.
Investments to boost capacity. Since
becoming operational in 2011, Braviken
Sawmill has undergone several rounds
of technical upgrades to become
Scandinavia’s largest and most modern
sawmill. Following the expansion of
Braviken and the acquisition of Martinsons,
the focus now turns to Iggesund Sawmill
as the next step in strengthening our
market position. An investment in timber
sorting and a new planing mill will increase
production at Iggesund Sawmill by 20 per
cent, as well as adding construction timber
on top of its joinery products range.
A new environmental permit for a capa-
city increase at Kroksjön Sawmill, plus a
new log feed and modernisation of the
glulam factory at Bygdsiljum Sawmill,
will also create opportunities to expand
production in northern Sweden.
Energyefficient production units. Two
of the Group’s sawmills, Iggesund and
Braviken, form energyefficient units with
their neighbouring paperboard and paper
mills. This means that every aspect of the
wood raw material is made use of in a cycle
in which chips from the sawmills act as raw
material in pulp production and the final
residual products are used as biofuel to
produce energy and district heating. Steam
from the mills is also used in the drying
processes at the sawmills.
Sustainable raw material supply.
Holmen’s sawmills are located near
our forest holdings from north to south,
bringing logistical benefits and giving
access to a transport network that reaches
around the globe by rail, road and, not
least, sea. Holmen’s sawmills have chain-
ofcustody certification, which means that
the wood can be traced back to its origin
in sustainably managed forests. The wood
raw material is sourced from Holmen’s
own forest holdings and from other forest
owners, ensuring an efficient logistics chain
from forest to sawmill. With a total of five
sawmills, strategically located near our
forest holdings in various parts of Sweden,
we have good control over our raw material.
Strong growth in global market
The market for wood products is global
and huge streams of goods are shipped
between continents. Worldwide consump-
tion of wood products has leapt up 30 per
cent in the past decade, propelled largely
by increased consumption in China and in
the US market.
Sustainable building driving the trend.
The real estate sector accounts for a third
of carbon emissions in Europe and the con-
struction industry is working hard to reduce
its carbon footprint. Within the ongoing
green transition, wood as a construction
material has a great deal in its favour, since
wooden buildings continue to store carbon
dioxide within the structures, instead of
generating emissions. As this trend gathers
momentum, it is expected to push up
demand for wood products, particularly if
concrete and steel have to carry their true
cost to the climate. There is great potential
for growth, mainly in high-rise buildings,
and the proportion of housing built in
wood is expected to rise as the capacity for
industrial building in wood is expanded.
Steep price rises during the pandemic.
A strong housing market in the USA and a
rise in home renovation projects in many
countries due to the pandemic, combined
with production curtailments in Canada
and Russia, led to steep price rises for
wood products in the first half of 2021.
Production bottlenecks suppressed activity
in the construction market during the
autumn, causing a downturn in prices.
Wood Products
Holmen Annual Report 2021
23
Renewable Energy
green energy from our land
or changes in other electricity production
by reducing or increasing the flow of water
through the turbines. The climate impact of
the operation is also marginal, with minimal
emissions.
Another benefit of hydro power is
service life. A hydro power station can
deliver energy for a very long time. The
investment required is relatively small, and
the operating and maintenance costs are
low since the plants are almost entirely
automated. Overall, hydro power brings
major benefits to society as part of the
move towards a fossil-free electricity
system.
Recordhigh electricity prices
over the year
The market for electricity in the Nordic
region has worked well historically, with
harmonised pricing that usually follows the
marginal cost of coal-based power, since
the market is tied in with the rest of Europe.
Over the year, the price of coal and natural
gas has risen globally due to the recovery
after the pandemic. Rules on fossil carbon
emissions have also been tightened in
Europe, leading to higher costs for emission
allowances. Together, these factors pushed
electricity prices on the continent up to
record levels.
The energy shortage in Europe also
affected Swedish electricity prices, while
at the same time the price differences
within Sweden were unusually large due
to limitations in transmission capacity
between northern and southern parts
of the country. In northern Sweden,
however, where Holmen has most of its
energy production, the price of electricity
decreased slightly due to high hydro power
production and limitations in transmission
capacity.
Holmen’s production of renewable
hydro and wind power contributes
towards a sustainable energy
supply in Sweden and towards
Europe’s transition to fossilfree
energy sources. We are now
taking the next step as a green
energy producer by investing in
the expansion of our wind power
capacity.
Holmen produces renewable energy
from water and wind. Hydro power is an
important source of energy for society as it
can be regulated and has an almost infinite
lifetime and minimal climate impact. At
the same time, we are investing in building
more wind power. This will help to increase
the amount of renewable electricity on
the market, which is a cornerstone of the
transition to a sustainable society.
Europe switching to renewables
The European energy market is undergoing
a major transition due to the issue of
climate change. In late 2020, the European
Parliament decided to raise its climate
ambitions, whereby carbon emissions in
the EU are to fall by at least 55 per cent by
2030 (base year 1990) compared with the
previous target of a 40 per cent cut.
Roughly half of electricity production in
Europe is fossil-free. However, electricity
only accounts for a quarter of total energy
consumption and almost all other energy
consumption is fossil-based. To meet
the climate targets, much of fossil-based
energy production will need to be switched
to fossil-free sources. Together with
increas ing electrification of both transport
and industry, it is clear that electricity con-
sumption is set to increase, creating addi-
tional demand for more renewable energy.
Transitioning the energy system to
more weather-dependent energy sources
such as solar and wind power will also
bring challenges, since the power supply
has to be maintained every minute of
every day, all year round. An expansion of
transmission capacity both between and
within countries is therefore necessary.
Wind power creates opportunities
Wind power is the fastest growing energy
type in the EU and the third largest means
of producing electricity in Sweden.
Land-based wind power is now a mature
technology and electricity generation costs
are among the lowest of all the options,
including generation using fossil fuels. This
expansion is being driven by rapid technical
development of next-generation wind
turbines that are larger and more efficient,
and as a major landowner, Holmen has
excellent opportunities to establish wind
power at a competitive cost.
Increased production on own land.
Blåbergsliden Wind Farm was erected on
Holmen’s land outside Skellefteå during
the year. When the wind farm is operating
at full strength, the 26 turbines, with a total
annual production of 0,4 TWh, will be able
to supply around 100 000 households with
renewable electricity annually. This invest-
ment is a significant step in the develop
ment of Holmen’s energy business. In ad-
dition to Blåbergsliden, a permit applica-
tion for another wind farm in Västerbotten
has been submitted, and during the year we
applied for environmental permits for two
wind farms in Östergötland.
Strength in own energy assets
Holmen produced 1.2 TWh renewable
electricity from hydro and wind power
in 2021, a figure that is set to rise in
future years with the commissioning of
Blåbergsliden. Together with the renewable
electrical energy that is produced at the
Group’s mills, our production of hydro
and wind power equates to more than
40 per cent of Holmen’s overall energy
consumption.
Hydro power provides a reliable
electricity supply. Holmen’s energy
production is dominated by hydro power
from our 21 wholly or partly owned
power stations located on the Umeälven,
Faxälven, Gideälven, Iggesundsån, Ljusnan
and Motala Ström rivers. In contrast to
other renewable energy sources, hydro
power is uniquely controllable. Energy
is difficult to store on any great scale,
but the water that is used to generate
electricity can be stored in reservoirs,
lakes and rivers. Hydro power stations
can therefore generate both baseload
power and regulating power, which is the
energy needed to meet fluctuations in
demand. Production is tailored to demand
24
Holmen Annual Report 2021
Renewable Energy
» With electrification of both
transport and industry on the
rise, it is clear that electricity
consumption is set to increase,
creating additional demand for
more renewable energy.«
Key figures
Operating profit/loss and return
Comment on results
2021
2020
488
347
378
215
Net sales,
Operating profit/loss
excl. items affecting
comparability, SEKm
Investments, SEKm
712
291
Capital employed, SEKm
4 069
3 351
Average no. of employees
(FTE)
Own production of hydro
and wind power, GWh
19
16
1 230
1 352
SEKm
400
300
200
100
0
347
10
16
17
18
19
20
21
The global recovery after the pandemic has
driven up demand for coal and natural gas
over the year. Coupled with higher costs
for emission allowances, this has helped to
drive up electricity prices on the continent
to record levels. Since the electricity
market in Europe is interconnected, this
also affected Swedish electricity prices, so
that despite production falling slightly from
a high level in 2020, Renewable Energy
increased its profit to SEK 347 million.
%
12
9
6
3
0
Operating profit/loss excluding items
affecting comparability
Return on capital employed, excluding
items affecting comparability
European energy consumption, %
European electricity consumption
Price trend
6
7
10
23
15
23
2
37
Fossil fuels
Nuclear power
Renewables
Electricity
Natural gas
Oil
Coal
Other
TWh
4 000
3 000
2 000
1 000
0
90
95
00
05
10
15
19
Fossil
Nuclear
Renewable
EUR/
MWh
250
200
150
100
50
0
12
13
14
15
16
17
18
19
20
21
SE2 (Sundsvall)
Germany
SE3 (Stockholm)
Marginal cost of coal-based power
Renewable Energy
Holmen Annual Report 2021
25
A sustainable business
We let the forest
groW and give
Our business model is circular.
The forest ecocycle gives us our
wood, which is refined and made
into products which our customers
can then refine in their turn. As
the lifecycle draws to a close, the
products can be recovered and
come back to life in a new form,
or be put to use as biofuel.
Over the years, we have made circularity
an integrated part of our business. Today,
growing, healthy forests, efficient manage
ment of raw materials and circular cycles
are not merely essential to our profitability,
they are also the cornerstone of a genuinely
sustainable business. We have the exper
tise to make the forest grow and give.
We grow houses but we produce
more than wood products
Holmen’s two nurseries produce more than
45 million seedlings each year, with the
majority planted on the Group’s own land.
After 70–90 years, as the tree’s growth
slows and its capacity to absorb and store
carbon dioxide falls, the forest is mature
enough to be harvested.
We saw as many planks and boards as
technically possible from the trees we
harvest. But not everything can be turned
into construction materials. This is because
tree trunks are round and planks are rect
angular, and because trees also have
branches, knots and bark. We use 100 per
cent of the raw material. Nothing goes to
waste. About half of the harvest consists
of large logs that are used to produce
construction material used for houses and
interiors, for example. The narrower part of
the tree and wood from thinning represent
about half of the harvest and are used with
residual products from the sawmills in the
form of wood chips to manufacture paper
board and paper. The remainder comprises
branches, tops, bark and wood shavings,
which are used to produce bioenergy.
Distribution of by-products
and waste, %
0.1
0.2
2
28.5
71.1
To energy production,
internally/externally
Byproducts to
material production
Waste sent to landfill
Hazardous waste
71.1
28.5
0.2
0.1
A circular business that is
bigger than Holmen
Holmen’s production plants are among the
most resource-efficient in the world. Over
the years, we have effectively reduced our
use of energy, water and chemicals, and
we recover and reuse the waste that arises.
Residual products from the sawmills are
used to generate electrical and thermal
energy in the mills, organic material from
the water treatment process is sold on
as soil, and steam from the mills is used
in the drying processes at the integrated
sawmills.
No recycled paper without fresh fibre.
When our paperboard and paper is
recycled, it feeds into the recycled paper
system, which needs an injection of fresh
fibre to function. This is why we often say
that recycled paper grows in the forest.
Reusing water. Holmen’s industries use
surface water from lakes and watercourses,
partly to transport and wash fibres in
the mills. The same water is used many
times before it is cleaned in several steps
in different combinations of mechanical,
biological and chemical treatment.
This sees us working to ensure that the
ecosystems in the aquatic environments
surrounding our mills are healthy and
thriving.
Flourishing ecosystems for
a renewable future
The forest has the capacity to provide
many benefits at the same time, making
it a valuable resource not only for Holmen
but for society as a whole. The transition
to a fossilfree society demands more
renewable material, which means that
the earth’s surface needs to be managed
more efficiently and to a greater extent.
Flourishing ecosystems are essential to
creating healthy, resilient forests.
Forever learning. We are convinced that
it is through research and collaboration
that we can continue to develop forestry
and find new ways to encourage both
growth and biodiversity. Environmental
conservation is part of all our activities as
we manage and harvest our forest, and
protect and improve habitat diversity. This
enables Holmen to increase harvests over
time, while enabling all naturally occurring
species to continue to thrive in the forest
landscape.
To increase the value and the usefulness
of the forest, Holmen constantly engages
in development work spanning every
aspect of our operations. Holmen’s work
on research and development is mainly
focused on three areas – increased forest
growth, more efficient production and
developing new and existing products
based on forest raw material.
26
Holmen Annual Report 2021
A sustainable business
We let the forest
groW and give
5%
Branches, tops, bark and
wood shavings become
renewable bioenergy.
45%
The narrower parts of the
tree and wood from thinning
are ground and digested
down into pulp that then
becomes paperboard
or paper.
50%
The large logs that make
up half of the harvest go to
sawmills where they become
building materials in the
form of construction timber
and joinery products.
About half of these logs in
turn become wood products
while residual products
such as wood chips and
wood shavings are used to
produce pulp and bioenergy.
Using all of the tree trunk
Wood – Planks and boards
Wood chips – Pulp for paper
Bark – Bioenergy
Wood shavings – Bioenergy
A sustainable business
Holmen Annual Report 2021
27
A sustainable business
forestry from a
global perspective
Sweden is a country with major forest assets that are actively managed, as is the case in many other countries.
However, there are some differences that are worth highlighting. The degree of deforestation, the number
of forest plantations and the intensity of forest management are areas that differ widely between different
countries. The impact on the ecosystems and the conditions for biodiversity also vary between different
countries and regions. All in all, this also affects the forests’ capacity to contribute to a better climate.
Managed forests absorb more carbon dioxide
Through photosynthesis and using energy
from sunlight, growing trees transform
carbon dioxide (CO2) into biomass and
thus store large amounts of carbon (C) in
the trees’ wood. The world’s forests store
more than 800 billion tonnes of carbon
in trees and in the soil, equivalent to
more than 3 000 billion tonnes of carbon
dioxide. This means that the forests
contain about as much carbon as the
whole atmosphere. The forest thus plays
a vital role in balancing the global climate.
Fortunately, the amount of carbon stored
in the world’s forest assets is growing. The
growing forests capture and store around
7 billion tonnes of carbon dioxide a year,
as a net amount, counteracting the effect
of fossil emissions and providing us with a
temporary buffer against climate change,
to a certain extent. But in which forests
does this uptake happen?
• A quarter of the world’s forests have very
little human involvement. These forests
contain high amounts of carbon but do
not store any additional carbon dioxide
to any greater degree, since emissions of
carbon dioxide from old trees and plants
as they rot largely balance out carbon
uptake in young trees. Minimal growth, a
higher risk of fi re and reduced areas due
to tropical deforestation also mean that
the net uptake in these forests is limited.
• Forest plantations account for only 3 per
cent of the world’s forests and contribute
approximately 3 per cent of the forests’
net uptake due to high growth.
• The highest net uptake of carbon
dioxide is found in forests with human
involvement. A signifi cant part of the
explanation behind this is that a large
proportion of these forests is actively
managed and consequently has both
high growth and low emissions from old
trees, fi re and other damage, producing a
high net carbon uptake.
Net CO2 uptake in the world’s
forests, billion tonnes per year
8
6
4
2
0
-2
Forest with
little human
involvement
Forest
plantations
Managed forest or
forest with human
involvement
Temperate and
boreal forests
Tropical and
sub-tropical forests
Source: Harris et al., 2021. References page 99.
Good conditions for biodiversity in the Nordic countries
Safeguarding global biodiversity is a critical
dimension of sustainable development, and
one that is closely related to how our forests
are managed. Although the challenges
are often local in nature, there is value
in observing progress at an aggregated
level. The natural variation of biotopes
and species in a given area makes this a
complex challenge.
The Biodiversity Intactness Index (BII)
models human impact on the natural
environment and estimates how high a
proportion of the original number of species
and habitats still remain. If the BII is 90 or
higher, the area is considered to have good
conditions for resilient and functioning
ecosystem.
Biodiversity Intactness Index 2020
100
90
80
70
60
50
Finland
Sweden
Canada
Global
average
Portugal
Brazil
Indonesia
USA
Germany
France
India
If the BII of an area is 90 or higher, human impact on the area is considered to be within planetary
boundaries. Source: Natural History Museum. Global Forest Watch. References page 99.
28
Holmen Annual Report 2021
A sustainable business
The world’s forests
Forests cover almost a third of the land area of
our planet, or about four billion hectares. More
than half of this is tropical and sub-tropical
forest. This includes the vast tropical rain
forests of the Amazon, the Congo Basin and in
South-East Asia, but also large areas of forest in
dryer areas. Temperate and boreal forests are
mainly found in the northern hemisphere. The
taiga has large areas of boreal forest in the cold
regions of Siberia, Europe and Canada. A large
proportion of temporal and many boreal forests
are actively managed, including in Sweden.
Tropical
45%
Boreal
27%
Temperate
16%
Sub-tropical
11%
Forestry in different parts of the world
Forest area
Between them, the major European forest
industry nations of Sweden and Finland
account for about a quarter of the EU’s
forests, but only just over 1 per cent of
global forested land. Brazil, Canada, the
USA and Russia are the countries with the
largest amount of forest. In total, these four
countries account for almost half of the
world’s forests.
However, forestry conditions vary
between different countries and regions.
Differences in forms of ownership and
responsibility for the land affect the way
the forests are managed and the approach
to questions of forest policy.
Deforestation
Currently 0.2 per cent of the world’s
forests are deforested every year; in other
words, forest land is converted to other
land use, mainly agriculture but also for
urban development and infrastructure.
Deforestation is at its highest in the tropics
and considerably lower in temperate and
boreal regions.
Forest plantations
Intensively managed forest plantations
account for 3 per cent of the world’s forests.
Brazil, Portugal and India are examples of
countries with signifi cant plantation areas.
In Sweden, 1.4 per cent of forests are
classifi ed as plantations, mainly stands of
lodgepole pine or spruce planted on former
arable land.
Active forestry
Sweden and Finland are examples
of countries where active forestry is
undertaken on a large proportion of forest
land, producing a relatively high harvesting
level for industrial roundwood. Germany
and Portugal are examples of countries
with smaller areas of forest but where
higher growth due to warmer climate
produces longer growth seasons and thus
an even higher wood harvest per hectare.
Other important forest industry countries
such as Brazil, Canada and the USA have a
relatively small harvesting level in relation
to their vast forest areas.
Use of bioenergy
Burning wood to meet domestic needs
is still the most dominant use of wood in
many low and middleincome countries,
as a rule with a low energy yield. Sweden
and Finland are countries with a high
degree of active forestry and a well
developed, industrialised forest industry.
Here, the effective production of renewable
bioenergy from residual products from
the forest is an integrated part of the
value chain and a key component in the
countries’ total energy supply.
Forest area
Deforestation
Forest
plantations
Wood harvest
to industry
Bioenergy from
solid fuel*
Brazil
Canada
USA
Indonesia
India
Sweden
Finland
France
Germany
Portugal
Mha
497
347
310
92
72
28
22
17
11
3
The world
4 000
%/year
0.3
–
–
0.7
0.9
–
–
–
0.1
1.2
0.2
%
2
–
5
5
14
1
–
–
–
21
3
m3/ha/year
% of the country’s
total energy supply
0.3
0.4
1.2
0.9
0.7
2.5
2.3
1.4
5.4
3.5
0.5
22
2
2
5
10
18
23
2
2
8
4
*Excluding domestic use, also includes biomass for energy from agriculture.
Russia is not included due to insuffi cient data. References page 99.
A sustainable business
Holmen Annual Report 2021
29
A sustainable business
How we are contributing
to a sustainable future
At Holmen, successful enterprise and a sustainable future
go hand in hand. Sustainability is about balancing several
perspectives – economic, environmental and social – and
succeeding in doing so over time. It is in our interest and equally
in the interest of society to manage the forest sustainably and to
use the raw material in a wise and far-sighted way.
We have identified Holmen’s three most important areas where we can make progress for a sustainable future.
1
2
3
tHe climate
can’t wait
We are part of a value chain
in which climate benefit is
created at several stages
and where we control a
large proportion of the
chain ourselves. We will
increase the positive impact
of our operations even
further, while reducing
our own climate footprint
at the same time.
The forest’s uptake of carbon
dioxide will increase through active
and sustainable forestry with high
growth, while we increase the
storage of carbon dioxide in our
climate-smart products. We will
also cut emissions from our value
chain in line with targets approved
by the Science Based Targets
initiative*.
TARGET: We will increase the
amount of carbon dioxide stored
in our products while reducing our
greenhouse gas emissions in line
with the Paris Agreement.
tHe power
of customer
cHoice
We create the greatest
bene fit for the climate to-
gether with our customers.
Their choosing renewable
products from the forest,
wind and water mean that
the world avoids fossil emis
sions. We make our custom-
ers part of a circular busi-
ness that creates value at
several stages of the chain.
Our customers’ choices make a
posi tive difference. And the best
we can do for the climate is to help
more customers to replace fossil
sources with renewables, known
as carbon dioxide substitution. The
goal is to help customers to choose
more renewable products so that
more fossil carbon atoms can stay
in the ground.
TARGET: We will increase the sub-
stitution of fossil carbon dioxide
through higher sales of renewable
products and renewable energy.
Outcomes are presented on pages 9 and 32.
Outcomes are presented on pages 9 and 32.
we grow
togetHer
We are engaged with
our employees and local
communities and invest
in development and
community. When people
and communities grow,
we can grow too.
We create a positive working
climate through development and
teamwork in equal measures, with
goal-oriented work on health and
safety, diversity and inclusion.
Our forestry fosters thriving rural
communities and enables people
to live, work and enjoy quality of
life outside the urban regions.
TARGET: We will be an attractive
employer with a healthy work
environment free from industrial
acc idents, discrimination or harass
ment, and where employees reco m
mend Holmen as a workplace.
Outcomes are presented on page 37.
The materiality analysis carried out in 2018 identified three focus areas where we see Holmen having
the greatest opportunity to make progress and contribute to a sustainable future. The analysis included
interviews and workshops with about 50 stakeholders and was based on the ten principles of the UN Global
Compact, the UN’s Sustainable Development Goals and the mega-trends and external factors affecting our
customers and our industry.
*The Science Based Targets initiative is an
international framework for calculating climate
targets in line with the UN body the IPCC’s climate
targets: the Paris Agreement. Read more about our
climate targets at holmen.com.
30
Holmen Annual Report 2021
A sustainable business
The EU taxonomy
The EU has decided to implement a taxonomy with criteria for when a business
can be considered to be sustainable from a climate perspective. So far, only
certain activities are covered by the taxonomy. In 2021 companies are to disclose
which of their activities are covered by the taxonomy.
Harvest of own forest, electricity production from hydro and wind power and
bioenergy are the activities within Holmen that are covered by the taxonomy.
Total1)
(SEK ’000)
Proportion
covered by the
taxonomy (%)
Proportion not
covered by the
taxonomy (%)
Income
Capital expenditure (CapEx)
Operational expenditure (OpEx)
20 664
1 761
1 507
8/11%
53%
25%
92/89%
47%
75%
Some of the harvest from Holmen’s own forest is refi ned by Holmen, which
under the taxonomy is classifi ed as integrated activities. Under the rules of the
taxonomy, income from such activities should not be included. If the income
from these activities is included in the calculation, the proportion of the Group’s
income covered by the taxonomy amounts to 11 per cent but if it is not included,
the proportion amounts to 8 per cent. The majority of Holmen’s income comes
from the production of wood products, paperboard and paper. These products are
not covered by the taxonomy, but contribute positively to the climate transition
by binding carbon dioxide and replacing fossil alternatives such as steel, concrete
and plastic. Should the EU expand the scope of the taxonomy, Holmen is in favour
of the inclusion of these activities.
1) Income refers to the Group’s net sales of SEK 19 479 million and parts of the Group’s other operating
income (SEK 1 185 million) in line with the taxonomy’s defi nition. These are shown in the Group income
statement on page 50. Total CapEx (SEK 1 761) corresponds to investments for the year in line with
note 9 Forest assets, note 10 Intangible assets, note 11 Property, plant and equipment and note 12
Leasing on pages 69–71. Of the OpEx defi ned in the taxonomy, repairs and maintenance and research
and development are applicable to Holmen.
Harvest of own forest falls under taxonomy activity 1.3 (forest management), electricity generation
from wind power is taxonomy activity 4.3, electricity generation from hydro power taxonomy activity
4.5 and electricity generation from bioenergy taxonomy activity 4.8.
Holmen contributes to the Sustainable
Development Goals
We have been building our experience for 400 years and we constantly work
to fi nd long-term solutions to current challenges. Thanks to sustainable use of
our forests’ ecosystems, today we are able to operate a circular, renewable and
bio-based business that benefi ts our customers, shareholders, employees and
local communities. Our production, business and organisation contribute to the
UN’s Sustainable Development Goals and thus also to the 2030 Agenda.
Top ranked by EcoVadis
In the past two years all of Holmen’s paperboard and paper mills
were awarded the Platinum rating by the international analysis
fi rm EcoVadis. This means that Holmen’s mills are among the
top percentage of the 75 000 companies examined worldwide.
EcoVadis assesses how companies work on the environment,
sustainable purchasing, ethics, workers’ rights and human rights.
2021
Holmen’s emissions targets are in line
with the UN’s climate goals under the
Paris Agreement, as certifi ed by the
UNbacked organisation the Science
Based Targets initiative (SBTi).
A holistic approach
to sustainability
Holmen has been part of the UN
Global Compact and its correspond
ing Nordic network since 2007.
We report to the organisation each
year on our work in line with its ten
principles and set out the progress
made. Information on how Holmen is
working in line with and fulfi lling the
principles of the UN Global Compact
is provided at holmen.com.
“ We have a holistic approach to
responsible business and our work
draws on the UN Global Compact.
We see it as natural
to support its ten
principles on human
rights, social and
environmental
responsibility, and
anti-corruption.”
Henrik Sjölund
President and CEO of Holmen
High rating in CDP’s
annual assessment
CDP is an independent sustainability
index that analyses climate data from
over 13 000 companies each year. The
companies that report their sustainability
work to CDP are assessed on disclosure,
awareness and management of climate
risks and opportunities.
Holmen has reported to the CDP Climate
Program since 2007 and also to the CDP
Forest Program since 2013. The results
show that Holmen has a good strategy and
manage ment to mitigate
negative impacts of
climate change. In the
2021 evaluation Holmen
was ranked A in both
categories.
A sustainable business
Holmen Annual Report 2021
31
A sustainable business
a value chain that
benefits the climate
The forest delivers the most
benefit when it is put to use. This is
the heart of Holmen’s sustainable
business. We are part of a value
chain that creates climate benefit
in four areas, amounting to a
total of almost 7 million tonnes
of carbon dioxide per year. This
is equivalent to 15 per cent of
total emissions within Sweden’s
borders. This is how Holmen
created real climate benefit
in 2021.
Forest carbon uptake
Young trees have the greatest capacity
to bind carbon dioxide. When the trees
become old and die, they rot and the stored
carbon dioxide returns to the atmosphere.
Through active and sustainable forestry
we increase forest growth and capacity to
absorb carbon. In 2021 it is calculated that
the net increase in the volume of standing
timber in Holmen’s forests has absorbed
and stored a net 1.3 million tonnes of
carbon dioxide.
Carbon storage and substitution
in products
The raw material from the forest continues
to bind carbon dioxide in its refined form
and substitution occurs when woodbased
products and renewable energy replace
fossil alternatives with a higher climate
footprint. It is here that Holmen’s climate
benefit becomes the most tangible – when
our products reduce the need for fossil
materials and raw materials, which means
that fossil carbon can stay in the ground.
The production of wood products
increased global storage of carbon dioxide
by more than 0.5 million tonnes, while
at the same time replacing construction
materials that would have caused
greenhouse gas emissions of 2.6 million
tonnes. Holmen’s paperboard and paper
production also contributes, storing
an equivalent of just under 0.1 million
tonnes of carbon dioxide, and when these
products can no longer be recycled, they
provide benefit as bioenergy, replacing
fossil energy equivalent to emis sions of 1.5
million tonnes of greenhouse gases.
Renewable energy production that
replaces fossil alternatives
Sales of renewable electricity produced
by Holmen from hydro power, wind power
and biomass replace carbon and gas power
equivalent to emissions of 1.0 million
tonnes of greenhouse gases. On top of this,
we have bioenergy production that comes
from residual products from the forest
and our facilities. By selling this bioenergy,
we replace fossil emissions of 0.6 million
tonnes.
Climate targets in line with SBT
Holmen’s own operations generate
greenhouse gas emissions that are already
within the Paris Agreement’s threshold
values for 2044. We have achieved this
through energy efficiency measures and
investments in renewable energy at our
Managed forests benefit the climate in several ways, million tonnes CO2e
facilities. Since 2005, the use of fossil
fuels in our production has fallen by 85 per
cent and today the majority of our fossil
emissions are generated from purchases
of input products and from transport to
and from Holmen’s industries. Therefore,
we are now focusing on cutting emissions
in these areas. Holmen’s emission targets
are approved by the Science Based Targets
initiative.
No-one owns climate benefit
Holmen’s business helps to benefit
our planet by reducing the amount of
greenhouse gases in the atmosphere.
It is in our own interests to manage our
forest sustainably while preserving robust
ecosystems and as high growth as possible.
This produces more renewable wood
raw material while increasing the forest’s
capacity to absorb carbon dioxide.
The greatest climate benefit is created,
however, when our customers choose to
replace fossil alternatives with renewables.
This means that fossil raw materials such
as oil, coal and gas can stay in the ground
rather than being extracted. Therefore,
Holmen has decided to invest even more
in producing the products that contribute
to the greatest climate benefit: wood
products. The forest provides the greatest
benefit when it is used and it is the power of
customer choice that makes the difference.
3.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
2.6
1.5
1.0
0.6
1.3
0.5
0.1
Storage in
Holmen’s forests
Storage in
wood products
Storage in
paper &
paperboard
Wood products
replacing fossil
materials
Paper &
paperboard
replacing fossil
energy
Bioenergy
replacing fossil
energy
Increased net storage of carbon dioxide
Reduced fossil carbon dioxide emissions
Renewable
electricity
production
replacing
fossil energy
-0.7
Holmen’s emissions
in Scope 1–3
Emissions
in Holmen’s
value chain
Actively managing the forest enables us to benefit the climate by storing carbon dioxide both in the forest and in our products, and by forest-based products replacing fossil
alternatives. Total climate benefit from Holmen’s value chains in 2021 is calculated in line with the methodology used by the Swedish Forest Industries Federation, CEPI and a
number of other forest companies. To ensure that Holmen’s reporting is based on the same methodology, Holmen had the calculation methodology produced by Peter Holmgren of
Futurevistas AB in 2020. See page 98 for further details of the calculations.
32
Holmen Annual Report 2021
A sustainable business
In 2021 Holmen’s operations
contributed towards a climate
benefit of 7 million tonnes CO2e,
equivalent to 15 per cent of
emissions within Sweden.
1.3 million tonnes of CO2e
were absorbed in the growing volume
of standing timber in our forests
4.7 million tonnes of CO2e were
stored in and replaced by wood products
(3.1) and by paper and paperboard (1.6)
1.6 million tonnes CO2e were
replaced by our renewable production
of electricity from wind and water (1.0)
and from bioenergy (0.6)
Emissions equivalent to 0.7 million tonnes CO2e
come from Holmen’s production and transport
A sustainable business
Holmen Annual Report 2021
33
Water treatment plant at
Braviken Paper Mill.
active
environmental
activities
Holmen’s environmental activities involve constantly reducing
environmental and climate impact, and ensuring that the Group
complies with the environmental rules and conditions set.
Environmental
responsibility
For Holmen, environmental and
energy concerns play a natural role in
planning production and investments.
Operations are characterised by
resource-efficient use of renewable
raw material and energy, and by pro
tecting the environment, applying the
precautionary principle.
Energy, chemicals and fibre are recovered
as far as possible, in order to minimise the
environmental impact of production. The
section on Risk management on page 45
outlines Holmen’s preventive work on eco
related risks and how they are managed.
The main environmental impact from the
industrial sites takes the form of emissions
to air and water. Information on production
and priority environmental parameters is
presented on page 94.
Holmen’s environmental work is charac
terised by constant improvement measures
within the framework of certified environ-
mental and energy manage ment systems
(see page 35), which ensure compliance
with legislation and requirements set by
authorities. Responsibility for the manage
ment systems rests with the respective
business area, as does environmental
responsibility.
Permits
At the end of 2021, Holmen was running
production operations that require
environmental permits at nine facilities.
Additionally, the coating and laminating
factory in Strömsbruk is a notifiable
activity. The permits specify conditions
regarding permitted production volumes
and permitted emissions to air and
water, among other things. Eight of the
facilities are located in Sweden and one
is in Workington in the UK. The facilities’
turnover amounted to 84 per cent of the
Group’s net sales in 2021.
Workington’s application for an
exemption, and the proposed conditions
during the period of the exemption, have
been submitted to the environmental
authority, which commenced its review
in April 2021.
To meet demand for bright paper
products, work continued on the
application for a new environmental
permit for Braviken Paper Mill in 2021.
In 2021 final conditions for noise and
emissions to water were decided for
the sawmill in Bygdsiljum in Skellefteå
municipality.
The sawmill in Kroksjön gained a new
environmental permit in December 2020,
which entered into force in January 2021
and was applied in December 2021.
In Västerbotten, Holmen is construct-
ing Blåbergsliden Wind Farm, which will
have annual electricity production of just
over 400 GWh. The wind farm is expected
to be fully operational in 2022. Another
wind farm of a similar size is undergoing
the permit process in Västerbotten and
during the year we submitted applications
for permits to build wind power on our
own land in two areas in Östergötland.
New environmental legislation for
hydro power entered into force on
1 January 2019. The legislation means
that hydro power operators who do not
comply with modern environmental
criteria will need to apply for a review
under the Swedish Environmental
Code before the end of 2039. Holmen’s
facilities have been registered with the
national plan for the revision of hydro
power plant licences. Jointly owned
facilities have been registered by the
respective main owner.
34
Holmen Annual Report 2021
A sustainable business
A sustainable business
Environmental permits for the
Group’s production facilities
2018
2017
Iggesund Mill, Environmental Code1)
Workington Mill, IED
Hallsta Paper Mill,
Environmental Protection Act
2000
Braviken Paper Mill, Environmental Code2) 2002
Iggesund Sawmill, Environmental Code 2014
2010
Braviken Sawmill, Environmental Code
Linghem Sawmill, Environmental Code
2003
Bygdsiljum Sawmill, Environmental Code 2018
Kroksjön Sawmill, Environmental Code3) 2020
1) Port activity at Skärnäs Terminal, alongside Iggesund
Mill, is included in the environmental permit. In addi-
tion, operations subject to notification requirements
take place at the production unit in Strömsbruk.
2) An application for a new environmental permit was
submitted to the Land and Environment Court in
late 2020.
3) The sawmill gained a new environmental permit in
late 2020 which was applied in 2021.
Discontinued operations
In consultation with the environmental
authorities, studies are being conducted
at contaminated discontinued industrial
sites where Holmen has operated
in the past. In 2021, studies were in
progress at different stages regarding
the former sawmills Håstaholmen,
Stocka and Lännaholm, the sulphite
mills at Strömsbruk, Domsjö, Loddby
and Mariannelund, the paper mill at
Silverdalen and the groundwood mill at
Bureå. The ground area and the buildings
at the former sawmill in Håstaholmen in
Hudiksvall have been remediated. The
project to remediate polluted sediment
in the area of water off the industrial
site was completed in 2020 and in 2021
the polluted sediment mass was dealt
with. The project will be completed in
spring 2022, when the environmental
authorities are expected to approve
the report on completed remediation.
The land area, the buildings and the
groundwater at the former surface
treatment plant in Iggesund have been
remediated. In 2021 the environmental
authority approved the remediation
report and the case was thus closed.
Exceedances
and complaints
Emission allowances and
electricity certificates
The environmental manager within each
operation handles any incidents that
occur. Close dialogue with the mills’ local
residents is important in order to identify
and address any views on operations at an
early stage. 53 (37) environmentrelated
incidents were reported to the supervisory
authorities during the year. One of the
nonconformities was of a significant nature
in terms of impact on results and was due
to a turbine breakdown in Workington.
Corrective measures were taken to deal with
these cases, in line with the environmental
management system of the operations
concerned.
