Holmen Annual Report 2024

FY2024 Annual Report · Holmen

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Annual Report
2024
beyond
net
zer0

When you reach
Net Zero,
should you just
stop there?
2.1 Mtonnes CO2
Net growth in our
growing forest
0.4 Mtonnes CO2
Stored in our
products
-0.8 Mtonnes CO2e
Total emissions in
our value chain
Greenhouse gas emissions 2005–2024
from Holmen’s production, Ktonnes CO2e
70
75
80
85
90
95
100
2023
2010
2000
1990
1980
1970
0
200
400
600
800
Biodiversity Intactness Index Sweden
90% threshold value for healthy ecosystems
2 Holmen Annual Report 2024
2 Holmen Annual Report 2024

For us at Holmen, the answer is simple: We keep moving
forward. The uptake of carbon dioxide by our growing
forests and the storage of carbon dioxide in their products
is already three times greater than our total fossil
emissions. And while actively managing the forest in a
responsible way and constantly replanting new trees
improves the sequestering of carbon dioxide, the
renewable raw material we process also helps other
companies reduce their carbon footprint.

Being climate positive is quite simply inherent to our core
business. That said, it is also not in our nature to sit back
and take credit for the power of the forest. On the contrary,
it spurs everyone at Holmen to work harder, which is why
we have reduced our own fossil emissions by more than
90 per cent over the past 20 years, while ensuring that
forestry is not conducted at the expense of Sweden’s
biodiversity. We are pleased to see that our efforts are
resulting in a steady stream of positive developments for
our forests and our industries.

When we talk about going Beyond Net Zero, we mean
not only looking at our own impact but also contributing
positively to the rest of the world. A long-term climate
agenda that we will continue to refine and invest in, for
our own benefit and for future generations.
Holmen Annual Report 2024 3
Holmen Annual Report 2024 3

2024
Business overview
Holmen in brief
CEO’s message
06
Strategy and targets
08

Forest
18
Wood Products
22
Board and Paper
Renewable Energy
30

Biodiversity
38
Environment
40

42
Governance
Corporate governance report
44
Risk management
Shareholder information
54
Board of Directors
56

58
Calendar and information
Financial report

60
Notes
66
Proposed appropriation of profits 93
Auditor’s report
95
Sustainability report
General disclosures
98
Climate change
101
Pollution
105
Biodiversity and ecosystems
107
Resource use and

circular economy
109
Own workforce
111
Workers in the value chain
113
Affected communities
115
Business conduct
116
Taxonomy
118
GRI index
122
Auditor’s Limited

Assurance Report
126
Additional information
Key figures
127
Ten-year review, finance
128
Five-year review, sustainability
130
Business overview
132
Definitions and glossary
134
100% Holmen-produced
This entire annual report is made using Holmen’s
own products. The cover is printed on Invercote
Touch, manufactured at Iggesund Mill. This is an
uncoated paperboard with a high, stable whiteness
that delivers excellent colour reproduction proper-
ties for print production. 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 Touch are made using fresh fibre
from sustainably managed forests.
Holmen Aktiebolag (publ.), corporate identity
number 556001-3301, hereby submits the annual
report for the parent company and the Group for
the financial year 2024-01-01–2024-12-31. The
annual report comprises the administration report
(pages 4, 8–11, 16–17, 42–59, 93–94 and 127)
and the financial statements, together with the
notes and supplementary information (pages 60–
92). The statutory sustainability reporting in acc
ordance with the Annual Accounts Act comprises
pages 98–122. 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.
Sustainability information is reported in
accordance with the Global Reporting Initiative’s
GRI Standards 2021. The Sustainability Report
comprises pages 98–126. The information is
audited by a third party, see separate
assurance report on page 126.
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 Touch 330 gsm. The insert is printed on Holmen TRND, 2.0 – 80 gsm. Layout: Identity Works. Production: Gylling Produktion AB.
Photos: Jonas Westling, Ulla-Carin Ekblom, Malin Lauterbach, Christian Ekstrand, Kollberg & Karlsson, Amanda Sveed and others. Print: Larsson Offsettryck AB.
4 Holmen Annual Report 2024

Holmen
grows
houses
We manage the forest actively and
sustainably, while also using 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 paperboard
of world-leading quality and innovative
paper products. In addition, we use the
water rushing down the rivers and the
wind blowing over the treetops to
produce renewable energy.
2024 in figures
Net sales
22 759 SEKm
Operating profit
3 721SEKm
Cash flow*
3 728 SEKm
No. of employees
3 498
*Before investments and changes in working capital
Total shareholder return Holmen B and OMX Stockholm
Holmen B
Stockholm Stock Exchange (OMXSGI)
0
100
200
300
400
500
600
Jan 25
24
23
22
21
20
19
18
17
16
15
Index
Holmen Annual Report 2024 5
Holmen in brief

»We have created a platform
for continued growth for
many years to come.«
»The more
we produce,
the greater our
contribution
to a better
climate.«

Dear
Shareholders,
CEO’s message
In 2024, central banks brought inflation under control
and began to implement interest rate cuts across the
board. However, this has not yet reignited consump-
tion or new construction, and market conditions
remained challenging while competition for forest raw
material was high. Despite a weak market, our indus-
trial operations generated a healthy return on capital
of 16 per cent. Coupled with high earnings from the
forest, we were able to maintain a good level of
operating profit at SEK 3 721 million.
Holmen’s business is based on the forest and land we own. We
have been successful in generating value from our assets, and
the merger of the Board and Paper business areas in early 2024
further strengthened our competitiveness. Our business model
now focuses on four distinct business lines: forestry, hydro and
wind power, the woodworking industry, and process industry
operations.
In light of the solid earnings and our strong financial position,
the Board of Directors proposes that the ordinary dividend per
share increases from SEK 8.5 to SEK 9, with the payment of an
extra dividend of SEK 3.
Focus on global competitiveness
The EU’s ambitious plans to mitigate climate change and
protect biodiversity have been challenged by weak markets
and an increasingly protectionist world. It is clear that the
transition to a more sustainable society risks being sidelined as
competitiveness is prioritised over green investments. Whether
the necessary climate transition has simply lost momentum or is
shifting focus from regulation and bureaucracy to increasing the
pace of innovation and European competitiveness remains to be
seen. It is clear that a green industrial policy that eases the EU’s
regulatory burden and reduces dependence on fossil fuels can
create opportunities for a growing European bioeconomy.
Our sustainably managed forests capture and store carbon
dioxide, and the renewable products we offer replace fossil
alternatives, while our production of hydro power and wind power
contributes to the transformation of Europe’s energy system. The
more we produce, the greater our contribution to a better climate.
With a large forest holding and the hydro power that is so critical
for Sweden, well-invested industries and a strong balance sheet,
Holmen is well positioned to contribute to the green transition.
Forest and energy are in-demand resources
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. With the forest as a foundation, we grow trees
for sustainable construction while also harnessing the energy that
blows over the treetops and flows in the rivers. We then make
renewable packaging, magazines and books from the forestry
residues.
While the forest is a renewable resource, the supply of raw
material is limited across much of the world. Even in a weak
market, demand for forest raw material has remained high and
Swedish wood prices have climbed by more than 50 per cent since
2021. High wood prices are good for us in our capacity as a forest
owner, but the competition for raw material makes it challenging
to supply our industrial facilities with wood at a competitive cost.
Nevertheless, with our large forest holdings behind us, we have
a secure supply of raw material for the long term, which makes
us well placed to continue developing our industries, even in times
of timber shortages.
Within Holmen, investments in fossil-free technology have
drastically reduced fossil emissions from our plants and we are
now largely fossil-free in our own production, while being a signifi-
cant producer of renewable hydro and wind power. We have good
potential to establish additional wind power on our land to support
new green initiatives or the fossil-free electricity needs of emerg-
ing data centres.
Renewable products with a low carbon footprint
The building sector is responsible for more than a third of Europe’s
carbon emissions and making the manufacture of the dominant
construction materials, cement and steel, sustainable is both
expensive and difficult. Large-scale wood construction is an
option that not only avoids fossil fuel emissions but also stores
carbon in the building for a long time. Even with the weakness of
the construction sector in recent years, we are seeing a growing
interest in building in wood. With well-invested sawmills and
expanded processing capacity, we are well positioned when
construction picks up pace once more.
In the area of paperboard and paper, we have chosen to
focus on niches where fresh fibre comes into its own. Since the
merger into one business area, we have advanced our market po-
sitions, while increasing productivity and investing to enable the
production of transport packaging. With well-invested production
facilities and strong product offerings, we are favourably placed
to continue developing our business and helping our customers
reduce their carbon footprint without sacrificing competitiveness.
The uptake of carbon dioxide by our growing forests and the
storage of carbon dioxide in their products is already three times
greater than the fossil emissions in our value chain. As the world
strives for net zero, we are already there. The best thing we can do
for the climate is to help more customers replace fossil materials
with renewables, and we will continue to do so. For our sake and
for future generations.
Stockholm, 24 February 2025
Henrik Sjölund, President and CEO
Holmen Annual Report 2024 7
CEO’s message

Growing a
sustainable
future
Strategy and targets
Our business concept is to own
and add value to the forest
Holmen’s extensive forest holdings are the foun-
dation of our business. Using our own produc-
tion 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 cus-
tomers and shareholders, but
also contributes to a better
climate and thriving
rural communities.
Wood Products
The Wood Products business
will grow through products
and solutions for sustainable
building.
Board and Paper
The consumer packaging and paper
products business will build on its position
as market leader and also develop by
offering resource-efficient alternatives
to traditional products.
8 Holmen Annual Report 2024
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.
Holmen Annual Report 2024 9
Strategy and targets

Strategy and targets
We aim to create value that
stands the test of time
– while also contributing
to a better climate
Annual harvest,
’000 m3sub/year
Industry’s return on capital
employed, %*
Deliveries of hydro and wind
power, GWh
Harvest
Thinning
Storms and other events
*Forecast
*Excl. items affecting comparability
Hydro power
Wind power
0
400
800
1 200
1 600
2 000
24
23
22
21
20
19
18
17
16
15
Forest
The forest is sustainably managed to pro-
vide a good annual return and stable value
growth. Growth and harvests will increase
over time. In 2024, volumes amounted to
2.6 million m3sub, which is slightly lower
than the current harvesting plan. The
value of the Group’s forest assets has
increased by more than 40 per cent since
2019 to SEK 58 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. Over the past 10
years, the return for the industrial side
of the business has averaged out at 19
per cent, and in 2024 the figure was 16
per cent, driven by good profitability in
the paper business.
Renewable Energy
Deliveries of renewable energy will in-
crease by complementing our existing
hydro power with wind power on our own
land. Holmen currently has two wholly
owned wind farms that produced 510
GWh in 2024, and another wind farm
under construction is expected to become
operational in 2026.
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2040-
2044*
2035-
2039*
2030-
2034*
2025-
2029*
2020-
2024
2015-
2019
2010-
2014
2005-
2009
0
20
40
60
24
23
22
21
20
19
18
17
16
15
16
10 Holmen Annual Report 2024
Strategy and targets

Climate benefit,
million tonnes CO2e*
Net debt as % of equity
Dividend and share buy-back,
SEKm
*Climate benefit for 2023 and 2024 has been
calculated using a new model. For further information,
see page 104.
Ordinary dividend paid
Share buy-backs
Extra dividend paid *Board proposal
Climate benefit
Climate benefit will increase through
higher growth in our forests 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. The erec-
tion of new wind turbines and expansion
of the wood products business have in-
creased Holmen’s climate benefit, which
in 2024 came in at 8.3 million tonnes
CO2e, with all the business areas making
a positive contribution.
Capital structure
Our financial position is to be strong in or-
der to secure room for manoeuvre when
making long-term commercial decisions.
Net financial debt will not exceed 25 per
cent of equity. Net financial debt in rela-
tion to equity has consistently been below
10 per cent over the past five years, and
amounted to 6 per cent in 2024. Good
cash flow has allowed for a higher divi-
dend and share buy-backs, while retaining
a strong financial position.
Dividend
Holmen will generate a good annual divi-
dend for shareholders. The level is deter-
mined by the Group’s profitability, invest-
ment plans and financial situation. The
dividend is supplemented with share buy-
backs where this is judged to create long-
term value for shareholders. Alongside the
gradual increase in the ordinary dividend,
extra dividends and share buy-backs have
also been implemented. The Board pro-
poses that the 2025 AGM approve a divi-
dend of SEK 9 per share and an extra divi-
dend of SEK 3 per share.
0
2
4
6
8
10
24
23
22
21
20
19
8.3
0
10
20
30
24
23
22
21
20
19
18
17
16
15
6
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
25*
24
23
22
21
20
19
18
17
16
Holmen Annual Report 2024 11
Strategy and targets

Investment case
The value of
owning forest
Forest land is a fantastic asset. It
provides a renewable raw material
that can be processed into the
climate-smart products needed for
a sustainable future. And at the
same time, wind and hydro power
can be produced without interfer-
ing on the forestry.
Forest products have a key role in reduc-
ing our dependence on fossil raw materi-
als and demand will be in ever greater
going forward. Active forestry improves
the growth of trees and thus increases
the amount of renewable raw material.
Owning 1.3 million hectares of land gives
Holmen big opportunities to create value
over time.
The growth in the forest is the result
of 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. In 2024, Holmen’s
total volume of standing timber amounted
to 127 million m3 growing stock, solid over
bark, which is 5 per cent higher than 10
years ago. In addition to harvesting the
forest on our own land, we also purchase
wood from private forest owners and
other Swedish forest companies. Almost
15 000 private forest owners have chosen
us as a forestry partner. The amount of
forest we refine at our own production
facilities is thus twice the volume that we
harvest from our own forest, and all this
wood is used for everything from timber
for climate-smart construction to renew
able packaging, magazines and books.
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 paper-
board and paper. Wood products used for
houses and other structures add consider-
able value by storing carbon for a long
period while at the same time replacing
fossil emissions from the manufacture of
concrete and steel. Paperboard and paper
also contribute to a better climate when
they replace fossil materials, are recycled
and finally create benefit as bioenergy.
In addition to logs and pulpwood, wood
shavings, bark, treetops and branches
have their own uses and are sold on for
the production of district heating and so
on. Nothing goes to waste.
Wind and hydro power. Holmen’s renew-
able energy production is dominated by
the plannable hydro power from our 21
wholly or partly owned power stations.
Hydro power provides a reliable electricity
supply and delivers major social benefits
in the transition to more renewable energy
sources.
Owning forest land also gives us the
option of developing wind power on our
land. This is a great way to derive added
value from our land, as higher energy
production provides a good cash flow.
Holmen currently has two wholly owned
wind farms, with annual production of 0.6
TWh, contributing to the 1.9 TWh hydro
and wind power supplied in total in a
normal year. In 2023, we obtained
permits for another two wind farms on
our land. One of these, Blisterliden Wind
Farm, is under construction in Väster
botten and is planned to be operational
by 2026.
Other opportunities on our land.
The availability of cheap and fossil-free
electricity makes northern Sweden attrac-
tive for the establishment of data centres
and other electricity-intensive industries.
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 recreation. Extracting
stone and gravel from our own land for
use in projects such as road building is
another possibility for landowners such
as Holmen.
Net sales and operating costs, SEKm
Total shareholder return Holmen B and Stockholm
Stock Exchange
0
100
200
300
400
500
600
Jan 25
24
23
22
21
20
19
18
17
16
15
Index
0
5 000
10 000
15 000
20 000
25 000
24
23
22
21
20
Net sales
Operating costs
Holmen B
Stockholm Stock Exchange (OMXSGI)
12 Holmen Annual Report 2024
Investment case

Value of forest confirmed
by historical transactions
Holmen’s land holdings cover 1.3 million hectares, of which a little over a
million is productive forest land. The land holdings are split across around
4 300 forest properties from Småland in the south to Västerbotten in the north.
A large number of forest property transac-
tions are carried out every year in Sweden.
Holmen’s forest assets are recognised at
fair value based on the prices paid for
forest properties in the areas in which
our forest is located. As of 31 December
2024, the book value stands at SEK
57 843 (56 348) million, which averages
out at SEK 55 (54) thousand per hectare
of productive forest land.
The value varies across 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 wood producing capacity,
a shorter harvesting cycle and greater
demand for forest land.
For more information about Holmen's
valuation of forest land and biological
assets, see pages 78–81.
Holmen owns 1.3
million hectares
of forest and land
in Sweden,
equivalent to
almost two million
football pitches.
Holmen's wood prices, SEK/m3sub
Price of forest properties, SEK/m3 growing stock,
solid over bark
200
350
500
650
800
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
Real
Nominal
0
100
200
300
400
500
600
700
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
All of Sweden
Source: Ludvig & Co based on transactions they have brokered themselves.
Holmen Annual Report 2024 13
Investment case

Investment case
Focus on climate
and biodiversity
Our world is governed to a large
extent by the EU’s high ambitions
to limit global warming and protect
biodiversity. Since energy accounts
for almost three quarters of global
greenhouse gas emissions, the
energy issue is closely tied up with
our opportunities to curb climate
change.
The transition to a fossil-free society
demands more renewable material, which
means that the earth’s surface needs to be
managed more efficiently and to a greater
extent. If we are to successfully transition
to a fossil-free society, we simply must
break our dependence on fossil resources
and make sure that more carbon atoms
remain in the ground. Only then can we
meet the needs of today’s growing popu-
lation without compromising the ability
of future generations to do the same.
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. Utilising the
resources offered by growing forests
enables the phasing out of fossil-based
alternatives, but it also comes with great
responsibility. Forests have to be sustain-
ably managed, with healthy ecosystems
and rich biodiversity, in order to provide
the renewable raw material needed for
the transition.
We contribute renewable products
and green electricity
Holmen has been managing forests since
the 17th century and the trees we plant
today will grow for almost 100 years
before they are ready to be harvested.
And an awful lot can happen in that time.
The forest could be hit by drought, fires,
storms and pests. Active management
increases the resilience of the trees even
as knowledge of how to create healthy
ecosystems and thriving forests constant-
ly grows. With a production cycle in the
forest of almost a century, change does
not happen overnight, but several indica-
tors clearly show positive developments.
International studies also show that
the status of biodiversity in Sweden has
improved over the last 50 years, currently
putting it well above the European average.
The forest has a key role to play in the
climate transition and demand for both
logs and pulpwood is expected to increase.
But while the forest is a renewable
resource, the supply of this raw material
is limited across much of the world. With
demand for forest raw material expected
to grow, global timber supplies are coming
under increased pressure. As one of
Sweden’s biggest forest owners, we are
largely able to supply our Swedish produc-
tion units with renewable raw material
from our own sources, which boosts our
competitiveness while also promoting the
development of our industrial facilities.
At a time when the whole world needs
to transition away from fossil materials
and energy sources, electricity use is also
expected to increase, creating substantial
demand for more fossil-free electricity.
Much of the energy transition has already
been achieved within Holmen and we have
drastically reduced the fossil emissions
from our industrial sites – not least in
comparison with European industry as a
whole. In combining forestry and electri
city production on our land, we are also
taking responsibility for our electricity
consumption, while playing our part in
the energy transition that society so badly
needs.
Holmen’s sustainably managed forests
capture and store carbon dioxide, and
the renewable products we offer replace
fossil alternatives, while our production of
hydro power and wind power contributes
to the transformation of Europe’s energy
system. The more we produce, the greater
our contribution to the green transition.
Greenhouse gas emissions 2005–2023
Biodiversity Intactness Index 1970–2023*
European industry excl. incineration (left)
Holmen’s production, scope 1 emissions (right)
*90 per cent is a threshold value for healthy ecosystems.
Europe
Sweden
0
100
200
300
400
500
600
700
2023
2020
2017
2014
2011
2008
2005
0
100
200
300
400
500
600
700
Mt CO2e
Kt CO2e
70
75
80
85
90
95
100
%
2023
2010
2000
1990
1980
1970
14 Holmen Annual Report 2024
Investment case

We reduce our customers’
fossil footprint
Holmen gives quality-conscious customers all over the world access to products from the Swedish forest, and
the best thing we can do for the climate is to help more customers replace fossil alternatives with renewables.
It is here too that Holmen’s contribution to the green transition becomes most tangible – when our products
reduce the need for fossil materials and raw materials, so that coal, oil and gas can stay in the ground.
Wood products for sustainable building
Building in wood offers many advantages. The manufacture
of wood products is energy-efficient and the carbon dioxide
absorbed by the growing trees continues to be stored in the
buildings for a long time. Despite the weakness of the con-
struction sector in recent years, wood construction has made
positive advances in Sweden and interest in sustainable
building in wood is steadily growing.
According to a study by Prognoscentret, the share of
timber frames in newbuilds grew from 12 per cent to 23
per cent in Sweden between 2018 and 2023. The greatest
increase was seen in public buildings, including schools and
care facilities, with the proportion of timber frames reaching
40 per cent in this category in 2023.
Use of timber frames is increasing in Sweden, %
Wood
Concrete and steel
Climate-smart fibre products
With renewable raw material, fossil-free electricity and
resource-efficient production, we are able to offer products
with a low carbon footprint. Holmen began planning for the
transition from fossil energy use in our industries back in
the early 2000s, and today we have switched to using mainly
fossil-free electricity and renewable energy from biofuels
in our production. This is also a major reason why our paper-
board and paper products have a low carbon footprint
compared to those of many of our competitors.
Products with low footprint,
tonnes CO2e/tonne product
Scope 1 (own emissions)
Scope 2 (emissions from purchased energy)
Wind power creates opportunities
for more green electricity
Holmen’s hydro power is a valuable resource that generates
renewable electricity at a low cost, and can be channelled
to periods of peak energy demand. As a major landowner,
Holmen also has considerable opportunities to generate
more renewable electricity by building wind power at a
competitive cost.
Holmen’s entire land holdings, totalling 1.3 million
hectares, have been analysed, and 260 areas appear
to have potential for wind power. Of these, 160 areas are
judged suitable sites for wind power. Holmen currently
has around 30 projects in various stages of development,
from in-depth analysis to handling the permit application.
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Holmen
Sweden
Finland
France
UK
Italy
Spain
Germany
Analysis of Holmen’s land holdings
No. of areas
Total area, hectares
Analysed areas with
potential for wind power
260
380 000
Of which, areas judged
suitable for wind power
160
260 000
Of which, priority areas
30
80 000
0
20
40
60
80
100
2023
2018
Holmen Annual Report 2024 15
Investment case

profits hold
up in 2024
Operating profit*
Business area, %
Net sales and operating margin
Operating profit/loss and return
Net sales
Operating margin*
*Excl. items affecting comparability
Operating profit*
Industry’s return on capital employed*
Return on equity**
*Excl. items affecting comparability
**Excl. forest revaluation 2019

Total: 3 721 SEKm
Forest
1 947 SEKm
Renewable Energy
265 SEKm
Wood Products
2 SEKm
Board and Paper
1 702 SEKm
*Excl. Group-wide
Cash flow, SEKm
Net debt as % of equity
Capital employed*
Business area, %
Forest
Renewable Energy
Wood Products
Board and Paper
*Excl. Group-wide
0
5 000
10 000
15 000
20 000
25 000
24
23
22
21
20
19
0
10
20
30
40
50
22 759
16
SEKm
%
0
2 000
4 000
6 000
8 000
24
23
22
21
20
19
3 721
0
15
30
45
60
16
5
%
SEKm
0
5
10
15
20
25
24
23
22
21
20
19
6
Dividend
Share buy-back
Investments
Acquisitions
Cash flow before investments
and changes in working capital
0
2 000
4 000
6 000
8 000
24
23
22
21
20
19
647
2 066
1 831
3 728
75
8
13
4
50
7
43
0
16 Holmen Annual Report 2024
The year in brief
The year in brief

In 2024, central banks brought inflation under control and interest rates have
been cut across the board, but this has not yet reignited consumption and new
construction. Despite challenging market conditions, we were able to maintain a
good profit level of SEK 3 721 million, thanks to our integrated business model.
Business area
Comments
Outlook
Forest
Competition was high in the wood market and the
supply of forest raw material has been insufficient to
meet the growing demand from the forest industry and
the energy sector. Wood prices climbed further in 2024,
raising the operating profit from Forest to SEK 1 947
million. The value of Holmen’s forest properties, based
on transaction prices, rose by SEK 1.5 billion to SEK 58
billion.
Demand for logs remains high even with a weak construc-
tion sector. Despite production constraints at Nordic mills,
competition for pulpwood is favourable due to a combination
of closed Russian borders, pulp mill expansion and increased
use of biofuels by heating plants. Our position in the wood
market, with good control over raw materials and the entire
value chain, ensures the long-term security of our raw
material supplies and gives us good opportunities to continue
developing our industries. At the same time, it is becoming
increasingly clear that forests have an important role to play
in the transition to a fossil-free world.
Renewable
Energy
Energy remains expensive in Europe due to high fossil
fuel prices. Nevertheless, electricity prices in northern
Sweden were 30 per cent lower than the average for the
past twenty years, partly due to unusually high water
flows. The low electricity prices contributed to a de-
crease in operating profit to SEK 265 million. In 2024,
Renewable Energy’s average sales price was 30 per
cent higher than the market price in northern Sweden,
as it was possible to steer production towards times
when it was needed most.
With renewable electricity in high demand, we continue to
direct hydro power generation towards times of peak usage
and offer services to stabilise the electricity grid. We are also
focusing on the development of permits for new wind power,
targeting projects with good wind conditions and a low cost of
connection to the electricity grid.
Wood Products
The wood products market of 2024 was still marked
by the weakness of the construction sector, while
supply was limited due to global raw material shortages.
Operating profit for Wood Products remained low in
2024, at SEK 2 million. Selling prices rose and revenue
from wood chips and biofuel increased, but this was
offset by rising costs for logs.
There is great interest in building with wood because of its
positive climate footprint, but the construction market is
weak, with low rates of newbuild projects. With well-invest-
ed sawmills and greater processing capacity, we neverthe-
less see good opportunities to develop the wood products
business in pace with the increasing demand for sustainable
building materials.
Board and Paper
Demand for consumer paperboard in Europe improved
in 2024 but remained below normal, while demand for
paper was on a par with the previous year. Paperboard
prices were broadly stable, but paper prices fell back
from their very high level in 2023. Despite rising raw
material costs, Board and Paper delivered an operating
profit of SEK 1 702 million thanks to production effi-
ciencies, increased deliveries and higher revenue from
ancilliary services.
The market for consumer paperboard improved in 2024 after
the destocking of 2023, but consumption in Europe is still
lower than it has been historically. The structural decline
in demand for paper continues. Prices are currently driven
mainly by the trend in production costs for producers on the
continent who are dependent on recycled fibre and fossil
energy. Given our strong market positions in selected niches,
and our well-invested production facilities, we see good
opportunities to create ample added value.

Holmen’s financial position remains strong, even
after dividends, share buy-backs and investments.
The Group’s net financial debt at year end amounted
to SEK 3 397 million, corresponding to 6 per cent of
equity. With a strong financial position, we are well
equipped for the transition to a fossil-free world.
Key figures
2024
2023
Net sales, SEKm
22 759
22 795
Operating profit/loss, SEKm
3 721
4 755
Profit for the year, SEKm
2 861
3 697
Diluted earnings per share, SEK
18.0
23.0
Ordinary dividend per share, SEK
9.0*
8.5
Extra dividend per share, SEK
3.0*
3.0
Industry’s return on capital employed, %
16
27
Cash flow before investments and changes in working
capital, SEKm
3 728
5 311
Cash flow from investments, SEKm**
2 066
1 653
Equity, SEKm
57 370
56 923
Net financial debt, SEKm
3 397
1 869
Net debt as % of equity
6
3
Average no. of employees (FTE)
3 498
3 546
*Board proposal. **Net including company acquisitions but excluding changes in non-current financial receivables.
Holmen Annual Report 2024 17
The year in brief

Holmen focuses on achieving high and
profitable growth, while also ensuring that
all naturally occurring species can thrive in
the forest landscape. Holmen’s land hold-
ings cover 1.3 million hectares, of which a
little over a million is productive forest
land. As one of Sweden’s biggest forest
owners, we have a strong position in
the wood market and are largely able to
supply our Swedish production units with
renewable raw material from our own
sources, which boosts our competitive-
ness while also promoting the develop-
ment of our industrial facilities.
We grow houses
In our forests, we grow houses. By this we
mean that we manage the forest in a way
that generates as much timber as possi-
ble. As the trees grow, they absorb carbon
dioxide, which remains stored in the wood
products that are used to build homes.
Using the renewable forest raw material
in place of fossil alternatives doubles the
climate benefit. In addition, the larger the
area managed, the more carbon dioxide
is captured. Forest that is not actively
managed delivers nowhere near the same
long-term climate gains, since the carbon
released from old trees and plants as they
die and rot down to a large extent cancels
out the absorption capacity of the younger
trees. It also removes the option for wood
raw material to replace products with a
greater climate impact.
When we harvest trees, nothing goes
to waste. The logs are used for the produc-
tion of wood products for sustainable
building, while the narrower parts of the
trees and wood from thinning, along with
residual products from the sawmills in the
form of wood chips, are used to manufac-
ture paperboard and paper. The remain-
der comprises branches, tops and bark,
which are used to produce bioenergy.
The forest ecocycle
The forest is ready for harvesting when
growth tails of, along with the tree’s capa
city to absorb and store carbon dioxide.
After harvesting, all the land is reforested,
with at least two seedlings planted for
every tree harvested. 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. 10–30 years before the
forest is harvested, it can be fertilised to
further boost growth.
45 million seedlings. Holmen’s two
nurseries – one in Gideå and one in Frigge-
sund – produce 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 of wax or sand to
protect against insect attack. Holmen
is also involved in the development of
improved seedlings that will grow better,
produce higher quality timber and be
more disease resistant.
Long-term planning. With a production
cycle of almost a century in the forest,
long-termism is more than just a buzz
word for us. Planning is the foundation of
active forestry, and every 10 years we
conduct an inventory of our entire forest
holdings in order to calculate sustainable
harvesting levels and ensure a growing
volume of standing timber over time. The
assets of our forests are also detailed in
local ecological landscape plans, which
describe how the forests are to be man-
aged over the long term in order to
preserve existing natural assets and to
create new ones. Holmen invests a little
over SEK 200 million a year in future
growth through silviculture and fertilisa-
tion. Holmen’s forestry is certified and all
the wood is traceable.
Research and development
Given the major contribution that the
forest makes to both the climate and the
Swedish economy, management of the
forest is of great national, regional and
local significance. It is in our interest and
equally in the interest of society for us to
manage our forests actively and sustaina-
bly and for us to make wise use of the raw
material. Holmen and other industry peers
have therefore joined forces to make poli-
ticians, authorities and the general public
more aware of how vital the forest is for
the climate, and the importance of forest-
ry for a growing bioeconomy.
Although we have built up extensive
knowledge of how to manage our forests,
we are convinced that the way to advance
and refine our methods is through re-
search and collaboration. Therefore there
are a hundred or so research projects con-
ducted on our land, both independently
and in partnership with research organisa-
tions, universities and other stakeholders.
Holmen’s Knowledge Forests. To raise
awareness of our forestry and forest re-
search, we have established four Knowl-
edge Forests. The forests are selected
for their specific biological conditions
and are used to explore, gather and pass
on knowledge. This is also our way of
showing how sustainable forestry
can promote growth while at the same
time increasing biodiversity in the forest.
Holmen’s nurseries produce
45 million seedlings each year
sustainable
forestry
The forest is a stable source of revenue for Holmen
and the strategy is to increase the revenue from and
future value of the forest holdings through active and
sustainable forestry with high growth. Forests also
provide significant climate benefits by sequestering
carbon dioxide and supplying industry with renewable
raw materials.
Forest
18 Holmen Annual Report 2024
Forest

Inventory
* Estimate
Operating profit
Operating profit/loss excluding items
affecting comparability
Key figures
2024
2023
Net sales, SEKm
9 318
7 996
Of which from own forest,
SEKm
1 990
1 768
Operating profit/loss, SEKm
1 947
1 523
Investments, SEKm
229
222
Book value, forest assets,
SEKm
57 843
56 348
Average no. of employees
(FTE)
477
459
Deliveries, own forest,
’000 m3sub
2 643
2 702
Comment on results

Competition was high in the wood market
and the supply of forest raw material has
been insufficient to meet the growing
demand from the forest industry and the
energy sector. Wood prices climbed fur-
ther in 2024, raising the operating profit
from Forest to SEK 1 947 million. The
value of Holmen’s forest properties is rec-
ognized based on transaction prices and
rose by SEK 1.5 billion to SEK 58 billion.
Holmen’s forests 2024

Total land acreage
1 303 000 ha
Total forest land acreage*
1 160 000 ha
– of which nature conservation areas
211 000 ha
Productive forest land**
1 045 000 ha
Total volume of standing timber
on productive forest land
127 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.
SEKm
0
500
1 000
1 500
2 000
24
23
22
21
20
19
1 947
0
50
100
150
2024*
2019
2010
2000
1993
1988
1975
1965
1955
1948
Volume of standing timber, m3
growing stock, solid over bark per
hectare of productive forest land
Holmen Annual Report 2024 19
Forest

Forest
High demand
for forest raw material
The forest has a key role to play in
the climate transition and demand
for both logs and pulpwood is
expected to increase. But while the
forest is a renewable resource, the
supply of this raw material is limited
across much of the world, and the
global supply of timber is becoming
increasingly strained.
In recent years, the forest raw material
supply has been unable to keep up with
the growing demand from the forest in-
dustry and the energy sector. Fierce com-
petition for the raw material has pushed
up Swedish wood prices by 50 per cent
since 2021.
There are several factors behind the
global timber shortage. Canada has been
hit by major bark beetle infestations,
which has severely cut the annual harvest.
The province of British Columbia has seen
harvests halve in the past ten years, from
over 70 million m3 in 2014 to around 35
million m3 in 2023. Canada has also been
badly hit by forest fires. In Europe, spruce
bark beetle infestations have forced large
swathes of Central Europe to increase
logging operations to deal with affected
trees. In the long term, this is expected to
lead to lower volumes. The war in Ukraine
has also affected the supply of wood raw
material on the European market, since
EU sanctions have stopped wood imports
from Russia.
Sweden is a forestry nation
In Sweden, we have managed our forests
for generations and forestry is deeply
rooted in our culture. This is perhaps not
surprising, given that only 3 per cent of
Sweden’s surface area is built up, while
almost 70 per cent is forest. Despite our
small size, Sweden is one of the world’s
largest producers of wood products and
fibre products, much of which are export-
ed. Sweden is the world’s third largest
exporter of softwood timber products and
the sixth largest producer.
Over the years, we have developed
long-term, rational management of our
forests and we have a well-developed
forest industry. Over the past 100 years,
the amount of forest in Sweden has
doubled, while harvests have increased.
With many other major forestry nations
suffering significant supply issues, the
knock-on effect is to increase the global
importance of products from Swedish
forests.
Own forest gives control over
raw material
Holmen’s large forest holdings and close
partnerships with 15 000 private forest
owners creates considerable economies
of scale, giving us a strong position in the
wood market. Alongside extensive timber
trading, we provide our industrial sites
with raw material that is distributed via
efficient logistics solutions. With growing
capacity to produce wood products near
our forest holdings, we can also process
an ever-increasing proportion of our forest
at our own industrial sites. Our substantial
forest holdings ensure the long-term
security of our raw material supplies and
provide a solid foundation for the contin-
ued development of our industries.
20 Holmen Annual Report 2024
Forest

Traceable raw material
from sustainably managed
forests
Holmen’s forestry operations are certified in
accordance with the ISO 14001 environmental
management system and our forestry has chain-
of-custody certification, which means that all
timber can be traced back to its origin. Holmen’s
production facilities at which wood raw material
is used also have chain-of-custody certification.
This assures customers that our products are
fully traceable to sustainably managed forests.
The upcoming EU Deforestation Regulation (EUDR) aims
to prevent trade in goods that contribute to deforestation
and forest degradation worldwide. Under the EUDR, all
operators must be able to confirm the origin of raw
materials and that no deforestation has occurred during
production.
Holmen’s processes and traceability systems are well
equipped to meet the three core requirements of the
new EU legislation: deforestation-free production,
compliance with national legislation and the issuance of
a due diligence statement, i.e. our processes for
identifying and managing risks in our value chain.
Much of the forest raw material that Holmen
processes comes from our own forest holdings, but we
also buy raw material from private forest owners. In fact,
the amount of forest we process at our own facilities is
twice the amount harvested from our forests. Holmen
has long-standing procedures for tracing all timber
purchased in Sweden, and we do not buy timber from
forests that:

– Are key habitats in Sweden according to the Swedish
Forest Agency’s definition and methodology.

– Are protected for nature conservation reasons.

– Are primary forests, that is to say layered natural
forests of differing age with ample presence of old,
large trees and ample dead wood in various stages of
decomposition.

– Have been harvested illegally.

– Originate from genetically modified trees.

– Grow in areas in which human rights are actively
impeded.

– Have high conservation value.
Taken all together, we thus have robust systems in place
to ensure that our products fulfil the most stringent
traceability requirements. This provides our customers
with a dependable and transparent supply chain, from
forest to end product.
50%
How much Swedish wood prices
have risen since 2021
Forest assets
Proportion of forested land, %
Source: FAO Global Forest
Resources Assessment 2020
>66
51–65
31–50
11–30
Holmen Annual Report 2024 21
Forest

Comment on results

The wood products market of 2024
was still marked by the weakness of the
construction sector, while supply was
limited due to global raw material
shortages. Operating profit for Wood
Products remained low in 2024, at SEK
2 million. Selling prices rose and revenue
from wood chips and biofuel increased,
but was offset by rising costs for logs.
Consumption of wood products
0
50
100
150
200
250
300
350
24
23
22
21
20
19
18
17
16
15
Million m3
Price development
0
100
200
300
400
500
24
23
22
21
20
19
18
17
Index
Europe
North America
China
Other Asia
MENA
Export price Sweden
US price
2024
2023
Net sales, SEKm
3 896
4 075
Operating profit/loss, SEKm
2
6
Investments, SEKm
364
391
Capital employed, SEKm
2 375
2 139
Average no. of employees
(FTE)
770
773
Deliveries, ’000 m3
1 348
1 498
Key figures
Operating profit/loss and return
Operating profit
Return on capital employed
SEKm
-400
0
400
800
1 200
1 600
2 000
24
23
22
21
20
19
0
2
-20
0
20
40
60
80
100
%
22 Holmen Annual Report 2024
Wood Products

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. The raw material
comes from responsibly managed forests,
and the business is being developed by in-
creasing the value added and making bet-
ter use of the wood raw material in combi-
nation with large-scale production.
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 basic as planks and
boards create great value, not least for the
climate. As demand has increased, sales
of residual products from the sawmills in
the form of wood chips and biomass fuels
have also become more important factors.
Sustainable building
Wood is a fantastic material. It is strong,
versatile, lightweight and the only renewa-
ble building material that can be used in
load-bearing structures. As a natural part
of the ecocycle, they store carbon for their
entire lifetime and when the time comes
to demolish a wooden building, the mate-
rial can be reused, recycled or used for
energy production to heat other buildings.
Building in wood is therefore significantly
better for the climate than building in con-
crete and steel, since the manufacture of
these materials requires large amounts of
energy and generates considerable emis-
sions of fossil carbon dioxide. In contrast
to steel and concrete, the manufacture of
wood products is highly energy-efficient, a
key consideration in a world facing energy
shortages. In addition, the whole chain
from manufacture to transport is more
energy-efficient and cost-effective, since
wood weighs less. Wood products thus
create benefit for the climate on multiple
fronts.
Holmen offers everything from joinery
timber and refined products for builders’
merchants to advanced construction com-
ponents. Through Martinsons, we are also
able to offer the planning and construction
of complete timber frames for everything
from sports halls and schools to ware-
houses, apartment buildings and offices.
Added value in large-scale
production
Holmen’s high-tech sawmills enable us
to offer a wide range of dimensions and
grades. The sawmills make use of the en-
tire log, and the value is extracted accord-
ing to the unique properties of each log.
We optimise the sawing and drying in co-
operation with our customers to minimise
wastage and maximise customer benefit.
Local raw material. Holmen’s five saw-
mills are strategically located close to our
forest holdings from north to south, ensur-
ing an efficient logistics chain from forest
to sawmill. Proximity to the raw material,
combined with efficient wood sourcing, is
a key factor for profitability. With access to
a global transport network via rail, road
and, not least, sea, we supply customers
all over the world with wood products
from the Swedish forest.
Energy-efficient production units. Two
of the Group’s sawmills, Braviken and
Iggesund, form energy-efficient units with
their neighbouring paper and paperboard
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.
Investment in capacity and adding value.
Iggesund Sawmill has carried out exten-
sive development projects in recent years,
with investments in a new drying plant,
timber sorting and a new planing mill cre-
ating the scope to increase the sawmill’s
capacity by 20 per cent. This modernisa-
tion also means that lower grade pine for
joinery can be replaced by construction
timber in both spruce and pine. The final
phase of the expansion is to install a new
resaw that will provide a better saw yield,
greater productivity and an improved
product mix.
Climate change driving demand
With the building sector accounting for a
third of carbon emissions in Europe, prop-
erty developers, architects and construc-
tion companies have high ambitions to
reduce the carbon footprint of buildings.
As a building material, wood is benefitting
from the ongoing green transition, in a
trend that is expected to boost demand
for wood products, particularly if concrete
and steel start carrying their true cost to
the climate. There is considerable poten-
tial for growth, not least for medium-sized
buildings such as schools, warehouses
and apartment blocks.
While building in wood is nothing new,
there has been a surge of interest in large-
scale wood construction in recent years.
Demand for engineered wood products,
especially CLT and glulam beams, is
growing and with rising interest in wood
construction, we see great opportunities
to further develop the business as the
market continues to recover.
Wood Products
Wood is the only renewable
construction material
Building the
future in wood
Holmen offers a wide range of wood and timber products
for construction and joinery. Developing the wood
products business is a natural extension of our forestry
and a key dimension of our strategy of owning and adding
value to the forest.
Holmen Annual Report 2024 23
Wood Products

Timber frames capture market share
With the climate challenge high on
the agenda, timber frames continue
to take market share from steel and
concrete structures. In fact, the
proportion of timber frames has
almost doubled over a five-year
period, according to statistics from
the independent market research
company Prognoscentret.
Sweden has seen the proportion of timber-
framed buildings grow in most project
categories in recent years. Between 2018
and 2023, the total market share of timber
frames rose from 12 to 23 per cent. The
success of timber frames can probably be
attributed to a generally higher level of
maturity in the market, where greater
knowledge and acceptance at the client
level has made wood construction solu-
tions an increasingly common choice.
The steady increase has been relatively
even across different segments of the
construction sector, although some areas
in particular stand out. The trend has been
strongest for public-sector buildings in
health, education and social care, areas in
which as much as 40 per cent of all new
buildings are built with a timber frame.
One explanation for the high demand for
wooden buildings from public-sector
clients is likely to be the sharper focus on
climate change and the flexibility of the
material, which allows for future
remodelling.
Larger industrial projects continue to
use a high proportion of non-wood fram-
ing materials, but among smaller projects,
which are more numerous, wood is clearly
making inroads. Between 2022 and 2024,
the proportion of industrial projects with
timber frames increased from 23 to 34 per
cent. More and more developers are also
choosing to build office buildings with tim-
ber frames because of the positive effects
of the material, including pleasant indoor
environments, shorter production times
and reduced transport due to the low
weight of wood.
With so many benefits to building with
wood, creating sustainable, attractive
solutions that more and more people
value ensures a bright future for wood
construction.
Glulam extension for Arlanda
After check-in and security control in Terminal 5 at
Stockholm Arlanda Airport, travellers arrive at the airport’s
new marketplace, with its shops, restaurants and cafés.
Through Martinsons, Holmen supplied and assembled the
glulam frame for the extension, which is a statement of
Swedish design and engineering prowess.
The architecture and retail provision of the
new marketplace in Terminal 5 have a
Nordic flavour, while the airy spaces also
offer views of the aircraft taking off and
landing. The architect’s vision for the
extension of almost 3 000 square metres
presented many technical challenges, not
least due to the unique V-shaped columns
and the slight curvature of the whole
building.
The ambition to combine sustainability,
aesthetics and functionality made the pro-
ject an excellent fit for what Martinsons
offers. As part of Holmen, Martinsons is
able to provide value-adding expertise at
all stages, from responsible forestry and
production of glulam and CLT to project
planning, project management and final
assembly. In addition to the delivery and assembly of the glulam frame,
which was manufactured at Bygdsiljum Sawmill, the commission also
included the design of the structure and construction documents.
The terminal extension was completed in 2023, with construction of
the restaurants and cafés continuing in 2024. The new marketplace is
expected to be fully finished by early 2025.
23%
↓
12%
How much the total market share
of timber frames rose
between 2018 and 2023
24 Holmen Annual Report 2024
Wood Products

Wood Products
Drones ensure
safer work
environment
Conducting inventories of log piles can
be both hazardous and difficult.
Holmen’s sawmills are therefore using
drones as a way to improve the safety
and accuracy of the measurements.
A height-measuring drone flies over the tim-
ber storage at sawmill and takes hundreds of
images, which are then processed into a final
image using specific software. The image is
then marked with the log piles to be meas-
ured and the grades to which they belong.
The software tool calculates the volume of
the log piles and generates a report that
forms the basis of a transparent inventory
result.
The previous manual process was both
high-risk and time-consuming. The techno-
logical advances that come with drone use
have contributed to several efficiency gains.
Instead of the nine hours that a traditional
inventory of the timber storage takes, the
drone images are taken in just over 15 min-
utes. The new inventory method brings
numerous advantages, not least from a safe-
ty perspective. There is no need for people to
be moving amongst conveyors, timber trucks
and forklifts, and the method minimises
downtime in production as the inventory can
continue without interrupting log handling.
We believe in nature, we believe in tech-
nology, and we believe in the opportunities
that exist at the intersection of the two.
Bringing nature and technology together
allows us to make progress that benefits
people, the environment and society. In this
case, we save time, obtain more accurate
data and create a safer work environment
for our employees.
Holmen Annual Report 2024 25
Wood Products

A common denominator for our paper-
board and paper products is that they are
much appreciated by conscious custom-
ers with high ambitions, thanks to their
excellent product characteristics and low
climate footprint. We exclusively use
chain-of-custody certified forest raw ma-
terial and have a total of four production
facilities in Sweden and the UK.
Fresh fibre offers multiple benefits
The multi-layered structure, with different
fibre types in different layers, dictates the
high performance of our paperboard,
while the fresh fibre offers several product
advantages. Higher strength and a neutral
effect on smell and taste in contact with
food are just a few of the properties that
add clear value to our paperboard. Our
paper products 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. In con-
trast to recycled fibre-based alternatives,
fresh fibre produces a naturally high
brightness that elevates the way text and
images are experienced.
As Holmen’s fibre products are made
from a renewable, recyclable and biode-
gradable material, they also promote the
circular economy and the phasing out of
fossil-based materials.
Our products and customers
Holmen’s paperboard and paper products
can be divided into two main segments –
packaging and graphical applications.
Our customers are primarily converters,
wholesalers, brand owners, publishers
and printers. We take a long-term ap-
proach to creating profitable product solu-
tions that meet customer needs, and the
growing interest in our climate-smart
products reflects our strategy to help our
customers achieve a more sustainable
business.
Packaging. The packaging segment in-
cludes both consumer packaging and
transport packaging. Holmen’s paper-
board products for consumer packaging
are marketed under three brands: Inver-
cote, Incada and Inverform. The quality,
strength and design properties of the
paperboard mean that we can create
world-leading products for brand owners
with high ambitions. With a renewable raw
material, fossil-free electricity and re-
source-efficient production, we are also
able to offer resource-efficient packaging
paper for corrugated board solutions that
allow customers to reduce their carbon
footprint.
Graphical applications. The graphical
segment includes everything from books
and magazines to advertising and note-
books. The paperboard is used in areas
such as book covers and gift cards, while
Holmen’s book paper is the leading prod-
uct for paperback books in Europe. Pub-
lishers appreciate our papers because
they offer bright and even surface proper-
ties that enhance the reading experience,
while also helping customers to improve
the efficiency of both production and
logistics. Holmen’s lightweight paper
gives customers the opportunity to go up
in format or print run without additional
costs.
Circular production process
Holmen’s production facilities hold
chain-of-custody certification and all
the wood raw material comes from sus-
tainably managed forests. Two of our
production facilities, the paperboard mill
in Iggesund and the paper mill in Braviken,
are integrated with neighbouring saw-
mills, which means that all parts of the
tree are processed directly on site in a
circular production process. Wood chips
from the sawmills are used as a raw
material in pulp production, while bark
and wood shavings are used for biofuel.
The circle is closed when the excess
heat from the mills is utilised in the drying
processes of the sawmills, making them
energy efficient units. The strategic logis-
tical locations of our three Swedish mills
ensure short transport distances for the
wood, plus they are all close to ports with
good capacity.
Holmen’s two paperboard mills were
awarded EcoVadis Platinum in 2024 for
their successful sustainability work, and
the two paper mills received the same
high rating in 2023. This accolade puts the
mills in the top one per cent of more than
150 000 companies worldwide that are
assessed on environmental, ethical and
social responsibility criteria.
Sustainability driving demand
Reducing climate and environmental
impact and avoiding plastic packaging are
strong drivers for increasing the use of
wood fibre-based products such as paper-
board and paper. Demand for paperboard
and paper is largely being driven by eco-
nomic and demographic growth, but also
by changing consumer behaviours and
increased digitalisation. The packaging
market is growing but with strong compe-
tition, while the graphical paper market
has been experiencing an underlying
structural decline over the course of
several years. Demand for paper varies
across the segments, with the book market
remaining stable, while other graphical
segments such as magazine paper have
weakened.
With local wood raw material from our
own forests and a sound energy situation,
Holmen is in a strong position to further
develop our offering.
Board and Paper
World-leading
paperboard and
paper products
Holmen develops innovative paperboard and paper
products for everything from cosmetics, electronics,
pharmaceuticals and food to books, magazines,
advertising and transport packaging. The business
will build on our market-leading position and
by offering resource-efficient alternatives to
traditional products.
Holmen’s book paper is the
leading product for paperback
books in Europe
26 Holmen Annual Report 2024
Board and Paper