Holmen has been awarded emission
allowances within the EU Emissions
Trading Scheme. As a result of invest
ment in biobased energy production
and energy savings at the facilities,
the use of fossil fuels has fallen
considerably in recent years. Surplus
allocated emission allowances have
been able to be sold. Holmen has
applied to be allocated emission allo
wances for the period 2021–2030 and
has received an allocation decision
for the trading period 2021–2025.
The Group has produced renewable
electricity for many years. This has
contributed income in that we have
obtained electricity certificates for
our production. The electricity certi
ficates have been sold to electricity
distributors, who have used the
certificates in their turn because their
customers need a proportion of their
electricity to come from renewable
sources. In the UK, electricity distri
butors have to meet a certain quota
for renewable electricity, and pro
ducers of renewable electrical energy
receive green Renewables Obligation
Certificates in proportion to the
amount of electricity generated.
Workington Mill obtained such green
certificates in 2021.
Management system certifications
Production facilities1) Environment
ISO 14001
Energy
ISO 50001
Quality
ISO 9001
Health and safety
ISO 45001
Iggesund Mill2)
Workington Mill3)
Hallsta Paper Mill
Braviken Paper Mill
Iggesund Sawmill
Braviken Sawmill
Linghem Sawmill4)
Bygdsiljum Sawmill4)
Kroksjön Sawmill4)
2001
2003
2001
1999
1999
2011
1999
2005
2005
2015
2005
2006
2006
2011
1990
1990
1993
1996
1997
2011
2016
2005
2012
2015
2017
2017
2020
The years given in the table are the years when the certification was first issued. The certifications mean that
procedures are in place for planning, implementation and follow-up, as well as measures to enable continuous
improvement in the work on the various management systems. Certificates can be viewed at holmen.com/
sustainability.
1) Holmen Forest is certified under the environmental
management system ISO 14001. Forest operations
also hold forest management and chain-of-custody
certification under PEFC™ and FSC® respectively. All
Holmen’s facilities at which wood raw material is used
have chain-of-custody certification. Licence codes for
PEFC™ and FSC® are available at holmen.com.
2) The certifications include the production unit in
Strömsbruk and operations at Skärnäs Terminal.
3) Workington Mill has been certified under the food
safety management system ISO 22000 since 2019
and upgraded to FSSC 22000 in 2021.
4) Work is in progress to include Linghem, Bygdsiljum
and Kroksjön in the other sawmill certificates.
A sustainable business
Holmen Annual Report 2021
35
Employees
employees
With courage,
commitment &
responsibility
Today’s Holmen is the result of
countless decisions large and
small, made in line with our
values of courage, commitment
and responsibility. A team effort
where we have put long-term
values ahead of short-term profit
and dared to swim against the tide
when it made sense to do so. This
sees us continuing to fine-tune our
products and services.
Management by objectives
Holmen is a learning workplace where
everyone has the opportunity to feel a
sense of commitment and responsibility
for the areas in which they work and
the objectives set. Applying Holmen’s
management by objectives model, the
strategy, business plans and performance
expectations are communicated across
the organisation. At employee level,
communication is via appraisal talks. Based
on the expectations communicated, our
employees produce an initial proposal for
targets that will lead to the expectations
being met. This helps us to make the
most of the skills and potential of every
employee.
We believe in the drive inherent in every
individual, team and unit. The management
by objectives model is our way of making
sure that all of us working at Holmen feel
that we are focusing on the right things and
helping to implement our strategy.
Core values
Our core values of courage, commitment
and responsibility are the route to a strong
culture and the answer to how to perform
well and make each other and Holmen
better. The core values guide us in our
approach to each other, in relations with
customers and in our work. They are
integrated in our processes and tools,
including in the recruitment process,
appraisal talks, in the management by
objectives model, and as a basis for our
internal leadership and management
programme. The values are actively
applied in work on the ground.
Recruitment and development
Attracting and retaining the right employees
is of the utmost importance in maintaining
competitiveness over time. This way,
we ensure that Holmen continues to be
a business with a focus on innovation
and development. We have an attractive
employer offering and we are constantly
refining our offering to attract the right
target groups in the skills market. We
recruit using a structured process that
helps us bring in the right skills. Employees
and leaders are given opportunities to grow
through competence development and we
create conditions in which each and every
individual is able to grow, with stimulating
tasks and new challenges.
Based on our current and future skills
needs, we are working on employee
develop ment at all levels. We give
employees a great deal of responsibility,
but also motiva tion and support from a
team of committed and expert colleagues
and leaders. We also provide development
programmes for new as well as more
experienced managers and for specialists
driving work on change.
Health and safety
It goes without saying that we actively
pursue a healthy culture and an accident
free workplace for our employees and the
contractors who work with us. Holmen
carries out systematic Groupwide health
and safety work in line with ISO 45001
(see page 35) and all our production units
are certified, apart from Bygdsiljum and
Kroksjön Sawmills, which were acquired in
2020. Work is in progress to include these
facilities in the certificates of the other
sawmills.
As a result of the coronavirus pandemic,
Holmen implemented a large number of
adaptations and measures to ensure a
safe work environment for our employees
and others present in our operations. The
precautionary principle applies.
36
Holmen Annual Report 2021
Employees
A zero vision for accidents
The number of accidents per million hours
worked increased from 4.3 in 2020 to 5.6 in
2021. The dominant causes of accidents are
tripping, slipping, falls and pinch point accidents.
In 2021 the number of lacerations fell from
20 per cent to 3 per cent compared with the
previous year. The increase in the number of
accidents comes from acquired production
units. Work to incorporate the new units in the
Group’s health and safety work continues. At the
previously owned production units, the accident
rate remained unchanged in 2021 compared
with 2020. It is important for us to continue
to work far-sightedly, focused on our vision of
zero accidents.
Industrial accidents
with more than 8 hours of absence (LTI)
per million hours worked.
LTI
10
8
6
4
2
0
16
17
18
19
20
21
linked to opinions and activities that are
not compatible with Holmen’s Code of
Conduct. We have clear guidelines on what
applies and where to turn in cases where
Holmen’s Code of Conduct is not being
followed.
A zero vision for discrimination
and harassment
Holmen has a vision of zero discrimination
and harassment, which is followed up
internally via the employee survey, appraisal
talks and reported cases. A few cases
involving discrimination and harassment
were reported during the year. The
cases were handled in line with internal
procedures.
Employees recommend Holmen as
a workplace
A comparison based on 600 000 responses
from 250 companies in different industries
showed that Holmen’s employees recom
mend Holmen as an employer far exceeding
the benchmark. Employee surveys show
that Holmen’s employee Net Promotor
Score (eNPS) is 43, compared with a
benchmark index of 13.
Dynamic workplace
To maintain strong competitiveness,
we want to be a workplace that attracts
and retains the skills Holmen needs –
employees who represent a diversity of
insights, experiences and cultures. Our
industry is currently overwhelmingly male
and we are therefore working to increase
diversity and achieve a more even gender
distribution among managers and leaders.
This will enable us to benefit from a
diversity of backgrounds and experiences
and ensure that everyone feels welcome.
As part of our work to create an inclusive
workplace in which everyone is given the
same development opportunities, we draw
up action plans and annual pay surveys in
line with the Swedish Equality Act.
Code of Conduct
Holmen’s good reputation as a responsible
and trustworthy company is fundamental
to our business. Holmen’s Code of Conduct
clearly sets out the requirements and
expectations of how employees at Holmen
are to behave.
Office workers are trained in the code via
e-learning and 86 per cent of all office staff
have completed the training in the past
two years. A few cases linked to deviation
from Holmen’s Code of Conduct were
reported during the year and were handled
according to internal procedures.
We have also continued to work in line with
our supplier followup process, which was
updated in 2020. We have identified which
suppliers pose risks linked to the climate,
the environment, labour law, human
rights, business ethics and sustainable
purchasing. Work to draw up action plans
for suppliers identified as being high risk
continues.
Human rights and equality
Holmen safeguards human rights and the
equal value of all people in everything
we do, both in the workplace and when
travelling on business. All employees
must have the same rights, obligations
and opportunities irrespective of their
sex, transgender identity or expression,
ethnicity, political opinion, union
membership, religion or other belief,
disability, sexual orientation, health status,
age or family responsibilities. This is set
out in Holmen’s Code of Conduct and
applies to employees, contractors and
suppliers. To us, this means that everyone
who works at Holmen and in our supply
chain must stay healthy and perform
well at work, while enjoying an inclusive,
safe and healthy work environment with
fair terms of employment. Bullying and
harassment are not tolerated and everyone
is expected to act professionally and not
expose themselves to the risk of being
Employees
Holmen Annual Report 2021
37
Corporate
governanCe
report
Holmen AB is a Swedish public
limited company, listed on the
Stockholm Stock Exchange
(Nasdaq Stockholm) since 1936.
The preparation of a corporate
governance report is a require
ment under the Swedish Annual
Accounts Act. The corporate
governance report complies
with the rules and instructions
stipulated in the Swedish Code
of Corporate Governance.
Shareholders
Holmen had 48 126 shareholders at year-
end 2021. Private individuals with Swedish
citizenship accounted for the largest
category of owners with 45 729 owners.
The largest owner at year-end, with
62.3 per cent of votes and 34.1 per cent
of capital, was L E Lundbergföretagen,
which means that a Group relationship
exists between L E Lundbergföretagen AB
( corporate ID no. 556056-8817), whose
registered office is in Stockholm, and
Holmen. The second-largest owner was
the Kempe Foundations and their holdings
of Holmen shares amounted to 17.5 per
cent of votes and 7.4 per cent of capital at
the same date. No other individual share-
holder con trolled as much as 10 per cent of
the votes. Employees have no holdings of
Holmen shares via a pension fund or similar
system.
At the 2021 AGM, the Board’s authorisa-
tion to purchase up to 10 per cent of the
company’s shares was renewed. No shares
were bought back in 2021. The company
already holds 0.3 per cent of the total
number of shares in treasury.
See pages 48–49 for further information
on the shares and ownership structure.
General meeting of shareholders
The notice convening the AGM is sent no
earlier than six and no later than four weeks
before the meeting. The notice contains:
a) information about registering intention to
attend and entitlement to participate in and
vote at the meeting; b) a numbered agenda
of the items to be addressed; c) information
on the proposed dividend and the main
content of other proposals. Shareholders
or proxies are entitled to vote in respect
of the full number of shares owned or
represented. Registration for the
meeting is made by letter, telephone
or at holmen.com. Notices convening
an Extraordinary General Meeting
(EGM) called to deal with changes to the
company’s articles of association shall
be sent no earlier than six and no later
than four weeks before the meeting.
Proposals for submission to the AGM
should be addressed to the Board and
submitted in good time before the notice is
distributed. Information about the rights of
shareholders to have matters discussed at
the meeting is provided at holmen.com.
It was announced on 22 September
2021 that the 2022 AGM would take place
in Stockholm on 30 March 2022.
Nomination committee
The AGM resolved that the nomination com-
mittee shall consist of the chairman of the
Board and one representative from each of
the three shareholders in the company that
control the most votes at 31 August each
year. The composition of the nomination
committee for the 2021 and 2022 AGMs is
shown in the table on page 41.
The nomination committee’s mandate
is to submit proposals for the election of
↓ AGM 2021
↓ Board meetings
The Board held seven meetings in 2021, four of which were in connection
with the company’s publication of its quarterly reports. One meeting
was dedicated to reviews of strategic issues and the Group budget for
2022. One meeting was held in connection with the company’s AGM.
In addition, the Board paid particular attention to strategic, financial and
accounting issues, the monitoring of business operations, the valuation of
the company’s forests, effects of the coronavirus pandemic, sustainability
issues and other significant investment matters. On one occasion the
company’s auditor reported directly to the Board, providing a presentation
about the audit of the accounts and internal control.
The 2021 AGM and the material presented were in Swedish. The notice
convening the meeting, the agenda and the minutes are available at
holmen.com. According to item 1.2 of the Swedish Corporate Governance
Code, the Chairman of the Board and as many members of the Board as
are required for a quorum are to be present at meetings. In light of the
risk of spreading the coronavirus, however, the Board resolved to conduct
the AGM only through postal voting so that as few participants as possible
would be present. For this reason, only the Chairman of the Board and
the CEO were present at the AGM. However, as many members as were
needed for the Board to have a quorum were prepared to hold a telephone
meeting on the day of the AGM. For the AGM, shareholders were given
the opportunity to ask and receive answers to questions in writing.
The AGM adopted the income statement and balance sheet, decided on
the appropriation of profits and granted the departing Board discharge
from liability. Fredrik Lundberg, Hans Hedström, Carnegie Funds, and
Carina Silberg, Alecta, checked and approved the minutes. It was not
possible to follow or participate in the meeting from other locations using
communication technology.
38
Holmen Annual Report 2021
Corporate governance report
Shareholders
Nomination committee
General meeting of shareholders
Board of Directors
CEO
Group management
Five group staffs
Five business areas
Auditors
Board members and the Board chairman,
for the Board fee and auditing fees and,
where applicable, for the election of
auditors. The committee’s proposals are
presented in the notice convening the AGM.
The nomination committee applies rule
4.1 of the Swedish Corporate Governance
Code (the Code) as a diversity policy in
putting forward proposed Board members,
which means the composition of the Board
should reflect the company’s business
operations, phase of development and
other circumstances, and should be
diverse and wide-ranging in terms of the
expertise, experience and background of
the members elected by general meetings.
An even gender distribution is sought.
The nomination committee has observed
this policy in its proposals to the Board.
Further information about the work of the
nomination committee will be provided at
the 2022 AGM.
For the 2022 AGM, the nomination
committee proposes that the Board consist
of nine members elected by the AGM.
The nomination committee proposes the
re-election of the current Board members:
Fredrik Lundberg (who is also proposed
for re-election as Chairman of the Board),
Carl Bennet, Alice Kempe, Lars Josefsson,
Louise Lindh, Ulf Lundahl, Henrik Sjölund
and Henriette Zeuchner, as well as the
election of Fredrik Persson. Current board
member Lars G Josefsson has declined
re-election.
Composition of the Board
The members of the Board are elected each
year by the AGM for the period until the end
of the next AGM. According to the articles
of association, the Board should consist of
seven to eleven members. The company’s
articles of association contain no other
rules regarding the appointment or dis-
missal of Board members, or regarding
amendments to the articles, or restrictions
on how long members can serve on the
Board.
The 2021 AGM re-elected Fredrik
Lundberg , Carl Bennet, Lars Josefsson,
Lars G Josefsson, Alice Kempe, Louise
Lindh, Ulf Lundahl, Henrik Sjölund and
Henriette Zeuchner to the Board. Fredrik
Lundberg was re-elected Chairman of the
Board. At the statutory first meeting of the
new Board in 2021, Henrik Andersson,
Senior Vice President Legal Affairs, was
appointed company secretary.
Over and above the nine members
elected by the AGM, the local labour
organisations have a statutory right to
appoint three members and three deputy
members.
Of the nine Board members elected by
the AGM, eight are deemed independent
of the company as defined by the Code.
The CEO is the only Board member with
an operational position in the company.
Further information about the members of
the Board is provided on pages 88–89.
The Board’s activities
The activities of the Board follow a plan,
one of whose aims is to ensure that the
Board obtains all requisite information.
Each year the Board decides on written
working procedures and issues written
instructions relating to the division of
responsibilities between the Board and
the CEO and the information that the
Board is to receive continually on financial
developments and other key events.
Employees of the company participate in
Board meetings to submit reports.
↓ Members of the Board of Directors
Attendance at meetings in 2021:
Board members
Elected
Role on
the Board
Audit
committee
Remuneration
committee
Board of
Directors
Audit
committee
Remuneration
committee
Fee
(SEK ’000)
Fredrik Lundberg
Carl Bennet
Lars Josefsson
Lars G Josefsson
Alice Kempe
Louise Lindh
Ulf Lundahl
Henriette Zeuchner
Henrik Sjölund
1988
2009
2016
2011
2019
2010
2004
2015
2014
Chairman
Member
Member
Member
Member
Member
Member
Member
Member,
President & CEO
Member
–
Member
–
–
–
Chairman
–
–
Chairman
Member
–
–
Member
–
–
–
–
7/7
7/7
7/7
6/7
7/7
7/7
7/7
7/7
7/7
5/5
–
5/5
–
–
–
5/5
–
–
2/2
2/2
–
–
2/2
–
–
–
–
740
370
370
370
370
370
370
370
–
According to the nomination committee, Fredrik Lundberg, Carl Bennet, Lars Josefsson, Lars G Josefsson, Alice Kempe, Louise Lindh, Ulf Lundahl and
Henriette Zeuchner are independent of the company and its senior management, and Lars Josefsson, Lars G Josefsson, Ulf Lundahl, Henriette Zeuchner
and Henrik Sjölund are independent of the company’s major shareholders.
Employee representatives
Steewe Björklundh, member, elected 1998/Kenneth Johansson, member, elected 2004/Tommy Åsenbrygg, member, elected 2009/Martin Nyman,
deputy member, elected 2021/Daniel Hägglund, deputy member, elected 2014/Christer Johansson, deputy member, elected 2017.
Holmen Annual Report 2021
39
Corporate governance report Strategy and targets
Strategy, budget and management by objectives
Business processes
Earnings, reporting and monitoring
Code of Conduct
Policies
Guidelines
Authority
Values
Group instructions
Authorisation rules
Management systems
Internal management processes and guideline documents.
In order to develop the work of the Board,
an annual evaluation is undertaken involv-
ing each member answering a questionnaire
containing relevant questions concerning
the Board’s work and having the opportu-
nity to make suggestions on how to enhance
the Board’s work. Their responses were
presented and discussed at a Board meet-
ing. The results of the 2021 evaluation
will form the basis for planning the Board’s
work for the coming year. The Chairman of
the Board has reported the results of the
evaluation to the nomination committee.
Remuneration
The Board has appointed a remuneration
committee consisting of Fredrik Lundberg,
Carl Bennet and Alice Kempe. During the
year, the committee prepared matters
pertaining to the remuneration and other
employment conditions of the CEO and also
evaluated guidelines for remuneration and
share savings programmes. The committee
also examined remuneration structures,
remuneration levels and methods for
establishing the Group’s salary levels to
ensure that these are reasonable and
appropriate. In addition, the committee
prepared the Board’s proposal to the
Annual General Meeting regarding share
savings programmes.
Remuneration and other employment
conditions for senior management who
report directly to the CEO are decided by
the latter and approved by the remunera-
tion committee in accordance with the
instructions for the remuneration committee
adopted by the Board of Directors, as well
as the guidelines adopted by the AGM for
remuneration of senior management.
The Group applies the principle that
each manager’s manager must approve
decisions on remuneration in consultation
with the relevant personnel manager.
The current guidelines for remuneration
of the CEO and other senior management,
40
Holmen Annual Report 2021
i.e. heads of business areas and heads of
Group staffs who report directly to the CEO,
were adopted by the 2020 AGM . The AGM
adopted the guidelines in accordance with
the Board’s proposal. Current guidelines
and information about remuneration are
presented in Note 4 on page 63.
The 2021 AGM approved the Board
fee and payment of the auditors’ fee as
invoiced.
The 2019 AGM approved a targeted
share savings programme for key indivi-
duals in the Group. The programme expires
in April 2022 and the Board of Directors
has proposed that the 2022 AGM take a
decision on a new, similar programme.
The aim of the programme is to strengthen
common interests between shareholders
and company management, as well as to
create a long-term commitment to Holmen.
More information about the current share
savings programme can be found in Note 4.
Group management
The Board has delegated operational
responsibility for management of the
company and the Group to the CEO. The
Board annually decides on instructions
covering the distribution of tasks between
the Board and the CEO.
Holmen’s Group management comprises
the company’s CEO, the heads of the five
business areas, the heads of the five Group
staffs and the head of international affairs.
Information about the CEO and other mem-
bers of Group management is provided on
page 90.
Group management meets regularly. The
meetings during the year dealt with matters
such as earnings performance and reports
before and after Board meetings, strategic
issues, budgets, investments, integration
of the sawmill group Martinsons, internal
control, work environment, sustainability
issues, climate and environmental issues
and silviculture matters. Meetings were
also dedicated to reviews of market
conditions, the coronavirus pandemic,
economic developments and other external
factors affecting the business, as well as
discussion about governance of the Group
and the tools, such as the management-by-
objectives model and Group-wide policies,
used in such governance. In 2021, Group
management placed special focus on
testing the company’s strategy in relation
to a number of potential scenarios for how
society and markets might develop.
Audit
The 2021 AGM chose the auditing company
PricewaterhouseCoopers AB (PwC) to serve
as the new auditors to succeed KPMG.
Authorised Public Accountant Magnus
Svensson Henryson was appointed as the
principal auditor. PwC performs the audit
for Holmen AB as well as for the majority of
Holmen’s subsidiaries.
The examination of internal procedures
and control systems begins in the second
quarter and continues thereafter until
year-end. The interim report for January–
September is subject to review by the
auditors. The examination and audit of
the final annual accounts and the annual
report, including the sustainability report,
take place in January–February.
The members of Holmen’s audit com-
mittee are Ulf Lundahl, chairman, Fredrik
Lundberg and Lars Josefsson. The audit
com mittee has met five times. The audit
com mittee’s task is to monitor the
company’s financial reporting and the
efficiency of the company’s internal control
and risk management. The audit committee
reviews and monitors the impartiality
and independence of the auditor. The
committee also evaluates the auditor’s
work and submits proposals to the
company’s nomination committee on the
election of an auditor for the next mandate
period. The Board’s reporting instructions
include requirements that the members
of the Board shall receive a report each
year from the auditors confirming that
the company’s organisation is structured
to enable satisfactory supervision of
accounting, management of funds and
other aspects of the company’s financial
circumstances. The auditors reported
in 2021 to the audit committee at four
meetings and to the Board of Directors
on one occasion. In addition to the audit
assignment, Holmen has consulted
PwC on matters pertaining to taxation,
accounting and for various investigations.
The remuneration paid to PwC for 2021
is stated in Note 5 on page 64. PwC is
required to assess its independence before
making decisions on whether to provide
Holmen with independent advice alongside
its audit assignment.
Internal management processes
Holmen’s business strategy is formulated
by Group management in order to create
long-term value for both shareholders and
customers, while contributing to a better
Corporate governance report climate and thriving rural communities.
An annual review of the Group’s strategy
is conducted, including objectives for
the business. The strategy is presented
to and adopted by the Board and forms
the basis for the expectations that are
set. On the basis of the expectations,
each unit sets objectives and identifies
success factors for achieving them. Key
performance indicators (KPIs) are linked
to the success factors in order to measure
and demonstrate changes in performance.
The strategy review also provides the basis
for the budget, in which decisions are taken
on the distribution of resources and targets
for the coming year are set. Use of a simple
and well-implemented management-by-
objectives tool for continuous follow-up
ensures that the entire organisation is
apply ing appropriate priorities to attain
the objectives established.
The business areas guide the operating
businesses towards these targets using
processes for purchasing, production
and sales, and supported by HR, financial
management, research and development,
IT, environment and communication
processes.
Operations are followed up through
regular reporting of performance and KPIs
that reflect business activity, along with
additional qualitative analysis. Reporting
of non-financial data is integrated with the
financial reporting. When major investment
decisions are under consideration, financial,
social and environmental effects are taken
into account.
Code of Conduct. Holmen’s Code of
Conduct is in line with the UN Global
Compact and provides guidance on day-
to-day operations and clarifies what
expectations are made of employees.
Holmen’s operations should be
characterised by responsible behaviour
towards both internal and external
stakeholders. The Supplier Code of
Conduct complies with the UN Global
Compact and covers the areas of anti-
corruption, human rights, health and
safety and the environment.
With respect for human rights, Holmen
endeavours to ensure a workplace climate
that is founded on the equal value of all
people. All Holmen’s employees must
have the same rights, obligations and
opportunities irrespective of their sex,
transgender identity or expression,
ethnicity, religion or other belief, disability,
sexual orientation and age. Holmen is
subject to the UK Modern Slavery Act
and a report relating to this is available at
holmen.com.
Policies. Holmen works with policies,
guidelines and Group instructions to clarify
how employees should act within key and
critical areas. The Group’s 11 policies cover
matters such as expectations of employee
participation and leadership, specify the
scope of management by objectives, talent
management, interaction with trade union
organisations, equality and employment
terms and conditions. In addition to this,
Financial risk is managed centrally and
should be characterised by a low level of
risk. The policies should also ensure that
the company’s assets are managed in
accordance with Group rules, risks of errors
in financial reporting are minimised and
irregularities are prevented. The Group’s
purchasing should contribute to long-term
profitability. The sustainable sale of raw
materials, products and services should
be ensured in both the short and long
term. Communication must be accurate,
transparent and easily accessible and
comply with legal requirements and
commercial confidentiality.
Compliance. Holmen’s Code of Conduct,
policies and values are part of every
employee’s induction programme, and shall
be reiterated by managers at employee
meetings. Compliance is monitored partly
through employee surveys and appraisal
talks, pay surveys, safety statistics and
» Successful entrepreneurship and a sustainable future
must go hand in hand. When Holmen increases forest
growth, produces more climate-smart products and
expands wind power, values are created that stand the
test of time, while counteracting global warming.«
Louise Lindh, Board member, Holmen
a good work environment is covered in
terms of health and safety, anti-corruption
and competition issues, and how good
business practice is maintained in relation
to external contacts on different markets.
Employees in departments at risk of
encountering unauthorised behaviour
receive special training on business ethics.
The policies specify that raw materials
should be used efficiently, pollution
should be prevented and that we should
aspire to make continuous improvements.
audits of the organisational and social work
environment. The Board is to be informed
of any violations of the Code of Conduct.
Where non-compliance or failings are
found in terms of the corporate culture, the
issue is addressed on a case-by-case basis.
Whistleblower function. A whistleblower
function is available so that employees
and other stakeholders can highlight
any deficiencies in Holmen’s financial
reporting or other possible areas of
↓ Composition of the nomination committee
Before AGM:
Independent of the:
Name
Mats Guldbrand
Fredrik Lundberg
Carl Kempe
Hans Hedström
Representing
2022
L E Lundbergföretagen* x (chairman)
Chairman of the Board
Kempe Foundations*
Carnegie Funds*
x
x
x
2021
x (chairman)
x
x
x
Company
Largest shareholder
(in terms of votes)
Yes
Yes
Yes
Yes
No
No
Yes
Yes
* At 31 August 2021, L E Lundbergföretagen controlled 62.3 per cent of the votes, the Kempe Foundations controlled 17.5 per cent and Carnegie Funds (Sweden) controlled 1.4 per cent.
Holmen Annual Report 2021
41
Corporate governance report
concern and improprieties at the company.
No complaints about deficiencies were
reported through this channel in 2021.
Internal control of financial
reporting
The Board’s responsibility for internal con-
trol and financial reporting is regulated
by the Swedish Companies Act and the
Swedish Corporate Governance Code. Under
this code, the Board is also responsible for
ensuring that the company is managed in a
sustainable and responsible manner. Day-
to-day responsibility for all these matters is
delegated to the CEO.
Purpose and structure. The purpose of
internal control is to ensure that Holmen
achieves its financial reporting objectives
(see below), ensure the company’s assets
are managed according to Group rules and
to prevent irregularities. Group Finance
coordinates and monitors the internal
control process concerning financial
reporting.
This work adheres to guidelines
issued by the Committee of Sponsoring
Organizations of the Treadway Commission
(COSO) in respect of internal control over
financial reporting. The framework com-
prises five basic elements: control environ-
ment, risk assessment, control activities,
information and communication, as well
as monitoring activities and evaluations.
The framework has been modified to suit
the estimated needs of Holmen’s various
operations.
Control environment. The control environ-
ment provides the basis for internal control
of financial reporting and is based in part
on the company’s internal management
processes. The Board of Directors’
procedural rules and the instruction for the
CEO establish the distribution of roles and
responsibilities to ensure effective control
and management of the business’ risks.
Policies, guidelines and instructions
contribute to making individuals aware
of their role in establishing good internal
control. These documents also ensure that
financial reporting complies with the laws
and rules that apply to companies listed on
Nasdaq Stockholm and the local rules in
each country where the company operates.
Risk assessment. Risk assessment
activities aim to identify and evaluate the
risks that can result in the Group’s financial
reporting objectives not being met. The
results of these risk-related activities are
compiled and assessed under the guidance
of Group Finance.
Holmen’s greatest risks regarding finan-
cial reporting are linked to the valuation
of forest assets, pension obligations, pro-
visions and financial transactions. The risk
assessment also involves identifying and
assessing operational risks. For further
information, see the Risk Management
section on pages 43–47.
Control activities. To ensure that Holmen’s
financial reporting objectives are met,
control requirements are incorporated into
the processes that are deemed relevant:
sales, purchasing, investments, personnel,
financial statements, payments and IT.
Control activities aim to prevent, identify
and rectify errors and discrepancies.
Business-specific self-assessments that
are completed by all Group units set out
what control requirements apply for each
respective process and whether or not they
are met.
Information and communication.
Holmen’s financial information provision,
both external and internal, adheres to a
communication policy established by the
CEO. The provision of financial information
for Holmen’s shareholders and other stake-
holders must be accurate, comprehensive,
transparent and consistent, and must take
place on equal terms and at the right time.
Followup and evaluation. Control
activities are assessed regularly to ensure
that they are effective and appropriate. The
results of self-assessments are followed up
on a continual basis and discrepancies are
reported to the Executive Vice President.
The accuracy of self-assessments is
subject to testing.
The reporting of internal control to
Group management takes place once a
year. The company’s auditors report their
observations from the review of internal
control to the audit committee and Board
during the year.
Follow-up is an important tool to identify
possible deficiencies within the Group and
to address these through the development
of new control requirements.
Statement on internal audit. The Board of
Directors does not believe that particular
circumstances in the business or other
conditions exist to justify an internal audit
function. The internal control managed
by the Group, together with the activities
carried out by the external auditors, is
deemed to be sufficient.
↓ Holmen’s financial reporting
External financial reporting must:
• be accurate and complete, and comply with applicable laws, regulations and
recommendations
• provide a true and fair description of the company’s business
• support a reasoned and informed valuation of the business.
Internal financial reporting must also support correct business decisions at all
levels in the Group.
» Sustainability is about balancing several
perspectives – economic, environmental
and social – and succeeding in doing so
over time. It is a core component of our
corporate governance and we were among
the first to integrate the sustainability
report into our annual report.«
Anders Jernhall, Executive Vice President and CFO, Holmen
42
Holmen Annual Report 2021
Corporate governance report
Risk management
The Group’s business and operational risks
are managed by the relevant business
areas, which also take decisions regarding
production, sales and employees with the
aim of generating a lasting good return on
invested capital.
Purchasing and some parts of IT are
managed by Group-wide functions in order
to leverage economies of scale and risks are
handled in line with the Group’s policies.
The Group’s financing and financial risks
are managed by Group Finance based on
a financial policy established by the Board
and that is characterised by a low level of
risk and aims to minimise the Group’s cost
of capital and provide effective control of
the Group’s financial risks.
↓ Operational risks
Risk
Risk management
Comment
Production and deliveries
Demand for Holmen’s products is affected
by many factors, including political and
macroeconomic factors, production by
European manufacturers, changes in imports
to Europe and opportunities for profitably
exporting from Europe. Changes in demand for
Holmen’s products affect the ability to achieve
full production at the Group’s industries and
can lead to lower income. Income may also be
impacted if harvesting from our own forests
needs to be limited as a result of lower demand
and variations in precipitation and wind, which
govern generation from hydro and wind power.
Holmen endeavours to maintain a good cost
position through large-scale production at
well-invested production facilities, efficient
logistics solutions and good control over the
supply of wood. Together with longstanding
customer relationships and strong product
brands, this also increases the ability to
maintain a high level of production amid
more difficult market conditions. Changes
in demand for wood may be met by shifting
harvesting from our own forests from year to
year, while production of hydro power during
the year can be controlled by regulating water
reservoir levels.
In 2021, Holmen increased production of
wood products by 43 per cent as a result of the
acquisition of Martinsons, which occurred in late
2020, and the expansion of Braviken Sawmill.
Towards the end of the year, Holmen’s new
Blåbergsliden Wind Farm gradually began to
generate electricity. At full production, the wind
farm will generate 0.4 TWh annually, which will
increase Holmen’s production of hydro and wind
power by 30 per cent. For information about
how changes in deliveries would affect Holmen’s
operating profit, given the circumstances on
31 December 2021, see the sensitivity analysis
on page 47.
Selling prices
The market balance in each product segment
governs the selling price and affects income.
Raw materials
Wood, electricity and chemicals are the most
significant input goods and price changes affect
profitability. Holmen’s costs depend on the
price trend for input goods, as well as on how
well the Group succeeds in making production
and administration more efficient. There is
a risk that the Group’s costs will increase if
there is a shortage of raw materials, or if prices
increase for input goods.
Holmen has limited possibilities to make
rapid changes to its product range in the
event of changes in price, but it adjusts its
product focus towards those products and
markets deemed to have the best long-term
conditions, and by having a broad customer
base and offering across a number of product
areas. Changes in the price of wood can
be managed to some extent by shifting
harvesting from year to year and changes in
the price of electricity can be managed by
regulating reservoir water levels in order to
shift electricity generation over the year.
Half of the Group’s wood needs are covered
by harvesting from the Group’s own forests,
while the remainder is purchased from private
forest owners. The Group is largely in balance
in terms of pulp as a result of the integrated
production process. The paperboard business
generates almost all the electricity required
at its own mills, while electricity for paper
manufacturing is supplied from external
electricity purchases. The price risk in this
consumption is managed through physical
fixed price contracts and financial hedging.
The Group also sells electricity from its hydro
power and wind power assets to the electricity
grid. The need for thermal energy is great and
is met locally through recycling and production
from residual products. Chemicals are a
signi fi cant input, particularly in paperboard
production, but the need is declining since
used chemicals are being recovered at the
mills.
Prices for wood products increased sharply during
the first half of the year because of strong demand,
but during the second half, prices fell somewhat
when customers phased out their stocks. Paper
prices fell at the turn of the year, 2020/2021, but
capacity reductions and a shortage of recycled
paper and energy caused prices to rise in the
autumn. Paperboard prices rose towards the
end of the year because of strong demand.
Electricity prices rose during the year, but with
great local variations. On average, Holmen’s
electricity price was 50 per cent higher than in
2020. For information about how changes in prices
would affect Holmen’s operating profit, given the
circumstances on 31 December 2021, see the
sensitivity analysis on page 47.
The price of electricity increased sharply in
southern Sweden where the majority of Holmen’s
consumption occurs. The rise in electricity prices
was partially offset by hedges that had been
previously made. Holmen hedges parts of the
consumption by the Paper business area. For 2021,
70 per cent of consumption was hedged. At year-
end, 85 per cent of electricity consumption was
hedged for 2022. For 2023, 65 per cent has been
hedged, while for 2024 the figure is 20 per cent.
As a result of the strong sawmill economy, log
prices rose, while pulpwood prices were stable.
For information about how changes in commodity
prices would affect Holmen’s operating profit, given
the circumstances on 31 December 2021, see the
sensitivity analysis on page 47.
Holmen Annual Report 2021
43
Risk management
Risk
Risk management
Comment
Suppliers
Deficiencies in the supply chain for inputs in
terms of security of supply and quality can
lead to production disruptions. Suppliers that
do not meet Holmen’s requirements can also
have a negative effect on operations. There
is also a risk that essential raw materials are
not delivered because of changes in laws and
regulations or other external factors.
Customer credits
The risk of the Group’s customers being unable
to fulfil their payment obligations constitutes a
credit risk.
Holmen endeavours to have at least two
approved suppliers per area of use. In addition,
Holmen’s Supplier Code of Conduct is included
in all new contracts. It contains requirements
on sustainable development, including by
respecting internationally recognised principles
on anti-corruption measures, human rights,
health and safety and the environment. Since
2017, Holmen has engaged an external party,
EcoVadis, to monitor suppliers regarding their
compliance with the Code. Holmen is subject to
the UK Modern Slavery Act and a report on this
is available at holmen.com. Compliance with
forest management contractor agreements is
ensured through site visits in the forest and
all forest management contractors are trained
in forest management and labour law and are
informed about where to turn if irregularities
should occur.
In 2021, 2 (1) cases regarding breach of the
Supplier Code of Conduct were reported. In the
event of such breaches of the Code, an active
dialogue with an action plan is in place in
accordance with Holmen’s procedures. Suppliers
associated with 85 per cent (90) of the Group’s
purchasing volumes have signed the Supplier
Code of Conduct. Supply chain risks relating to
the climate, environment, labour legislation,
human rights, business ethics and a sustainable
purchasing have been mapped and an action plan
has been formulated. The largest suppliers of
input products are engaged in dialogues regarding
the reduction of fossil emissions. Despite the
challenges associated with the pandemic, Holmen
has been able to maintain its deliveries of essential
raw materials to such an extent that production has
not been negatively impacted.
The risk that the Group’s customers will not
fulfil their payment obligations is limited by
means of creditworthiness checks, credit limits
per customer and, in some cases, by insuring
trade receivables against credit losses. Credit
limits are continually monitored. Exposure to
individual customers is limited.
At 31 December 2021, the Group’s trade receivables
totalled SEK 2 393 million (2 015), of which 34 per
cent (32) were insured against credit losses. During
the year, no credit losses on trade receivables had
an impact on earnings (SEK -14 million). Sales to
the five largest customers accounted for 14 per
cent (15) of the Group’s total sales in 2021.
Facilities
Production equipment can be seriously
damaged, for example, in the event of a fire,
machine breakdown or power outage. This can
lead to supply problems, unexpected costs
and reduced customer confidence. Production
facilities require ongoing maintenance. Major
maintenance shutdowns can entail higher costs
and greater loss of production than planned.
Investments in non-current assets can also be
more expensive than initially planned.
Damage prevention measures, regular
maintenance and continual upgrades can
minimise the risk of damage to facilities.
Training of employees promotes participation,
knowledge and awareness about these risks
and how they can be countered. Holmen
insures its facilities at replacement value and
has insurance against interruptions in the
event of unforeseen events. The Group also
has liability insurance that covers sudden and
unforeseen environmental damage affecting
third parties.
IT systems
Efficient IT support is required to be able to
plan and manage the production and when
handling sales and purchasing. Disruptions
in IT support and unauthorised access to
information can have significant negative
effects on the business.
Forest management
Holmen’s right to manage its own forest is
crucial for maintaining its value. There is a
risk that requirements to allocate areas for
purposes other than forestry could increase in
the future. Such a development could have a
negative impact on the value of Holmen’s forest
assets, and mean that forestry methods may
need to change, which could reduce the harvest
and increase costs.
Damage to forests
Wild game can damage the forest when grazing,
resulting in both deterioration of the quality
of the trees and reduced forest growth. Insect
pests are another risk factor; for example, the
spruce bark beetle can damage spruce forests.
Storm and snow damage, fungal attacks and
forest fires are other examples of damage that
must be addressed and managed in forestry.
Operating disruptions and unauthorised
access are prevented by security measures
and preventive measures in the form of
appropriate physical protection, reliable server
operation and secure networks. Measures
and procedures are in place to minimise the
risk of interruption and to manage situations
if interruptions occur. Holmen is continually
developing protective measures to address
changes in the risk profile.
Land and forest management are regulated
both nationally and at the EU level. In order
to be able to engage in active and sustainable
forestry, it is important that laws and
regulations such as the Environmental Code,
the Forest Inquiry, the EU’s forest strategy
and LULUCF do not restrict the conditions
necessary for sustainable operations. Holmen
participates in national and international
industry organisations to exert an influence
on relevant political and regulatory issues.
Holmen’s forest holdings are scattered across
large parts of Sweden and the risk of extensive
damage occurring simultaneously is considered
to be low, for which reason the Group does not
have insurance cover for its forest holdings.
To reduce the extent of grazing by wild animals,
active efforts are undertaken on Holmen’s land
to maintain game at the correct population
level. Insect pests such as pine weevils are
combatted by waxing seedlings and infested
forest is harvested as soon as possible to
prevent spread.
The turbine in the biofuel boiler at Workington
was damaged at the end of June and was out of
operation for the rest of the year. Paperboard
production was not affected, but energy costs rose
when electricity and gas had to be purchased at
the same time that income from green electricity
certificates was not received during the period
that the turbine was not running, causing costs
to increase by SEK 330 million. The turbine is
expected to be restarted during the first quarter
of 2022. An insurance investigation regarding
the damage is underway. During the year major
maintenance shutdowns were carried out at the
paperboard mills in both Iggesund and Workington,
with an adverse effect on profit of SEK 310 million.
In 2022, a major maintenance shutdown is planned
at Iggesund Mill, which is expected to have a
negative impact on profit of SEK 150 million.
Business operations were not affected by IT
incidents in 2021. A regularly recurring IT security
training course was held for employees during the
year.
During the year, the right to use the forest in line
with Swedish laws and regulations was questioned
within the EU. Holmen has actively participated,
both on its own and through industry organisations,
in the debate to influence the EU position, includ-
ing by elucidating the positive climate effects
associated with a managed forest.
The spruce bark beetle infestation continued in
southern Sweden in 2021. To prevent spread,
Holmen prioritised harvesting spruce bark beetle
infested forests and the percentage of spruce sawn
at Braviken Sawmill was adapted to take care of
the damaged logs.
44
Holmen Annual Report 2021
Risk management Risk
Risk management
Comment
Climate change
The Swedish Meteorological and Hydrological
Institute’s forecasts show that average
temperature, precipitation and soil moisture
will increase in Sweden. A warmer climate
could increase the growth of our northerly
growing forests with a longer growth period,
more precipitation and higher levels of carbon
dioxide in the air, aiding photosynthesis.
It could also affect the ecosystems in that
biological diversity is altered, while the risk of
storm and snow damage, fungal attack, insect
damage and forest fires increases. Climate
change could also impact the ability to carry
out harvesting, for example because of the
increased risk of damage to the land.
Environment and permits
Holmen runs operations that require
environmental permits. The permits specify
conditions regarding permitted production
volumes and permitted emissions to air and
water. Production disruptions can cause
breaches of emissions conditions set for the
business by environmental authorities, which
could impact the environment. In places where
Holmen has conducted industrial operations,
the need for remediation may entail future
costs.
Health and safety
Incidents and accidents at the workplace
have an effect on human life and health. This
could also lead to production disruptions and
increased costs.
Holmen is developing seedlings and processes
for planting, clearing and thinning to adapt
our forests to a changed climate. Seeds for
Holmen’s cultivation of seedlings are selected
to grow and flourish in a changing climate.
When planting, we choose tree species based
on the specific conditions of the soil to ensure
the trees can better withstand extreme weather
such as storms, rain and drought. Since shorter
periods of frozen ground can make harvesting
more difficult in the winter, this work is being
adjusted through planning and by relocating
machines to areas with better conditions.
Ongoing climate risk analyses are conducted to
create healthy, resilient forests suited to a changing
climate. The risk of impact on Holmen’s sites
from climate change is being managed through
Holmen operational continuity planning. Risks
concerning energy consumption and greenhouse gas
emissions are managed through our ISO-certified
environmental and energy management systems.
Demand for Holmen’s products is rising in response
to the market’s ambitions to counteract climate
change, since our customers want renewable
alternatives to fossil-based products.
Environmental measures are organised and
conducted in accordance with Holmen’s
environmental and energy policy. In the event
of process disruptions, the environment
takes precedence over production. Risks
are prevented and managed through regular
own checks, checks by authorities and
environmental risk analyses, as well as
through the use of certified environmental
and energy management systems and chain-
of-custody certification. In consultation
with the authorities, Holmen is conducting
investigations to assess the need for
remediation at former industrial sites.
In 2021, 53 (37) environmentally related incidents
were reported to the supervisory authorities.
One of the nonconformities was of a significant
nature in terms of impact on results and was due
to a turbine breakdown in Workington. Corrective
measures were taken to deal with these cases, in
line with the environmental management system of
the operations concerned.
Good health and safety is a priority at all
levels of management in the Group. Certified
management systems, Group-wide targets
relating to work accidents, continual training
of personnel to increase risk awareness,
procedures for risk observation and incident
and accident reporting, and risk assessment of
tasks and work by contractors are examples of
activities to achieve a high level of safety in the
workplace.
In 2021, the rate of industrial accidents was 5.6
per 1 million hours worked (4.3). See also page
37. The most common accidents were slips, trips
and crush injuries. The most significant areas
of risk involve work with overhead cranes and
vehicles with people in movement. As a result
of the coronavirus pandemic, a large number of
adaptations and measures were implemented to
ensure a safe work environment for employees and
others present in the operation.
Talent management
Skilled and motivated employees are key to
being able to conduct long-term business
operations with good profitability. Retirements
increase the need to attract new personnel,
which can be challenging.
With Holmen’s employer brand, Holmen is
being marketed as an employer in digital
channels and physical meetings. A strong
Employer Value Proposition (EVP) featuring
Holmen’s sustainable business and the small
big company is the prominent message.
Business ethics risks
Nationally and internationally, customers
and partners place requirements on Holmen
as a stable and reliable supplier that has
good business ethics and clear sustainability
principles. Deviations from principles and
policies could have a negative impact on
reputation and business relationships.
International, political and legal risks
Holmen is active in a global market and sells
products to many countries around the world.
Because of this geographical spread, Holmen
is exposed to political risks, conflicts, natural
disasters, epidemics and pandemics. Moreover,
Holmen is obligated to comply with laws and
regulations where Holmen conducts business,
including in areas such as the environment,
real estate, labour law and taxation. Changes
in laws and regulations may affect conditions
for Holmen’s operations and lead to increased
costs for regulatory compliance.
Holmen’s Code of Conduct, business ethics
policy and associated guidelines provide clear
guidance on how to maintain good business
ethics when dealing with external contacts in
various markets. Holmen’s Code of Conduct
also provides guidance on human rights,
workers’ rights and the environment. These
areas are clarified in Holmen’s policies and
related guidelines. Managers and employees
in sales, marketing, purchasing, finance, HR,
information, market communication, projects
and Group staffs have all received training in
all aspects of Holmen’s Code of Conduct.
Holmen participates in national and
international industry organisations whose
purpose is to handle the monitoring of social
trends, advocacy and put forward Holmen’s
position and view on relevant political and
regulatory issues. Contact is established with
local representatives and the general public
in areas where the Group has operations.
This takes place, for example, through
consultation and information meetings and
through meetings with decision-makers. More
unpredictable risks that may arise, such as
shutdowns as a result of disease outbreaks
or political unrest, are managed through
ongoing external monitoring, close dialogue
and coordination with industry organisations
to maintain the best possible preparedness.
Employer branding efforts in digital channels at
the Group level, combined with local efforts at
our operating sites, provide a good foundation for
an inflow of interested applicants to our vacant
positions. The voluntary employee turnover
is stable and annual surveys show that new
employees appreciate Holmen as an employer,
both the culture and the job opportunities. During
the year, managers were trained in skills-based
recruitment in order to increase the precision of
recruitment and to increase diversity.
No identified or reported cases concerning
deviations from the business ethics policy or the
parts of the Code of Conduct or Supplier Code of
Conduct regarding business ethics issues were
reported in 2021. In 2020 and 2021, 86 per
cent of office workers and managers completed
the training on the Code of Conduct. See also
page 37. During the year Holmen, updated the
whistleblower policy in line with the new law to
protect people who report misconduct. We had
no lawsuits during the year regarding corruption
against the organisation or its employees.
Holmen worked continually in 2021 to take
action to minimise the impact of the coronavirus
pandemic, with a focus on the health and safety of
our employees. Holmen has been active through
dialogue, consultation responses, preparedness
and advocacy work, on its own and together with
industry organisations, to promote the growth of
bio-based and fossil-free activities.
Holmen Annual Report 2021
45
Risk management ↓ Financial risks
Risk
Risk management
Comment
Currency
The Group’s earnings are affected by fluctua-
tions in exchange rates. Transaction exposure
risk arises due to a significant portion of
the Group’s sales income being in different
currencies from costs. The translation exposure
risk arises from the translation of foreign
subsidiaries’ assets, liabilities and earnings
into Swedish kronor.
For the next two years, expected flows in EUR/SEK
are hedged at an average of 10.49. For other
currencies, 4–10 months of flows are hedged.
Hedging of exposure to pounds sterling amounted
to GBP 34 million at year-end. Net assets in other
currencies are limited and are not usually hedged.
Transaction exposure. In order to reduce
the impact on profit from changes in exchange
rates, net flows are hedged using forward
foreign exchange contracts. Net flows in euros,
US dollars and pounds sterling for the coming
four months are always hedged. These nor-
mally correspond to trade receivables and
outstanding orders. The Board can decide to
hedge flows for a longer period if this is deemed
suitable in light of the products’ profitability,
competitiveness and the currency situation.
Currency exposure arising when investments
are paid for in foreign currency is distinguished
from other transaction exposure. Normally,
90–100 per cent of the currency exposure
associated with major investments is hedged.
Translation exposure. Hedging exposure
that arises when subsidiaries’ assets and
liabilities are translated into Swedish kronor
(known as equity hedging) is assessed on a
case-by-case basis and is arranged based on
the value of net assets upon consolidation. The
Group’s non-current assets are mainly Swedish,
with the exception of the paperboard mill in the
UK, which accounts for 2 per cent of the assets.
The hedges take the form of foreign currency
loans or forward foreign exchange contracts.
Exposure that arises when the earnings of
foreign subsidiaries are translated into Swedish
kronor is not normally hedged.
SEKm
9 000
6 000
3 000
0
EUR/SEK
GBP/SEK
USD/SEK
EUR/GBP
CNH/SEK
Net flow 12 months
Hedged
Interest rates
Changes in market interest rates affect the
Group’s cost of borrowing.
Credit risk from financial counterparties
The risk of financial transactions giving
rise to credit risks in relation to financial
counterparties.
The fixed rate period for the Group’s net finan-
cial debt varies over time and is decided by the
Board of Directors. To limit the effects of a rise
in interest rates, the interest rate on loans may
be fixed, or an interest rate swap agreement
may be entered into without changing the
interest rate on the underlying loan.
The Group’s average borrowing rate in 2021 was
1.2 per cent.
In 2021 interest on loans of SEK 500 million
was fixed for 5 years. The table below shows the
Group’s fixed interest rate period by currency.
SEKm
<1 year
1–3
years
3–5
years
>5
years
Pension
obligatioins
Right-of-use
agreement
Total
SEK
-1 118
-1 000
-1 400
EUR
GBP
Other items
121
-492
56
-
-
-
-
-
-
-1 433 -1 000 -1 400
-
-
-
-
-
-16
-8
0
-
-24
-159
-3 693
-74
-6
-5
39
-498
51
-244
-4 101
At 31 December 2021, the Group had out-
standing derivative contracts with a nominal
amount of SEK 18 billion and a net fair value of
SEK 946 million. The credit risk associated with
outstanding derivative contracts is judged to be
negligible.
The creditworthiness of Holmen’s financial
counterparties is assessed using reputable
credit rating agencies or, where a counterparty
has no credit rating, the company’s own
analyses. A maximum credit risk and settle-
ment risk are established for each financial
counterparty and are monitored continually.
This calculation is based on the maturity
and historical volatility of different types of
derivatives. For cash and cash equivalents
and current investments, the maximum credit
risk is assessed to correspond to the nominal
amount.
46
Holmen Annual Report 2021
Risk management
Risk
Risk management
Comment
Liquidity and refinancing
The risk of the need for future funding and
refinancing of maturing loans being required
at a high cost.
Holmen’s strategy is to have a strong
financial position in order to secure room
for manoeuvre when making long-term
commercial decisions. The target is for net
financial debt not to exceed 25 per cent of
equity. Holmen’s financing mainly comprises
bonds and the issue of commercial paper.
Holmen reduces the risk of future funding
becoming difficult or expensive by using long-
term contractually agreed credit facilities.
The Group plans its financing by forecasting
financing needs over the coming years based
on the Group’s budget and profit forecasts
that are regularly updated.
The financial position is strong, with net financial
debt at 31 December 2021 amounting to
SEK 4 101 million. Of these financial liabilities,
SEK 736 million falls due in 2022.
The Group has unutilised committed credit
facilities of SEK 5 billion, of which SEK 1 billion
matures in 2025 and SEK 4 billion in 2027. Both
facilities include a limit stipulating that they cannot
be used if net liability in relation to equity exceeds
125 per cent. At year-end, the Group’s net liability
in relation to equity was 9 per cent.
SEKm
5 000
4 000
3 000
2 000
1 000
0
2022
2023
2024
2025
≥ 2026
Financial liabilities
Credit facility
↓ Sensitivity analysis
Operational risks
A 1 per cent change in deliveries and price of
the Group’s products or significant input goods
is deemed to affect Group operating profit as
per the table to the right.
Earnings are relatively evenly spread over the
year. The clearest seasonal effects are lower
personnel costs in the third quarter and the fact
that electricity production at the hydro power
plants is normally higher in the first and fourth
quarters.
Sale
Paperboard
Paper
Wood Products
Wood from company forests
Hydro and wind power
Input goods
Wood
Electricity*
Chemicals
Other variable costs
Delivery costs
Employees
Other fixed costs
Change
+/-1%
+/-1%
+/-1%
+/-1%
+/-1%
Change
+/-1%
+/-1%
+/-1%
+/-1%
+/-1%
+/-1%
+/-1%
Impact on operating profit, SEKm
Price
Deliveries
28
15
26
9
3
61
54
49
14
5
Price
38
5
13
8
18
27
14
* Taking electricity price hedges for 2022 into account. Without taking hedges into account, the corresponding
figure would be SEK 23 million.
Financial risks
The table to the right shows the extent of the
impact from a change in the Swedish krona,
the price of electricity and the market interest
rate on Group profit before tax and equity next
year, taking account of hedging. The adopted
change is calculated based on five years’
average historical volatility for each instrument,
which is deemed a reasonable change going
forward. Historical volatility on exchange rates
is calculated based on average annual volatility
on the KIX, the Riksbank’s exchange rate index.
Excluding hedging, a 5 per cent change in the
krona would affect earnings before tax by
SEK 480 million a year.
Earnings before tax*
Exchange rates
EUR/SEK
USD/SEK
GBP/SEK
other currencies/SEK
Borrowing rate
Equity
Transaction hedging
Investment hedging
Equity hedging
Electricity price hedging
Interest rate changes
Change
+/-5%
+/-5%
+/-5%
+/-5%
+/-5%
+/-0.5% unit
Change
+/-5%
+/-5%
+/-5%
+/-50%
+/-0.5% unit
*Estimated effect for 2022 including hedging.
SEKm
165
45
14
59
47
7
SEKm
556
14
21
1 282
7
Holmen Annual Report 2021
47
Risk management shaReholdeR infoRmation
Holmen’s two classes of shares
are listed on Nasdaq Stockholm,
Large Cap. Over the past five
years, Holmen’s total shareholder
return (dividend paid and share
price performance) has been 203
per cent, compared with 87 per
cent for OMX Stockholm 30. For
Holmen, this corresponds to an
annual return of 25 per cent. At the
same time, the number of owners
has increased by 20 000 to just
over 48 000.
Stock exchange trading
Holmen was listed on the Stockholm Stock
Exchange in 1936, but was called Mo och
Domsjö AB at that time. Holmen’s two
classes of shares are currently listed on
Nasdaq Stockholm, Large Cap. At the end
of 2021 Holmen A was trading at SEK 448
(415) and Holmen B at SEK 435 (394),
corresponding to a market capitalisation
of SEK 71.0 billion (64.7). The highest
closing price for Holmen’s class B shares
was SEK 469, on 10 August. The lowest
closing price was SEK 365, on 23 February.
The daily average number of class B shares
traded was 510 000, which corresponds to
a value of SEK 204 million. The daily average
number of class A shares traded was 1 140.
Almost 40 per cent of trading took place on
Nasdaq Stockholm. Holmen shares have
also been traded on other trading platforms,
such as Cboe BXE, LSE and CEUX.
Dividend
Decisions on dividends are based on an
appraisal of the Group’s profitability, future
investment plans and financial position.
The Board proposes that the AGM to be
held on 30 March 2022 approve a dividend
of SEK 7.5 per share and an extra dividend
of SEK 4.0 per share.
Share structure
Holmen has 161 925 685 shares
outstanding, of which 45 246 468 are
class A shares and 116 679 217 are
class B shares. The company also has
586 639 repurchased class B shares held
in treasury. Each class A share carries
10 votes, and each class B share one
vote. In other respects, the shares carry
the same rights. Neither laws nor the
company’s articles of association place
any restrictions on the transferability of
the shares.
Share savings programme
The 2019 AGM approved a targeted share
savings programme for key individuals
in the Group. The programme expires in
April 2022 and the Board of Directors
has proposed that the 2022 AGM take a
decision on a new, similar programme.
The aim of the programme is to strengthen
common interests between shareholders
and company management, as well as to
create a long-term commitment to Holmen.
More information about the current share
savings programme can be found in Note 4.
Share buy-backs
The 2021 AGM renewed the authorisation
for the Board to be able to take decisions
to purchase up to 10 per cent of the
company’s shares. No buy-backs took
place during the period. The company
already owns 0.3 per cent of all shares
outstanding. The Board proposes that
the 2022 AGM approve corresponding
authorisation for the Board.
Ownership structure
Holmen had a total of 48 126 shareholders
at year-end 2021. In terms of numbers,
Swedish private individuals account for
the largest owner category with 45 729
shareholders. Shareholders registered in
Sweden own 81 per cent (82) of the share
capital. Among foreign shareholders, the
largest proportion of shares are held in the
US and Norway, accounting for 6 per cent
and 4 per cent of capital, respectively. The
largest owner at the turn of 2021/2022,
with 62.3 per cent of votes and 34.1 per
cent of capital, was L E Lundbergföretagen
AB.
Shareholder communication
Information about the company is available
at the holmen.com website, including
financial information in the form of reports,
presentations and financial data, as well
as the performance of Holmen shares and
contact information.
Shareholder categories
Share of capital, %
2
19
12
16
52
Swedish institutions
Swedish equity funds
Swedish private individuals
Foreign shareholders
52%
16%
12%
19%
Share price performance,
Holmen class B and OMX Stockholm
Total shareholder return Holmen B and OMX Stockholm
Including reinvested dividend without tax
Index
400
300
200
100
0
Number of shares (thousand)
4 000
3 000
2 000
1 000
17
18
19
20
21 Jan 22
0
Index
700
600
500
400
300
200
100
0
12
13
14
15
16
17
18
19
20
21
Jan 22
Holmen B
Total number of class B shares traded (thousands)
OMX Stockholm 30 (OMXS30)
Holmen B
Source: Macrobond
OMX Stockholm 30 (OMXS30)
48
Holmen Annual Report 2021
Shareholder information
Earnings per share, 2021
Proposed dividend per share, 2021
SEK 18.5
SEK 7.5 +
SEK 4.0
Annual return at 31 Dec 2021*, %
1 year
3 years
5 years
10 years
Holmen B
OMX Stockholm 30
*Including reinvested dividend.
13
33
39
23
25
13
20
13
Holmen’s total shareholder return has averaged 20 per cent a year over the past 10 years, which is 7 percentage
points better than the OMX Stockholm 30.
Share capital structure
Equities
Votes No. of shares No. of votes Quotient
value
SEKm
A
B
Total no. of shares
Holding of repurchased class B shares
10
1
45 246 468
117 265 856
162 512 324
-586 639
452 464 680
117 265 856
569 730 536
-586 639
Total shares outstanding
161 925 685 569 143 897
26 1 180
26 3 058
4 238
Changes in share capital 2000–2021
Change
in no. of
shares
Total no.
of shares
Change
in share
capital
Total share
capital,
SEKm
2001 Cancellation of shares repurchased
2004 Conversion and subscription
2018 Share split
2020 Cancellation of shares repurchased
-8 885 827
4 783 711
84 756 162
-7 000 000
79 972 451
84 756 162
169 512 324
162 512 324
-444
239
-
-
3 999
4 238
4 238
4 238
Ownership structure*
31 Dec 2021
% of
capital
% of
votes
L E Lundbergföretagen
Kempe Foundations
Carnegie Funds (Sweden)
SEB Funds
Norges Bank
Nordea Funds
Swedbank Robur Funds
Alecta
Vanguard (US)
BlackRock
Total
Other
Total
Of which non-Swedish
shareholders
34.1
7.4
5.1
4.1
3.1
2.6
2.5
2.3
1.8
1.5
62.3
17.5
1.4
1.2
0.9
0.7
0.7
0.7
0.5
0.4
64.4
86.3
35.6
13.7
100.0
19.3
100.0
5.7
* Calculated based on the total number of shares
outstanding. The 10 identified shareholders with
the largest holdings in terms of capital. Some large
shareholders may have their holdings registered
under nominee names, in which case they are
included among ‘Other shareholders’.
Shareholder statistics at 31 Dec 2021
Holding classes,
no. of shares
No. of
shareholders
Share of
capital, %
1−1 000
1 001−100 000
100 001−
Total
44 221
3 834
71
48 126
4
11
85
100
Data per share (adjusted for the 2:1 share split in 2018)
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
Diluted earnings per share, SEK1)
18.5
12.2
52.6
13.5
9.9
8.5
3.3
5.4
4.3
11.1
Dividend, SEK
Ordinary dividend, SEK
Extra dividend, SEK
Total dividend in % of:
Equity
Closing market price
Profit/loss for the year
Return, equity, %1)
Return, capital employed, %1) 3)
Equity per share, SEK
Closing market price, B, SEK
Average listed price for year, B, SEK
Highest market price for year, B, SEK
Lowest market price for year, B, SEK
7.52)
4.02)
7.25
3.5
4.0
2.6
62
7
9
290
435
404
469
365
4.1
2.7
88
5
6
263
394
310
396
228
3.5
-
1.4
1.2
6
35
9
238
285
220
297
172
6.75
-
4.8
3.9
50
10
10
140
175
213
240
175
6.5
-
5.0
3.0
65
8
9
131
218
186
218
157
6
-
4.7
3.7
71
7
9
127
164
141
163
114
5.5
-
4.2
4.0
158
3
6
124
131
132
153
110
5
-
4.0
3.8
93
4
6
125
133
118
136
105
4.5
-
3.6
3.8
106
3
4
124
117
99
118
87
Total closing market capitalisation, ’000 SEKm
71.0
64.7
46.6
29.5
36.6
27.4
22.3
22.3
19.7
P/E ratio4)
EV/EBITDA3) 5)
23
14
32
19
5
14
13
9
22
13
19
10
39
11
25
9
28
10
4.5
-
3.6
4.7
41
9
7
124
96
93
102
85
16.2
9
8
Closing beta value (48 months), B, at year-end6)
0.78
0.77
0.77
0.74
0.74
0.72
0.68
0.71
0.67
0.67
Number of shareholders at year-end
48 126 48 104 38 904 33 573 30 903 28 159 28 176 27 788 27 692 28 440
1) See page 98: Definitions and glossary. 2) Board proposal. 3) Excl. items affecting comparability. 4) Closing market price divided by diluted earnings per share.
5) Market capitalisation plus net financial debt at year-end (EV) divided by EBITDA. 6) Measures the sensitivity of the yield on class B shares in relation to the yield on the
OMX 30 Stockholm over a period of 48 months.
Holmen Annual Report 2021
49
Shareholder information
Financial
statements
Income statement, SEKm
Net sales
Other operating income
Change in inventories
Raw materials and consumables
Personnel costs
Other operating costs
Change in value of biological assets
Depreciation and amortisation according to plan
Profit/loss from investments in associates and joint ventures
Operating profit
Financial income
Financial costs
Earnings before tax
Tax
Profit/loss for the year
Attributable to:
Owners of the parent company
Earnings per share (SEK)
basic
diluted
Average number of shares (million)
basic
diluted
Note
2
3
4
5
9
10, 11, 12
13
6
6
7
8
8
2021
19 479
1 690
1
-10 110
-2 720
-3 814
464
-1 261
0
3 731
9
-48
3 691
-688
3 004
2020
16 327
1 339
-88
-8 781
-2 411
-3 310
579
-1 172
-6
2 479
11
-53
2 437
-458
1 979
3 004
1 979
18.5
18.5
161.9
161.9
12.2
12.2
161.9
161.9
Operating profit for 2021 amounted to SEK 3 731 million (2 479). Profit was
positively affected by higher prices for wood products and the expansion of the
wood products business.
Net financial items totalled SEK -39 million (-42). Net debt totalled
SEK 4 101 million (4 181) at year-end.
Tax recognised totalled SEK -688 million (-458), corresponding to
19 per cent (19) of profit before tax.
Statement of comprehensive income, SEKm
Note
2021
Profit/loss for the year
Other comprehensive income
Revaluation of forest land
Revaluation of defined benefit pension plans
Tax attributable to items that will not be reclassified to profit/loss for the year
Total items that will not be reclassified to profit/loss for the year
Cash flow hedges
Revaluation
Transferred from equity to the income statement
Transferred from equity to non-current assets
Translation difference on foreign operations
Hedging of currency risk in foreign operations
Share in joint ventures’ other comprehensive income
Tax attributable to items that will be reclassified to profit/loss for the year
Total items that will be reclassified to profit/loss for the year
Total other comprehensive income after tax
Total comprehensive income
Attributable to:
Owners of the parent company
50
Holmen Annual Report 2021
9
18
7
13
7
3 004
3 345
-12
-683
2 650
182
349
-27
180
-39
3
-97
551
3 201
6 204
2020
1 979
1 173
-15
-239
920
380
-105
-2
-187
29
16
-61
69
989
2 968
6 204
2 968
GroupFinancial statements Balance sheet at 31 December, SEKm
Note
2021
2020
Non-current assets
Forest assets
Biological assets
Forest land
Non-current intangible assets
Property, plant and equipment
Right-of-use assets
Investments in associates and joint ventures
Other shares and participations
Non-current financial receivables
Deferred tax assets
Total non-current assets
Current assets
Inventories
Trade receivables
Current tax receivables
Other operating receivables
Current financial receivables
Cash and cash equivalents
Total current assets
Total assets
Equity
Share capital
Other contributed capital
Reserves
Retained earnings including profit/loss for the year
Total equity attributable to owners of the parent company
Non-current liabilities
Non-current financial liabilities
Non-current liabilities relating to right-of-use assets
Pension obligations
Non-current provisions
Deferred tax liabilities
Total non-current liabilities
Current liabilities
Current financial liabilities
Current liabilities relating to right-of-use assets
Trade payables
Current tax liabilities
Current provisions
Other operating liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
9
9
10
11
12
13
13
14
7
15
16
8
16
14
14
14
18
19
7
14
20
7
19
20
29 204
17 876
539
9 711
240
1 756
2
268
3
59 598
3 818
2 393
70
1 676
39
507
8 503
28 663
14 538
555
9 226
284
1 717
2
290
1
55 276
3 594
2 015
6
1 262
43
346
7 267
68 101
62 543
4 238
281
14 748
27 725
46 992
3 911
173
24
409
11 610
16 127
736
71
2 836
80
-
1 259
4 982
21 109
68 101
4 238
281
11 541
26 457
42 516
3 919
175
48
491
10 570
15 203
605
112
2 496
211
163
1 235
4 824
20 026
62 543
Holmen Annual Report 2021
51
GroupFinancial statements Reserves
Translation
reserve
Hedge
reserve
Revaluation
reserve
Retained earnings
incl. profit/loss
for the year
Total
equity
25 052
1 979
40 111
1 979
-
-15
-
-
-
-
3
-12
1 967
-567
175
-175
2
1 173
-15
273
-187
29
16
-300
989
2 968
-567
-
-
2
26 457
3 004
42 516
3 004
-
-12
-
-
-
-
6
-6
2 997
-1 741
12
3 345
-12
504
180
-39
3
-780
3 201
6 204
-1 741
12
10 366
-
1 173
-
-
-
-
-
-242
932
932
-
-
-
-
11 297
-
3 345
-
-
-
-
-
-689
2 656
2 656
-
-
13 953
27 725
46 992
92
-
-
-
-
-187
29
-
-6
-165
-165
-
-
-
-
-73
-
-
-
-
180
-39
-
8
149
149
-
-
76
83
-
-
-
273
-
-
16
-55
234
234
-
-
-
-
316
-
-
-
504
-
-
3
-105
402
402
-
-
718
Changes in equity, SEKm
Opening equity balance 1 Jan 2020
Profit/loss for the year
Other comprehensive income
Revaluation of forest land
Revaluation of defined benefit pension plans
Cash flow hedges
Translation difference on foreign operations
Hedging of currency risk in foreign operations
Share in joint ventures’ other comprehensive income
Tax attributable to other comprehensive income
Total other comprehensive income
Total comprehensive income
Dividend paid
Cancellation of treasury shares
Bonus issue
Share savings programme
Closing equity balance 31 Dec 2020
Profit/loss for the year
Other comprehensive income
Revaluation of forest land
Revaluation of defined benefit pension plans
Cash flow hedges
Translation difference on foreign operations
Hedging of currency risk in foreign operations
Share in joint ventures’ other comprehensive income
Tax attributable to other comprehensive income
Total other comprehensive income
Total comprehensive income
Dividend paid
Share savings programme
Other
contributed
capital
Share
capital
4 238
-
281
-
-
-
-
-
-
-
-
-
-
-
-175
175
-
4 238
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
281
-
-
-
-
-
-
-
-
-
-
-
-
Closing equity balance 31 Dec 2021
4 238
281
52
Holmen Annual Report 2021
GroupFinancial statements Cash flow statement, SEKm
Operating activities
Earnings before tax
Adjustments for non-cash items
Depreciation and amortisation according to plan
Change in value of biological assets
Change in provisions
Other*
Income tax paid
Cash flow from operating activities before changes in working capital
Cash flow from changes in working capital
Change in inventories
Change in trade receivables and other operating receivables
Change in trade payables and other operating liabilities
Cash flow from operating activities
Investing activities
Acquisition of property, plant and equipment
Disposal of property, plant and equipment
Acquisition of non-current intangible assets
Investments in and acquisition of biological assets
Disposal of biological assets
Acquisition of shares and participations
Repayment of non-current financial receivables
Cash flow from investing activities
Financing activities
Raised long-term borrowings
Change in current financial liabilities
Repayment of debt related to right-of-use assets
Change in current financial receivables
Dividend paid to owners of the parent company
Cash flow from financing activities
Cash flow for the year
Cash and cash equivalents at beginning of year
Exchange difference on cash and cash equivalents
Cash and cash equivalents at end of year
Note
2021
2020
25
25
25
3 691
1 261
-464
-187
-263
-662
3 375
-236
-156
247
3 229
-1 534
19
-13
-166
424
-63
25
-1 307
500
-411
-110
-3
-1 741
-1 764
158
346
2
507
2 437
1 172
-579
-95
46
-569
2 411
195
-44
-105
2 457
-1 032
12
-7
-128
69
-839
141
-1 783
1 900
-2 049
-95
3
-567
-808
-133
483
-4
346
*Otheradjustmentsprimarilyconsistofforeignexchangeeffectsandthemarkingtomarketoffinancialinstruments,profitfromassociates,aswellasgains/losseson
sale of non-current assets.
Change in net financial debt, SEKm
Opening net financial debt
Business combinations
Cash flow
Operating activities
Investing activities (excl. non-current financial receivables)
Dividend paid
Liabilities arising from new right-of-use agreements
Revaluation of defined benefit pension plans
Foreign exchange effects and changes in fair value
Closing net financial debt
2021
-4 181
-
3 229
-1 332
-1 741
-67
17
-27
-4 101
2020
-3 784
-187
2 457
-1 924
-567
-163
-15
1
-4 181
Holmen Annual Report 2021
53
GroupFinancial statements Income statement, SEKm Note 2021
2020
Cash flow statement, SEKm Note 2021 2020
Net sales
Other operating income
Change in inventories
Raw materials and consumables
Personnel costs
Other external costs
Depreciation and amortisation
according to plan
Operating profit
Profit/loss from investments in
Group companies
Interest income and similar income
Interest expense and similar costs
Profit/loss after financial items
Appropriations
Earnings before tax
Tax
Profit/loss for the year
2
3
4
5
10, 11
6, 23
6
6
24
7
18 186
921
35
-10 127
-2 078
-5 428
-51
1 458
380
26
-90
1 774
768
2 541
-451
2 090
14 187
690
-119
-7 285
-1 942
-5 150
-48
332
199
24
-23
531
1 804
2 336
-417
1 919
Statement of
comprehensive income,
SEKm
Profit/loss for the year
Other comprehensive income
Cash flow hedges
Revaluation
Transferred from equity to the
income statement
Transferred from equity to
non-current assets
Tax attributable to other
comprehensive income
Total items that will be reclassified
to profit/loss for the year
Note 2021
2020
2 090
1 919
204
329
-27
-104
401
372
-97
-2
-55
218
7
Total comprehensive income
2 491
2 137
The parent company includes Holmen’s Swedish operations, with the exception
of the majority of the non-current assets, as well as certain parts of the operation
that was taken over on 1 October 2020 in conjunction with the acquisition of
Martinsons, which are recognised in other companies in the Group.