Comment on results

Demand for consumer paperboard in
Europe improved in 2024 but remained
below normal, while demand for paper
was on a par with the previous year.
Paperboard prices were broadly stable,
but paper prices fell back from their
very high level in 2023. Despite rising
raw material costs, Board and Paper
delivered an operating profit of SEK 1 702
million thanks to production efficiencies,
increased deliveries and higher revenue
from ancilliary services.
Price development
Operating profit/loss excluding items
affecting comparability
Return on capital employed, excluding
items affecting comparability
2024
2023
Net sales, SEKm
15 238
14 965
Operating profit/loss,
SEKm
1 702
2 730
Investments, SEKm
949
1 011
Capital employed, SEKm
8 019
7 625
Average no. of employees
(FTE)
2 083
2 148
Deliveries, ’000 tonnes
1 424
1 343
Key figures
SEKm
0
1 000
2 000
3 000
4 000
24
23
22
21
20
19
1 702
21
%
0
20
40
60
80
Operating profit/loss and return
European demand for
SBB and FBB
European demand for
mechanical printing paper
Uncoated magazine and book
Coated magazine
Newsprint
FBB
Uncoated magazine
SBB and FBB
0
500
1 000
1 500
2 000
2 500
3 000
ktonnes
24
23
22
21
20
19
18
17
16
15
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
24
23
22
21
20
19
18
17
16
15
ktonnes
0
50
100
150
200
24
23
22
21
20
19
18
17
16
15
Index
Holmen Annual Report 2024 27
Board and Paper

Board and Paper
Invercote Touch
– paperboard with a matt,
raw, uncoated surface
Modern packaging can be subject
to much greater demands than
simply being ‘packaging’. It is also
expected to convey a feeling that
builds the product’s brand. We
developed Invercote Touch for
those customers who wanted to
enhance their offering with a more
natural, uncoated paperboard
product with no glossy finish.
Invercote Touch is designed for premium
packaging and high-end graphic design
that delivers a tactile sense of the raw
material. The paperboard is made without
any coatings in order to increase the natu-
ral feel. And like all products produced by
Holmen, it is based entirely on fresh fibre
from sustainably managed forests. In
common with our other paperboard prod-
ucts, Invercote Touch is built up in several
layers, using specific fibre compositions
for each layer to optimise
performance. The fibre is
selected by shape and
length, and treated in differ-
ent ways to tailor the paper-
board structure to the in-
tended use. The outer layers
of Invercote Touch are pre-
dominantly hardwood fibre
to provide a smooth surface
with good printability, while
the middle layer is softwood
fibre for strength and flexi-
bility. The combination
makes the paperboard ideal
for printing while having
excellent converting
properties.
Invercote Touch is suitable for a range
of end uses, such as packaging premium
products like cosmetics, perfume, choco-
late, pharmaceuticals and electronics.
It has good brightness and
is a hygienic product with no
taste or odour. All the mate-
rials used in the manufac-
ture of our Invercote prod-
ucts are approved for food
contact, making the paper-
board suitable for packaging
food and other sensitive
goods. The paperboard is
also perfectly suited to high-
end brochures and graphics,
such as the cover of an
annual report, for example.
beyond
net
zer0
Årsredovisning
2024
The cover of Holmen’s 2024
Annual Report is printed on
the new Invercote Touch
paperboard product.
28 Holmen Annual Report 2024
Board and Paper

Creating value from
residual products
Holmen grows houses, but not all forest can become
wood products for sustainable building. Planks and
boards have corners, while trees are round, and the
trees that are thinned out to allow others to grow large
are often too small or of too poor quality to become
construction material.
Producing paperboard and paper requires large amounts of raw
material. Forest raw material comes from sustainably managed
forests and for every tree we harvest, we plant at least two new
ones. The wood fibre we use is left over from the production of
construction materials and other wood products. Or from residual
products in forestry.
Efficient production
But we need more than just fresh fibre – we also use a lot of
energy and water in our production. The water is reused several
times over, and before being returned to the sea, it goes through a
multi-stage purification process. The paper production makes
intensive use of electricity and most of the fossil-free electricity
used is purchased externally, while our paperboard mills are
largely self-sufficient in renewable heat and electricity.
Holmen’s efficient use of resources, access to green electricity
and smart energy recovery systems also ensure low carbon
emissions from our production. Using paper and paperboard from
Holmen will most likely enable our customers to reduce the
carbon footprint of their purchased material.
Recycled paper grows in the forest
Many people who draw a distinction between paper and recycled
paper forget that both actually come from the same fibre. When
wood fibre is used for the first time, it is called fresh fibre, but
when the paper or board is recycled, it is called recycled fibre.
Holmen has a circular business and works to ensure that our
products can be reused and recycled as much as possible. Making
products from recycled fibre requires a lot of energy, and a wood
fibre can only be used so many times. Each time the fibre is
recycled, it gets shorter and weaker, and eventually it becomes
exhausted. The recycled paper system therefore needs a constant
supply of fresh fibre in order to continue functioning.
New packaging product and higher
capacity for book paper
In 2024, we rebuilt the PM52 paper
machine at Braviken Paper Mill to be able
to produce a stronger packaging paper
and to smoothly switch between graphical
paper and packaging paper. The rebuild
also expands our book paper capacity and
2025 will see us launch a new product
concept with a fresh fibre-based kraftliner
and fluting for transport packaging.
Our kraftliner combines low grammage
with a low carbon footprint and great
printability, as well as being approved for
food contact. In choosing our kraftliner,
customers get a lighter product with the
lowest climate footprint on the market.
PM52
is the paper machine with the lowest
climate footprint in the market
Holmen Annual Report 2024 29
Board and Paper

Comment on results

Energy remains expensive in Europe due
to high fossil fuel prices. Nevertheless,
electricity prices in northern Sweden were
30 per cent lower than the average for the
past twenty years, partly due to unusually
high water flows. The low electricity prices
contributed to a decrease in operating
profit to SEK 265 million. In 2024, Renew-
able Energy’s average sales price was 30
per cent higher than the market price in
northern Sweden, as it was possible to
steer production towards times when it
was needed most.
Operating profit/loss and return
Operating profit/loss excluding items
affecting comparability
Return on capital employed, excluding
items affecting comparability
Key figures
2024
2023
Net sales, SEKm
642
1 070
Operating profit/loss, SEKm
265
697
Investments, SEKm
559
59
Capital employed, SEKm
4 588
4 283
Average no. of employees
(FTE)
34
29
Deliveries of hydro and
wind power, GWh
1 728
1 658
SEKm
0
300
600
900
1 200
24
23
22
21
20
19
6
0
8
16
24
32
%
265
European electricity consumption
23
18
13
08
03
98
0
2 000
4 000
6 000
TWh
EUR/MWh
0
100
200
300
400
500
600
24
23
22
21
20
19
European energy consumption, %
19
29
35
10
8
4
8
7
Electricity
Fossil fuels
Fossil gas
Nuclear power
Oil
Renewables
Coal
Other
Source: Our World in Data
Fossil fuels
Nuclear power
Renewables
SE2 (Sundsvall)
SE3 (Stockholm)
Germany
Gas power
Price development
30 Holmen Annual Report 2024
Renewable Energy

Holmen produces renewable energy from
water and wind. Hydro power is a vital en-
ergy source for society, not least as it can
be regulated to meet variations in the
market balance. As a complement to the
existing controllable hydro power, our
strategy is to increase energy production
by building wind farms on our own land.
Developing wind power on our land is a
natural complement to our hydro power,
while creating added value from our forest
ownership.
Strength in own energy assets
Holmen supplied 1.7 TWh renewable
electricity from hydro and wind power in
2024. Together with the renewable elec-
trical energy that is produced at the
Group’s mills, our production of hydro and
wind power equates to around 60 per cent
of Holmen’s overall energy use.
Flexible hydro power. The majority of
Holmen’s electricity production is control-
lable hydro power from our 21 wholly or
partly owned power stations. Transition-
ing the energy system to more weather-
dependent energy sources will bring
challenges, since the power supply has to
be maintained every minute of every day,
all year round. As more of the weather-
dependent production is added to the
electricity system, more regulating capac-
ity is needed to keep the system in bal-
ance. Hydro power stations can generate
both baseload power and regulating pow-
er, which is the energy needed to meet
fluctuations in demand. Production is
tailored to demand or changes in other
electricity production by reducing or in-
creasing the flow of water through the tur-
bines. As the share of weather-dependent
energy sources increases, the value of this
stabilising capacity has grown in recent
years, and with it the market for different
forms of ancillary services that contribute
to a stable electricity system.
Another benefit of hydro power is ser-
vice life. A hydro power station can deliver
electricity for a very long time. The invest-
ment required is relatively small, and the
operating and maintenance costs are low
since the plants are almost entirely auto-
mated. The climate impact of the opera-
tion is also marginal, with minimal
emissions. Overall, hydro power brings
major benefits to society as part of the
move towards a fossil-free electricity
system.
Wind power creates opportunities
Wind power is currently one of the fastest
growing energy sources in the EU and the
third largest method of generating elec-
tricity in Sweden. Recent years have seen
enormous technical advances in wind
power. Higher towers with longer rotor
blades and larger generators have dra-
matically reduced the cost of wind power
per kilowatt hour produced, making it now
the cheapest way of producing new
renewable electricity in Sweden. Wind
power also works well with our forestry, as
it requires relatively little space and the
roads that are laid for the wind farms can
be used to improve access for the general
public, forestry activities and transport in
the local area.
Investing in increased production.
Blåbergsliden Wind Farm outside Skellefteå
opened in 2022, and in the same year
Holmen acquired the remaining shares in
Varsvik Wind Farm in Uppland. These
investments boosted our renewable elec-
tricity production and marked a significant
step in the development of Holmen’s
renewable energy business.
As a major landowner, Holmen has excel-
lent opportunities to build wind power at a
competitive cost, and we have several
projects in different phases of develop-
ment. In addition to Varsvik and Blåbergs
liden, Blisterliden Wind Farm is under con-
struction in Västerbotten and is planned to
be operational by 2026. Blisterliden com-
prises 14 wind turbines with a total height
of 250 metres. This investment will in-
crease Holmen’s annual production of
renewable energy from water and wind by
around 20 per cent.
Energy market in a state of flux
The electricity market in the Nordic region
has historically worked well, with harmo-
nised pricing that usually tracks the mar-
ginal cost of fossil energy. The expansion
of renewable energy has reduced our de-
pendence on fossil power, but it has also
made electricity prices more volatile. At
the same time, the price differences with-
in Sweden have increased due to nuclear
shutdowns and restrictions on transmis-
sion capacity between northern and
southern Sweden. Because the electricity
market is interconnected with the rest of
Europe, and the price is set according to
the most expensive type of production at
any given time, southern Sweden is also
increasingly affected by prices on the
continent.
The energy market in Europe is under-
going major restructuring, and to meet
climate targets, the continent will need to
largely transition away from fossil-based
energy use. With increasing electrification
of both industry and transport, it is clear
that electricity consumption is set to rise,
creating additional demand for more
renewable electricity.
Green energy
from our land
Holmen’s production of renewable hydro and wind
power contributes towards a sustainable electricity
supply in Sweden and enables a growing green industry
that is dependent on more fossil-free electricity. The
business will grow through the construction of wind
power on Holmen’s own land.
Holmen has 21 wholly or partly
owned hydro power stations
and two of its own wind farms
Renewable Energy
Holmen Annual Report 2024 31
Renewable Energy

Green electricity essential
for Europe’s transition
Over the past 50 years, the world’s
energy consumption has tripled,
and this increased demand has
almost exclusively been met using
fossil fuels. Global population
growth and increased prosperity
have come at a high price. To reduce
greenhouse gas emissions, fossil
fuels need to stay underground,
rather than being extracted.
Since energy use accounts for almost
three quarters of global greenhouse gas
emissions, energy production is closely
tied to climate change. How we manage
the energy transition will also affect the
world’s ability to tackle climate change. To
wean ourselves off fossil energy, much of
the current fossil-based energy produc-
tion will need to undergo a green transi-
tion, while at the same time securing a
stable and cost-effective energy supply.
On top of this, 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 a long-term strategy for
the energy system of the future.
Sweden at the forefront
Roughly half of electricity production in
Europe is fossil-free, but electricity only
accounts for a fifth of total energy con-
sumption and almost all other energy use
is fossil-based. Europe is being ambitious
in driving the climate transition and is
beginning to pave the way for new green
industry. Although this trend has slowed
due to subdued demand and a weaker
economy, electricity use is expected to
increase dramatically due to the electri
fication of everything from transport to
industry.
Thanks to its early and widespread
adoption of hydro power, coupled with
nuclear and wind power, Sweden’s elec-
tricity production is practically fossil free,
with the lowest carbon intensity in Europe.
With a fossil-free energy system and
opportunities to increase renewable
electricity production, Sweden is also well
placed to lead the development of a
new generation of fossil-free industrial
processes.
Building wind power on our own land
has many advantages
Major landowner
Surveying and analysing
our extensive land hold-
ings enables us to iden-
tify areas with favoura-
ble wind conditions and
choose the locations
that make the most
economic sense over
time, taking account
of the area’s unique
circumstances.
Good local
knowledge
As a landowner, we are
fully familiar with the
areas we investigate. It
is important for us to
have good relations with
both local residents and
the businesses that may
be affected by our
activities.
Cheaper building
Developing and operat-
ing wind farms in-house
instead of using inter-
mediaries allows us to
do so more cost-effec-
tively. As we are also a
major electricity con-
sumer, access to cheap
and fossil-free electricity
is important for our
industrial production.
Long-term
responsibility
As a forest owner,
everything we do has a
long-term perspective,
and that goes for our
wind power too. We take
responsibility along the
whole journey, from
planning to future
operation.
32 Holmen Annual Report 2024
Renewable Energy

Holmen’s role in the Swedish
electricity system
Much of the energy transition has already been
achieved within Holmen and we have drastically
reduced our fossil emissions. In combining forestry
and electricity production on our land, we are also
taking responsibility for our electricity consumption,
while playing our part in the energy transition that
society so badly needs.
There is a major shortfall in green electricity in Europe, and as
Swedish industries transition and vehicle fleets are electrified,
a serious increase in the supply of fossil-free electricity will
also be needed in Sweden. Holmen’s hydro power is a valua-
ble resource that generates renewable electricity at a low
cost, and can be channelled to periods of peak energy
demand. As a major landowner, Holmen also has unique
opportunities to find favourable locations for establishing
wind power capacity on our land.
Large-scale investment in different power sources and ex-
panded capacity in the electricity grid are needed to meet the
growing demand for fossil-free energy. Investments are also
being made in increased flexibility and power output. Holmen
has a significant role to play in the development of the Swed-
ish energy system, not least through establishing wind power
on our own land, and we have several projects in various
phases of development. Our hydro power is also becoming in-
creasingly important in a more weather-dependent electricity
system that needs to be supplemented with controllable
sources and flexibility in electricity consumption. Holmen
already has a central role in this, through our hydro power, but
also – as one of Sweden’s largest consumers of electricity – by
adapting our consumption to support the electricity system.
Our hydro power stabilises the electricity grid
Large-scale hydro power acts as an ancillary service by stabi-
lising the frequency in the grid. In contrast to sun and wind,
water can be stored in lakes and reservoirs and when demand
builds up in the system, the water can be released through the
turbines, creating motion and thus energy that a generator
converts into electricity. Conversely, water can be held in the
reservoir when other sources are generating electricity.
There has always been a need for a stable electricity grid,
but stabilising ancillary services have become more critical as
the proportion of weather-dependent energy sources has in-
creased. Thanks to hydro power, we therefore have electricity
when we need it, while also supporting the stable and secure
expansion of other renewable energy sources.
Selling price*, SEK/MWh
0
200
400
600
800
1 000
1 200
1 400
1 600
Q4-24
Q3-24
Q2-24
Q1-24
Q4-23
Q3-23
Q2-23
Q1-23
Q4-22
Q3-22
Q2-22
Q1-22
Q4-21
Q3-21
Q2-21
Q1-21
Q4-20
Q3-20
Q2-20
Q1-20
Carbon intensity concerns emissions of greenhouse gases from
electricity production, adopting a lifecycle perspective that in-
cludes emissions from production and the fuels used, as well
as the construction and demolition of the power stations.
Source: electricitymaps.com
Renewable Energy
Carbon intensity from
electricity production
(g CO2e/kWh)
<100
101–200
201–300
301–500
>500
No data
Holmen Renewable Energy
Northern Sweden (SE2)
*Excluding hedging.
Holmen Annual Report 2024 33
Renewable Energy

A sustainable business
The transition to a fossil-free
society demands more renewable
material, which means that the
earth’s surface needs to be
managed more efficiently and to
a greater extent. But the transition
also means we need to manage
our resources more efficiently and
use them more wisely. Holmen’s
business is based on the power of
the forests, rivers and winds, with
a firm focus on how we can use
technology and engineering to
create the products the world needs.
Holmen grows houses. This means that
we manage the forest in a future-smart
way for the benefit of the wood. And we
use the residual parts of the tree to make
world-leading paperboard and innovative
paper products. We also produce energy
from wind and water on our land. Our
growing forests sequester carbon and
our products replace fossil materials and
energy sources. When we grow houses,
we are also growing change.
As a Swedish forestry company, we
are well placed to help with solutions to
some of the world’s major challenges for
the future. Not least climate change. And
we can do so with nature as our founda-
tion. At the same time, there is no denying
that our activities leave a mark on nature.
We have a responsibility for the tracks we
leave behind and for the biodiversity of our
landscapes. Holmen’s future depends on
keeping the land and ecosystems viable.
It is therefore equally in our interest and 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.
We let the forest grow and give
The trees growing, the water rushing down
the rivers and the wind blowing over the
treetops – this is the core of Holmen, a
business built on the forest ecocycle and
the renewable products we can create
from it. Wooden housing, books, maga-
zines and renewable consumer packaging
are examples of end products from our
forest. Through our active and sustainable
forestry, we ensure that we have more
forest producing the optimum raw mate
rial. We then maximise the use of the raw
material from the forest. In fact, we do it
so well that nothing is left over. The most
valuable parts of the wood are used to
make wood products for climate-smart
construction. The narrower parts of the
tree, wood from thinning and chips from
the sawmills are turned into paperboard
and paper in our mills. The bark and wood
shavings are put to use in producing bio-
energy. We generate renewable energy
from the water and wind on our land. And
so it goes on. We plant new seedlings and
manage the growing forest responsibly,
creating productive forests that generate
more raw material for us to process.
Together we are circular
Our business model is circular. The forest
ecocycle gives us our wood. The wood is
refined and made into products which our
customers can then refine further 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 bioenergy. Over the years, we have
improved our capacity to create value in
every part of our operations. No part of
the trees we harvest goes to waste. When
deciding what to make out of the different
parts of the tree, greatest value added is
the key criterion and the resulting residual
products are used in other processes.
We see this as good business practice and
responsible resource management.
The use of renewable raw materials is a
prerequisite for a circular economy. But if
the circular society is to become a reality
and fossil raw materials phased out, we
will need more renewable products, and
even better ones. This is why we are work-
ing with our customers and suppliers to
develop products and processes that can
increase our contribution to the green
transition.
The power of customer choice
We do the most good for the climate jointly
with our customers when they choose our
renewable products and energy sources,
instead of fossil-based alternatives. We
give quality-conscious customers across
the world access to products from the
Swedish forests. Our customers, partners
and, not least, the users of our products
are all part of a circular business and their
choice of renewable products from the
forest, from wind and from water makes
a positive difference. The best thing we
can do for the climate is to help more
customers to replace fossil sources with
renewables.
—
For more information on Holmen’s contribution to a
circular economy, see page 109.
We grow houses,
we grow change
A sustainable business
We manage the forest
while preserving
biodiversity
Our mills and sawmills
are resource- and
energy-efficient
Our products replace fossil-
based products and can be
reused to make recycled
paper and energy
We use all
the raw material
Our growing forests
capture carbon dioxide
We produce
renewable
energy
34 Holmen Annual Report 2024

A sustainable business
The harvest
5%
Branches, tops, bark and wood shavings
become renewable bioenergy which can
be used to produce electricity, heating and
biofuels.
45%
The narrower parts of the tree and wood
from thinning are ground or digested down
into pulp, which is used to produce paper
and paperboard.
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.
We manage the forest to produce as much
wood as possible and we saw as many
planks and boards as we possibly can
from the trees we harvest. But not every
thing can be turned into construction
materials. This is because tree trunks
are round and planks have corners, and
because trees also have branches, tops,
knots and bark.
Holmen’s two nurseries produce almost
45 million seedlings each year, the majority
of which are planted on the Group’s land.
After nearly a century, as the tree’s growth
slows and its capacity to absorb and store
carbon dioxide falls, the forest is mature
enough to be harvested. Environmental
and chain-of-custody certification enables
us to ensure that the raw material for our
products always comes from sustainably
managed forests.
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 just
under half of the harvest and are used
with residual products from the sawmills
in the form of wood chips to manufacture
paperboard and paper. The remainder
comprises branches, tops and bark, which
are used to produce bioenergy.
Materiality assessment shows our impact on the world around us
Sustainability is about balancing several
perspectives – economic, environmental
and social – and succeeding in doing so
over time. For Holmen, successful busi-
ness and a sustainable future go hand in
hand. We contribute towards the transi-
tion to a sustainable and circular society
and focus our work on the areas where our
operations have the greatest opportunity
to make a difference.
In 2024, we updated our materiality
assessment. In analysing our own opera-
tions and mapping the impact of our value
chain, we have identified five areas where
our impact is deemed to be of material
significance.
—
For more information on Holmen’s materiality
assessment, see page 98.
We make use of the whole tree
The tree trunk
Wood – Planks and boards
Wood chips – Pulp for paper
Bark – Bioenergy
Wood shavings – Bioenergy
1
Our climate benefit
increases as the
business grows
2
Our forestry fosters
biodiversity
3
We develop the
business within the
framework of
environmental permits
and certifications
4
Our employees
develop and thrive
5
We build long-term
relationships based on
responsible business
conduct
In the following sections, we explain
how we are working to reduce our
footprint and increase our positive
contribution to the transition to a
sustainable future.
Holmen Annual Report 2024 35

Climate
How we contribute
to the climate
»Our climate benefit increases as the business grows«
The forest delivers the most benefit
when it is put to use. With this at
the heart of Holmen’s business, our
goal is to increase our contribution
to the climate transition throughout
our value chain, mainly by increas-
ing the positive impact that our
business has, but also by reducing
our negative footprint.
In 2024, Holmen created a climate benefit
of 8.3 million tonnes CO2e, which can be
viewed in relation to Sweden’s total emis-
sions of 45 million tonnes in 2023.
Over the years, Holmen has developed
long-term and rational management of its
forest holdings, which has contributed to-
wards a growing volume of standing timber
and increased harvests. A growing volume of
standing timber captures and stores carbon
dioxide and after harvest, the forest raw
material continues to create lasting benefit
by storing carbon dioxide in products with a
long lifetime and replacing fossil-based
products with a larger carbon footprint.
Growing forests capture carbon dioxide
Young trees have the greatest capacity to
bind carbon dioxide. When the trees be-
come old, growth slows, and when they
finally die and decay, the stored carbon
dioxide returns to the atmosphere. Active
forestry, in which the trees are harvested
when growth declines and the land is then
reforested, sees us increasing forest
growth and uptake capacity over time. In
2024, it is calculated that the increase in
the volume of standing timber in Holmen’s
forests has absorbed 2.1 million tonnes of
carbon dioxide, net after harvest.
Once harvested, the raw material from the
forests continues to bind carbon dioxide
even in its processed form. In products
with a long service life such as wood prod-
ucts, the carbon is stored for a long time
once the products have been turned into
buildings and homes, while short-lived
products made of paperboard and paper
store carbon over a shorter period of time.
In 2024, sales of our products contributed
to an increase in global carbon sequestra-
tion of 0.4 million tonnes.
Products with a low carbon footprint
Holmen’s strategy assumes that the world
must make the transition to using energy
and materials sustainably to limit global
warming. With renewable raw material,
fossil-free electricity and resource-efficient
production, we are able to offer our cus-
tomers products with a low carbon foot-
print, thus helping the world to avoid fossil
emissions.
The building sector is responsible for
more than a third of Europe’s carbon emis-
sions and making the manufacture of the
dominant construction materials cement
and steel sustainable is both expensive and
difficult. Wood is a renewable alternative
that, in contrast to cement and steel, is also
energy-efficient to produce, not to mention
storing carbon in the buildings.
In addition, reducing the climate and en-
vironmental impact is a strong driver for in-
creasing the use of wood fibre-based prod-
ucts such as paperboard and paper. Replac-
ing fossil-based materials such as plastics
with bio-based alternatives reduces the car-
bon footprint while minimising the amount
of plastic waste that can end up in nature.
The energy market in Europe is undergoing
a major restructuring, with huge demand
for more fossil-free electricity as industries
transition and vehicle fleets are electrified.
With our own production of renewable
energy from hydro, wind and biomass
sources, Holmen takes responsibility for
its own electricity consumption while also
furthering Europe’s green transition.
We have cut our emissions
by over 90 per cent
We began planning for the transition away
from using fossil energy in our industries
back in the early 2000s, and in 2005 we set
the target of reducing the use of fossil fuels
in our production mills by 90 per cent by
2020. Focusing on fossil-free electricity and
renewable energy from biofuels, as well as
making energy efficiency improvements and
investments in fossil-free technologies, has
enabled us to reduce our fossil emissions by
91 per cent since 2005. This already puts
Holmen’s emissions at the low levels that
the UN’s Intergovernmental Panel on Cli-
mate Change (IPCC) has stated our industry
should be at by 2045 in order to achieve the
Paris Agreement’s 1.5 degree target. The
majority of our remaining emissions are
generated from purchases of input products
and transport to and from our industrial
sites. We are therefore now focusing on
cutting emissions in these areas. Holmen’s
emissions targets have also been certified
by the UN-associated organisation the
Science Based Targets initiative (SBTi).
—
For more information on Holmen’s work for a better
climate, see page 101.
Active forestry creates climate benefits on multiple levels, million tonnes CO2e
Holmen’s overall climate benefit in 2024 is calculated in line with Skogforsk report number 1187–2024. This is to align reporting with the upcoming ISO standard ISO 13391, which
is a framework for value chain calculations for wood and wood-based products.
-1
0
1
2
3
4
5
Holmen’s emissions
in scope 1–3
Bioenergy replacing
fossil energy
Renewable electricity
production
replacing fossil energy
Wood and ﬁbre
products replacing
fossil material
Storage in wood
and ﬁbre products
Storage in
Holmen’s forests
Total net increase in carbon storage
of 2.57 million tonnes
Total reduction in greenhouse gas emissions of 6.52 million tonnes
Emissions in Holmen’s
value chain
2.13
4.44
0.44
1.24
0.84
-0.77
36 Holmen Annual Report 2024
Climate

Products that reduce global emissions
Greenhouse gas emissions from our production 2005–2024, tonnes CO2e
0
200 000
400 000
600 000
800 000
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2016
Sale of the gas-powered
paper mill in Madrid
2007
Energy-efficiency
improvements launched
at Hallsta Paper Mill
2012
New recovery boiler
at Iggesund Mill
2013
New biofuel boiler
at Workington Mill
0.4 million tonnes of CO2 stored
in our wood and fibre products
4.4 million tonnes of CO2e avoided
thanks to our wood and fibre products
2.1 million tonnes of CO2e emissions
avoided through our renewable
energy production
Holmen Annual Report 2024 37
Climate

Biodiversity
How we create
thriving forests
»Our forestry fosters biodiversity«
Holmen’s nature conservation
strategy combines active forestry
with protecting the diversity of
habitats and species. The aim is to
ensure the long-term survival of
native plants and animals in the
forest landscape.
The trees we plant today will grow for
almost a century before they can be
harvested, and an awful lot can happen
in that time. The forest could be hit by
drought, fires, storms and pests. Forest
management can also affect ecosystems
and forest species that depend on differ-
ent habitats for their survival, for example
if it leaves too low a proportion of dead or
old trees. Each year, we invest around SEK
200 million in caring for our forests and
constantly work to improve everything
from seedlings to nature conservation
through research, development and edu-
cation – all to ensure good growth and
healthy ecosystems for future generations.
Planning is the foundation of active and
sustainable forestry. Every 10 years, we
conduct an inventory of our entire forest
holdings in order to calculate sustainable
harvesting levels and ensure a growing
volume of standing timber over time.
Planning takes account of expected
climate change and we carry out ongoing
climate risk analyses and adaptation
plans. The assets of our forests are also
detailed in local ecological landscape
plans, which describe how the forests are
to be managed over the long term in order
to preserve existing natural assets and to
create new ones. In total, a little over 20
per cent of Holmen’s forest area is used
for different types of environmental pur-
poses. This includes voluntary set-aside
productive forest land, forested non-
productive forest land which is protected
by law, and environmental conservation
in the managed forest.
Holmen’s nature conservation work
is founded on three elements: environ-
mental considerations in managed
forests, conservation management and
voluntary set-asides.
1. Environmental considerations in
managed forests
As an integral part of our active forest
management, we give extensive consider-
ation to both natural and cultural assets
and implement various measures to
preserve and enhance biodiversity. High
stumps and dead wood are saved to pro-
vide habitats for wood-living insects and
fungi. Buffer zones along watercourses
are preserved to protect aquatic species
and improve water quality. During har-
vesting, buffer zones are also left with
trees and bushes intact to protect bio
diversity. Large trees, both living and dead,
are left as important nesting sites for birds
and insects.
2. Conservation management
As a natural part of forestry, we also
carry out actions to develop or strengthen
nature conservation, including burning
forests and removing invasive spruce
trees to benefit broadleaves. Burning is
carried out under controlled conditions to
create fire-damaged timber, an important
habitat for many threatened species.
Holmen also works to restore wetlands
and create richly varied forest landscapes.
Every year, Holmen carries out habitat
management on approximately 400
hectares to improve biodiversity and help
create healthy, resilient ecosystems.
3. Voluntary set-asides
Holmen’s forest holdings include both for-
mally protected forests and voluntary set-
asides. In formally protected areas, such
as nature reserves, natural processes are
allowed to continue unhindered, benefit-
ting species that require untouched forest.
Holmen has also identified more than
9 000 areas that are voluntarily set aside
or managed for purposes other than wood
production, as they have high or unique
conservation value.
38 Holmen Annual Report 2024
Biodiversity

Five biodiversity
indicators
Historically, biodiversity has not been a
priority issue for Swedish forestry, but
there has been a shift in focus over the
past 30 years. Development has been
rapid and we are constantly learning more
about how we can preserve biodiversity
while increasing forest growth. Forest
biodiversity is affected by multiple factors.
In order to monitor developments and
evaluate implemented measures, Holmen
has identified five indicators that show the
health of selected key forest habitats.
1. Area of old forest
2. Area of old forest with specific
indications of nature conservation
value (SIN)
3. Volume of dead wood per hectare
4. Volume of broadleaves per hectare
5. Volume of large broadleaves per
hectare
The indicators represent different types of
habitats which together provide a broad
picture of the conditions for biodiversity
on Holmen’s land. With a production cycle
in the forests of almost a hundred years,
change does not happen overnight, but
statistics from independent inventories
show that positive progress has been
made over the past 30 years.
—
For more information on Holmen’s work to promote
biodiversity, see page 107.
Sweden’s forests offer good conditions for biodiversity

The Biodiversity Intactness Index from the Natural History
Museum in the UK models human impact on the natural
environment and estimates how high a proportion of the original
number of species and habitats still remain. The desirable level of
biodiversity in an area is at least 90 per cent, which can be seen as
a threshold value that biodiversity in an area must exceed.
Together with Finland, Sweden is the most forested country in
Europe, with almost 70 per cent forest land and a well-developed
forest industry. According to the Biodiversity Intactness Index,
conditions in Sweden are also good for functioning ecosystems,
with an index of just over 95 per cent. This can be compared with
the global average of 77 per cent, significantly lower than the 90
per cent considered to be sustainable. The index also shows that
conditions for biodiversity in Sweden have improved in the past 50
years.
—
For more information on the Biodiversity Intactness Index, see page 135.
Biodiversity Intactness Index trends 1970–2023
Positive progress for key forest habitats
70
75
80
85
90
95
100
1970
1980
1990
2000
2010
2020
2023
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2002
2000
1996
1998
2004
2006
2008
2010
2012
2014
2016
2018
2003
2001
1997
1999
2005
2007
2009
2011
2013
2015
2017
2019
2020
2021
Sweden
Europe
Global average
Old forest
Old forest (SIN)
Dead wood
Broadleaves
Large broadleaves
Old forest is important for several reasons. Old
trees host birds, insects, mosses and lichens,
while also being valuable indicators of healthy
conditions in the soil and on the forest floor,
which is good for ground vegetation and fungi.
Old forest with specific indications of
nature conservation value shows not just
the age of the forest, but also whether it has
special qualities that provide better condi-
tions for more sensitive species, for example
whether an area has very old and large trees,
dead wood and trees of varied ages.
Dead wood is important for biodiversity in
the forest, providing a habitat and food source
for birds, insects, fungi, mosses and lichens.
It is estimated that around 20 per cent of all
forest species depend on dead wood.
Broadleaves large and small are impor-
tant for birds and rare insect species, for both
food and nesting. A number of mosses and
lichens only grow on a single species of decid-
uous tree – be it aspen, birch or more special-
ist species such as elm, beech, oak and maple
– and then usually only on old and large trees.
The Biodiversity Intactness Index, based on the world’s largest database of changes in
ecological communities in response to human pressures, is used to track biodiversity
in different regions. Sources: Natural History Museum, Global Forest Watch.
Source: SLU National Forest Inventory
Holmen Annual Report 2024 39
Biodiversity

Environment
Environmental work
defined by continuous
improvement
»We develop the business within the framework
of environmental permits and certifications«
Holmen’s renewable products help
to reduce demand for fossil-based
alternatives, while our active envi-
ronmental work ensures that we
comply with the rules and condi-
tions imposed on our operations.
With Holmen’s operations generating
emissions to air and water, our environ-
mental work focuses on managing our im-
pact on people and the environment. In-
dustrial production is contingent on envi-
ronmental permits that specify authorised
emission levels of various substances. The
total environmental impact of the opera-
tions is regulated in the individual permit
process under the Swedish Environmental
Code, and via the Industrial Emissions
Ordinance, which states that best availa-
ble techniques (BAT) must be used. The
comprehensive permit processes are
based on the assumption that the impact
of the activities must be acceptable for
people and the environment in terms of
both ongoing and discontinued opera-
tions. At the same time, the permit
process ensures a balance between
economic viability and the environment.
Resource-efficient production
Holmen’s production is developed within
the framework of our certified environ-
mental and energy management systems.
Environmental and energy considerations
are an integral factor in the planning of
both production and investments. Opera-
tions are characterised by resource-effi-
cient use of renewable raw material and
energy, and by protecting the environme
nt, applying the precautionary principle.
Our environmental work entails meas-
ures for continuous improvement within
the framework of our management sys-
tems. Over the years, we have effectively
reduced our use of chemicals and other
inputs, and we recover and reuse the
waste that arises.
Alongside the renewable forest raw
material, water and electricity are also key
raw materials in our production. The way
we manage these resources is therefore a
crucial aspect of our environmental work.
More efficient water use
Holmen’s industries use surface water
from lakes and watercourses to transport
and wash fibres in the mills and also for
cooling and steam production. Water
availability at Holmen’s production facili-
ties is good and, as our paperboard and
paper mills are located on the coast, our
water use does not affect any other opera-
tions. The same water is generally used
multiple times, and different combina-
tions of mechanical, biological and chemi-
cal processes treat the water in several
steps before it is returned to the natural
ecocycle.
As always, it is important to economise
on resources and make the best use of
them. The amount of water used in our
production has steadily decreased over
the years due to increasingly efficient pro-
cesses and equipment. With such good
availability of water at our pulp mills, there
is currently an opportunity to increase wa-
ter use in order to improve the efficiency
of the pulp washing. This could then re-
duce the need for chemicals in bleaching.
Increased production of
renewable electricity
While Holmen uses large amounts of energy
at our paper and paperboard mills, the
vast majority of the energy we use is fossil-
free. Through investments in fossil-free
technology and the establishment of wind
power, we have increased our renewable
electricity production by over 40 per cent
in the past 20 years.
The mills produce electricity in the form
of back-pressure power, which is generated
together with the steam used in the mills.
Holmen also supplied over 1.7 TWh of
electricity from hydro and wind power in
2024. Together with the electricity
generated by our production facilities,
this equates to 60 per cent of our total
electricity consumption. We also have the
opportunity to increase our production of
renewable electricity by establishing more
wind power on our own land.
—
For more information on Holmen’s environmental
work, see page 105.
Holmen’s water use 2005–2024
Holmen’s renewable electricity production 2005–2024
Hydro and wind power
Back-pressure
0
20
40
60
80
100
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
09
08
07
06
05
Million m3
0
500
1 000
1 500
2 000
2 500
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
09
08
07
06
05
GWh
40 Holmen Annual Report 2024
Environment

Air pollution
Particles less than 2.5
micrometres per m3 (µg/m3)
<6
6–9
10–13
>13
No data
Water stress
The total demand for water
relative to the renewable water
resources available.
Low
Low–medium
Medium–high
High
Extremely high
No data
Good access to water
Access to clean water is crucial for human health and well-being
and demand for everything from drinking water to water for
industrial use and irrigation is growing. Aquatic pollutants fell in
Europe between 1990 and 2010, but more than 50 per cent of the
reported surface water has still failed to attain good ecological
status. In contrast to Southern Europe in particular, the availability
of surface water in Sweden is good and amounts of precipitation
are high as a rule, resulting in significant water flow in the rivers
throughout the year.
Water stress measures the total demand for water relative to the
renewable water resources available. Source: Aqueduct, World
Resources Institute
Clean air
Like clean water, clean air is vital for human life. Pollution in the
form of small airborne particles can cause or exacerbate many
chronic diseases. The air in Europe’s urban areas is cleaner today
than it was half a century ago, when the EU introduced stricter air
quality standards. However, large parts of Europe still have levels
above the WHO recommendation of 5 micrograms per cubic metre
of air (μg/m3). In 2022, the median concentration of particulate
matter in Sweden was 5 μg/m3.
Annual average concentration of fine particles (less than 2.5 micrometres
in diameter) measured at urban background stations, average 2022.
Source: European Environment Agency (EEA)
Sweden has good conditions
for industrial production
Holmen gives customers across the world access
to renewable products from the Swedish forests.
Conducting forestry and industrial production in
a forest nation like Sweden has several advantages.
In addition to a good supply of raw materials, we also
have plenty of water, a fossil-free energy mix and
clean air.
Holmen Annual Report 2024 41
Environment

Employees and thriving rural communities
We grow together
»Our employees develop and thrive«
We are committed to our employ-
ees and our local communities.
Because we know that when
people and communities grow,
we can grow too.
Today’s Holmen is the result of countless
decisions, large and small, made in line
with our values: courage, commitment
and responsibility. A team effort where we
put long-term values ahead of short-term
profit and dare to swim against the tide
when it makes sense to do so. We like
being the small big company and would
rather be best at the things we choose to
focus on than the biggest in the business
and fairly good at lots of things.
Active participation gives
responsibility to the individual
Holmen has a philosophy of management
by objectives and decentralised organisa-
tion that sets great store by the active
participation of employees. Applying our
management model, the strategy, busi-
ness plans and performance expectations
are communicated across the organisa-
tion. Based on this, our employees pro-
pose targets that will lead to the expecta-
tions being met. This helps us to make the
most of the skills, potential and drive of
every individual, team and unit.
Holmen has a learning culture where
everyone has the opportunity to feel a
sense of commitment and responsibility
for the areas in which they work and their
objectives. The management by objec-
tives model is our way of making sure that
everyone working at Holmen feels that
they are focusing on the right things and
joins in with implementing our strategy.
Employees with courage,
commitment and responsibility
Holmen’s values are clearly front and
centre. Our three values: courage, com-
mitment and responsibility develop us as
individuals, build further on our strong
culture and make Holmen better. Every
day, they must support and develop the
behaviours, priorities, decisions and the
way we run the business. They guide us
in our approach to each other, in relations
with customers and in our work day to day.
The values are also integrated in our pro-
cesses and tools, including our manage-
ment by objectives model, and as a basis
for our internal leadership and manage-
ment programmes.
Forever learning. Holmen is to be an
attractive employer that continuously
develops our employees by giving them
stimulating duties and new challenges.
It goes without saying that we actively
pursue a healthy culture and a safe work
environment for our employees and the
contractors who work for us.
Because we know that growth is great-
est when development is part of day-to-
day work, our employees are expected to
take on considerable responsibility, but
they are also encouraged and supported
by committed and knowledgeable
colleagues and managers. Based on our
current and future skills needs, we are
working on employee development at all
levels. Holmen offers Group-wide leader-
ship programmes and programmes for
new and more experienced managers,
and for specialists.
In order for Holmen to continue to be
a business that focuses on innovation
and development, we need to attract and
retain the right employees. We have an
attractive offering as an employer and
apply competency-based recruitment
which helps us to bring in employees
that represent a diversity of insights,
experiences and cultures.
—
For more information on Holmen’s employees,
see page 111.
42 Holmen Annual Report 2024
Employees and thriving rural communities

Employees who
recommend Holmen
Holmen is to be an attractive employer
where employees recommend Holmen
as a workplace. The most recent
employee surveys put Holmen’s
employee Net Promotor Score (eNPS)
at 26. This is a strong result as the
benchmark for 250 companies in
different industries is 16.
A zero vision for accidents
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. We conduct
Group-wide, systematic work on health and
safety in line with ISO 45001. As always, the
precautionary principle is paramount. The
number of work-related accidents per
million hours worked rose from 5.2 in 2023
to 5.3 in 2024. We continue to take a long-
term approach focused on our vision of zero
accidents.
A zero vision for
discrimination and
harassment
Holmen upholds human rights and the
equal value of all people in everything
we do, and all employees must have
the same rights, obligations and oppor-
tunities. We have a vision of zero dis-
crimination and harassment, which is
followed up internally via employee
surveys, appraisal talks and reported
cases.
Work-related accidents
with more than 8 hours of absence (LTI)
per million hours worked.
LTI
0
2
4
6
8
10
24
23
22
21
20
19
18
17
Strong relationships
in thriving rural
communities
Active forestry is essential to
thriving rural communities. It
creates jobs in places where there
are few employers and gives
people an opportunity to work, live
and enjoy quality of life all over the
country.
Holmen is one of Sweden’s largest forest
owners, with a land holding of 1.3 million
hectares from Småland in the south to
Västerbotten in the north. We manage our
own forests, but also work with private
forest owners and other companies in the
Swedish forest industry. Almost 15 000
private forest owners have chosen us as a
forestry partner.
In total, the Swedish forest industry
employs 140 000 people and in several
regions the local forest industry accounts
for 20 per cent or more of industrial em-
ployment. It is important for us to have
good relations with forest owners, local
residents and other businesses that may
be affected by our activities. As well as our
own workforce of around 3 500 employ-
ees, we create employment for local
contractors and companies across the
country. We work extensively with local
forestry contractors to plant, clear and
harvest trees and we employ around a
thousand seasonal workers in our forests
every year. As a major employer in several
locations, Holmen also cooperates with
other local companies and associations
to promote social and economic
development.
Because we develop in harmony with
our local communities, we make every
effort to be good neighbours and engage
in community organisations and tourism.
For example, we work with sporting and
cultural organisations in the communities
in which we operate. Forestry also makes
the forests easily accessible for outdoor
recreation under Sweden’s Right of Public
Access. Our forest roads enable people to
access the countryside, to pick mush-
rooms and berries on our land, and also
open up excellent opportunities for
hunting and fishing.
—
For more information on workers in Holmen’s value
chain, see page 113, and for affected communi-
ties, see page 115.
»We build long-term relationships based
on responsible business conduct«
Holmen Annual Report 2024 43
Employees and thriving rural communities

↓ Board meetings
The Board held twelve meetings in 2024, four of which were in connection
with the company’s publication of its quarterly reports. One meeting was
held in connection with the company’s AGM. One meeting was dedicated
to reviews of strategic issues and the Group budget for 2025. The Board
also paid special attention to financial and accounting issues, and the
monitoring of the energy market and the fibre market. In addition, the
Board spent time on sustainability matters and reporting, study visits to
major customers of the paper and board business and major investment
matters. On one occasion the company’s auditor reported directly to the
Board on the audit of the accounts and internal control.
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 gov-
ernance report complies with the
rules and instructions stipulated
in the Swedish Code of Corporate
Governance.
Shareholders
Holmen AB had 50 139 shareholders at
year-end 2024. Swedish private individu-
als accounted for the largest category of
owners with 47 555 shareholders.

The largest shareholder at year-end,
with 62.7 per cent of the votes and 35.0
per cent of the capital, was L E Lundberg-
företagen, which means that a Group
relationship exists between L E Lundberg-
företagen AB (corporate ID number
556056-8817), whose registered office is
in Stockholm, and Holmen. The second-
largest shareholder by votes was the
Kempe Foundations and their holdings of
Holmen shares amounted to 17.6 per cent
of the votes and 7.6 per cent of the capital
at the same date. No other individual
shareholder controlled 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 2024 Annual General Meeting
(AGM), the Board’s authorisation to
acquire up to 10 per cent of the company’s
shares was renewed. On 26 April 2024,
the Board of Directors decided to exercise
the buy-back authority in order to ensure
the future delivery of shares to partici-
pants in Holmen’s long-term share sav-
ings programme. On 15 August 2024, the
Board decided to use the buy-back
authority to adjust the Group’s capital
structure. In 2024, 1 554 163 shares were
repurchased for SEK 647 million, corre-
sponding to an average price of SEK
416/share. The buy-backs amount to 0.9
per cent of the total number of shares. The
company already owned 2.1 per cent of its
own shares, meaning that at 31 December
2024 Holmen held 3.0 per cent of the total
number of shares.

See pages 54–55 for further informa-
tion on the shares and ownership struc-
ture.
General meeting of shareholders
The notice convening the AGM is
announced and posted on holmen.com no
earlier than six and no later than four
weeks before the meeting. That a notice
has been issued is also advertised in a
nation-wide newspaper. It was announced
on 18 September 2024 that the 2025
AGM would take place on 31 March 2025.
Shareholders or proxies are entitled to
vote in accordance with the full number of
shares owned or represented.
Nomination committee
The AGM resolved that the nomination
committee should consist of the Chairman
of the Board and one representative from
each of the three shareholders in the com-
pany that control the most votes at 31
August each year. The composition of the
nomination committee for the 2024 and
2025 AGMs is shown in the table on page
47.

The nomination committee’s mandate
is to submit proposals for the election of
Board members and the Board Chairman,
for Board fees and auditor fees, and for
the election of auditors.
44 Holmen Annual Report 2024
Corporate governance report
↓ 2024 Annual General Meeting
The notice convening the meeting, the agenda and the minutes of the
2024 AGM are available at holmen.com. The Board of Directors attended
the meeting. The AGM approved the income statement and balance
sheet, decided on the appropriation of profits and granted the departing
Board discharge from liability. The following Board members were re-
elected: Fredrik Lundberg, Alice Kempe, Lars Josefsson, Louise Lindh, Ulf
Lundahl, Fredrik Persson, Henrik Sjölund, Henriette Zeuchner and Carina
Åkerström. Fredrik Lundberg was re-elected Chairman of the Board. The
general meeting of shareholders also decided on Board fees, auditors and
auditors’ fees, the approval of the remuneration report, the adoption of a
new share savings programme for Group management and to authorise
the Board to acquire treasury shares. Fredrik Lundberg, John Erikmats,
SEB, and Natasha Obradovic, Handelsbanken, checked and approved the
minutes of the meeting.

Shareholders
Auditors
Nomination committee
General meeting
of shareholders
Four business areas
Board of Directors
Five group staffs
Group management
CEO
The nomination committee applies rule
4.1 of the Swedish Corporate Governance
Code (the Code) as a diversity policy when
putting forward proposed Board mem-
bers, which means the composition of the
Board should reflect the company’s busi-
ness 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 meet-
ings. An even gender distribution is
sought. Further information about the
work of the nomination committee will be
provided at the 2025 AGM.

For the 2025 AGM, the nomination
committee proposes that the Board con-
sist 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),
Alice Kempe, Louise Lindh, Ulf Lundahl,
Fredrik Persson, Henrik Sjölund, Henriette
Zeuchner, Carina Åkerström and the elec-
tion of Stefan Widing. Lars 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 between seven and eleven
members. The company’s articles of asso-
ciation contain no other rules regarding
the appointment or dismissal of Board
members, or regarding amendments to
the articles, or restrictions on how long
members can serve on the Board.

The 2024 AGM decided to re-elect
Fredrik Lundberg, Lars Josefsson, Alice
Kempe, Louise Lindh, Ulf Lundahl, Fredrik
Persson, Henrik Sjölund, Henriette Zeuch-
ner and Carina Åkerström to the Board.
Fredrik Lundberg was re-elected Chair-
man of the Board. At the statutory first
meeting of the new Board in 2024, Henrik
Andersson, Senior Vice President Legal
Affairs, was appointed Board 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 to be independent
of the company as defined by the Code.
The CEO is the only Board member with an
operational position in the company. Fur-
ther information about the members of
the Board is provided on pages 56–57.
The Board’s activities
The Board’s work aims to optimise the
company’s profitability by taking a long-
term approach to the company’s manage-
ment and ensuring that the company’s
objectives and strategy are sustainable.
The Board’s activities follow a plan
intended, among other things, to ensure
that the Board receives all the information
it requires and that it is kept up to date on
issues that are strategically important for
the company. 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 information that the Board is
to receive continually on financial devel-
opments and other key events. Company
employees are consulted as experts on
relevant issues.