Profit after net financial items includes the result from hedging equity in foreign
subsidiaries of SEK -39 million (29).
Operating activities
Profit/loss after financial items
Adjustments for non-cash items
Depreciation and amortisation
according to plan
Impairment losses
Change in provisions
Other*
Income tax paid
Cash flow from operating activities
before changes in working capital
Cash flow from changes in
working capital
Change in inventories
Change in operating receivables
Change in operating liabilities
Cash flow from operating activities
Investing activities
Acquisition of property, plant and
equipment
Disposal of property, plant and equipment
Repayment of non-current financial
receivables
Acquisition of shares and participations
Cash flow from investing activities
Financing activities
Raised long-term borrowings
Change in other financial liabilities
Change in other financial receivables
Dividend paid to owners of the
parent company
Group contributions received
Group contributions paid
Cash flow from financing activities
Cash flow for the year
Cash and cash equivalents at beginning of
year
Cash and cash equivalents at end of year
25
1 774
531
51
2
-145
75
-618
48
95
-50
22
-440
1 139
206
-250
-641
622
870
-92
10
25
-39
-95
187
96
-171
319
-72
6
141
-918
-842
500
-303
-286
1 900
-1 941
-1 549
-1 741
1 495
-230
-565
-567
2 513
-1
355
209
-168
236
445
403
236
* Other adjustments primarily consist of foreign exchange effect and the marking to
marketoffinancialinstrumentsandgains/lossesonthesaleofnon-currentassets.
54
Holmen Annual Report 2021
Parent companyFinancial statements Balance sheet at
31 December, SEKm
Non-current assets
Non-current intangible assets
Property, plant and equipment
Non-current financial assets
Shares and participations
Non-current financial receivables
Total non-current assets
Current assets
Inventories
Operating receivables
Current tax receivables
Current investments
Cash and cash equivalents
Total current assets
Total assets
Note 2021
2020
Balance sheet at
31 December, SEKm
Note 2021
2020
10
11
13, 23
14
13
3 075
17
3 038
11 634
4 176
11 597
3 467
18 898
18 119
15
16
7
14
14
2 886
3 616
39
39
445
7 025
2 659
2 442
-
43
236
5 379
Equity
Restricted equity
Share capital
Statutory reserve
Revaluation reserve
Non-restricted equity
Retained earnings incl. hedge reserve
Profit/loss for the year
Total equity
Untaxed reserves
Provisions
Pension obligations
Provisions
Deferred tax liabilities
25 923
23 498
Total provisions
Liabilities
Non-current financial liabilities
Current financial liabilities
Current tax liabilities
Operating liabilities
Total liabilities
17
24
18
19
7
14
14
7
20
4 238
1 577
100
4 986
2 090
4 238
1 577
100
4 394
1 919
12 990
12 228
2 852
2 354
0
599
787
4
744
657
1 386
1 405
4 513
736
-
3 446
8 695
4 083
514
145
2 769
7 511
Total equity and liabilities
25 923
23 498
Restricted equity
Statutory
reserve
Share
capital
Non-restricted equity
Revaluation
reserve
Hedge
reserve
Retained
earnings
Profit/loss
for the year
Total equity
Changes in equity, SEKm
Opening equity balance 1 Jan 2020
Appropriation of profits
Profit/loss for the year
Other comprehensive income
Cash flow hedges
Tax on other comprehensive income
Total other comprehensive income
Total comprehensive income
Dividend paid
Cancellation of treasury shares
Bonus issue
Share savings programme
Closing equity balance 31 Dec 2020
Appropriation of profits
Profit/loss for the year
Other comprehensive income
Cash flow hedges
Tax on other comprehensive income
Total other comprehensive income
Total comprehensive income
Dividend paid
Share savings programme
4 238
-
-
-
-
-
-
-
-175
175
-
4 238
-
-
-
-
-
-
-
-
1 577
-
-
-
-
-
-
-
-
-
-
1 577
-
-
-
-
-
-
-
-
100
-
-
-
-
-
-
-
-
-
-
100
-
-
-
-
-
-
-
-
Closing equity balance 31 Dec 2021
4 238
1 577
100
135
-
-
272
-55
218
218
-
-
-
-
353
-
-
505
-104
401
401
-
-
754
2 759
1 847
-
-
-
-
1 847
-567
175
-175
2
4 042
1 919
-
-
-
-
1 919
-1 741
12
4 232
1 847
-1 847
1 919
-
-
-
72
-
-
-
-
1 919
-1 919
2 090
-
-
-
171
-
-
2 090
10 656
-
1 919
272
-55
218
2 137
-567
-
-
2
12 228
-
2 090
505
-104
401
2 491
-1 741
12
12 990
Holmen Annual Report 2021
55
Parent companyFinancial statements Notes to the
fiNaNcial statemeNts
Amounts in SEKm, unless otherwise stated
1. Accounting policies
2. Operating segment reporting
3. Other operating income
4.
Employees, personnel costs and remuneration to
senior management
5. Auditors’ fee and remuneration
6. Net financial items and income from financial instruments
7. Tax
8. Earnings per share
9. Forest assets
10. Non-current intangible assets
11. Property, plant and equipment
12. Right-of-use assets (leases)
13. Investments in associates, joint ventures and other shares
and participations
56
14. Financial instruments
61
15. Inventories
62
16. Operating receivables
17. Equity, parent company
18. Pension obligations
19. Provisions
20. Operating liabilities
21. Collateral and contingent liabilities
22. Related parties
23. Investments in Group companies
24. Untaxed reserves
25. Cash flow statement
26. Business combinations
27. Critical accounting estimates and judgements
63
64
64
65
66
67
69
70
71
72
73
76
76
76
77
78
78
78
79
80
81
81
82
82
Note 1. Accounting policies
The accounting policies for the Group presented below have been applied
consistently to all periods included in the Group’s financial statements except
where otherwise stated below. The Group’s accounting policies have been
applied consistently to the reporting and the consolidation of the parent
company, subsidiaries, associates and joint ventures.
Compliance with standards and statutory requirements
The consolidated accounts are prepared in accordance with International Financial
Reporting Standards (IFRSs) issued by the International Accounting Standards
Board (IASB), as adopted by the EU. The Swedish Financial Reporting Board’s
recommendation (RFR 1 Supplementary Accounting Rules for Groups) has also
been applied.
The parent company applies the same accounting policies as the Group except
in the cases that are commented on separately under each section. The parent
company’s accounts are prepared in accordance with RFR 2 Accounting for Legal
Entities. The differences between the policies applied by the parent company and
those applied by the Group are due to restrictions in the parent company’s ability
to apply IFRS as a consequence of the Swedish Annual Accounts Act, the Swedish
Pension Obligations Vesting Act, and in some cases for tax reasons.
Valuation principles applied in preparing the financial
statements of the parent company and the Group
Assets and liabilities are stated at cost, except for biological assets and forest land,
as well as certain financial assets and liabilities, which are measured at fair value.
In the parent company, biological assets and forest land are not valued at fair value.
Investments in Group companies and associates are recognised in the parent
company at the lower of cost and fair value.
Functional currency and reporting currency
The functional currency is the currency used in the primary financial environments
in which the companies conduct their business. The parent company’s functional
currency is the Swedish krona (SEK), which is also the reporting currency of the
parent company and the Group. The financial statements are presented in millions
of Swedish kronor.
56
Holmen Annual Report 2021
Estimates and judgements in the financial statements
Preparing the financial statements in accordance with IFRSs requires the company’s
management to make estimates and judgements, as well as to make assumptions
that affect the application of the accounting policies and the recognised amounts
for assets, liabilities, income and costs. The actual outcome may deviate from these
assessments and estimates.
These estimates and judgements are reviewed regularly. Changes in estimates are
recognised in the accounts for the period in which the change is made if the change
only affects that period, or in the period the change is made and in later periods if
the change affects current and future periods. See also Note 27 ‘Critical accounting
estimates and judgements’.
Changes in accounting policies
New and amended accounting policies applicable as of 2021
New and amended IFRSs with application from 2021 do not have any material
impact on the company’s financial statements.
New and amended accounting policies not yet applied
New and amended IFRSs to be applied in the future are not expected to have any
material impact on the company’s financial statements.
Segment reporting
The Group’s operations are divided into operating segments, based on which parts
of the operations are monitored by the company’s highest executive decision-
maker, known as the management approach. The segmentation criterion is based
on the Group’s business areas. This corresponds to the Group’s operating structure
and the internal reporting to the CEO and the Board. The items in the profit, assets
and liabilities of the operating segment are recognised in accordance with the
profit (operating profit), assets and liabilities that are monitored by the company’s
highest executive decision-maker. See Note 2 for more details of the classification
and presentation of operating segments.
Note 1Notes Classification
Essentially, non-current assets, non-current liabilities and non-current provisions
consist solely of amounts that are expected to be recovered or paid more than
12 months after the balance sheet date. Current assets, current liabilities and
current provisions essentially consist of amounts that are expected to be recovered
or paid within 12 months of the balance sheet date.
Consolidation principles
Subsidiaries
A subsidiary is a company over which the parent company, Holmen AB, exercises
a controlling influence. Controlling influence exists if Holmen AB has control over
an investment object, is exposed or entitled to variable returns on its involvement
and can exercise its control of the investment to influence the size of return.
In determining whether one company has control over another, potential shares with
an entitlement to vote and whether de facto control exists are taken into account.
The consolidated accounts are prepared using the acquisition method. The acquisi-
tion method entails the parent company indirectly acquiring the subsidiary’s assets
and assuming the liabilities of the subsidiary, valued at fair value. The difference
between the cost of the shares and the fair value of the acquired identifiable net
assets is treated as goodwill. The subsidiary companies’ income and expenses, and
their assets and liabilities, are stated in the consolidated accounts as of the date
when the Group gains control (acquisition date) until such time as the Group no
longer has control. Intra-Group receivables and liabilities, transactions between
companies in the Group and related unrealised gains are eliminated in their entirety.
Holdings recognised in accordance with the equity method
Associates. Shareholdings in associates, in which the Group controls a minimum
of 20 per cent and a maximum of 50 per cent of the votes, or otherwise exercises
a significant influence, are stated in the consolidated accounts in accordance with
the equity method.
Jointly owned companies/joint ventures. In accounting, joint ventures are those
companies for which the Group, through cooperation agreements with one or more
parties, has joint control whereby the Group has rights to the net assets instead of
direct rights to assets and commitments in liabilities. Holdings in joint ventures are
consolidated in the consolidated accounts using the equity method.
The equity method. The equity method means that the book value of the shares in
the associates and joint ventures stated in the consolidated accounts corresponds
to the Group’s interest in the associates and joint ventures’ equity and any
consolidated surplus and deficit values. The Group’s share of the net earnings of
associates and joint ventures after tax attributable to parent company owners
adjusted for any depreciation/amortisation or reversal of acquired surplus and
deficit values, respectively, is stated in the consolidated income statement as
‘Share of profits of associates and joint ventures’. Dividends received from an
associate or joint venture reduce the book value of the investment. Unrealised
gains arising as a consequence of transactions with associates and joint ventures
are eliminated in relation to the owned proportion of equity.
When the Group’s share of the recognised losses of an associate and joint venture
exceeds the book value of the investments stated in the consolidated accounts,
the value of the investments is written down to zero. Losses are also offset against
unsecured long-term financial balances that, in financial terms, comprise part
of the owning company’s net investment in the associate and joint venture.
Any further losses are not recognised unless the Group has provided guarantees
to cover losses incurred by the associate or joint venture. The equity method is
applied until such time as the significant influence no longer exists or the jointly
owned company ceases to be jointly owned.
Foreign currency
Transactions denominated in foreign currencies
Transactions in foreign currencies are translated into the functional currency
at the exchange rates prevailing on the transaction dates. Monetary assets and
liabilities in foreign currencies are translated into the functional currency at the
exchange rate prevailing on the balance sheet date. Exchange differences arising
on such translations are stated in the income statement. Non-monetary assets
and liabilities that are stated at historical cost are translated at the exchange rate
prevailing on the transaction date.
Financial statements of foreign operations
The assets and liabilities of foreign operations, including any goodwill and other
consolidated surplus and deficit values, are translated in the consolidated
accounts, from the foreign operation’s functional currency, to the Group’s reporting
currency (Swedish kronor) at the balance sheet date rate. The income and
expenses of foreign operations are translated into Swedish kronor at an average
rate that is an approximation of the exchange rates prevailing at the date of each
transaction. Translation differences arising during currency translation of foreign
operations and the related effects of hedging net investments are recognised in
other comprehensive income and are accumulated in a separate component of
equity called the translation reserve. In the disposal of a foreign operation, the
accumulated translation differences attributable to the business are realised,
less any currency hedging, in the consolidated income statement.
Companies operating on behalf of the parent company
The parent company’s business is largely conducted through companies operating
on its behalf: Holmen Skog AB, Iggesund Paperboard AB, Holmen Paper AB,
Holmen Wood Products AB and Holmen Energi AB.
The parent company is liable for all commitments entered into by these companies.
All income, expenses, assets and liabilities, which arise in the operations conducted
by the companies, are recognised in Holmen AB’s accounts, except for the majority
of investments made as well as some sales of forest assets, which are instead
recognised in some of the Group’s subsidiaries.
Income
The Group’s sales mostly relate to goods sold to customers, which is specified in
the tables in Note 2. The services provided are limited and essentially relate to
silviculture services and services in the construction industry such as installation
work. Holmen acts almost exclusively as principal and the sales transactions are
based on agreements. For Holmen, the vast majority of contracts are separate
undertakings and comprise one undertaking per contract. Holmen’s guarantees
in connection with sales should not be regarded as separable and are therefore
recognised in accordance with IAS 37.
The transaction price is the price of the goods or service. Variable consideration
mainly occurs in the form of volume or cash discounts. Volume discounts give
custo mers a discounted price provided that a certain amount of goods are purchased
over a period. A cash discount entitles customers to a lower price if payment is made
by a certain date. Discounts are recognised as a reduction in net sales.
The income item is recognised when Holmen fulfils its commitment by transferring
control of the pledged goods and, where applicable, services to the customer.
The date of transfer of control, and the transfer of risk, is critical to when an
income item is recognised. The transfer of risk differs depending on the shipping
terms applied. The sale of energy differs from other sales as supply takes place in
conjunction with generation, when it is also recognised as revenue.
The Group’s business also includes construction solutions in wood. Income from
this activity is treated as a commercial construction contract and recognised over
time, based on costs spent in relation to the total estimated costs of the project.
Projects usually do not extend beyond twelve months. Holmen therefore applies
the relief rule and does not disclose remaining performance commitments.
Accrued income related to commercial construction contracts is initially
recognised as contract assets, since the right to payment is conditional upon
customer approval. When the customer has accepted the goods, the amount of
the contract asset is recognised as a receivable instead. Advances received are
included in the contract liability.
Payment terms vary from market to market and Holmen usually follows applicable
practice on the respective market.
Other operating income
Income from activities not forming part of the company’s main business is stated
as other operating income. This item mainly comprises sales of by-products,
renewable energy certificates, rent and land lease income, emission allowances,
insurance compensation and gains/losses on sales of non-current assets.
Renewable energy certificates
Certificates are issued in relation to production of renewable energy according
to a quota system introduced in order to promote electricity generation using
renewable sources of energy. Income from allocated certificates is recognised as
other operating income in the same period in which generation occurs.
State grants
State grants are recognised in the balance sheet as accrued income when it is
reasonably certain that the grant will be received and that the Group will satisfy
the conditions associated with the grant. State grants linked to a non-current asset
reduce the asset’s recognised cost. State grants, such as road grants, intended
to cover costs are recognised as other operating income. Grants are distributed
systematically in the income statement in the same way and over the same periods
as the costs the grants are intended to cover.
Holmen Annual Report 2021
57
Note 1Notes Financial income and costs
Financial income and costs consist of interest income and interest expense,
dividend income and revaluations of financial instruments valued at fair value,
as well as unrealised and realised currency gains and losses.
Interest income on receivables and interest expense on liabilities are calculated by
using the effective interest method. Interest expense includes transaction costs for
loans, which have been distributed over the duration of the loan; this also applies
to any difference between the funds received and the repayment amount. Dividend
income is recognised when the dividend is established and the right to receive
payment is judged to be certain.
Interest expense usually impacts earnings for the period to which it is attributable.
Borrowing costs attributable to the purchase, construction or production of
qualifying assets are capitalised in the consolidated accounts as part of the asset’s
cost. A qualifying asset is an asset that takes a substantial period of time to get
ready for its intended use and that is relevant for the Group in connection with
major investment projects.
Taxes
Income taxes comprise current tax and deferred tax. Income taxes are recognised
in the income statement except when underlying transactions are recognised in
other comprehensive income or directly in equity, in which case the associated
tax effect is also recognised in other comprehensive income or directly in equity.
Current tax is the tax to be paid or received for the year in question, using the tax
rates that have been decided on, or to all intents and purposes have been decided
on at the balance sheet date. This also includes any adjustment to current tax
attributable to previous periods. Deferred tax is calculated using the balance sheet
method on the basis of temporary differences between book values and values
for tax purposes of assets and liabilities, applying the tax rates and rules that have
been approved or announced at the balance sheet date. In the parent company’s
accounts, untaxed reserves are recognised inclusive of deferred tax liability.
Deferred tax assets in respect of tax-deductible temporary differences and loss
carry-forwards are recognised only to the extent that it is likely they will be utilised
and entail lower tax payments in the future. Deferred tax assets and deferred tax
liabilities in the same country are recognised net to the extent that a right of
set-off applies.
Earnings per share
The calculation of earnings per share (EPS) is based on the Group’s profit/loss for
the year attributable to the parent company’s owners and the weighted average
number of shares outstanding during the year. In calculating diluted EPS, the
earnings and the average number of shares are adjusted to take account of the
effects of any potential ordinary shares having a diluting effect.
Financial instruments
Financial instruments are measured and recognised according to IAS 9.
Recognition in and derecognition from the balance sheet
A financial asset or liability is stated in the balance sheet when the company
becomes a party in accordance with the contractual conditions of the instrument.
A financial asset is removed from the balance sheet when the rights referred to
in the contract have been realised or mature, or when the company no longer
has control over them. A financial liability is removed from the balance sheet
when the undertaking in the contract is performed or expires in some other way.
Spot transactions are stated in accordance with the trade date principle. Trade
receivables are recognised in the balance sheet when an invoice has been sent.
Liabilities are recognised when the counterparty has provided a product or service
and there is a contractual obligation to pay, even if an invoice has not yet been
received. A financial asset and a financial liability are only offset and recognised
at a net amount where a legal right to offset the amounts exists and there is an
intention to settle the items at a net amount or simultaneously realise the asset
and settle the liability. Financial assets, excluding shares, and financial liabilities
have been classified as current if the amounts are expected to be recovered or paid
within 12 months of the balance sheet date. Shares have been classified as
non-current if they are intended to be held in the operation permanently.
Classification and measurement of financial instruments
Financial instruments are classified and measured based on the company’s
business model and the nature of contractual cash flows. See Note 14 for the
company’s classifications of financial instruments.
Financial assets - are measured initially at fair value less any transaction costs.
Normally, the assets are measured on a current basis at amortised cost using
the effective interest method since the assets are held with the objective of
collecting the contractual cash flows, which consist of principal and interest on
the outstanding principal. In those cases where funds issued fall short of the
repayment amount, the difference is allocated over the duration of the loan using
the effective interest method. Derivatives are recognised on an ongoing basis at
58
Holmen Annual Report 2021
fair value. Changes in the value of derivatives that are not hedged are recognised
in profit/loss.
Financial liabilities - are measured initially at the value of funds received after
deduction of any transaction costs. Normally, the liabilities are measured on a
current basis at amortised cost using the effective interest method. In those
cases where funds received fall short of the repayment amount, the difference
is allocated over the duration of the loan using the effective interest method.
Derivatives are recognised on an ongoing basis at fair value. Changes in the value
of derivatives that are not hedged are recognised in profit/loss.
Impairment of financial assets - When assessing expected credit losses on
financial assets, the simplification rule is applied in accordance with IFRS 9. For
financial assets for which there is an indication that the entire book value cannot
be recovered, an individual assessment of the respective instrument is made.
Missed payments from counterparties usually constitute such an indication.
Any impairment is recognised based on an individual estimate. For financial
instruments for which there are no indications of low credit quality, a provision is
made for credit losses based on historical outcomes.
Hedge accounting - All derivatives, such as forward foreign exchange contracts,
electricity derivatives and interest rate swaps, are measured at fair value and
recognised in the balance sheet. Essentially all derivatives are held for hedging
purposes. The effective portion of changes in value from cash flow hedges is
recognised in other comprehensive income and accumulated in equity until such
time as the hedged item influences the income statement, when the accumulated
changes in value are transferred from equity via other comprehensive income to
the income statement to meet and match the hedged transaction. In the hedging
of investments, the cost of the hedged item is instead adjusted when it occurs.
The ineffective portion of hedges is recognised directly in the income statement.
Interest rate swaps are used as a cash flow hedge for interest rates. Changes
in the value of hedges relating to net investments in foreign businesses are
recognised in other comprehensive income for the Group. Accumulated changes
in value are recognised as a component in the Group’s equity until the business is
disposed of, at which point the accumulated changes in value are recognised in
the income statement. In the parent company, changes in value are recognised
in the income statement, as hedge accounting is not applied. Holmen’s cash
flow hedges mainly relate to the hedging of sales in foreign currency, future
interest payments, the purchase of electricity and purchases in foreign currency
in conjunction with investments. Hedging instruments comprise forward foreign
exchange contracts, forward electricity contracts and interest rate swaps. The
hedged items comprise forecasts of future sales, interest payments, electricity
purchases and capital expenditures. The hedge ratio is set on an ongoing basis by
comparing hedged amounts with actual forecasts. For hedging of net investments
in foreign operations, the book value of the net investment is a hedged item and
the hedge ratio is set by comparing the hedged amounts with the net investment.
Any inefficiency is based on an estimate of the hedge ratio. The Group’s risk
management of financial instruments is described on pages 46–47.
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. Fair
value measurement is based on measurement level 3. The total value of the forest
assets is allocated across growing trees, which are recognised as a biological
asset, and forest land. How much of the value is allocated to the biological assets
is established by calculating the present value of expected cash flows, less selling
costs but before tax, from harvesting those trees currently growing. Calculation
of present value uses a discount rate before tax calculated on the basis of forest
property transactions. The value of the forest land is calculated as the difference
between the total value of the forest assets and the biological assets. Changes
in the fair value of biological assets are recognised in profit/loss. Changes in
the fair value of forest land are recognised in other comprehensive income and
accumulated in a separate component of equity called the revaluation surplus.
If the fair value of forest land were to be less than cost, the difference would be
recognised in profit/loss as an impairment loss.
Recognition in the parent company
In the parent company, forest assets are recognised in accordance with RFR 2.
This means that they are classified as non-current assets and recognised at cost
adjusted for revaluations taking into account the need, if any, for impairment in value.
Non-current intangible assets
Non-current intangible assets such as the value of acquired wood supply business,
patents, licences and IT systems are recognised at cost after deduction of
accumulated amortisation and any impairment losses. The Group’s non-current
intangible assets are amortised over periods of between 5 and 20 years, except
for goodwill. Both goodwill and other non-current intangible assets are tested for
impairment annually. Any impairment losses may be reversed via exceptions from
goodwill. Non-current intangible assets in the parent company are amortised over
five years.
Note 1Notes Goodwill represents the difference between the cost of business combinations and
the fair value of the acquired assets, assumed liabilities and contingent liabilities.
Goodwill is allocated to cash-generating units that are expected to benefit from
the effects of the acquisition. Goodwill is valued at cost less any accumulated
impairment losses. Goodwill arising in connection with the acquisition of
associates is included in the book value of the participating interest in such
companies.
Research costs are expensed when they are incurred. Development costs are only
capitalised in the case of major projects to the extent that their future financial
benefits can be reliably assessed. The book value includes all directly attributable
expenses, for example in connection with materials and services, employee
benefits, registration of a legal right, amortisation of patents and licences and
borrowing costs in accordance with IAS 23. Other development expenditure
is recognised in the income statement as costs when incurred. Development
expenditures recognised in the balance sheet are stated at cost less accumulated
amortisation and impairment losses.
Property, plant and equipment
Property, plant and equipment are stated at cost after deduction of accumulated
depreciation and any impairment losses. Property, plant and equipment that
consist of parts with different useful lives are treated as separate components
of property, plant and equipment. Additional expenditure is capitalised only if
it is estimated to generate financial benefits for the company. The key factor
determining whether or not additional expenditure is capitalised is if it relates
to the replacement of identified components or parts thereof, in which case the
expenditure is capitalised. The cost is also capitalised in cases where a new
component is created. Any undepreciated book values for replaced components or
parts of components are retired and expensed in connection with the replacement.
The book value of an item of property, plant or equipment is removed from the
balance sheet in connection with retirement or disposal of the asset or when no
future financial benefits can be expected from the use of the asset. The gain or loss
arising on the retirement or disposal of an asset consists of the difference between
any selling price and the book value of the asset, less any direct selling costs. Gains
and losses are recognised in the accounts as other operating income/costs.
An asset is classified as being held for sale if it is available for immediate sale in its
present condition and based on normal terms, and it is highly likely that a sale will
take place. Such assets are recognised on a separate line as a current asset in the
balance sheet. When an asset is classified as holdings for sale, it is recognised at
the lower of book value and fair value, less selling costs.
Depreciation according to plan is based on original acquisition cost less any
impairment losses. Depreciation takes place on a straight-line basis over the
estimated useful life of the asset. Land is not depreciated.
The following useful lives (years) are used:
Machinery for hydro power production
10–40
Administrative and warehouse buildings, residential properties
10–33
Production buildings, land installations, and machinery for
sawmills, pulp, paper and paperboard production
Other machinery
Forest roads
Equipment
10–20
10
20
4–10
If there is any indication that the book value is too high, an analysis is made in
which the recoverable amount of single or inherently related assets is determined
at the higher of the net realisable value and the value in use. The net realisable
value is the estimated selling price after deduction of the estimated cost of selling
the asset. The value in use is measured as expected future discounted cash flow.
The discount rate applied takes account of the risk-free rate and the risk associated
with the asset. An impairment loss consists of the amount by which the recoverable
amount falls short of the book value. An impairment loss is reversed if there has
been any positive change in the circumstances upon which the determination of
the recoverable amount is based. A reversal may be made up to, but not exceeding,
the book value that would have been recognised, less depreciation, if there had
been no impairment.
Borrowing costs attributable to the purchase or construction of qualifying assets
are to be capitalised in the consolidated accounts as part of the asset’s cost.
A qualifying asset is an asset that takes a substantial period of time to get ready
for its intended use and that is relevant for the Group in connection with major
investment projects.
Right-of-use assets (leases)
When entering an agreement an assessment is made as to whether the agreement
is, or contains, a lease. An agreement is, or contains, a lease if the agreement
transfers the right for a set period to control the use of an identified asset in
exchange for compensation. The Group recognises a right-of-use asset and
associated liability upon entering into a lease. Such liabilities are initially valued at
the present value of the remaining lease payments for the estimated lease period.
Lease payments are discounted at the Group’s marginal borrowing rate, which
in addition to the Group’s credit risk reflects the agreement’s lease period and
currency. Right-of-use assets are initially valued at the value of the liability plus
lease payments paid upon or before the start date, plus any initial direct payments.
Such a right-of-use asset is depreciated/amortised on a straight-line basis over the
term of the lease.
The term of the lease comprises the non-cancellable period plus additional periods
in the agreement if it is deemed at the start date reasonably certain that these will
be used.
No right-of-use asset or lease liability is recognised for leases with a term of a
maximum of 12 months or with underlying assets of low value. Lease payments for
such leases are recognised as a cost on a straight-line basis over the term of the
lease.
Parent company
The policies on leases, in accordance with IFRS 16, that are applied by the Group
are not applied by the parent company. The parent company applies an exception
option in RFR 2 with the result that the parent company recognises existing leases
as operating leases.
Inventories
Inventories are valued at the lower of cost and production cost after deduction
for necessary obsolescence, or net realisable value. The cost of inventories
is calculated by using the first in, first out method (FIFO). The net realisable
value is the estimated selling price in operating activities after deduction of the
estimated costs of completion and affecting the sale. The cost of finished products
manufactured by the company comprises direct production costs and a reasonable
share of indirect costs.
Purchased felling rights are stated as inventories. They have been acquired with
a view to securing Holmen’s raw material requirements through harvesting.
No measurable biological change occurs from the acquisition date.
Emission allowances received are initially recognised at market price when
allotted among inventories and as deferred income. During the year the allocation
is recognised as income at the same time as an interim liability, corresponding to
emissions made, is expensed. Unsold rights are measured at the lower of cost and
fair value. Certificates received for renewable energy are initially recognised at
market price when allotted among inventories. Unsold certificates are measured at
the lower of cost and fair value.
Employee benefits
Pension costs and pension obligations
Obligations to pay premiums to defined contribution plans are recognised as a cost
in the income statement as and when they are earned.
The Group’s net obligation regarding defined benefit plans is calculated separately
for each plan by estimating future benefits earned by employees through their
employment in both current and previous periods. This benefit is discounted to
present value and the fair value of any plan assets are deducted. The discount rate
is the interest rate at the balance sheet date for a high-quality corporate bond with
a duration corresponding to the Group’s pension obligations. If there is no active
market for such corporate bonds, the market interest rate for government bonds
with a corresponding duration is used instead. The calculation is performed by
a qualified actuary using the projected unit credit method for the portion of the
pension obligations that is defined benefit.
Establishment of the obligation’s present value and the fair value of plan assets
may give rise to actuarial gains and losses. These arise either through the actual
outcome deviating from previously made assumptions or through changes in
assumptions. Actuarial gains and losses are recognised in other comprehensive
income.
If any changes occur to a defined benefit plan, these are recognised when the
change to the plan occurs. If the change occurs in conjunction with restructuring,
this is recognised when the company recognises the associated restructuring
costs. The changes are recognised directly in profit/loss for the year.
When the calculation leads to an asset for the Group being limited, the book value
of the asset is limited to the lower of the plan surplus and the asset limitation
calculated using the discount rate. The limitation of assets consists of the present
value of future economic benefits in the form of reduced future costs or cash
reimbursement. Any minimum funding requirements are taken into account in
calculating the present value of future reimbursements or receipts.
The interest expense on defined benefit obligations is recognised in profit/loss
for the year under financial items. This is calculated as the net total of the upward
adjustment of interest on the pension obligation and expected income on plan
Holmen Annual Report 2021
59
Note 1Notes The parent company’s equity comprises share capital, statutory reserves,
revaluation reserves, retained earnings and profit/loss for the year. The parent
company’s statutory reserve consists of previous compulsory provisions to the
statutory reserve plus amounts added to the share premium reserve before
1 January 2006. The parent company’s revaluation reserve contains amounts
set aside in connection with the revaluation of property, plant and equipment or
non-current financial assets. Retained earnings comprise all other parts of equity,
such as hedge reserves and transactions as a result of share buy-backs. The parent
company applies the same accounting policies as the Group for these items,
see above.
Provisions
A provision is recognised in the balance sheet when the Group has a legal or
informal commitment as a consequence of a past event and it is likely there will be
an outflow of financial resources to settle the commitment and a reliable estimate
of the amount can be made. A provision to cover restructuring is recognised
once the Group has established a detailed and formal restructuring plan and the
restructuring process has either begun or been publicly announced.
Provisions are made for environmental measures that relate to earlier activities
when contamination arises or is discovered, it is likely that a payment obligation
will arise, and the amount can be estimated reliably.
Contingent liabilities
A contingent liability is recognised when there is a potential commitment that
originates from past events, the existence of which will be confirmed only by
one or more uncertain future events, or when there is a commitment that is not
recognised as a liability or provision because it is unlikely that an outflow of
resources will be required.
Group contributions and shareholder contributions
Group contributions are recognised in the parent company in accordance with
RFR 2’s alternative rule, i.e. Group contributions paid or received are recognised as
appropriations.
Shareholder contributions are recognised as an increase in the item ‘Investments in
Group companies’. In addition, a review is conducted as to whether an impairment
loss on the value of the shares is necessary. This review complies with standard rules
on the valuation of this asset item. Shareholder contributions received are recognised
directly in non-restricted equity.
Other
The figures presented are rounded off to the nearest whole number or equivalent.
The absence of a value is indicated by a dash (-).
assets calculated according to the same interest factor (discount rate). Other
components are recognised in operating profit/loss. The revaluation effects consist
of actuarial gains and losses and the difference between the actual return on plan
assets and the amount included in net interest. Revaluation effects are recognised
in other comprehensive income.
Payroll tax constitutes part of the actuarial assumptions and is therefore
recognised as part of net obligations. Policyholder tax is recognised as it is
incurred in profit/loss for the period to which the tax relates and is consequently
not included in the calculation of liabilities. In the case of funded plans, this tax
is levied on the return on plan assets and is recognised in other comprehensive
income. In the case of unfunded plans or partially unfunded plans, this tax is levied
on profit for the year.
In the parent company’s accounts, different grounds are used for computation
of defined benefit pension plans from those referred to in IAS 19. The parent
company complies with the provisions of the Swedish Pension Obligations Vesting
Act and the Swedish Financial Supervisory Authority’s regulations, because this is
a condition for the right to make deductions for tax purposes. The main differences
in relation to the rules in IAS 19 relate to how the discount rate of interest is
established, the calculation of the defined benefit obligation on the basis of the
current pay level without any assumption regarding pay increments in the future,
and the recognition of all actuarial gains and losses in the income statement when
they arise.
When there is a difference between how the pension cost is arrived at in the legal
entity and in the Group, a provision or a receivable is recognised in the consolidated
accounts in respect of payroll tax based on this difference. The present value of the
provision or receivable is not calculated.
Share-based payments
The share savings programme is recognised in accordance with IFRS 2 Share-based
Payments and is paid through equity instruments. Recognition of share-based
payment programmes paid through equity instruments entails the fair value of
the instrument at the dividend date being recognised in the income statement
as a cost over the vesting period, with a corresponding adjustment of equity.
At the end of each vesting period, an estimate is made of the expected number of
allocated shares and the effect of any change in previous estimates are recognised
in the income statement with a corresponding adjustment of equity. In addition,
a provision is made for estimated social security costs relating to the share
programme.
Estimates are based on the value of the shares at the allocation date, which is
defined as the period when the agreement was concluded between the parties.
The average share price during this period was used as the basis for the valuation of
the shares at the allocation date.
Termination benefits
Termination benefits in connection with the termination of employment contracts
are recognised in the accounts if it is shown that the Group has an obligation,
without any reasonable possibility of withdrawing, as a result of a formal, detailed
plan to terminate an employment contract before the normal date. When benefits
are paid in the form of an offer to encourage voluntary redundancy, a cost is
recognised if it is likely that the offer will be accepted and the number of employees
who will accept the offer can be reliably estimated.
Short-term benefits
Short-term employee benefits are calculated without being discounted and are
recognised as a cost when the related services are provided.
Equity
Consolidated equity comprises share capital, other contributed capital, translation,
hedge and revaluation surpluses, and retained earnings, including profit/loss for
the year. Other contributed capital refers to premiums paid in conjunction with
share issues. The translation reserve consists of all exchange differences that arise
in the translation of foreign operations’ financial statements that are prepared in a
currency other than Swedish kronor. It also includes exchange differences arising
in connection with the revaluation of liabilities and derivatives that are classified
as instruments for hedging a net investment in a foreign operation, including tax.
The hedge reserve comprises the effective proportion of the accumulated net
change in the fair value of a cash flow hedging instrument attributable to underlying
transactions that have not yet occurred, including tax. The revaluation surplus also
comprises changes in value attributable to forest land. Retained earnings comprise
all other parts of equity, including profit/loss for the year.
Holdings of shares bought back are stated as a reduction in retained earnings.
Acquisitions of treasury shares are stated as a deduction, and proceeds from
the disposal of treasury shares are stated as an increase. Transaction costs are
charged directly to retained earnings.
60
Holmen Annual Report 2021
Note 1Notes Forest Paperboard
Paper
Wood
Products
Renewable
Energy
Group-wide
and other Eliminations Total Group
Note 2. Operating segment reporting
2021
Net sales
External
Internal
Other operating income
Operating costs
Change in value of biological assets
Depreciation and amortisation according to plan
Profit/loss from investments in associates and
joint ventures
Operating profit
Operating profit/loss excluding items affecting
comparability*
Operating margin excluding items affecting
comparability, %
Return on capital employed, excluding items
affecting comparability, %
Operating assets
Operating liabilities
Net deferred tax
Capital employed
2 424
4 085
580
-5 979
464
-78
-
1 495
1 495
23
4
49 178
-1 834
-10 045
37 300
6 261
-
642
-5 995
-
-565
-
343
673
11
13
6 974
-958
-847
5 169
5 441
-
270
-5 270
-
-371
-
70
70
1
4
2 707
-840
-231
1 637
4 872
-
499
-3 514
-
-189
1
1 668
1 668
34
82
2 954
-606
-70
2 278
Acquisition of non-current assets
249
399
129
242
External net sales by market
Sweden
UK
Germany
France
Italy
Rest of Europe
Asia
Rest of the world
Total
2 422
-
-
-
-
2
-
-
2 424
131
804
1 136
465
333
1 780
1 196
415
6 261
195
661
791
528
570
1 677
645
374
5 441
2 113
839
37
81
7
924
309
561
4 872
481
7
28
-140
-
-28
-1
347
347
71
10
4 772
-334
-368
4 069
712
481
-
-
-
-
-
-
-
481
-
-
217
-380
-
-29
-
-193
-193
-
-
1 320
-633
-47
640
43
-
-
-
-
-
-
-
-
-
-
-4 092
-544
4 636
-
-
-
-
-
-
-
-620
620
-
-
-
-
-
-
-
-
-
-
-
-
19 479
-
1 690
-16 643
464
-1 261
0
3 731
4 061
21
9
67 284
-4 584
-11 608
51 093
1 775
5 343
2 304
1 963
1 074
911
4 383
2 150
1 351
19 479
*Items affecting comparability refer to the costs and the loss of revenue associated with the turbine breakdown at the paperboard mill in Workington (SEK 330 million).
Net sales by market
Sweden
UK
Germany
France
Italy
Rest of Europe
Asia
Rest of the world
Total
Group
Parent company
2021
5 343
2 304
1 963
1 074
911
4 383
2 150
1 351
2020
4 197
1 830
2 115
816
805
3 740
1 940
884
2021
6 240
1 793
1 611
896
788
3 497
2 077
1 285
2020
4 382
1 253
1 707
647
716
2 820
1 841
820
19 479 16 327 18 186 14 187
Net sales by product area
Consumer paperboard
Pulp
Book, magazine & packaging paper
Newsprint
Wood products, pine
Wood products, spruce
Wood construction solutions
Wood
Electricity
Other
Group
Parent company
2021
2020
2021
2020
187
396
202
464
6 059 6 001 3 950 3 861
293
4 977 4 381 4 977 4 381
498
863
948
-
2 424 2 664 3 181 2 656
330
358
464
498
2 206 1 035 2 206
2 345 1 080 2 345
-
107
473
194
473
8
330
45
320
Income from external customers is allocated to individual countries according to
the country in which the customer is based.
Non-current assets per country
2021
2020
2021
2020
Group
Parent company
Total
19 479 16 327 18 186 14 187
Sweden
UK
Other
Total
57 993 53 657 14 721 14 652
-
-
1 321
4
1 329
4
-
-
59 326 54 983 14 721 14 652
Holmen Annual Report 2021
61
Note 2Notes
Notes 2–3
Note 2. Operating segment reporting, cont.
Forest Paperboard
Paper
Wood
Products
Renewable
Energy
Group-wide
and other Eliminations Total Group
2020
Net sales
External
Internal
Other operating income
Operating costs
Change in value of biological assets
Depreciation and amortisation according to plan
Profit/loss from investments in associates and
joint ventures
Operating profit
Operating margin, %
Return on capital employed, %
Operating assets
Operating liabilities
Net deferred tax
Capital employed
2 664
3 219
279
-5 318
579
-55
-
1 367
23
4
45 088
-1 673
-9 185
34 230
6 187
-
796
-5 617
-
-554
-
812
13
15
6 920
-869
-775
5 276
4 879
-
179
-4 603
-
-381
-
73
2
4
2 925
-693
-262
1 969
2 222
-
395
-2 308
-
-124
-
185
8
17
2 625
-727
-52
1 846
Acquisition of non-current assets
207
275
280
107
External net sales by market
Sweden
Germany
UK
France
Italy
Rest of Europe
Asia
Rest of the world
Total
2 656
-
-
-
-
8
-
-
2 664
105
1 258
774
380
271
1 749
1 329
321
6 187
279
850
590
425
532
1 571
438
192
4 879
781
6
465
11
2
411
174
371
2 222
375
3
19
-149
-
-27
-6
215
57
7
3 810
-121
-339
3 351
291
375
-
-
-
-
-
-
-
375
-
-
248
-392
-
-31
-
-174
-
-
873
-893
44
24
845
-
-
-
-
-
-
-
-
-
-
-3 222
-577
3 799
-
-
-
-
-
-
-379
379
-
-
-
-
-
-
-
-
-
-
-
-
16 327
-
1 339
-14 589
579
-1 172
-6
2 479
15
6
61 862
-4 597
-10 568
46 697
2 006
4 197
2 115
1 830
816
805
3 740
1 940
884
16 327
The Forest business area manages the Group’s forests, which cover just over one
million hectares. The annual harvest of own forest amounts to 2.8 million m3sub.
The Renewable Energy business area is responsible for the Group’s hydro power
and wind power assets. Production in a normal year is 1.2 TWh of renewable hydro
and wind power. In 2022, 0.4 TWh will be added from the new Blåbergsliden Wind
Farm. The business areas are responsible for the Group’s wood and electricity
supply in Sweden.
The Paperboard business area produces paperboard for consumer packaging for
the premium segment at one Swedish and one UK mill. The Paper business area
produces paper mainly for books, magazines and advertising at two Swedish mills.
The Wood Products business area produces wood products at five sawmills, for
use in joinery and construction. In 2021, the Group produced 0.5 million tonnes
of paperboard, 1.0 million tonnes of paper and 1.5 million m3 of wood products.
These business areas are responsible for managing the operating assets and
liabilities, which together with the net amount of deferred tax assets and tax
liabilities constitutes their capital employed. Group management monitors the
business at operating profit level, and in terms of how earnings relate to capital
employed. Capital employed in each segment includes all assets and liabilities
used by the business area such as non-current assets, inventories and operating
receivables and operating liabilities, and the net amount of deferred tax assets and
tax liabilities. Financing and tax issues are managed at Group level. Consequently,
financial assets and liabilities, including pension obligations, and current tax assets
and tax liabilities, are not allocated to the business areas.
Intra-Group sales between segments are founded on an internal market-based
price. The ‘Group-wide and other’ segment comprises Group staffs and Group-
wide functions that are not allocated to other segments.
Note 3. Other operating income
Group
Parent company
2021
2020
2021
2020
Sales of by-products
Sales of non-current assets
Certificates, renewable energy
Emission allowances
Rent and land lease income
Silviculture contracts
Other
584
320
186
140
101
95
264
411
59
457
85
94
80
153
Total
1 690
1 339
378
10
1
136
43
95
258
921
291
6
12
83
49
80
170
690
Of the sales of by-products in the Group, SEK 182 million (118) relates to rejects
from production, SEK 292 million (186) to wood shavings, bark and chips, as well
as SEK 110 million (108) to external sales of energy.
The sale of non-current assets in 2021 mainly relates to the sale of forest
properties in the UK.
Holmen receives a certificate for the production of renewable energy at the British
paperboard mill in Workington. Income declined during the year to SEK 186 million
(457) because of the turbine breakdown at the mill in Workington, which resulted
in lower than normal renewable energy production.
The Group has been allotted emission allowances that have been used partly
within its own production. The surplus resulted in a recognised gain of
SEK 140 million (85).
62
Holmen Annual Report 2021
Notes Note 4. Employees, personnel costs and remuneration to senior management
Note 4
Wages, salaries and social
security costs
Wages, salaries and other
remuneration
Social security costs
Group
Parent company
2021
2020
2021
2020
1 928
759
1 694
679
1 415
615
1 326
577
AGM’s guidelines for determining salaries and
other remuneration for senior management
The 2020 AGM decided on the following guidelines for determining the salaries
and other remuneration of the CEO and other senior management, namely the
heads of the business areas and heads of Group staffs who report directly to
the CEO. The guidelines shall apply to remuneration agreed after the guidelines
have been adopted by the 2020 AGM. The guidelines do not cover remuneration
determined by the AGM.
Guidelines’ promotion of the company’s business strategy,
long-term interests and sustainability
Holmen’s strategy is to own and add value to the forest. Holmen’s forest holdings
form the basis of the business in which the raw material grows and is refined into
everything from wood products for climate-smart building to renewable packaging,
magazines and books, using energy that largely comes from its own hydro and wind
power. Successful implementation of the company’s business strategy, long-term
interests and sustainability requires the company to be able to attract the right
employees. This guideline is intended to provide Holmen with the conditions to
recruit and retain skilled employees.
Forms of remuneration
A long-term share-based incentive programme has been established within the
company, which is described under Share savings programme. It was approved
by the 2019 AGM and is therefore not covered by these guidelines. Over and
above share-based incentive programmes approved by the AGM, no variable
remuneration shall be paid.
The remuneration of the CEO and the senior management shall consist of a fixed
market-based salary. Other benefits may include such items as health insurance,
accommodation and car allowance. Where such benefits are provided, they should
constitute no more than 10 per cent of the fixed salary.
The retirement age is normally 65 years. The pension benefit shall be based on
contributions and the contributions shall correspond to what is stipulated in the
ITP occupational pension plan, currently 30 per cent of fixed cash salary.
Notice and severance pay
The period of notice is six months, regardless of whether notice is given by the
company or the member of senior management. In the event of notice being
given by the company, severance pay may be paid corresponding to no more than
18 months’ salary.
Consideration of salary and employment terms for other employees
In formulating its proposals for these remuneration guidelines, the Board has taken
into account salaries and employment terms of the company’s other employees,
by including information about employees’ total remuneration, the components
of such remuneration and the increase in remuneration and the rate of increase
over time, which have constituted part of the basis for decisions in evaluating the
reasonableness of these guidelines.
Decision-making process for establishing, reviewing and implementing
the guidelines
The Board has established a remuneration committee. The committee’s duties
include preparing the Board’s decision on proposed remuneration guidelines for
senior management. Under Chapter 8, § 51 of the Swedish Companies Act, the
Board must draft proposed new guidelines at least every four years and put such
proposal to the AGM. The remuneration committee must also monitor and evaluate
the application of the guideline and applicable remuneration structures and levels
in the company. Members of the remuneration committee must be independent in
relation to the company and its senior management. The CEO and other members
of senior management do not attend the Board’s discussion of and decisions on
remuneration-related matters if such matters relate to them.
Deviation from the guidelines
The Board may decide to temporarily deviate from the guidelines in full or in part
if, in an individual case, there are particular reasons for so doing and deviation is
necessary in the long-term interests of the company, including its sustainability,
or to ensure the company’s financial viability.
Share savings programme
The 2019 AGM approved a targeted share savings programme for key individuals
in the Group. The overall purpose of the programme is to retain close alignment of
the interests of senior management and shareholders and to encourage long-term
commitment to Holmen.
Participation in the programme required the relevant employees to have personally
invested in Holmen shares (known as ‘savings shares’) during the period 9 May to
31 May 2019. The programme expires on 28 April 2022. For each invested savings
share, a half matching share will be allotted after the end of the vesting period since
Holmen’s total return for the period 2019−2021 was positive, which was the
condition for the allocation of matching shares. In addition, performance shares
will be allotted to participants since return on capital employed exceeded the limit
for allocation during the period 2019−2021. The number of performance shares
varies depending on the position of the participant. To be eligible for allocation
of matching and performance shares, participants must have been full-time
employees within the Holmen Group and held the savings shares for the entire
vesting period. The vesting period runs from 31 May 2019 through the day of
publication of the interim report for the first quarter of 2022. The maximum
number of shares that can be allocated is estimated at 112 000. Total costs for
the programme are estimated at SEK 32 million. Costs of SEK 20 million (5) have
been recognised for 2021.
Remuneration of Board and senior management
Board of Directors
A fixed Board fee shall be paid to the members of the Board elected by the AGM.
The CEO, however, does not receive any Board fee. For 2021, fees to the Board
amounted to SEK 3 330 000 (3 195 000). The chairman of the Board received a fee
of SEK 740 000 (710 000), and each of the other seven (seven) members received
SEK 370 000 (355 000).
Senior management
Salary and other benefits for the CEO in 2021 amounted to SEK 9 786 724
(9 783 332), of which SEK 9 360 000 (9 360 043) relates to basic salary and
SEK 426 724 (423 289) relates to other benefits. No variable remuneration was
paid. The total pension cost for the CEO, calculated in accordance with IAS 19,
amounted to SEK 5 907 348 (5 647 641). Recognised wages and salaries for the
share savings programmes for the CEO amounted to SEK 2 309 061 (577 836).
In 2021, the salaries and other benefits of other senior management, i.e. the heads
of the five (five) business areas and the heads of the five (five) Group staffs and the
head of international affairs, who report directly to the CEO, totalled SEK 30 826 296
(29 066 025) in 2021, of which SEK 29 635 750 (28 186 992) relates to basic salary
and SEK 1 190 546 (879 033) relates to other benefits. No variable remuneration
was paid. The total pension cost for this group, calculated in accordance with
IAS 19, amounted to SEK 12 027 090 (11 795 571) in 2021. Recognised wages
and salaries for the share savings programmes for this group amounted to
SEK 4 694 627 (1 802 587).
For senior management, employed from 2011, a mutual notice period of six
months applies. In the event of notice being given by the company, deductible
severance pay corresponding to 18 months’ salary is paid. These terms apply to
nine people. For one person no severance is paid. For two senior management
employment contracts, signed before 2011, the employee is required to give six
months’ notice and the company must give 12 months’ notice. In the event of
notice being given by the company for these people, severance pay corresponding
to up to two years’ salary is paid, depending on age.
All members of senior management are employed by the parent company.
Pension obligations in respect of senior management
Holmen’s pension obligations over and above the ITP plan for the CEO amounted
to SEK 32 million (29) at 31 December 2021 and for other members of senior
management to SEK 32 million (31), calculated in accordance with IAS 19.
The pension obligations are secured using plan assets managed by an indepen-
dent pension fund. These agreements were entered into in accordance with the
guidelines for remuneration to senior management that were applicable at the time.
Holmen Annual Report 2021
63
Notes 2 464
507 1 957
2 316
462 1 854
Total net profit/loss
Notes 4–6
Note 4. Employees, personnel costs and
remuneration to senior management,
cont.
Average
no. of
employees
(FTE)
Of
which
women
Of
which
men
Average
no. of
employees
(FTE)
Of
which
women
Of
which
men
2021
2020
Parent company
Sweden
Group
companies
France
Netherlands
UK
Sweden
Germany
US
Other countries
Total Group
companies
Total Group
12
80
383
466
22
9
38
6
45
41
72
8
3
14
6
35
342
394
14
6
24
12
76
377
123
22
12
35
6
41
41
17
8
4
15
6
35
336
106
14
8
20
1 010
3 474
189
821
658
132
526
696 2 778
2 974
594 2 380
Proportion of women, %
Board (excl. deputy members)
Senior management
Total
Group
Parent company
2021
25
17
21
2020
25
17
21
2021
25
17
21
2020
25
17
21
Note 5. Auditors’ fee and remuneration
The audit firm PricewaterhouseCoopers AB (PwC) was elected by the 2021 AGM as
Holmen’s auditors for a period of one year. PwC performs the audit for Holmen AB
as well as for the majority of Holmen’s subsidiaries. For the 2020 financial year,
the audit firm KPMG conducted the audit at Holmen AB as well as at the majority of
Holmen’s subsidiaries.
Remuneration to auditors
Audit assignments PwC
Audit assignments KPMG
Tax advice PwC
Tax advice KPMG
Total
Other auditors
Total
Group
Parent company
2021
2020
2021
2020
8
1
1
0
9
0
9
-
7
-
0
7
0
7
5
-
1
-
6
-
6
-
4
-
0
5
-
5
‘Audit assignments’ refers to the statutory examination of the annual accounts
and accounting records, the administration by the Board and the CEO, and auditing
and other assessment performed as agreed or in accordance with contracts.
This includes other duties that are incumbent on the company’s auditors and the
provision of advice or other assistance resulting from observations in connection
with such assessment or the performance of such other duties. ‘Tax advice’ refers
to all consultation in the field of taxation.
Note 6. Net financial items and income from
financial instruments
Financial income
Dividend income from Group companies
Dividends from associates
Gains on sales of Group companies
Interest income*
Total financial income
Group
Parent company
2021
2020
2021
2020
-
0
-
8
9
-
0
-
11
11
382
-
-
26
408
284
-
10
24
318
* SEK 8 million (11) relates to interest income calculated using the effective interest
rate method from financial items valued at amortised cost.
64
Holmen Annual Report 2021
Financial costs
Impairment losses on value of shares
in Group companies
Net profit/loss
Assets and liabilities measured at
fair value through profit/loss
Cash and cash equivalents
Assets and liabilities measured at
amortised cost
Interest expense attributable to
right-of-use agreements
Interest expense*
Financial costs
Net financial items
Group
Parent company
2021
2020
2021
2020
-
3
0
-5
-2
-5
-41
-48
-39
-
-2
-95
15
6
-22
-2
-5
-47
-53
-42
-35
0
-5
-40
-
-49
-92
316
43
6
-21
28
-
-52
-118
199
*SEK -2 million (-7) in the Group and parent company relates to interest expense for
derivatives valued at fair value through other comprehensive income. SEK -1 million
(-2) relates to interest expense for derivatives recognised at fair value through
profit/loss for the year. Remaining interest expense is calculated using the effective
interest rate method and relates to financial items valued at amortised cost.
Net gains and losses recognised in net financial items mainly relate to currency
revaluations of internal lending and hedging of internal lending. The parent
company’s net financial items also include currency revaluation of forward
contracts that hedge net investment in foreign operations, which are recognised
in the Group under other comprehensive income. The fair value of the interest
component in forward foreign exchange contracts as well as value changes in
accrued interest and realised interest in fixed-interest-rate swaps is recognised on
an ongoing basis in net interest items. Information on financial risks is provided on
pages 46–47.
The income from financial instruments included in operating profit/loss is shown in
the following table:
Group
Parent company
Exchange gains/losses on trade
receivables and trade payables
Net gain/loss relating to derivatives
2021
2020
2021
2020
-97
336
48
-98
-96
314
45
-80
The derivatives included in operating profit/loss relate to currency hedging of trade
receivables and trade payables as well as financial electricity derivatives.
Gains and losses on currency hedging are recognised in operating profit/loss when
the hedged item is recognised and in 2021 amounted to SEK 120 million (-16), with
the remainder being recognised in other comprehensive income as hedge accounting
is applied. The fair value of outstanding currency hedges at 31 December 2021 was
SEK 103 million (466).
Gains/losses on financial electricity hedges are recognised in the income
statement when they expire; for 2021 they totalled SEK 215 million (-82). The
fair value of outstanding financial electricity hedges at 31 December 2021 was
SEK 838 million (14). The change in fair value is recognised in other comprehensive
income as hedge accounting is applied.
The change in the fair value of hedges for investment purchases is recognised in
other comprehensive income until expiry, at which point the gain/loss is added to
the cost of the non-current asset that was hedged. The fair value of outstanding
hedges for investment purchases amounted to SEK -3 million (-35) at 31 December
2021. In 2021 there was an impact of SEK -23 million (-2) on the cost of hedged
items owing to results from hedging.
Results from hedging of foreign net assets amounted to SEK -39 million (29) in 2021
and are recognised in other comprehensive income as hedge accounting is applied.
In the parent company accounts, this gain is recognised in the income statement.
The translation of net foreign assets had an impact of SEK 180 million (-187)
on consolidated equity. The fair value of outstanding hedges of net assets at
31 December 2021 was SEK -12 million (7) and relates to financial derivatives.
The fair value of the derivatives used to manage the fixed interest periods
amounted to SEK 13 million (-3) at 31 December 2021, which was recognised
in other comprehensive income as hedge accounting is applied. This value is
expected to be recognised in the income statement in 2022 and later.
Notes
Note 7
Note 7. Tax
Taxes stated in income statement
2021
2020
2021
2020
Group
Parent company
Current tax
Deferred tax
Total
-456
-232
-688
-517
59
-458
-426
-25
-451
-429
12
-417
Tax recognised totalled SEK -688 million (-458), corresponding to 19 per cent (19)
of profit before tax.
Taxes stated in income statement
Recognised profit/loss before tax
Tax at applicable rate
Difference in tax rate in foreign operations
Tax-exempt income
Non-tax-deductible costs
Standard interest on tax allocation reserve
Tax attributable to previous periods
Change to tax rate on deferred tax assets/liabilities
Other*
Effective tax
Group
Parent company
2021
2020
2021
2020
SEKm
3 691
%
SEKm
2 437
%
SEKm
2 541
%
SEKm
2 336
-760
-2
65
-25
-2
4
-31
62
-688
20.6
0.0
-1.8
0.7
0.1
-0.1
0.8
-1.7
18.6
-521
9
7
-19
-2
60
5
4
-458
21.4
-0.4
-0.3
0.8
0.1
-2.4
-0.2
-0.2
18.8
-523
-
79
-4
-2
0
-2
1
-451
20.6
-
-3.1
0.2
0.1
0.0
0.1
-0.1
17.7
-500
-
64
-24
-2
45
0
0
-417
%
21.4
-
-2.7
1.0
0.1
-1.9
0.0
0.0
17.9
*In 2021, deferred tax income of SEK 60 million is recognised, relating to a tax reduction for the year’s investments in property, plant and equipment.
Tax attributable to other comprehensive income
Cash flow hedges
Share in joint ventures’ other comprehensive income
Translation difference from foreign operations
Hedging of currency risk in foreign operations
Revaluation of forest land
Revaluation of defined benefit pension plans
Other comprehensive income
Group
After
tax
Before
tax
Before
tax
Tax
2021
504
3
180
-39
3 345
-12
3 981
-105
-
-
8
273
399
16
3
-187
180
-31
29
-689 2 656 1 173
-15
-6
6
-780 3 201 1 289
Taxes as stated in balance sheet
2021
2020
2021
2020
Group
Parent company
Tax receivables
Deferred tax assets
Current tax receivables
Total tax receivables
Deferred tax liabilities
Non-current assets
Biological assets
Forest land
Property, plant and equipment
Tax allocation reserve
Transactions subject to hedge accounting
Other, including deferred tax assets stated
net among deferred tax liabilities
Deferred tax liabilities
Current tax liabilities
Total tax liabilities
3
70
72
1
6
7
6 016
3 648
1 171
606
196
5 901
2 939
1 063
509
92
-29
66
11 610 10 570
80
211
11 690 10 780
-
39
39
-
601
2
-
196
-12
787
-
787
-
-
-
-
595
2
-
91
-32
657
145
802
Tax
2020
-55
-
-
-6
-242
3
-300
After
tax
Before
tax
218
16
-187
23
932
-12
989
505
-
-
-
-
-
505
Tax
2021
-104
-
-
-
-
-
-104
Parent company
After
tax
Before
tax
401
-
-
-
-
-
401
272
-
-
-
-
-
272
Tax
2020
-55
-
-
-
-
-
-55
After
tax
218
-
-
-
-
-
218
Holmen Annual Report 2021
65
Notes Notes 7–8
Note 7. Tax, cont.
Change in the net amount of deferred tax assets and deferred tax liabilities
Group
Stated
in the
income
statement
Stated in
other com-
prehensive
income
Opening
balance
Translation
differences
and other
-5 901
-2 939
-1 063
-509
-92
-66
-125
-10
-51
-97
-
51
-10 570
-232
-
-689
-
-
-105
6
-788
-
-
-13
-
1
-5
-17
Group
Stated
in the
income
statement
Stated in
other com-
prehensive
income
Opening
balance
Translation
differences
and other
Parent company
Stated
in the
income
statement
Stated in
other com-
prehensive
income
Re classi-
fication
Closing
balance
Opening
balance
10
-10
-44
-
-
44
-6 016
-3 648
-1 171
-606
-196
29
-
-596
-2
-
-91
32
-
-11 608
-657
-
-5
0
-
-
-20
-25
Closing
balance
-
-601
-2
-
-196
11
-
-
-
-
-104
-
-104
-787
Business
combination
Closing
balance
Opening
balance
Parent company
Stated
in the
income
statement
Stated in
other com-
prehensive
income
-5 746
-2 697
-1 434
-359
-37
-26
-10 298
-155
-
357
-150
-
7
59
-
-242
-
-
-55
-3
-300
-
-
14
-
0
7
21
-
-
-
-
-5 901
-2 939
-1 063
-509
-
-50
-92
-66
-
-595
-2
-
-37
19
-50 -10 570
-614
-
-1
-
-
-
13
12
-
-
-
-
-55
-
-55
Closing
balance
-
-596
-2
-
-91
32
-657
2021
Biological assets
Forest land
Property, plant and
equipment
Tax allocation reserve
Transactions subject
to hedge accounting
Other
Deferred net tax
liability
2020
Biological assets
Forest land
Property, plant and
equipment
Tax allocation reserve
Transactions subject
to hedge accounting
Other
Deferred net tax
liability
The Group’s deferred tax liability for forest assets (biological assets and forest land)
amounts to SEK 9 664 million (8 840) and is calculated based on the difference
between book value SEK 47 080 million (43 202) and taxable cost SEK 173 million
(315). This represents the tax expense that would arise if the forest assets were sold
as forest properties. No tax expense arises if the assets are retained.
Deferred tax liability in respect of property, plant and equipment is primarily
attributable to depreciation/amortisation in excess of plan.
The amount recognised in other comprehensive income includes deferred tax
mainly related to a change in the value of forest land of SEK -689 million (-242)
and hedge reserve of SEK -105 million (-55).
Holmen has claimed group relief in the parent company related to tax losses
in Spanish subsidiaries that was liquidated. The deductions correspond to
SEK 389 million in tax, but no tax receivable has been recognised. There are
no other loss carry-forwards of significance in the Group.
Note 8. Earnings per share
Group
2021
2020
Total number of shares outstanding,
1 January
Share savings programme allocation
Total number of shares outstanding,
31 December
161 925 685
-
161 925 685
-
161 925 685
161 925 685
Shareholders’ share of profit/loss for
the year, SEK
Basic average number of shares
3 003 524 941 1 979 252 281
161 925 685
161 925 685
Basic EPS for the year, SEK
18.5
12.2
Shareholders’ share of profit/loss for
the year, SEK
Diluted average number of shares
3 003 524 941 1 979 252 281
161 925 685
161 925 685
Diluted EPS for the year, SEK
18.5
12.2
The share savings programme approved by the 2019 AGM may entail allocation of a
maximum of 112 000 shares from Holmen’s treasury holdings when the programme
expires in 2022. The effects on key ratios and profit per share are marginal.
66
Holmen Annual Report 2021
Notes Note 9. Forest assets
Holmen’s owns land totalling 1 304 000 hectares, of which 1 044 000 hectares are
productive forest land with an estimated volume of standing timber of 125 million
cubic metres (m3) of growing stock, solid over bark. The holdings are distributed
over three regions in Sweden.
Productive
forest
land,
’000 ha
Volume of
standing timber,
millions m3
growing stock,
solid over bark
North
Central
South
Total
689
264
91
1 044
75
35
15
125
North
Central
Forest assets are recognised at fair value,
calculated based on the transaction
prices for forest properties in those areas
where the Group owns forest land. The
calculation is carried out through an
appraisal of the valuations that are based
partly on price statistics published by
various market participants and partly on
detailed information regarding transactions
with forest properties over the past three
years. The price statistics refer to SEK per
m3 growing stock, solid over bark, which
is paid on average in the various counties in Sweden where Holmen has land.
The calculation based on transactions with forest properties is carried out as a
regression analysis based on transactions exceeding 20 hectares in the areas
where Holmen has land.
South
The book value of forest assets amounted to SEK 47 080 million (43 202) at
31 December 2021. The value per hectare varies between different parts of the
country, with forest properties in southern Sweden being valued much higher per
hectare as a result of a greater volume of standing timber, higher site quality, a
shorter harvesting cycle and greater demand for forest land. The graphs below
show Holmen’s recognised value of forest assets by region, stated in both SEK
million and in SEK per hectare.
Book value, SEKm
50 000
40 000
30 000
20 000
10 000
0
2019
2020
2021
Northern Sweden
Central Sweden
Southern Sweden
Book value, SEK/hectare
120 000
100 000
80 000
60 000
40 000
20 000
0
2019
2020
2021
Northern Sweden
Central Sweden
Southern Sweden
Note 9
The recognised value of forest assets is primarily dependent on how large the
volume of standing timber is estimated to amount to and the market price per m3
growing stock, solid over bark calculated based on price statistics and transaction
data collected from external parties. The table below shows how the value is
affected by changes in the size of the volume of standing timber and the market
price, respectively.
Price statistics and market data
Northern Sweden
Central Sweden
Southern Sweden
Holmen’s volume
of standing timber
SEK 10/m3 growing stock, solid over bark
SEK 10/m3 growing stock, solid over bark
SEK 10/m3 growing stock, solid over bark
1 million m3 growing stock, solid over bark
SEKm
750
350
150
380
The size of Holmen’s volume of standing timber is calculated based on the most
recent inventory, updated with the completed harvest and estimated growth after the
time of inventory. In the most recent inventory, an external party carried out a random
sample inventory with a standard error of 1.4 per cent. The inventory is normally
carried out every ten years. The diagram below shows the volume of standing timber
measured as m3 growing stock, solid over bark, per hectare in the inventories carried
out since 1988 and the estimated volume of standing timber at 31 December 2021.
Volume of standing timber m3 growing stock, solid over
bark per hectare productive forest land, average for
Holmen’s forest assets
160
120
80
40
0
1988
1993
2000
2010
2020
2021
The price statistics used in the valuation are public information that comes from
market participants. The transaction data that are used come from Lantmäteriet
(the Swedish mapping, cadastral and land registration authority) and were processed
by an external party. In the areas where Holmen has land about 300 transactions
involving forest properties are carried out annually. Transactions between legal
entities are not normally included in the calculations for price statistics or transac-
tion data. Holmen has chosen to use three years of price statistics and transaction
data in the valuation. If a different time period were used, the book value would
be affected. The diagram below shows the price for forest properties measured
in SEK per m3 growing stock, solid over bark, based on annual price statistics and
transaction data for the regions in the country where Holmen owns land.
Price of forest properties, SEK/m3 growing stock,
solid over bark
800
600
400
200
0
2015
2016
2017
2018
2019
2020
2021
Northern Sweden
Central Sweden
Southern Sweden
To verify Holmen’s own valuation of the forest assets, an external independent valua-
tion of parts of the forest holdings is carried out every year, with the aim of having a
reference valuation of the entire forest holdings over fi ve years. Since Holmen began to
recognise forest assets at fair value in 2019, the company Forum Fastighetsekonomi
has carried out external valuations each year. At the end of 2021, forest properties cor-
responding to two thirds of the book value were valued by Forum Fastighetsekonomi.
The external valuations exceed the internal valuations by 1 per cent.
Notes
Holmen Annual Report 2021
67
Note 9
Note 9. Forest assets, cont.
The value of the forest assets is allocated in the balance sheet to growing
trees, SEK 29 204 million, recognised as a biological asset, and forest land,
SEK 17 876 million.
The table below shows how the value of biological assets would be affected by
changes in the most significant valuation assumptions.
Biological assets
The value allocated to the biological assets is established by calculating the
present value of expected future cash flows, less selling costs but before tax, from
harvesting those trees currently growing. The trees that are currently growing are
expected to be harvested when they reach an age of 85 years. The volumes are
based on the long-term harvest plan that was updated in 2020. Income and costs
are calculated based on long-term trend levels. The trend price that was used for
2021 was SEK 466 (457)/m3sub, which is somewhat lower than current prices.
The costs are based on the current level adjusted for temporary effects. Prices and
costs are revised up by 2 per cent each year. A discount rate before tax of 4.5 per
cent (4.5) has been used. Costs for replanting after harvest have not been included.
The change in value of biological assets, calculated as the net of the change as a
result of harvesting and the unrealised change in fair value is stated in the income
statement and in 2021 totalled SEK 464 million (579).
Wood prices, SEK/m3sub
600
500
400
300
200
Annual change
+0.1% per year
Harvest rate
Price inflation
Cost inflation
Change in level
Harvesting
Prices
Costs
+1%
Discount rate
+0.1%
SEKm
1 060
1 530
-630
340
510
-220
-830
Annual change refers to the annual rate of change used in the valuation of each
parameter. For example, an increase of 0.1 per cent means that the annual price
inflation will be increased from 2.0 per cent to 2.1 per cent in the calculations.
Change in level means that the level for each parameter and year changes.
For example, a 1 per cent price increase means that the wood prices in the
calculations are raised by 1 per cent for all years (change of level).
Forest land
The book value of the forest land is calculated as the difference between the total
value of the forest assets and the biological assets. This value reflects future
income from sources other than the harvest of currently standing trees, such as
leasing of land for wind power, quarrying, hunting leases, licence income and
harvesting future generations of trees.
The change in fair value for forest land is recognised in other comprehensive
income and totalled SEK 3 345 million (1 173). No value is assigned to land that
is not productive forest land.
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2021
Real
Nominal
Planned harvest, ’000 m3sub/year
3 500
3 000
2 500
2 000
1 500
1 000
500
0
2002-
2006
2007-
2011
2012-
2016
2017-
2021
2022-
2026*
2027-
2031*
2032-
2036*
2037-
2041*
Harvest
Thinning
Storms & other events
*Forecast
Group
Book value at start of year
Acquisitions
Disposal
Investment in reforestation
Change due to harvesting
Unrealised change in fair value
Other changes
Book value at end of year
Forest assets
Biological assets
Forest land
Of which
2021
43 202
42
-120
142
-695
4 503
7
47 080
2020
41 345
9
-22
128
-691
2 444
-12
43 202
2021
28 663
24
-93
142
-695
1 158
5
29 204
2020
27 979
0
-16
128
-691
1 271
-8
28 663
2021
14 538
18
-27
-
-
3 345
2
17 876
2020
13 366
9
-6
-
-
1 173
-4
14 538
The acquisition cost of forest land amounted to SEK 303 million at 31 December 2021.
68
Holmen Annual Report 2021
Notes
Note 10
Note 10. Non-current intangible assets
Group
Goodwill
Other
intangible assets
Total
Parent company
Non-current
intangible assets
2021
2020
2021
2020
2021
2020
2021
2020
Accumulated acquisition costs
Opening balance
Business combinations
Investments
Disposal and retirement of assets
Translation differences
Total
Accumulated amortisation, depreciation and impairment losses
Opening balance
Depreciation and amortisation for the year
Disposal and retirement of assets
Translation differences
Total
355
4
-
-
-
358
-
-
-
-
-
-
355
-
-
-
355
-
-
-
-
-
Residual value according to plan at end of year
358
355
370
-
13
-
1
384
170
32
0
1
203
181
225
140
7
-2
0
370
155
17
-2
0
170
200
725
4
13
-
1
742
170
32
0
1
203
539
225
495
7
-2
0
725
155
17
-2
0
170
555
68
-
-
-
-
68
50
5
-
-
55
13
68
-
-
-
-
68
44
6
-
-
50
17
The goodwill recognised is attributable to the Wood Products business area, see Note 26 for more information. Goodwill is tested for impairment annually by calculating the
value in use of the cash-flow generating unit to which goodwill has been allocated. The calculations are made by assessing future cash flows. The future cash flows are based
on current levels of sales prices, costs and volumes for the coming year. When calculating cash flows for subsequent periods, prices and costs are used based on historical
data. The future cash flows have been discounted by 8 per cent interest before tax. The discount rate has been determined by calculating the weighted average cost of
capital (WACC). Based on these calculations, there is no need for impairment.
Other intangible assets consist primarily of the value of the wood supply business included in the 2020 acquisition of Martinsons SEK 111 million (134), right-of-use relating
to certain energy assets SEK 57 million (49) and IT systems SEK 5 million (10).
The assets are mainly externally acquired and all assets, with the exception of goodwill, have a definable useful life.
Holmen Annual Report 2021
69
Notes Note 11
Note 11. Property, plant and equipment
Group
Accumulated acquisition costs
Opening balance
Business combinations
Investments
Reclassifications
Disposal and retirement of assets
Translation differences
Total
Accumulated amortisation, depreciation and
impairment losses
Opening balance
Business combinations
Depreciation and amortisation according to plan for
the year
Disposal and retirement of assets
Translation differences
Total
Residual value according to plan at end of year
*Other land refers to land other than forest land.