↓ Members of the Board of Directors
Attendance at meetings in 2024:
Board members
Elected
Role on the
Board
Audit
committee
Remunera-
tion
committee
Board of
Directors
Audit
committee
Remunera-
tion
committee
Fee for 2024
decided by AGM
(SEK ’000)
Fredrik Lundberg
1988
Chairman
Member
Chairman
12/12
5/5
6/6
860
Lars Josefsson
2016
Member
Member
–
12/12
5/5
–
430
Alice Kempe
2019
Member
–
Member
12/12
–
6/6
430
Louise Lindh
2010
Member
–
–
12/12
–
–
430
Ulf Lundahl
2004
Member
Chairman
–
12/12
5/5
–
430
Fredrik Persson
2022
Member
–
Member
12/12
–
6/6
430
Henriette Zeuchner
2015
Member
–
–
12/12
–
–
430
Carina Åkerström
2023
Member
–
–
12/12
–
–
430
Henrik Sjölund
2014
Member,
President & CEO
–
–
12/12
–
–
–
According to the nomination committee, Fredrik Lundberg, Lars Josefsson, Alice Kempe, Louise Lindh, Ulf Lundahl, Fredrik Persson, Henriette Zeuchner
and Carina Åkerström are independent of the company and its senior management, and Lars Josefsson, Ulf Lundahl, Fredrik Persson, Henriette
Zeuchner, Carina Åkerström and Henrik Sjölund are independent of the company’s major shareholders.
Workers’ representatives
Tommy Åsenbrygg, member, elected 2009/Ari Aula, member, elected 2022/John Nyberg, member, elected 2023/Martin Nyman, deputy member, elected
2021/Daniel Hägglund, deputy member, elected 2014/Johan Viklund, deputy member, elected 2024.
Holmen Annual Report 2024 45
Corporate governance report

The Board is provided with regular infor-
mation about environmental and sustain-
ability matters related to the company’s
activities, including the company’s busi-
ness ethics rules and business conduct.
An annual evaluation is undertaken
whereby each Board member answers a
questionnaire containing relevant ques-
tions about the Board’s work and has the
opportunity to make suggestions about
how to enhance this work. Their respon
ses are presented and discussed at a
Board meeting. The results of the evalua-
tion form the basis for the planning of the
Board’s work for the coming year. The
Chairman of the Board has reported the
results of the evaluation to the nomination
committee.
Audit committee
The Board has created an audit committee
made up of Board members. The audit
committee’s task is to monitor the compa-
ny’s financial reporting, sustainability
reporting and the effectiveness of the
company’s internal control and risk man-
agement. The audit committee reviews
and monitors the impartiality and inde-
pendence of the auditor. The committee
also evaluates the auditor’s work and
submits proposals to the company’s
nomination committee for the election of
an auditor for the next mandate period.
The members of Holmen’s audit commit-
tee are Ulf Lundahl, Chairman, Fredrik
Lundberg and Lars Josefsson. The audit
committee met five times.
Remuneration committee
The Board has also appointed a remuner-
ation committee consisting of Fredrik
Lundberg, Fredrik Persson and Alice
Kempe. The purpose of the committee is
to prepare, in a smaller group, decisions
concerning the remuneration of the CEO,
guidelines for the remuneration of senior
management and share- and share
price-based incentive schemes. During
the year, the committee prepared matters
pertaining to the remuneration and other
employment conditions of the CEO, and
evaluated guidelines for remuneration,
share savings programmes and short-
term benefits. The committee also exam-
ined remuneration structures, remunera-
tion levels and methods for establishing
the Group’s wage levels to ensure that
these are reasonable and appropriate.

Remuneration and other employment
conditions for senior management who
report directly to the CEO are decided on
by the latter and approved by the remu-
neration committee in accordance with
the instructions for the remuneration
committee adopted by the Board of Direc-
tors, as well as the guidelines adopted by
the AGM for the remuneration of members
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 the remuner-
ation of the CEO and other senior manage-
ment, i.e. heads of business areas and
heads of Group staffs who report directly
to the CEO, were adopted by the 2023
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
pages 73–74.

The 2024 AGM approved the Board fees
and payment of the auditors’ fee as
invoiced.

The 2022 AGM approved a share sav-
ings programme for key individuals in the
Group. The programme will expire in April
2025. The 2024 AGM approved a new
share savings programme for Group
management. The programme will expire
in April 2027. Its aim is to strengthen
common interests between shareholders
and company management, as well as to
create a long-term commitment to Hol-
men. More information about the current
share savings programmes and the finan-
cial and sustainability targets set 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 division of responsibilities
between the Board and the CEO.

Holmen’s Group management consists
of the company’s CEO, the heads of the
four business areas, and the heads of the
five Group staffs. Information about the
CEO and other members of Group man-
agement is provided on page 58.

Group management meets regularly.
The meetings during the year dealt with
matters such as earnings performance
and reports before and after Board meet-
ings, strategic issues, budgets, invest-
ments, internal control, work environ-
ment, sustainability matters, climate and
environmental issues and silviculture
matters. The meetings were also devoted
to reviews of the market situation, eco-
nomic developments and other external
factors affecting the business. The
Group’s governance and the tools used for
this governance, such as the manage-
ment-by-objectives model and common
policies, were also discussed. In 2024,
Group management focused particularly
on analysing the energy market and fibre
supply in Europe and its impact on the
Group’s competitiveness and activities.
Group management also spent time moni-
toring regulatory changes related to the
company’s strategy and objectives, as
well as the impact of future sustainability
regulations on the company’s environ-
mental and sustainability work.
Internal management processes
Holmen’s business strategy is formulated
by Group management in order to create
long-term value for both shareholders and
customers. The strategy is adopted by the
Board each year and forms the basis for
the expectations that are set. On the basis
of these expectations, each unit sets tar-
gets and identifies success factors for
achieving them. The Group’s strategy and
objectives are set out on pages 10–11.
Also see the sustainability report for the
objectives related to sustainability mat-
ters on page 100. Key performance indica-
tors (KPIs) are linked to the success fac-
tors in order to measure and demonstrate
changes in performance. The strategy
review also provides the basis for the
budget, through which decisions are taken
on the distribution of resources and tar-
gets for the coming year are set. Use of a
simple management-by-objectives tool
for continuous follow-up ensures that the
entire organisation is adopting the right
priorities to meet the objectives set.

Internal management processes and guideline documents.
Strategy and targets
Strategy, budget and management by objectives
Business processes
Earnings, reporting and monitoring
Code of Conduct
Powers
Values
Authorisation rules
Management systems
Guidelines
Policies
Group instructions
46 Holmen Annual Report 2024
Corporate governance report

The business areas guide the operational
activities towards these targets using pro-
cesses for purchasing, production and
sales, supported by financial manage-
ment, IT, HR, environmental, sustainabil-
ity and communication processes.

Activities are followed up through regu-
lar meetings with Group management and
the monthly reporting of performance and
KPIs that reflect business activity, along
with additional qualitative analyses.
Reporting of sustainability data is inte-
grated with the financial reporting. When
major investment decisions are under
consideration, financial, social and envi-
ronmental effects are taken into account.
Risk management. The Group’s business
and operational risks, as well as climate-
and sustainability-related risks and
opportunities, are managed by the various
business areas. Each business unit has its
own processes for identifying, assessing
and responding to these risks and oppor-
tunities. Material risks are reported to
Group management as part of regular
operational reviews.

Purchasing and IT infrastructure are
managed by Group-wide functions in
order to leverage economies of scale, and
risks are handled in line with the Group’s
policies. Group Finance manages the
Group’s financing and financial risks,
based on a finance policy that is estab-
lished by the Board and is characterised
by a low level of risk. Regulatory risks and
changes in external requirements driven
by sustainability matters are monitored
and tackled in the business areas, sup-
ported by Group staff. Holmen has devel-
oped procedures through policy docu-
ments for identifying the risks of its opera-
tions having negative impacts on the envi-
ronment, people and business conduct,
and for identifying the stakeholders
affected by Holmen’s operations.

For further information about risks, see
the Risk management section on pages
49–53.
Code of Conduct. Holmen’s Code of Con-
duct is in line with the UN Global Compact,
the International Labour Organization’s
(ILO) eight fundamental conventions and
the OECD’s Guidelines for Multinational
Enterprises, and guides Holmen’s day-to-
day operations, clarifying the expectations
placed on employees. Holmen’s opera-
tions should be based on responsible
behaviour towards both internal and
external stakeholders. Holmen’s Code of
Conduct states that Holmen must endeav-
our to ensure that due diligence is shown
with regard to consequences for human
rights, the environment and the climate.
The Supplier Code of Conduct is also in
keeping with the above principles, con-
ventions and guidelines. Both Holmen’s
Code of Conduct and Supplier Code of
Conduct aim to prevent potential and
actual negative impacts on people, the
environment and business conduct in its
own operations and in Holmen’s supply
chain.

While respecting human rights, Holmen
endeavours to ensure a workplace climate
that is founded on the equal value of all
people. All of Holmen’s employees should
have the same rights, obligations and
opportunities irrespective of their sex,
transgender identity or expression, eth-
nicity, religion or other beliefs, disabilities,
sexual orientation or age. Holmen is
subject to the UK Modern Slavery Act
and a report relating to this is available
at holmen.com.
Policies. At Group level, Holmen has
decided on policies, guidelines and Group
instructions that will help to implement
Holmen’s strategy and achieve its objec-
tives. Policies, guidelines and Group
instructions are reviewed annually and
updated as necessary, based on develop-
ments and changes in the material risks
and opportunities associated with the
business. Holmen’s CEO decides on the
adoption of all policies and guidelines,
except the financial policy, which is
adopted by the Board. The Executive Vice
President coordinates policy work. Each
policy and their associated documents
have an owner within Holmen’s Group
management who is responsible for them.
Heads of finance for each business area
are responsible for implementation.
Policies, guidelines and Group instruc-
tions are intended to clarify how employ-
ees should act in fundamental and critical
areas where material risks and opportuni-
ties may arise for the business.
The Group’s eleven policies cover mat-
ters such as expectations of employee
participation and leadership, and specify
the framework for management by objec-
tives, talent management, interaction with
trade union organisations, equal treat-
ment and employment conditions. A good
work environment is also covered in terms
of health and safety, anti-corruption and
competition issues, and how good busi-
ness practice is maintained in dealings
with external contacts on different mar-
kets. Employees in departments at risk of
encountering unauthorised behaviour
receive special training in business ethics.
The policies specify that raw materials
should be used efficiently, pollution
should be prevented and and continuous
improvements should be aspired. Produc-
tion units must carry out a climate risk
analysis and prepare climate adaptation
plans. Financial risk is managed centrally
and should be characterised by a low level
of risk. The policies must also ensure that
the company’s assets are managed in
accordance with Group rules, risks of
errors in financial and sustainability
reporting are minimised and irregularities
are prevented. The Group’s purchasing
should contribute to long-term profitabil-
ity. The sustainable sale of raw materials,
products and services should be ensured
in both the short and long term. Informa-
tion communicated must be accurate,
transparent and easily accessible and
comply with legal requirements and
commercial confidentiality.

The policies, with the associated
guidelines and instructions, are available
to all employees on the Group’s intranet.
Policies considered to be of importance
for external stakeholders are published
on holmen.com.
Compliance. Each business area is
responsible for ensuring that the rules
set out in policies are reflected in internal
regulations. Compliance is monitored for
example through employee surveys and
appraisal talks, pay surveys, safety statis-
tics and audits of the organisational and
social work environment. The Board is
informed of any breaches of the Code of
Conduct. Where non-compliance or fail-
ings are found in terms of the corporate
culture, the issues are addressed on a
case-by-case basis.
Whistleblower function. A whistleblower
function is available so that employees
↓ Composition of the nomination committee

Name
Before AGM:
Independent of the:

Representing

2025

2024

Company
Largest shareholder
(in terms of votes)
Bo Selling
L E Lundbergföretagen*
x (Chairman)
x (Chairman)
Yes
No
Fredrik Lundberg
Chairman of the Board
x
x
Yes
No
Lars Ericson
Kempe Foundations*
x
-
Yes
Yes
Vegard Torsnes
Norges Bank*
x
x
Yes
Yes
*At 31 August 2024, L E Lundbergföretagen controlled 62.2 per cent of the votes, the Kempe Foundations controlled 17.5 per cent and Norges Bank controlled 2.2 per cent.
Holmen Annual Report 2024 47
Corporate governance report

and other stakeholders can highlight any
deficiencies in Holmen’s financial report-
ing, discrimination or other possible areas
of concern or improprieties at the com-
pany. Six cases were reported in 2024 that
were deemed to constitute whistleblow-
ing as defined by law. As at 31 December
2024, one case was open and under
investigation. Other cases were closed
after appropriate investigation. No cases
of corruption or bribery were identified.
Labour law issues were handled by follow-
ing standard HR procedures.
Internal control of reporting
The Board’s responsibility for internal
control, financial reporting and sustaina-
bility 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 of these
matters is delegated to the CEO.
Purpose and structure. The purpose of
internal control is to ensure that Holmen
achieves its objectives both for financial
and sustainability reporting (see below),
to ensure that the company’s assets are
being managed according to Group rules
and to prevent irregularities. Group
Finance coordinates and monitors the
internal control process for reporting.

It follows the COSO framework for
internal control in its work. The framework
comprises five basic elements: the control
environment, risk assessment, control
activities, information and communica-
tion, as well as monitoring activities and
evaluations. The framework has been
modified to suit the needs of Holmen’s
various operations.
Control environment. The control envi-
ronment provides the basis for internal
control of financial and sustainability
reporting and is based in part on the com-
pany’s internal management processes.
The Board of Directors’ procedural rules
and the instructions for the CEO establish
the distribution of roles and responsibili-
ties to ensure effective control and man-
agement of the business’s risks.

Policies, guidelines and instructions
contribute to making individuals aware of
their role in maintaining good internal con-
trol. These documents also ensure that
financial and sustainability reporting com-
plies 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 activi-
ties aim to identify and evaluate the risks
that may result in the Group’s reporting
objectives not being met. The results of
these risk-related activities are compiled
and assessed under the guidance of Group
Finance.

Holmen’s biggest financial reporting
risks are linked to the valuation of forest
assets, pension obligations, provisions
and financial transactions. Holmen’s main
sustainability reporting risks primarily
relate to definitions and dependence on
individuals for data genaration. The risk
assessment also includes the identifica-
tion and evaluation of operational risks,
which are managed through each busi-
ness area’s management system. For fur-
ther information about risks, see the Risk
management section on pages 49–53.
Control activities. To ensure that
Holmen’s financial and sustainability
reporting objectives are met, control
requirements are incorporated in the pro-
cesses that are deemed relevant: sales,
purchasing, investments, employees,
financial statements, payments, IT and
sustainability reporting. Control activities
aim to prevent, identify and rectify errors
and nonconformities. Business-specific
self-assessments that are completed by
all Group units set out what control
requirements apply for each process and
whether or not they are being met.
Information and communication.
Holmen’s information provision, both
external and internal, adheres to a com-
munication policy adopted by the CEO.
The provision of information to Holmen’s
shareholders and other stakeholders must
be accurate, comprehensive, transparent
and consistent, and must take place on
equal terms and at the right time.
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 valua-
tion of the business.
Internal financial reporting must also
support correct business decisions at all
levels in the Group.
Follow-up and evaluation. Control activi-
ties are regularly assessed to ensure that
they are effective and appropriate. The
results of self-assessments are followed
up on a continuous basis and
nonconformities are reported half-yearly
to the Executive Vice President. The accu-
racy of self-assessments is subject to
testing. Internal control reporting to
Group management takes place once a
year.

The company’s auditors report their
observations from their internal control
review to the audit committee and Board
during the year.

Follow-up is an important tool for iden-
tifying possible deficiencies within the
Group and for addressing these through
the development of new control require-
ments.
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, are
deemed to be sufficient.
Audit
The audit firm PricewaterhouseCoopers
AB (PwC), which has been Holmen’s audi-
tor since 2021, was re-elected as auditor
at the 2024 AGM for one year. 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 Board’s reporting instructions
include requirements that the members of
the Board receive a report each year from
the auditors confirming that the compa-
ny’s organisation is structured to enable
satisfactory supervision of accounting, of
the management of funds and of other
aspects of the company’s financial
circumstances. In 2024, the auditors
reported on their work to the audit com-
mittee at four meetings and to the Board
of Directors on one occasion. In addition
to the audit assignment, Holmen has con-
sulted PwC on matters pertaining to taxa-
tion, accounting and for various investiga-
tions. The remuneration paid to PwC for
2024 is stated in Note 5 on page 75. PwC
is required to assess its independence
before making decisions on whether to
provide Holmen with independent advice
48 Holmen Annual Report 2024
Corporate governance report

Risk management
The Group’s business and operational
risks and climate- and sustainability-
related risks and opportunities are man-
aged by the relevant business areas. The
business areas also make decisions re-
garding 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 finan-
cial risks are managed by Group Finance
based on a finance policy established by
the Board that is characterised by a low
level of risk. This aims to minimise the
Group’s cost of capital and ensure the
effective management and control of the
Group’s financial risks.
Operational risks
Risk
Risk management
Comments
Production and deliveries
Demand for Holmen’s products is affected by
macroeconomic and political factors, among
others, and the competitiveness of European
producers above all. Changes in demand affect
the ability to achieve full production at the
Group’s industrial facilities and can lead to
lower income. Income may also be impacted if
the harvesting of our own forests needs to be
limited and by variations in precipitation and
wind, which govern the production of 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 and energy. Together with
longstanding customer relationships and
strong product brands, this also increases our
ability to maintain a high level of production
amid more difficult market conditions. Chang-
es in demand for wood may be catered for by
moving the harvesting of our own forests be-
tween years, while the production of hydro
power during the year can be controlled by
regulating water reservoir levels.
In 2024, demand for wood products was lower
than normal, while competition for timber was
high. Wood product production was therefore
curtailed due to weak construction activity. For
information about how changes in deliveries
would affect Holmen’s operating profit, given the
circumstances on 31 December 2024, see the
sensitivity analysis on page 53.
Selling prices
The market balance in each product segment
governs the selling price and affects income.
Holmen is limited in its ability to make rapid
changes to its product range in the event of
changes in price, but it adjusts its product fo-
cus towards those products and markets
deemed to have the best long-term condi-
tions and by having a broad customer base
and an offering across a number of product
areas. Changes in the price of wood can be
managed to some extent by moving harvest-
ing from our own forests between years, and
changes in the price of electricity can be part-
ly managed by regulating water reservoir lev-
els in order to move electricity production
over the year.
Market prices for paperboard remained broadly
stable in 2024, while prices for paper products fell
from a high level. Wood product prices increased
in 2024, mainly as a result of supply shortages.
In 2024, Swedish electricity prices were lower
than the previous year. For information about how
changes in prices would affect Holmen’s operating
profit, given the circumstances on 31 December
2024, see the sensitivity analysis on page 53.
Raw materials
Wood, electricity and chemicals are the most
significant input goods and price changes affect
profitability. Holmen’s costs depend on price
developments for input goods, as well as on
how well the Group succeeds in making its
production and administration more efficient.
There is a risk that the Group’s costs will in-
crease if there is a shortage of raw materials,
or if prices increase for input goods.
Nearly half of the Group’s wood needs are
covered by harvesting from the Group’s own
forests, while the remainder is mainly pur-
chased from private forest owners. The
Group’s position when it comes to pulp is
largely balanced 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 elec-
tricity purchases. The price risk for this con-
sumption 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 grid. The
need for thermal energy is great and is met
locally through recovery and production from
residual products. Chemicals are a significant
input, particularly in paperboard production,
but the need is declining since used chemi-
cals are being recovered at the mills.
The price of wood continued to increase in 2024,
while the price of chemicals slightly decreased.
Virtually all electricity consumption for paper pro-
duction was hedged in 2024. For information about
how changes in commodity prices would affect
Holmen’s operating profit, given the circumstances
on 31 December 2024, see the sensitivity analysis
on page 53.
Holmen Annual Report 2024 49
Risk management

Risk
Risk management
Comments
Suppliers
Deficiencies in the input supply chain in terms of
security of supply and quality can lead to produc-
tion disruptions. Suppliers that do not meet
Holmen’s requirements can also have a negative
effect on operations. There is a further risk of
essential raw materials not being delivered
because of changes in laws and regulations or
other external factors.
Holmen endeavours to have at least two approved
suppliers per area of use. Holmen’s Supplier Code
of Conduct is included in all new contracts. The
Code contains sustainable development require-
ments, including respecting internationally recog-
nised principles governing the prevention of cor-
ruption, human rights, the work environment and
the environment. Since 2017, Holmen has engaged
an external party, EcoVadis, to monitor suppliers
for their compliance with the Code. Compliance
with silviculture contractor agreements is ensured
through site visits to forests. All silviculture con-
tractors are given annual training, through the silvi-
culture training programme, in silviculture, and in
labour law, and are informed about where to turn
should irregularities occur.
The supply chain risks relating to the climate, environ-
ment, labour legislation, human rights, business ethics
and sustainable purchasing have been mapped. The
outcome is monitored through EcoVadis, in discussion
with the relevant suppliers. In 2024, 1 (1) breach of the
Supplier Code of Conduct was reported. In the event of
such breaches of the Code, an active discussion with
an action plan is put in place in accordance with
Holmen’s procedures. Suppliers representing 90 per
cent (90) of the Group’s purchasing volumes comply
with the principles of the Supplier Code of Conduct.
Reducing fossil fuel emissions is discussed with the
largest suppliers of input products.
Customer credits
The risk of the Group’s customers being unable to
fulfil their payment obligations constitutes a credit
risk.
The risk that the Group’s customers will not fulfil
their payment obligations is limited by means of
creditworthiness checks, credit limits per custom-
er and, in some cases, by insuring trade receiva-
bles against credit losses. Credit limits are contin-
ually monitored. Exposure to individual customers
is limited.
At 31 December 2024, the Group’s trade receivables
totalled SEK 2 823 million (2 696), of which 39 per cent
(41) were insured against credit losses. During the
year, credit losses on trade receivables had no impact
on earnings, - (SEK -2 million). Sales to the five largest
customers accounted for 13 per cent (14) of the
Group’s total sales in 2024.
Installations
Production may be seriously disrupted, for exam-
ple in the event of a fire, machine breakdown or
natural disaster. This can lead to supply problems,
unexpected costs and reduced customer confi-
dence. Production facilities require ongoing main-
tenance and technical upgrades. Major mainte-
nance shutdowns can entail higher costs and a
greater loss of production than planned. Invest-
ments in non-current assets may also be more
costly than initially planned.
Damage prevention measures, regular mainte-
nance and continual upgrades can minimise the
risk of damage to facilities. Training employees
promotes participation, knowledge and awareness
of these risks and how they can be countered.
Holmen’s facilities are covered against damage
from unforeseen events by property and business
interruption insurance.
In 2024, Holmen revised and restructured the busi-
ness continuity planning framework to ensure better
holistic management. Holmen invests continuously in
fire protection and other damage prevention meas-
ures. Planned maintenance shutdowns are carried out
each year at the Group’s mills and sawmills to ensure
continued good production and high quality products.
In December, the solid fuel boiler at Braviken Paper
Mill was damaged. Paper production was stopped for a
couple of days but was later restarted, resulting in
higher energy costs. The incident is believed to be
covered by insurance, except for the deductible.
IT systems
Efficient IT support is required to be able to man-
age and plan production, sales and purchasing.
Disruptions in IT support and unauthorised access
to information can have significant negative effects
on the business.
Operating disruptions and unauthorised access are
prevented by security measures and preventive
measures in the form of appropriate physical pro-
tection, reliable server operation and secure net-
works. Measures and procedures are in place to
minimise the risk of interruption and to manage sit-
uations if interruptions occur. Holmen is continual-
ly developing protective measures to address
changes in the risk profile.
To make its systems and procedures secure, Holmen
has created a function focused on IT and cyber securi-
ty. A regularly recurring IT security training course for
employees was provided in 2024.
Forestry regulations
Holmen’s right to manage its own forest is crucial
to maintaining its value. There is a risk that the
requirements for the forests to be used as carbon
sinks may increase in the future. Such a develop-
ment could affect the ability to manage the forests
and therefore access to raw materials. Required
changes in forestry methods could lead to reduced
harvests and increased costs.
Forest and land management are regulated both
nationally and at EU level. In order to be able to en-
gage in active and sustainable forestry, it is impor-
tant that laws and regulations 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.
Last year, the spotlight was on the implementation of a
number of EU regulations and Sweden’s competitive-
ness. If Sweden is too ambitious with its implementa-
tion, this risks affecting Sweden’s and Holmen’s ability
to contribute to the climate transition. Holmen has
continually played an active part in discussions, both
on its own and through industry organisations, to
influence the EU’s regulations and the Swedish govern-
ment’s implementation planning, including by high-
lighting the positive climate effects of a managed
forest and the substitution brought about by forest
products.
Damage to forests
Wild game can damage forests 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.
The Group’s forest holdings are not insured as they
are spread across large parts of Sweden and the
risk of extensive damage is not considered to justi-
fy the cost of insurance. To reduce the extent of
grazing by wild animals, active efforts are under-
taken 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.
Spruce bark beetle infestations in southern Sweden
continued to decline in 2024, allowing for more normal
planning and harvesting of mature forest. The forest
management programme has been evaluated in view
of the increased risk of damage to forests in a changing
climate. The programme is aimed at creating robust
forests, meaning that further variation and risk diversi-
fication is being considered. To limit the spread of
spruce bark beetle, Holmen is prioritising the felling of
infested forest and actively working to maintain the
value of the wood and find outlets for damaged logs.
Climate change
Climate change may affect Holmen’s operations,
but there are not currently thought to be any major
physical risks. Warmer temperatures and changes
in precipitation patterns may benefit pests such as
fungi and insects, which may lead to lower timber
volumes and quality. Longer droughts and higher
temperatures may limit forestry activities due to
the ground being frozen for shorter periods or
stoppages due to a high risk of forest fires. At the
same time, a warmer climate could increase forest
growth with longer growth periods, more precipi-
tation and higher levels of carbon dioxide, aiding
photosynthesis.
Producing climate adaptation plans is an ongoing
process at the respective industrial facility and in
forest operations. The management of each site
participates in the process and must prioritise any
activities to be carried out, taking the costs and
risks of the actions and the other needs of the busi-
ness into account. The risk of climate change hav-
ing an impact on Holmen’s industrial facilities is
being managed through each site’s continuity
plans.
The market’s ambitions to combat climate change are
increasing demand for Holmen’s products. Holmen’s
ability to manage its own forests is thus crucial to the
Group’s contribution to limiting climate change. In-
creased demands to reserve land for purposes other
than forestry may lead to reduced harvests and thus
reduced opportunities for the forest to contribute with
renewable products.
50 Holmen Annual Report 2024
Risk management

Risk
Risk management
Comments
Environment and permits
Holmen runs operations that require environ-
mental permits. The permits specify conditions
regarding permitted production volumes, noise
levels and permitted emissions to air and wa-
ter, among others. Production disruptions can
cause breaches of emission conditions set for
the business by the environmental authorities.
Such breaches could affect the environment.
On sites where Holmen has conducted industri-
al operations, the need for remediation may
entail future costs.
Environmental measures are organised and
carried out in accordance with Holmen’s envi-
ronmental and energy policy. In the event of
process disruptions, the environment takes
precedence over production. Risks are prevent-
ed 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 sys-
tems 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 2024, 46 (47) environment-related incidents
were reported to the supervisory authorities. In
2024, a new sludge and sedimentation plant was
installed at Workington Mill. The plant is being ad-
justed so that the environmental permit threshold
value for suspended solids will not be exceeded.
Holmen is maintaining a continuous dialogue with
the equipment’s supplier in order to get it working
according to plan. The supervisory authority has
been notified. Otherwise, there were no incidents
that led to long-term consequences for the envi-
ronment, production or human health in 2024.
All matters were addressed through corrective
actions, within the organisations’ environmental
management systems. Holmen has several wind
farm project applications in progress, but the
authorisation procedure often takes a long time
and its outcome is uncertain.
Work environment
Incidents and accidents in the workplace
have an effect on human life and health. This
can also lead to production disruptions and
increased costs.
Holmen has a vision of zero work-related acci-
dents and its work environment policy states
how work-related injuries and illness are to be
prevented. Certified management systems,
Group-wide targets relating to industrial
accidents, continual training of employees to
increase risk awareness, risk observation and
incident and accident reporting procedures,
and risk assessments of tasks and work by
contractors, are examples of activities to
achieve a high level of safety in the workplace.
In 2024, the rate of industrial accidents was 5.3
per 1 million hours worked (5.2). The most com-
mon accidents were slips, trips and crush injuries.
The most significant areas of risk involve work with
overhead cranes and vehicles with people in move-
ment. Last year, work was focused on launching a
long-term initiative to reinforce and promote safe
behaviour in the work environment.
Talent management
Skilled and motivated employees are key to
being able to conduct business operations with
good profitability over the long term. There is a
structural shortfall in many industrial positions.
Skilled labour shortages can delay work and
disrupt production.
Holmen is working continuously to enhance its
employer brand. Each business area prepares a
long-term talent management plan each year
that identifies recruitment needs. Targeted dig-
ital marketing combined with in-person events,
such as career days and sponsorship collabora-
tions, increase awareness of Holmen and allow
it to attract and retain competent employees.
Annual questionnaires for new recruits and em-
ployee surveys show that employees appreciate
Holmen as an employer. The percentage of em-
ployees who would recommend Holmen as an
employer is at a persistently high level. In 2024,
Holmen received the accolades Karriärföretag
(career company) 2024, and came 13th in Univer-
sum’s ranking of Sweden’s Best Employers
(Sveriges Bästa Arbetsgivare).
Business ethics risks
Nationally and internationally, customers and
partners make demands of Holmen as a stable
and reliable supplier that has good business
ethics and clear sustainability principles. Devi-
ations from principles and policies could have a
negative impact on the Group’s reputation and
business relationships.
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, work-
ers’ rights and the environment. These areas
are clarified in Holmen’s policies and related
guidelines. Office-based employees and
managers at Holmen are trained in the Code of
Conduct every three years, and such training
was provided in 2023.
In 2024, no corruption-related adverse judgments
were delivered against Holmen or its employees.
There are also no such cases ongoing in court. Six
cases were reported through Holmen’s whistle-
blowing service in 2024 that were deemed to con-
stitute whistleblowing as defined by law. As at 31
December 2024, one case was open and under
investigation. Other cases were closed after appro-
priate investigation. No cases of corruption or
bribery were identified. Labour law issues were
handled by following standard HR procedures.
External risks
Holmen operates 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 and pandemics. Moreover, Holmen is
obligated to comply with laws and regulations
wherever it conducts business, including in are-
as such as the environment, real estate, labour
law and taxation. Changes in laws and regula-
tions may affect conditions for Holmen’s opera-
tions and lead to increased costs for regulatory
compliance.
Holmen participates in national and interna-
tional industry organisations whose role is
monitoring social trends and advocacy work,
and that put forward Holmen’s position and
view on relevant political and regulatory issues.
Contact is established with local representa-
tives and the general public in areas where the
Group has operations. This takes place, for ex-
ample, through consultation and information
meetings, visits to sites and meetings with de-
cision-makers. More unforeseeable risks that
may arise, for example as a result of disease
outbreaks, war or political unrest, are managed
through ongoing external monitoring. To main-
tain optimum preparedness and active crisis
management, Holmen is engaged in close
dialogue and coordination with industry
organisations, customers and suppliers.
Following the war in Ukraine, Holmen has taken a
number of measures to safeguard its raw material
supply, logistics and IT security. Holmen complies
with any sanctions adopted. Global trade barriers
in the form of tariffs may affect our sales, both
directly and indirectly through altered trade flows.
Holmen has been active in promoting the growth
of sustainable energy production and bio-based
activities, through dialogue, consultation
responses, preparedness and advocacy work, on
its own and together with industry organisations.
Holmen Annual Report 2024 51
Risk management

0
2 500
5 000
7 500
10 000
CNH/SEK
EUR/GBP
USD/SEK
GBP/SEK
EUR/SEK
SEKm
Financial risks
Risk
Risk management
Comments
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 curren-
cies from costs. Translation exposure risk aris-
es from the translation of foreign subsidiaries’
assets, liabilities and earnings into Swedish
kronor.
Transaction exposure. In order to reduce the impact
on profit of 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 normal-
ly consist of trade receivables and outstanding orders.
The Board may decide to hedge flows for a longer peri-
od if this is deemed to be appropriate in light of the
products’ profitability and competitiveness and the
currency situation. Currency exposure arising when
investments are paid for in foreign currencies is distin-
guished from other transaction exposures. Normally,
90–100 per cent of the currency exposure associated
with major investments is hedged.
Translation exposure. 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 hedging of the 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 the net assets upon
consolidation. The hedges take the form of foreign
currency loans or forward foreign exchange contracts.
The exposure that arises when the earnings of foreign
subsidiaries are translated into Swedish kronor is not
normally hedged.
Expected flows in EUR/SEK are hedged for
just over two years at an average rate of
11.40. For other currencies, 4–5 months of
flows are hedged.
Hedging of exposure to pounds sterling
amounted to GBP 130 million at year-end.
Net assets in other currencies are limited
and are not usually hedged.
12 month net flow
Hedged transaction exposure
Interest rates
Changes in market interest rates affect the
Group’s cost of borrowing.
The fixed interest rate period for the Group’s net
financial debt varies over time and is decided on by
the Board of Directors. To limit the effects of a rise in
interest rates, the interest rate on loans may be fixed,
or interest rate swap agreements may be entered into
without changing the interest rate on the underlying
loans.
SEKm
<1
year
1–3
years
3–5
years
>5
years
Pension
obligations
Right-of-
use agree-
ments
Total
SEK
785
-1 000
-1 500
-
0
-175
-1 890
EUR
189
-
-
-
-9
-41
138
GBP
-1 792
-
-
-
-
-4
-1 796
Other items
156
-
-
-
-
-5
151
-662
-1 000
-1 500
-
-9
-225 -3 397
Holmen’s average borrowing rate in 2024
was 3.2 per cent.
The table below shows the Group’s fixed
interest rate period by currency.
Credit risk relating to financial counter-
parties
The risk of financial transactions giving rise to
credit risks in relation to financial counterpar-
ties.
The creditworthiness of Holmen’s financial counter
parties 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 settlement risk are established for each financial
counterparty and are continually monitored. The calcu-
lation 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 deemed to correspond to the nominal
amount.
At 31 December 2024, the Group had out-
standing derivative contracts of a nominal
amount of SEK 16 billion and a net fair
value of SEK -0.2 billion.
52 Holmen Annual Report 2024
Risk management

Risk
Risk management
Comments
Liquidity and refinancing
The risk that the need for future funding and
refinancing of maturing loans may have to be
met at a high cost.
Holmen’s strategy is to have a strong financial
position to give it room for manoeuvre when
making long-term business decisions. The
target is for net financial debt not to exceed
25 per cent of equity. Holmen’s financing usu-
ally mainly comprises bonds and the issuing
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 its financing needs
over the coming years based on the Group’s
budget and profit forecasts, which are regu-
larly updated.
Net financial debt amounted to SEK 3 397 million,
equal to 6 per cent of equity. Financial liabilities
totalled SEK 3 694 million at the end of the year,
of which SEK 1 048 million are due for payment
in 2025, and financial assets totalled SEK 295 mil-
lion, of which SEK 234 million consist of cash and
cash equivalents and current investments.
The Group has an unused contractually agreed
credit facility of SEK 4 billion that expires in 2027.
The facility includes a limit stipulating that it
cannot be used if the net liability to equity ratio
exceeds 125 per cent.
Credit facility
Financial liabilities
Sensitivity analysis
Operational risks
Impact on operating profit, SEKm
Sale
Change
Price
Deliveries
Board and paper
+/-1%
153
59
Wood products
+/-1%
37
11
Wood from company forests
+/-1%
20
14
Hydro and wind power
+/-1%
6
5
Input goods
Change
Price
Wood
+/-1%
52
Electricity*
+/-1%
3
Chemicals
+/-1%
20
Other variable costs
+/-1%
8
Delivery costs
+/-1%
22
Employees
+/-1%
30
Other fixed costs
+/-1%
21
*Taking electricity price hedges for 2025 into account. Without taking hedges into account, the corresponding
impact would be SEK 11 million.
A 1 per cent change in deliveries and the price
of the Group’s products or significant input
goods is deemed to affect Group operating
profit as per the table on 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.
Holmen hedges part of the electricity consump-
tion at the paper mills. For 2025, price hedges
are in place covering 85 per cent of full produc-
tion. 45 per cent is hedged for 2026 and 10 per
cent for 2027.
Financial risks
Profit/loss before tax*
Change
SEKm
Exchange rate total
+/-5%
225
EUR/SEK
+/-5%
33
USD/SEK
+/-5%
100
GBP/SEK
+/-5%
54
other currencies/SEK
+/-5%
38
Borrowing rate
+/-1% point
1
Equity
Change
SEKm
Transaction hedging
+/-5%
570
Investment hedging
+/-5%
51
Equity hedging
+/-5%
73
Electricity price hedging
+/-60 %
986
Interest rate changes
+/-1% point
61
*Estimated effect for 2025 including hedging.
The table on the right shows the extent of the
impact of any change in the Swedish krona, the
price of electricity or the market interest rate
on Group profit/loss before tax and equity next
year, taking account of hedging. The adopted
change is calculated based on five years’ aver-
age historical volatility for each instrument,
which is deemed to be a reasonable change go-
ing forward. The historical volatility of 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 the profit/loss
before tax by SEK 508 million a year.
0
1 000
2 000
3 000
4 000
5 000
>2029
2028
2027
2026
2025
SEKm
Holmen Annual Report 2024 53
Risk management

Shareholder information

Holmen’s two classes of shares are
listed on Nasdaq Stockholm, Large
Cap. Over the past ten years,
Holmen’s total shareholder return
(dividends paid and share price
performance) has been 328 per
cent, compared with 175 per cent
for the OMX Stockholm GI. For
Holmen, this corresponds to an
annual return of 16 per cent.
The number of shareholders has
increased over the same period
from 22 000 to 50 100.
Stock exchange trading
Holmen was listed on the Stockholm
Stock Exchange in 1936, but was called
Mo och Domsjö AB at the time. Holmen’s
two classes of shares are currently listed
on Nasdaq Stockholm, Large Cap.
At the end of 2024, Holmen A was trading
at SEK 399 (424) and Holmen B at SEK
406 (426), corresponding to a market
capitalisation of SEK 63.7 billion (67.6).
Holmen’s class B shares reached their
highest closing price for the year, SEK 463,
on 21 May. The lowest closing price, SEK
395, was recorded on 9 February.

The daily average number of class B
shares traded was 453 000, which corre-
sponds to a value of SEK 190 million. The
daily average number of class A shares
traded was 854. 35 per cent of trading
took place on Nasdaq Stockholm. Holmen
shares are also traded on other trading
platforms, such as Cboe BXE, LSE and
Aquis.
Dividend
Decisions on shares 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 31 March 2025 approve an
ordinary dividend of SEK 9 per share and
an extra dividend of SEK 3 per share.
Share buy-backs
A total of 1 554 163 class B shares were
repurchased for SEK 647 million during
the year, corresponding to an average
price of SEK 416/share. The buy-backs
amount to 0.9 per cent of the total number
of shares. When combined with the shares
that it already owned, this means that at
31 December 2024 Holmen held 3.0 per
cent of the total number of shares.

The Board proposes the renewal of its
authorisation to buy back up to 10 per
cent of the company’s shares by the 2025
AGM.
Share structure
After the share buy-backs, Holmen
has 157 668 192 outstanding shares,
of which 45 246 468 class A shares and
112 421 724 class B shares. The company
also holds 4 844 132 repurchased class B
shares. 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 restric-
tions on the transferability of the shares.
Ownership structure
Holmen had a total of 50 139 sharehold-
ers at year-end 2024. In terms of num-
bers, Swedish private individuals were the
largest category of owners with 47 555
shareholders. Shareholders registered in
Sweden own 76 per cent (73) of the share
capital. Among foreign shareholders, the
largest proportion of shares are held in
Total shareholder return Holmen B and OMX Stockholm
Including reinvested dividends without tax
Holmen B
Stockholm Stock Exchange (OMXSGI)
Source: Macrobond
Share price performance
Holmen B and OMX Stockholm
0
100
200
300
400
500
600
Jan 25
24
23
22
21
20
19
18
17
16
15
Index
Holmen B
OMX Stockholm 30 (OMXS30)
Total number of class B shares traded (thousands)
0
10 000
20 000
30 000
40 000
50 000
18
19
20
21
22
23
24Jan 25
15
16
17
0
100
200
300
400
500
600
Index
No. of shares (thousands)
12
11
52
25
2
Shareholder categories
Share of capital, %
Swedish institutions
52%
Swedish equity funds
11%
Swedish private individuals
12%
Foreign shareholders
25%
Norway and the US, accounting for 8 per
cent and 7 per cent of the capital, respec-
tively. The largest owner at the turn of
2024/2025, with 62.7 per cent of the
votes and 35.0 per cent of the capital,
was L E Lundbergföretagen AB.
Shareholder communication
Information about the company is availa-
ble on the holmen.com website, including
financial information in the form of reports,
presentations and financial data, as well
as the performance of Holmen’s shares
and contact information.
54 Holmen Annual Report 2024
Shareholder information

Earnings per share, SEK
18.0

Proposed dividend per share, SEK
9.0 +
3.0
Data per share
(adjusted for the 2:1 share split in 2018)
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Diluted earnings per share, SEK1)
18.0
23.0
36.3
18.5
12.2
52.6
13.5
9.9
8.5
3.3
Dividends, SEK

Ordinary dividend, SEK
9.02)
8.5
8
7.5
7.25
3.5
6.75
6.5
6
5.5
Extra dividend, SEK
3.02)
3.0
8
4.0
3.5
-
-
-
-
-
Total dividends as % of:
Equity
3.3
3.2
4.6
4.0
4.1
1.4
4.8
5.0
4.7
4.2
Closing market price
3.0
2.7
3.9
2.6
2.7
1.2
3.9
3.0
3.7
4.0
Profit/loss for the year
67
50
44
62
88
6
50
65
71
158
Return on equity, %1)
5
7
11
7
5
35
10
8
7
3
Return on capital employed, %1) 3)
6
8
13
9
6
9
10
9
9
6
Equity per share, SEK
364
358
352
290
263
238
140
131
127
124
Closing market price, B, SEK
406
426
414
435
394
285
175
218
164
131
Average market price for year, B, SEK
422
414
459
404
310
220
213
186
141
132
Highest market price for year, B, SEK
463
459
573
469
396
297
240
218
163
153
Lowest market price for year, B, SEK
395
372
400
365
228
172
175
157
114
110
Total closing market capitalisation, ’000 SEKm
63.7
67.7
67.5
71.0
64.7
46.6
29.5
36.6
27.4
22.3
P/E ratio4)
23
19
11
23
32
5
13
22
19
39
EV/EBITDA3) 5)
13
11
8
14
19
14
9
13
10
11
Closing beta value (48 months), B, at year-end6)
0.67
0.72
0.74
0.83
0.83
0.89
0.85
0.84
0.81
0.75
Number of shareholders at year-end
50 139
53 344
52 701
48 126 48 104
38 904
33 573
30 903
28 159
28 176
1) See page 134: 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 return on class B shares relative to the return on the OMXSGI
over a period of 48 months.
Share capital structure
Equities
Votes
No. of shares
No. of votes
Quotient
value
SEKm
A
10
45 246 468
452 464 680
26
1 180
B
1
117 265 856
117 265 856
26
3 058
Total no. of shares
162 512 324
569 730 536
4 238
Holding of repurchased class
B shares
-4 844 132
-4 844 132
Total number of outstanding
shares
157 668 192
564 886 404
Changes in share capital
2000–2024
Change
in no. of
shares
Total
no. of
shares
Change
in share
capital
Total
share
capital,
SEKm
2001 Cancellation of repurchased shares
-8 885 827
79 972 451
-444
3 999
2004 Conversion and subscription
4 783 711
84 756 162
239
4 238
2018 Share split
84 756 162
169 512 324
-
4 238
2020 Cancellation of repurchased shares
-7 000 000
162 512 324
-
4 238
Ownership structure*
31 Dec 2024
% of
capital
% of
votes
L E Lundbergföretagen
35.0
62.7
Norges Bank
7.9
2.2
Kempe Foundations
7.6
17.6
Carnegie Funds (Sweden)
2.9
0.8
SEB Funds
2.4
0.7
BlackRock
2.2
0.6
Swedbank Robur Funds
2.1
0.6
Vanguard (US)
2.0
0.6
Handelsbanken Funds
1.6
0.4
Alecta
1.4
0.4
Total
65.2
86.7
Other
34.8
13.3
Total
100.0
100.0
Of which non-Swedish
shareholders
24.8
7.2
*Calculated based on the total number of outstanding
shares. The 10 shareholders identified as having
the largest holdings in terms of capital. Some large
shareholders may have their holdings registered under
nominee names, in which case they are included in
‘Other shareholders’.
Shareholder statistics at 31 Dec 2024
Holding
classes,
no. of shares
No. of
shareholders
Share of
capital, %
1–1 000
46 349
4
1 001–100 000
3 701
11
100 001–
89
85
Total
50 139
100
Annual return at 31 Dec 2024*, %
1 year
3 years
5 years
10 years
Holmen B
-1
2
11
16
Stockholm Stock Exchange (OMXSGI)
9
0
10
11
*Including reinvested dividends.
Holmen’s total shareholder return has averaged 16 per cent a year over the past 10 years, which is 5 percentage
points better than the OMX Stockholm GI.
Holmen Annual Report 2024 55
Shareholder information

1. Fredrik Lundberg

Chairman. Djursholm. Born in 1951.
Member since 1988.
M.Sc. in Engineering,
M.Sc. in Economics and
Dr h c mult. 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.
L E Lundbergföretagen’s shareholding:
55 244 000 shares.
2. Henrik Sjölund

Norrköping. Born in 1966.
Member since 2014.
M.Sc. in International Economics with
German. President and CEO.
Other significant appointments:
Board member of Skanska,
Skogsindustrierna, SKGS and Svenskt
Näringsliv.
Shareholding: 39 602 shares.
3. Alice Kempe

Torshälla. Born in 1967.
Member since 2019. M.Sc. in Forestry.
Other significant appointments:
Chairwoman of the Kempe
Foundations. Board member
of SweTree Technologies AB.
Shareholding: 322 792 shares.
4. Henriette Zeuchner

Stockholm. Born in 1972.
Member since 2015.
M.Sc. in Economics and
Bachelor of Law.
Other significant appointments:
Chairwoman of All Ears AB.
Board member of the NTM Group
and TVM Media.
Shareholding: 1 600 shares.
5. Ulf Lundahl

Lidingö. Born in 1952.
Member since 2004.
Bachelor of Law and
M.Sc. in Economics.
Other significant appointments:
Chairman of Fidelio Capital AB.
Chairman of the credit committee
of Nordstjernan Kredit KB.
Board member of Indutrade AB.
Shareholding: 8 000 shares.
6. Louise Lindh

Stockholm. Born in 1979.
Member since 2010.
M.Sc. in Economics.
Other significant appointments:
Chairwoman of Fastighets AB
L E Lundberg and J2L Holding AB.
Board member of Hufvudstaden AB,
L E Lundbergföretagen AB and Svenska
Handelsbanken AB.
Shareholding: 200 000 shares.
7. Fredrik Persson

Stockholm. Born in 1968.
Member since 2022.
M.Sc. in Economics.
Other significant appointments:
Chairman of BusinessEurope,
Ellevio AB and JM AB. Board member
of A Ahlström Oy, AB Industrivärden,
Hufvudstaden AB, ICA Gruppen AB and
Interogo Holding AG.
Shareholding: 3 000 shares.
8. Carina Åkerström

Stockholm. Born in 1962.
Member since 2023. Legal counsel.
Other significant appointments:
Board member of the World Childhood
Foundation, SkiStar and the Royal
Swedish Academy of Engineering
Sciences’ Business Executives Council.

Shareholding: 630 shares.
9. Lars Josefsson

Norrköping. Born in 1953.
Member since 2016.
M.Sc. in Engineering.
Other significant appointments:
Chairman of TimeZynk. Board member
of Ouman and Nevel.
Shareholding: 7 000 shares.
Workers’ representatives
10. Ari Aula
Norrköping. Born in 1967.
Member since 2023. Employee
representative, Swedish Trade Union
Confederation. Chairman of the
Swedish Paper Workers’ Union,
branch 53, in Braviken.
11. John Nyberg
Överklinten. Born in 1975.
Member since 2024. Employee
representative, Swedish Trade Union
Confederation. Club chairman at
Holmen’s sawmill in Bygdsiljum.
12. Johan Viklund
Hudiksvall. Born in 1979.
Deputy member since 2024.
Employee representative, Swedish
Trade Union Confederation.
Chairman of the Swedish Paper
Workers’ Union, branch 15.
13. Martin Nyman
Ölsund. Born in 1978.
Deputy member since 2021.
Employee representative, PTK.
Chairman of the Holmen Iggesund
Unionen Club.
Shareholding: 760 shares.
14. Daniel Hägglund
Örnsköldsvik. Born in 1982.
Deputy member since 2014.
Employee representative, PTK.
15. Tommy Åsenbrygg
Skebobruk. Born in 1968.
Member since 2015. Employee
representative, PTK.
Shareholding: 200 shares.
Auditors: PricewaterhouseCoopers AB
Principal auditor:
Magnus Svensson Henryson
Authorised public accountant.
Board of Directors
This information relates to personal and related party shareholdings at 31 December 2024.
56 Holmen Annual Report 2024
Board of Directors

1. Fredrik Lundberg
2. Henrik Sjölund
3. Alice Kempe
4. Henriette Zeuchner
5. Ulf Lundahl
6. Louise Lindh
7. Fredrik Persson
8. Carina Åkerström
9. Lars Josefsson
10. Ari Aula
11. John Nyberg
12. Johan Viklund
13. Martin Nyman
14. Daniel Hägglund
15. Tommy Åsenbrygg
1
7
3
4
8
5
9
10
14
6
2
11
13
12
15
Holmen Annual Report 2024 57
Board of Directors

1. Henrik Sjölund

President and CEO

Born in 1966.
Joined Holmen in 1993.
Shareholding: 39 602
shares. Henrik Sjölund has
no material shareholdings
or ownership interests in
companies with which the
Group has significant
business relationships.
Further information is
provided on page 56.
2. Anders Jernhall

Executive Vice President

Born in 1970.
Joined Holmen in 1997.
Shareholding:
21 595 shares.
3. Stefan Loréhn*

CFO

Born in 1978.
Joined Holmen in 2025.
Shareholding:
3 000 shares.
4. Sören Petersson

Senior Vice President Forest

Born in 1969.
Joined Holmen in 1994.
Shareholding:
21 267 shares.
5. Fredrik Nordqvist

Senior Vice President
Renewable Energy

Born in 1971.
Joined Holmen in 2011.
Shareholding: 700 shares.
6. Johan Padel

Senior Vice President
Wood Products

Born in 1966.
Joined Holmen in 2014.
Shareholding: 1 880 shares.
7. Lars Lundin

Senior Vice President
Board and Paper

Born in 1966. Joined
Holmen in 2018.
Shareholding: 4 200 shares.
8. Gunilla R Söderberg

Senior Vice President
Human Resources

Born in 1966.
Joined Holmen in 2013.
Shareholding: 1 373 shares.
9. Ola Schultz-Eklund

Senior Vice President
Technology

Born in 1961.
Joined Holmen in 1994.
Shareholding: 4 602 shares.
10. Stina Sandell

Senior Vice President
Sustainability and
Communications

Born in 1966.
Joined Holmen in 2017.
Shareholding: 2 145 shares.
11. Henrik Andersson

Senior Vice President
Legal Affairs

Secretary of the Board of
Directors.