Buildings, other land*
and land installations
Machinery and
equipment
Work in progress and
advance payments
to suppliers
Total
2021
2020
2021
2020
2021
2020
2021
2020
6 441
-
54
37
-72
52
5 934
475
79
7
-1
-53
29 739
-
657
1 061
-492
387
29 050
866
549
89
-416
-399
6 512
6 441
31 352
29 739
676
-
782
-1 098
-
3
363
244
134
397
-96
-
-2
676
36 858
-
1 493
-
-564
442
35 229
1 475
1 025
-
-417
-454
38 227
36 858
3 971
-
122
-70
36
4 059
2 454
3 549
348
110
0
-36
3 971
2 471
23 660
-
22 773
646
995
-487
288
949
-414
-294
24 456
23 660
-
-
-
-
-
-
-
-
-
-
-
-
27 632
-
26 323
994
1 117
-557
324
1 059
-414
-330
28 515
27 632
6 895
6 078
363
676
9 711
9 226
Parent company
Accumulated acquisition costs
Opening balance
Investments
Reclassifications
Disposal and retirement of assets
Total
Accumulated depreciation and
amortisation according to plan
Opening balance
Depreciation and amortisation according
to plan for the year
Disposal and retirement of assets
Total
Accumulated revaluations
Opening balance
Disposal and retirement of assets
Total
Residual value according to plan at
end of year
*Other land refers to land other than forest land.
Forest land
Buildings, other land*
and land installations
Machinery and
equipment
Work in progress and
advance payments
to suppliers
Total
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
478
21
-
-
499
-
-
-
-
474
4
-
-
478
-
-
-
-
190
5
8
-
203
177
9
4
-
190
139
136
4
-
4
-
143
139
2 388
-
2 388
2 388
-
2 388
1
-
1
1
-
1
303
45
-
-42
306
193
43
-42
194
-
-
-
260
52
9
-18
303
173
38
-18
193
-
-
-
10
13
-8
-
15
-
-
-
-
-
-
-
17
7
-13
-
10
982
84
-
-42
1 024
928
72
-
-18
982
309
42
-18
333
333
44
-42
336
-
-
-
-
-
-
-
2 388
-
2 388
2 389
-
2 389
2 887
2 866
60
51
113
111
15
10
3 075
3 038
For forest assets in the Group see Note 9. In 2021, capitalised borrowing costs totalled SEK 6 million (2). An interest rate of 1.2 per cent (1.2) was used to determine the amount.
70
Holmen Annual Report 2021
Notes Note 12
Note 12. Right-of-use assets (leases)
Group
Accumulated acquisition costs
Opening balance
Business combinations
Additional agreements
Completed leases
Total
Accumulated depreciation and amortisation
Opening balance
Depreciation and amortisation for the year
Completed leases
Total
Value at end of year
Buildings
Machinery and equipment
Total
2021
2020
2021
2020
2021
2020
235
-
57
-32
261
63
46
-32
77
184
167
3
82
-17
235
42
38
-17
63
172
188
-
11
-8
191
78
66
-8
135
56
113
32
80
-36
188
56
58
-36
78
111
424
-
68
-40
452
141
111
-40
212
240
281
35
162
-53
424
98
96
-53
141
284
Buildings
The Group’s rental of buildings refers to office and warehouse premises. The leases
usually have a term of between 5 and 10 years.
Machinery and equipment
The Group’s leasing of machinery and equipment mainly relates to cargo ships,
forklifts and cars. The leases usually have a term of between 2 and 5 years.
Amounts recognised in profit/loss
2021
2020
Depreciation and amortisation
Interest expense
Costs related to current lease liabilities
Costs related to low-value leases
Costs related to variable lease payments
111
5
4
3
0
122
96
5
2
0
0
102
In 2021 the Group’s payments attributable to leases amounted to SEK 122 million
(102). These payments include both amounts for leases that are recognised as
lease liabilities and amounts paid for variable lease payments, short-term leases
and low-value leases. No right-of-use asset is recognised for leases with a term of
12 months or less or with underlying assets of low value.
See Note 14 for a maturity analysis of liabilities regarding right-of-use assets.
Holmen Annual Report 2021
71
Notes Note 13
Note 13. Investments in associates, joint ventures and other shares and participations
Profit/loss from associates and joint ventures
Recognised in profit/loss for the year
Stated in other comprehensive income
Total comprehensive income
Group
2021
0
3
3
2020
-6
16
10
Associates and joint ventures
Book value at beginning of year
Business combinations
Investments
Share of earnings
Translation difference
Other
Associates
Joint ventures
Total
Group
Parent company
Group
Parent company
Group
Parent company
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
1 642
-
33
0
-
-
1 620
13
10
-1
-
-
87
-
5
-
-
-
92
87
-
-
-
-
-
87
75
-
3
3
0
0
81
0
-
64
11
0
0
75
64
-
3
-
-
-
67
0
-
64
-
-
-
64
1 717
-
36
3
0
0
1 620
13
74
10
0
0
1 756
1 717
151
-
8
-
-
-
159
87
-
64
-
-
-
151
Book value at end of year
1 675
1 642
Parent company and Group holdings of shares and investments in associates and joint ventures
Corporate ID No.
Registered
office
Number of
holdings
Holding
%*
556036-9398
556504-2826
556017-6678
556016-0953
556594-6984
556594-3015
Vännäs
Lycksele
Arbrå
Örnsköldsvik
Stockholm
Umeå
9 886
683
5 556
990
2 300
2 014
49.4
6.8
13.9
9.9
46.0
40.3
556914-9833
Stockholm
250
50.0
Associates
Harrsele AB
Vattenfall Tuggen AB
Brännälvens Kraft AB
Gidekraft AB
Uni4 Marketing AB
Rebio AB
Other associates
Joint venture
Varsvik AB
Total
Value of
holding in
consolidated
accounts**
Book value
in the parent
company
Holding
%*
Value of
holding in
consolidated
accounts**
Book value
in the parent
company
2021
1 518
90
36
0
20
10
1
1 675
81
1 756
49.4
6.8
13.9
9.9
46.0
40.3
-
90
-
0
2
-
0
92
50.0
67
159
2020
1 493
85
36
0
16
10
1
1 642
75
1 717
-
85
-
0
2
-
0
87
64
151
*The percentage of ownership corresponds to the percentage of votes for the total number of shares.
**The proportion of equity is recognised in the Renewable Energy and Wood Products business areas, at SEK 1 725 million (1 690) and SEK 31 million (27), respectively.
Group
Parent company
Other shares and participations
2021
2020
2021
2020
Book value at beginning of year
Investments
Disposals
Translation difference
Book value at end of year
2
0
0
0
2
1
0
0
0
2
0
-
-
-
0
0
-
0
-
0
The holdings in Brännälvens Kraft AB, Gidekraft AB, Harrsele AB and Vattenfall
Tuggen AB refer to hydro power assets. The holdings entitle the Group to buy
electricity produced at cost price, so the associates only earn a very limited
profit. Purchased electricity is sold to external customers at market price, and the
earnings are stated in the consolidated accounts within the Renewable Energy
business area.
The holding in associate Harrsele AB is recognised in the Group at SEK 1 518
million (1 493). Holmen purchased 515 GWh (568) of electrical power from
Harrsele AB in 2021, giving Holmen an operating profit of SEK 180 million (112)
from market sales. Harrsele AB owns power assets that generate 950 GWh of
electrical power in a normal year. These assets were originally constructed in
1957–58 and the book value of the non-current assets in Harrsele AB amounts
to SEK 155 million (140). The company’s shareholders made a shareholders
contribution during the year of SEK 52 million (20).
Ownership in remaining associates relates to activities in the areas of sales,
research and development.
The interests in Brännälvens Kraft AB, Gidekraft AB and Vattenfall Tuggen AB
are classified as associates even though the holdings are less than 20 per cent,
since shareholder agreements provide significant influence over each company’s
activities.
Ownership in the joint venture, Varsvik AB, relates to wind power operations.
72
Holmen Annual Report 2021
Notes
Note 14. Financial instruments
Non-current financial receivables consist of interest-bearing financial receivables
from other companies, prepayments for credit facilities and the fair value of
non-current derivatives.
Current financial receivables are recognised as fixed income investments and
lending for durations of up to one year, accrued interest income and unrealised
exchange gains and fair values of derivatives. Current financial receivables
essentially have fixed interest periods of under three months, and thus involve a
very limited interest rate risk.
Cash and cash equivalents refers to bank balances and investments that can be
readily converted into cash for a known amount and with a duration of no more
than three months from the date of acquisition, which also means that the interest
rate risk is negligible. Cash and cash equivalents are placed in bank accounts or as
current deposits at banks.
Loans, accrued interest expense, unrealised exchange losses and fair values
of derivatives are stated as financial liabilities. Financial liabilities are largely
interest-bearing.
In addition to the financial assets and liabilities identified above, liabilities relating to
right-of-use assets (see Note 12) and a pension commitment (see Note 18) are also
included in net financial debt. The maturity structure and average interest for the
Group’s liabilities are stated in the section on Risk on pages 46–47. SEK 736 million
of the parent company’s liabilities are due for payment within one year.
All of the Group’s derivatives are covered by ISDA or FEMA agreements, which
entails a right for Holmen to offset assets and liabilities in relation to the same
counterparty in the case of a credit event. Taking into account the terms of the
netting agreement, the net exposure is SEK 946 million (489). Assets and liabilities
are not offset in the report. Recognised derivatives totalled SEK 1 097 million (577)
on the asset side and SEK 151 million (-88) on the liability side.
The ongoing Interest Rate Benchmark Reform only has a marginal impact on
Holmen, since interest derivatives are almost exclusively denominated at the
Swedish reference rate. For such currencies where the Interest Rate Benchmark
Reform is underway, continued hedge accounting will apply while the reform is in
progress. Nevertheless, these hedges are expected to be effective in the future.
No provision has been made for expected credit losses for the financial assets
included in the net liability, based on no losses arising over the past 10 years and
assets held at the balance sheet date being deemed to be of good credit quality.
See Note 16 for information about impairment testing of trade receivables.
The fair value of financial instruments traded on an active market is based on listed
market prices and belongs to measurement level 1 as per IFRS 13. Where there are
no listed market prices, fair value has been calculated using discounted cash flows.
In calculating discounted cash flows, variables used for the calculations, such as
discount rates and exchange rates, are taken from market listings where possible.
In calculating discounted cash flows, the mean of exchange rates and discount
rates is used. These valuations belong to measurement level 2. Other valuations,
for which a variable is based on own assessments, belong to measurement
level 3. Currency options are valued using the Black & Scholes formula, where
appropriate. Holmen uses valuation level 2 when measuring financial instruments
in accordance with IFRS 13.
Fair value in the tables is calculated on the basis of discounted cash flows and
all variables, such as discount rates and exchange rates, are taken from market
listings. The difference between fair value and book value arises because certain
liabilities are not measured at fair value in the balance sheet, and are instead
stated at their amortised cost. In the case of trade receivables and trade payables,
the book value is stated as the fair value, as this is judged to be a good reflection
of the fair value. For further information about financing and quantitative data on
Holmen’s hedge accounting see the section on Risk on pages 46–47 and Note 6.
Note 14
Group
Maturity structure,
undiscounted amounts
Financial liabilities
Derivatives
Derivatives attributable
to working capital
Trade payables
Liabilities relating to
right-of-use assets*
Other financial liabilities
Financial receivables
Derivatives
Derivatives attributable
to working capital
Trade receivables
Other financial
receivables
2022
2023
2024
2025 2026−
-23
-91
-2 836
-4
-17
-
-2
-11
-
-1
-4
-
-1
-4
-
-73
-59
-51
-743 -1 028 -1 025
-36
-39
-915 -1 017
7
4
885
2 393
133
-
547
36
5
32
-
38
6
23
-
37
4
4
-
166
*Liabilitiesrelatingtoright-of-useassetsarenotclassifiedasafinancial
instrument under IFRS 9.
Parent company
Maturity structure,
undiscounted amounts
Financial liabilities
Derivatives
Derivatives attributable
to working capital
Trade payables
Other financial liabilities
Financial receivables
Derivatives
Derivatives attributable
to working capital
Trade receivables
Other financial
receivables
2022
2023
2024
2025
2026−
-23
-4
-2
-1
-1
-91
-2 540
-11
-
-741 -1 635 -1 025
-17
-
-4
-
-4
-
-915 -1 012
7
4
882
2 068
133
-
475
3 947
5
32
-
38
6
23
-
37
4
4
-
164
Holmen Annual Report 2021
73
Notes Note 14
Note 14. Financial instruments, cont.
Group
Financial instruments included in
net financial debt
Non-current financial receivables
Derivatives
Other financial receivables
Current financial receivables
Accrued interest
Derivatives
Other financial receivables
Cash and cash equivalents
Bank balances
Non-current liabilities
Bonds
Derivatives
Other non-current liabilities
Current liabilities
Commercial paper programme
Derivatives
Accrued interest
Other current liabilities
Financial instruments not included
in net financial debt
Other shares and participations
Trade receivables
Derivatives (recognised among
operating receivables)
Trade payables
Derivatives (recognised among
operating liabilities)
Total financial instruments
Recognised at
fair value through
profit/loss*
Hedging
instruments
Recognised at
amortised cost
Total
book value
Fair value
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
-
-
-
-
6
-
6
-
-
-
-
-
-
-
-11
-
-
-11
2
-
34
-
-22
14
-9
-
-
-
-
16
-
16
-
-
-
-
-
-
-
-5
-
-
-5
2
-
19
-
19
-
-
-
-
-
-
-
-6
-
-6
-
-12
-
-
-12
-
-
12
-
12
-
-
-
-
-
-
-
-14
-
-14
-
-
-
-
-
-
-
-
248
248
0
-
33
33
507
507
-
278
278
0
-
27
27
346
346
19
248
268
0
6
33
39
507
507
12
278
290
0
16
27
43
346
346
19
248
268
0
6
33
39
507
507
12
278
290
0
16
27
43
346
346
-3 900
-
-5
-3 905
-3 900
-
-5
-3 905
-3 900
-6
-5
-3 911
-3 900
-14
-5
-3 919
-3 900
-6
-5
-3 911
-3 900
-14
-5
-3 919
-200
-
-10
-503
-713
-500
-
-9
-92
-601
-200
-23
-10
-503
-736
-500
-5
-9
-92
-605
-200
-23
-10
-503
-736
-500
-5
-9
-92
-605
-
2 393
-
2 015
2
2 393
2
2 015
2
2 393
2
2 015
36
1 037
513
-
-
1 072
550
1 072
550
-
-2
36
48
-
-99
938
-
-2 836
-2 496
-2 836
-2 496
-2 836
-2 496
-68
445
-
-
-443
-481
-122
508
-70
1
-122
508
-70
1
939
443
-4 273
-4 336
-3 325
-3 845
-3 325
-3 845
*Refers to instruments compulsorily valued at fair value in accordance with IFRS 9.
74
Holmen Annual Report 2021
Notes
Note 14
Parent company
Financial instruments included in
net financial debt
Non-current financial receivables
Derivatives
Receivables from Group companies
Other financial receivables
Current financial receivables
Accrued interest
Derivatives
Other financial receivables
Cash and cash equivalents
Bank balances
Non-current liabilities
Bonds
Liabilities to Group companies
Derivatives
Current liabilities
Commercial paper programme
Derivatives
Accrued interest
Liabilities to Group companies
Other current liabilities
Financial instruments not included
in net financial debt
Other shares and participations
Trade receivables
Derivatives (recognised among
operating receivables)
Trade payables
Derivatives (recognised among
operating liabilities)
Total financial instruments
Recognised at
fair value through
profit/loss*
Hedging
instruments
Recognised at
amortised cost
Total
book value
Fair value
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
-
-
-
-
-
6
-
6
-
-
-
-
-
-
-
-23
-
-
-
-23
0
-
34
-
-24
10
-6
-
-
-
-
-
16
-
16
-
-
-
-
-
-
-
-5
-
-
-
-5
0
-
19
-
-
19
-
-
-
-
-
-
-
-
-6
-6
-
-
-
-
-
-
-
-
12
-
-
12
-
-
-
-
-
-
-
3 910
246
4 157
0
-
33
33
445
445
-
3 180
275
3 455
0
-
27
27
236
236
19
3 910
246
4 176
0
6
33
39
445
445
12
3 180
275
3 467
0
16
27
43
236
236
19
3 910
246
4 176
0
6
33
39
445
445
12
3 180
275
3 467
0
16
27
43
236
236
-
-
-14
-14
-3 900
-607
-
-4 507
-3 900
-169
-
-4 069
-3 900
-607
-6
-4 513
-3 900
-169
-14
-4 083
-3 900
-607
-6
-4 513
-3 900
-169
-14
-4 083
-
-
-
-
-
-
-
-
-200
-
-10
0
-503
-713
-500
-
-9
-
0
-509
-200
-23
-10
0
-503
-736
-500
-5
-9
-
0
-514
-200
-23
-10
0
-503
-736
-500
-5
-9
-
0
-514
-
2 068
-
1 487
0
2 068
0
1 487
0
2 068
0
1 487
38
1 037
515
-
-
1 072
553
1 072
553
-
-3
35
46
-
-
-2 540
-1 970
-2 540
-1 970
-2 540
-1 970
-101
936
-68
447
-
-
-472
-483
-125
475
-71
-1
-125
475
-71
-1
950
444
-1 057
-1 344
-114
-853
-114
-853
*Refers to instruments compulsorily valued at fair value in accordance with IFRS 9.
Holmen Annual Report 2021
75
Notes Notes 15–17
Note 15. Inventories
Note 17. Equity, parent company
Felling rights
Logs and pulpwood
Raw materials and consumables
Finished products and work
in progress
Electricity certificates and
emission allowances
Total
Group
Parent company
2021
2020
2021
2020
664
355
975
558
369
916
664
307
674
450
331
689
1 778
1 728
1 218
1 176
45
23
22
14
3 818
3 594
2 886
2 659
During the year impairment losses and reversal of previous impairment losses for
finished stock had an effect of SEK 7 million (12) on Group profit, while impairment
losses on other stock had an effect of SEK -5 million (-6). Impairment losses
and reversal of previous impairment losses for finished stock had an effect of
SEK 7 million (5) on the parent company, with impairment losses on other stock
of SEK -3 million (-3).
Note 16. Operating receivables
Trade receivables
Group companies
Associates
Other
Total trade receivables
Current receivables
Derivatives
Prepayments and accrued income
Total other operating receivables
Group
Parent company
2021
2020
2021
2020
-
50
2 343
2 393
425
1 072
179
1 676
-
33
1 982
2 015
446
550
266
1 262
108
50
1 910
2 068
320
1 072
157
1 548
14
33
1 440
1 487
298
553
104
955
Total operating receivables
4 069
3 278
3 616
2 442
Trade receivables are recognised at the amount expected to be received, based on
an individual assessment of each customer. The Group’s trade receivables mainly
consist of receivables from European customers. Trade receivables denominated
in foreign currencies were valued at the balance sheet date. Contract assets
attributable to goods delivered but not yet invoiced that are not included in the item
‘Trade receivables’ amounted to SEK 20 million (36). The provision for expected
credit losses was SEK 28 million (45). During the year, the provision decreased by
SEK 26 million (16) as a result of actual credit losses, and increased by SEK 8 million
(31) as a result of changes in the provision for anticipated or expected credit losses.
At 31 December 2021, SEK 19 million (58) of trade receivables were past due for
more than 30 days. The credit quality of trade receivables that are neither past due
nor impaired is deemed to be good and on a par with previous years.
The fair values of derivatives relate to hedges of future cash flows.
Registered share capital
Number Quotient value
SEKm
31 Dec 2021
Class A
Class B
Total no. of shares
Holding of repurchased
class B shares
Total number of
shares outstanding
45 246 468
117 265 856
162 512 324
-586 639
161 925 685
26
26
1 180
3 058
4 238
Registered share capital
Number Quotient value SEKm
31 Dec 2020
Class A
Class B
Total no. of shares
Holding of repurchased
class B shares
Total number of
shares outstanding
45 246 468
117 265 856
162 512 324
-586 639
161 925 685
26 1 180
26 3 058
4 238
The company’s share capital consists of shares issued in two classes: class A, each
of which carries 10 votes, and class B, each of which carries one vote. In other
respects, there are no restrictions between classes of shares.
Assets and liabilities measured at fair value according to Chapter 4 Section 14a of
the Swedish Annual Accounts Act had an impact of SEK 944 million (490) on parent
company equity. In the consolidated accounts, valuation of derivatives and other
financial instruments had an impact of SEK 930 million (491) on equity.
Decisions on dividends are based on an appraisal of the Group’s profitability, future
investment plans and financial position. The objective is to maintain a strong
financial position and for the Group’s net financial debt as a percentage of equity
not to exceed 25 per cent.
The AGM has at its disposal the company’s earnings amounting to SEK 7 075 629 940.
The Board proposes that the AGM to be held on 30 March 2022 approve a dividend
of SEK 7.50 per share and an extra dividend of SEK 4.00 per share. The proposed
dividend totals SEK 1 862 million. The Board also proposes that the remaining
amount of SEK 5 213 484 562 be carried forward.
In 2021, an ordinary dividend of SEK 7.25 per share (SEK 1 174 million) and an
extra dividend of SEK 3.50 per share (SEK 567 million) were paid.
Net financial debt as a percentage of equity was 9 per cent (10).
Neither the parent company nor any of the subsidiaries are subject to external
capital requirements. For further details about the Group’s capital management
and risk management, see pages 43–47.
76
Holmen Annual Report 2021
Notes
Note 18. Pension obligations
Holmen provides defined benefit pension plans for some office-based employees
in Sweden. Most of these commitments are secured by means of insurance
policies with Alecta. As Alecta cannot provide sufficient information to permit
the ITP plan to be stated in the accounts as a defined benefit plan, it is stated
in accordance with statement UFR 10 of the Swedish Financial Reporting Board
as a defined contribution plan. Some defined benefit obligations over and above
the ITP plan are available for Group management and secured by means of a
pension fund. Occupational pensions for other office-based employees and all
collective agreement workers in Sweden are defined contribution plans. There
are two defined benefit plans in the UK that have been closed to new pension
accruals since 2015. These obligations are recognised in the consolidated
accounts as defined benefit plans in accordance with IAS 19.
Cost recognised in profit/loss
for the year
Defined benefit plans
Personnel costs*
Financial income and costs
Indexation change**
Total defined benefit plans stated
in profit/loss for the year
Defined contribution plans
Personnel costs
Total recognised in profit/loss
for the year
Group
Parent company
2021
2020
2021
2020
-9
2
65
59
-11
2
-
-9
21
0
-
21
-15
0
-
-15
-173
-136
-135
-101
-115
-146
-114
-116
*SEK 27 million (-9) is included in the parent company relating to an item that is
recognised in the Group as an actuarial revaluation in other comprehensive income.
**Change in the index-based price of defined benefit plans in the UK.
Note 18
Plan assets
Fair value of assets at 1 January
Recognised interest income
Expected return excl. recognised
interest income
Real return (parent company)
Administrative expenses
Receipts and outgoings from
employer
Benefits paid
Exchange differences
Fair value of assets at 31 December
Effect of asset ceiling
Pension obligations, net
Plan assets by type are as shown below:
Plan assets
Equities
Bonds and bank account balances
Group
Parent company
2021
2 231
30
2020
2 388
44
210
-
-2
-12
-92
202
2 568
-522
-24
77
-
-1
6
-81
-201
2 231
-118
-48
2021
2020
178
-
-
25
-
-29
-
-
174
-
0
176
-
-
2
-
-
-
-
178
-
-4
Group
Parent company
2021
1 052
1 516
2 568
2020
1 119
1 112
2 231
2021
2020
93
82
174
81
96
178
The plan assets do not include any financial instruments issued by Group
companies or assets used by the Group. All instruments are traded on an active
market. Of equities, 34 per cent relate to the UK, 60 per cent to the rest of Europe
and the US and 6 per cent to the rest of the world. Of bonds, 57 per cent relate to
government bonds and 43 per cent to corporate bonds.
UK
Group
Key actuarial assumptions, Group
(weighted average), %
31 Dec 2021 31 Dec 2020
Cost recognised in other comprehensive income
2021
2020
Return on plan assets excl. recognised interest income
Actuarial gains and losses from changes in
demographic assumptions
Actuarial gains and losses from changes in
financial assumptions
Actuarial gains and losses from experiential
adjustments
Payroll tax
Effect of asset ceiling
Total recognised in other comprehensive income
210
4
77
30
142
-208
5
6
-380
-12
88
-1
-1
-15
The change in the defined benefit obligations and the change in plan assets are
specified in the tables below. Some 90 per cent of the obligations relate to the
pension plans in the UK. The obligations arising out of the pension schemes
in the UK are placed in two trusts. These are governed by boards consisting of
representatives from Holmen and the beneficiaries. Holmen’s UK subsidiaries have
commitments to cover any deficits that exist. In both trusts, the assets exceed the
commitment, but no surplus may be included in the accounts. This adjustment is
referred to as an asset ceiling in tables.
Obligations
Obligations at 1 January
Current service cost
Payroll tax
Interest expense
Actuarial gains/losses
Benefits paid
Indexation change
Exchange differences
Obligations at 31 December
Group
Parent company
2021
2020
2021
2020
-2 161 -2 305
-11
1
-42
-90
93
-
192
-9
0
-28
151
92
65
-179
-2 070 -2 161
-182
-3
-
-2
-
12
-
-
-175
-176
-15
-
-2
-
12
-
-
-182
The weighted average duration is 15 years.
Of the Group’s total obligations, SEK 10 million (8) refers to those that are not
funded, while the rest are wholly or partially funded obligations. Of the parent
company’s obligations, SEK 0 million (4) are secured under the Swedish Pension
Obligations Vesting Act.
Discount rate
Rate of salary increase
Rate of price inflation
2.0
-
2.7
Sweden
1.3
-
3.1
Key actuarial assumptions, Group, %
31 Dec 2021 31 Dec 2020
Discount rate
Rate of salary increase
Rate of price inflation
1.2
3.0
2.0
0.9
2.8
1.8
The discount rate for pension obligations have been established based on high-
quality corporate bonds in the relevant currency and country of the commitment, i.e.
mainly the UK. A discount rate of -0.1 per cent (0.3) and salary levels at the balance
sheet date were used for calculating the amount of the parent company’s pension
obligation. The table below shows how the obligation would be affected in the
event of a change in key actuarial assumptions (- reduces debt, + increases debt).
Group
Sensitivity analysis
31 Dec 2021 31 Dec 2020
Discount rate (+ 0.5%)
Rate of salary increase (+ 0.5%)
Rate of price inflation (+ 0.5%)
Mortality (+ 1 year in life expectancy)
-133
2
98
110
-151
2
112
113
The Group’s payments into the funded defined benefit plans in 2022 are expected
to amount to SEK 5 million.
Multi-employer plans
The year’s premiums for pension insurance policies taken out with Alecta’s ITP 2
plan amounted to SEK 36 million (27) and are included among personnel costs in the
income statement. Holmen’s active members in the plan amounted to 658 people,
which corresponds to 0.17 per cent of the plan’s active members. Alecta’s surplus
can be allocated to policyholders and/or the persons insured. If Alecta’s collective
consolidation falls below 125 per cent or exceeds 150 per cent, measures will be
taken to create the conditions to ensure the level of consolidation returns to the
normal range. In the event of low consolidation, one measure may be to raise the
agreed price for new policy subscriptions and an increase in existing benefits. In the
event of high consolidation, one measure may be to introduce reductions in premiums.
At the end of 2021, Alecta’s collective consolidation level was 172 (148) per cent
and Alecta decided to introduce a premium reduction for 2022. Expected premium
to Alecta in 2022 amount to SEK 29 million, taking the premium reduction into
account.
Holmen Annual Report 2021
77
Notes
Notes 19–21
Note 19. Provisions
Note 21. Collateral and contingent liabilities
Contingent liabilities
Guarantees on behalf of Group
companies
Other contingent liabilities
Total
Group
Parent company
2021
2020
2021
2020
-
64
64
-
67
67
60
62
122
210
55
265
Other contingent liabilities for the Group largely comprise guarantee undertakings
for third parties. Holmen has environmentally related contingent liabilities that
cannot currently be quantified but that could result in future costs.
Group
2021
2020
Book value at beginning of year
Business combinations
Provisions during the year
Utilised during the year
Unutilised amount reversed during the year
Reclassification
Translation differences
Book value at end of year
Of which non-current portion of the provisions
Of which current portion of the provisions
Parent company
Book value at beginning of year
Provisions during the year
Utilised during the year
Unutilised amount reversed during the year
Book value at end of year
Of which non-current portion of the provisions
Of which current portion of the provisions
654
-
6
-169
-50
-32
0
409
409
-
744
120
-261
-5
599
467
132
795
75
53
-158
-55
-55
-1
654
491
163
839
194
-231
-58
744
489
255
Provisions mainly relate to obligations to restore the environment at discontinued
factory sites. SEK 100 million of these provisions are expected to be settled within
three years, while the remainder is expected to be settled over a longer time horizon.
Note 20. Operating liabilities
Trade payables
Group companies
Other
Total trade payables
Group
Parent company
2021
2020
2021
2020
-
2 836
2 836
-
2 496
2 496
70
2 470
2 540
22
1 948
1 970
Current liabilities
Associates
Other
Derivatives
Accruals and deferred income
2
257
122
878
4
242
70
920
Total other operating liabilities
1 259
1 235
2
192
125
587
906
3
208
71
516
799
Total operating liabilities
4 095
3 732
3 446
2 769
All trade payables are due for payment within one year.
Accruals and deferred income in the parent company principally consist of
personnel costs of SEK 231 million (218), discounts of SEK 84 million (82) and
goods and services delivered but not yet invoiced of SEK 68 million (38).
The fair values of derivatives relate to hedges of future cash flows. See Note 14.
78
Holmen Annual Report 2021
Notes Note 22
Note 22. Related parties
Of the parent company’s net sales of SEK 18 186 million (14 187), SEK 964 million
(182) relates to deliveries of goods to Group companies. The parent company’s
purchases of goods from Group companies amounted to SEK 1 722 million (134).
Parent company net sales also include income from the sale of silviculture services
to subsidiaries for an amount of SEK 459 million (427). SEK 2 183 million (2 178) of
expenses for leasing of non-current assets from subsidiaries are recognised in the
parent company.
There are significant financial receivables and liabilities between the parent
company and its Swedish subsidiaries.
The parent company has a related party relationship with its subsidiaries
(see Note 23).
L E Lundbergföretagen AB is a major shareholder in Holmen (see pages 48–49).
Holmen rents office premises for SEK 8 million (6) from Fastighets AB L E Lundberg,
which is a group company within L E Lundbergföretagen AB. In 2021,
Fredrik Lundberg, who is CEO and principal shareholder in L E Lundbergföretagen,
received a fee of SEK 740 000 (710 000) as Board chairman of Holmen. Louise
Lindh, who is the CEO of Fastighets AB L E Lundberg and who is also a party related
to Fredrik Lundberg, received a Board fee of SEK 370 000 (355 000).
Partly owned wind power company Varsvik AB has loans amounting to
SEK 254 million (275).
Transactions with related parties are priced on market terms. The equity holdings
in associates that produce hydro and wind power entitle the Group to buy the
electricity produced at cost price in relation to the shareholding, which means
that the associate only earns a limited profit. Purchased electricity is sold to
external customers at market price, and the earnings are stated in the consolidated
accounts within the Renewable Energy business area.
Transactions with related parties
Group
Associates
Joint venture
Parent company
Subsidiaries
Associates
Joint venture
Sale of goods to
related parties
Purchase of goods
from related parties
Other (e.g. interest,
dividend)
Liability to
related parties
Receivable due
from related parties
2021
265
1
964
265
1
2020
261
14
182
261
13
2021
2020
2021
2020
2021
2020
54
-
1 722
54
-
56
-
134
56
-
0
10
399
0
10
0
11
296
0
11
2
2
680
2
-
4
3
192
3
-
2021
60
254
4 018
60
254
2020
43
275
3 197
43
275
See Note 4 for fees and remuneration paid to members of the Board.
Holmen Annual Report 2021
79
Notes Note 23
Note 23. Investments in Group companies
Accumulated acquisition costs
Value at start of year
Shareholder contributions and investments
Liquidations
Total
Accumulated impairment losses
Value at start of year
Impairment losses for the year
Liquidations
Total
Book value at end of year
Parent company
2021
13 112
31
-312
12 831
2020
17 335
853
-5 077
13 112
1 666
2
-312
1 357
6 648
95
-5 077
1 666
11 474
11 445
The parent company’s impairment losses on investments in Group companies are
stated in the income statement in the line item for ‘Profit/loss from investments in
Group companies’.
Corporate ID No.
Registered
office
Number of
holdings
Holding %*
Book value in the
parent company Holding %*
Book value in the
parent company
2021
2020
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
100
100
100
100
100
0
0
0
0
0
383
2 856
1 527
422
858
2 663
740
276
200
2
9 929
1 519
-
-
0
1
1
4
7
0
7
5
2
1 545
0
0
0
0
0
383
2 856
1 527
422
830
2 663
740
276
200
2
9 901
1 519
-
-
0
1
-
4
7
0
7
5
2
1 545
11 474
11 445
Parent company’s direct holdings
of investments in subsidiaries
Holmen Skog AB
Iggesund Paperboard AB
Holmen Paper AB
Holmen Wood Products AB
Holmen Energi AB
Holmens Bruk AB
Holmen Skog Mitt AB
Holmen Skog Syd AB
Holmen Sågverk AB
Martinsons Såg AB
Holmen Vattenkraft AB
Iggesunds Bruk AB
Ljusnan Vattenkraft AB
Blåbergsliden Vind AB
Other Swedish Group companies
Total Swedish holdings
556220-0658
556088-5294
556005-6383
556099-0672
556524-8456
559165-6615
559165-6623
559165-6631
559165-6672
556218-2856
559165-6664
559165-6656
559165-6680
559138-5181
Örnsköldsvik
Hudiksvall
Norrköping
Hudiksvall
Örnsköldsvik
Stockholm
Stockholm
Stockholm
Stockholm
Skellefteå
Stockholm
Stockholm
Stockholm
Stockholm
1 000
1 000
100
1 000
1 000
1 000
1 000
1 000
1 000
50 000
1 000
1 000
1 000
500
Holmen UK Ltd, UK
Holmen Paper Ltd**
Iggesund Paperboard (Workington) Ltd**
Holmen France S.A.S., France
Holmen GmbH, Germany
Holmen Paper S.A Spain
Iggesund Paperboard Asia Pte Ltd, Singapore
Holmen B.V., Netherlands
AS Holmen Mets, Estonia
Iggesund Paperboard Inc, US
Iggesund Paperboard Asia (HK) Ltd, China
Other non-Swedish Group companies
Total non-Swedish holdings
Total
Workington
London
Workington
Paris
Hamburg
Madrid
Singapore
Amsterdam
Tallinn
Lyndhurst
Hong Kong
1 197 100
-
-
10 000
-
60 000
800 000
35
500
1 000
4 000 000
*The percentage of ownership corresponds to the percentage of votes for the total number of shares.
**Indirect holdings.
80
Holmen Annual Report 2021
Notes Notes 24–25
Note 24. Untaxed reserves
Parent company
Parent company
Untaxed reserves
31 Dec 2020 Appropriations 31 Dec 2021
Untaxed reserves
31 Dec 2020 Appropriations 31 Dec 2021
Accumulated depreciation
and amortisation in excess
of plan
Non-current intangible
assets
Property, plant and
equipment
-13
17
3
5
4
8
-9
20
12
Tax allocation reserves
2015 fiscal year
2016 fiscal year
2017 fiscal year
2019 fiscal year
2020 fiscal year
2021 fiscal year
Group contributions received amounted to SEK 1 495 million (2 513) and Group
contributions paid amounted to SEK -230 million (-1). Total appropriations of profit
amounted to SEK 768 million (1 804).
Total
191
290
470
700
700
-
2 351
2 354
-191
-
-
-
-
680
489
497
-
290
470
700
700
680
2 840
2 852
Note 25. Cash flow statement
Interest paid and
dividends received
Dividends received
Interest received
Interest paid
Total
Group
Parent company
2021
2020
2021
2020
1
8
-39
-30
-
11
-40
-29
382
26
-36
371
284
24
-35
273
The change in current liabilities mostly relates to borrowing within the Group’s
commercial paper programme. In 2021, a number of different short-term loans
totalling SEK 2 300 million (3 528) were raised within the Group’s commercial
paper programme, and SEK 2 600 million (5 478) was repaid. See Note 14 for a
breakdown of cash and cash equivalents.
Group
Bonds
Commercial paper
Other financial liabilities
Liabilities relating to
right-of-use assets
Pension obligations
Financial liabilities*
2019
2 000
2 450
52
184
46
4 733
Business
combination
New
leases
-
-
173
34
-
207
-
-
-
163
-
163
Cash
flow
1 900
-1 950
-106
-99
-13
-268
Currency
and market
revaluation
-
-
7
5
15
27
2020
3 900
500
126
287
48
4 860
New
leases
-
-
-
67
-
67
Cash
flow
500
-300
-89
-115
-8
-12
Currency
and market
revaluation
-
-
11
5
-16
2021
4 400
200
47
244
24
0
4 915
*Including liabilities relating to right-of-use assets and pension commitments.
Parent company
Bonds
Commercial paper
Liabilities to Group
companies
Other financial liabilities
Pension obligations
Financial liabilities*
*Including pension obligations.
2019
Cash flow
Currency
and market
revaluation
2020
Cash flow
Currency
and market
revaluation
2 000
2 450
476
47
0
4 973
1 900
-1 950
-307
-26
-1
-384
-
-
-
7
4
3 900
500
169
28
4
11
4 601
500
-300
428
-
-5
623
-
-
10
14
2
26
2021
4 400
200
607
42
0
5 250
Holmen Annual Report 2021
81
Notes Notes 26–27
Note 26. Business combinations
On 1 October 2020 Holmen completed the acquisition of Martinsons, one of
Sweden’s leading players in sawn and engineered wood products. In 2021,
the final purchase price, for 100 per cent of the shares, was determined to be
SEK 858 million. The acquired assets and assumed liabilities are presented in
the table below. Goodwill of SEK 358 million is recognised in conjunction with
the acquisition.
Acquired net assets
Non-current intangible assets
Other non-current assets
Net deferred tax
Working capital
Net financial debt
Identifiable assets, net
Goodwill
Total purchase price
SEKm
140
531
-55
6
-122
499
358
858
Goodwill relates to the value of integrating Holmen’s own forest with its own
industry and other intangible assets relate to the value of the wood supply business
included in the acquisition. Recognised goodwill is not tax deductible. The fair
value of intangible assets other than goodwill are amortised over seven years.
Note 27. Critical accounting estimates
and judgements
When preparing financial statements the company’s management is required
to make estimates and judgements that have an effect on the stated amounts.
The estimates and judgements that, in the view of the company’s management,
are of importance for the amounts stated in the annual accounts, and that are
at significant risk of being altered by future events and new information, mainly
include the following.
Forest assets
The book value of the Group’s forest assets at 31 December 2021 was
SEK 47 080 million (43 202), divided between SEK 29 204 million (28 663 ) for
forest land and SEK 17 876 million (14 538) for biological assets. A deferred
tax liability of SEK 9 664 million (8 840) has been recognised relating to the
forest assets. The valuation of the forest assets is based on detailed data about
transactions and pricing statistics published by different market operators. The
valuation takes account of where in the country the forest land is located and
differences in the forest in terms of the volume of standing timber and site quality.
The book value of the forest assets will be affected by changes in transaction
prices for forest properties and by how the volume of standing timber develops.
The value of the forest assets is allocated in the balance sheet to growing trees,
which are recognised as a biological asset, and forest land. How much of the value
is allocated to biological assets is established by calculating the present value
of expected future cash flows from growing trees based on estimates of future
harvest volumes, price and cost development and discount rate. See Note 7 and
Note 9 for further information.
Impairment testing of non-current assets and goodwill
Non-current assets and goodwill are tested for impairment annually. The
calculations are based on current market conditions. Changes in conditions may
have an effect on the estimated recoverable amount applied in connection with
future impairment tests.
Pension obligations
The Group has benefit-based pension obligations measured at SEK 2 070 million
(2 161) and SEK 2 568 million (2 231) in plan assets set aside to cover such
obligations. The value of pension obligations is estimated on the basis of
assumptions regarding discount rates, inflation and demographic factors.
These commitments are usually updated annually, which affects the Group’s
comprehensive income and the recognised pension provision. See Note 18.
Provisions
Obligations that may result in costs for Holmen are evaluated on an ongoing
basis to assess the need for a provision. Uncertainty in the assessment mainly
relates to the date and size of the future cost. The Group mainly has provisions for
uncertainty related to obligations for environmental restoration. See Note 19.
Taxes
Holmen has claimed group relief in the parent company related to tax losses
in Spanish subsidiaries that was liquidated. The deductions correspond to
SEK 389 million in tax, but no tax receivable has been recognised.
82
Holmen Annual Report 2021
Notes ProPosed aPProPriation
of Profits
Appropriation of profits
The following earnings of the parent company are at the disposal of the AGM:
Net profit for the 2021 financial year
Retained earnings
The Board of Directors proposes that the shareholders be paid
in part, an ordinary dividend of SEK 7.50 per share (161 925 685 shares),
and in part, an extra dividend of SEK 4.00 per share (161 925 685 shares)
and that the remaining amount be carried forward
The Board of Holmen AB has proposed that the 2022 AGM resolve in favour
of paying an ordinary dividend of SEK 7.50 per share, and an extra dividend of
SEK 4.00 per share, for a total of SEK 1 862 million. In 2021, an ordinary dividend
of SEK 7.25 per share and an extra dividend of SEK 3.50 per share were paid. The
proposal complies with the Board’s policy, in that decisions on dividends are to
be based on an appraisal of the Group’s profitability, future investment plans and
financial position.
The proposed dividend corresponds to 62 per cent of net profit for 2021 for the
Group and means that 4.0 per cent of equity in the Group at 31 December 2021 will
be paid out by way of dividend.
The Board has established that the Group should have a strong financial position,
with net financial debt not exceeding 25 per cent of equity. At 31 December 2021 it
amounted to 9 per cent. The proposed dividend would increase net debt to equity
by 4 percentage points.
Holmen AB’s equity at 31 December 2021 amounted to SEK 12 990 million, of
which non-restricted equity was SEK 7 076 million. Assets and liabilities measured
at fair value according to Chapter 4 Section 14a of the Swedish Annual Accounts
Act had an impact of SEK 944 million on equity. The Group’s equity at 31 December
2021 amounted to SEK 46 992 million. In accordance with IFRS, no distinction is
made at Group level between restricted and non-restricted equity.
SEK
2 089 791 594
4 985 838 346
7 075 629 940
1 214 442 638
647 702 740
1 862 145 378
5 213 484 562
The Board considers that payment of a dividend of the amount proposed is
justifiable in view of the demands made on the company and the Group by the
nature, extent and risks associated with the business in terms of the amount of
equity required, and taking into account the need for consolidation, liquidity and
financial position in other respects. The financial position will remain strong after
payment of the proposed dividend and is considered to be fully adequate to enable
the company to fulfil its obligations in both the short and the long term, as well as to
finance such investments as may be necessary.
The Board and CEO declare that the annual accounts were prepared in accordance
with generally accepted accounting principles in Sweden and the Group’s con-
solidated accounts were prepared in accordance with the international accounting
standards referred to in Regulation (EC) No 1606/2002 of the European Parliament
and of the Council of 19 July 2002 on the application of international accounting
standards. The annual report and the Group’s consolidated accounts provide a
true and fair view of the performance and financial position of the parent company
and the Group. The administration report for the parent company and the Group
provides a true and fair view of the development of the operations, financial position
and performance of the Group and the parent company and also describes material
risks and uncertainties to which the parent company and the other companies in
the Group are exposed.
Proposed appropriation of profits
Holmen Annual Report 2021
83
Signatures
The annual accounts and the consolidated accounts were approved for publication by the Board in its decision of 18 February 2022. The Group’s consolidated income
statement and balance sheet and the parent company’s income statement and balance sheet will be presented for adoption at the AGM to be held on 30 March 2022.
Stockholm, 18 February 2022
Fredrik Lundberg
Chairman
Carl Bennet
Board member
Lars G Josefsson
Board member
Lars Josefsson
Board member
Alice Kempe
Board member
Louise Lindh
Board member
Ulf Lundahl
Board member
Henriette Zeuchner
Board member
Henrik Sjölund
Board member and
Chief Executive Officer
Steewe Björklundh
Board member,
employee representative
Kenneth Johansson
Board member,
employee representative
Tommy Åsenbrygg
Board member,
employee representative
Our audit report was submitted on 22 February 2022.
PricewaterhouseCoopers AB
Magnus Svensson Henryson
Authorised Public Accountant
Auditor in Charge
Robert Söderlund
Authorised Public Accountant
84
Holmen Annual Report 2021
Signatures
Auditor’s report
To the general meeting of shareholders of Holmen AB, corp. id 556001-3301
Report on the annual accounts and consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts of Holmen AB for
the year 2021, except for the corporate governance statement and the sustainabili-
ty report on pages 38–42 and 31 and 34–47, respectively. The annual accounts
and consolidated accounts of the company are included on pages 2, 6–9, 14–15,
34–84 and 88–89 of this document.
In our opinion, the annual accounts have been prepared in accordance with the An-
nual Accounts Act, and present fairly, in all material respects, the financial position
of the parent company as of 31 December 2021 and its financial performance and
cash flow for the year then ended in accordance with the Annual Accounts Act. The
consolidated accounts have been prepared in accordance with the Annual Accounts
Act and present fairly, in all material respects, the financial position of the Group as
of 31 December 2021 and its financial performance and cash flow for the year then
ended in accordance with International Financial Reporting Standards (IFRS), as
adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the
corporate governance statement and the sustainability report on pages 36–47
and 29–35, respectively. The statutory administration report is consistent with
the other parts of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of shareholders adopts the
income statement and balance sheet for the parent company and the Group.
Our opinions in this report on the annual accounts and consolidated accounts are
consistent with the content of the additional report that has been submitted to the
Board of the parent company and the Group in accordance with the Audit Regula-
tion (537/2014) Article 11.
Basis of opinion
We have conducted our audit in accordance with the International Standards on
Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsi-
bilities under these standards are further described in the Auditor’s Responsibili-
ties section. We are independent of the parent company and the Group in accord-
ance with professional ethics for accountants in Sweden and have otherwise ful-
filled our ethical responsibilities in accordance with these requirements. This in-
cludes, based on the best of our knowledge and belief, that no prohibited services
referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to
the audited company or, where applicable, its parent company or its controlled
companies within the EU.
We believe that the audit evidence we have obtained is sufficient and adequate as a
basis for our opinion.
Other matters
The audit of the annual accounts and consolidated accounts for the 2020 financial
year was performed by another auditor who submitted an auditor’s report dated
1 March 2021, with unmodified opinions in the Report on the annual accounts and
consolidated accounts.
Our audit approach
Audit scope
We have designed our audit by determining the materiality level and assessing the
risk of material misstatement in the financial statements. We have considered where
the Managing Director and the Board of Directors have made significant accounting
estimates about future events or outcomes that are inherently uncertain. In the
audit, we have also addressed the risk that the Board of Directors and the Managing
Director may have overridden internal controls, including considering whether there
is evidence of systematic deviations that could indicate irregularities.
We have designed our audit to enable us to provide an opinion on the financial
statements as a whole, taking into account how the Group is organised, the pro-
cesses for financial reporting and the industry in which the operations are active.
Materiality
The scope of our audit has been influenced by our application of materiality.
An audit is designed to obtain reasonable assurance about whether the financial
statements are free from material misstatement. Misstatements may arise due
to fraud or error. They are considered material if they, individually or in aggregate,
could reasonably be expected to influence the economic decisions of users taken
on the basis of the financial statements.
Based on our professional judgement, we have determined quantitative thresh-
olds for materiality concerning the financial statements as a whole. With the help
of these and qualitative considerations, we have established the audit orientation
and scope and the character and point in time for our audit procedures. Quantita-
tive thresholds for materiality have also been used to assess the effect of potential
misstatements, individual and aggregated, in the financial statements as a whole.
Key audit matters
Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated
accounts for the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consoli-
dated accounts as a whole, but we do not provide a separate opinion on these matters.
Revenue recognition
How our audit addressed the key audit matter
Net sales amount to SEK 19 479 million and are a material item in the
income statement.
Our audit procedures have included, but were not limited to, the activities listed below.
We have:
The Group has various types of revenue, which largely consist of
goods such as paper, paperboard, timber, wood products and pulp-
wood that are sold to customers. Sales of goods are transaction-rich,
put requirements on bookkeeping, monitoring and internal controls.
The services provided are limited and primarily relate to forest man-
agement services and within construction, such as installation work.
The various revenue streams have different characteristics, leading to
separate processes for revenue recognition, which have been exam-
ined individually.
• Evaluated the Group’s processes for the recognition of the various revenue streams.
• Performed tests of a sample of controls in the processes for revenue recognition.
• Tested a selection of transactions against supporting underlying agreements and
payments, as well as performed accounts receivable confirmation.
• Tested a sample of transactions to assess whether revenue has been recognised in
the appropriate period.
• Reviewed the information presented in the annual accounts and assessed whether it
provides sufficient information according to the regulatory requirements.
Valuation of forest assets
How our audit addressed the key audit matter
The Group’s forest assets amount to SEK 47 080 million and constitute
a significant item in the consolidated and the parent company’s balance
sheets.
The assets are divided into biological assets that are recognised in ac-
cordance with IAS 41 Agriculture, and properties that are recognised in
accordance with IAS 16 Property, Plant and Equipment.
A description of the measurement of value of forest assets and impor-
tant assumptions is presented in Note 9.
The measurement process is complex since it requires assessments
and assumptions in respect of, inter alia, market statistics, and the
breakdown of the total value of land and biological assets.
Significant areas judgment include the scope and completeness of mar-
ket statistics, local market prices and discount rates as well as timber
prices and felling costs. The measurement is classified as a Level 3
measurement in accordance with IFRS 13. In view of the above, we
consider that measurement of the Group’s forest assets constitutes a
key audit matter.
Our audit procedures have included, but were not limited to, the activities listed below.
We have:
• Evaluated and checked the Group’s process and methods for measuring value of
forest assets.
• Checked the allocation of value between biological assets and land assets.
• Evaluated material assumptions that form the basis of the measurement of forest
assets and biological assets.
• Verified the measurement model’s mathematical correctness and the company’s
process for preparing input data.
• Checked the Group’s calculation of the cost of capital and evaluated the measurement
model’s sensitivity to changes in the cost of capital.
• Compared outcomes in the measurement with external observable data points and
over time.
• Checked that the disclosures in Note 9 match the input data and the assumptions used
in the measurement model.
Holmen Annual Report 2021
85
Auditor’s Report Other information than the annual accounts and consolidated
accounts
This document also contains information other than the annual accounts and
consolidated accounts, which is found on pages 3–5, 10–13, 16–33, 85–87 and
90–98 (“other information”). The remuneration report that we obtained prior to
the date of this auditor’s report also constitutes other information. The Board of
Directors and the Managing Director are responsible for other information.
Our opinion on the annual accounts and consolidated accounts does not cover
other information and we do not express any form of assurance conclusion
regarding this other information.
In connection with our audit of the annual accounts and consolidated accounts,
our responsibility is to read the other information identified above and consider
whether the information is materially inconsistent with the annual accounts and
consolidated accounts. In this procedure, we also take into account our knowl-
edge otherwise obtained in the audit and assess whether Other information other-
wise appears to be materially misstated.
If we, based on the work performed concerning this Other information, conclude
that the Other information contains a material misstatement, we are required to
report this. We have nothing to report in this regard.
The Board of Directors’ and Managing Director’s responsibilities
The Board of Directors and the Managing Director are responsible for the prepa-
ration of the annual accounts and consolidated accounts and that they give a fair
presentation in accordance with the Annual Accounts Act and, concerning the
consolidated accounts, in accordance with IFRS as adopted by the EU. The Board
of Directors and the Managing Director are also responsible for such internal con-
trol as they determine is necessary to enable the preparation of annual accounts
and consolidated accounts that are free from material misstatement, whether due
to fraud or error.
In preparing the annual accounts and consolidated accounts, the Board of Direc-
tors and the Managing Director are responsible for assessing the company’s and
the Group’s ability to continue as a going concern. They disclose, as applicable,
matters related to going concern and using the going concern basis of accounting.
The going concern assumption applies unless the Board and the Managing Director
intend to liquidate the company or cease to operate, or have no realistic alternative
to doing so.
The auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether the annual
accounts and consolidated accounts as a whole are free from material misstate-
ment, whether due to fraud or error, and to issue an auditor’s report that includes
our opinions. Reasonable assurance is a high level of assurance, but is not a guar-
antee that an audit conducted in accordance with ISAs and generally accepted
auditing standards in Sweden will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material
if, individually or aggregated, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these annual accounts and
consolidated accounts.
A further description of our responsibility for the audit of the annual accounts and
consolidated accounts is available on the website of the Swedish Inspectorate of
Auditors: www.revisorsinspektionen.se/revisornsansvar. This description is part
of the auditor’s report.
Report on other legal and regulatory requirements
Opinions
In addition to our audit of the annual accounts and consolidated accounts, we
have also audited the administration of the Board of Directors and the Managing
Director of Holmen AB for the year 2021 as well as the proposed appropriations
of the company’s profit or loss.
We recommend to the general meeting of shareholders that the profit be appro
priated in accordance with the proposal in the statutory administration report
and that the members of the Board of Directors and the Managing Director be
discharged from liability for the financial year.
Basis of opinion
We have conducted our audit in accordance with generally accepted auditing
standards in Sweden. Our responsibilities under those standards are further de-
scribed in the Auditor’s Responsibilities section. We are independent of the parent
company and the Group in accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is sufficient and adequate as
a basis for our opinion.
The Board of Directors’ and Managing Director’s responsibilities
Responsibility for the proposed appropriation of the company’s profit or loss rests
with the Board of Directors. In conjunction with the proposal of a dividend, this
includes an assessment of whether the dividend is justifiable considering the
requirements which the company’s and the Group’s type of operations, size and
risks place on the size of the parent company’s and the Group’ equity, consolida-
tion requirements, liquidity and position in general.
86
Holmen Annual Report 2021
The Board of Directors is responsible for the organisation and administration of
the company’s affairs. This includes continuous assessment of the company’s and
the Group’s financial situation and ensuring that the company’s organisation is de-
signed so that the accounting, management of assets and the company’s financial
affairs otherwise are controlled in a reassuring manner. The Managing Director is
responsible for day-to-day management in accordance with the guidelines and
instructions issued by the Board, and is required to take such actions as may be
necessary to ensure compliance with the company’s statutory accounting obliga-
tions and satisfactory management of funds.
The auditor’s responsibility
Our objective for the management audit, and thus for our opinion on release from
liability, is to obtain audit evidence which enables us to assess with reasonable
assurance whether any member of the Board or the Managing Director has in any
material respect:
taken any action or been guilty of any neglect that could give rise to a liability to
indemnify the company
otherwise acted in contravention of the Companies Act, the Annual Accounts Act
or the Articles of Association.
Our objective in respect of our audit of the proposed appropriation of the compa-
ny’s profit or loss, and thus for our opinion on the same, is to obtain reasonable
assurance that the proposed appropriation is consistent with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards in
Sweden will always detect actions or omissions that can give rise to liability to the
company, or that the proposed appropriations of the company’s profit or loss are
not in accordance with the Companies Act.
A further description of our responsibility for the audit of the administration is avail-
able on the website of the Swedish Inspectorate of Auditors: www.revisorsinspek-
tionen.se/revisornsansvar. This description forms part of the statutory annual report.
The auditor’s opinion on the ESEF report
Opinion
In addition to our audit of the annual accounts and consolidated accounts, we have
also examined whether the Board of Directors and the Managing Director have pre-
pared the annual accounts and the consolidated accounts in a format that facilitates
uniform electronic reporting (the ESEF report) according to Chapter 16, Section 4 a
of the Securities Market Act (2007:528) for Holmen AB for the year 2021.
Our examination and our opinion refer only to the statutory requirement.
In our opinion, the ESEF report has been prepared in a format that in all significant
respects facilitates uniform electronic reporting.
Basis of opinion
We have conducted our examination in accordance with FAR’s recommendation,
RevR 18 Review of the ESEF report. Our responsibilities under this recommenda-
tion are further described in the Auditor’s Responsibilities section. We are inde-
pendent of Holmen AB in accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical responsibilities in accordance with
these requirements.
We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for ensuring that
the ESEF report has been prepared in accordance with Chapter 16, Section 4 a of
the Securities Market Act (2007:528) and for ensuring that there is such internal
control as the Board of Directors and the Managing Director regard as necessary
to prepare the ESEF report in a manner that is free from material misstatement,
whether due to fraud or error.
The auditor’s responsibility
Our responsibility is to express an opinion with reasonable assurance on whether,
based on our examination, the ESEF report, in all significant respects, has been
prepared in a format that satisfies the requirements of Chapter 16, Section 4 a of
the Securities Market Act (2007:528).
RevR 18 requires that we plan and implement our audit procedures to achieve
reasonable assurance that the ESEF report has been prepared in a format that
satisfies these requirements.
Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with RevR 18 and generally accepted auditing
standards in Sweden will always detect a material misstatement when it exists.
Misstatements may arise from fraud or error and are considered material if, indi-
vidually or when aggregated, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the ESEF report.
The auditing firm applies ISQC 1 (International Standard on Quality Control) Quali-
ty Control for audit firms that audit and review financial reports and perform other
assurance engagements, as well as related services and accordingly maintains a
comprehensive system of quality control including documented policies and pro-
cedures regarding compliance with ethical requirements, professional standards
and applicable legal and regulatory requirements.
Auditor’s Report The review involves performing various procedures to obtain evidence that the
ESEF report has been prepared in a format that facilitates uniform electronic re-
porting of the annual accounts and consolidated accounts. The auditor selects
which procedures are to be performed, including assessing the risks of material
misstatement in the reporting, whether due to fraud or error. In making these risk
assessments, the auditor considers the parts of the internal control relevant to
how the Board of Directors and the Managing Director prepare the basis for de-
signing audit procedures that are appropriate in view the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the internal con-
trol. The review also includes an evaluation of the appropriateness and reasona-
bleness of the Board of Directors’ and the Managing Director’s assumptions.
The audit procedures primarily comprise a technical validation of the ESEF report;
i.e. whether the ESEF report fulfils the technical specifications stated in the Europe-
an Commission’s delegated regulation (EU) 2019/815 and checking that the ESEF
report complies with the audited annual accounts and consolidated accounts.
The review also includes an assessment of whether the ESEF report has been
marked with iXBRL, which enables a fair and complete machinereadable version
of the consolidated income statements, balance sheets and statements of equity,
as well as the cash flow statement.
Auditor’s opinion regarding the corporate governance
statement
The Board of Directors is responsible for ensuring that the corporate governance
statement on pages 38–42 has been prepared in accordance with the Annual
Accounts Act.
Focus and scope of the examination
Our examination has been conducted in accordance with FAR’s auditing standard
RevR 16 The Auditor’s Examination of the Corporate Governance Statement. This
means that our examination of the corporate governance statement is different and
substantially less in scope than an audit conducted in accordance with International
Standards on Auditing and generally accepted auditing standards in Sweden. We be-
lieve that this examination has provided us with sufficient basis for our opinions.
Opinion
A corporate governance statement has been prepared. Disclosures in accordance
with Chapter 6, Section 6, second paragraph, points 2–6 of the Annual Accounts
Act and Chapter 7, Section 31, second paragraph of the same law are consistent
with the other parts of the annual accounts and the consolidated accounts and are
in accordance with the Annual Accounts Act.
Auditor’s opinion regarding the statutory sustainability
report
Assignment and division of responsibilities
The Board of Directors is responsible for ensuring that the sustainability report on
pages 8–9, 31, 34–47, 40–42 and 44–45 has been prepared in accordance with
the Annual Accounts Act.
Focus and scope of the examination
Our examination has been conducted in accordance with FAR’s auditing standard
RevR 12 The auditor’s opinion regarding the statutory sustainability report. This
means that our examination of the sustainability report is different and substan-
tially more limited in scope compared with the focus and scope of an audit con-
ducted in accordance with International Standards on Auditing, and generally
accepted auditing standards in Sweden. We believe that the examination has
provided us with sufficient basis for our opinion.
Opinion
A statutory sustainability report has been prepared.
PricewaterhouseCoopers AB, Torsgatan 21, SE-113 97 Stockholm,
was appointed auditor of Holmen AB by the general meeting
of the shareholders on 22 April 2021 and has been the company’s auditor from that date.
Stockholm, 22 February 2022
PricewaterhouseCoopers AB
Magnus Svensson Henryson
Authorised Public Accountant
Auditor in Charge
Robert Söderlund
Authorised Public Accountant
review of sustainAbility
report
Holmen’s Sustainability Report, as defined on page 2 of Holmen’s Annual
Report 2021, has been subject to a limited review in accordance with ISAE
3000 Assurance engagements other than audits or reviews of historical
financial information.
A complete assurance report on the Sustainability Report is available at
holmen.com.
The assurance report contains the following conclusion:
Based on the limited assurance procedures we have performed,nothing
has come to our attention that causes us to believe that the Sustainabili-
ty Report is not prepared, in all material respects,in accordance with the
criteria defined by Group management.
Stockholm, 22 February 2022
PricewaterhouseCoopers AB
Magnus Svensson Henryson
Authorised Public Accountant
Auditor in Charge
Isabelle Hammarström
Expert member of FAR
Auditor’s Report & Review of Sustainability Report
Holmen Annual Report 2021
87
Board of directors
1. Fredrik Lundberg
5. Lars Josefsson
Employee representatives
Chairman. Djursholm. Born in 1951.
Member since 1988. M.Sc. in Engineering
and M.Sc. in Economics. Tech. h.c. and
D. Econ. h.c. President and CEO of
L E Lundbergföretagen AB.
Other significant appointments:
Chairman of Hufvudstaden AB and AB
Industrivärden. Deputy Chairman of
Svenska Handelsbanken AB. Board
member of L E Lundbergföretagen AB
and Skanska AB.
Shareholding: 1 679 448 shares.
Shareholding of L E Lundbergföretagen:
55 244 000 shares.
2. Henrik Sjölund
Norrköping. Born in 1966.
Member since 2014. M.Sc. in
International Economics. President
and CEO.
Other significant appointments:
Chairman of The Swedish Forest
Industries Federation and SKGS.
Board member of The Confederation
of Swedish Enterprise.
Shareholding: 52 155 shares.
3. Carl Bennet
Gothenburg. Born in 1951.
Member since 2009. M.Sc. in Economics.
Med. dr. h.c. and Tekn. dr. h.c. CEO of
Carl Bennet AB. Former President and
CEO of Getinge AB. Chairman of
Elanders AB and Lifco AB.
Other significant appointments:
Deputy Chairman of Arjo AB and
Getinge AB. Board member of
L E Lundberg företagen AB.
Shareholding: 200 000 shares.
4. Lars G Josefsson
Stockholm. Born in 1950.
Member since 2011. M.Sc. in Engineering.
Former President and CEO of Vattenfall.
Other significant appointments:
Chairman of Watts 2 You AB. Member
of Robert Bosch International Advisory
Committee, Hand in Hand Inter national,
ARC Power Ltd. Board member of
Royal Swedish Academy of Engineering
Sciences (IVA).
Shareholding: 10 000 shares.
Norrköping. Born in 1953.
Member since 2016. M.Sc. in Engineering.
Other significant appointments:
Chairman of TimeZynk. Board member
of Vestas, Ouman and Nevel.
Shareholding: 7 000 shares.
10. Steewe Björklundh
Hudiksvall. Born in 1958.
Member since 1998. Employee
representative, LO. Chairman of the
GS union, Iggesund Sawmill.
11. Kenneth Johansson
Söderköping. Born in 1958.
Member since 2004.
Employee representative, LO.
12. Tommy Åsenbrygg
Skebobruk. Born in 1968.
Member since 2015.
Employee representative, PTK.
Shareholding: 200 shares.
13. Martin Nyman
Ölsund. Born in 1978.
Deputy member since 2021.
Employee representative, PTK.
Chairman of Unionen Club,
Holmen Iggesund.
Shareholding: 760 shares.
14. Daniel Hägglund
Örnsköldsvik. Born in 1982.
Deputy member since 2014.
Employee representative, PTK.
15. Christer Johansson
Iggesund. Born in 1959.
Deputy member since 2017.
Employee representative, LO.
Chairman of the Swedish Paper
Workers Union branch 15.
6. Alice Kempe
Torshälla. Born in 1967.
Member since 2019. M.Sc. in Forestry.
Other significant appointments:
Chairwoman of the Kempe Foundations.
Board member of MoRe Research
Örnsköldsvik AB, SweTree Technologies
AB and Arevo AB.
Shareholding: 218 792 shares.
7. Louise Lindh
Stockholm. Born in 1979.
Member since 2010. M.Sc. in Economics.
CEO and Board member of
Fastighets AB L E Lundberg.
Other significant appointments:
Chairman of J2L Holding AB.
Board member of Hufvudstaden AB
and L E Lundbergföretagen AB.
Shareholding: 200 000 shares.
8. Ulf Lundahl
Lidingö. Born in 1952.
Member since 2004.
B.A. in Legal Science and B.Sc. (Econ).
Other significant appointments:
Chairman of Attendo AB, Fidelio Capital
AB, and Nordstjernan Kredit AB.
Board member of Indutrade AB.
Shareholding: 8 000 shares.
9. Henriette Zeuchner
Stockholm. Born in 1972.
Member since 2015.
M.Sc. in Economics and Bachelor of Laws.
Other significant appointments:
Board member of the NTM Group.
Shareholding: 1 600 shares.
Auditors: PricewaterhouseCoopers AB
Principal Auditor:
Magnus Svensson Henryson
Authorised public accountant.
88
Holmen Annual Report 2021
Board of Directors
The information relates to personal and related party shareholdings at 31 December 2021.
1
4
7
10
13
2
5
8
11
14
3
6
9
12
15
Board of Directors
Holmen Annual Report 2021
89
Group manaGement
2
6
3
7
4
8
10
11
12
4. Johan Nellbeck
Senior Vice President
Paperboard
Born in 1964.
Joined Holmen in 2019.
Shareholding: 4 000 shares.
7. Fredrik Nordqvist
Senior Vice President
Renewable Energy
Born in 1971.
Joined Holmen in 2011.
Shareholding: 820 shares.
10. Gunilla Rolander
Senior Vice President
Human Resources
Born in 1966.
Joined Holmen in 2013.
Shareholding: 4 398 shares.
1
5
9
1. Henrik Sjölund
President and CEO
Born in 1966.
Joined Holmen in 1993.
Shareholding: 52 155
shares. Henrik Sjölund has
no significant sharehold-
ings or ownership in compa-
nies with which the Group
has important business re-
lations. Further information
is provided on page 88.
5. Lars Lundin
Senior Vice President Paper
Born in 1966.
Joined Holmen in 2018.
Shareholding: 2 250 shares.
2. Anders Jernhall
6. Johan Padel
Executive Vice President,
Chief Financial Officer
Born in 1970.
Joined Holmen in 1997.
Shareholding: 27 527 shares.
Senior Vice President Wood
Products
Born in 1966.
Joined Holmen in 2014.
Shareholding: 1 200 shares.
3. Sören Petersson
Senior Vice President Forest
Born in 1969.
Joined Holmen in 1994.
Shareholding: 16 200 shares.
90
Holmen Annual Report 2021
Group management
8. Stina Sandell
Senior Vice President
Sustainability and
Communications
Born in 1966.
Joined Holmen in 2017.
Shareholding: 765 shares.
9. Nils Ringborg
Senior Vice President
International Affairs
Born in 1958.
Joined Holmen in 1988.
Shareholding: 7 400 shares.
11. Ola Schultz-Eklund
Senior Vice President
Technology
Born in 1961.
Joined Holmen in 1994.
Shareholding: 2 740 shares.
12. Henrik Andersson
Senior Vice President
Legal Affairs
Secretary of the Board of
Directors.
Born in 1971.
Joined Holmen in 2008.
Shareholding: 3 782 shares.
The information relates to personal and related party shareholdings at 31 December 2021.
Key figures
Holmen uses performance measures in its reporting in addition
to the measures defined within IFRS regulations, or directly in
the income statement and balance sheet, in order to illustrate the
company’s financial position and performance and to increase
comparability between different periods and other companies.
Below are calculations used to arrive at the performance measures
applied within the Group. For further information, see also Definitions.
ESMA’s (European Securities and Markets Authority) ‘Guidelines
– Alternative Performance Measures’ are used. Alternative
performance measures published in this report should not be
regarded as replacing the financial measures defined under IFRS
regulations, but rather as a complement and they do not need
to be comparable in the same way with defined performance
measures published by other companies.
Key figures, SEKm
2021
2020
2019
2018
2017
Operating profit, EBITDA and items affecting comparability
EBITDA
Depreciation and amortisation according to plan
Operating profit/loss excluding items affecting comparability
Items affecting comparability*
Operating profit
Operating margin
Operating profit/loss excluding items affecting comparability
Net sales
Operating margin, %
Capital employed
Equity
Net financial debt
Capital employed
Return on capital employed
Operating profit/loss excluding items affecting comparability
Average capital employed
Return, %
Return on equity
Profit after tax
Average equity
Return, %
Net financial debt
Non-current financial liabilities
Non-current liabilities relating to right-of-use assets
Current financial liabilities
Current liabilities relating to right-of-use assets
Pension obligations
Non-current financial receivables
Current financial receivables
Cash and cash equivalents
Net financial debt
Debt/equity ratio
Net financial debt
Equity
Net debt as % of equity
Equity/assets ratio
Equity
Assets
Equity/assets ratio, %
*See page 92 for what items affecting comparability refers to.
5 321
-1 261
4 061
-330
3 731
4 061
19 479
20.8
46 992
4 101
51 093
4 061
47 557
8.5
3 004
43 326
6.9
3 911
173
736
71
24
-268
-39
-507
4 101
4 101
46 992
9
46 992
68 101
69
3 651
-1 172
2 479
-
2 479
2 479
16 327
15.2
42 516
4 181
46 697
2 479
44 128
5.6
1 979
40 718
4.8
3 919
175
605
112
48
-290
-43
-346
4 181
4 181
42 516
10
42 516
62 543
68
3 486
-1 141
2 345
8 770
11 115
2 345
16 959
13.8
40 111
3 784
43 895
2 345
26 391
8.9
8 731
25 233
34.6
2 018
171
2 485
13
46
-451
-14
-483
3 784
3 784
40 111
9
40 111
59 340
68
3 488
-1 012
2 476
-94
2 382
2 476
16 055
15.4
23 453
2 807
26 261
2 476
25 469
9.7
2 268
22 546
10.1
1 033
-
2 494
-
61
-468
-35
-278
2 807
2 807
23 453
12
23 453
36 912
64
3 157
-991
2 166
-
2 166
2 166
16 133
13.4
22 035
2 936
24 972
2 166
24 874
8.7
1 668
21 297
7.8
552
-
2 775
-
39
-42
-32
-356
2 936
2 936
22 035
13
22 035
34 891
63
Key figures
Holmen Annual Report 2021
91
2021
Ten-year review,
finance
SEKm
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Income statement
Net sales
Operating costs
Change in value of biological assets
Profit from investments in associates and joint ventures
16 327
16 959
17 852
19 479
-14 622 -13 250 -13 961 -12 984 -13 379 -12 626 -13 348 -13 270 -13 919 -15 224
350
47
267
7
579
-6
315
-22
282
-7
487
0
264
3
415
-12
425
-9
464
0
16 014
16 133
15 513
16 231
15 994
16 055
EBITDA
5 321
3 651
3 486
3 488
3 157
3 179
2 940
2 999
2 579
3 026
Depreciation and amortisation according to plan
-1 261
-1 172
-1 141
-1 012
-991
-1 018
-1 240
-1 265
-1 370
-1 313
Operating profit/loss excluding items
affecting comparability
4 061
2 479
2 345
2 476
2 166
2 162
1 700
1 734
1 209
1 713
Items affecting comparability*
-330
-
8 770
-94
-
-232
-931
-450
-140
-193
3 731
2 479 11 115
2 382
2 166
1 930
769
1 284
1 069
1 520
-39
-42
-34
-25
-53
-71
3 691
2 437 11 081
2 356
2 113
1 859
-688
-458
-2 351
-89
-445
-436
Profit/loss for the year
3 004
1 979
8 731
2 268
1 668
1 424
Diluted earnings per share, SEK**
18.5
12.2
52.6
13.5
9.9
8.5
Operating profit
Net financial items
Earnings before tax
Tax
Net sales
Forest
Paperboard
Paper
Wood Products
Renewable Energy
Group-wide costs and eliminations
Group
Operating profit
Forest
Paperboard
Paper
Wood Products
Renewable Energy
Group-wide costs and eliminations
Items affecting comparability*
Group
Cash flow
Earnings before tax
Adjustment items
Income tax paid
Changes in working capital
Cash flow from operating activities
-90
679
-120
559
3.4
-147
1 137
-230
907
5.4
5 641
5 113
6 247
1 352
389
-2 748
-198
871
-160
-227
1 294
559
711
1 853
4.3
11.1
5 694
4 618
7 148
1 175
450
-2 853
6 061
4 967
8 144
1 129
522
-2 972
6 509
6 261
5 441
4 872
488
-4 092
5 883
6 187
4 879
2 222
378
-3 222
6 286
6 229
5 757
1 695
378
-3 385
5 944
5 785
5 571
1 747
319
-3 311
5 535
5 526
5 408
1 562
315
-2 214
5 302
5 252
5 431
1 342
314
-2 128
5 481
5 472
6 148
1 314
359
-2 760
19 479 16 327 16 959 16 055 16 133 15 513 16 014 15 994 16 231 17 852
1 495
673
70
1 668
347
-193
4 061
-330
1 367
812
73
185
215
-174
1 172
435
509
62
336
-168
1 185
689
329
246
181
-154
1 069
764
288
80
135
-170
1 001
903
289
-3
120
-148
905
847
-74
9
176
-163
817
674
141
37
212
-146
924
433
-309
-75
371
-136
931
596
94
-130
355
-132
2 479
2 345
2 476
2 166
2 162
1 700
1 734
1 209
1 713
-
8 770
-94
-
-232
-931
-450
-140
-193
3 731
2 479 11 115
2 382
2 166
1 930
769
1 284
1 069
1 520
3 691
346
-662
-145
3 229
2 437
544
-569
46
11 081
-8 208
-147
158
2 356
540
-396
-214
2 113
418
-221
199
1 859
965
-504
-360
679
1 802
-398
443
1 137
1 448
-191
-217
871
1 056
210
-127
1 294
1 057
-434
338
2 457
2 884
2 286
2 509
1 961
2 526
2 176
2 011
2 254
Cash flow from investing activities***
-1 332 -1 924 -1 050 -1 005
-644
-123
-824
-815
-872 -1 957
Cash flow after investments
1 897
533
1 834
1 281
1 865
1 838
1 702
1 361
1 139
297
Dividend paid
Share buy-backs
-1 741
-
-567
-
-1 134
-1 430
-1 092
-
-1 008
-
-882
-
-840
-
-756
-
-756
-
-672
-
*Items affecting comparability:
2021: Increased energy costs of SEK -330 million due to turbine breakdown in Workington.