Born in 1971.
Joined Holmen in 2008.
Shareholding: 5 800 shares.
Group management
This information relates to personal and related party shareholdings at 31 December 2024.
*Took up the post in February 2025.
1
2
8
3
5
4
9
10
11
6
7
58 Holmen Annual Report 2024
Group management

Calendar and information
Information
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, togeth-
er 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. The reports are
also available at holmen.com.
How to order printed documents:
Holmen AB, Group staff
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
Calendar
Holmen will publish the following financial
reports for 2025:
Interim report Jan–Mar: 8 May 2025
Interim report Jan–Jun: 14 August 2025
Interim report Jan–Sep: 23 October 2025
Year-end report: 30 January 2026
2025 AGM: 31 March 2025
Trading and
dividend dates
The last day for trading, including
dividend rights: 31 March 2025

Record date for dividend:
2 April 2025
Payment date for dividend:
7 April 2025
Holmen Annual Report 2024 59
Calendar and information

Operating profit for 2024 amounted to SEK 3 721 million (4 755). The decrease
in profit is due to lower paper prices and the positive impact of income from the
sale of surplus electricity the previous year.
Net financial items totalled SEK -62 million (-49).
Recognised tax totalled SEK -798 million (-1 008), corresponding to 22 per cent
(21) of the profit/loss before tax.
Statement of comprehensive income, SEKm
Note
2024
2023
Profit/loss for the year
2 861
3 697
Other comprehensive income
Revaluation of forest land
9
454
3 493
Revaluations of defined benefit pension plans
18
-5
-6
Tax attributable to items that will not be reclassified to profit/loss for the year
7
-92
-718
Total items that will not be reclassified to profit/loss for the year
357
2 769
Cash flow hedges
Revaluation
-95
-815
Transferred from equity to the income statement
-406
-2 727
Transferred from equity to non-current assets
-
-6
Translation difference on foreign operations
181
55
Hedging of currency risk from foreign operations
-127
-42
Tax attributable to items that will be reclassified to profit/loss for the year
7
129
740
Total items that will be reclassified to profit/loss for the year
-318
-2 795
Total other comprehensive income after tax
39
-27
Total comprehensive income
2 900
3 671
Attributable to:
Owners of the parent company
2 900
3 671
Financial statements
60 Holmen Annual Report 2024
Financial
statements
Income statement, SEKm
Note
2024
2023
Net sales
2
22 759
22 795
Other operating income
3
2 083
1 996
Change in inventories
233
-79
Raw materials and consumables
-12 752
-11 162
Personnel costs
4
-3 389
-3 312
Other operating expenses
5
-4 739
-4 691
Change in value of biological assets
9
907
562
Depreciation and amortisation according to plan
10, 11, 12
-1 388
-1 360
Profit from investments in associates
13
7
6
Operating profit
3 721
4 755
Financial income
6
39
49
Financial costs
6
-101
-98
Profit/loss before tax
3 660
4 705
Tax
7
-798
-1 008
Profit/loss for the year
2 861
3 697
Attributable to:
Owners of the parent company
2 861
3 697
Earnings per share (SEK)
8
basic
18.0
23.0
diluted
18.0
23.0
Average number of shares (million)
8
basic
158.8
160.5
diluted
158.8
160.5

Group
Financial statements
Holmen Annual Report 2024 61
Balance sheet at 31 December, SEKm
Note
2024
2023
Non-current assets
Biological assets
9
31 600
30 555
Forest land
9
26 243
25 793
Non-current intangible assets
10
498
513
Property, plant and equipment
11
11 231
10 330
Right-of-use assets
12
220
244
Investments in associates
13
1 701
1 686
Other shares and participations
13
6
5
Non-current financial receivables
14
46
61
Deferred tax assets
7
3
3
Total non-current assets
71 549
69 190
Current assets
Inventories
15
5 697
4 837
Trade receivables
16
2 823
2 696
Current tax assets
7
144
114
Other operating receivables
16
1 085
1 630
Current financial receivables
14
15
50
Cash and cash equivalents
14
234
1 202
Total current assets
9 999
10 529
Total assets
81 548
79 719
Equity
Share capital
4 238
4 238
Other contributed capital
281
281
Reserves
20 726
20 667
Retained earnings including profit/loss for the year
32 125
31 738
Total equity attributable to owners of the parent company
57 370
56 923
Non-current liabilities
Non-current financial liabilities
14
2 502
1 902
Non-current liabilities relating to right-of-use assets
132
160
Pension obligations
18
9
9
Non-current provisions
19
389
418
Deferred tax liabilities
7
14 252
13 858
Total non-current liabilities
17 285
16 347
Current liabilities
Current financial liabilities
14
953
1 021
Current liabilities relating to right-of-use assets
95
91
Current provisions
19
45
31
Trade payables
20
3 808
3 394
Current tax liabilities
7
97
105
Other operating liabilities
20
1 895
1 808
Total current liabilities
6 893
6 449
Total liabilities
24 178
22 796
Total equity and liabilities
81 548
79 719

Group
Financial statements
62 Holmen Annual Report 2024
Changes in equity, SEKm
Reserves
Share
capital
Other
contri-
buted
capital
Trans-
lation
reserve
Hedge
reserve
Revaluation
surplus
Retained
earnings incl.
profit/loss
for the year
Total
equity
Opening equity balance 1 Jan 2023
4 238
281
126
3 137
17 426
31 742
56 950
Profit/loss for the year
-
-
-
-
-
3 697
3 697
Other comprehensive income
Revaluation of forest land
-
-
-
-
3 493
-
3 493
Revaluation of defined benefit pension plans
-
-
-
-
-
-6
-6
Cash flow hedges
-
-
-
-3 549
-
-
-3 549
Translation difference on foreign operations
-
-
55
-
-
-
55
Hedging of currency risk from foreign operations
-
-
-42
-
-
-
-42
Tax attributable to other comprehensive income
-
-
9
731
-720
1
22
Total other comprehensive income
-
-
22
-2 818
2 774
-5
-27
Total comprehensive income
-
-
22
-2 818
2 774
3 692
3 671
Dividends paid
-
-
-
-
-
-2 592
-2 592
Buy-backs of treasury shares
-
-
-
-
-
-1 119
-1 119
Share savings programmes
-
-
-
-
-
13
13
Closing equity balance 31 Dec 2023
4 238
281
148
320
20 199
31 738
56 923
Profit/loss for the year
-
-
-
-
-
2 861
2 861
Other comprehensive income
Revaluation of forest land
-
-
-
-
454
-
454
Revaluation of defined benefit pension plans
-
-
-
-
-
-5
-5
Cash flow hedges
-
-
-
-501
-
-
-501
Translation difference on foreign operations
-
-
181
-
-
-
181
Hedging of currency risk from foreign operations
-
-
-127
-
-
-
-127
Tax attributable to other comprehensive income
-
-
26
103
-93
1
37
Total other comprehensive income
-
-
80
-398
360
-4
39
Total comprehensive income
-
-
80
-398
360
2 858
2 900
Gain/loss on currency hedges, acquisition of
non-current assets
-
-
-
16
-
-
16
Dividends paid
-
-
-
-
-
-1 831
-1 831
Buy-backs of treasury shares
-
-
-
-
-
-647
-647
Share savings programmes
-
-
-
-
-
11
11
Closing equity balance 31 Dec 2024
4 238
281
228
-61
20 560
32 125
57 370

Group
Financial statements
Holmen Annual Report 2024 63
Cash flow statement, SEKm
Note
2024
2023
Operating activities
Profit/loss before tax
25
3 660
4 705
Adjustments for non-cash items
Depreciation and amortisation according to plan
1 388
1 360
Change in value of biological assets
-907
-562
Change in provisions
-16
-12
Other*
28
-19
Tax paid
-425
-160
Cash flow from operating activities before changes in working capital
3 728
5 311
Cash flow from changes in working capital
Change in inventories
-824
11
Change in trade receivables and other operating receivables
4
899
Change in trade payables and other operating liabilities
409
-417
Cash flow from operating activities
3 317
5 805
Investing activities
Acquisition of property, plant and equipment
-1 956
-1 497
Disposal of property, plant and equipment
38
15
Acquisition of non-current intangible assets
-1
-46
Investments in and acquisition of biological assets
-158
-162
Disposal of biological assets
20
38
Acquisition of shares and participations
-8
0
Disposal of shares and participations
0
0
Cash flow from investing activities
-2 066
-1 653
Financing activities
Long-term borrowings raised
25
1 500
-
Repayment of long-term borrowings
25
-1 000
-1 000
Change in current financial liabilities
25
-112
-64
Repayment of debt related to right-of-use assets
25
-127
-114
Change in current financial receivables
-3
0
Buy-backs of treasury shares
-647
-1 119
Dividends paid to owners of the parent company
-1 831
-2 592
Cash flow from financing activities
-2 221
-4 888
Cash flow for the year
-970
-736
Cash and cash equivalents at beginning of year
1 202
1 935
Exchange difference on cash and cash equivalents
2
3
Cash and cash equivalents at end of year
234
1 202
*Other adjustments primarily consist of foreign exchange effects and the marking to market of financial instruments, profit from associates, as well as gains/losses
on the sale of non-current assets.
Change in net financial debt, SEKm
2024
2023
Opening net financial debt
-1 869
-2 145
Cash flow
Operating activities
3 317
5 805
Investing activities (excl. financial receivables)
-2 066
-1 653
Buy-backs of treasury shares
-647
-1 119
Dividends paid
-1 831
-2 592
Liabilities arising from new right-of-use agreements
-105
-117
Revaluations of defined benefit pension plans
-3
-6
Foreign exchange effects and changes in fair value
-192
-43
Closing net financial debt
-3 397
-1 869

Parent company
Income statement, SEKm
Note
2024
2023
Net sales
2
20 393
20 234
Other operating income
3
1 253
1 337
Change in inventories
192
-81
Raw materials and consumables
-10 890
-9 551
Personnel costs
4
-2 814
-2 706
Other external costs
5
-7 048
-6 754
Depreciation and amortisation according
to plan
10, 11
-60
-61
Operating profit
1 027
2 419
Profit/loss from investments in Group
companies
6, 22
350
360
Interest income and similar income
6
215
175
Interest expenses and similar expenses
6
-281
-176
Profit/loss after financial items
1 311
2 778
Appropriations
23
366
190
Profit/loss before tax
1 677
2 968
Tax
7
-302
-547
Profit/loss for the year
1 375
2 421
Statement of comprehensive
income, SEKm
Note
2024
2023
Profit/loss for the year
1 375
2 421
Other comprehensive income
Cash flow hedges
Revaluation
-108
-6 162
Transferred from equity to the income
statement
-395
2 727
Transferred from equity to non-
current assets
-
6
Tax attributable to other comprehensive
income
7
104
706
Total items that will be reclassified to
profit/loss for the year
-400
-2 723
Total comprehensive income
976
-302
The parent company includes Holmen’s Swedish operations, except for most
of the non-current assets, the business operating at Varsvik Wind Farm and the
Group’s construction system business, which are recognised within other Group
companies.
Profit/loss after net financial items includes the loss from the hedging of equity
in foreign subsidiaries of SEK -127 million (-42).
Cash flow statement,
SEKm
Note
2024
2023
Operating activities
Profit/loss after financial items
1 311
2 778
Adjustments for non-cash items
Depreciation and amortisation
according to plan
60
61
Change in provisions
6
15
Other*
109
230
Tax paid
-318
-55
Cash flow from operating activities
before changes in working capital
1 168
3 029
Cash flow from changes in working
capital
Change in inventories
-699
-89
Change in operating receivables
14
806
Change in operating liabilities
370
-336
Cash flow from
operating activities
853
3 410
Investing activities
Acquisition of property, plant and
equipment
-7
-102
Disposal of property, plant and
equipment
6
51
Acquisition of shares and participations
0
-100
Disposal of shares and participations
1
-
Cash flow from investing activities
0
-151
Financing activities
Long-term borrowings raised
25
1 500
-
Repayment of long-term borrowings
25
-1 000
-1 000
Change in other financial liabilities
25
-614
147
Change in other financial receivables
-3
0
Buy-backs of treasury shares
-647
-1 119
Dividends paid to owners of the parent
company
-1 831
-2 592
Group contributions received
921
988
Group contributions paid
-89
-367
Cash flow from financing activities
-1 763
-3 943
Cash flow for the year
-910
-684
Cash and cash equivalents at beginning
of year
1 090
1 774
Cash and cash equivalents at end of
year
180
1 090
*Other adjustments primarily consist of foreign exchange effects, the marking to
market of financial instruments and gains/losses on the sale of non-current
assets.
Financial statements
64 Holmen Annual Report 2024

Parent company
Balance sheet at
31 December, SEKm
Note
2024
2023
Non-current assets
Non-current intangible assets
10
8
8
Property, plant and equipment
11
3 106
3 098
Non-current financial assets
Shares and participations
13, 22
11 896
11 896
Non-current financial receivables
14
4 365
3 809
Total non-current assets
19 374
18 810
Current assets
Inventories
15
4 720
4 054
Operating receivables
16
3 131
3 618
Current tax assets
7
105
87
Current investments
14
15
50
Cash and cash equivalents
14
180
1 092
Total current assets
8 152
8 901
Total assets
27 527
27 711
Balance sheet at
31 December, SEKm
Note
2024
2023
Equity
17
Restricted equity
Share capital
4 238
4 238
Statutory reserve
1 577
1 577
Revaluation reserve
100
100
Non-restricted equity
Retained earnings incl. hedge reserve
4 682
5 112
Profit/loss for the year
1 375
2 421
Total equity
11 972
13 448
Untaxed reserves
23
4 950
4 484
Provisions
Pension obligations
18
0
1
Provisions
19
630
623
Deferred tax liabilities
7
584
683
Total provisions
1 215
1 308
Liabilities
Non-current financial liabilities
14
3 241
2 684
Current financial liabilities
14
953
1 021
Operating liabilities
20
5 195
4 766
Total liabilities
9 389
8 471
Total equity and liabilities
27 527
27 711
Changes in equity, SEKm
Restricted equity
Non-restricted equity
Share
capital
Statutory
reserve
Revaluation
reserve
Hedge
reserve
Retained
earnings
Profit/loss
for the year
Total
equity
Opening equity balance 1 Jan 2023
4 238
1 577
100
3 045
4 469
4 019
17 448
Appropriation of profits
-
-
-
-
4 019
-4 019
-
Profit/loss for the year
-
-
-
-
-
2 421
2 421
Other comprehensive income
Cash flow hedges
-
-
-
-3 429
-
-
-3 429
Tax on other comprehensive
income
-
-
-
706
-
-
706
Total other comprehensive income
-
-
-
-2 723
-
-
-2 723
Total comprehensive income
-
-
-
-2 723
4 019
-1 598
-302
Dividends paid
-
-
-
-
-2 592
-
-2 592
Buy-backs of treasury shares
-
-
-
-
-1 119
-
-1 119
Share savings programmes
-
-
-
-
13
-
13
Closing equity balance 31 Dec 2023
4 238
1 577
100
322
4 790
2 421
13 448
Appropriation of profits
-
-
-
-
2 421
-2 421
-
Profit/loss for the year
-
-
-
-
-
1 375
1 375
Other comprehensive income
Cash flow hedges
-
-
-
-503
-
-
-503
Tax on other comprehensive
income
-
-
-
104
-
-
104
Total other comprehensive income
-
-
-
-400
-
-
-400
Total comprehensive income
-
-
-
-400
2 421
-1 046
976
Gain/loss on currency hedges,
acquisition of non-current assets
-
-
-
16
-
-
16
Dividends paid
-
-
-
-
-1 831
-
-1 831
Buy-backs of treasury shares
-
-
-
-
-647
-
-647
Share savings programmes
-
-
-
-
11
-
11
Closing equity balance 31 Dec 2024
4 238
1 577
100
-61
4 743
1 375
11 972
Financial statements
Holmen Annual Report 2024 65

Note 1
Notes to the financial
statements
Amounts in SEKm, unless otherwise stated
1. Accounting policies
66
2. Operating segment reporting
71
3. Other operating income
72
4. Employees, personnel costs and remuneration of senior
management
73
5. Auditors’ fee and remuneration
75
6. Net financial items and income from financial instruments
75
7. Tax
76
8. Earnings per share
78
9. Forest land and biological assets
78
10. Non-current intangible assets
82
11. Property, plant and equipment
82
12. Right-of-use assets (leases)
83
13. Investments in associates and other shares
and participations
84
14. Financial instruments
85
15. Inventories
88
16. Operating receivables
88
17. Parent company equity
88
18. Pension obligations
88
19. Provisions
90
20. Operating liabilities
90
21. Related parties
90
22. Investments in Group companies
90
23. Untaxed reserves
91
24. Collateral and contingent liabilities
91
25. Cash flow statement
92
26. Critical accounting estimates and judgements
92
27. Events after the balance sheet date
92
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 ap-
plied consistently to the reporting and the consolidation of the parent company,
subsidiaries and associates.
Compliance with standards and statutory requirements
The consolidated accounts have been 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 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 the preparation of 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’s accounts, biological assets and forest land are
not measured at fair value. Investments in Group companies and associates are
recognised in the parent company’s accounts at the lower of cost and fair value.
Functional currency and reporting currency
The functional currency is the currency used in the primary financial environ-
ments 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.
Estimates and judgements in the financial statements
Preparing the financial statements in accordance with IFRS requires the com
pany’s management to make estimates and judgements, as well as to make
assumptions that affect the application of the accounting policies and the recog-
nised amounts for assets, liabilities, income and expenses. The actual outcome
may deviate from these estimates and judgements.
These estimates and judgements are regularly reviewed. Changes in estimates
are recognised in the accounts for the period in which the change was made if
the change only affects that period, or in the period in which the change was
made and in later periods if the change affects current and future periods.
Also see Note 26 ‘Critical accounting estimates and judgements’.
Changes in accounting policies
New and amended accounting policies applicable as of 2024
The new and amended IFRSs applicable from 1 January 2024 do not have any
material impact on the company’s financial statements.
New and amended accounting policies not yet applied
The new and amended IFRSs to be applied in the future are not expected to
have any material impact on the company’s financial statements. The precise
consequences of the implementation of IFRS 18 Presentation and Disclosure
in Financial Statements have not yet been determined.
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. This is known as the management approach. The segmentation
criteria are based on the Group’s business areas. This is in line with the Group’s
operating structure and the internal reporting to the CEO and the Board. The
operating segments’ profits, assets and liabilities are recognised in accordance
with the profits (operating profit), assets and liabilities that are monitored by
the company’s highest executive decision-maker. See Note 2 for more a detailed
description of the segmentation and a presentation of the operating segments.
66 Holmen Annual Report 2024
Notes

Note 1
Consolidation principles
Subsidiaries
A subsidiary is a company over which the parent company, Holmen AB, exercises
a controlling influence. Potential shares with voting rights and whether de facto
control exists are considered when determining whether one company has
control over another.
The consolidated accounts have been prepared using the acquisition method.
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 has a
significant influence, are stated in the consolidated accounts in accordance with
the equity method.
The equity method. The Group’s share of the net earnings of associates after tax
attributable to the parent company’s owners, adjusted for any depreciation/
amortisation or reversals of negative or positive goodwill acquired, is stated in
the consolidated income statement as ‘Share of profits of associates’. Dividends
received from an associate reduce the book value of the investment.
When the Group’s share of the recognised losses of an associate exceeds the
book value of the investments stated in the consolidated accounts, the value of
the investments is written down to zero. The equity method is applied until such
time as the significant influence no longer exists.
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 rates prevailing on the balance sheet dates. 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 rates prevailing on the transaction dates.
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 into the Group’s
reporting currency (Swedish kronor), at the exchange rates prevailing on the bal-
ance sheet dates. 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 on the date of each transaction. Translation differences arising
during the 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.
On 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 operat-
ing on its behalf: Holmen Skog AB, Holmen Wood Products AB, Holmen Iggesund
Paperboard AB, Holmen Paper AB and Holmen Energi AB. From 2025, all the
operations of the Board and Paper business area will be conducted through the
commission company Holmen Board and Paper AB, formerly Holmen Iggesund
Paperboard AB, following the absorption by merger of the commission company
Holmen Paper AB.
The parent company is liable for all the commitments entered into by these
companies. All the income, expenses, assets and liabilities that arise in the
operations conducted by the companies are recognised in Holmen AB’s accounts,
except for most of the investments made, as well as some sales of forest assets,
which are instead recognised in the accounts of some of the Group’s other
subsidiaries.
Income
The Group’s sales mostly relate to goods sold to customers, which are 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 remuneration
mainly occurs in the form of volume or cash discounts. Volume discounts give
customers 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 is recognised when Holmen fulfils its commitment by transferring
control of the promised goods and, where applicable, services, to the customer.
The date of the transfer of control, and the transfer of risk, is critical to when
income 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
alongside production, when it is also recognised in income.
The Group’s business also includes wood construction solutions. Income from
this activity is treated as commercial construction contracts and recognised
over time, based on costs incurred in relation to the total estimated costs of the
project. Projects do not usually extend beyond twelve months. Holmen therefore
applies the relaxation 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 applica-
ble practice on each market.
Renewable energy certificates and guarantees of origin
Some of the Group’s renewable electricity production entitles it to renewable
energy certificates and guarantees of origin. These are recognised in income as
the eligible electricity production takes place, and provided that a sales contract
is signed with an external party.
Income from certificates and guarantees of origin granted related to hydro and
wind power production is recognised in net sales, and income from certificates
and guarantees of origin granted related to other forms of renewable electricity
production is recognised in other operating income.
Emission allowances
Holmen receives a free allocation of emission allowances under the EU ETS and
UK ETS. The free allocation is recognised as income on the completion of deliv-
ery to external parties for the emission allowances not used to cover emissions
from its own activities. The income is recognised as other operating income.
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, certificates for other forms of renewable energy, rent and land lease
income, emission allowances, insurance compensation and gains/losses on
sales of non-current assets.
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
systematically distributed in the income statement in the same way and over the
same periods as the costs the grants are intended to cover.
Financial income and costs
Financial income and costs consist of interest income and interest expenses,
dividend income and revaluations of financial instruments measured at fair
value, as well as unrealised and realised currency gains and losses.
Interest income on receivables and interest expenses on liabilities are calcu
lated using the effective interest method. Interest expenses include transaction
costs for loans that have been distributed over the duration of the loans; this
also applies to any difference between the funds received and the repayment
amounts. Dividend income is recognised when the dividend is confirmed and
the right to receive payment is judged to be certain.
Interest expenses are charged to profit/loss in the period to which they relate.
Borrowing costs attributable to the purchase or construction of qualifying assets
are capitalised in the consolidated accounts as part of the assets’ cost. A qualify-
ing asset is an asset that takes a substantial period of time to get ready for its
intended use and that is useful to the Group in connection with major investment
projects.
Holmen Annual Report 2024 67
Notes

Note 1
Taxes
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 comprehen-
sive income or directly in equity. Current tax is the tax to be paid or received for
the year in question, at 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 adjustments 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 the values for tax purposes of assets and liabilities,
applying the tax rates and rules that have been decided on or announced at the
balance sheet date. In the parent company’s accounts, untaxed reserves are
recognised including the 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 (EPS)
The calculation of earnings per share (EPS) is based on the Group’s profit/loss for
the year attributable to owners of the parent company and the weighted average
number of shares outstanding during the year. When calculating the diluted EPS,
the earnings and the average number of shares are adjusted to take account of
the effects of diluting potential ordinary shares.
Financial instruments
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 instru-
ment. 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 it. 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.
A financial asset and a financial liability are only offset and recognised as 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.
Classification and measurement of financial instruments
Financial instruments are classified and measured based on the company’s
business model and the nature of the 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 an ongoing 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 distributed 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 the income statement.
Financial liabilities - are measured initially at the value of the funds received
after the deduction of any transaction costs. Normally, the liabilities are meas-
ured on an ongoing basis at amortised cost using the effective interest method.
In those cases where the funds received fall short of the repayment amount, the
difference is distributed 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 the income
statement.
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 the occurrence of an event indicates an increased
credit risk and that the entire book value may not be recovered, an individual
assessment is made of each instrument. Missed payments from counterparties
usually constitute such an event. Any impairment is recognised based on an
individual estimate. For financial instruments for which no events have occurred
that indicate a low credit quality, a provision is made for expected 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 the
hedged item impacts the income statement. The accumulated changes in value
are then reclassified from equity to the income statement through other compre-
hensive income, to charge them against the hedged transactions. When invest-
ments are hedged, the cost of the hedged item is instead adjusted when it is
incurred. 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 operations
are recognised in other comprehensive income for the Group. Accumulated
changes in value are recognised as a component of 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’s accounts, changes
in value relating to hedges of net investments in foreign operations are recog-
nised in the income statement as hedge accounting is not used. Holmen’s cash
flow hedges mainly relate to the hedging of sales in foreign currencies, future
interest payments, electricity purchases and purchases in foreign currencies in
conjunction with investments. Hedging instruments comprise forward foreign
exchange contracts, forward electricity contracts and interest rate swaps.
The hedged items consist of forecasts of future sales, interest payments, elec-
tricity purchases and capital expenditures. The hedge ratio is determined on an
ongoing basis to reflect the economic relationship between the hedged item and
the hedging instrument. The Group’s risk management of financial instruments
is described on pages 52–53.
Forest land and biological assets
The Group’s forest land is recognised at fair value using the revaluation model
in IAS 16 Property, Plant and Equipment. Fair value is calculated based on trans-
action prices for forest properties in the counties where the Group owns forest
land, less the fair value of standing trees recognised as biological assets in
accordance with IAS 41 Biological Assets. Fair value measurement is based on
measurement level 3. 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 proved to be
less than its cost, the difference would be recognised in the income statement.
Standing trees are recognised at fair value as biological assets in accordance
with IAS 41 Biological Assets. The value of the biological assets is established by
calculating the present value of the cash flows, less selling costs but before tax,
expected from harvesting the currently standing trees. Fair value measurement
is based on measurement level 3. Changes in the fair value of biological assets
are recognised in the income statement.
Recognition in the parent company’s accounts
Forest land and standing trees are recognised in accordance with RFR 2 in the
parent company’s accounts. This means that they are classified as non-current
assets (forest land) and recognised at cost adjusted for revaluations taking into
account the need, if any, for impairment.
Non-current intangible assets
Non-current intangible assets, such as IT systems and right-of-use assets relat-
ing to some energy assets, are recognised at cost after the deduction of accumu-
lated amortisation and any impairment losses. The Group’s non-current intangi-
ble 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, with the exception
of goodwill. Non-current intangible assets in the parent company’s accounts are
amortised over five years.
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 associ-
ates is included in the book value of investments in associates.
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, the registration of legal rights, the amortisation of patents
and licences and borrowing costs in accordance with IAS 23. Other development
expenditure is recognised in the income statement as expenses when incurred.
Property, plant and equipment
Property, plant and equipment are stated at cost after the deduction of accumu-
lated depreciation and any impairment losses. Property, plant and equipment
that consist of parts with different useful lives are treated as separate compo-
nents of property, plant and equipment. Additional expenditure is capitalised
68 Holmen Annual Report 2024
Notes

Note 1
only if it is judged 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 when the replacement is made.
The book value of an item of property, plant or equipment is removed from the
balance sheet on the retirement or disposal of the asset or when no future finan-
cial benefits can be expected from 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/expenses.
Depreciation according to plan is based on the 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 (in years) are used:
Machinery for hydro and wind 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
10–20
Other machinery
10
Forest roads
20
Equipment
4–10
If there is any indication that the book value is too high, an analysis is made in
which the recoverable amount of individual or inherently related assets is deter-
mined as the higher of the net realisable value and the value in use. The value in
use is measured as the 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 a
positive change in the circumstances upon which the determination of the recov-
erable 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
must be capitalised in the consolidated accounts as part of the assets’ cost.
A qualifying asset is an asset that takes a substantial period of time to get ready
for its intended use and that is useful to 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 agree-
ment is, or contains, a lease. An agreement is, or contains, a lease if the agree-
ment 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
an associated liability upon entering into a lease agreement. 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 agree-
ment’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 to be 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 an expense 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
optional exception 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, after deductions for necessary obso-
lescence, and net realisable value. The cost of inventories is calculated using the
first in, first out method (FIFO). The net realisable value is the estimated selling
price for the operating activity after the deduction of the estimated costs of
completion and of making 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 in inventories. These have been acquired with
a view to meeting Holmen’s raw material requirements through harvesting. No
measurable biological change has occurred since the acquisition date.
Renewable energy certificates and guarantees of origin received are recognised
in inventories and income as the eligible electricity production takes place, and
provided that a sales contract has been signed with an external party.
Employee benefits
Pension costs and pension obligations
Obligations to pay premiums to defined contribution plans are recognised as an
expense in the income statement as and when they are earned.
The Group’s net obligation regarding defined benefit plans is calculated sepa-
rately for each plan by estimating future benefits earned by employees through
their employment in both current and previous periods. These benefits are dis-
counted to present value and the fair value of any plan assets is deducted. The
discount rate is the interest rate at the balance sheet date based on a selection
of high-quality corporate bonds 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 defined benefit portion of the pension obligations.
The establishing of the obligations’ 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 changes occur in conjunction with restructuring,
they are 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, the book value of the asset
is limited to the lower of the plan surplus and the maximum value of the asset
calculated using the discount rate. The maximum value of the asset consists of
the present value of future economic benefits in the form of reduced future costs
or cash reimbursements. Any minimum funding requirements are taken into ac-
count when calculating the present value of future reimbursements or receipts.
The interest expenses in respect of defined benefit obligations are recognised
in profit/loss for the year under financial items. They are calculated as the
net total of the upward adjustment of interest on the pension obligations and
expected income on plan assets calculated using the same interest factor
(discount rate). Other components are recognised in operating profit/loss.
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 is recognised in 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, the tax is
levied on profit/loss for the year.
In the parent company’s accounts, different bases are used for the calculation
of defined benefit 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 wage increases 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 for payroll tax is recog-
nised in the consolidated accounts 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 settled through equity instruments. Recognition of
share-based payment programmes settled through equity instruments entails
the fair value of the instrument at the dividend date being recognised in the
Holmen Annual Report 2024 69
Notes

Note 1
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 shares to be allocated, and the effect of any change in
previous estimates is 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 savings 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 is 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 granted 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 rendered.
Equity
Consolidated equity comprises share capital, other contributed capital, the
translation reserve, hedge reserve, revaluation surplus 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 the
exchange differences arising in the translation of foreign operations’ financial
statements that have been 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 the hedging of
a net investment in a foreign operation, including tax. The hedge reserve com-
prises the effective portion of the accumulated net change in the fair value of
cash flow hedging instruments attributable to underlying transactions that have
not yet occurred, including tax. The revaluation surplus comprises changes in
value attributable to forest land. Retained earnings comprise all the other
components of equity, including profit/loss for the year.
Holdings of repurchased shares 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.
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 charged
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 the
other components of equity, such as hedge reserves and transactions as a result
of treasury 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.
Provisions are made for environmental measures that relate to earlier activities
when pollution 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’s accounts in accord-
ance 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 ‘Invest-
ments in Group companies’. In addition, a review is conducted of whether the
shares need to be impaired. 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 the
equivalent. The absence of a value is indicated by a dash (-).
70 Holmen Annual Report 2024
Notes

Note 2
Note 2. Operating segment reporting
2024
Forest
Renewable
Energy
Wood
Products
Board and
Paper
Group-wide
and other
Eliminations
Total Group
Net sales
External
2 991
634
3 896
15 238
-
-
22 759
Internal
6 327
8
-
-
-
-6 335
-
Other operating income
228
54
962
1 560
254
-975
2 083
Operating expenses
-8 431
-327
-4 671
-14 112
-417
7 311
-20 647
Change in value of biological assets
907
-
-
-
-
-
907
Depreciation and amortisation according to plan
-75
-111
-186
-984
-32
-
-1 388
Profit from investments in associates
-
6
1
-
-
-
7
Operating profit/loss
1 947
264
2
1 702
-194
-
3 721
Operating margin, %
21
41
0
11
-
-
16
Return on capital employed, %
4
6
0
21
-
-
6
Operating assets
60 950
5 428
3 319
11 536
750
-734
81 250
Operating liabilities
-2 632
-276
-757
-2 218
-1 085
734
-6 234
Deferred tax, net
-12 341
-564
-188
-1 300
143
-
-14 249
Capital employed
45 978
4 588
2 375
8 019
-192
-
60 767
Acquisition of non-current assets
229
559
364
949
13
-
2 114
External net sales by market
Sweden
2 991
634
1 237
562
-
-
5 425
UK
-
-
587
1 953
-
-
2 540
Germany
-
-
47
2 428
-
-
2 475
Italy
-
-
13
1 257
-
-
1 271
France
-
-
43
1 158
-
-
1 201
Rest of Europe
0
-
898
5 020
-
-
5 918
Asia
-
-
254
1 732
-
-
1 986
Rest of the world
-
-
816
1 128
-
-
1 944
Total
2 991
634
3 896
15 238
-
-
22 759
Group
Parent company
Net sales by market
2024
2023
2024
2023
Sweden
5 425
5 637
5 827
5 670
UK
2 540
2 565
1 950
1 845
Germany
2 475
2 495
2 022
2 062
Italy
1 271
1 174
1 134
1 027
France
1 201
1 406
1 034
1 229
Rest of Europe
5 918
5 776
4 679
4 839
Asia
1 986
2 130
1 910
2 070
Rest of the world
1 944
1 612
1 838
1 492
Total
22 759
22 795
20 393
20 234
Income from external customers has been allocated to individual countries
according to the country in which the customer is based.
Group
Parent company
Non-current assets by country
2024
2023
2024
2023
Sweden
69 991
67 680
15 005
14 997
UK
1 499
1 437
-
-
Other
4
4
-
-
Total
71 494
69 121
15 005
14 997

Group
Parent company
Net sales by product group
2024
2023
2024
2023
Consumer paperboard
7 072
6 437
4 550
4 133
Pulp
384
328
610
454
Paper
7 782
8 200
7 782
8 200
Wood products
3 593
3 649
3 706
3 819
Wood construction solutions
302
422
-
-
Wood
2 991
2 692
2 991
2 691
Electricity
623
1 051
595
781
Other
12
17
159
156
Total
22 759 22 795 20 393 20 234
Holmen Annual Report 2024 71
Notes

Notes 2–3
Note 2. Operating segment reporting, cont.
2023
Forest
Renewable
Energy
Wood
Products
Board and
Paper
Group-wide
and other
Eliminations
Total Group
Net sales
External
2 692
1 063
4 075
14 965
-
-
22 795
Internal
5 304
7
-
-
-
-5 311
-
Other operating income
235
31
820
1 520
250
-861
1 996
Operating expenses
-7 194
-299
-4 706
-12 799
-420
6 172
-19 245
Change in value of biological assets
562
-
-
-
-
-
562
Depreciation and amortisation
according to plan
-77
-110
-184
-957
-32
-
-1 360
Profit from investments in associates
-
5
1
-
-
-
6
Operating profit/loss
1 523
697
6
2 730
-202
-
4 755
Operating margin, %
19
65
0
18
-
-
21
Return on capital employed, %
4
16
0
34
-
-
8
Operating assets
59 005
5 142
3 015
10 846
1 011
-615
78 403
Operating liabilities
-2 220
-338
-720
-2 010
-1 082
615
-5 755
Deferred tax, net
-12 016
-522
-156
-1 210
49
-
-13 856
Capital employed
44 768
4 283
2 139
7 625
-22
-
58 793
Acquisition of non-current assets
222
59
391
1 011
22
-
1 706
External net sales by market
Sweden
2 691
1 063
1 336
547
-
-
5 637
UK
-
-
621
1 944
-
-
2 565
Germany
-
-
29
2 466
-
-
2 495
France
-
-
41
1 365
-
-
1 406
Italy
-
-
11
1 163
-
-
1 174
Rest of Europe
1
-
851
4 924
-
-
5 776
Asia
-
-
340
1 790
-
-
2 130
Rest of the world
-
-
846
766
-
-
1 612
Total
2 692
1 063
4 075
14 965
-
-
22 795
The Forest business area manages the Group’s forests, which cover just over
one million hectares. The annual harvest of own forests usually amounts to 2.8
million m3sub. This business area is also responsible for the Group’s wood supply
in Sweden.
The Renewable Energy business area is responsible for the Group’s hydro power
and wind power assets. Deliveries in 2024 amounted to 1.7 TWh of renewable
hydro and wind power electricity and include wind power electricity bought from
a wind farm constructed on Holmen’s land.
The Wood Products business area supplies wood products for joinery and
construction purposes to five sawmills in Sweden and operates a timber frame
construction business. In 2024, 1.3 million m3 of wood products were delivered.
The Board and Paper business area manufactures paperboard and paper
products at four production facilities in Sweden and the UK. In 2024, 1.4 million
tonnes of paperboard and paper were delivered.
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 constitute their capital employed. Group management monitors the
business at operating profit level, and in terms of earnings relative to capital
employed. The capital employed in each segment includes all the 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, net financial items, 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 based 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
2024
2023
2024
2023
Sales of by-products
950
783
793
631
Sales of non-current assets
21
15
6
43
Certificates, renewable energy
646
557
0
0
Emission allowances
103
235
88
272
Insurance compensation
3
7
0
2
Rent and land lease income
57
48
50
47
Silviculture contracts
109
113
109
113
Other
194
238
207
229
Total
2 083
1 996
1 253
1 337
Of the sales of by-products in the consolidated accounts, SEK 237 million (178)
relate to rejects from production, SEK 450 million (339) to wood shavings, bark
and chips, as well as SEK 263 million (266) to external sales of energy.
Renewable energy certificates mainly relate to allocations for production at
the UK paperboard mill in Workington. The Group has been allocated emission
allowances under the EU ETS and the UK ETS that have been partly used for its
own production. The value of the surplus is recognised on the external delivery
of emission allowances sold, which has resulted in a recognised profit of SEK
103 million (235).
72 Holmen Annual Report 2024
Notes

Note 4
Note 4. Employees, personnel costs and remuneration of senior management
Group
Parent company
Wages, salaries and social security
costs
2024
2023
2024
2023
Wages and other remuneration
2 356
2 311
1 897
1 841
Social security costs
958
922
858
803
The AGM’s guidelines for determining wages and other
remuneration for senior management
The 2023 AGM decided on the following guidelines for determining the wages
and other remuneration of the CEO and other members of senior management,
namely the heads of the business areas and heads of Group staff who report
directly to the CEO. The guidelines will apply to remuneration agreed after the
guidelines were adopted by the 2023 AGM. The guidelines do not cover remu-
neration determined by the AGM.
The 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 trans-
formed into everything from wood products for climate-smart building to renew-
able packaging, magazines and books, using energy that largely comes from its
own hydro and wind power.
The company must be able to attract the right employees to be able to success-
fully implement the company’s business strategy, long-term interests and
sustainability. These guidelines are intended to give Holmen the means to hire
and retain qualified employees and ensure that the forms of remuneration and
other conditions are uniform and consistent.
Forms of remuneration
Long-term share-based incentive programmes are introduced within the compa-
ny from time to time. These are approved by the general meeting of shareholders
and are therefore not covered by these guidelines. See holmen.com for more
information about these programmes.
Remuneration for senior management should be in line with market terms and
competitive within the job market for senior managers, as well as reflecting
senior management’s responsibilities, powers and performance. Remuneration
may consist of a fixed wage, variable remuneration, other benefits and a pension.
Variable remuneration should be aimed at encouraging and rewarding value-
creating initiatives that support the company’s business strategy, sustainability
and long-term interests. Variable remuneration should be calculated based
on the achievement of measurable targets and not exceed 50 per cent of the
person’s fixed annual wage. It should be possible to measure compliance with
the criteria for the payment of variable remuneration annually, under normal
circumstances.
Other benefits may include such items as health insurance, and housing and
car allowances. Where such benefits are provided, they should constitute no
more than 10 per cent of the person’s fixed wage.
The retirement age should usually be 65 years. Pension benefits should be
based on defined contributions and should usually be equal to 30 per cent of
the person’s fixed cash wage.
Notice and severance pay
The period of notice should be 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’ wages.
Consideration of wage and employment conditions for other employees
In formulating its proposals for these remuneration guidelines, the Board
took into account the wage and employment conditions of the company’s other
employees, by including information about employees’ total remuneration, the
components of such remuneration, and the increase in remuneration and rate
of increase over time, in the basis for decision-making when evaluating the
reasonableness of these guidelines.
Decision-making process for establishing, reviewing and implementing
the guidelines
The Board has created a remuneration committee. The committee’s duties
include preparing the Board’s decision on proposed remuneration guidelines for
members of senior management. Under Chapter 8, § 51 of the Swedish Compa-
nies Act, the Board must prepare 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 guidelines and applicable remunera-
tion structures and levels in the company. Members of the remuneration com-
mittee must be independent in relation to the company and its senior manage-
ment. The Chief Executive Officer 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.
Deviations 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 a deviation
is necessary in the long-term interests of the company, including its sustainability,
or to ensure the company’s financial viability.
Share savings programmes
In 2024, Holmen had two outstanding long-term directed share savings
programmes, LTIP 2022 and LTIP 2024, decided on by the Annual General
Meeting. The aim of the programmes is to strengthen common interests between
key individuals and shareholders, as well as to foster a long-term commitment
to Holmen.
The 2022 AGM approved a share savings programme reserved for key individu-
als in the Group (‘LTIP 2022’). Participation in LTIP 2022 requires a personal
investment in Holmen shares (so-called savings shares) and continued employ-
ment throughout the duration of the programme. The programme expires on
8 May 2025 and covers 67 participants who have invested in a total of 18 861
savings shares. The programme has performance conditions linked to the total
return on capital employed for the industrial business areas Wood Products and
Board and Paper (‘ROCE’) and to the total shareholder return on Holmen’s class
B shares (‘TSR’) during the period 2022–2024. The performance condition
linked to the ROCE may yield 3–6 shares per savings share, with the CEO receiv-
ing 6 shares, the Executive Vice President 5 shares and other members of Group
management 3–4 shares per savings share. For the performance condition
linked to the ROCE, the maximum allocation will be made, as the ROCE during
the period amounted to 32 per cent, exceeding the requirement for the maxi-
mum allocation of a ROCE of more than 17 per cent. No allocation would have
been made if the ROCE was less than 12 per cent. The performance condition
linked to the TSR may yield 0.5 shares per savings share. No award for the
performance condition linked to the TSR will be made as the total shareholder
return amounted to 6 per cent, which was below the requirement of a TSR of
10 per cent. The number of shares expected to be allocated at the end of the
programme in May 2025 is 66 400. The total recognised cost for LTIP 2022 for
the period 2022–2024 amounts to SEK 42 million, of which SEK 9 million (16)
was recognised in 2024.
The 2024 AGM decided on a share savings programme reserved only for
members of Group management (LTIP 2024). Participation in the programme
requires a personal investment in Holmen shares (so-called savings shares)
and continued employment throughout the duration of the programme. The
programme expires in spring 2027 and covers 10 participants who have invested
in a total of 8 940 savings shares. The programme has performance conditions
linked to the total return on capital employed for the industrial business areas
Wood Products and Board and Paper (‘ROCE’), the development of the Group’s
climate benefit (‘Climate benefit’) and the total shareholder return on Holmen’s
class B shares (‘TSR’) during the period 2024–2026. The performance condition
linked to the ROCE may yield 5.4 shares for the CEO, 4.5 shares for the Executive
Vice President and 3.6 shares per savings share for other members of Group
management. A maximum allocation requires that the ROCE exceeds a maxi-
mum level decided on by the Board. No allocation will be made if the ROCE is
below a minimum level decided on by the Board. For an outcome between the
minimum and maximum levels, the allocation will be adjusted on a straight-line
basis. The performance condition linked to the Climate benefit may yield 0.6
shares for the CEO, 0.5 shares for the Executive Vice President and 0.4 shares
per savings share for other members of Group management. The allocation of
shares requires an increase in the reported climate benefit measured as an aver-
age over the financial years 2024–2026 compared with the reported climate
benefit during the reference year 2023. If the climate benefit decreases or
remains unchanged during the measurement period, no allocation linked to
the Climate benefit will be made. See pages 102 and 104 for the definition and
calculation of the climate benefit for the financial year 2024. The performance
condition linked to the TSR may yield 0.5 shares per savings share for the CEO,
the Executive Vice President and other members of Group management. The
maximum number of shares that may be allocated under the programme is
47 000. The total recognised cost for LTIP 2024 amounts to SEK 5 million (-).
Holmen Annual Report 2024 73
Notes

Note 4
Note 4. Employees, personnel costs and remuneration of senior management, cont.
Summary of wages, remuneration and other benefits in 2024
SEK (kronor)
Fixed
wage
Variable
remuneration1)
Others
benefits
Total wages,
remuneration and
other benefits
Recognised wage
cost, share savings
programmes2)
Pension
cost3)
Chief Executive Officer
11 400 000
2 736 000
479 605
14 615 605
2 403 206
6 796 262
Other members of senior management (9)4)
28 519 000
5 239 530
1 033 187
34 791 717
4 172 055 10 370 925
1) Variable remuneration consists of the short-term incentive programme for 2024 that will be paid out in 2025.
2) Refers to the recognised wage cost for the LTIP 2022 and LTIP 2024 share savings programmes. No allocations were made under share savings programmes during
the year.
3) The pension cost for the CEO includes a SEK 3 375 599 recognised cost for an option to retire before the usual retirement age. The pension cost for other members of
senior management includes a recognised cost of SEK 1 845 296 relating to an option to retire before the usual retirement age for three senior managers.
4) 10 people in January and 9 people for the rest of the year.
Summary of wages, remuneration and other benefits in 2023
SEK (kronor)
Fixed
wage
Variable
remuneration1)
Others
benefits
Total wages,
remuneration and
other benefits
Recognised wage
cost, share savings
programmes2)
Pension
cost3)
Chief Executive Officer
11 040 000
5 520 000
453 054
17 013 054
2 032 526
6 171 350
Other members of senior management (10)
29 739 862
9 548 400
1 212 904
40 501 166
3 873 303
10 597 299
1) Variable remuneration consists of the short-term incentive programme for 2023 that was paid out in 2024.
2) Refers to the recognised wage cost for the LTIP 2022 share savings programme. No allocations were made under share savings programmes during the year.
3) The pension cost for the CEO includes a SEK 2 888 318 recognised cost for an option to retire before the usual retirement age. The pension cost for other members
of senior management includes a recognised cost of SEK 1 715 132 relating to an option to retire before the usual retirement age for three senior managers.
Short-term variable remuneration of members of senior management
The short-term variable remuneration for members of senior management
(‘STI’) is calculated annually and may amount to a maximum of 50 per cent of
their annual fixed salary for the CEO and Executive Vice President and a maxi-
mum of 35 per cent of their annual fixed salary for the rest of Group manage-
ment. STI is not pensionable. The criteria for STI for 2024 to be paid out in 2025
are 90 per cent based on the return on capital employed (ROCE) for the industrial
business areas (i.e. Wood Products and Board and Paper) and 10 per cent based
on the accident rate at Holmen’s workplaces being reduced. For the heads of the
industrial business areas, the allocation based on the ROCE was 70 per cent for
the ROCE for their own business areas and 30 per cent for the overall ROCE for
the industrial business areas. For the Senior Vice President Renewable Energy,
specific quantitative parameters have been applied. The criterion for STI for
2023 paid out in 2024 was based on the return on capital employed (ROCE)
of the industrial business areas.
For STI for 2024, the range for the ROCE was 11–21 per cent, with no STI being
paid for a ROCE of < 11%, maximum STI being paid for a ROCE of ≥ 21 per cent
and a payout on a straight-line basis for a ROCE of 11–21 per cent. For STI for
2023, the range for the ROCE was 11–22 per cent.
For 2024, the ROCE for the industrial business areas totalled 16.3 per cent and
the accident rate increased to 5.3 accidents per million hours worked compared
with 5.2 in 2023. This means that the payout to the CEO and the Executive Vice
President in respect of STI for 2024 will amount to 48 per cent of the maximum
STI. For other members of Group management, the outcome is between 11–81
per cent of the maximum STI. For 2023, the combined ROCE for the industrial
business areas was 27 per cent. This means that the payout to the CEO and the
Executive Vice President in respect of the STI for 2023 will amount to 100 per
cent of the maximum STI. For the other members of Group management, the
outcome is between 33–100 per cent of the maximum STI.
Notice period for members of senior management
For members of 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’ wages will be paid.
These terms apply to the CEO and seven other people. For two senior manage-
ment 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’ wages will be paid, depending on age.
All members of senior management are employed by the parent company.
Pension obligations in respect of senior management
Holmen’s defined benefit pension obligations for the CEO amounted to SEK 46
million (40) at 31 December 2024 and, for the other members of senior manage-
ment, to SEK 34 million (30), calculated in accordance with IAS 19. The obliga-
tions relate to the costs that would arise if the CEO and three members of senior
management retired before ordinary retirement age based on agreements
entered into in accordance with the applicable guidelines for remuneration
for members of senior management. The pension obligations are secured by
plan assets managed by an independent pension fund.
Proportion of women in Holmen’s Board of Directors and Group management
Group
Parent company
Proportion of women, %
2024
2023
2024
2023
Board (excl. deputy members)
33
33
33
33
Senior management
20
18
20
18
Total
29
27
29
27
Remuneration of the Board and members of senior
management
Board of Directors
A fixed Board fee is paid to the members of the Board elected by the AGM. The
CEO does not receive a Board fee. For 2024, fees paid to the Board amounted to
SEK 3 870 000 (3 690 000). The Chairman of the Board received a fee of SEK
860 000 (820 000), and each of the other seven (seven) members received SEK
430 000 (410 000).
Senior management
The remuneration and other benefits for the CEO and other members of senior
management are set out below. Other members of senior management refers to
the four (five) heads of the business areas and five (five) heads of the Group
staffs.
74 Holmen Annual Report 2024
Notes

Note 1
Notes 4–6
Average no. of employees
(FTE)
Average number of
employees (FTE)*
of whom
women
of whom
men
Average number of
employees (FTE)*
of whom
women
of whom
men
2024
2023
Parent company
Sweden
2 901
662
2 239
2 923
660
2 263
Group companies
France
13
5
8
13
5
8
Netherlands
69
40
29
75
44
31
UK
387
39
348
407
44
364
Sweden
59
14
45
58
13
44
Germany
21
6
15
22
7
15
US
8
3
5
8
3
5
Other countries
40
15
25
41
15
26
Total Group companies
597
122
475
623
131
492
Total Group
3 498
784
2 714
3 546
792
2 755
Note 5. Auditors’ fee and remuneration
The audit firm PricewaterhouseCoopers AB (PwC), which has been Holmen’s
auditor since 2021, was re-elected as auditor at the 2024 AGM for a period of
one year. PwC performs the audit for Holmen AB as well as for the majority of
Holmen’s subsidiaries.
‘Audit assignments’ refers to the statutory examination of the annual accounts
and accounting records, and of the administration by the Board and the CEO, and
the auditing carried out 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 as a result of observations in connection with such
reviews or the performance of such other duties. ‘Tax advice’ refers to all
consulting in the field of taxation.
Group
Parent company
Remuneration of auditors
2024
2023
2024
2023
Audit assignments, PwC
10
9
7
6
Tax advice, PwC
0
1
0
1
Total
10
9
7
6
Other auditors
0
0
-
-
Total
10
9
7
6
Note 6. Net financial items and income from financial instruments
Group
Parent company
Net financial items
2024
2023
2024
2023
Dividend income from Group
companies
-
-
344
348
Foreign exchange effect on the
liquidation of Group companies
4
-
6
-
Interest income
35
49
215
175
Total financial income
39
49
565
535
Net gains/losses on financial
instruments
Measured at fair value
through profit/loss
-41
17
-172
-12
Cash and cash equivalents
-4
1
0
0
Measured at amortised cost
45
-16
45
-16
Total net profit/loss
0
1
-127
-29
Interest expenses attributable to
right-of-use agreements
-7
-7
-
-
Interest expenses*
-94
-93
-154
-136
Financial costs
-101
-98
-281
-176
Net financial items
-62
-49
284
359
*SEK -23 million (-19) relates to interest expenses for derivatives measured
at fair value through other comprehensive income. SEK -3 million (-2) relates
to interest expenses for derivatives recognised at fair value through profit/loss
for the year.
Interest expenses and interest income are usually calculated using the effective
interest method from financial items measured 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 revaluations of forward
contracts that hedge net investments in foreign operations, which are recognised
in the consolidated accounts under other comprehensive income. The fair value
of the interest component of forward foreign exchange contracts as well as
changes in the value of the accrued interest and realised interest component of
fixed interest rate swaps are recognised on an ongoing basis in net interest items.
Information on financial risks is provided in the section on risk on pages 52–53.
Holmen Annual Report 2024 75
Notes

Notes 6–7
Note 6. Net financial items and income from financial instruments, cont.
The income from financial instruments recognised in operating profit/loss is
shown in the following table:
Group
Parent company
2024
2023
2024
2023
Exchange gains/losses on trade
receivables and trade payables
244
459
250
449
Net gain/loss from derivatives
recognised in operating profit/loss
-570
536
-610
215

The derivatives recognised in operating profit/loss relate to currency hedges of
trade receivables and trade payables as well as financial electricity derivatives.
Gains and losses on currency hedges are recognised in operating profit/loss
when the hedged item is recognised and in 2024 amounted to SEK -347 million
(-477), the remainder being recognised in other comprehensive income as
hedge accounting is applied. The fair value of outstanding currency hedges
recognised in other comprehensive income was SEK -61 million (64) at
31 December 2024.
Gains/losses on financial electricity hedges are recognised in the income state-
ment when they expire; for 2024 they totalled SEK -223 million (872). The fair
value of outstanding financial electricity hedges at 31 December 2024 was SEK
-66 million (302). The change in fair value is recognised in other comprehensive
income as hedge accounting is applied.
The change in the fair value of hedges of investment purchases is recognised
in the hedge reserve until expiry, at which point the gain/loss is moved from
equity to the cost of the non-current asset that was hedged. The fair value of
outstanding hedges of investment purchases amounted to SEK 12 million (-8)
at 31 December 2024. In 2024, there was a SEK -14 million (12) impact on the
cost of hedged items due to the result from hedging.
The result from the hedging of foreign net assets amounted to SEK -127 million
(-42) in 2024 and was recognised in other comprehensive income as hedge
accounting was applied. In the parent company’s accounts, this result is recog-
nised in the income statement. The translation of foreign net assets had an impact
of SEK 181 million (55) on consolidated equity. The fair value of outstanding
hedges of net assets at 31 December 2024 was SEK -15 million (43) and relates
to financial derivatives.
The fair value of the derivatives used to manage fixed interest rate periods
amounted to SEK 38 million (45) at 31 December 2024, which was recognised
in other comprehensive income as hedge accounting was applied. This value is
expected to be recognised in the income statement in 2025 and later.
Note 7. Tax
Group
Parent company
Taxes stated in the income
statement
2024
2023
2024
2023
Current tax
-416
-655
-301
-546
Deferred tax
-383
-353
0
0
Total
-798
-1 008
-302
-547
Recognised tax totalled SEK -798 million (-1 008), corresponding to 22 per cent
(21) of the profit/loss before tax.
Group
Parent company
2024
2023
2024
2023
Taxes stated in the income statement
SEKm
%
SEKm
%
SEKm
%
SEKm
%
Recognised profit/loss before tax
3 660
4 705
1 677
2 968
Tax at applicable rate
-754
20.6
-969
20.6
-346
20.6
-611
20.6
Difference in tax rate for foreign operations
-17
0.5
-9
0.2
-
-
Tax-exempt income
9
-0.3
9
-0.2
75
-4.5
83
-2.8
Non-tax-deductible costs
-10
0.3
-22
0.5
-6
0.3
-12
0.4
Standard interest on tax allocation reserve
-24
0.7
-16
0.3
-24
1.4
-16
0.5
Tax attributable to previous periods
-7
0.2
11
-0.2
-4
0.2
10
-0.3
Other
4
-0.1
-12
0.3
2
-0.1
0
0.0
Effective tax
-798
21.7
-1 008
21.4
-302
18.0
-547
18.4
Group
Parent company
Before
tax
Tax
After
tax
Before
tax
Tax
After
tax
Before
tax
Tax
After
tax
Before
tax
Tax
After
tax
Tax attributable to other
comprehensive income
2024
2023
2024
2023
Cash flow hedges
-501
103
-398
-3 549
731
-2 818
-503
104
-400
-3 429
706
-2 723
Translation difference on foreign
operations
181
-
181
55
-
55
-
-
-
-
-
-
Hedging of currency risk from foreign
operations
-127
26
-101
-42
9
-33
-
-
-
-
-
-
Revaluations of forest land
454
-93
360
3 493
-720
2 774
-
-
-
-
-
-
Revaluations of defined benefit
pension plans
-5
1
-4
-6
1
-5
-
-
-
-
-
-
Other comprehensive income
2
37
39
-48
22
-27
-503
104
-400
-3 429
706
-2 723
76 Holmen Annual Report 2024
Notes

Note 7
Group
Parent company
Taxes as stated in the balance sheet
2024
2023
2024
2023
Tax receivables
Deferred tax assets
3
3
-
-
Current tax assets
144
114
105
87
Total tax receivables
148
117
105
87
Deferred tax liabilities
Non-current assets
Biological assets
6 510
6 294
-
-
Forest land
5 360
5 272
602
601
Property, plant and equipment
1 293
1 210
4
3
Tax allocation reserve
1 028
932
-
-
Transactions subject to hedge accounting
-16
83
-16
84
Other, including deferred tax assets stated
net of deferred tax liabilities
77
68
-6
-4
Deferred tax liabilities
14 252
13 858
584
683
Current tax liabilities
97
105
-
-
Total tax liabilities
14 349
13 963
584
683
Change in the net amount of deferred tax assets and deferred tax liabilities
Group
Parent company
2024
Opening
balance
Stated
in the
income
statement
Recognised
directly in
equity
Translation
differences
and other
Closing
balance
Opening
balance
Stated in
the income
statement
Recognised
directly in
equity
Closing
balance
Biological assets
-6 294
-215
-
-
-6 510
-
-
-
0
Forest land
-5 272
5
-93
-
-5 360
-601
-1
-
-602
Property, plant and
equipment
-1 210
-66
-
-17
-1 293
-3
-1
-
-4
Tax allocation reserve
-932
-97
-
-
-1 028
-
-
-
0
Transactions subject to
hedge accounting
-83
0
99
-
16
-83
-
99
17
Other
-65
-10
1
0
-74
4
2
-
5
Deferred net tax
liability
-13 856
-382
6
-17
-14 249
-683
0
99
-584
Group
Parent company
2023
Opening
balance
Stated
in the
income
statement
Recognised
directly in
equity
Translation
differences
and other
Closing
balance
Opening
balance
Stated in
the income
statement
Recognised
directly in
equity
Closing
balance
Biological assets
-6 153
-142
-
-
-6 294
-
-
-
-
Forest land
-4 553
1
-720
0
-5 272
-601
0
-
-601
Property, plant and
equipment
-1 143
-68
-
1
-1 210
-2
0
-
-3
Tax allocation reserve
-850
-82
-
-
-932
-
-
-
-
Transactions subject to
hedge accounting
-789
-
706
-
-83
-789
-
706
-83
Other
0
-63
1
-3
-65
3
0
-
4
Deferred net tax
liability
-13 488
-353
-12
-3
-13 856
-1 389
0
706
-683
The Group’s deferred tax liability for forest land and biological assets amounts to
SEK 11 869 million (11 566) and is calculated based on the difference between
the book value of SEK 57 843 million (56 348) and taxable cost of SEK 225 mil-
lion (203). 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.
The deferred tax liability in respect of property, plant and equipment is primarily
attributable to depreciation/amortisation in excess of plan. Deferred tax assets
from leases in accordance with IFRS 16 total SEK 2 million net (1), of which SEK
47 million (51) of deferred tax assets and SEK -45 million (-50) of deferred tax
liabilities. Recognised directly in equity includes deferred tax mainly related to
a change in the value of forest land of SEK 93 million (-720) and a hedge reserve
of SEK -99 million (706).
The Swedish Tax Agency has rejected Holmen AB’s group relief claim relating to
tax losses from Spanish subsidiaries that were liquidated. Holmen has appealed
the decision. The deductions correspond to SEK 386 million of tax, but no
tax receivable has been recognised. There are no other significant loss carry-
forwards in the consolidated accounts.
The Group is covered by the OECD’s Pillar Two model rules and legislation has
been adopted in Sweden effective from 1 January 2024. According to Holmen’s
evaluation of the legislation, the Group should not need to pay additional tax
because of Pillar Two.
Holmen Annual Report 2024 77
Notes

Note 8. Earnings per share (EPS)
Group
2024
2023
Total number of outstanding shares,
1 January
159 222 355
162 001 678
Buy-backs of treasury shares during
the year
-1 554 163
-2 779 323
Total number of outstanding shares,
31 December
157 668 192
159 222 355
Shareholders’ share of profit/loss for
the year, SEK
2 861 454 499
3 697 317 688
Basic average number of shares
158 775 615
160 470 138
Basic EPS for the year, SEK
18.0
23.0
Shareholders’ share of profit/loss for
the year, SEK
2 861 454 499
3 697 317 688
Diluted average number of shares
158 775 615
160 470 138
Diluted EPS for the year, SEK
18.0
23.0
The AGM has decided on two outstanding share savings programmes. Together
they may lead to the allocation of 113 400 shares from Holmen’s own holding of
shares. This may result in marginal dilutive effects on key figures and earnings
per share. See Note 4 for more information about the share savings programmes.
The Board of Directors decided on 26 April to exercise the authorisation granted
by the 2024 AGM to acquire treasury shares linked to the future delivery of
shares under Holmen’s long-term share savings programmes. The Board of
Directors decided on 15 August to exercise its authorisation from the 2024 AGM
to buy back treasury shares. During the year, 1 554 163 class B shares were
repurchased for SEK 647 million, corresponding to an average price of SEK 416/
share. The buy-backs amount to 0.9 per cent of the total number of shares. When
combined with the shares that it already owned, this means that at 31 December
2024 Holmen held 3.0 per cent of the total number of shares.
Note 9. Forest land and biological assets
Holmen’s land holdings amount to 1 303 000 hectares, of which 1 160 000
hectares are classified as forest land according to international definitions.
1 045 000 hectares are classified as productive forest land.
The holdings are spread over five regions of Sweden.
Total land
holdings,
thousand ha
Productive
forest land,
thousand ha
Västerbotten
486
371
Västernorrland
329
273
Jämtland
194
146
Gävleborg
184
163
Uppsala and further
south
109
91
Total
1 303
1 045
Forest land is recognised at fair value calcu-
lated based on transaction prices for forest
properties in the counties where the Group
owns forest land, less the fair value of stand-
ing trees recognised as biological assets in
accordance with IAS 41 Biological Assets.
Only productive forest land is assigned a
value. Below, valuation based on transactions
in forest properties is described first, followed
by the valuation of biological assets.
Valuation based on transactions in forest properties
Prices for individual forest properties vary mainly due to geographical location
and the volume of standing timber. To address these differences, valuations
are based on the amounts paid in relation to the properties’ volume of standing
timber broken down by geographical area, mainly according to county. To obtain
a sufficiently large population, three years of aggregated transactions are used.
The calculation is carried out by aggregating valuations made based on:
- Price statistics published by market participants. Holmen uses the price statis-
tics together with the volume of standing timber for the productive forest land
to calculate the value of the productive forest land for each county.
- Detailed data on transactions in forest properties. Holmen uses the detailed
transaction data to calculate the value of the forest land per hectare using a
regression model based on the parameters location (county or part of a county),
volume of standing timber and site quality (i.e. the productive capacity of the
land) for the productive forest land. The calculation is carried out for each
forest property owned by Holmen and the figures are aggregated to obtain
a value for each county.
The method is considered to reflect market conditions at the reporting date and
has been applied consistently between years.
Price statistics and transaction data
The price statistics come from Ludvig & Co and Svefa, both of which are inde-
pendent of Holmen. They are expressed in SEK per m3 growing stock, solid over
bark of standing timber mainly broken down by county. Svefa processes the data
by excluding transactions involving less than 10 hectares and transactions that
may include other significant components besides forest land. Holmen does not
process the price statistics.
The detailed data on forest properties is based on transaction data that mainly
come from the government agency Lantmäteriet and is supplied by Infotrader,
which is independent of Holmen. Holmen processes the information by exclud-
ing transactions for which Infotrader believes there are other significant compo-
nents besides forest land and transactions involving less than 20 hectares.
Volume of standing timber
Data on Holmen’s volume of standing timber for each region valued are used
for valuations. The volume of standing timber is calculated based on the most
recent inventory, updated with the completed harvest and estimated growth
after the inventory date. The inventory is usually carried out every ten years and
last took place in 2019. The table below shows the volume of standing timber
measured in m3 growing stock, solid over bark per hectare in the inventories
carried out since 1988, and the calculated volume of standing timber at
31 December 2024.
Volume of standing
timber
1988
1993
2000
2010
2019
2024
m3 growing stock,
solid over bark per
hectare of productive
forest land
90
100
105
114
118
121
78 Holmen Annual Report 2024
Notes
Notes 8–9
Västerbotten
Västernorrland
Jämtland
Gävleborg
Uppsala
Stockholm
Östergötland
Södermanland
Kalmar

The table below shows Holmen’s volume of standing timber expressed in m3 growing stock, solid over bark, the site quality (i.e. the productive capacity of the land)
of the productive forest land and the age distribution by region.
Age distribution, %
Volume of standing timber,
million m3 growing stock,
solid over bark
Site quality,
m³/ha
0–20
21–40
41–60
61–80
81–100
101+
Västerbotten
38
4.0
29
25
14
18
7
8
Västernorrland
32
4.3
27
24
18
15
6
10
Jämtland
15
3.5
24
22
17
6
3
29
Gävleborg
26
6.2
28
24
26
13
2
7
Uppsala and further south
15
7.4
27
26
24
12
4
7
Total
127
4.6
27
24
18
14
5
11
Valuation as at 31 December 2024
The valuation based on transactions in forest properties amounted to SEK 57 843 million (56 348) at 31 December 2024, corresponding to SEK 55 thousand (54) per
hectare of productive forest land and SEK 456 per m3 growing stock, solid over bark (447) of standing timber on the productive forest land.
The valuation per county is shown in the table below. For Västerbotten, Jämtland and Västernorrland, price differences within counties have been taken into account to
the extent possible based on price statistics and detailed transaction data.
Holmen’s forests
Holmen’s book value
Market statistics**
2024
Total land
holdings,
thousand ha
Area of
productive
forest land,
thousand ha
Number of
properties
Average
size, ha per
property*
SEKm
SEK ’000/
ha*
SEK/m3
growing
stock, solid
over bark
Number of
transactions
Average
size, ha per
property*
Västerbotten
486
371
1 376
270
13 772
37
358
330
102
Västernorrland
329
273
620
440
13 945
51
429
102
87
Jämtland
194
146
357
410
6 105
42
401
194
170
Gävleborg
184
163
1 434
114
12 076
74
462
115
74
Uppsala and further
south
109
91
502
181
11 946
131
823
190
79
Total
1 303
1 045
4 289
244
57 843
55
456
931
106
Holmen’s forests
Holmen’s book value
Market statistics**
2023
Total land
holdings,
thousand ha
Area of
productive
forest land,
thousand ha
Number of
properties
Average
size, ha per
property*
SEKm
SEK ’000/
ha*
SEK/m3
growing
stock, solid
over bark
Number of
transactions
Average
size, ha per
property*
Västerbotten
489
371
1 378
270
13 048
35
346
309
102
Västernorrland
329
273
621
440
13 730
50
416
99
92
Jämtland
194
147
357
410
5 705
39
382
170
144
Gävleborg
184
164
1 432
114
12 064
74
465
134
76
Uppsala and further
south
108
91
501
181
11 802
130
818
168
86
Total
1 305
1 046
4 289
244
56 348
54
447
880
102
*Refers to productive forest land. **Refers to transactions forming the basis for the valuation based on detailed information about transactions in forest properties.
The chart below shows the change in the valuation, aggregated for each region,
since the method was first introduced in 2019.
The value per hectare varies between different parts of the country, the value of
forest properties in southern Sweden being significantly higher. This is partly due
to better site quality, a shorter harvest cycle and higher wood prices, but is also
due to the fact that demand for forest land is greater closer to densely populated
areas. The tables below show how the valuation per region has developed since
the transition to recognising forest land at fair value.
Valuation, SEK ’000/ha
2019
2020
2021
2022
2023
2024
Västerbotten
29
29
30
33
35
37
Västernorrland
32
33
39
45
50
51
Jämtland
25
26
28
34
39
42
Gävleborg
58
61
66
69
74
74
Uppsala and further
south
98
104
113
125
130
131
Valuation, SEK/m3 growing stock, solid over bark
2019
2020
2021
2022
2023
2024
Västerbotten
283
287
301
329
346
358
Västernorrland
278
286
328
373
416
429
Jämtland
266
273
289
345
382
401
Gävleborg
370
388
418
434
465
462
Uppsala and further
south
613
639
698
772
818
823
Book value, SEKm
Västerbotten
Västernorrland
Jämtland
Gävleborg
Uppsala and further south
0
20 000
40 000
60 000
2024
2023
2022
2021
2020
2019
Holmen Annual Report 2024 79
Notes
Note 9

Note 9. Forest land and biological assets, cont.
Sensitivity analysis
There has been low volatility in forest property prices over time, as illustrated in
the chart below showing annualised prices compiled by Ludvig & Co based on
transactions brokered themselves.
Price of forest properties, SEK/m3 growing stock,
solid over bark
Price development of forest properties, SEK/m3 growing
stock, solid over bark
Västerbotten
Västernorrland
Jämtland
Gävleborg
Uppsala and further south
Reference valuation
To verify Holmen’s own valuation, a valuation of parts of the forest holdings is
carried out each year by an external, independent valuation company. During
the period 2019–2023, the company Forum Fastighetsekonomi carried out the
external valuations and by the end of 2023 had valued all the forest holdings.
The external valuations exceeded Holmen’s own valuations by an average of 7
per cent. In 2024, the company Svefa carried out an external valuation of the
forest properties in Uppsala and further south, equal to 21 per cent of the book
value. The external valuation exceeded Holmen’s own valuation by 13 per cent
and took into account the size premium that is considered to exist for properties
exceeding 200 hectares. Without taking such a premium into account, the valua-
tion exceeded Holmen’s own valuation by 3 per cent. No size premium has been
taken into account in Holmen’s own valuation.
Biological assets
The value of standing trees was determined by calculating the present value
of expected future cash flows, less selling costs but before tax, from current
standing trees. Costs for replanting after harvesting were not included.
The standing trees are expected, on average, to be harvested when they reach
an age of 85 years. The volumes are based on the long-term harvesting plan
that was updated in 2020. The harvesting plan is based on the current forest
management programme. The plan takes into account existing forestry regula-
tions and projected future climate change. Under the plan, there should be an
average harvest of 2.8 million m3sub per year between 2020 and 2029, gradually
increasing to 3.9 million m3sub in 85 years, corresponding to an annual increase
of 0.4 per cent per year. In 2020–2024, the harvest averaged 2.8 million m3sub
per year. Compared with the 2000–2009 harvesting plan, the harvest under the
2020–2029 harvesting plan has increased by 12 per cent, corresponding to an
annual increase of 0.6 per cent. The annual harvest is expected to consist, on
average, of 48 per cent saw logs and 50 per cent pulpwood, with 2 per cent for
energy production.
Revenue is calculated based on an average price of SEK 603/m3sub, which is
an increase from SEK 555/m3sub the previous year as a result of continued price
increases for both pulpwood and logs. The price used is in line with historical
prices adjusted for inflation, but 20 per cent lower than the average price for
wood from own forests in 2024. The costs represent the current level adjusted
for temporary effects. Prices and costs are assumed to increase in line with
general inflation, which is estimated at 2 per cent per year in accordance with
the Riksbank’s inflation target.
The discount rate for the 2024 valuation is 4.75 per cent before tax, which is
an increase from 4.5 per cent as was used in the period 2019–2023. This rate
represents the estimated long-term cost of capital for investments in standing
trees. The rate is calculated based on the real yield requirement derived from
transactions in forest properties, the real interest rate applied when preparing
the harvesting plan and the interest rate used by other large forest-owning com-
panies in Sweden. When real interest rates were translated into nominal interest
rates, 2 per cent inflation was assumed in line with the Riksbank’s target.
The measurement of fair value is primarily dependent on price statistics and
transaction data collected from external parties and how large the volume of
standing timber is estimated to be. The table below shows how the value per
region is affected by changes in these parameters.
Price statistics and transaction data
SEKm
Västerbotten
5% (SEK 18/m3 growing stock, solid over bark)
690
Västernorrland
5% (SEK 21/m3 growing stock, solid over bark)
700
Jämtland
5% (SEK 20/m3 growing stock, solid over bark)
300
Gävleborg
5% (SEK 23/m3 growing stock, solid over bark)
600
Uppsala and
further south
5% (SEK 41/m3 growing stock, solid over bark)
600
Holmen’s volume of standing timber
SEKm
Västerbotten
1% (0.4 mil. m3 growing stock, solid over bark)
140
Västernorrland
1% (0.3 mil. m3 growing stock, solid over bark)
140
Jämtland
1% (0.2 mil. m3 growing stock, solid over bark)
60
Gävleborg
1% (0.3 mil. m3 growing stock, solid over bark)
120
Uppsala and
further south
1% (0.1 mil. m3 growing stock, solid over bark)
120
Transparency regarding forest property transactions is good in Sweden, creating
a favourable environment for market participants to publish market statistics
and create a basis for valuations based on detailed information about completed
transactions. As the valuations are based on a combination of price statistics
compiled by Ludvig & Co and Svefa, and detailed transaction data collected by
Infotrader, the risk of valuations being affected by data collection or processing
errors is reduced. The three methods yielded a value within +/- 1 per cent of the
weighted value at year-end 2024.
The volume of standing timber is based on sample inventories designed to provide
the most reliable information possible about this volume. The last inventory was
carried out in 2019 by an external party, with a mean error rate of 1.4 per cent
for Holmen’s total volume of standing timber. The volume of standing timber is
broken down by county based on information in the Group’s stand catalogue. The
change in the volume of standing timber after the inventory is based on harvest
data and the estimated growth on which the current harvesting plan is based.
As the valuations are based on three years of transactions, sufficiently large
populations are considered to be obtained in each geographical area to arrive at
reliable valuations and reduce the impact of individual transactions while reflect-
ing current market conditions. If valuations were based on transactions conclud-
ed over a shorter period of time, such as the past year, the quality and reliability
of the valuations is estimated be reduced due to the greater impact of individual
transactions and the small number of transactions in certain regions. The chart
below illustrates how the value for each region would have been calculated based
on one year of transactions. The total value of Holmen’s holdings in 2024 would
have amounted to SEK 438/m3 growing stock, solid over bark, which is 4 per cent
lower than the valuation on which the book value of the forest assets is based.
0
200
400
600
800
1 000
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
0
100
200
300
400
500
600
700
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
80 Holmen Annual Report 2024
Notes
Note 9

Holmen’s wood prices, SEK/m3sub
Sensitivity analysis
The table below shows how the value of biological assets would be affected by
changes in the most significant valuation assumptions.
SEKm
Annual change
+0.1% per year
Harvest rate
1 110
Price inflation
1 730
Cost inflation
-810
Change in level
+1%
Harvest
390
Prices
620
Costs
-310
Discount rate
+0.1%
-860
The 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 calcula-
tions. Change in level means that the level for each parameter and year is
changed. 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 fair value of forest land as at 31 December 2024 was SEK 26 243 million
(25 793), calculated based on transactions in forest properties, SEK 57 843
million (56 348) less the fair value of standing trees, SEK 31 600 million
(30 555). Of the change for the year, SEK 12 million (16) is due to the acquisition
of forest land and SEK -16 million (0) to the disposal of forest land. The remain-
der of the change, of SEK 454 million (3 493), consists of the unrealised change
in fair value and is recognised in other comprehensive income.
Sensitivity analysis
The valuation of forest land depends on the same parameters as the valuation
based on transactions in forest properties and the valuation of biological assets.
The value of forest land may reflect existing and possible future revenue streams
from the forest land, and the harvesting of future generations of trees, but there
are also actors who assign value to land that is not linked to its ability to generate
cash flows. Over the past five years, cash flow from land has amounted to
approximately SEK 200 million per year, the major sources of existing cash flow
being the sale of hydro power received in exchange for the use of waterfall rights
(‘replacement power’), revenue from leases and property development, and
leases linked to wind power. The portfolio of wind power projects is under devel-
opment and there are currently 30 projects at various stages of completion that
may generate revenue in the form of both sales of wind power licences and leases.
A market for voluntary carbon credits, including from forestry, is emerging and
could provide new revenue opportunities. The Group owns land close to densely
populated areas with expansion plans, such as Uppsala, and also has land
suitable for the construction of data centres. The value of harvests from future
generations of trees depends on the rate at which the trees grow and changes in
the price of wood. The reasonableness of the forest land’s book value is assessed
each year by estimating the present value of possible future cash flows from the
land holdings. This assessment of reasonableness has resulted in a wide range
of values that support the book value.
Real price
Nominal price
Price used in valuation (nominal)
Harvesting plan, ’000 m3sub/year
Harvest Thinning
Storms & other events *Projection
Valuation as at 31 December 2024
The valuation of biological assets at 31 December 2024 amounts to SEK 31 600
million (30 555), which is an increase of SEK 1 045 million (688). The value of
biological assets has been positively affected by investments in reforestation
of SEK 140 million (145) and the acquisition of forest land, with standing trees
valued at SEK 18 million (17), while sales of forest land reduced the value of
standing trees by SEK 20 million (36). The remaining change, of SEK 907 million
(562), is the net of the change resulting from harvesting and the unrealised
change in fair value and is stated net as the change in value of biological assets
in the income statement.
200
400
600
800
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
Biological assets
Forest land
Total forest land
and biological assets
SEKm
2024
2023
2024
2023
2024
2023
Book value at beginning of year
30 555
29 867
25 793
22 284
56 348
52 151
Acquisitions
18
17
12
16
30
33
Disposals
-20
-36
-16
0
-36
-36
Investment in reforestation
140
145
-
-
140
145
Change due to harvesting
-1 078
-977
-
-
-1 078
-977
Unrealised change in fair value
1 985
1 539
454
3 493
2 439
5 032
Book value at end of year
31 600
30 555
26 243
25 793
57 843
56 348
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2040-
2044*
2035-
2039*
2030-
2034*
2025-
2029*
2020-
2024
2015-
2019
2010-
2014
2005-
2009
Holmen Annual Report 2024 81
Notes
Note 9

Note 10. Non-current intangible assets
Group
Parent company
Goodwill
Other intangible
assets
Total
Non-current intangible
assets
2024
2023
2024
2023
2024
2023
2024
2023
Accumulated acquisition costs
Opening balance
358
358
438
392
797
750
66
67
Investments
-
-
1
46
1
46
-
-
Reclassifications
-
-
-
64
-
64
-
-
Disposal and retirement of assets
-
-
-4
-63
-4
-63
-
0
Translation differences
-
-
2
0
2
0
-
-
Total
358
358
437
438
796
797
66
66
Accumulated amortisation, depreciation and impairment
losses
Opening balance
-
-
283
323
283
323
58
58
Depreciation and amortisation for the year
-
-
16
9
16
9
-
1
Reclassifications
-
-
-
15
-
15
-
-
Disposal and retirement of assets
-
-
-4
-63
-4
-63
-
0
Translation differences
-
-
2
0
2
0
-
-
Total
-
-
298
283
298
283
58
58
Residual value according to plan at end of year
358
358
140
155
498
513
8
8
The goodwill recognised is attributable to the Wood Products business area, and was added when Martinsons was acquired in 2020. 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 selling prices, costs and volumes for the coming year. When calculating cash flows for subsequent periods, prices
and costs are used based on historical data. Changing conditions due to climate change are not expected to have a significant impact. 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 IT systems, amounting to SEK 78 million (89), and the value of the right of use relating to certain energy assets, amounting to
SEK 54 million (58). The assets are mainly externally acquired and all the assets, with the exception of goodwill, have a definable useful life.
Note 11. Property, plant and equipment
Buildings,
other land* and
land installations
Machinery and
equipment
Work in progress and
advance payments to
suppliers
Total
Group
2024
2023
2024
2023
2024
2023
2024
2023
Accumulated acquisition costs
Opening balance
7 022
6 845
33 963
32 839
359
381
41 344
40 065
Investments
134
155
1 233
1 084
664
256
2 031
1 494
Reclassifications
13
17
227
284
-240
-269
-
32
Disposal and retirement of assets
-3
-5
- 1 031
-308
-
-17
-1 034
-330
Translation differences
54
10
429
64
2
7
484
82
Total
7 219
7 022
34 821
33 963
784
359
42 825
41 344
Accumulated amortisation, depreciation and
impairment losses
Opening balance
4 376
4 234
26 638
25 706
-
-
31 014
29 940
Depreciation and amortisation according to plan for
the year
141
138
1 103
1 098
-
-
1 244
1 236
Reclassifications
-
2
-
79
-
-
-
81
Disposal and retirement of assets
-3
-5
-1 025
-298
-
-
-1 028
-304
Translation differences
41
7
323
53
-
-
364
60
Total
4 555
4 376
27 039
26 638
-
-
31 594
31 014
Residual value according to plan at end of year
2 665
2 646
7 782
7 325
784
359
11 231
10 330
*Other land refers to land other than forest land.
The solid fuel boiler at Braviken Paper Mill has been damaged following a fire at the end of 2024. The incident is believed to be covered by insurance. The remaining
book value has been written off and options are being explored for how the solid fuel boiler can be restored to operation.
82 Holmen Annual Report 2024
Notes
Notes 10–11

Forest land
Buildings,
other land* and
land installations
Machinery and
equipment
Work in progress and
advance payments to
suppliers
Total
Parent company
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Accumulated acquisition costs
Opening balance
502
499
228
215
407
332
4
9
1 141
1 055
Investments
12
3
4
6
42
65
11
4
68
78
Reclassifications
-
-
2
7
-
32
-2
-7
0
32
Disposal and retirement of assets
0
0
0
0
-40
-22
-
-2
-40
-25
Total
514
502
234
228
408
407
13
4
1 169
1 141
Accumulated depreciation and
amortisation according to plan
Opening balance
-
-
153
148
273
210
-
-
426
357
Depreciation and amortisation according
to plan for the year
-
-
6
5
54
54
-
-
60
59
Reclassifications
-
-
-
-
-
32
-
-
-
32
Disposal and retirement of assets
-
-
-
0
-40
-22
-
-
-40
-22
Total
-
-
159
153
286
273
-
-
445
426
Accumulated revaluations
Opening balance
2 382
2 388
1
1
-
-
-
-
2 382
2 388
Disposal and retirement of assets
0
-6
-
-
-
-
-
-
0
-6
Total
2 382
2 382
1
1
-
-
-
-
2 382
2 382
Residual value according to plan
at end of year
2 896
2 884
76
76
122
134
13
4
3 106
3 098
*Other land refers to land other than forest land.
For forest assets in the Group see Note 9. In 2024, capitalised borrowing costs totalled SEK 19 million (3). An interest rate of 2.6 per cent (1.5) was used to determine
the amount.
Note 12. Right-of-use assets (leases)
Buildings
Machinery and equipment
Total
Group
2024
2023
2024
2023
2024
2023
Accumulated acquisition costs
Value at beginning of year
283
257
223
172
506
429
Additional leases
36
33
73
84
108
117
Completed leases
-40
-7
-94
-33
-134
-40
Total
278
283
202
223
480
506
Accumulated depreciation and amortisation
Value at beginning of year
140
96
122
91
262
187
Depreciation and amortisation for the year
59
51
69
64
128
115
Completed leases
-40
-7
-90
-33
-131
-40
Total
158
140
102
122
260
262
Value at end of year
120
143
100
101
220
244
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
2024
2023
Depreciation and amortisation
128
115
Interest expenses
7
7
Costs related to current lease liabilities
3
3
Costs related to low-value leases
2
2
Costs related to variable lease payments
0
0
Total
140
127
In 2024, the Group’s payments attributable to leases amounted to SEK 140 mil-
lion (127). 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 low-value underlying assets.
See Note 14 for a maturity analysis of liabilities relating to right-of-use assets.
Holmen Annual Report 2024 83
Notes
Notes 11–12

Note 13. Investments in associates and other shares and participations
Group
Profit from associates
2024
2023
Recognised in profit/loss for the year
7
6
Total comprehensive income
7
6

Group
Parent company
Associates
2024
2023
2024
2023
Book value at beginning of year
1 686
1 680
93
93
Investments
8
0
-
-
Share of earnings
7
6
-
-
Translation difference
-
-
-
-
Disposals
-
-
-
-
Book value at end of year
1 701
1 686
93
93
Parent company and Group holdings of shares and investments in associates
Value of
holding
in the
consolidated
accounts**
Book value
in the
parent
company’s
accounts
Holding
%*
Value of
holding
in the
consolidated
accounts**
Book value
in the
parent
company’s
accounts
Corporate ID No.
Registered
office
Number
of shares
Holding
%*
Associates
2024
2023
Harrsele AB
556036-9398
Vännäs
9 886
49.4
1 534
-
49.4
1 527
-
Vattenfall Tuggen AB
556504-2826
Lycksele
683
6.8
90
90
6.8
90
90
Brännälvens Kraft AB
556017-6678
Arbrå
5 556
13.9
45
-
13.9
36
-
Gidekraft AB
556016-0953
Örnsköldsvik
990
9.9
0
0
9.9
0
0
Uni4 Marketing AB
556594-6984
Stockholm
2 050
41.0
22
3
41.0
21
3
Rebio AB
556594-3015
Umeå
2 014
40.3
10
1
40.3
10
1
Other associates
1
-
1
-
Total
1 701
93
1 686
93
*The holdings correspond to the percentage of votes for the total number of shares held.
**Proportion of equity recognised in the Renewable Energy and Wood Products business areas of SEK 1 668 million (1 654) and SEK 33 million (32) respectively.
The interests 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, which means that 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 1 534
million (1 527). Holmen purchased 472 GWh (451) of electrical power from
Harrsele AB in 2024, giving Holmen an operating profit of SEK 166 million (319)
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 188 million (176). The company’s shareholders made a shareholders’
contribution during the year of SEK 0 million (0).
Ownership of the 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 a significant influence over each company’s
activities.
Group
Parent company
Other shares and participations
2024
2023
2024
2023
Book value at beginning of year
5
2
4
0
Investments
1
4
1
4
Disposals
-
-
-
-
Translation difference
0
0
-
-
Book value at end of year
6
5
5
4
Notes
84 Holmen Annual Report 2024
Note 13

Note 14. Financial instruments
Non-current financial receivables consist of interest-bearing financial receiva-
bles from other companies, prepayments for credit facilities and the fair value of
non-current derivatives.
Fixed income investments and lending with maturities of up to one year, accrued
interest income, unrealised exchange gains and the fair value of derivatives are
recognised in current financial receivables. Current financial receivables essen-
tially 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 of a known amount and have maturities of no
more than three months from their acquisition date, which also means that their
interest rate risk is negligible. Cash is placed in bank accounts or with banks as
current deposits.
Loans, accrued interest expenses, unrealised exchange losses and the fair value
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 pension obligations (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 52–53. SEK 953 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
entail a right for Holmen to offset assets and liabilities relating to the same
counterparty in the case of a credit event. Based on the terms of the netting
agreements, the net exposure is SEK -150 million (380). Assets and liabilities
are not offset in the report. Recognised derivatives totalled SEK 427 million
(941) on the asset side and SEK -578 million (561) on the liability side.
The ongoing Interest Rate Benchmark Reforms only have a marginal impact
on Holmen, since interest derivatives are almost exclusively denominated at
the Swedish reference rate. For currencies for which a reform of the interest rate
benchmark is under way, continued hedge accounting will apply while the reform is
in progress. These hedges are expected to also be effective in the future, however.
No provision has been made for expected credit losses for the financial assets in-
cluded in the net liability, as no losses have arisen over the past 10 years and the
assets held at the balance sheet date are deemed to have a good credit quality.
See Note 16 for information about the 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 discount-
ed cash flows. When discounted cash flows are calculated, the variables used
for the calculations, such as discount rates and exchange rates, are taken from
market quotations where possible. When such calculations are made, the mean
exchange rates and discount rates are used. These valuations belong to measure
ment level 2. Other valuations, for which a variable is based on own assess-
ments, belong to measurement level 3. Currency options are valued using the
Black & Scholes formula, where appropriate. Holmen uses measurement level 2
when valuing financial instruments, in accordance with IFRS 13.
Fair value in the tables is calculated on the basis of discounted cash flows and all
the variables, such as discount rates and exchange rates, are taken from market
quotations. Fair value may differ from the book value 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
regarding Holmen’s hedge accounting, see the section on risk on pages 52–53
and Note 6.
Group
Maturity structure,
undiscounted amounts
2025
2026
2027
2028
2029-
Financial liabilities
Derivatives
-26
-
-
-
-
Derivatives attributable
to working capital
-404
-138
-29
-
-
Trade payables
-3 808
-
-
-
-
Liabilities relating to
right-of-use assets*
-98
-71
-38
-22
-9
Other financial liabilities
-1 028
-589
-562
-551
-1 028
Financial receivables
Derivatives
41
17
-3
4
-1
Derivatives attributable
to working capital
274
109
10
-
-
Trade receivables
2 823
-
-
-
-
Other financial
receivables
240
5
5
5
5
*Liabilities relating to right-of-use assets are not classified as financial instru-
ments under IFRS 9.
Parent company
Maturity structure,
undiscounted amounts
2025
2026
2027
2028
2029-
Financial liabilities
Derivatives
-26
-
-
-
-
Derivatives attributable
to working capital
-407
-138
-29
-
-
Trade payables
-3 586
-
-
-
-
Other financial liabilities
-1 028
-1 330
-562
-551
-1 026
Financial receivables
Derivatives
41
17
-3
4
-1
Derivatives attributable
to working capital
275
109
10
-
-
Trade receivables
2 336
-
-
-
-
Other financial
receivables
186
4 325
4
4
4
Holmen Annual Report 2024 85
Notes
Note 14

Note 14. Financial instruments, cont.
Group
Financial instruments included
in net financial debt
Recognised at fair
value through
profit/loss*
Hedging instruments
Recognised at
amortised cost
Total
book value
Fair value
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Non-current financial receivables
Derivatives
-
-
34
45
-
-
34
45
34
45
Other financial receivables
-
-
-
-
12
16
12
16
12
16
-
-
34
45
12
16
46
61
46
61
Current financial receivables
Accrued interest
-
-
-
-
-
2
-
2
-
2
Derivatives
1
1
8
43
-
-
10
43
10
43
Other financial receivables
-
-
-
-
6
5
6
5
6
5
1
1
8
43
6
7
16
50
16
50
Cash and cash equivalents
Cash and cash equivalents
-
-
-
-
234
1 202
234
1 202
234
1 202
-
-
-
-
234
1 202
234
1 202
234
1 202
Non-current liabilities
Bonds
-
-
-
-
-2 500
-1 900
-2 500
-1 900
-2 534
-1 900
Derivatives
-
-
-
-
-
-
-
-
-
-
Other non-current liabilities
-
-
-
-
-2
-2
-2
-2
-2
-2
-
-
-
-
-2 502
-1 902
-2 502
-1 902
-2 536
-1 902
Current liabilities
Certificate programme
-
-
-
-
-
-
-
-
-
-
Derivatives
-2
-3
-19
-
-
-
-21
-3
-21
-3
Accrued interest
-
-
-
-
-22
-18
-22
-18
-22
-18
Other current liabilities
-
-
-
-
-911
-1 000
-911
-1 000
-904
-1 000
-2
-3
-19
-
-932
-1 018
-953
-1 021
-947
-1 021
Financial instruments not included
in net financial debt
Other shares and participations
6
5
-
-
-
-
6
5
6
5
Trade receivables
-
-
-
-
2 823
2 696
2 823
2 696
2 823
2 696
Derivatives (recognised in operating
receivables)
15
61
370
791
-
-
384
852
384
852
Trade payables
-
-
-
-
-3 808
-3 394
-3 808
-3 394
-3 808
-3 394
Derivatives (recognised in operating
liabilities)
-72
-124
-485
-434
-
-
-557
-558
-557
-558
-51
-58
-115
358
-985
-698
-1 151
-398
-1 151
-398
Total financial instruments
-52
-60
-93
446
-4 167
-2 394
-4 311
-2 008
-4 338
-2 008

*Refers to instruments that must be measured at fair value in accordance with IFRS 9.
Notes
86 Holmen Annual Report 2024
Note 14

Parent company
Financial instruments included
in net financial debt
Recognised at fair
value through
profit/loss*
Hedging instruments
Recognised at
amortised cost
Total
book value
Fair value
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Non-current financial receivables
Derivatives
-
-
34
45
-
-
34
45
34
45
Receivables in respect of Group
companies
-
-
-
-
4 321
3 751
4 321
3 751
4 321
3 751
Other financial receivables
-
-
-
-
10
13
10
13
10
13
-
-
34
45
4 331
3 764
4 365
3 809
4 365
3 809
Current financial receivables
Accrued interest
-
-
-
-
-
2
-
2
-
2
Derivatives
5
43
5
-
-
-
10
43
10
43
Other financial receivables
-
-
-
-
6
5
6
5
6
5
5
43
5
-
6
7
16
50
16
50
Cash and cash equivalents
Cash and cash equivalents
-
-
-
-
180
1 092
180
1 092
180
1 092
-
-
180
1 092
180
1 092
180
1 092
Non-current liabilities
Bonds
-
-
-
-
-2 500
-1 900
-2 500
-1 900
-2 534
-1 900
Liabilities in respect of Group
companies
-
-
-
-
-741
-784
741
-784
-741
-784
Derivatives
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-3 241
-2 684
-3 241
-2 684
-3 275
-2 684
Current liabilities
Certificate programme
-
-
-
-
-
-
-
-
-
-
Derivatives
-21
-3
-
-
-
-
-21
-3
-21
-3
Accrued interest
-
-
-
-
-22
-18
-22
-18
-22
-18
Other current liabilities
-
-
-
-
-911
-1 000
-911
-1 000
-904
-1 000
-21
-3
-
-
-932
-1 018
-953
-1 021
-947
-1 021
Financial instruments not included
in net financial debt
Other shares and participations
5
4
-
-
-
-
5
4
5
4
Trade receivables
-
-
-
-
2 336
2 226
2 336
2 226
2 336
2 226
Derivatives (recognised in operating
receivables)
15
67
371
794
-
-
385
861
385
861
Trade payables
-
-
-
-
-3 586
-3 196
-3 586
-3 196
-3 586
-3 196
Derivatives (recognised in operating
liabilities)
-80
-106
-486
-434
-
-
-566
-539
-566
-539
-60
-35
-115
360
-1 250
-970
-1 426
-644
-1 426
-644
Total financial instruments
-76
6
-77
406
-906
190
-1 059
601
-1 087
601

*Refers to instruments that must be measured at fair value in accordance with IFRS 9.
Holmen Annual Report 2024 87
Notes
Note 14

Note 15. Inventories
Group
Parent company
2024
2023
2024
2023
Felling rights
1 298
982
1 298
982
Logs and pulpwood
576
414
530
388
Raw materials and consumables
1 198
1 119
833
834
Finished products and work in
progress
2 625
2 296
2 059
1 822
Electricity certificates and
emission allowances
0
27
0
27
Total
5 697
4 837
4 720
4 054

During the year, impairment losses and reversals of previous impairment losses
for finished stock had an effect of SEK +6 million (-5) on Group profit, while
impairment losses on other stock had an effect of SEK -3 million (-4). Impair-
ment losses and reversals of previous impairment losses for finished stock had
an effect of SEK +24 million (-5) on the parent company, with impairment losses
on other stock of SEK -2 million (-4).
31 Dec 2023
Registered share capital
Number of
shares
Quotient
value
SEKm
Class A
45 246 468
26
1 180
Class B
117 265 856
26
3 058
Total no. of shares
162 512 324
4 238
Holding of repurchased class
B shares
-3 289 969
Total number of outstanding
shares
159 222 355

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 1 vote.
Otherwise, there are no restrictions between classes of shares.
At 31 December 2024, the Group’s own shareholding was 4 844 132 shares
(3 289 969). In 2024, 1 554 163 shares were repurchased for SEK 647 million,
corresponding to an average price of SEK 416 per share. The buy-backs amount
to 0.9 per cent of the total number of shares. The company already owned 2.1
per cent of its own shares, meaning that at 31 December 2024 Holmen held 3.0
per cent of the total number of shares.
Assets and liabilities measured at fair value in accordance with Chapter 4, § 14a
of the Swedish Annual Accounts Act had an impact of SEK -153 million (412)
on the parent company’s equity. In the consolidated accounts, the valuation of
derivatives and other financial instruments had an impact of SEK -144 million
(386) 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 6 057 619 489. The Board proposes to the AGM, to be held on 31 March
2025, that it approve a total dividend of SEK 12.0 per share. The proposed
dividend totals SEK 1 892 million. The Board also proposes that the remaining
amount of SEK 4 165 601 185 be carried forward.
The preceding year, the dividend paid was a total of SEK 11.50 per share
(SEK 1 831 million).
Net financial debt as a percentage of equity was 6 per cent (3).
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 49–53.
Note 16. Operating receivables
Group
Parent company
2024
2023
2024
2023
Trade receivables
Group companies
-
-
45
50
Associates
55
68
55
68
Other
2 768
2 628
2 235
2 108
Total trade receivables
2 823
2 696
2 336
2 226
Current receivables
349
434
251
333
Derivatives
384
852
385
861
Prepayments and accrued income
353
344
158
198
Total other operating receivables
1 085
1 630
795
1 392
Total operating receivables
3 909
4 326
3 131
3 618

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 relating to 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 0 million (0). The
provision for expected credit losses was SEK 30 million (30). During the year, the
provision decreased by SEK -4 million (-3) as a result of actual credit losses, and
increased by SEK 5 million (4) as a result of changes in the provision for antici-
pated or expected credit losses. At 31 December 2024, SEK 75 million (56) 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.
Note 18. Pension obligations
Holmen provides defined benefit pension plans to some office-based
employees in Sweden. Most of these obligations 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. There are some defined
benefit obligations in addition to the ITP plan for Group management, which
are secured by means of a pension fund. The occupational pensions for other
office-based employees and all employees covered by collective agreements in
Sweden are all 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.
Group
Parent company
Cost recognised in profit/loss
for the year
2024
2023
2024
2023
Defined benefit plans
Personnel costs
-6
-5
-12
6
Financial income and costs
12
14
0
0
Total defined benefit plans stated
in profit/loss for the year
6
9
-12
6
Defined contribution plans
Personnel costs
-210
-197
-173
-160
Total recognised in profit/loss
for the year
-204
-188
-184
-154
Note 17. Equity, parent company
31 Dec 2024
Registered share capital
Number of
shares
Quotient
value
SEKm
Class A
45 246 468
26
1 180
Class B
117 265 856
26
3 058
Total no. of shares
162 512 324
4 238
Holding of repurchased class
B shares
-4 844 132
Total number of outstanding
shares
157 668 192
Notes
88 Holmen Annual Report 2024
Notes 15–18