2019: Revaluation of biological assets amounting to SEK 9 079 million, impairment loss by associates of SEK -109 million and provisions of SEK -200 million.
2018: Restructuring costs of SEK -94 million.
2016: Sale of the mill in Spain and insurance compensation of SEK -232 million for the reconstruction of Hallsta Paper Mill following a fire.
2015: Impairment loss on non-current assets, provision for costs and the effects of a fire totalling SEK -931 million.
2014: Impairment loss on non-current assets of SEK -450 million.
2013: Impairment loss on non-current assets and restructuring costs of SEK -140 million.
2012: Impairment loss on non-current assets and restructuring costs of SEK -193 million.
**Historical figures have been adjusted because of the share split (2:1) in 2018.
***Net after disposals and before changes in non-current financial receivables.
92
Holmen Annual Report 2021
Ten-year review, finance
SEKm
Balance sheet
Forest assets
Other non-current assets*
Current assets
Financial receivables
Total assets
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
For a ten-year review of data per share, see page 49.
47 080
12 251
7 956
814
43 202
11 784
6 878
679
41 345
10 781
6 264
950
18 701
10 586
6 845
781
17 971
10 780
5 710
430
17 595
11 106
5 852
338
17 340
12 184
5 607
325
17 032
13 189
5 964
249
16 654
13 998
5 774
327
16 344
14 320
6 005
377
68 101 62 543 59 340 36 912 34 891 34 891 35 456 36 434 36 753 37 046
Equity
Deferred tax liabilities
Financial liabilities and interest-bearing provisions
Operating liabilities
46 992
11 610
4 915
4 584
42 516
10 570
4 860
4 597
40 111
10 299
4 733
4 196
23 453
5 839
3 587
4 033
22 035
5 650
3 366
3 840
21 243
5 613
4 283
3 752
20 853
5 508
5 124
3 971
20 969
5 480
6 156
3 829
20 854
5 804
6 443
3 653
20 813
5 504
6 967
3 762
Total equity and liabilities
68 101 62 543 59 340 36 912 34 891 34 891 35 456 36 434 36 753 37 046
Capital employed
Forest
Paperboard
Paper
Wood Products
Renewable Energy
Group-wide and other**
Capital employed
Key figures
Operating margin, %**
Paperboard
Paper
Wood Products
Group
Return, capital employed, %**
Forest
Paperboard
Paper
Wood Products
Renewable Energy
Group
Return on equity, %
Net debt as % of equity
Deliveries
Volume from own forest, ’000 m3
Paperboard, ’000 tonnes
Paper, ’000 tonnes
Wood products, ’000 m3
Own production of hydro and wind power, GWh
*Excluding non-current financial receivables.
**Excluding items affecting comparability.
37 300
5 169
1 637
2 278
4 069
640
34 230
5 276
1 969
1 846
3 351
24
32 718
5 589
1 903
1 000
3 058
-372
14 830
5 316
2 072
927
3 082
34
13 824
5 433
2 193
862
3 115
-455
13 536
5 546
2 507
859
3 153
-410
13 401
5 698
3 266
897
3 075
-684
13 212
5 841
4 366
874
3 118
-535
12 688 12 657
5 489
4 920
1 385
2 947
5
5 686
4 438
1 327
3 005
-173
51 093 46 697 43 895 26 261 24 972 25 190 25 653 26 876 26 970 27 403
11
1
34
21
4
13
4
82
10
9
7
9
13
2
8
15
4
15
4
17
7
6
5
10
7
9
4
14
8
8
24
6
11
9
35
9
12
6
14
15
8
12
15
27
6
10
10
12
14
5
5
13
8
14
12
9
4
9
8
13
17
5
0
14
7
16
10
0
4
9
7
19
15
-1
1
11
7
15
neg
1
6
6
3
23
13
2
3
11
6
12
3
3
7
6
4
28
9
-4
-6
7
7
8
neg
neg
13
4
3
29
12
1
-12
10
8
12
2
neg
12
7
9
32
2 833
544
1 029
1 373
1 230
2 841
544
883
1 052
1 352
2 699
538
996
879
1 109
2 816
525
1 036
828
1 145
2 883
526
1 117
852
1 169
2 945
497
1 134
776
1 080
3 132
499
1 325
730
1 441
3 207
493
1 305
725
1 113
3 361
469
1 574
686
1 041
3 085
485
1 651
660
1 353
Ten-year review, finance
Holmen Annual Report 2021
93
2021
five-year review,
sustainabiliTy
The environmental and employee data provided is the most
relevant information with regard to regulatory requirements and
internal monitoring. The key performance indicators provided are
widely used in the industry.
Data from all parts of the Group is collected, quality-assured
and evaluated. Martinsons was acquired in the fourth quarter of
2020 and its operations are included in the accounts from this
point. No material changes have otherwise been made to the
principles of reporting. Holmen reports its environmental data
to the supervisory authorities monthly and annually. Reporting
to Swedish authorities is made available to the public under the
principle of public access to documents. Data from all the mills
is reported to the EU annually. Expenditure on environmental
protection is reported in accordance with Statistics Sweden
guidelines. As some of the details provided in this report had
already been collected by the end of the year they refer to, they
might differ slightly from the information finally reported to
the authorities.
Production
Paperboard, ’000 tonnes
Market pulp, ’000 tonnes
Paper, ’000 tonnes
Wood products, ’000 m3
Own production of hydro and wind power, GWh
Electricity production at the mills, GWh
Raw materials
Wood, million m3sub2)
Purchased pulp, ’000 tonnes
Thermal energy, GWh
Electrical energy, GWh
Water use, million m3,6)
Plastic granules/foiling material, ’000 tonnes
Chemicals, ’000 tonnes7)
Filler, pigment, ’000 tonnes7)
Emissions to air, tonnes8)
Sulphur dioxide (counted as sulphur, S)
Nitrogen oxides
Particulates
Fossil carbon dioxide, ’000 tonnes
Biogenic carbon dioxide, ’000 tonnes
Emissions to water, tonnes8)
AOX (chlorinated organic matter)
Nitrogen
Phosphorus
COD (organic matter), ’000 tonnes
Suspended solids (SS), ’000 tonnes
By-products, ’000 tonnes
To energy production, internally/externally
To material production9)
Tall oil10)
Waste, ’000 tonnes
Hazardous11)
Sent to landfill (wet)
Energy supplies
Branches, treetops and peat, GWh12)
Electrical and thermal energy, GWh13)
Environmental protection expenditure,
SEKm
Investments (remedial and preventive)14)
Electricity and heat-saving investments
Environmental taxes and charges15)
Internal and external environmental expenses16)
Environmental cost of forestry17)
2021 2020 2019 2018 2017
529
80
998
1 465
1 230
4451)
6.343)
77
5 2914)
3 8725)
69
3.3
147
162
50
811
52
81
1 424
39
187
16
19
3.2
1 067
412
16
2.0
3.7
291
317
815
35
15
159
79
551
84
891
1 021
1 352
621
5.62
78
5 885
3 508
69
2.8
147
156
64
902
33
63
1 545
38
210
19
20
3.5
937
252
16
2.3
4.9
115
351
428
18
10
174
80
532
79
975
877
1 109
669
5.49
78
5 992
3 720
70
3.2
181
160
59
888
28
68
1 585
44
174
14
21
2.9
949
208
10
2.5
0.9
101
372
310
20
14
182
65
538
66
1 069
873
1 145
679
5.62
78
6 238
3 996
73
2.9
165
164
56
986
45
75
1 660
48
216
16
22
3.5
977
166
13
1.6
7.6
137
370
84
10
12
165
91
530
54
1 268
827
1 169
621
5.63
79
6 099
3 987
73
2.9
147
146
48
907
30
73
1 545
48
177
14
20
2.8
995
202
14
1.8
1.8
116
366
44
20
12
137
62
94
Holmen Annual Report 2021
Five-year review, sustainability
1) Bio-based electricity production accounted for 442 GWh.
2) At Group level, wood consumption is computed net,
taking into account internal deliveries of chips from
the sawmills to the nearby mills.
3) Harvest of Holmen’s own forests amounted to
2 833 000 m3sub.
4) Of which 3 885 GWh is renewable from recovered
liquor, bark, wood residues, pitch oil and forest fuel,
as well as 1 032 GWh recovered from the TMP process.
368 GWh comes from natural gas and oil and 6 GWh
from purchased renewable thermal energy.
5) 2 384 GWh renewable electricity, 1 425 GWh fossil-
free electricity and 63 GWh fossil electricity. Direct
emissions of fossil carbon dioxide from production of
purchased electricity totalled 28 982 tonnes.
6) Almost 100 per cent use of surface water from lakes
and watercourses, i.e. renewable raw material.
7) Non-renewable raw material stated as 100 per cent
active substance, equivalent to 220 000 tonnes of
commodities for chemicals and 226 000 tonnes of
commodities for filler and pigment. Additionally,
288 tonnes of commodities for chemicals for the
protective treatment of wood were used for wood
products at three of the sawmills.
8) Relates to emissions at facilities. Emissions of
methane and nitrous oxide at the facilities amounted
to 14 600 tonnes of carbon dioxide equivalents.
9) By-products used, for example, as filling material,
construction material or for the production of soil
products.
10) Delivered to the fuel and chemicals industry.
11) Hazardous waste is dealt with by authorised
collection and recovery contractors. Certain fractions
of the waste are recovered. In 2021, Holmen dealt
with 281 tonnes of oil-containing waste from vessels
that docked at two of its own ports, which is included
in hazardous waste.
12) Branches and treetops (35 GWh) and peat (68
GWh) delivered from Holmen’s land and 188 GWh of
branches and treetops from felling rights to external
energy producers. Felling rights are included from
2021 onwards.
13) 44 GWh of electrical energy supplied from
Workington Mill to the local community. 251 GWh
of thermal energy from Iggesund Mill and Braviken
Paper Mill to Iggesund Sawmill and Braviken
Sawmill. A total of 23 GWh thermal energy from
Hallsta Paper Mill and Iggesund Mill was supplied to
the district heating network of the local communities.
14) The stated amount includes costs for internal process
measures and water treatment measures, plus the
cost of erecting wind turbines, which is mainly the
cause of this year’s increase.
15) The stated amount includes costs for waste
management, energy tax charged in Sweden on the
use of fossil fuels, nitrogen oxide tax and inspection
charges. One environmental incident led to corporate
fines totalling SEK 0.5 million.
16) Includes costs of environmental personnel, operation
of treatment equipment, waste management,
management systems, environmental training,
applications for permits, environmental consultants
and the costs of inquiries and measures in connection
with discontinued operations.
17) The environmental cost of forestry is calculated as the
value of the wood that is not harvested for environ-
mental reasons. The annual loss of income in 2021 is
evaluated at approximately SEK 79 million and is due
to general considerations and nature conservation.
2021 2020 2019 2018 2017
2) Relates to permanent employees.
1) See page 64, Note 4.
Employees
Employees
Average no. of employees (FTE)1)
of whom women, %
of whom men, %
of whom temporary employees, %
Average age2)
Sickness absence, %
Total
of which longer than 60 days
Gender equality, %2)
Proportion of female managers out of total no. of managers
Proportion of male managers out of total no. of managers
Women joining the company out of total new employees
Men joining the company out of total new employees
Personnel turnover, %2)
Personnel turnover
of which given notice
of which retiring
of which leaving at own request
New employees
Number of industrial accidents3)
Industrial accidents, more than 8 hours of absence,
per million hours worked
Union cooperation, %4)
Percentage of employees that work at a unit with a
collective agreement5)
Employees
Lenders
Society6)
Income statement per stakeholder category, SEKm
Customers
Suppliers
Sales of products, wood and electricity
Purchases of products, services, along
with depreciation, etc.
Wages and social security costs
Interest
Property tax
Excise tax
Social security costs
Payroll tax
Corporation tax
Shareholders Net profit
Dividend
3 474
20.6
79.4
9.3
43.5
2 974
20.0
80.0
8.4
44.3
2 915
20.0
80.0
11.1
44.4
2 955
20.3
79.7
10.7
44.9
2 976
19.3
80.7
7.4
46.0
4.1
1.4
23.1
76.9
30.3
69.7
8.9
0.3
3.0
4.3
5.1
4.3
1.7
22.7
77.3
35.5
64.5
7.3
0.6
3.1
3.0
2.6
3.8
1.6
22.9
77.1
39.5
60.5
7.9
0.9
2.2
4.4
2.5
4.1
1.6
19.8
80.2
40.1
59.9
7.9
0.4
2.6
3.9
2.7
4.2
2.0
20.7
79.3
25.0
75.0
8.0
0.9
2.6
4.4
5.9
5.6
4.3
5.7
4.9
5.1
95
94
93
94
94
21 169
17 666
18 329
17 339
17 269
-14 675 -12 734
-1 891
-42
-42
-31
-481
-39
-427
1 979
1 741
-2 121
-43
-43
-37
-558
-39
-651
3 004
1 8627)
-4 817
-1 819
-34
-55
-27
-472
-25
-2 351
8 731
567
-12 539
-1 792
-25
-82
-30
-479
-35
-89
2 268
1 134
-12 719
-1 767
-53
-101
-31
-449
-36
-445
1 668
1 092
Greenhouse gas emissions Scope 1–3, ’000 tonnes CO2e
2021 2020
Scope 1: Direct greenhouse gas emissions8)
Scope 2: Indirect greenhouse gas emissions from purchased electrical energy9)
Scope 3: Emissions in the value chain
of which category 1: Purchased goods and services10)
of which category 2: Capital goods11)
of which category 3: Fuel and energy-related activities12)
of which category 4: Upstream transport13)
of which categories 6 & 7: Travel
of which category 9: Downstream transport14)
Total emissions*
97
60
550
136
120
38
56
4
196
707
79
38
460
100
80
36
56
4
184
578
* Holmen’s reported emissions for 2021 increased by 129 ktonnes CO2e compared with 2020. The actual increase in emissions
amounted to 93 ktonnes and the remaining 36 ktonnes is due to updated calculation methods. Emissions from Scope 1 and
2 have increased mainly as a result of the turbine breakdown at Workington Mill which reduced its own fossil-free electricity
production. Scope 3 category 2 (Capital goods) has increased as a result of the construction of Blåbergsliden Wind Farm. Scope
3 category 9 (Downstream transport) has increased as a result of higher volumes of wood products, following the acquisition
of Martinsons. The reported emissions from Scope 3 category 1 (Purchased goods and services) has increased for 2021
compared with 2020 as we gradually expand the number of suppliers and input goods from which we gather emissions data,
which means that reported figures for 2020 and 2021 are not comparable. More information is available at holmen.com.
3) Relates to employees. No industrial accidents
with a fatal outcome occurred during the year.
4) Relates to permanent and temporary employees.
5) Relates to Swedish and UK units, all of which
have collective agreements. At other foreign
units, Holmen supports different forms of
collective employee engagement in line with
local standards, e.g. Works Councils.
6) Holmen accepts its responsibility to society
and pays its taxes in line with the legislation
and rules in force in all the countries in which
we operate. Holmen’s financial policy and
guidelines state that Holmen must be trans-
parent in its tax-related deliberations, with a
focus on commercial considerations and no
transactions whose main purpose is tax plan-
ning. Holmen must also not accept, support or
facilitate any tax violations by third parties.
7) Board’s dividend proposal.
8) The increase compared with the previous
year’s reporting is mainly due to the turbine
breakdown at Workington Mill. Emissions from
the production facilities are included in the
EU’s system for emissions trading.
9) Purchasing of electricity increased in 2021
due to the turbine breakdown at Workington
Mill. In previous annual accounts, Holmen has
only reported emissions from the electricity
production phase. For 2021, emissions
from production and maintenance of plants
generating electricity as well as emissions
from downstream distribution of electricity
are also reported. In 2021, emissions from
the production phase amounted to 29 ktonnes
CO2e, calculated in line with a market-based
methodology, with EPDs from Vattenfall AB
as the source. Emissions calculated using a
location-based methodology, with GOV.UK
and the European Environment Agency as the
source, are 56 ktonnes CO2e.
10) Including transport to Holmen's units. For
2021, more suppliers and products have been
included in the accounts. The data for 2020
and 2021 are thus not comparable.
11) Acquisition of property, plant and equipment
includes the construction of Blåbergsliden
Wind Farm.
12) Transport of fuel for the biofuel boiler at
Workington Mill and emissions from forestry.
13) Transport of woody biomass, Well to Wheel.
14) Transport of finished products, Well to Wheel.
New calculation principle
for greenhouse gas
emissions
As part of the development of
our work on sustainability and
in line with the Greenhouse
Gas Protocol’s methodology for
Scope 2 and 3, in 2021 we have
refined the methodology for coll-
ecting and reporting emissions
of green house gases in our value
chain. The new accounts are
based on larger and more in-
depth data and consequently
reported reference data for
emissions in 2020 has there-
fore been adjusted from 377 to
578 ktonnes CO2e. More infor-
mation is available in footnotes
and text below the tables.
Five-year review, sustainability
Holmen Annual Report 2021
95
Business overview
holmen 2021
Holmen gives quality-conscious customers
across the world access to renewable
products from the Swedish forests.
Holmen’s forests,
power plants
& industrial sites
Forest holdings
1.3 million hectares total land acreage
1 million hectares productive forest land
96
Holmen Annual Report 2021
Business overview
Kroksjön Sawmill
Blåbergsliden Wind Farm
Bygdsiljum Sawmill
Umeälven
Harrsele
Tuggen
Gideälven
Stennäs
Gammelbyforsen
Björna
Gideå
Gidböle
Gideåbacka
Faxälven
Linnvasselv
Junsterforsen
Gäddede
Bågede
Strömsbruk
Strömsbruk
Converting Plant
Iggesundsån
Pappersfallet
Iggesund Power Station
Iggesund
Iggesund Mill
Iggesund Sawmill
Ljusnan
Sveg
Byaforsen
Krokströmmen
Långströmmen
Ljusne Strömmar
Hallstavik
Hallsta Paper Mill
Varsvik Wind Farm
Stockholm
Head Office
Norrköping
Braviken Paper Mill
Braviken Sawmill
Linghem Sawmill
Motala Ström
Holmen
Bergsbron-Havet
UK
Workington Mill
Forest holdings
Holmen’s forests 2021
Total land acreage
Total forest land acreage*
– of which nature conservation areas
Productive forest land**
Total volume of standing timber
on productive forest land
Production facilities
1 304 000 ha
1 159 000 ha
201 000 ha
1 044 000 ha
Iggesund Mill
Products: Multi-layered paperboard made
from bleached chemical pulp (SBB).
Brand: Invercote and Inverform.
Raw material: Softwood and hardwood
pulpwood.
125 million m3 growing stock, solid over bark
* Calculated based on Holmen’s stand catalogue and data from the National Forest Inventory in line with the
international definition of forest land: Land area > 0.5 hectares with a tree canopy cover of more than 10 per cent
for trees capable of reaching a height of at least 5 metres at maturity.
** Forest land that can produce 1 m3 growing stock, solid over bark per hectare and year (on average during the growth
period of the forest stand) according to Holmen’s stand catalogue.
Power plants
Hydro power plant
%1)
GWh2) Built in
River
Umeälven
Gideälven
Faxälven
Harrsele
Tuggen
Stennäs
Gammelbyforsen
Björna
Gideå
Gidböle
Gideåbacka
Linnvasselv
Junsterforsen
Gäddede
Bågede
Iggesundsån
Pappersfallet
Iggesund Power Station
Ljusnan
Motala Ström
Sveg
Byaforsen
Krokströmmen
Långströmmen
Ljusne Strömmar
Holmen
Bergsbron-Havet
Wind power
Varsvik Wind Farm
Blåbergsliden Wind Farm
1) Holmen’s share of production. 2) Normal production.
Customers and market
Business area Products
Customer
segment
49
22
10
10
10
10
10
10
7
100
30
100
100
100
20
20
9
11
7
100
100
50
100
489
98
3
1
8
9
6
8
16
130
22
71
6
22
22
21
42
32
17
106
8
75
430
1957–58
1962
1985–96
"
"
"
"
"
1961–74
"
"
"
1915
2009
1949–75
"
"
"
"
1990
1927
2014
2020−22
Competitors
SCA, Sveaskog
plus a number of
large forest owners’
associations
Forest
Paperboard
Paper
Wood Products
Logs, pulpwood and
biofuel
Sawmills, pulp mills,
paperboard and paper
mills
Premium paperboard for
consumer packaging
Brand owners, converters
and wholesalers
Metsä Board,
Stora Enso
Paper for books,
magazines, advertising
and packaging
Publishers, printing firms
and retailers
Norske Skog, Stora
Enso, UPM
Construction and joinery
timber, CLT and glulam,
plus wood for pallets
and packaging
Construction industry,
joinery industry,
builders’ merchants,
and packaging industry
Moelven, SCA, Setra,
Södra, Vida and a
large number of
foreign companies
Workington Mill
Products: Multi-layered paperboard,
surface layer of chemical pulp, core of
mechanical pulp (FBB).
Brand: Incada.
Raw material: Spruce pulpwood and
purchased sulphate pulp.
Strömsbruk Converting Plant
Products: Converted paperboard
products for the packaging of cosmetics,
confectionery, food, etc.
Braviken Paper Mill
Products: Paper for books, magazines,
advertising, newspapers and packaging.
Raw material: Spruce pulpwood.
Hallsta Paper Mill
Products: Paper for books, magazines,
advertising and packaging.
Raw material: Spruce pulpwood.
Braviken Sawmill
Products: Spruce and pine construction
products.
Raw material: Spruce and pine saw logs.
Iggesund Sawmill
Products: Pine joinery products.
Raw material: Pine saw logs.
Linghem Sawmill
Products: Spruce and pine construction
products.
Raw material: Spruce and pine saw logs.
Bygdsiljum Sawmill
Products: Spruce and pine products for
joinery and construction plus glulam and
CLT for the construction market.
Raw material: Spruce and pine saw logs.
Kroksjön Sawmill
Products: Spruce and pine products for
joinery and construction plus planed and
painted construction products.
Raw material: Spruce and pine saw logs.
Renewable Energy Renewable energy from
Nordic electricity market
hydro and wind power
Fortum, Statkraft,
Vattenfall, Uniper
Business overview
Holmen Annual Report 2021
97
Definitions and glossary
Definitions
Capital employed
Net financial debt plus equity, which corresponds
to fixed assets (excluding non-current financial
receivables) plus working capital less the net sum
of deferred tax liabilities and deferred tax assets.
Average values are calculated on the basis of
quarterly data.
Cash flow after investments
Cash flow from operating activities less cash flow
from investing activities.
Debt/equity ratio
Net financial debt divided by total equity.
Carbon dioxide (CO2)
Precautionary principle
Carbon is the building block of life and is part of all
living things. Biogenic carbon dioxide is released
when biological material decays or wood is burned.
Fossil carbon dioxide is released when coal, oil or
natural gas is burned.
Carbon dioxide equivalents (CO2e)
Carbon dioxide equivalents include the effects from
greenhouse gases other than just carbon dioxide,
such as methane and nitrous oxide.
COD
Chemical oxygen demanding substances. A measure
of the amount of oxygen needed for the complete
decomposition of organic material in water.
Persons who pursue an activity or take a measure,
or intend to do so, shall implement protective
measures, comply with restrictions and take any
other precautions that are necessary in order to
prevent, hinder or combat damage or detriment to
human health or the environment as a result of the
activity or measure. For the same reason, the best
available technology shall be used in connection
with professional activities.
SBB
Solid Bleached Board. Multi-layered paperboard
made from bleached chemical pulp.
Sulphate pulp
Chemical pulp that is produced by cooking wood
under high pressure and at a high temperature
together with white liquor (sodium hydroxide and
sodium sulphide).
Sulphur dioxide (SO2)
A gas consisting of sulphur and oxygen that is
formed in combustion of sulphur-containing fuels,
such as oil. In contact with moist air, sulphur dioxide
is converted into sulphuric acid, which creates
acid rain.
Suspended solids
Waterborne substances consisting of fibres and
particles that can largely be removed using a fine
mesh filter.
Tall oil
By-product of the sulphate pulp process used
for making soft soap, paints, biodiesel and other
products.
TMP
Thermo-mechanical pulp. Obtained by heating
spruce chips and then grinding them in refiners.
Calculation of Holmen’s
climate benefit
Comments to calculations on page 32
Carbon dioxide storage in Holmen’s forests is based on
the annual increase in the volume of standing timber
based on the company inventory carried out in 2019
minus harvested volumes.
Net storage in land, wood products, paperboard and
paper is calculated in line with Sweden’s official climate
reporting to the UN, conducted by the Swedish Environ-
mental Protection Agency using the IPCC’s methodology.
The methodology is constantly under development and
for 2021 calculated storage in land has been lowered,
meaning that the reported amount of stored CO2 in
Holmen’s forests has decreased compared with 2020.
The methodology also takes into account the fact that
a certain amount of old wood and fibre products rotted
or was incinerated in 2021 and thus stopped binding
carbon dioxide. According to the IPCC, fibre products
have a half-life of 2 years and wood products 30 years.
The substitution effect of wood products is based
on European and Canadian research. Holmen’s
calculations of the substitution effect of wood
products also make the assumption that 100 per
cent of older fibre products and old wood products
that ceased binding carbon dioxide in 2021 were
used for bioenergy which substi tuted for fossil fuel.
The substitution effect from paper and paperboard
is calculated based on the assumption that 100
per cent of paper and paperboard becomes biofuel
at the end of its lifecycle, and thus replaces fossil
fuels. The substitution effect from our production
of renewable electricity is calculated by biobased
electricity production and hydro power replacing
fossil-based controllable electricity from coal power,
wind power replacing fossil-based electricity from coal
and gas power, and bioenergy (comprising branches
and treetops and residual products from Holmen’s
operations delivered externally) replacing fossil fuels.
Details of Holmen’s biogenic and fossil emissions are
reported on pages 94–95.
More information on calculations and sources
is provided in Holmen’s sustainability report at
holmen.com.
Earnings per share (EPS)
FBB
Profit for the year divided by the weighted average
number of shares outstanding, adjusted for buy-
back of shares, if any, during the year. Diluted EPS
means that any diluting effect from outstanding call
options has been taken into account.
EBITDA
Earnings before interest, taxes, depreciation
and amortisation, excl. items affecting
comparability.
Equity/assets ratio
Equity expressed as a percentage of total assets.
Financial assets
Non-current and current financial receivables and
cash and cash equivalents.
Items affecting comparability
Used to clarify how the earnings measures are
affected by matters outside normal business
operations, such as impairment, disposal, closure
and major restructuring measures, plus alterations
to assumptions in the valuation of biological
assets. The effects of maintenance and rebuilding
shutdowns are not treated as an item affecting
comparability. Page 92 states which items have
been treated as items affecting comparability over
the past 10 years.
Net financial debt
Non-current and current financial liabilities,
non-current and current liabilities regarding
right-of-use assets, and pension provisions, less
financial assets.
Operating margin
Operating profit/loss (excl. items affecting
comparability) expressed as a percentage of net
sales.
Operating profit
Profit before net financial items and tax.
Return on capital employed
Operating profit/loss (excluding items affecting
comparability) expressed as a percentage
of average capital employed, based on quarterly
data.
Return on equity
Profit for the year expressed as a percentage of
average equity, calculated on the basis of quarterly
data.
Glossary
Bio co-location
A co-location of different operations for more
efficient use of raw materials and energy, amongst
other benefits.
Biofuel
Renewable fuels such as wood, black liquor, bark
and tall oil. Fuels that do not generate any net
emission of carbon dioxide into the atmosphere,
since the quantity of carbon dioxide formed during
combustion is part of the carbon cycle.
Bulk
Measure of the paper’s volume. Paper of the
same grammage can have different thicknesses
depending on the paper’s bulk. High bulk means
thick, but relatively light, paper.
Folding Box Board. Multi-layered paperboard made
from mechanical and chemical pulp.
Fillers
Fillers, such as ground marble and kaolin clay,
are used to give the paper bulk and make it more
uniform in structure and brighter.
Fossil fuels
Fuels based on carbon and hydrogen compounds
from sediment or sedimentary bedrock – mainly
coal, oil and natural gas.
FSC®
Forestry certification system.
GRI
Global Reporting Initiative. International cooperation
body, in which many different groups of stakeholders
in society have drawn up global guidelines for how
companies are to report on activities encompassed
by the umbrella term of sustainable development.
ISO 9001
An international standard for quality management
systems. Primarily aimed at companies and
organisations that wish to improve two aspects
of their operations, i.e. to ensure more satisfied
customers and lower costs.
ISO 14001
An international standard for environmental
management. Important principles in ISO 14001
include regular environmental audits and a gradual
increase in the requirements.
ISO 45001
A series of international standards regarding
a management system for health and safety.
The management system includes monitoring,
evaluating and reporting on health and safety work.
ISO 50001
An international energy management systems
standard that provides a framework for energy
efficiency measures.
m3 growing stock, solid over bark
The volume of tree stems, incl. bark, from stump to
top. Generally used as a measure for growing forest.
m3sub
Cubic metre solid volume under bark. The actual
volume (no gaps between the logs) of whole stems
or stemwood excl. bark and treetops. Generally
used as a measure for harvested wood.
Nitrogen (N)
An element contained in wood. Nitrogen emissions
to water may cause eutrophication.
Nitrogen oxides (NOx)
Gases that consist of nitrogen and oxygen that are
formed in combustion. In moist air, nitrogen oxides
are converted into nitric acid, which creates acid
rain. Nitrogen oxides also have a fertilising effect.
Particulates
Particles of ash formed in incineration of bark or
liquor, for example.
PEFC™
Forestry certification system.
Phosphorus (P)
An element contained in wood. Excessive
phosphorus in the water may cause eutrophication
and oxygen consumption.
98
Holmen Annual Report 2021
Definitions and glossary
Calendar and information
Information
Calendar
The interim and year-end reports are
presented at an online conference for
press and analysts. The conference is
held in English and is broadcast live on
holmen.com. The annual report, together
with year-end and interim reports, is
published in Swedish and English and
the reports are sent automatically to the
shareholders who have indicated their wish
to receive them. They are also available at
holmen.com.
How to order printed material:
Holmen AB, Group Sustainability
and Communications,
P.O. Box 5407, SE-114 84
Stockholm, Sweden
e-mail: info@holmen.com
telephone: +46 8 666 21 00
or go to holmen.com
For 2022, Holmen will publish the following
financial reports:
Interim report Jan–Mar: 28 April 2022
Interim report Jan–Jun: 19 August 2022
Interim report Jan–Sep: 20 October 2022
Year-end report: 31 January 2023
AGM 2022: 30 March 2022
Dates of trading
and dividend
The final date for trading, including right
to dividend: 30 March 2022
Record date for dividend:
1 April 2022
Payment date for dividend:
6 April 2022
References
Reference page 11
• Kraftsamling elförsörjning – Långsiktig scenarioanalys (Focusing energies on electricity supply –
long-term scenario analysis), Confederation of Swedish Enterprise 2020.
References pages 12, 28–29
• De Palma, A., Hoskins, A., Gonzalez, R.E., Börger, L., Newbold, T., Sanchez-Ortiz, K., Ferrier, S.,
Purvis, A., 2021. Annual changes in the Biodiversity Intactness Index in tropical and subtropical
forest biomes, 2001–2012. Sci Rep 11, 20249.
• FAO, 2021a. Global Forest Resources Assessments
• FAO, 2021b. FAOSTAT – Forestry Production and Trade
• Harris, N.L., Gibbs, D.A., Baccini, A., Birdsey, R.A., de Bruin, S., Farina, M., Fatoyinbo, L., Hansen,
M.C., Herold, M., Houghton, R.A., Potapov, P.V., Suarez, D.R., Roman-Cuesta, R.M., Saatchi, S.S.,
Slay, C.M., Turubanova, S.A., Tyukavina, A., 2021. Global maps of twenty-first century forest carbon
fluxes. Nature Climate Change 11, 234–240.
• Phillips, H., De Palma, A., Gonzalez, R.E., Contu, S. et al. (2021). Dataset: The Biodiversity
Intactness Index – country, region and global-level summaries for the year 1970 to 2050 under
various scenarios. National History Museum Data Portal (data.nhm.ac.uk).
• IEA, 2021. Data tables
• IPCC, 2019. Climate Change and Land
• Natural History Museum, 2021a. Biodiversity Intactness Index data
• Natural History Museum, 2021b. About the Biodiversity Intactness Index
• Pan, Y., Birdsey, R.A., Fang, J., Houghton, R., Kauppi, P.E., Kurz, W.A., Phillips, O.L., Shvidenko, A.,
Lewis, S.L., Canadell, J.G., Ciais, P., Jackson, R.B., Pacala, S.W., McGuire, A.D., Piao, S., Rautiainen,
A., Sitch, S., Hayes, D., 2011. A Large and Persistent Carbon Sink in the World’s Forests. Science
333, 988–993.
• Scholes, R.J., Biggs, R., 2005. A biodiversity intactness index. Nature 434, 45–49.
• Steffen, W., Richardson, K., Rockström, J., Cornell, S.E., Fetzer, I., Bennett, E.M., Biggs, R.,
Carpenter, S.R., de Vries, W., de Wit, C.A., Folke, C., Gerten, D., Heinke, J., Mace, G.M., Persson,
L.M., Ramanathan, V., Reyers, B., Sörlin, S., 2015. Sustainability. Planetary boundaries: guiding
human development on a changing planet. Science 347, 1259855.
• Swedish Forest Agency, Dec 2021. Report 2021:11. Sustainable boreal forest management –
challenges and opportunities for climate change mitigation
• UNEP-WCMC and Natural History Museum. “Biodiversity Intactness.”
Holmen Annual Report 2021
99
Holmen AB (publ)
P.O. Box 5407, SE-114 84
Stockholm, Sweden
+46 8 666 21 00
info@holmen.com
ID No. 556001-3301
Registered office Stockholm