Group
Cost recognised in other comprehensive income
2024
2023
Return on plan assets
excl. recognised interest income
-134
47
Actuarial gains and losses from
changes in demographic assumptions
19
-42
Actuarial gains and losses from
changes in financial assumptions
131
-51
Actuarial gains and losses from experiential
adjustments
-23
-19
Payroll tax
-2
0
Effect of asset ceiling
4
59
Total recognised in other comprehensive income
-5
-6
Group
Parent company
Obligations
2024
2023
2024
2023
Obligations at 1 January
-1 581
-1 471
-179
-175
Current service cost
-6
-5
-20
-14
Payroll tax
0
-3
-
-
Interest expenses
-70
-71
0
0
Actuarial gains/losses
128
-112
-
-
Benefits paid
105
100
12
13
Exchange differences
-114
-20
-
-
Obligations at 31 December
-1 539
-1 581
-185
-176
Plan assets
Fair value of assets at 1 January
1 809
1 753
175
161
Recognised interest income
82
85
0
-
Expected return excl. recognised
interest income
-134
47
-
-
Real return (parent company)
-
-
10
20
Administrative expenses
-15
-10
-
-
Amounts paid in and paid out by
employer
12
6
0
-7
Benefits paid
-105
-100
-
-
Exchange differences
133
27
-
-
Fair value of assets at
31 December
1 782
1 809
185
175
Effect of asset ceiling
-252
-237
-
-
Pension obligations, net
-9
-9
0
-1
The change in defined benefit obligations and the change in plan assets are set
out in the table above. 89 per cent of the obligations relate to pension schemes
in the UK. The obligations arising out of pension plans in the UK have been placed
in two trusts. These are governed by boards consisting of representatives of
Holmen and the beneficiaries. Holmen’s UK subsidiaries have commitments
to cover any shortfalls. In 2022, the trusts entered into an agreement with a life
insurance company according to which, in exchange for a one-time payment, the
trusts will be compensated for all their future pension payments and the life
insurance company therefore assumes the risk of future changes in pension
payments as a result of changes in inflation, mortality rates, and so on. In both
trusts, the assets exceed the obligations, but no surplus may be included in the
accounts. This adjustment is referred to as an asset ceiling in the tables.
The weighted average duration is 10 years.
Of the Group’s total obligations, SEK 9 million (9) are unfunded obligations,
while the rest are wholly or partially funded obligations. Of the parent company’s
obligations, SEK 0 million (1) are secured in accordance with the Swedish Pension
Obligations Vesting Act.
The plan assets by type are as shown below:
Group
Parent company
Plan assets
2024
2023
2024
2023
Equities
80
79
80
79
Bonds and bank account balances
420
406
105
96
Life insurance company
receivables
1 282
1 323
-
-
1 782
1 809
185
175
The plan assets do not include any financial instruments issued by Group
companies or assets used by the Group. Most of the assets in the UK trustees
are receivables relating to the life insurance agreement. Of the shares, 100 per
cent are Swedish shares, and of the bonds, 73 per cent are government bonds
and 27 per cent corporate bonds.
UK
Key actuarial assumptions, Group
(weighted average)
31 Dec 2024
31 Dec 2023
Discount rate, %
5.5
4.6
Rate of salary increase, %
-
-
Rate of price inflation, %
2.7
2.7
Life expectancy after 65
for men/women, years
21/24
21/24
Life expectancy table
SAPS S3PA
SAPS S3PA
Sweden
Key actuarial assumptions, Group
31 Dec 2024
31 Dec 2023
Discount rate, %
3.3
3.3
Rate of salary increase, %
3.0
3.0
Rate of price inflation, %
2.0
2.0
Life expectancy after 65
for men/women, years
22/24
22/24
Life expectancy table
DUS23
DUS23
The discount rate for pension obligations was determined based on high-quality
corporate bonds in the currency and country of the obligations, i.e. mainly the
UK. A discount rate of 0.5 per cent (1.0) 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 obligations would be affected in the event of
a change in key actuarial assumptions (- reduces debt, + increases debt).
Group
Sensitivity analysis
31 Dec 2024
31 Dec 2023
Discount rate (+0.5%)
-69
-79
Rate of salary increase (+0.5%)
1
1
Rate of price inflation (+0.5%)
53
58
Mortality (+1 year of life expectancy)
71
69
The Group’s payments into the funded defined benefit plans in 2025 are
expected to amount to SEK 0 million.
Multi-employer plans
The premiums for the year for pension insurance policies taken out under
Alecta’s ITP 2 plan amounted to SEK 26 million (23) and are included in personnel
costs in the income statement. The active members of the plan at Holmen
amounted to 597 people, which corresponds to 0.17 per cent of the plan’s active
members. Alecta’s surplus may be allocated to policyholders and/or the people
insured. If Alecta’s collective consolidation level falls below 125 per cent or
exceeds 150 per cent, measures will be taken to create the conditions to ensure
that the consolidation level returns to a normal range. In the event of low consol-
idation, one measure may be to raise the agreed price for new policy subscrip-
tions 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 2024,
Alecta’s collective consolidation level was 162 per cent (157) and Alecta has
decided to introduce a premium reduction for 2025. The expected premiums
payable to Alecta in 2025 amount to SEK 22 million, taking the premium
reduction into account.
Holmen Annual Report 2024 89
Notes
Note 18

Note 19. Provisions
Group
2024
2023
Book value at beginning of year
449
441
Provisions during the year
32
20
Amount utilised during the year
-46
-27
Unutilised amount reversed during the year
-1
-5
Reclassification
-
20
Translation differences
0
0
Book value at end of year
433
449
Of which total non-current portion of the provisions
389
418
Of which total current portion of the provisions
45
31
Parent company
Book value at beginning of year
623
609
Provisions during the year
179
160
Amount utilised during the year
-164
-145
Unutilised amount reversed during the year
-
-
Book value at end of year
630
623
Of which total non-current portion of the provisions
460
453
Of which total current portion of the provisions
170
170
Provisions mainly relate to obligations to restore the environment at discontin-
ued material sites. SEK 85 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
Group
Parent company
2024
2023
2024
2023
Trade payables
Group companies
-
-
49
14
Other
3 808
3 394
3 537
3 182
Total trade payables
3 808
3 394
3 586
3 196
Current liabilities
Associates
11
4
11
4
Other
345
278
263
235
Derivatives
557
558
566
539
Accruals and deferred income
982
968
769
792
Total other operating liabilities
1 895
1 808
1 609
1 570
Total operating liabilities
5 703
5 202
5 195
4 766
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 391 million (395), discounts of SEK 92 million (88)
and goods and services delivered but not yet invoiced of SEK 50 million (77).
The fair values of derivatives relate to hedges of future cash flows. See Note 14.
Note 21. Related parties
Of the parent company’s net sales of SEK 20 393 million (20 234), SEK 370 mil-
lion (333) relate to deliveries of goods to Group companies. The parent compa-
ny’s purchases of goods from Group companies amounted to SEK 236 million
(74). Parent company net sales also include income from the sale of silviculture
services to subsidiaries for an amount of SEK 570 million (528). SEK 2 746 mil-
lion (2 561) of expenses for the leasing of non-current assets from subsidiaries
are recognised in the parent company’s accounts.
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 22.
L E Lundbergföretagen AB is a major shareholder in Holmen (see pages 54–55).
Holmen rents office premises for SEK 9 million (8) from Fastighets AB L E Lund-
berg, which is a Group company within L E Lundbergföretagen AB. In 2024,
Fredrik Lundberg, who is CEO of and principal shareholder in L E Lundberg
företagen, received a fee of SEK 860 000 (820 000) as Chairman of Holmen’s
Board. Louise Lindh, who is Chairwoman of the Board of Fastighets AB L E Lund-
berg and who is also a party related to Fredrik Lundberg, received a Board fee
of SEK 430 000 (410 000).
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 line with 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
Sale of goods
to related parties
Purchase of goods
from related parties
Other (e.g. interest,
dividend)
Liabilities in respect of
related parties
Receivables
in respect of
related parties
Group
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Associates
565
704
60
63
2
2
11
4
65
78
Parent company
Subsidiaries
370
333
236
74
496
463
797
799
4 368
3 804
Associates
565
704
60
63
2
2
11
4
65
78
See Note 4 for remuneration paid to members of the Board.
Note 22. Investments in Group companies
Parent company
Accumulated acquisition costs
2024
2023
Value at beginning of year
13 155
13 054
Shareholder contributions and investments
0
100
Disposals
-
-
Liquidations
-1
-
Total
13 154
13 155
Accumulated impairment losses
Value at beginning of year
1 357
1 357
Impairment losses for the year
-
-
Total
1 357
1 357
Book value at end of year
11 797
11 798
The parent company’s impairment losses on investments in Group companies
are stated in the income statement in ‘Profit/loss from investments in Group
companies’.
90 Holmen Annual Report 2024
Notes
Notes 19–22

Corporate ID No.
Registered office
No. of
shares
Holding %1)
Book value
in the parent
company’s
accounts
Holding %1)
Book value
in the parent
company’s
accounts
Parent company’s direct holdings
of investments in subsidiaries
2024
2023
Holmen Skog AB
556220-0658
Örnsköldsvik
1 000
100
0
100
0
Holmen Wood Products AB
556099-0672
Hudiksvall
1 000
100
0
100
0
Holmen Paper AB3)
556005-6383
Norrköping
100
100
0
100
0
Holmen Iggesund Paperboard AB3)
556088-5294
Hudiksvall
1 000
100
0
100
0
Holmen Energi AB
556524-8456
Örnsköldsvik
1 000
100
0
100
0
Holmen Skog Mitt AB
559165-6623
Stockholm
1 000
100
2 856
100
2 856
Holmen Skog Syd AB
559165-6631
Stockholm
1 000
100
1 527
100
1 527
Martinsons Skogsfastigheter AB
556738-2154
Stockholm
1 000
100
70
100
70
Terminalen i Bastuträsk AB
556591-5898
Stockholm
1 000
100
18
100
18
Holmen Sågverk AB
559165-6672
Stockholm
1 000
100
422
100
422
Martinsons Såg AB
556218-2856
Skellefteå
50 000
100
831
100
831
Holmens Bruk AB
559165-6615
Stockholm
1 000
100
383
100
383
Iggesunds Bruk AB
559165-6656
Stockholm
1 000
100
740
100
740
Holmen Vattenkraft AB
559165-6664
Stockholm
1 000
100
2 663
100
2 663
Ljusnan Vattenkraft AB
559165-6680
Stockholm
1 000
100
276
100
276
Blåbergsliden Vind AB
559138-5181
Stockholm
500
100
200
100
200
Varsvik AB
556914-9833
Stockholm
500
100
263
100
263
Other Swedish Group companies
2
2
Total Swedish holdings
10 253
10 253
Holmen UK Ltd, UK
Workington
1 197 100
100
1 519
100
1 519
Holmen Paper Ltd2)
London
-
100
-
100
-
Holmen Iggesund Paperboard (Workington) Ltd2),4)
Workington
-
100
-
100
-
Holmen France S.A.S., France
Paris
10 000
100
0
100
0
Holmen GmbH, Germany
Hamburg
-
100
1
100
1
Holmen Paper S.A., Spain
Madrid
60 000
100
1
100
1
Holmen Singapore Pte Ltd, Singapore
Singapore
800 000
100
4
100
4
Iggesund Paperboard Inc, US5)
Lyndhurst
1 000
100
7
100
7
Holmen Hongkong Ltd, China
Hong Kong
4 000 000
100
5
100
5
Holmen B.V., Netherlands
Amsterdam
35
100
7
100
7
AS Holmen Mets, Estonia
Tallinn
500
100
0
100
0
Other non-Swedish Group companies
1
2
Total non-Swedish holdings
1 544
1 545
Total
11 797
11 798
1) The holdings correspond to the percentage of votes for the total number of shares held. 2) Indirect holdings. 3) In 2025, Holmen Paper AB was absorbed by Iggesund
Paperboard AB through a merger and renamed Holmen Board and Paper AB. 4) Renamed Holmen Board and Paper Ltd in 2025. 5) Renamed Holmen Inc in 2025.
Note 23. Untaxed reserves
Parent company
Untaxed reserves
31 Dec 2023
Appropriations
31 Dec 2024
Accumulated depreciation and
amortisation in excess of plan
Non-current
intangible assets
0
0
0
Property, plant and
equipment
16
-4
12
16
-4
12
Tax allocation reserves
2019 fiscal year
700
700
2020 fiscal year
700
700
2021 fiscal year
680
680
2022 fiscal year
1 488
1 488
2023 fiscal year
900
900
2024 fiscal year
-
470
470
4 468
470
4 938
Total
4 484
466
4 950
Group contributions received amounted to SEK 921 million (988) and Group
contributions paid amounted to SEK -89 million (-367). Total appropriations
amounted to SEK 366 million (190).
Note 24. Collateral and contingent liabilities
Group
Parent company
Contingent liabilities
2024
2023
2024
2023
Guarantees on behalf of Group
companies
-
158
114
Other contingent liabilities
68
41
68
41
Total
68
41
227
155
Other contingent liabilities for the Group largely comprise guarantee undertak-
ings for third parties. Holmen has environment-related contingent liabilities that
cannot currently be quantified but could result in future costs. Under Swedish
law, Holmen has strictly unlimited liability for harm caused to third parties by
dam failures. Holmen has liability insurance for such harm.
Holmen Annual Report 2024 91
Notes
Notes 22–24

Note 25. Cash flow statement
Note 26. 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 land and biological assets
The Group’s forest land is recognised at a fair value of SEK 26 243 million
(25 793) based on transaction in forest properties, less the fair value of standing
trees recognised as biological assets with a fair value of SEK 31 600 million
(30 555). The valuation based on transactions in forest properties draws on
detailed data about transactions and price statistics published by different mar-
ket operators. To obtain a sufficiently large population, three years of aggregated
transactions are used. The valuation takes account of where in the country the
forest land is located and differences in the forests in terms of the volume of
standing timber and site quality. Valuations are primarily dependent on price
statistics and transaction data collected from external parties and how large
the volume of standing timber is estimated to be. The value of standing trees is
determined by calculating the present value of the expected future cash flows
based on estimates of future harvest volumes, changes in prices and costs and
discount rates. Environmental and climate factors were taken into account when
preparing both the forest management programme and the harvesting plan,
which forms the basis for the forecasting of future harvest volumes. A deferred
tax liability of SEK 5 360 million (5 272) has been recognised in respect of forest
land and SEK 6 510 million (6 294) in respect of biological assets. See Note 7
and Note 9 for further information.
Impairment testing of goodwill and non-current assets
Goodwill is tested for impairment annually, and non-current assets are tested
when there is an indication that an impairment loss needs to be recognised.
Value in use is calculated by discounting the present value of the expected future
cash flows based on estimates of future volumes, changes in prices and costs
and discount rates. Changes in conditions may have an effect on the estimated
recoverable amount applied in connection with future impairment tests.
Pension obligations
The Group has defined benefit pension obligations measured at SEK 1 539
million (1 581) and SEK 1 782 million (1 809) of 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 assumptions are usually updated annually, which affects the Group’s
comprehensive income and the pension provision recognised. 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 has mainly recognised
provisions for uncertainties related to obligations to restore the environment at
abandoned sites where its operations have created pollutants. See Note 19.
Taxes
The Swedish Tax Agency has rejected Holmen AB’s group relief claim relating to
tax losses from Spanish subsidiaries that were liquidated. Holmen has appealed
the decision. The deductions correspond to SEK 386 million of tax, but no tax
receivable has been recognised.
Group
Parent company
Interest paid and dividends
received
2024
2023
2024
2023
Dividends received
-
-
344
348
Interest received
37
47
217
172
Interest paid
-104
-80
-139
-113
Total
-67
-33
422
407
In 2024, the Group redeemed bonds totalling SEK 1 000 (1 000) million and
issued new bonds totalling SEK 1 500 million. See Note 14 for a breakdown of
cash and cash equivalents.
Group
2023
New
leases
Cash
flow
Currency
and market
revaluation
2024
Bonds
2 900
-
500
-
3 400
Commercial paper
-
-
-
-
-
Other financial
liabilities
23
-
-10
43
55
Liabilities relating to
right-of-use assets
250
105
-127
-
228
Pension obligations
9
-
-4
3
9
Financial liabilities*
3 182
105
359
46
3 692
*Including liabilities relating to right-of-use assets and pension obligations.
Group
2022
New
leases
Cash
flow
Currency
and market
revaluation
2023
Bonds
3 900
-
-1 000
-
2 900
Commercial paper
-
-
-
-
-
Other financial
liabilities
41
-
-60
42
23
Liabilities relating to
right-of-use assets
247
117
-121
7
250
Pension obligations
7
-
-4
6
9
Financial liabilities*
4 195
117
-1 185
55
3 182
*Including liabilities relating to right-of-use assets and pension obligations.
Parent company
2023
Cash
flow
Currency
and market
revaluation
2024
Bonds
2 900
500
-
3 400
Commercial paper
-
-
-
-
Liabilities in respect of
Group companies
784
-43
0
741
Other financial liabilities
21
-10
43
53
Pension obligations
1
-
-1
0
Financial liabilities*
3 706
447
42
4 195
*Including pension obligations.
Parent company
2022
Cash
flow
Currency
and market
revaluation
2023
Bonds
3 900
-1 000
-
2 900
Commercial paper
-
-
-
-
Liabilities in respect of
Group companies
434
342
8
784
Other financial liabilities
39
-60
42
21
Pension obligations
13
-13
1
1
Financial liabilities*
4 386
-730
51
3 706
*Including pension obligations.
Note 27. Events after the balance sheet date
No significant events have occurred since the end of the reporting period.
92 Holmen Annual Report 2024
Notes
Notes 25–27

Appropriation of profits
SEK
The following earnings of the parent company are at the disposal of the AGM:
Net profit for the 2024 financial year
1 375 483 021
Retained earnings
4 682 136 469
6 057 619 489
The Board proposes that the following be allocated to the shareholders
an ordinary dividend of SEK 9.00 per share (157 668 192 shares),
1 419 013 728
an extra dividend of SEK 3.00 per share (157 668 192 shares)
473 004 576
1 892 018 304
and that the remaining amount be carried forward
4 165 601 185
The Board of Holmen AB has proposed that the 2025 AGM resolve in favour of
paying an ordinary dividend of SEK 9.0 per share, and an extra dividend of SEK
3.0 per share, for a total of SEK 1 892 million. The previous year, an ordinary
dividend of SEK 8.5 per share and an extra dividend of SEK 3.0 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 66 per cent of the profit for 2024 for the
Group and means that 3 per cent of the Group’s equity at 31 December 2024 will
be paid out by way of dividends.
The Board has established that the Group should have a strong financial posi-
tion, with net financial debt not exceeding 25 per cent of equity. At 31 December
2024 it amounted to 6 per cent. The proposed dividends would increase the net
debt to equity by 4 percentage points.
Holmen AB’s equity at 31 December 2024 amounted to SEK 11 972 million, of
which non-restricted equity was SEK 6 058 million. Assets and liabilities meas-
ured at fair value in accordance with Chapter 4, §14a of the Swedish Annual
Accounts Act had an impact of SEK -153 million on equity. The Group’s equity at
31 December 2024 amounted to SEK 57 370 million. In accordance with IFRS, no
distinction is made at Group level between restricted and non-restricted equity.
The Board considers that the payment of dividends 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
the Group’s financial position in other respects. Its financial position will remain
strong after payment of the proposed dividends and is considered to be entirely
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 accord-
ance with generally accepted accounting principles in Sweden, and the Group’s
consolidated 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 accounts and the 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 the material risks and uncertainties to which the
parent company and the other companies in the Group are exposed.
Holmen Annual Report 2024 93
Proposed appropriation of profits
Proposed appropriation
of profits

94 Holmen Annual Report 2024
Signatures
The annual accounts and the consolidated accounts were approved for publication by the Board in its decision of 24 February 2025. 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 31 March 2025.
Stockholm, 24 February 2025
Fredrik Lundberg
Chairman
Lars Josefsson
Board member
Alice Kempe
Board member
Louise Lindh
Board member
Ulf Lundahl
Board member
Fredrik Persson
Board member
Henriette Zeuchner
Board member
Carina Åkerström
Board member
Henrik Sjölund
Board member and
Chief Executive Officer
Ari Aula
Board member,
employee representative
John Nyberg
Board member,
employee representative
Tommy Åsenbrygg
Board member,
employee representative

Our audit report was submitted on 25 February 2025.
PricewaterhouseCoopers AB
Magnus Svensson Henryson
Authorised Public Accountant
Principal Auditor
Signatures

Auditor’s report
Holmen Annual Report 2024 95
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 2024, except for the corporate governance statement and the sustainability
report on pages 44-48 and 98–122, respectively. The annual accounts and consoli-
dated accounts of the company are included on pages 4, 8–11, 16–17, 42–94 and
127 of this document.
In our opinion, the annual accounts have been prepared in accordance with the
Annual Accounts Act, and present fairly, in all material respects, the financial position
of the parent company as of 31 December 2024 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 2024 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 44-48 and
98–122, 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 Regulation
(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 responsibi
lities under these standards are further described 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. This includes,
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.
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 state-
ments 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 thresholds
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. Quantitative 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 consolidated
accounts as a whole, but we do not provide a separate opinion on these matters.
Description of key audit matter
How our audit addressed the key audit matter
Revenue recognition
Net sales amount to SEK 22 759 million and is a material item in the income
statement.
The Group has various types of revenue, which largely consist of goods such
as paper, paperboard, timber, wood products and pulpwood that are sold to
customers. Sales of goods are transaction-rich, put requirements on book-
keeping, monitoring and internal controls.
The services provided are limited and primarily relate to forest management
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 examined
individually.
A description of the area is presented in Note 2. Accounting and valuation
principles are presented in Note 1
Our audit procedures have included, but were not limited to, the activities listed below.
We have:
• 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
The Group’s forest assets amount to SEK 57 843 million and constitute a
significant item in the consolidated balance sheet.
The assets are divided into biological assets that are recognised in
accordance 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 important
assumptions is presented in Note 9.
The measurement process is complex since it requires assessments and as-
sumptions in respect of, inter alia, market statistics, and the breakdown of
the total value of land and biological assets.
Significant areas of judgment include the scope and completeness of
market 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 material nature
of the item and the inherent complexity, the valuation of the group’s forest
assets is considered key audit matter in our audit.
Our audit procedures have included, but were not limited to, the procedures listed below.
We have:
• Evaluated the process and the method used for valuation of forest assets as well as
the company’s process for collecting input data, performed through validation against
supporting documents and interviews with Holmen staff.
• Tested the allocation of value between biological assets and land assets.
• Evaluated the reasonableness of material assumptions that form the basis for the
Group’s valuation including discount rate, timber prices, harvest plan as well as costs
for forestry and harvesting activities.
• We have reviewed portions of the input data used in the valuation of forest assets, as
well as assessed the controls in place to ensure the accurate transfer of this input data.
• Our valuation specialists have reviewed the assumptions and documentation utilized
to determine the discount rate, placing particular emphasis on the sensitivity of the
calculations.
• Evaluated outcome of the internal valuation model used compared to external valuations.
• Examined that the disclosed information in Note 9 of the annual report meets the require-
ments according to IFRS and provides a fair presentation of the company’s valuation.

Auditor’s report
96 Holmen Annual Report 2024
Other information than the annual accounts and consolidated
accounts
This document also contains information other than the annual accounts and con-
solidated accounts, which is found on pages 2–3, 5–7, 12–15, 18–41, 123–126,
128–136 .(“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
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 knowledge
obtained in the audit and assess whether Other information otherwise appears to
be materially misstated.
If we, based on the work performed concerning 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 preparation
of the annual accounts and consolidated accounts and that they give a fair presenta-
tion 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 control as they deter-
mine 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 Directors
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 or cease to operate the company 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 misstatement,
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 guarantee
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, individu-
ally 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 2024 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 appropri-
ated 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 stand-
ards in Sweden. Our responsibilities under those standards are further described 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, consolidation
requirements, liquidity and position in general.
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
designed 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.
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 available on the website of the Swedish Inspectorate of Auditors:
www.revisorsinspektionen.se/revisornsansvar. This description forms part
of the statutory annual report.

Auditor’s report
Holmen Annual Report 2024 97
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
prepared 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 2024.
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 for Opinion
We have conducted our examination in accordance with FAR’s recommendation,
RevR 18 Examination of the Esef report. Our responsibilities under this recommen-
dation 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 obtain reasonable assurance whether the Esef report is in all
material respects prepared in a format that meets the requirements of Chapter 16,
Section 4 a of the Swedish Securities Market Act (2007:528), based on the proce-
dures performed.
RevR 18 requires us to plan and execute procedures to achieve reasonable assur-
ance that the Esef report is prepared in a format that meets these requirements.
Reasonable assurance is a high level of assurance, but it is not a guarantee that an
engagement carried out according to RevR 18 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, individu-
ally or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the Esef report.
The audit firm applies ISQC 1 Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and other Assurance and Related Services
Engagements and accordingly maintains a comprehensive system of quality
control, including documented policies and procedures regarding compliance with
professional ethical requirements, professional standards and legal and regulatory
requirements.
The examination involves obtaining evidence, through various procedures, that the
Esef report has been prepared in a format that enables uniform electronic reporting
of the annual accounts and consolidated accounts. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement in the report, whether due to fraud or error. In carrying out this risk
assessment, and in order to design procedures that are appropriate in the circum-
stances, the auditor considers those elements of internal control that are relevant
to the preparation of the Esef report by the Board of Directors (and the Managing
Director), but not for the purpose of expressing an opinion on the effectiveness of
those internal controls. The examination also includes an evaluation of the appro-
priateness and reasonableness of assumptions made by the Board of Directors and
the Managing Director.
The procedures mainly include a validation that the Esef report has been prepared
in a valid XHTML format and a reconciliation of the Esef report with the audited
annual accounts and consolidated accounts.
Furthermore, the procedures also include an assessment of whether the consoli-
dated statement of financial performance, financial position, changes in equity,
cash flow and disclosures in the Esef report has been marked with iXBRL in accord-
ance with what follows from the Esef regulation.
Auditor’s opinion regarding the corporate governance
statement
The Board of Directors is responsible for ensuring that the corporate governance
statement on pages 44-48 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 Internation-
al Standards on Auditing and generally accepted auditing standards in Sweden. We
believe 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 98–122 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 substantially
more limited in scope compared with the focus and scope of an audit conducted
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, 113 97 Stockholm,
was appointed auditor of Holmen AB by the general meeting of the shareholders on 16 April 2024
and has been the company’s auditor since 22 April 2021.
Stockholm, 25 February 2025
PricewaterhouseCoopers AB
Magnus Svensson Henryson
Authorised Public Accountant
Auditor in Charge

General disclosures
Basis for preparation
General basis for preparation of the sustainability statement
Holmen’s sustainability report covers the financial year 1 January to 31 December
2024. Holmen publishes sustainability data annually, and this year’s report is
published on 7 March 2025.
The sustainability report comprises pages 98–126 and is prepared in line with
the Global Reporting Initiative’s GRI Standards 2021 and the aspects that are
material to the Group have been identified. The sustainability report has under-
gone review by Holmen’s auditors, see the separate assurance report on page
126.
Holmen’s statutory sustainability report in accordance with the Swedish Annual
Accounts Act can be found on pages 98–122. Holmen’s statutory sustainability
report has been reviewed by Holmen’s auditors in line with requirements laid
down in national law. The Board of Directors is responsible for the statutory
sustainability report and for ensuring that it is prepared in accordance with the
Swedish Annual Accounts Act.
Holmen’s annual report and sustainability report cover the parent company
Holmen AB, all subsidiaries in the Group and hydro power plants in which
Holmen is a minority owner. The sustainability report does not include other
companies of which Holmen is a minority owner. All data is collected, quality-
assured and evaluated.
Disclosures in relation to specific circumstances
Time horizons
In the sustainability report, material sustainability matters have been identified
and assessed as to whether they arise in the short, medium and long term.
Definition of time horizons
Short term
The period Holmen has adopted as the reporting period
in the financial reports
Medium term
Up to five years from the end of the reporting period
(as zabove)
Long term
More than five years
Value chain estimation
Where estimates have been made, this is stated under the respective metrics,
see the relevant section of the sustainability report.
Sources of estimation and outcome uncertainty
Estimation and outcome uncertainties have been commented on in conjunction
with the information concerned.
Changes in preparation or presentation of sustainability information
Reporting in Holmen’s Annual Report 2024 is based on a materiality assessment
in line with GRI and is simultaneously updated as inspired by the European
Sustainability Reporting Standards (ESRS) (’double materiality assessment’),
see page 100 for more information about the materiality assessment. The struc-
ture of the sustainability information provided is modelled on the way ESRS
structures its reporting areas.
In 2024, Holmen has updated the methodology used to calculate climate
benefit. For further information, see page 104.
For scope 2, in 2024, Holmen has updated the source of emission factors and
the calculation method. See page 103.
The key figures for HR information have been revised to align Holmen’s
sustainability report with ESRS. See pages 112–113.
In 2024, the key figures for waste were updated to align with the requirements
of ESRS, and the figure for hazardous waste in 2023 has been updated from 1.4
to 1.5 accordingly. See page 130.
Governance
In recent years, the Board of Directors and Group management have rewritten
Holmen’s business concept and strategy in light of the way in which the global
climate transition is driving demand for sustainable building materials and
renewable energy while also fuelling growing competition for forest raw material.
As part of this process, sustainability matters have been integrated into the
governance of Holmen. Corporate governance is described on pages 44–48.
Integration of sustainability-related performance in incentive schemes
Holmen’s short and long-term incentive programmes for Group management
are linked to sustainability-related matters (see Note 4 on page 74).
Strategy
Strategy, business model and value chain
Holmen’s business concept is to own and add value to the forest. Our forest
holdings are the foundation of our business. Using Holmen’s own industrial
installations, the growing trees are refined into everything from wood for
climate-smart building to renewable packaging, magazines and books, while at
the same time hydro and wind power are generated on Holmen’s own land.
Holmen’s strategy draws on the fact that the world must make the transition to
using energy and materials sustainably to limit global warming. With renewable
raw material, fossil-free electricity and resource-efficient production, Holmen is
able to offer products with a low climate footprint.
Holmen has long combined active forestry with preservation of biodiversity, and
this has resulted in a steadily increasing volume of standing timber and larger
harvests from healthy ecosystems. An increasing volume of standing timber and
sustainable building in wood contribute to a better climate by binding and storing
carbon, but the greatest benefit is created when the production of renewable
electricity, wood products, paperboard and paper replaces fossil alternatives.
Buildings account for considerable emissions of greenhouse gases, in construc-
tion and during the building’s lifecycle, and the construction industry is working
to reduce its climate footprint. As a building material, wood is benefitting from
the ongoing green transition, in a trend that is expected to boost demand for
wood products. In recent years, acquisitions and investments have seen Holmen
expanding its wood products business by increasing capacity and broadening
its range of goods and services. With a strong position in the wood market and
well-invested sawmills, Holmen is excellently placed to continue to expand the
wood products business.
Holmen grows houses. This means that the forest is managed in a way that
generates as much timber as possible. When the wood is sawn, residual prod-
ucts are produced, which are used in the Group’s paper and paperboard mills,
where wood chips and shavings from the sawmills are topped up with the trees
that are too narrow to become construction material. A desire to reduce climate
impact and avoid plastic packaging is helping to increase demand for wood-
based fibre products, while the low carbon footprint of Holmen’s products has
increasingly become a competitive advantage.
Over the past 50 years, the world’s energy consumption has tripled, and this
increasing demand has almost exclusively been met using fossil fuels. To reduce
fossil dependence, Europe must transform its energy supply and significant
elements of industrial production, heating, and transport must be electrified.
Holmen’s controllable hydro power contributes fossil-free and renewable
electricity when it is most needed, while helping to stabilise an increasingly
weather-dependent electricity system. Holmen’s extensive land holdings also
create an opportunity to add more renewable energy in the form of wind power.
Developing wind power is a natural complement to controllable hydro power
and a good way to derive added value from forest ownership.
General disclosures
98 Holmen Annual Report 2024
Sustainability
report

Business model and value chain
The forest ecocycle gives the business wood. The wood is refined at Holmen’s
own industrial installations and made into products which customers can then
refine further 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 bioenergy.
When deciding what to make out of the different parts of the tree, greatest value
added is the key criterion and the resulting residual products are used in other
processes. Holmen also uses its large land holdings to produce renewable
energy from both wind and water.
Forest: Holmen carries out active and sustainable forestry on over a million
hectares of its own productive forest land. Large forest holdings and close part-
nerships with approximately 15 000 private forest owners create considerable
economies of scale, which give Holmen a strong position in the wood market.
Alongside extensive timber trading, Holmen’s industrial installations are provid-
ed with raw material that is distributed via efficient logistics solutions. In addi-
tion to logs and pulpwood, bark, treetops and branches have their own uses and
are sold on for bioenergy production.
Wood Products: The five sawmills play a key role in Holmen’s circular business.
This is where the wood is split and the processing of the harvested forest begins.
Developing the wood products business is a natural extension of forestry and
an important dimension in Holmen’s strategy of owning and adding value to the
forest. Growing capacity to produce wood products near the undertaking’s own
forest holdings means Holmen is able to process an ever-increasing proportion
of the forest at its own industrial sites. Holmen offers a wide range of wood and
timber products for construction and joinery.
Two of the Group’s sawmills, Braviken and Iggesund, form energy-efficient units
with their neighbouring paper and paperboard 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.
Board and Paper: Holmen develops premium paperboard and innovative paper
products for everything from cosmetics, electronics, pharmaceuticals and food
to books, magazines, advertising and transport packaging. Holmen’s board and
paperboard products are manufactured entirely from fresh fibre. With renewable
raw material, fossil-free electricity and resource-efficient production at a total of
four industrial facilities in Sweden and the UK, Holmen is able to offer products
with a low climate footprint.
Renewable Energy: Holmen produces renewable energy from hydro and wind
power. The majority of energy production is hydro power from 21 wholly or partly
owned power plants. With a large land holding, developing large-scale wind
power is a natural complement to controllable hydro power, and today Holmen
has two wholly owned power plants, Varsvik and Blåbergsliden, while another
wind power plant, Blisterliden, is under construction.
The most important raw materials for Holmen’s operations are wood and elec-
tricity. Approximately half of the wood raw material is harvested from Holmen’s
own forests. The remaining amounts are bought in, mainly from private forest
owners in Sweden. Only a small proportion is imported. Holmen managing the
harvesting of a large proportion of its wood procurement enables good control
of the supply chain and reduces potential risks. Besides raw materials, the larg-
est areas for purchasing are inputs, production materials and transport. Holmen
is also a major purchaser of contracted forestry services.
Holmen carries out industrial production at a total of nine installations, eight in
Sweden and one in Workington, UK, which require environmental permits. The
permits specify conditions regarding permitted production volumes, noise levels
and permitted emissions to air and water. Additionally, the converting plant in
Strömsbruk is a notifiable activity. Holmen also has environmental permits for
wind power and commercial quarries. Furthermore, the six wholly owned and 15
partly owned hydro power plants have environmental permits for the production
plant, reservoirs and water regulation.
The Holmen Group has approximately 3 500 employees, 2 960 of whom are in
Sweden and about 400 are in the UK. See page 75 (Note 4) for the geographical
distribution of Holmen’s employees.
Interests and views of stakeholders
Holmen’s stakeholders have been identified based on the activity carried out,
how it affects the world around us, and the actors that affect Holmen. Some of
these stakeholders, such as employees, customers, suppliers, the local commu-
nity, financiers and public authorities are important for day-to-day operation.
Others, such as future employees, owners, analysts, decision-makers, industry
organisations and the media, are important for long-term development.
Holmen seeks continuous, open dialogue to increase internal understanding of
stakeholders’ perspectives on operations. Working with industry organisations,
discussions are held with politicians and stakeholder organisations on how the
ground rules of the future will be designed, with a focus on forestry and energy
supply, and taking climate and biodiversity as the most important parameters.
Thanks to good union relations, the views of employees are voiced and heard,
supplemented by employee surveys and one-to-one dialogues at all levels of the
company. Good dialogues with local decision-makers, local residents and other
businesses enable Holmen to pick up on signals about how the local community
is affected and how this may affect Holmen’s operations.
The information sources set out above are taken into account in developing the
strategy to ensure that Holmen will be a successful company into the future. The
strategy is constantly revised with the help of business intelligence and studies
of how the world may develop in different scenarios, with the management
teams of all the business areas involved. Dialogue with customers and suppliers
fosters an understanding of how they may act to deal with a world in which
sustainable energy and sustainable raw materials are in short supply. This is
supplemented by targeted studies bringing in external consultants to under-
stand how areas outside the immediate industry may develop.
Material impacts, risks and opportunities and their interaction with
strategy and business model
Material impacts, risks and opportunities and their interaction with the strategy
and business model are described under the respective relevant section, see
sections on Climate change, Biodiversity, Own workforce, Workers in the value
chain, Affected communities and Business conduct below.
Business area
Products
Customer segment
Primary
markets
Competitors (selected)
Forest
Logs, pulpwood and biofuel
Sawmills, pulp mills, board and
paper mills
Sweden
SCA, Sveaskog and a
number of large forest
owner associations
Wood
Products
Construction and joinery timber,
CLT and glulam, plus wood for
pallets and packaging
Construction and joinery
industry, builders’ merchants,
and packaging industry
Europe, Middle East and North
Africa, North America
Moelven, SCA, Setra,
Södra, Vida and a large
number of foreign
companies
Board and
Paper
Premium paperboard for consumer
packaging and paper products for
books, magazines, advertising and
transport packaging
Brand owners, converters,
wholesalers, publishers, printers
and retailers
Europe, Asia, North America
Metsä Board, Mayr-
Melnhof, Norske Skog,
Smurfit Westrock, Stora
Enso, UPM
Renewable
Energy
Renewable energy from hydro
and wind power
Nordic electricity market
Fortum, Statkraft,
Vattenfall, Uniper
Sustainability report
General disclosures
Holmen Annual Report 2024 99

Impact, risk and opportunity management
Description of the processes to identify and assess material impacts,
risks and opportunities
Since 2004, Holmen has reported sustainability information following a materi-
ality assessment in which the information is selected based on the sustainability
areas that are most significant to the Group.
In 2024, Holmen has updated the materiality assessment drawing on GRI’s cri-
teria and inspired by the forthcoming rules in ESRS, known as double materiality
assessment. The materiality assessment is based on Holmen’s business concept
and strategy, which have been reworded in recent years driven by the climate
issue and the transition to a circular economy. Furthermore, earlier and ongoing
dialogues with stakeholders such as customers and suppliers, unions and
employees, local residents and local decision-makers have been taken into
account as input data. Knowledge of the impact Holmen’s operations have on
the environment has been obtained and is constantly monitored in the business,
partly via the requirements laid down for operations in environmental permits
and voluntary certifications.
Holmen’s value chain has been surveyed by examining key activities occurring
in Holmen’s own operations and in the value chain. Impacts, risks and opportuni-
ties have subsequently been identified, taking into account whether they arise
in the short, medium or long term.
Impacts on the environment and people
Holmen’s identified negative impacts on the environment and people have
been evaluated based on an assessment of the scale and scope of the impact, its
irremediable character and its likelihood. Positive impacts have been assessed
based on severity and likelihood.
Financial risk and opportunities for Holmen
The risks and opportunities linked to environmental and social requirements
identified in the value chain have been assessed based on the likelihood of their
occurring and the potential financial effect.
See further description under the respective section for material sustainability
matters.
Sustainability matters covered by the company’s sustainability
statement
The sustainability matters reported in Holmen’s sustainability report 2024 are
presented below.
Policies adopted to manage material sustainability matters and actions
and resources in relation to material sustainability matters
Information on policy work at Holmen is described in the Corporate Governance
Report, see pages 44–48. See also the respective section for material sustaina-
bility matters.
Metrics and targets
Metrics in relation to material sustainability matters and tracking
effectiveness of policies and actions through targets
Sustainability is about balancing several perspectives – economic, environmen-
tal and social – and succeeding in doing so over time. For Holmen, successful
business and a sustainable future go hand in hand. We contribute towards the
transition to a sustainable and circular society and focus our work on the areas
where our operations have the greatest opportunity to make a difference.
• Holmen’s climate benefit is to increase by growing the business.
• Holmen’s forestry fosters biodiversity.
• Holmen develops the business within the framework of environmental permits
and certifications.
• Holmen’s workforce develop and thrive.
• Holmen builds long-term relationships based on responsible business conduct.
Indicators are linked to these five material areas to measure development and
progress. See also the respective section for material sustainability matters.
Material impact, risk or opportunity
See
Capture and storage of carbon dioxide in
the volume of standing timber and wood
products
Climate change, page 101
Greenhouse gas emissions in the value
chain (in production and transport)
Climate change, page 101
Production of renewable electricity
Climate change, page 101
Electricity-intensive production
Climate change, page 101
Production produces emissions of
pollutants to water, air and soil
Pollution, page 105
Forestry impacts on the local
environment and water
Biodiversity, page 107
Hydro power generation impacts
on the landscape and aquatic environments
Biodiversity, page 107
Production of renewable products
Circular economy, page 109
Industrial production generates waste
Circular economy, page 109
Need for skilled workers
Own workforce, page 111
Industrial production involves a risk
of accidents
Own workforce, page 111
Forestry is dependent on subcontractors
Workers in the value chain,
page 113
Operations impact on local residents and
local businesses
Affected communities,
page 115
Exposure to business conduct risks
Business conduct, page 116
General disclosures
100 Holmen Annual Report 2024

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Climate change
Strategy
Transition plan for climate change mitigation
Holmen’s strategy draws on the fact that the world must make the transition to
using energy and materials sustainably to limit global warming. Actively and sus-
tainably managing the forest means carbon dioxide is stored in Holmen’s grow-
ing forest and products, while wood-based products and renewable energy
replace fossil alternatives. Holmen’s target to increase the company’s positive
contribution in the climate transition supports the Paris Agreement’s goal to hold
the increase in the global average temperature to well below 2 °C above pre-in-
dustrial levels and pursue efforts to limit the temperature increase to 1.5 °C. In
2024 Holmen’s operations contributed to creating climate benefits equivalent to
8.3 (7.8) million tonnes of CO2e, see calculation on page 104. Holmen has long
worked to reduce the negative climate impact of its operations and as early as
2005 set the target to reduce the use of fossil fuel at the Group’s material sites
by 90 per cent by 2020. Actions to improve energy efficiency and investments in
fossil-free technology have led to a reduction in fossil emissions from production
by 91 per cent since 2005 and today the business’ emissions are at the low lev-
els defined by the IPCC that the industry should meet by 2045 to be in line with
the 2 °C target in the Paris Agreement. Holmen’s scope 1 emissions also meet
the necessary reduction rate for attaining the 1.5 °C target of the Paris Agree-
ment. The majority of emissions are generated from purchases of inputs and
from transport to and from Holmen’s industrial facilities. Holmen is committed to
working towards well below 2 °C in line with the Science Based Targets initiative
(SBTi) and has set scientific targets to endeavour to reduce emissions even further.
Material impacts, risks and opportunities and their interaction with
strategy and business model
The market’s ambitions to combat climate change have been incorporated in
Holmen’s strategy for a long time. Holmen has identified material impacts, risks
and opportunities related to climate change and the wider world’s ambition to
limit them, as described below.
Capture and storage of carbon dioxide in the volume of standing timber and wood
products
Over the years, Holmen has developed long-term and rational management of its
forest holdings, which has contributed towards a growing volume of standing
timber and increased harvests. A growing volume of standing timber captures
and stores carbon dioxide and after harvest, the forest raw material continues
to create benefit by storing carbon dioxide in products with a long lifetime. The
forest has a key role to play in the climate transition and demand for forest raw
material is expected to increase, both logs and pulpwood. Although the forest is
a renewable resource and Holmen’s large forest holdings give Holmen a strong
position in the wood market, the supply of raw material is limited. Forest and
land management are also strictly regulated both nationally and at EU level.
Requirements on increased use of the forest as a carbon sink or requirements to
change forestry methods could thus lead to reduced growth and lower harvests.
The builiding sector is responsible for more than a third of Europe’s carbon
emissions and making the manufacture of the dominant construction materials
cement and steel sustainable is both expensive and difficult. Wood is a renewa-
ble alternative which, in contrast to cement and steel, is energy-efficient to
produce, while also storing carbon in the buildings. This means that the market
outlook for wood products is good. Not least, when fossil-intensive construction
materials are starting to have to bear their true climate cost as free allocation of
emission allowances is being phased out. On the other hand, greater competition
for logs may affect Holmen’s opportunities to grow in balance with access to
wood raw material.
Production of renewable electricity
There is a great need for more fossil-free electricity and Holmen is contributing
by producing renewable energy in the form of hydro power, wind power and bio-
mass. Expanding existing hydro power is not judged to be possible, while future
environmental permit applications involve a risk that existing production may
be restricted. On the other hand, Holmen has significant potential to build wind
power on its own land. The length of the permit processes poses a challenge,
as does the fact that wind power construction often comes up against local
opposition.
Electricity-intensive production
The electricity used in production at Holmen’s material sites is fossil free and
largely comes from self-generated renewable energy production. Adapting
electricity-intensive paper production also gives Holmen an opportunity to help
to stabilise an increasingly weather-dependent electricity system. Regulation
affecting energy prices, access to fossil-free energy or requirements to reduce
emissions may have financial and operational consequences for the business.
Greenhouse gas emissions in the value chain (in production and transport)
Holmen has long worked to reduce fossil emissions from its own operations and
today Holmen’s industries have a low climate footprint, which means the majori-
ty of emissions are generated from purchases of inputs and from transport to
and from Holmen’s industrial installations. Addressing indirect emissions may
mean investments or higher costs. Holmen currently receives a free allocation
of emission allowances under EU ETS and UK ETS. Approximately 10 per cent
of these are used to cover the emissions of Holmen’s own operations and the
remainder is sold to external parties. The phasing out of the emission allowance
trading system may thus have a financial effect on Holmen due to lost income.
Physical risks and opportunities in Holmen’s forestry and energy production
Climate change may affect Holmen’s business, but the impacts of physical risks
linked to a changed climate are currently not judged to be material to its opera-
tions. The operation identified with the greatest potential impact from a changed
climate is forestry. A warmer climate could increase the growth of Holmen’s for-
ests, with a longer growing season, more precipitation and higher levels of car-
bon dioxide in the air, aiding photosynthesis. Warmer temperatures and changed
precipitation patterns could also create favourable conditions for pests such
as fungi and insects, which could lead to reduced timber volumes and poorer
quality. Long periods of drought and higher temperatures may also affect oppor-
tunities to actively manage the forest as a result of shorter periods of frozen
ground or standstills due to high fire risk.
Changed wind patterns may affect wind power production, which is governed
by the strength and stability of the wind. Changed precipitation patterns, with
longer dry periods or more intense periods of rain, may affect rivers and the
levels of lakes and watercourses. Low water levels could lead to lower hydro
power production, while heavy rain and flooding could pose technical challenges
and risks for installations.
By the end of the reporting period, no need for material adaptations to Holmen’s
industrial facilities due to climate change has been identified. Work is in progress
on an updated analysis, which is expected to be complete in 2025.
Impact, risk and opportunity management
Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
Regulatory risks and changes in external requirements driven by sustainability
matters are monitored and tackled in the business areas, supported by Group
staff. Part of this external monitoring is also carried out by active participation in
national and international industry organisations whose purpose is to handle the
monitoring of social trends, conduct advocacy work, and put forward Holmen’s
position and view on relevant political and regulatory issues. Holmen is active via
dialogue, responses to consultations, preparedness and lobbying, on Holmen’s
own behalf and together with industry organisations. Holmen also conducts its
own research projects and engages in research carried out by other actors.
To identify physical climate-related risks in forestry and for wind and hydro pow-
er production, Holmen has used the IPCC’s forecast that the global temperature
will increase by 2.7 degrees by 2050. Accordingly, an average value of the
Swedish Meteorological and Hydrological Institute’s (SMHI) climate scenarios,
defined as Representative Concentration Pathways (RCP) RCP 4.5 and RCP 8.5,
has been taken into account. A reference period has been chosen to finally
assess the impacts of the climate scenarios.
Producing climate adaptation plans is an ongoing process at the respective
material site and in forest operations. The management of each material site
participates in the process and must prioritise potential activities, taking the
costs and risks of the actions and the other needs of the business into account.
Policies related to climate change mitigation and adaptation
Holmen’s environmental and energy policy covers all operations and is founded
on the use of natural, renewable wood raw material and fossil-free energy in a
business that mitigates climate change. Holmen’s sawmills, paperboard and
paper mills must comply with applicable standards and be ISO certified in order
to survey energy consumption and improve energy performance. Energy is to
be recovered and used for internal and external purposes with the aim of mini-
mising environmental impact and reducing the need for purchased energy.
Purchased electricity is to come from fossil-free generation.
Holmen is also to contribute to the transition of the energy system by increasing
renewable energy production. The climate and system benefit must be protect-
ed and the installations must be environmentally adapted in line with the nation-
al plan for modern environmental conditions for hydropower.
Holmen Annual Report 2024 101
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All material sites and forest operations must prepare a climate adaptation plan.
The plan must describe the relevant climate risks, their potential impacts on op-
erations and the actions that can be taken. The plan must also cover proposed
actions that seize opportunities. Implementation of the plan must be integrated
in the material site’s management system and comply with standards laid down.
Holmen’s commitment to the Science Based Targets initiative (SBTi) are to be
taken into account in long-term investment planning.
Actions and resources in relation to climate change policies
Holmen’s work is characterised by constant improvement measures within the
framework of the material sites’ certified environmental and energy manage-
ment systems, which ensure compliance with legislation and requirements set
by authorities. Responsibility for the management systems rests with the re-
spective material site, which also bears the actual environmental responsibility.
During the reporting period, actions have been carried out to reduce greenhouse
gas emissions and improve energy efficiency at Holmen’s material sites. For
example, hybrid timber trucks have been purchased to reduce fuel consumption,
and heating and ventilation systems have been improved. At some material sites,
productivity programmes have also been introduced to optimise energy use per
unit produced.
As part of developing Holmen’s energy business, Holmen has around 30 wind
power projects in different stages of development, from in-depth analysis to
managing permit applications. The work is in line with the strategy to create
long-term value and at the same time enable the green transition by increasing
electrification.
Climate risk analyses and adaptation plans are carried out in forestry to ensure
healthy, resilient forests suited to a changing climate. Seedlings and planting,
cleaning, thinning and harvesting processes are being developed and adapted
to a warmer and wetter climate. The seeds for nurseries are selected to grow
and thrive in a changing climate and when planting, tree species are chosen
based on the specific conditions of the soil to ensure the trees can better with-
stand extreme weather such as storms, rain and drought.
Metrics and targets
Targets related to climate change mitigation and adaptation
Holmen’s climate benefit is to increase by growing the business. This means that
Holmen will contribute to a better climate through higher growth and harvesting
of forests and higher sales of renewable products that store carbon dioxide and
replace fossil-based alternatives. Deliveries of renewable energy will increase by
complementing existing hydro power with wind power on Holmen’s own land,
and the fossil emissions in Holmen’s value chain will be reduced.
Key activities to achieve the targets
The following key activities have been identified to achieve the targets of
increased climate benefit:
• Increased growth and harvest in Holmen’s own forests through growth
promotion actions.
• Increased production and refining of wood raw material into wood products for
sustainable building.
• Increased production of renewable energy by developing wind power on
Holmen’s own land.
• Resource and energy efficiency improvements within the framework of
environmental permits and management systems.
Outcomes climate benefit
In 2024, Holmen’s operations helped to generate a climate benefit amounting to
8.3 (7.8) million tonnes of CO2e, with positive contributions from all the business
areas. Read more about Holmen’s climate benefit on pages 36–37.
Climate benefit, million tonnes CO2e*
2024
2023
Storage in Holmen’s forests1)
2.13
1.58
Storage in wood and fibre products
0.44
0.44
Wood and fibre products replacing fossil material
4.44
4.39
Renewable electricity production replacing
fossil energy
1.24
1.18
Bioenergy replacing fossil energy
0.84
0.86
Holmen’s emissions in scope 1–3
-0.77
-0.68
Total climate benefit
8.32
7.79
1) For 2024 the value of storage in Holmen’s forests has increased by 0.55 Mtonnes
CO2e compared with 2023. This is mainly due to the fact that data for a new year is
available in the National Inventory Report (NIR), which forms the basis for calcula-
ting the net carbon dioxide sink in forest and land.
*See page 104 for accounting principles.
Outcomes energy production
In 2024, the decision was taken to build Blisterliden Wind Farm, marking an
investment of SEK 1.5 billion. Work to build the wind farm is in progress and it
is planned to be operational in 2026. This investment will increase Holmen’s
annual deliveries of renewable energy from water and wind by around 20 per
cent to just over 2 TWh.
Electricity production, MWh*
2024
2023
Own production of hydro and wind power
1 572 740
1 501 739
Electricity production at the mills
627 880
565 592
*See page 104 for accounting principles.
Outcomes emission reduction targets
As part of Holmen’s target to increase climate benefit, Group management set
greenhouse gas emission reduction targets in 2021. Comparison is with 2019
levels. The targets have been approved by the UN-affiliated Science Based
Targets initiative (SBTi) based on the ‘below 2 °C’ ambition.
• 15 per cent reduction in CO2e emissions from production per tonne of pulp and
paper by 2030 (scope 1 and 2).
• 22 per cent reduction in CO2e emissions from transport per tonne kilometre by
2030 (scope 3).
• 22 per cent reduction in CO2e emissions from forest machinery per tonne wood
raw material by 2030 (scope 3).
• Suppliers accounting for 35 per cent of emissions from purchased goods and
services are to have climate targets in line with Science Based Targets by 2025.
Own emissions and emissions from purchased energy in relation to the produc-
tion of paperboard and paper have reduced more than the target since the base
year 2019, thanks to reduced use of fossil gas at the mill in the UK and because
purchased electricity has lower carbon intensity. Good progress has also been
made on buying in from suppliers with climate targets. On the other hand, emis-
sions from transport and from forest machinery have not reduced. The abolition
of the reduction obligation in Sweden, which governs the inclusion of biofuels,
has had a negative impact. Additionally, emissions from forest machinery have
been affected by the fact that more work is being carried out in difficult terrain,
which requires heavier machinery with higher fuel consumption to ensure safe
and efficient harvesting and timber transport.
Outcomes emissions targets*
Base year
2019
2024
Targets
2030
Emissions per tonne of pulp and
paper, kg CO2e/tonne pulp & paper
85.5
-47%
-15%
Emissions from transport,
g CO2e/tonne km
23.6
14%
-22%
Emissions from forest machinery,
g CO2e/tonne wood raw material
3.5
48%
-22%
Proportion of emissions from
suppliers with climate targets
N/A
37%
35%1)
1) The target for the proportion of emissions from suppliers with climate targets runs
to 2025.
*See page 104 for accounting principles.
Energy consumption and mix
Holmen uses large amounts of energy and the vast majority of the energy pur-
chased and acquired is fossil-free. Only 3 per cent is fossil based, mainly from
use of oil and diesel, while 97 per cent comes from fossil-free sources. Holmen
does not use coal or coal products as fuel. During the reporting period, Holmen
purchased or acquired a total 7.6 (7.4) TWh of energy. Paperboard production
produces the majority of the energy needed in Holmen’s own mills. Manufactur-
ing thermo-mechanical pulp at Holmen’s two paper mills is electricity intensive
and the majority of the electrical energy used is bought in. During the reporting
period, total electricity purchased or acquired amounted to 3.2 (3.0) TWh.
Holmen buys 0.2 TWh a year from a wind farm on Holmen’s land at a price that is
fixed until 2032. Total energy purchased or acquired per net revenue in 2024
was 336 (326) MWh/SEKm.
102 Holmen Annual Report 2024
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Fuel purchased or acquired, MWh*
2024
2023
Fuel from coal and coal products
N/A
N/A
Fuel from crude oil and petroleum products
160 180
130 760
Fuel from fossil gas
38 139
29 870
Fuel from other fossil sources
942
1 091
Fuel from renewable energy sources
4 259 113
4 185 000
Total fuel purchased or acquired
4 458 374
4 346 721
Electricity and heat purchased or acquired, MWh*
Electricity from fossil sources
90
-
Electricity from renewable sources
1 219 838
1 466 872
Heat from renewable sources
4 776
4 670
Electricity from nuclear power
1 954 453 1 609 773
Total electricity and heat purchased or
acquired
3 179 157
3 081 315
Total purchased or acquired, MWh
Fossil energy
199 351
161 721
Renewable energy
5 483 727
5 656 542
Nuclear power
1 954 453 1 609 773
Total energy purchased or acquired
7 637 531
7 428 036
Proportion of energy consumption and mix, %
Share of fossil sources in total energy
consumption
3%
2%
Share of consumption from nuclear sources in
total energy consumption
26%
22%
Share of renewable sources in total energy
consumption
72%
76%
*See page 104 for accounting principles.
Externally supplied energy
Much of the energy consumed comes from Holmen’s own value chain. Holmen
produces bioenergy in the form of solid biofuels, mainly comprising wood
shavings, bark and branches and treetops. In total, Holmen supplied solid bio
fuel amounting to 2.3 (2.6) TWh in 2024. During the same period, the mill in
Workington supplied 0.1 (0.1) TWh of surplus electricity to the UK national grid.
Additionally, approximately 0.1 (0.1) TWh of tall oil and 29 (25) GWh of district
heating was supplied to neighbouring communities.
In a normal year, Holmen produces just over 1.1 TWh of hydro power from 21
wholly or partly owned power stations. Hydro power provides a secure energy
supply and contributes major benefit to society in the transition towards more
renewable energy sources, as hydro power production can be controlled by
adjusting the water level in the reservoirs. The establishment of large-scale
wind power provides a logical complement to controllable hydro power. Today
Holmen has two wholly owned wind farms with normal annual production of
approximately 0.6 GWh. In addition to self-generated wind power, Holmen
purchases 0.2 TWh a year from a wind farm on Holmen’s land.
Externally supplied energy, MWh
2024
2023
Own production of hydro and wind power
1 572 740
1 501 739
Externally produced wind power
155 477
155 052
Solid biofuels
2 311 161
2 586 947
Tall oil
138 140
145 690
District heating
28 879
25 000
Externally supplied energy from mills
143 836
127 331
*See page 104 for accounting principles.
Gross scopes 1, 2, 3 and Total GHG
emissions*
Retrospective
GHG emissions,
thousand tonnes CO2e
Base
year
2019 2023
2024
2024/
2023,%
Scope 1 GHG emissions
Gross scope 1 GHG emissions1)
90
54
61
13%
Percentage of scope 1 GHG emissions
from regulated emission trading
schemes (%)
56
57
1%
Scope 2 GHG emissions
Gross location-based scope 2 GHG
emissions
42
73
202)
-72%
Gross market-based scope 2 GHG
emissions
46
12
13)
-96%
Significant scope 3 GHG emissions
Total Gross indirect (scope 3) GHG
emissions
453 609
708
16%
1 Purchased goods and services
101 196
227
16%
2 Capital goods
80 116
150
29%
3 Fuel and energy-related activities
(not included in scope 1 or scope 2)
31
40
584)
47%
4 Upstream transportation
and distribution
57
55
72
32%
6 Business travelling
1
1
1
0%
7 Employee commuting
3
3
3
0%
9 Downstream transportation
180 199
197
-1%
Total GHG emissions
Total GHG emissions (location-based)
584 737
789
7%
Total GHG emissions (market-based)
588 675
769
14%
*See page 104 for accounting principles.
1) Emissions of methane and nitrous oxide at installations amount to 13 ktonnes CO2e
in the reporting period.
2) Holmen updated the source of emission factors in 2024, which means the figures for
2023/2024 are not comparable.
3) In 2024 Holmen updated the method for calculating gross market-based GHG
emissions. Emissions from the value chain for the production of market-based
electricity were previously in scope 2. These emissions have been moved to scope 3,
category 3, in line with the GHG Protocol.
4) Increased due to updated calculation method. From 2024, emissions in the value
chain from electricity production are also included.
Internal carbon pricing
Today, Holmen applies an internal carbon pricing scheme, in which every
material site bears the cost of its emissions at the market price for emission
allowances.
GHG intensity based on net revenue
Total GHG emissions (location-based) per net revenue in 2024 were 34.7 (32.3)
tonnes CO2e/SEKm. Total GHG emissions (market-based) per net revenue in
2024 were 33.8 (29.1) tonnes CO2e/SEKm.
Holmen Annual Report 2024 103
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Accounting principles Climate change
Climate benefit, million tonnes CO2e
Holmen updated the climate benefit calculation model in 2024 in line with
Forestry Research Institute of Sweden (Skogforsk) report number 1187–2024.
This is to align reporting with the upcoming ISO standard ISO 13391, a
framework for value chain calculations for wood and wood-based products. In
the table, the values for storage and substitution for 2023 have been re
calculated in line with the new model in order to render the data comparable.
Carbon storage in Holmen’s forests is based on growth of the volume of standing
timber in line with harvesting calculations. Net storage in land is calculated in
line with Sweden’s official climate reporting to the UN, conducted by the Swedish
Environmental Protection Agency using the IPCC’s methodology, which is based
on an inventory of 30 000 test areas over a 5-year cycle.
Net storage in wood and fibre products is based on the IPCC’s methodology.
According to the IPCC, fibre products have a half-life of 2 years and wood
products 30 years. The methodology takes into account the fact that a certain
amount of old wood and fibre products rotted or was incinerated during the year
and thus stopped binding carbon dioxide.
Holmen’s wood products replace fossil-based materials such as concrete and
steel, while paperboard and packaging paper replace other packaging, e.g.
plastic packaging. Previous calculations assumed that all fibre products go
straight to energy recovery. In the new calculation methods, the fibre products
are divided into additional categories, where a calculation factor for avoided
emissions has been identified for the categories paperboard and packaging
paper. The calculation factor for wood and fibre products is taken from
Skogforsk’s database of calculation factors.
Bioenergy from branches and treetops and by-products from Holmen’s
operations replace other, fossil, fuels. The calculation factor is based on data
in the Renewable Energy Directive.
Calculation of renewable electricity production from wind and hydro power
that replaces fossil energy is not included in the climate benefit calculation
model in line with Skogsforsk report number 1187–2024. Therefore, a separate
calculation has been made, in which wind and hydro power are assumed to
substitute for coal and gas power via electricity exports to Europe. The dis
placement factor for wind power is based on data from the wind power climate
benefit network, Nätverket Vindkraftens klimatnytta, and the calculation factor
for hydro power is based on data from the Association of Issuing Bodies (AIB).
Holmen’s emissions are calculated for scope 1, 2 and 3 in line with the GHG
Protocol. Today the majority of Holmen’s emissions are generated from
purchases of inputs and from transport to and from Holmen’s industrial facilities.
More information on calculations and sources is provided at holmen.com.
Outcomes emission reduction targets
To monitor progress towards the emission reduction targets, GHG emissions
(expressed as carbon dioxide equivalents, CO2e) are calculated annually, see
outcomes on page 103. CO2e are divided into three categories: emissions per
tonne of paper and pulp, emissions from transport and emissions from forest
machinery, and are compared with the base year 2019. Holmen’s emission
reduction targets do not include purchases of carbon credits to offset CO2e
emissions.
Emissions per tonne of paper and pulp are calculated according to the total
amount of scope 1 and scope 2 (market-based) and parts of the emissions
from scope 3, category 3, Fuel and energy-related activities, regarding emissions
in the value chain for electricity production divided by the total amount of
paperboard, paper and pulp produced. The transport target includes emissions
from scope 3, category 3 Fuel and energy-related activities, category 4,
Upstream transport and distribution and category 9, Downstream transportation
and distribution. The proportion of emissions from suppliers with climate targets
is calculated based on the amount of purchased goods that come from suppliers
with climate targets. The data is based on first-hand contact with suppliers.
Electricity production, MWh
Electricity production from hydro and wind refers to production from wholly
owned installations and Holmen’s share of partly owned installations.
Fuel and energy purchased or acquired, MWh
Total energy purchased or acquired in Holmen’s consolidated operations,
reported by energy source and referring to electricity, heat and fuel
consumption. Does not include recovered energy in Holmen’s processes.
Externally supplied energy, MWh
Only refers to supplied energy. Electricity production from hydro and wind refers
to production from wholly owned installations and Holmen’s share of partly
owned installations. District heating refers to supplied heat energy from Hallsta
Paper Mill and Iggesund Mill. Externally supplied electricity refers to electricity
supplied by Workington Mill.
Greenhouse gas emissions ’000 tonnes CO2e
Total direct and indirect (scope 1 and 2) greenhouse gas emissions (GHG) for
Holmen’s consolidated operations. Emissions are reported for the whole Group.
Greenhouse gas emissions have been calculated based on the principles in the
GHG Protocol, in line with the principle of operational control.
Direct GHG emissions (scope 1) are calculated based on emissions of carbon
dioxide (CO2) from incineration of fossil fuel, emissions of methane (CH4), nitrous
oxide (N2O), refrigerants (HFCs) and emissions of fossil carbon dioxide in
conjunction with preparation and handling of biofuels. The reported direct
emissions are equivalent to scope 1 emissions in the GHG Protocol. All reported
greenhouse gas emissions have been recalculated as carbon dioxide equivalents
(CO2e). Biogenic emissions amounted to 1.7 million tonnes of CO2 in 2024.
The effect of the different gases is calculated in line with the following GWP
(Global warming potential):
1 kg carbon dioxide (CO2) = 1 kg CO2e
1 kg methane (CH4) = 28 kg CO2e
1 kg nitrous oxide (N2O) = 298 kg CO2e
Indirect GHG emissions (scope 2) are calculated based on Holmen’s electricity
consumption. Reported indirect emissions include GHG emissions from
purchased electricity and are equivalent to scope 2 emissions under the GHG
Protocol. Holmen reports indirect emissions in line with both the location-based
method and the market-based method. Location-based emissions in scope 2 are
calculated using emission factors from the Association of Issuing Bodies (AIB).
Market-based emissions in scope 2 are calculated using emission factors based
on environmental product declarations (EPDs) from Vattenfall.
Indirect GHG emissions (scope 3) are reported for emissions related to
purchased goods and services, capital goods, fuel and energy-related activities,
upstream transport and distribution, business travel, employee commuting and
downstream transportation. Calculating and reporting of Holmen’s scope 3
emissions follow the GHG Protocol’s guidance for calculating scope 3 emissions.
Holmen’s scope 3 emissions largely comprise purchased goods and services and
downstream transportation.
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Pollution
Today the air in Europe is cleaner than it was half a century ago when the EU
introduced stricter air quality controls in the form of preventive actions and
measures to combat environmental pollutants. Access to clean water is vital to
human health and well-being. Although levels of aquatic pollutants fell between
1990 and 2010, more than 50 per cent of the reported surface water in Europe
has failed to attain good ecological status. Actions at European, national and local
level have helped to reduce pollutants from the transport, industry and energy
sectors. However, studies of real-time measurements show that air pollution still
constitutes a risk to the environment and human health. Air quality in Sweden is
good, also at regional level at Holmen’s material sites, but pollutants to air and
water can spread a long way and therefore are not only regional impacts.
Holmen’s operations cause emissions to air and water and every material site
requires an environmental permit for industrial production. The environmental
permits set out approved emission levels for different substances and the total
environmental impact of the operations is regulated in the individual permit
process under the Swedish Environmental Code and the Industrial Emissions
Ordinance, which states that the best available techniques (BAT) must be used.
The environmental permit process works in a similar way in Sweden and the UK.
Impact, risk and opportunity management
Description of the processes to identify and assess material pollution-
related impacts, risks and opportunities
Holmen’s impact on the environment and human health is established and
assessed in the environmental permit process. When an operation applies for an
environmental permit, the material site must identify its actual and potential
pollution-related impacts. This is done in a statutory process with the stated
supervisory authority. In Sweden, this is the responsibility of the County
Administrative Board. Where environmentally hazardous operations are carried
out, consultation documentation is produced describing at an overarching level
how changes in the operations might impact on affected communities and the
environment. Information in the consultation documentation forms the basis for a
delimitation consultation where authorities concerned and the general public are
given an opportunity to ask questions and voice opinions on the operations. Once
the consultation is complete, a consultation report is written and the operation
applying for a permit is given the opportunity to adapt its application in response
to the concerns of the various parties. The next step in the permit process is for
the applicant to produce a technical description and an environmental impact
assessment. These two documents form the basis of the application for an
environmental permit.
The technical description must set out how the applicant plans to implement
changes at the site. The environmental impact assessment is extensive and
requires investigations of the expected impact on air, water and soil, noise
impacts, waste management and risk assessments. Biological studies may be
required to investigate pollution-related impacts in aquatic areas at the site
location, and permit requirements may include demands for follow-up studies.
The permit application is then sent to the Land and Environment Court, where the
applicant requests the desired conditions for its operations. When the Land and
Environment Court considers that the application is complete, the application is
circulated to a large number of government agencies, affected municipalities and
other stakeholders for consultation. There may be several rounds of consultation
in which statements on the application can be made, as the parties may have
different views on which conditions should be imposed on the operations. Next
there is a negotiation in the Land and Environment Court with all parties present,
before a decision is made on the case. The parties involved in the process are also
able to appeal against the decision to the Land and Environment Court.
Holmen’s material risks of pollution of air, water and land are linked to legislation,
technology and reputation. Production disruptions can cause breaches of the
emission conditions set for the material site and have negative environmental
impacts. Breaches of the conditions not only cause reputational damage but may,
if they occur repeatedly, also lead to the supervisory authority deciding that the
environmental permit must be reassessed. Updated conditions regarding best
available techniques (BAT conclusions) in line with the Industrial Emissions
Ordinance can mean that Holmen’s material sites do not meet approved emission
levels and may require investment. Under Swedish law, Holmen also has
commitments to investigate and where necessary remediate discontinued
material sites whose historic operations led to pollution of land and water.
Material sites with a permit to run environmentally hazardous operations are
checked regularly by the supervisory authority in the form of inspection visits.
At the inspection, any incidents that have occurred which have been reported to
the authority are discussed, including their environmental impacts, if any.
In cases where incidents lead to non-compliance with permit conditions, the
operator may be charged an environmental penalty.
Neighbouring communities are affected by Holmen’s operations and where the
community has concerns, there are processes in place for every material site to
receive and handle questions. For more information about contact channels, see
the section on Affected communities on page 115.
Policies related to pollution
Holmen’s industrial installations are under strict environmental controls. Besides
Holmen’s environmental and energy policy, risks and pollutants are regulated by
acts and ordinances that every material site with environmentally hazardous
operations must comply with. A complete list of the acts and ordinances that
affect operations must be available at each material site.
Holmen’s environmental and energy policy describes how the material site is to
follow applicable standards and states that they must be ISO certified, with the
aim of identifying, prioritising and tackling the operation’s environmental impact.
In its operations, Holmen is to work in line with the precautionary principle, such
that harm and detriment to human health and the environment are prevented,
hindered or mitigated. In the event of process disruptions, the environment takes
precedence over production. In ongoing and discontinued operations, the
environmental impact must be acceptable to humans and the environment.
Investment needs must be taken into account before changes to environmental
permits. The policy covers the whole Group. The President and CEO has
overarching responsibility for the issues covered by the environmental and energy
policy and these are delegated in writing in one or more steps.
All Holmen’s material sites have ISO-certified environmental management
systems. The purpose of ISO certification is to aim to constantly improve the
environmental situation at the site location. Certification differs from the
environmental permit in that the permit seeks to ensure an acceptable level for
health and the environment, while the environmental management system seeks
to develop the work of the material site on environmental matters. Certification
means that environmental work must be part of all processes, from policies and
procedures on environmental work to management responsibility and risk
analyses. Certification requires internal audits to check that the criteria of the ISO
standard are met. Audits are carried out regularly by external experts to check
that the material site is complying with the certification.
Environmentally hazardous process chemicals are used at several of Holmen’s
site locations. To avoid incidents and emergencies, the Seveso legislation is in
place setting out actions to prevent and limit the consequences of serious
chemical accidents. The environmental permits for the site locations concerned
contain conditions covering the handling of such process chemicals, and regular
exercises are carried out to ensure that the operation complies with the
legislation.
Actions and resources related to pollution
The environmental management system sets the framework for constant
improvement efforts at every material site and requires analysis of key
environmental aspects. The analysis results in an environmental aspects register
which addresses the most important environmental matters. Based on this
register, every material site must set up environmental targets, which may require
actions to achieve. During the reporting period, actions regarding water treatment
have been taken at the industrial installation in Workington and actions regarding
dust treatment have been carried out at Linghem Sawmill.
An operation must prevent and control pollution so as to do no significant harm
under environmental objective 4 of the EU’s Taxonomy Regulation. For Holmen’s
taxonomy activity 1.3 Forest management, work is regulated by the Swedish
Forestry Act, in which nature conservation and environmental values must be
taken into consideration. There are also regulations and general advice on
handling pesticides and nitrogen fertiliser for Holmen’s forest certification. For
activity 4.8, Electricity generation from bioenergy, Holmen’s industrial
installations are below the permitted thresholds in line with best available
techniques.
Under Swedish law, Holmen also has commitments to investigate and, where
necessary, remediate discontinued material sites. In consultation with the
environmental authorities (County Administrative Board or municipality), Holmen
investigates polluted industrial sites where Holmen previously conducted
industrial operations. Remediation may involve future costs, and funds are
earmarked for the costs judged to be incurred. In 2024, studies were in progress
at different stages regarding the former sawmill in Stocka, the sulphite mills at
Holmen Annual Report 2024 105
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Strömsbruk, Domsjö, Loddby and Mariannelund, the paper mill at Silverdalen and
the groundwood mill at Bureå. The former sawmill area in Lännaholm was
remediated during the reporting period.
Metrics and targets
Targets related to pollution
Holmen’s overarching objective is for operations to be run within the permits
awarded and developed within the management system framework. The
common environmental objective for Holmen’s material sites is to restrict
emissions to levels set in conditions for environmental permits and in line with
best available techniques. Based on the analysis every site carries out regarding
key environmental aspects in its operations, targets must also be set for
prioritised environmental matters.
Pollution of air, water and soil
In 2006, a European pollutant emissions register was set up to demonstrate
progress in reducing emissions and to provide the public with easily accessible
information on environmental conditions and environmental trends in Europe.
The register enables social, economic and health trends to be monitored and
analysed in relation to emissions. The threshold for different pollutants is
constantly updated to capture at least 90 per cent of emissions of every
pollutant from operations with a duty to report. Holmen’s operations are covered
by this reporting obligation, which means that emissions to air, water and soil
that are higher than the threshold for the pollutant must be reported to the
register on an annual basis.
The table below shows emissions from Holmen’s sites where emissions were
higher for different parameters than the stated threshold value during the
reporting period. During the year, there were 14 exceedances relating to
emissions to air and water. Action was taken in all cases.
Emissions to air, tonnes
2024
2023
Sulphur dioxide (counted as sulphur, S)
59
54
Nitrogen oxides
946
892
Particulates
62
53
Methane
45
42
Nitrous oxide
39
37
Fossil carbon dioxide, ’000 tonnes
46
41
Biogenic carbon dioxide, ’000 tonnes
1 731
1 676
Emissions to water, tonnes
2024
2023
AOX (chlorinated organic matter)
34
36
Nitrogen
207
182
Phosphorus
20
18
COD (organic matter), ’000 tonnes
17
17
Suspended solids (SS), ’000 tonnes
3.0
3.8
The environmental permits contain conditions that require self-inspection
programmes at the installations. These inspection programmes describe what is
to be measured, at what times and by what method. The self-inspection
programme must be approved by the supervisory authority. Where conditions
require daily checks there are accredited laboratories at Holmen’s production
faclilities which perform these analyses. There are also automatic measurement
systems that are constantly calibrated, as well as external accredited
laboratories used for certain analyses. What all the analyses that are to be
conducted under the self-inspection programme have in common is that they are
performed in line with internationally adopted standards. Additionally, there are
pollutants that require periodic measurement. Finally, there are measurement
methods calculated based on public pollution factors, which refer to emissions
of metals to air from boiler thermal input.
Complying with conditions laid down in permits requires significant efforts in
collecting and measuring data. Each site has processes and procedures for
measuring pollutants in line with the self-inspection programme stated. Data
collected is used for internal and external reporting.
Holmen’s operations are covered by the Industrial Emissions Ordinance, which
seeks to reduce pollutants by applying the best available techniques, known as
BAT conclusions. This applies to all industrial installations in the EU, and in the
UK, which has implemented legislation on best available techniques. In Sweden,
best available techniques apply in parallel with environmental permits.
BAT conclusions with emission levels, BAT Associated Emission Level (BAT-AEL),
refer to emission levels and are stated as a range where the upper level for
emissions is binding, unless special derogation has been granted, and the lower
level shows emissions of the best installations in Europe. Holmen’s UK site in
Workington has been granted dispensation regarding emissions to water.
Investments in a new water treatment plant have been made but there are still
problems with exceeding levels at the end of the reporting period. The
exceedance is not judged to have any significant impact on the environment.
The site is constantly in contact with the supervisory authority in the UK.
The table below shows Holmen’s site locations which, besides running
operations that require a permit, also comply with the Industrial Emissions
Ordinance and its associated conditions. It is also at these installations that
emissions of pollutants to air, water and soil occur.
The years in the table denote the year in which the most recent environmental
permit was obtained and when management system certificates were first
issued. Certification means that procedures are in place for planning,
implementation and follow-up, as well as actions to enable continuous
improvement in the work on the various management systems. Certificates can
be viewed at holmen.com.
Environmental permits and management system certification

Certification
Production facilities1)
Environmental permits
Environment
ISO 14001
Energy
ISO 50001
Quality
ISO 9001
Occupational health and safety
ISO 45001
Iggesund Mill2,3)
2018
2001
2005
1990
2016
Workington Mill3)
2022
2003
2015
1990
2005
Hallsta Paper Mill
2000
2001
2005
1993
2012
Braviken Paper Mill
2023
1999
2006
1996
2015
Iggesund Sawmill
2014
1999
2006
1997
2017
Braviken Sawmill
2010
2011
2011
2011
2017
Linghem Sawmill4)
2003
2023
2023
2020
Bygdsiljum Sawmill4)
2018
1999
2022
2023
Kroksjön Sawmill4)
2020
2005
2022
2023
1) Holmen Forest is certified under ISO 14001 and ISO 45001 and forest operations have forest management and chain-of-custody certification. All production installations at
which wood raw material is used have chain-of-custody certification.
2) Port activity at Skärnäs Terminal, alongside Iggesund Mill, is included in the environmental permit. In addition, notifiable operations take place at the production unit in
Strömsbruk. Certification includes the production unit in Strömsbruk and operations at Skärnäs Terminal.
3) Iggesund Mill and Workington Mill have been certified under the food safety management system FSSC 22000 since 2021.
4) Work is in progress to include Linghem, Bygdsiljum and Kroksjön in the business area Wood Products’ ISO 9001 certificates. This is expected to be completed in 2025.
106 Holmen Annual Report 2024
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Biodiversity
Strategy
Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
Holmen owns 1.3 million hectares of land in Sweden, almost 1.2 million hectares
of which is productive forest land. The large forest holding is the basis of opera-
tions, where at Holmen’s own industrial sites, the growing trees are refined into
everything from wood for climate-smart building to renewable packaging, maga-
zines and books, while at the same time hydro and wind power are generated on
Holmen’s own land. Approximately half of the wood required by its industrial op-
erations comes from Holmen’s own forests, while other wood is bought in from
private forest owners. Holmen’s nature conservation strategy combines active
and sustainable forestry with protecting the diversity of habitats and species.
The strategy has been developed in partnership with other forest companies and
Swedish government agencies to ensure robust and adaptable nature conserva-
tion that addresses biodiversity and ecosystem-related risks.
The nature conservation strategy is designed in line with the Swedish nature
conservation model in which consideration is taken at several levels – from
ecological landscape planning to taking individual stands and trees into consid-
eration. Local conservation plans are used to identify and protect areas with high
conservation value and in the managed forests, conservation is adapted to needs
and the conditions of each stand. The basis for this work is the forest sector’s
common objectives for good environmental conservation, which are produced
jointly with the Swedish Forest Agency based on current forest policy and
industry knowledge and Sweden’s targets in forest and environmental policy.
Holmen’s nature conservation strategy thus encompasses both identifying and
managing areas of high conservation value and incorporating nature conserva-
tion into active forestry.
In total, approximately 20 per cent of Holmen’s forest area is used for different
types of environmental purposes. This includes voluntary set-aside productive
forest land, tree-bearing non-productive land which is protected by law, and
environmental conservation in the managed forest. Holmen’s environmental
conservation also includes renewable energy generation from wind and hydro
power, which can impact biodiversity and therefore requires specific assessment
processes and action plans.
Material impacts, risks and opportunities and their interaction with
strategy and business model
Holmen’s business depends on healthy ecosystems and the ability to pursue
active forestry. Growing requirements to set land aside for purposes other than
forestry can lead to lower harvests and pose a business risk. In the same way,
legislation on land and water use can inhibit the expansion and generation of
renewable energy, which can affect Holmen’s opportunities to play its part in
the transition to a fossil-free energy system.
Holmen has identified two main material impacts, risks and opportunities
related to biodiversity and ecosystems: the impact of forestry on the local envi-
ronment and water, and the impact of hydro power generation on landscapes
and aquatic environments. Potential local impact on biodiversity from Holmen’s
production installations is described under Pollution.
Impacts of forestry on and dependency on biodiversity
Managing the forest can affect ecosystems and forest-dwelling species which
are dependent on different habitats for their survival. Shorter times from
regeneration to harvesting can, for example, lead to a loss of habitats if there
is a reduction in the number of old and dead trees. Forestry can also affect the
structure of the forest landscape by creating a more fragmented landscape with
homogenous forest stands. In some cases, this can mean that species depend-
ent on larger, connected and richly varied forests find it more difficult to spread
and find suitable habitats. Modern forest management has also led to a reduc-
tion in natural disruption in the form of forest fires, which impacts negatively on
some species as forest fires are a natural part of the ecosystems.
Systemic and physical risks related to biodiversity are closely interwoven with
climate change. Higher temperatures and changing precipitation patterns in-
crease the risk of pests such as fungi and insects, for example, which threaten
the growth and quality of the forest. See the section on Climate change for more
information about the impact of climate change.
The impact of energy production on biodiversity
Holmen’s hydro power production affects water flows, which can disrupt natural
habitats for fish and other aquatic organisms. Water regulation can also affect
the reproduction and migration of species dependent on free migration routes in
watercourses. Wind power development can lead to fragmentation of habitats
and disturb species sensitive to changes in their habitat. At the same time, areas
surrounding wind turbines can benefit some species, such as plants and insects,
by creating more open environments with more light and more varied vegetation.
Impact, risk and opportunity management
Description of processes to identify and assess material biodiversity
and ecosystem-related impacts, risks and opportunities
Holmen works systematically to assess impacts, risks and opportunities for bio-
diversity and ecosystems, both in forestry and in energy production. The impact
of forestry on and dependency on thriving ecosystems is mainly determined by
ecological landscape planning and nature conservation assessments, while en-
vironmental impact assessments and inspection programmes are used to under-
stand the impact of energy generation on biodiversity. Wind and hydro power are
also regulated by extensive permit processes that include impact on biodiversity.
Process to assess the impact of forestry on biodiversity
Ecological landscape planning and nature conservation assessments are impor-
tant tools in Holmen’s assessment of the impact of forestry on biodiversity and
ecosystems. Landscape planning maps the existing environmental assets and
local conservation plans identify areas with a lack of key habitats. The plans are
constantly updated, providing a tool for understanding the impact of forestry
over time. Nature conservation assessments supplement landscape planning by
providing a detailed picture of the conditions in specific forest areas. Nature con-
servation assessments identify environments and structures that are important
to biodiversity such as older forests and dead wood. These assessment criteria
help Holmen to make informed decisions on how the forests are to be managed
over the long term so as to protect existing natural assets and create new ones.
Holmen also uses the Swedish Species Information Centre as a tool for assess-
ing the impact of forestry on biodiversity and ecosystems. The Swedish Species
Information Centre publishes the Red List, which describes the state of species
in Sweden, focusing on species that are declining or under threat. Using the
Swedish Species Information Centre’s data enables Holmen to identify and
protect environments and structures that are important for the conservation
of threatened species.
Holmen has also established four Knowledge Forests to increase knowledge
about the impact of forestry. Holmen’s Knowledge Forests are land specifically
designated to collect and pass on knowledge about the forest. The Knowledge
Forests are carefully selected for their unique biological conditions and are used
for research on the ecosystem dynamics and the impacts of forestry.
Process to assess the impact of energy generation on biodiversity
Environmental impact assessments are conducted to investigate the impact of
hydro power generation on aquatic ecosystems, including fish migration routes
and water quality. These assessments follow the national plan for reviewing
hydro power plant permits, where biodiversity is weighed against other societal
benefits. Follow-up programmes are implemented to monitor how water flows
and ecosystems are affected during power plant operation.
The permit process for new wind energy development begins with extensive
environmental impact assessments, where the natural environment is surveyed
to identify habitats and species that are particularly sensitive to wind power.
To ensure compliance with the environmental conditions, operations are
monitored via inspection programmes that incorporate monitoring the impact
of operations on birds, bats and other wildlife.
Policies related to biodiversity and ecosystems
The organisation and management of environmental activities are stipulated
in Holmen’s environmental and energy policy. In the event of disruptions, the
environment takes precedence over production. In ongoing and discontinued
operations, the environmental impact must be acceptable to humans and the
environment.
Holmen’s forestry is to be conducted with the aim of achieving high-volume,
sustainable production of raw material, so that the growing forest and its prod-
ucts make a positive contribution to the climate. The long-term productive
capacity of the soil must be safeguarded, aquatic environments protected and
historically valuable heritage environments preserved. Furthermore, the policy
states that Holmen’s forests are to be managed responsibly in a way that ensures
the long-term survival of native species in the forest landscape. Similarly, the
impact of wind and hydro power on biodiversity is to be taken into account.
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Holmen’s material sites are certified under the environmental management
system ISO 14001. Furthermore, forest operations have forestry and chain-of-
custody certification. All Holmen’s production facilities at which wood raw material
is used have chain-of-custody certification. Hydro power generation is regulated
by water judgements, which set threshold values for water levels and rivers.
Due diligence is to ensure that Holmen’s raw materials and products are de-
forestation free, to comply with the EU’s upcoming Deforestation Regulation.
The origin of all wood must be traceable. Wood purchasing must also comply
with rules and guidelines from the Swedish Forest Agency and the relevant
certification system where applicable. Environmental conservation objectives
are observed in harvest contracting in Sweden unless otherwise agreed. The
requirements of the Swedish Forestry Act are the minimum level of environmen-
tal conservation when buying wood. Before wood is bought from private forest
owners in the form of felling rights in Sweden, the area’s conservation value must
be assessed and if a site has high conservation value, additional information
must be obtained before a decision to purchase is made. Holmen will not buy
wood from forests that:
• Are key habitats in Sweden according to the Swedish Forest Agency’s definition
and methodology.
• Are protected for nature conservation reasons.
• Are primary forests, that is to say layered natural forests of differing age with
ample presence of old, large trees and ample dead wood in various stages of
decomposition.
• Have been harvested illegally.
• Originate from genetically modified trees.
• Grow in areas in which human rights are actively impeded.
• Are High Conservation Value Forests.
Actions and resources related to biodiversity and ecosystems
Holmen’s work for biodiversity is based on a mitigation hierarchy, which means
seeking to avoid negative impacts on biodiversity, ecosystems and ecosystem
services. When this is not possible, actions are taken to minimise impact, partly
by creating or improving habitats. Holmen’s nature conservation work is founded
on three elements: environmental considerations in managed forests, conserva-
tion management and voluntary set-asides.
Environmental considerations in managed forests
Each year, Holmen invests approximately SEK 200 million in silviculture and
constantly works to improve everything from seedlings to nature conservation
through research, development and training.
Several actions are carried out as part of active forestry to preserve and
strengthen biodiversity. High stumps and dead wood are saved to provide
habitats for wood-living insects and fungi. Buffer zones along watercourses are
preserved to protect aquatic species and improve water quality. During harvest-
ing, buffer zones are also left with trees and bushes intact to protect biodiversity.
Large trees, both living and dead, are left as important nesting and feeding sites
for birds and insects.
Conservation management
As a natural part of forestry, Holmen also carries out actions to develop or
strengthen nature conservation, for example by burning forests or removing
invasive spruce trees to benefit broadleaves. Prescribed burnings are carried
out under controlled conditions to create fire-damaged timber, an important
habitat for many threatened species. Holmen also works to restore wetlands
and create richly varied forest landscapes. Every year, Holmen carries out habitat
management on approximately 400 hectares to improve biodiversity and help
create healthy, resilient ecosystems.
Voluntary set-asides
Holmen works to increase biodiversity and strengthen ecosystems by perform-
ing actions in formally protected forest and voluntary set-asides. In formally
protected areas, such as nature reserves, natural processes are allowed to
continue unhindered, benefitting species that require untouched forest. Holmen
has identified more than 9 000 areas that have voluntarily been chosen not to be
harvested as they have high conservation value. The fact that these areas are set
aside voluntarily or managed for purposes other than wood production sees
Holmen relinquishing approximately 9 per cent of potential annual wood volume.
The set-aside forests are spread across all of Holmen’s forest holdings.
Energy generation actions
When generating hydro power, aquatic ecosystems are to be preserved by adapt-
ing water flows and protecting fish migration routes. Hydro power generation
complies with strict environmental permits, known as water-rights court ruling,
to ensure that impacts on ecosystems are minimised. Environmental impact
assessments are carried out to assess the impact on aquatic species, and
inspection programmes monitor water quality and ecosystem health.
When developing wind power, the actions include environmental impact assess-
ments, where surveys identify sensitive species and environments that may be
affected. This can lead to adapting the location of turbines to minimise impact
on birds and bats, and adapting forestry in surrounding areas. Furthermore, in-
spection programmes are set up to monitor the impact of operations and ensure
compliance with environmental requirements over time.
Metrics and targets
Targets related to biodiversity and ecosystems and impact metrics
related to biodiversity and ecosystems change
Holmen’s biodiversity and ecosystem target linked to forestry is that all naturally
occurring species can thrive in the forest landscape in the long term.
Biodiversity is affected by several factors, but in order to monitor developments
and evaluate actions carried out, Holmen bases its work on inventory data from
the Swedish National Forest Inventory at the Swedish University of Agricultural
Sciences (SLU). Five indicators have been identified showing how a selection of
important forest habitats are developing:
• Area of old forest
• Area of old forest with specific indications of nature conservation value (SIN)
• Volume of dead wood per hectare
• Volume of large broadleaves per hectare
• Volume of broadleaves per hectare
The indicators represent different types of biotopes and substrates which to-
gether provide a broad picture of the conditions for biodiversity on Holmen’s
land. When choosing indicators, Holmen has also taken into account the Swedish
Forest Industries Federation’s biodiversity targets and has conducted a stake-
holder dialogue to adapt the choice of indicators and make them comparable
with other Swedish forest companies. The ambition is for the selected indicators
to show a positive trend over time.
Because nature conservation is integrated in Holmen’s forestry strategy, the
biodiversity indicators have developed positively over the past 30 years. This is
verified by statistics from independent surveys carried out by the National Forest
Inventory at SLU.
The target for Holmen’s energy production is to increase the generation of
renewable energy on its own land with no negative impact on biodiversity.
The boundaries for acceptable impact on affected ecosystems are determined
by the environmental permit concerned.
Accounting principles
Biodiversity indicators
Data collection is based on sample areas in Holmen’s own holdings of productive
forest land. To obtain a representative reference and current value, the values
are based on five-year rolling averages. 1996 is the first year in which the
Swedish National Forest Inventory was able to report a five-year average,
following the revision of the Forestry Act in 1993. The current value for 2021
is the most recent available five-year average.
Old forest is defined as forest over 140 years old in northern Sweden and over
120 years old in southern Sweden. Old forest with specific indications of nature
conservation value (SIN) cover high stand age, large trees, dead wood and strati-
fication. The first year with an available five-year average for SIN is 2005, which
is why SIN has a different reference value.
Biodiversity indicators
Indicator
Holmen’s starting
point 1996
Holmen’s current
situation 2021
Holmen’s
development
Old forest, proportion of productive forest land
4.5%
6.3%
41%
Old forest with SIN, proportion of productive forest land
2%
3.5%
73%
Dead wood, m3 growing stock, solid over bark/ha
5.6
10.2
81%
Broadleaves, m3 growing stock, solid over bark/ha
14.4
16.5
15%
Large broadleaves (> 35 cm) m3 growing stock, solid over bark/ha
0.8
1.2
61%
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Resource use and
circular economy
Impact, risk and opportunity management
Description of the processes to identify and assess material resource
use and circular economy-related impacts, risks and opportunities
Holmen’s business model is circular. The forest ecocycle provides a renewable
raw material that is refined at Holmen’s own industrial sites. As the lifecycle of
the products draws to a close, they can be recovered and come back to life in a
new form, or be put to use as bioenergy. Holmen’s environmental management
system identifies relevant environmental aspects linked to resource use, waste
management and material flows for the respective material site. This covers
analysing the products’ lifecycles to assess reuse opportunities and whether
and how the material can be recovered, reworked or reused in production. The
assessment seeks to determine which environmental aspects have a significant
or long-term impact and to identify the risks and opportunities that can be linked
to material environmental aspects.
Holmen has identified two material impacts, risks and opportunities related to
resource use and circular economy, which are described below.
Production of renewable products
In producing products from renewable raw material, which are designed to be
reused and recovered, Holmen contributes towards a circular economy and a
functioning recovered paper system. Where downgraded material arises in the
production process, other potential areas of use are identified.
Waste generated by industrial production
Holmen uses by-products and waste as raw materials in its own processes,
reducing the need for new raw materials and reducing the amount of waste that
needs to be dealt with. By-products and waste that cannot be dealt with in
Holmen’s own processes are sold to external partners. The use of chemicals is
necessary in the production of paperboard and paper to give products specific
characteristics. Some of these chemicals form waste, some of which is classified
as hazardous waste, which can pose environmental risks.
Policies related to resource use and circular economy
Holmen’s environmental and energy policy covers resource use, chemicals,
by-products and waste. The environmental and energy policy states that envi-
ronmental and energy work is to be characterised by a holistic approach where
the Group’s forests, processes and products are part of a natural ecocycle. The
policy further states that raw materials must be used efficiently, waste must be
minimised, by-products arising in operations must be dealt with and used for
different purposes and constant improvements must be sought.
Forestry is to be conducted with the aim of achieving high-volume, sustainable
production of wood raw material, so that the growing forest and its products
make a positive contribution to the climate. Forests should be managed respon-
sibly in a way that ensures the long-term survival of native plants and animals in
the forest landscape. The origin of all wood must be traceable.
Actions and resources in relation to resource use and circular economy
Holmen works with customers and industry organisations to develop products
and processes that can make recycling easier and do their bit for the circular
economy. The greatest value added governs what is manufactured from the
different parts of the wood raw material. Sawing and drying are optimised at
Holmen’s sawmills to minimise waste. Investments in expanded capacity and
processing have increased Holmen’s production of wood products and timber
products for construction and joinery. During the reporting period, an investment
has been made in timber sorting and a new planing mill at Iggesund Sawmill,
which will increase the sawmill’s capacity by 20 per cent. In the same period,
Holmen has also invested in increased capacity and a broader palette of paper
products at Braviken Paper Mill.
Holmen has carried out several projects to identify alternative areas of use
for the waste that arises in the production process. Following treatment, some
waste, such as biological and chemical sludge from treatment plants and green
liquor sludge from the sulphate pulp process, can be used as a soil improver,
road construction material or to cap landfill sites. As a result of efforts to find
alternative areas of use, the amount of waste sent to landfill has reduced and
now constitutes only 2 per cent of the waste that arises at the production
facilities.
Every year, contracts are procured with commercial recycling companies to deal
with the waste that arises and the Group works constantly to separate different
waste fractions to ensure that they can be recovered and used for meaningful
material purposes as much as possible.
Constant work is carried out to monitor chemicals harmful to health and the
environment, with a focus on chemicals containing substances listed in REACH
(Registration, Evaluation, Authorisation and restriction of Chemicals). REACH
also sets requirements on which substances hazardous products are allowed to
contain, which are followed up regularly.
Metrics and targets
Targets related to resource use and circular economy
Holmen’s operations are to be run within the permits awarded and developed
within the management system framework. The wood products business is to
grow through products and solutions for sustainable building, and the paper-
board and paper business is to advance by developing and offering renewable
products made from fresh fibre. The climate benefit that Holmen’s wood prod-
ucts and paperboard and paper products contribute is reported in the section
on Climate change, see page 101.
Holmen has no specific measurable targets for resource use and circular
economy, and instead manages this work based on the Group’s environmental
and energy policy. Continuous monitoring of relevant key figures is carried out
for every site and at Group level to follow up this work, providing an overview of
the operation’s amounts of waste, resource use and other environmental factors.
Regular data collection and analysis is used to monitor developments, making
it possible to identify trends, nonconformities or potential negative changes.
Corrective action can be taken if necessary. Chemical handling is reviewed
regularly by an external partner conducting periodic inspections, supervisory
visits and audits, and risk analyses initiated by the site itself. Use of chemicals
is reported to the supervisory authority annually.
Holmen conducts its operations within the framework of environmental permits,
which means that each site location must comply with specific environmental
requirements and conditions laid down by the Land and Environment Court.
Each site annually submits environmental reports containing information about
resource use, waste, actions and any noncompliances.
Environmental impacts such as resource use and waste are monitored and
measured within the framework of the site location’s environmental manage-
ment system. The process includes regular internal and external audits and
monitoring environmental aspects and impacts to ensure compliance and
identify improvement potential.
Resource outflows
Products and materials
The forest ecocycle produces a renewable raw material which is refined into
products that Holmen’s customers can refine further in their turn. As the lifecycle
draws to a close, the products can be reused or recovered and come back to life
in a new form, or be put to use as bioenergy. Wood products can be reused as
other wood products, while fresh fibre-based paperboard and paper products
that are used for packaging, books and magazines and then recycled feed a re-
covered paper system that constantly needs topping up with fresh fibre in order
to function. In this way, Holmen’s products based on a renewable raw material
contribute to a circular material flow. Holmen works with customers and industry
organisations to develop products and processes that can make recycling easier
and do their bit for the circular economy. Holmen also uses its large land holdings
to produce renewable energy from wind and water.
Read more about Holmen’s products on pages 18–33.
Products
2024
2023
Wood products, ’000 m3
1 418
1 447
Paperboard, ’000 tonnes
575
462
Paper, ’000 tonnes
932
888
Market pulp, ’000 tonnes
76
76
Hydro and wind power, MWh
1 572 740
1 501 739
Electricity production at the mills, MWh
627 880
565 592
*See page 110 for accounting principles.
Holmen Annual Report 2024 109
Resource use and circular economy

Sustainability report
Material use rate
2024
2023
Wood, million m3sub
5.93
5.94
Purchased pulp, ’000 tonnes
84
71
Plastic granules/foiling material, ’000 tonnes
3.1
2.6
Chemicals, ’000 tonnes
131
139
Filler, pigment, ’000 tonnes
199
184
Water use, million m3
69
68
Water use
Holmen uses surface water from lakes and watercourses to transport and wash
fibres at the Group’s paperboard and paper mills. Water is also used for cooling
and steam production. The same water is often used several times and is treated
in several stages before it is discharged. Holmen’s total water use amounted to
69 (68) million m3 in the reporting period. Of the water used, approximately 4 per
cent of the raw water intake is consumed by vaporisation or captured in prod-
ucts. The use of groundwater is negligible and no seawater, produced water or
water from stressed sources is used at all. Access to surface water at Holmen’s
production installations is good and amounts of precipitation are high as a rule,
keeping watercourses topped up all year round.
Resource efficiency in the forest
Holmen manages the forest to produce as much wood as possible, and the
greatest possible value added governs what is made from the different parts
of the tree. In the first instance, planks and boards are sawn from the harvested
tree. Half of the harvest consists of large logs that are used to produce construc-
tion material used for houses and interiors, for example. The narrower part of
the tree and wood from thinning represent just under half of the harvest and are
used with residual products from the sawmills in the form of wood chips to
manufacture paperboard and paper. The remainder comprises branches, tops
and bark, which are used to produce bioenergy.
A large proportion of the wood raw material comes from the local area around
Holmen’s Swedish site locations. Harvests from Holmen’s own forests cover just
over 45 per cent of wood needs. The remaining amounts are bought in, mainly
from private forest owners in Sweden. Only a small proportion is imported. For
the paperboard mill in Workington, in the UK, approximately a quarter comes
from state-owned forests while the remainder is bought in from private forest
owners. All wood purchasing is subject to chain-of-custody requirements.
Waste and waste streams
Holmen strives to minimise the amount of waste it produces and to use the high-
est proportion possible. Solid waste mainly comprises process waste, packaging,
metal waste and electronic waste, where the greatest proportion is process
waste, which in turn comprises green liquor sludge, chemical sludge, lime mud
and fly ash. The process waste is largely recycled by being used as a raw material
in other processes, such as in the production of construction material, or by
being sent for energy recovery.
The single largest amount of waste is waste sent for energy and material recov-
ery. Only a small amount goes to landfill. Of total materials supplied, only 2 per
cent becomes waste sent to landfill, while 98 per cent goes to be recovered for
energy and material purposes.
All sites separate waste, and employees and contractors are constantly trained
in waste procedures. Holmen also works with external parties to reuse and
recover end-of-life electronics such as computers, mobile phones and monitors.
Only a small proportion of the total waste is hazardous waste, which includes
oil, paint, grease, solvents and electronics. The hazardous waste is dealt with by
authorised recycling companies. Some waste fractions are recycled and others
are destroyed under controlled conditions.
Waste, tonnes
2024
2023
Hazardous waste
1 515
1 501
To energy recovery
553
421
To material recovery
898
958
To landfill
64
122
Non-hazardous waste
101 257
92 406
To energy recovery
19 067
14 131
To material recovery
80 289
77 101
To landfill
1 901
1 174
Total waste
102 772
93 907
Accounting principles
Products
Reported amount of product refers to sold volume. Data is collected manually
from production reports at unit level and compiled at Group level. Hydro and
wind power refers to self-generated production from wholly and partly owned
power plants.
Material use rate
At Group level, wood consumption is computed net, taking into account internal
deliveries, which include roundwood and pulp chips from the sawmills.
Chemicals and fillers are stated as dry substance.
Waste
Waste generated by Holmen’s consolidated operations, reported after waste
management. The amount of waste data is collected from the waste reporting
conducted by the production units in line with the Swedish Environmental
Protection Agency’s environmental reporting regulations.
Waste is measured at weighed weight and data is largely provided by the
supplier who deals with the waste.
110 Holmen Annual Report 2024
Resource use and circular economy

Sustainability report
Own workforce
Strategy
Material impacts, risks and opportunities and their interaction with
strategy and business model
Holmen has identified material impacts, risks and opportunities related to its
own workforce.
Industrial production involves a risk of accidents
Work in sawmills and paperboard and paper mills, and at power stations and
in forests are all jobs with an inherent risk of accidents. Incidents and accidents
in the workplace have an effect on human life and health. This can also lead to
production disruptions and increased costs. Workplaces where accidents occur
can impact on Holmen’s opportunity to attract and retain a workforce.
Employees working in production are those who are most at risk of accidents.
The most significant areas of risk involve work with overhead cranes and and
vehicles with people in movement. Workers who are not employees but who are
affected by Holmen’s operations are found throughout the business. When these
people are working at Holmen’s sites, Holmen is responsible for managing their
work and providing a safe work environment for them too. Contractors working
on harvesting, silviculture and planting in the forest, ground work for Holmen’s
roads, transport workers, contractors working during planned downtime and
port personnel at Holmen’s ports are all workers in Holmen’s value chain.
Need for skilled workers
Skilled and motivated employees are key to being able to conduct business
operations with good profitability over the long term. There is a structural short-
age of many occupational groups, including employees trained in forestry and
automation technology. Recruiting skilled labour at Holmen’s site locations in
sparsely populated areas is also a challenge. Skilled labour shortages can delay
work and disrupt production.
It is important for Holmen to work actively on talent management and to create
stimulating workplaces to retain and attract a skilled workforce.
Impact, risk and opportunity management
Policies related to own workforce
Holmen’s ambition is for no work-related accidents to occur and Holmen’s work
environment policy states how work-related injuries and illness are to be pre-
vented. The policy sets out how both preventive and operational work is to be
conducted, working with employees and their representatives in all areas, focus-
ing on risks and safe behaviours. Safety equipment must always be in place and
there must be procedures for all health and safety activities, describing what is
to be done, how it is to be done and who is to do the work. Accidents, incidents
and observed risks must be reported and analysed, and result in corrective
actions. Sites with production must have certified management systems and
Holmen is to constantly improve health and safety management systems.
Holmen’s HR policy complies with relevant processes on own workforce in line
with the UN’s Guiding Principles on Business and Human Rights, the ILO Decla-
ration on Fundamental Principles and Rights at Work and the OECD Guidelines
for Multinational Enterprises on Responsible Business Conduct. The policy
states that all employees at Holmen should be able to feel a sense of security,
job satisfaction and commitment, and have the same rights, obligations and
opportunities irrespective of their status under the statutory protected grounds
for discrimination. Holmen is to work for a good relationship with trade unions
representing the workforce. In line with Holmen’s guidelines, each business area
is to prepare a long-term talent management plan each year, where recruitment
needs are identified based on the development of operations, skills shortages at
Holmen and on the labour market, as well as age structure, gender distribution,
employee turnover and other factors involved. The plan is to describe long-term
and short-term actions. Additionally, each material site is to draw up an equal
treatment plan identifying risks of discrimination and harassment and other
barriers to equal treatment. The plan also describes processes and procedures
to combat discrimination and promote equal treatment. Any cases of discrimina-
tion arising must be investigated and remedied immediately.
The guidelines on diversity and inclusive culture state that cases of victimisation
must be investigated as soon as possible, followed up and remedied. The nature
of the potential remedy is assessed based on what is considered appropriate.
See the section on Processes to remediate negative impacts below.
Both the work environment and HR policies cover all of Holmen’s own workforce.
Other policies and guidelines affecting Holmen’s own workforce and how it is
to act are found in Holmen’s Code of Conduct for its own workforce, which
describes Holmen’s approach to business conduct. The environment and energy
policy describes how work is to be carried out in line with the precautionary
principle to avoid injury and detriment to human health and the environment.
Procedures for contact with workers
Systematic health and safety work is carried out together with employees
and their representatives in all areas, focusing on risks and safe behaviours.
Holmen’s Work Environment Network meets quarterly and initiates activities,
plans actions to prevent accidents and draws up indicators based on identified
risks and risk assessments. Risk areas are followed up and reported to Group
management. Accidents must be investigated on the day they occur and reported
incidents are followed up at team meetings and local health and safety meet-
ings. All identified risks are tackled within the framework of each business area’s
management system.
Holmen advocates engagement and the opportunity to exert influence. There-
fore, employees are encouraged to engage in direct dialogue with their line
manager where necessary. There is also an opportunity to consult an immediate
superior, HR or a trade union representative at the workplace. Managers must
have an appraisal talk with their employees at least once a year.
Heads of the business areas and HR Directors are jointly responsible for provid-
ing operational information and liaising with the trade union representatives,
and for ensuring that appraisal talks and employee surveys are carried out.
There are trade union representatives at each material site in Sweden, the UK
and the Netherlands who are informed about developments at the unit or under-
taking on an ongoing basis. Trade union cooperation in other countries is in line
with the law and other forms of collective employee engagement based on local
standards. Employees are represented on the Group Board by three members
and three deputy members. The unions meet regularly in consultation groups at
Group, business area and workplace level and participate in or act as consulta-
tion bodies on various issues.
Recurring surveys of employee engagement are conducted and the results
of these surveys are compared with indices to provide an indication of the
effectiveness of contact with Holmen’s own workforce.
Processes to remediate negative impacts and channels for
own workers to raise concerns
Dialogues are conducted on remedying negative impacts regarding own work-
force in cooperation with the trade union representatives. Initially situations are
discussed in general and in the first instance Holmen tries to achieve consensus
regarding solutions. Where a trade union considers that the employer is in
breach of agreements, a fine may be charged or the incident may be reported to
the Swedish Work Environment Authority, which can lead to disciplinary meas-
ures and compensation. Holmen follows up on whether the actions taken have
been successful in consultation with the unions. If an employee suffers illness
or an accident at work, processes and procedures are in place for rehabilitation
and support in returning to work.
Employees can contact their line manager or another manager at Holmen, HR or
their union representative to raise concerns. As part of the systematic preventive
health and safety work, employees can report accidents in an online health and
safety information system (IA reporting system). Employees can also use
Holmen’s whistleblower function. There is information on Holmen’s intranet
stating how an employee can report an issue, and Holmen’s Code of Conduct
states that Holmen will not tolerate any kind of reprisals against anyone who has
reported an incident in good faith.
Taking action on material impacts on own workforce
Holmen works systematically on health and safety to facilitate a good work
environment as part of its strategy. All material sites and forest operations have
health and safety certification (ISO 45001) Committees and other groups carry
out preventive safety work to combat incidents, accidents and work-related
illness. Holmen’s employees must not be under the influence of alcohol or drugs
in the workplace. There are processes for sick leave, rehabilitation and work
adaptation on returning to work. Employees are also offered a fitness allowance
and regular health checks.
In 2024, a Group-wide project was launched to improve the safety culture
in the Group. Holmen’s Work Environment Network is tasked with managing
and coordinating this work, which is expected to be concluded by the end of
2025. The aim of the project is to create commitment and greater consideration
for each other’s health and safety. Success is measured in accident statistics
and recurring employee surveys which include questions about health and
safety at work.
Holmen Annual Report 2024 111
Own workforce

Sustainability report
Talent management is handled within the respective business area, which
produces action plans based on the needs of each material site. As the needs
of different material sites may vary, no Group-wide key actions have been identi-
fied or taken. To strengthen the brand and attract labour, Holmen works to
ensure a consistent, true and transparent picture of Holmen as a company at
Group-wide level. Holmen actively involves company ambassadors representing
a diversity of backgrounds, occupational roles and geographical areas. Addition-
ally, Holmen works with other organisations in the same sector on how future
needs to attract a skilled workforce can be met. Success is measured in brand
surveys, external rankings and indices and interest at different events attended
by Holmen.
The industry is currently overwhelmingly male and Holmen is working to achieve
a more even gender distribution among all employees. In recruitment processes,
Holmen strives to bring in more candidates from the underrepresented sex for
vacancies where this is possible. When recruiting for summer jobs, the aim is
an equal distribution of men and women. Efforts are monitored by gender distri-
bution indicators. Holmen draws up action plans and annual pay surveys as part
of work to create an inclusive workplace in which everyone is given the same
development opportunities.
Metrics and targets
Targets related to own workforce
Holmen’s workforce must develop and thrive. A healthy culture and a safe work
environment go without saying and Holmen is to be an attractive employer that
develops its employees by giving them stimulating duties and new challenges.
Indicators are linked to this target to measure whether Holmen is on track. Acci-
dent statistics indicate that appropriate actions are creating a safer and more se-
cure working environment. The ambition is for zero accidents. Sickness absence,
employee turnover and Employee Net Promotor Score (eNPS) are indicators that
show the health of Holmen’s employees and how they feel. The ambition is to
attract and retain the right employees to secure future talent management.
It is important to Holmen to have committed and satisfied employees. One of the
ways in which Holmen measures this is through regular employee surveys, which
form the basis for an Employee Net Promotor Score (eNPS). This is monitored
against industry indices and every department analyses the results together, an
action plan is then drawn up and further monitoring carried out. The heads of the
business areas are responsible for the survey in their respective business area
and Holmen’s HR Director and the CEO follow up outcomes for central functions
at Holmen.
In the reporting period, the average eNPS amounted to 26 (25). This is a strong
result compared with the industry index for 250 companies in different sectors,
which reached 16 for the most recent two-year period (2022/2023). This indi-
cates that Holmen’s work for satisfied employees is focusing on the right areas.
Characteristics of the undertaking’s employees
The number of employees in the reporting period was 3 498 (3 546). The propor-
tion of women was 22.4 (22.3) per cent in the same period.
Number of employees, head count
2024
2023
Female
838
816
Male
2 786
2 804
Total no. of employees
3 624
3 620
Total number of employees per country, head
count
2024
2023
Sweden
3 094
2 981
UK
383
407
Netherlands
73
72
Other countries
74
86
Total no. of employees
3 624
3 546
2024
2023
Number full-time
equivalent*
Female
Male
Total Female
Male Total
Permanent employees
658 2 536 3 194
664 2 600 3 264
Part-time employees
60
41
101
55
34
89
Temporary employees
66
137
203
73
120
193
Total full-time
equivalent (FTE)
784 2 714 3 498
792 2 754 3 546
*Full-time equivalent calculated taking into account absence and overtime.
Employee turnover*
2024
2023
Employee turnover, %
7.3
7.4
Number of employees who left the undertaking
during the reporting period
264
267
Recruitments
199
253
*Relates to permanent employees.
Collective bargaining coverage and social dialogue
In the reporting period, the proportion of Holmen’s employees covered by
collective bargaining agreements amounts to 98 (95) per cent. The calculation
is based on Holmen’s permanent and fixed-term employees in Sweden, the UK
and the Netherlands who have collective bargaining agreements. In other coun-
tries, there are national standards for collective labour arrangements, which
Holmen backs.
Diversity indicators
Information on the gender distribution at top management level is shown in Note
4 on page 74, and on pages 56–58.
Age distribution of employees, FTE*
2024
2023
Under 30
404
446
30–50
1 581
1 623
Over 50
1 209
1 196
*Calculated based on FTE taking into account absence and overtime for permanent
employees.
Training and skills development metrics
Employee development is taking place at all levels to safeguard Holmen’s
current and future skills needs. Many employees complete regular compulsory
training to maintain skills in specific areas. Training in business conduct is
carried out on the basis of Holmen’s Code of Conduct. Holmen offers Group-wide
leadership programmes and programmes for new and more experienced manag-
ers, and for specialists. Ongoing competence development sees Holmen paving
the way for employee development with stimulating duties and new challenges.
New employees at Holmen’s material sites are trained in health and safety, and
employees complete regular online health and safety training based on the risks
and competence requirements of the site concerned. Contractors undergo train-
ing before being granted access to Holmen’s material sites.
Health and safety metrics
During the reporting period, all Holmen employees are covered by statutory
health and safety requirements. During the reporting period, 38 work-related
accidents were recorded, 20 of which were considered to be severe. Of the total
work-related accidents, 31 accidents involved employees in Holmen’s own
workforce. The accident frequency for own workforce was 5.3 (5.2) accidents
per million hours worked. The most common accidents were slips, trips and
crush injuries. None of the accidents which occurred during the period led to
fatalities. Holmen defines an accident that leads to more than seven days of
sickness absence as severe.
112 Holmen Annual Report 2024
Own workforce

Sustainability report
Total sickness absence is an indicator of employee health and well-being and
a way for Holmen to measure progress. Sickness absence is divided into short
term and long term (more than 15 days). Sickness absence linked to recordable
work-related ill-health is difficult to identify and Holmen considers that total
sickness absence describes the health of Holmen’s own workforce in general.
Sickness absence, %*
2024
2023
Total
4.7
4.6
Of which long-term sickness absence**
2.4
1.9
*Number of days of accidents in relation to total number of hours worked.
**From 2024 onwards, long-term sickness absence is calculated as more than 15
days. Previously it was calculated as more than 60 days. Hence the increase in
long-term sickness absence in 2024 compared with the previous period.
Compensation metrics (pay gap and total compensation)
Holmen is to pay market salaries and apply differentiated and individual pay
setting, within the limits set by pay agreements, based on the difficulty and
responsibilities of the position and the individual’s performance. Minimum wage
requirements, statutory or contractual, must be complied with. Action plans and
annual pay surveys are drawn up in line with the Swedish Equality Act as part of
Holmen’s work to create an inclusive workplace in which everyone is given the
same development opportunities. Where unwarranted pay differences have
been discovered, action plans have been adopted in consultation with the
unions.
For information about the total remuneration ratio, see Holmen’s remuneration
report for 2024 which is available at holmen.com.
Incidents, complaints and severe human rights impacts
No cases of human rights incidents related to the undertaking’s employees have
occurred during the year (or in the previous year). Also see information on the
whistleblower function in the section on Business conduct, page 116. No issues
of discrimination were reported via this function during the year.
Workers in the value chain
Strategy
Material impacts, risks and opportunities and their interaction with
strategy and business model
Holmen works with many suppliers of goods and services, but it is from suppliers
in forestry that impacts on workers in the value chain are judged to be material.
Forestry is dependent on subcontractors
Holmen’s forestry is largely dependent on contracted services in harvesting
and silviculture (thinning, site preparation and planting). In recent decades
Holmen has switched from carrying out its own harvesting and silviculture to
hiring contractors. Streamlining their operations better enables contractors to
develop efficient working methods with greater flexibility through the year.
Forestry uses a high proportion of migrant labour and seasonal labour. Workers
from other countries can find it especially difficult to know what rights they
have and the labour law conditions that apply in Sweden. Silviculture work in
Holmen’s forests employs approximately 1 000 seasonal workers every year
and it is important that Holmen hires and works with responsible contractors.
If difficulties arise in accessing labour to carry out silviculture services, for exam-
ple in the event of external events that mean migrant labour is unable to travel,
Holmen’s dependence on contractor services may have financial effects.
Operations may be affected in the form of reduced forest growth and poorer
forest management. Additionally, Holmen’s reputation may be harmed if the
human rights of value chain workers are not upheld.
Impact, risk and opportunity management
Policies related to value chain workers
For many years now, Holmen has worked with a Supplier Code of Conduct which
sets out what Holmen expects of its suppliers. The policy is based on the UN’s
Guiding Principles on Business and Human Rights, the ILO Declaration on Funda-
mental Principles and Rights at Work and the OECD Guidelines for Multinational
Enterprises on Responsible Business Conduct. Areas addressed are business
conduct, human rights and labour conditions, the environment and climate and
suppliers working to ensure that due diligence is demonstrated in their opera-
tions regarding impacts in these areas. The Code of Conduct specifically states
that neither child labour nor forced labour may occur. The Code of Conduct
requires that working conditions and pay are respected in line with legislation
or agreements. Compliance with the Code of Conduct is a contractual condition
for Holmen and if irregularities arise, Holmen has the right to terminate the
agreement with the supplier concerned. Holmen’s Supplier Code of Conduct
is included in new contracts with suppliers and in agreements with forestry
contractors. The Code of Conduct covers all types of suppliers to Holmen and
also requires that the supplier ensures that their sub-suppliers follow the code.
Holmen’s management system for forest operations includes a specific procure-
ment process adapted to the forest supply chain which seeks to ensure that
everyone carrying out silviculture work for Holmen receives contractual pay and
has a good work environment and decent terms of employment. Besides requir-
ing compliance with Holmen’s Supplier Code of Conduct, Holmen’s fundamental
requirements regarding forestry contractors are that they comply with Swedish
law, apply collective agreements and are certified for sustainable forestry in line
with PEFC’s contractor certification. The certification commits the contractor
to operate in line with certain sustainability requirements and have procedures
in place for administration, health and safety, handling hazardous waste, risk
prevention and further training.
Holmen’s management system also includes a process for monitoring and
management during the performance of the contract. During the contract, social
checks on forestry contractors are carried out by on-site visits on a sample basis.
The head of the business area is the person ultimately responsible for the
process of procuring forestry contractors.
Holmen Annual Report 2024 113
Workers in the value chain

Sustainability report
Processes for engaging with value chain workers about impacts
When hiring forestry contractors, Holmen conducts ongoing dialogue with the
supplier, the supplier’s employees and trade union representatives, both before
procurement and during procurement and performance of the contract.
As part of Holmen’s supplier approval process, information is obtained from
the forestry contractor in line with a separate protocol with a specific focus on
health and safety and compliance with decent conditions for workers, in line with
the requirements of Holmen’s Supplier Code of Conduct. Where suppliers hire
sub-suppliers, the supplier is responsible for ensuring that the information and
the requirements cover sub-suppliers.
Holmen works with the union GS, which covers the forest industry, the wood
industry and the graphic industry, regarding which forestry contractors are to
be hired ahead of each season. Supplier approval and decisions are taken in con-
sultation with the union representative concerned and potential views from the
GS union must be obtained and taken into account. All forestry contractors hired
must be reported to the GS union via the union’s main bargaining representative.
All forest workers are trained in forestry by Holmen using training provided by
the forestry training organisation Skogsbrukets yrkesnämnd (SYN). Training
is provided both on site in the forest and online. The training covers Holmen’s
instructions and work procedures. The safety and quality of the work is vitally
important to Holmen and therefore the training is predominantly provided by
Holmen’s own workforce. Additionally, forestry contractors are to complete the
online silviculture training course ‘Skötselskolan’, which provides information
on workers’ rights, including access to healthcare. Skötselskolan also includes
information about ways to report suspected or actual irregularities. All planters
and thinners must have completed and passed the training before being allowed
to work in the forest, no matter how long the contract is for. The training is pro-
vided in seven languages.
During the contract, site visits are made to forestry contractors in line with a
process drawn up and field visits are made to the forestry contractors’ work
teams, in which Holmen conducts a dialogue with both managers at the forestry
contractor and their workers. A survey is handed out to all workers present,
which is to be answered anonymously. The answers are taken in and analysed.
Processes to remediate negative impacts and channels for value chain
workers to raise concerns
Compliance with the Supplier Code of Conduct is a contractual condition for
Holmen. If the supplier has caused or contributed to material negative impacts
for workers in the value chain, Holmen is to be informed promptly. In the event
of failings caused by the supplier, the supplier is to immediately present an
action plan for corrective action, and take action and provide adequate evidence
of improvements. Action plans and corrective actions are followed up.
The forestry contractor and its employees are informed of where they should
turn if they suspect irregularities. It is also made clear that Holmen will not toler-
ate any form of reprisals against anyone who reports to Holmen’s whistleblower
function in good faith.
Any nonconformities noted at site visits and field visits, or through other
channels, are analysed and an action plan is produced. Corrective actions
are followed up, even if the nonconformities do not qualify as a breach of
the Supplier Code of Conduct.
Taking action on material impacts on workers in the value chain
In the reporting period, site visits were made to 26 (27) per cent of Holmen’s
cleaning and planting work teams. No suspected breaches of the Supplier Code
of Conduct were noted during the site visits. No contractual employees reported
any experienced irregularities via the channels provided by Holmen.
During the reporting period, a Group-wide project was run with the aim of
reviewing Holmen’s due diligence process, based on Holmen’s material sustain-
ability risks in the supply chain. Among other things, the purchasing policy and
its associated guidelines have been revised in terms of work with risk-based due
diligence in the supply chain. Procedures for risk assessments related to sustain-
ability have been introduced with the aim of implementing a more Group-wide
approach. In 2025, work will continue to deepen knowledge of risks related
to human rights in Holmen’s supply chain and to follow up on whether existing
working methods are sufficiently effective. The actions cover the whole Group.
Metrics and targets
Targets related to value chain workers
Holmen builds long-term relationships based on responsible business conduct.
It is important that Holmen’s suppliers have a safe and healthy work environ-
ment and provide good working conditions.
Within the framework of procurement of forestry services, constant improve-
ment efforts are made in which the management process for procuring forestry
contractors is reviewed each year. Work is partly based on any nonconformities
and issues noted during the year, and on the views and information that have
emerged in contacts with suppliers, their employees, union representatives
and other stakeholders.
During the reporting period, no reports have come in of disregard for the UN
Guiding Principles on Business and Human Rights, the ILO Declaration on Funda-
mental Principles and Rights at Work or the OECD Guidelines for Multinational
Enterprises covering workers in Holmen’s own value chain. Of the suppliers
in the value chain that Holmen has evaluated during the period, there is no in-
creased risk related to the principles in Holmen’s Supplier Code of Conduct. No
supplier collaboration has been terminated due to shortcomings in the supply chain.
114 Holmen Annual Report 2024
Workers in the value chain

Sustainability report
Affected communities
Strategy
Material impacts, risks and opportunities and their interaction with
strategy and business model
Holmen’s operations affect local residents and local stakeholders, including
commercial actors, while its operations in their turn are affected by the sur-
rounding community. The greatest impact comes from Holmen’s own operations,
particularly forestry, which also affects Sami interests in the form of reindeer
husbandry. Holmen depends on the consent of Sami reindeer herding associa-
tions to carry out forestry in the areas that overlap the association’s reindeer
grazing lands. Developing and generating wind and hydro power can impact on
local residents due to changed land use and regulating water flows. Wind power
generation on Holmen’s land is an important element in the climate transition,
but the permit process is often long and dependent on the support of municipali-
ties and local residents, which can lead to demands for compensation and affect
the projects’ viability. The production of wood products, paperboard and paper
can cause odours and noise in nearby communities. Transport of wood can also
cause noise in neighbouring communities.
Holmen creates conditions that enable thriving rural communities and gives
people the opportunity to work, live and enjoy quality of life outside the city re-
gions. Holmen’s operations contribute to local communities by providing jobs
and tax income and as a major employer in several locations, Holmen also works
with other local companies and associations to promote social and economic
development. Local presence is important to Holmen and affected communities.
Holmen’s need for labour and contractors is crucial to the success of its opera-
tions, while Holmen’s operations contribute to thriving rural communities as the
forest industry is a central element in the local economy in many locations. For-
estry also makes the forest easily accessible for outdoor recreation and there are
good opportunities for hunting and fishing on Holmen’s land.
Impact, risk and opportunity management
Policies related to affected communities
Holmen’s environmental and energy policy states that operations must be
carried out in line with the precautionary principle to prevent injury and detri-
ment to human health and the environment. Environmental impact must be
acceptable to people and nature both in ongoing and discontinued operations,
and in the event of process disruptions the environment takes precedence over
production. Holmen takes reindeer husbandry into consideration through dia-
logue with representatives from Sami reindeer herding associations as laid down
by law. The policy covers the communities in which Holmen operates.
Holmen has steering documents setting out procedures concerning reindeer
husbandry, including consultation meetings and communication with Sami rein-
deer herding associations affected. Mutual understanding of the conditions in
which the respective businesses operate is fundamental to good collaboration.
In the joint planning process, the parties seek shared solutions for silviculture
work. Joint planning of silviculture must be conducted in good faith, and reindeer
grazing must be taken into consideration, as must cultural sites, such as trees
bearing carvings.
Holmen must support and respect protection of internationally recognised
human rights, including rights under the UN Convention on the Rights of the
Child. Holmen’s policies, combined with the Code of Conduct, require responsi-
ble business conduct. Holmen conducts an ongoing dialogue with the local com-
munity, including local representatives, politicians and the local business
community.
Processes for engaging with affected communities about impacts
Good relations with local communities around Holmen’s material sites are
important and there is a desire to maintain dialogue, as contact with the local
community is extremely important in working to minimise the impact on Hol-
men’s surroundings. At the sites where operations take place, there is continu-
ous contact with local representatives, and in permit cases work is coordinated
with the authorities affected. Operational responsibility for contact with affected
communities rests with Holmen’s business areas, and internal monitoring is
carried out to evaluate whether the contacts are effective.
Local consultations are held to maintain contact with affected Sami reindeer
herding associations. At these consultations, representatives of Holmen’s field
operations and representatives of the Sami reindeer herding association meet
to discuss planned operations and potential impact on reindeer husbandry.
An online tool gives the Sami reindeer herding associations access to relevant
information ahead of the consultation. Dialogue with the affected Sami reindeer
herding association is always required in permit processes and notifiable activi-
ties such as wind power development and notification of harvesting.
Processes to remediate negative impacts and channels for affected
communities to raise concerns
There are different actions that can be taken to remediate negative impacts
on affected communities caused by Holmen. The majority of such events are
handled in direct dialogue with those affected, while certain situations may
demand legal processes to investigate responsibility. Different events may
demand different types of consideration and depend on the specific situation.
Where operations require a permit, action is directly required regarding reindeer
husbandry, especially when land is being used for wind power production. To
reduce any impact on reindeer husbandry, fences and feeding stations are built
for the reindeer, and in some cases it may be necessary to temporarily shut down
wind turbines. Consultation with representatives of the Sami reindeer herding
association concerned creates an opportunity to find solutions that meet the
needs of both parties.
To enable complaints or reporting of irregularities, affected communities can
contact representatives from Holmen directly or use Holmen’s whistleblower
function. More information is provided in the section on Business conduct.
Holmen’s material sites have established procedures and processes to tackle
complaints from affected communities, and an ongoing dialogue is maintained
by local representatives for Holmen to enable effective handling of incoming
concerns. At several material sites, there is an opportunity for local residents
to get in touch with Holmen quickly via a dedicated phone number and online
contact channels. It is also possible to contact Holmen via its website. It is
necessary to continue developing these processes to make sure that concerns
are handled efficiently and transparently.
Taking action on material impacts on affected communities
No needs for action related to negative impacts on affected communities were
identified in the reporting period. Impacts on affected communities are largely
linked to the operations that require permits, and in the event of nonconformities
there are other processes for handling such situations.
A project is in progress to review and improve the joint planning processes
regarding operations that affect the reindeer husbandry community. This in-
volves more effective consultation meetings, developing actions taken out of
consideration, greater access to resources and improved communication with
the affected Sami reindeer herding associations.
Metrics and targets
Targets related to affected communities
In line with business conduct, Holmen must build long-term relationships and
operations must develop within the framework of environmental permits and
certifications. Impact on humans and the environment must be acceptable in
line with Holmen’s environmental and energy policy. The effectiveness of the
policy in relation to affected communities is evaluated by ensuring that levels
of noise and pollutants to air, water and soil laid down in permits are met.
Holmen Annual Report 2024 115
Affected communities

Sustainability report
Business conduct
Governance
See the corporate governance report on pages 44–48 for the responsibilities
of the administrative, supervisory and management bodies.
Impact, risk and opportunity management
Description of the processes to identify and assess material impacts,
risks and opportunities
Business conduct helps to create a more competitive economy. Holmen oper-
ates in a global market and sells products to many countries around the world.
Holmen is exposed to political risks, risks of corruption and risks in the value
chain, for example. Nationally and internationally, customers and partners make
demands of Holmen as a stable and reliable supplier that stands for good busi-
ness conduct and clear sustainability principles. Deviations from principles and
policies could have a negative impact on the Group’s reputation and business
relationships.
A good reputation as a responsible and trustworthy company is fundamental to
Holmen’s business. The collaborations that Holmen enters into must be in line
with the Group’s fundamental values on sound business ethics and follow inter-
nal steering documents on business conduct. External requirements governing
Holmen’s responsibility for behaviour in the value chain may be changed by new
legislation. Changes in laws and regulations may affect conditions for Holmen’s
operations and lead to increased costs for regulatory compliance.
Business conduct policies and corporate culture
Holmen supports the ten principles of the UN Global Compact, the core conven-
tions of the International Labour Organization (ILO) and the OECD Guidelines for
Multinational Enterprises on Responsible Business Conduct. Holmen’s Code of
Conduct, which is based on these principles, provides guidance day to day and
makes clear what every employee can expect from their colleagues in the areas
of business ethics, information management, human rights, workers’ rights and
the environment.
Holmen’s business ethics policy, with its associated guidelines, supplements the
Code of Conduct and contains rules linked to business conduct, anti-corruption,
tax, money laundering and other business conduct-related areas. Holmen does
not tolerate any form of corruption. Employees may not give, promise, offer, re-
quest or receive payment or benefits that are contrary to applicable legislation,
good business practice or which may affect, or be considered to affect, the
objectivity of decisions. Employees must manage contact with competitors with
caution and in a manner that ensures compliance with competition rules.
By working actively with steering documents, Holmen creates a responsible
corporate culture. Alongside the Code of Conduct and the business ethics policy,
there are internal documents describing the business model, governance model,
values and views of leadership and employeeship. Holmen also works with the
values of courage, commitment and responsibility, which are to develop employ-
ees in the Group but also build further on Holmen’s strong culture.
Holmen holds recurring training on the Code of Conduct for all employees. New
employees must complete training in the Code of Conduct as part of their induc-
tion. Additionally, themed training is run for departments where there is a great-
er risk of corruption and bribery, such as sales staff, purchasers and managers.
In 2024, training was held for all employees in personal data protection law and
themed training on competition law was held for one group of sales staff.
Holmen has a whistleblower function and established functions for receiving
reports that come in under the Swedish Act on the Protection of Persons Report-
ing Irregularities (the Whistleblowing Act), which covers Holmen. Holmen’s
whistleblower function can be accessed via Holmen’s intranet and Holmen’s
external website, and makes it possible for employees and other stakeholders to
report suspected breaches of the law, other irregularities or serious misconduct
either anonymously or openly.
During the reporting period, Holmen replaced a previous internal whistleblowing
tool with an external service which includes functions for case management and
handling data protection issues. Holmen’s Group instruction for the whistleblow-
er function describes the process. During the year, training on the Whistleblow-
ing Act was held for the functions receiving whistleblowing reports, including
rules on protection for whistleblowers and investigation procedures.
Cases received by the whistleblowing service are reviewed by the respective
receiving function. The reviewers must have a sufficiently independent role in
the Group. If the case concerns people in a leadership role, for example, an
external investigator will normally be hired. The case must be investigated in
a satisfactory way and feedback must be provided to the whistleblower. The
reviewers can also propose preventive actions if necessary. The conclusion of a
case at Holmen does not preclude information being handed over to an external
authority.
Management of relationships with suppliers
Under Holmen’s Purchasing policy, Holmen is to apply good business ethics and
all purchasing must ensure objectivity and competition. Holmen’s purchasing
functions are to contribute to the company’s long-term profitability by ensuring
a sustainable supply of goods and services. This assumes good forward planning
and effective cooperation between the purchasing function and operations. The
purchasing function is also tasked with identifying, evaluating and preventing
risks in Holmen’s supply chain.
Holmen has had a Supplier Code of Conduct for many years now. The Supplier
Code of Conduct follows the UN’s principles and includes the requirement that
Holmen’s suppliers must respect internationally recognised principles concern-
ing anti-corruption, human rights, health and safety, and environmental impact.
The Supplier Code of Conduct is based on these principles and clarifies what
Holmen expects of its suppliers. It states that the supplier is to seek to ensure
that due diligence is shown in their operations regarding the consequences
for human rights, the environment and the climate, which involves identifying
potential and actual negative impacts and taking action to tackle such impacts.
Purchasers at Holmen are trained in Holmen’s purchasing policy and Supplier
Code of Conduct on an ongoing basis.
Holmen hires an external body, EcoVadis, to conduct an in-depth assessment
of how well certain suppliers are complying with the principles of the Supplier
Code of Conduct. This includes climate, environment, labour law, human rights,
business conduct and sustainable purchasing. At the end of 2024, 112 (130)
suppliers had undergone an EcoVadis assessment. 100 (97) per cent of Holmen’s
assessed suppliers scored above the Group’s pass level. Of the suppliers evalu-
ated and followed up in 2024, no supplier has been found to have a heightened
risk related to the principles in Holmen’s Supplier Code of Conduct. In 2024, no
supplier collaboration was terminated due to shortcomings in the supply chain.
Holmen works with local suppliers and suppliers that hold various certifications.
The contractors used in forestry are subject to a fundamental requirement
that the supplier complies with Swedish law and applies collective bargaining
agreements, and is certified for sustainable forestry under PEFC’s contractor
certification.
Holmen’s purchasing guidelines state that payment times should follow the
practice for the product or service and country in which purchasing takes place.
Prevention and detection of corruption and bribery
Holmen’s steering documents, in the form of the business ethics policy with its
associated guidelines and the Code of Conduct for employees, provide informa-
tion and guidance on how employees should act in business conduct matters.
Employees must be familiar with the Code of Conduct and this is ensured through
recurring training. A Supplier Code of Conduct is to be included in all new supp
lier agreements and compliance is a requirement. If a supplier fails to comply
with the Code of Conduct, this constitutes breach of contract. The majority of
customer agreements also include anti-corruption compliance requirements.
Besides being able to contact their manager, HR or union representatives or
bring up issues at regular appraisal talks, employees are able to use the whistle-
blower function to supplement other channels for reporting irregularities regard-
ing corruption and bribery.
Metrics and targets
Whistleblower function
Six cases were reported in 2024 that were deemed to constitute whistleblowing
as defined by law. As at 31 December 2024, one case was open and under inves-
tigation. Other cases were closed after appropriate investigation. No cases of
corruption or bribery were identified. No issues of discrimination were reported
via this function during the year. Labour law issues were handled by following
standard HR procedures.
Confirmed incidents of corruption and bribery
No cases of corruption or bribery were identified during the reporting period.
Holmen has not been convicted of or fined for breaking the law regarding
corruption or bribery.
116 Holmen Annual Report 2024
Business conduct

Sustainability report
Political influence and lobbying activities
To promote the climate transition, Holmen is active via dialogue, responding to
consultations and engaging in contingency planning and lobbying, on Holmen’s
own behalf and together with industry organisations. Holmen is a member of
national and international industry organisations in order to promote Holmen’s
position and opinion on issues relevant to Holmen’s business. In the locations in
which Holmen operates, Holmen is in ongoing dialogue with the general public,
for example at consultation and information meetings.
In 2024, Holmen has worked to increase awareness of the climate benefit of
the forest industry in order to publicise the risks Holmen sees in the EU’s Forest
Strategy, which may mean limiting the climate benefit of the forest industry.
In addition, ongoing dialogue is conducted regarding LULUCF, EUDR, Nature
Restoration and the Swedish Species Protection Ordinance, all of which may
impact on future opportunities for sustainable and profitable forest manage-
ment in Sweden.
In its wind and hydro power operations, Holmen has worked to create lasting
ground rules in Sweden with shorter permit processes and a wind power exami-
nation process in line with the rule of law, and asserted that it is necessary that
the Government safeguard environmental permit processes regarding hydro
power in Sweden so that the result is acceptable from an electricity system
perspective.
Holmen has also engaged in lobbying regarding the EU’s new emission allowances
system ETS, so that the right incentives are in place to continue prioritising invest
ments to reduce fossil energy use.
Holmen does not engage in party politics and does not support political parties,
candidates or their representatives financially. Holmen’s employees are free to
engage in political activities. However, such engagement must not be able to be
seen as being supported by Holmen.
The Senior Vice President Sustainability and Communications bears overarching
responsibility for Holmen’s lobbying work and standpoints. Holmen’s work on
issues that affect its business must be derived from Holmen’s overall strategy
and direction, and be coordinated with Group Sustainability and Communications.
Payment practices
Holmen has used employee numbers as the selection method for reporting
payment deadlines for small and medium-sized enterprises. The average time
Holmen takes to pay an invoice from the date when the contractual or statutory
term of payment starts to be calculated is 31.6 days.
Suppliers with up to 9 employees: 28 days
Suppliers with up to 49 employees: 29 days
Suppliers with up to 249 employees: 31 days
As at 31 December 2024, Holmen has no legal proceedings currently
outstanding for late payments.
A holistic approach
to sustainability
Holmen has been part of the
UN Global Compact and its
corresponding Nordic network
since 2007. Every year we report
on our work and on the progress
made in line with its ten principles.
Information on how Holmen is
working in line with and fulfilling
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
Holmen Annual Report 2024 117
Business conduct

Sustainability report
Taxonomy
The EU Taxonomy Regulation is a classification tool that will provide guidance to
financial operators on the identification of economic activities that significantly
contribute to the EU complying with its environmental objectives and green
growth strategy. In 2023, the Taxonomy Regulation was extended to cover all six
environmental objectives.
Companies must report the proportion of their turnover, capital expenditure and
operating expenditure for activities covered by the Taxonomy Regulation, and
the proportion that meets the requirements to be considered sustainable. Each
activity is tested against the technical criteria in the regulation to determine the
extent to which it makes a substantial contribution and does no significant harm.
Sustainable activities must also comply with minimum social safeguards. In ad-
dition, fundamental human rights must be respected and good business practic-
es followed.
Detailed information about Holmen’s operations that are covered by the taxono-
my can be found in the tables below. For the financial year, the share of taxono-
my-aligned turnover was 9 (10) per cent, capital expenditure 34 (16) per cent
and operating expenditure 27 (20) per cent. All activities fulfil the criteria to be
called sustainable.
The key figures have been calculated in accordance with the definitions in the
Taxonomy Disclosures Delegated Act. In short, this means that the turnover,
capital expenditure and operating expenditure that are covered by the taxonomy
(the numerators) must be divided by the Group’s total turnover, capital expen
diture and operating expenditure (the denominators). The following sections
describe the calculation principles applied by Holmen.
Allocation of turnover, capital expenditure and operating
expenditure to the denominators
The total turnover in accordance with the taxonomy’s definition corresponds to
the Group’s sales as presented in the income statement, which are defined in
accordance with IFRS 15, and some of the Group’s other operating income as
presented in Note 3. Sales of by-products, renewable energy certificates, emis-
sion allowances and silviculture contracts, and some rent and land lease income
and other items are included in the denominator according to the definition in
the Taxonomy Regulation and amount to SEK 2 000 (1 895) million. Internal
sales from activities covered by the taxonomy are not factored in.
Total capital expenditure relates to investments and acquisitions for the current
year in line with Note 9 Forest assets, Note 10 Intangible assets, Note 11 Proper-
ty, plant and equipment, and Note 12 Right-of-use assets (leases). No capital ex-
penditure is related to CapEx plans.
The total operating expenditure that is applicable to Holmen under the taxono-
my relates to repairs and maintenance and research and development. For the
financial year, operating expenditure totalled SEK 1 747 (1 718) million.
Allocation of turnover, capital expenditure and operating
expenditure to the numerators
Holmen’s operations that are covered by the taxonomy are the harvesting of our
own forests (NACE code 02.20) and electricity production from wind power, hy-
dro power and bioenergy (NACE code 35.11). These operations correspond to
taxonomy activities 1.3 (harvesting of own forests), 4.3, 4.5 and 4.8 (electricity
production from wind power, hydro power and bioenergy). Holmen generates
Turnover for 2024
Economic activities (1)
Code (2)
Turnover (3)
Proportion of turnover,
year 2024 (4)
Unit
SEKm
%
A. Taxonomy-eligible activities
9
A.1 Environmentally sustainable activities (taxonomy-aligned)
Harvesting of own forest
CCM 1.3
811
3
Wind power
CCM 4.3
169
1
Hydro power
CCM 4.5
454
2
Bioenergy
CCM 4.8
784
3
Turnover of environmentally sustainable activities (taxonomy-aligned) (A.1)
2 218
9
Of which enabling
-
Of which transitional
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Not applicable
-
-
Operating expenditure of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)
-
-
Total (A.1 + A.2)
2 218
9
B. Taxonomy-non-eligible activities
Turnover of taxonomy-non-eligible activities (B)
22 541
91
Total (A + B)
24 759
100
Taxonomy-related turnover amounts to SEK 2 218 million, most of which is attributable to the Group’s turnover and is shown in the income statement on
page 60. The taxonomy-aligned turnover from other operating income totals SEK 784 million and relates to bioenergy.
CCM = Climate Change Mitigation
118 Holmen Annual Report 2024
Taxonomy

Sustainability report
no external turnover from other NACE codes (economic activities) that are cov-
ered by the Taxonomy Regulation. All the activities have been judged to contrib-
ute to environmental objective 1, Climate change mitigation. Capital expenditure
relating to suppliers whose operations are covered by the taxonomy, but that
does not relate to Holmen activities 1.3, 4.3, 4.5 or 4.8, known as category C
investments, is negligible and is not included. There were no changes in major
taxonomy-aligned activities during the financial year.
Turnover from the harvesting of our own forests above all consists of external
sales of logs and pulpwood, but excludes what is processed by Holmen’s own
industrial facilities. Capital expenditure includes purchases of forest machinery,
the construction of forest roads and acquisitions of forest properties. Operating
expenditure includes the development and maintenance of our own forests in
the form of thinning, road maintenance, clearing and fertilisation.
Turnover derived from electricity production consists primarily of external sales
of electricity, ancilliary services for the stabilisation of the electricity grid, guar-
antees of origin and green electricity certificate revenue. Capital expenditure in-
cludes upgrades, new installations and acquisitions. Operating expenditure
consists of minor renovations and the maintenance of equipment for electricity
production, and various forms of development work, such as the designing of
new wind farms.
In the 2024 reporting period, the taxonomy-aligned share of capital expenditure
increased from 16 per cent to 34 per cent, mainly related to the construction of
wind power. The share of operating expenditure increased from 20 per cent to 27
per cent due to higher silviculture costs. The change in the taxonomy-aligned
share of turnover was marginal.
Taxonomy-aligned activities within Holmen are able to be separately identified
in the company’s financial reporting, which prevents any double counting of
turnover, capital expenditure and operating expenditure.
Evaluation of compliance with the criteria
Holmen annually evaluates the technical screening criteria to determine wheth-
er the economic activities are considered to significantly contribute to climate
change mitigation and not cause significant harm to any of the other environ-
mental objectives under the Climate Delegated Act. The Group’s forestry plan,
along with the climate benefit analysis prepared that shows increased carbon
storage and that the legislation ensures continued land use for forestry, are con-
sidered together to meet the requirements for substantial contributions relating
to forest management. Forest management takes place in accordance with the
Group’s certifications, which, along with the legal requirements and the climate
adaptation plan prepared, ensures that the forest management does no signifi-
cant harm. Third-party audits were carried out during the year in accordance
with the technical screening criteria. With regard to the Group’s production of
wind and hydro power and bioenergy, an analysis of each power plant’s individu-
al design and characteristics has been conducted and climate adaptation plans
prepared for each operation.
Compliance with minimum social safeguards has been evaluated in keeping with
the guidance from the Platform on Sustainable Finance. Holmen complies with
labour and human rights laws and has processes in place to ensure the existence
of minimum social safeguards relating to the prevention of corruption, and fair
competition and taxation, according to the OECD’s six-step framework for human
rights due diligence. See also pages 111–117 for further information.
Substantial contribution criteria
Does Not Significantly Harm (DNSH) criteria
Climate change
mitigation (5)
Climate change
adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigation (11)
Climate change
adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards
(17)
Proportion of
taxonomy-aligned
(A.1.) or eligible (A.2.)
turnover, year 2023
(18)
Category enabling
activity (19)
Category transitional
activity (20)
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
Y
Y
Y
Y
3
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
-
Y
Y
Y
1
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
-
-
Y
Y
3
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
Y
-
Y
Y
3
-
-
100
-
-
-
-
-
10
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
-
-
Holmen Annual Report 2024 119
Taxonomy

Sustainability report
Capital expenditure 2024
Economic activities (1)
Code (2)
Capital expenditure (3)
Proportion of capital
expenditure,
year 2024 (4)
Unit
SEKm
%
A. Taxonomy-eligible activities
34
A.1 Environmentally sustainable activities (taxonomy-aligned)
Harvesting of own forest
CCM 1.3
221
10
Wind power
CCM 4.3
503
22
Hydro power
CCM 4.5
67
3
Bioenergy
CCM 4.8
-
-
Capital expenditure of environmentally sustainable activities (taxonomy-aligned) (A.1)
791
34
Of which enabling
-
Of which transitional
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Not applicable
-
-
Capital expenditure of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)
-
-
Total (A.1 + A.2)
791
34
B. Taxonomy-non-eligible activities
Capital expenditure of taxonomy-non-eligible activities (B)
1 520
66
Total (A + B)
2 310
100
Taxonomy-aligned capital expenditure amounts to SEK 790 million. For harvesting of own forests, SEK 170 million relates to investments in forest assets,
SEK 37 million in property, plant and equipment and SEK 14 million in leases. Wind power includes investments in property, plant and equipment totalling
SEK 503 million, which relate to the construction of wind power production. Hydro power includes SEK 66 million of investments in property, plant and
equipment. The percentage deriving from acquisitions in the financial year relates to purchases of forest properties to the amount of SEK 30 million.
Operating expenditure 2024
Economic activities (1)
Code (2)
Operating expenditure
(3)
Proportion of operating
expenditure, year 2024
(4)
Unit
SEKm
%
A. Taxonomy-eligible activities
27
A.1 Environmentally sustainable activities (taxonomy-aligned)
Harvesting of own forest
CCM 1.3
381
22
Wind power
CCM 4.3
15
1
Hydro power
CCM 4.5
35
2
Bioenergy
CCM 4.8
38
2
Operating expenditure of environmentally sustainable activities (taxonomy-aligned) (A.1)
469
27
Of which enabling
-
Of which transitional
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Not applicable
-
-
Operating expenditure of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)
-
-
Total (A.1 + A.2)
469
27
B. Taxonomy-non-eligible activities
Operating expenditure of taxonomy-non-eligible activities (B)
1 277
73
Total (A + B)
1 747
100
Taxonomy-aligned operating expenditure amounts to SEK 469 million. Mostly attributable to maintenance and repairs.
120 Holmen Annual Report 2024
Taxonomy

Sustainability report
Substantial contribution criteria
Does Not Significantly Harm (DNSH) criteria
Climate change
mitigation (5)
Climate change
adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigation (11)
Climate change
adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards
(17)
Proportion of
taxonomy-aligned
(A.1.) or eligible (A.2.)
CapEx, year 2023 (18)
Category enabling
activity (19)
Category transitional
activity (20)
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
Y
Y
Y
Y
13
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
-
Y
Y
Y
0
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
-
-
Y
Y
3
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
Y
-
Y
Y
0
-
-
100
-
-
-
-
-
16
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16
-
-
Substantial contribution criteria
Does Not Significantly Harm (DNSH) criteria
Climate change
mitigation (5)
Climate change
adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigation (11)
Climate change
adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards
(17)
Proportion of
taxonomy-aligned
(A.1.) or eligible (A.2.)
operating expenditure,
year 2023 (18)
Category enabling
activity (19)
Category transitional
activity (20)
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
Y
Y
Y
Y
17
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
-
Y
Y
Y
0
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
-
-
Y
Y
2
-
-
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
Y
Y
-
Y
Y
1
-
-
100
-
-
-
-
-
20
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
-
-
Holmen Annual Report 2024 121
Taxonomy

Sustainability report
Nuclear energy related activities
Yes/No
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as
well as their safety upgrades, using the best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or
process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
No
Fossil gas related activities
Yes/No
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and
power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that
produce heat/cool using fossil gaseous fuels.
No
Statement of use
Holmen AB has reported the information cited in this GRI content index for the
period 1 January–31 December 2024 with reference to the GRI Standards.
GRI 1 used
GRI 1: Foundation 2021
Omission
GRI standard /
other source
Disclosure
Page reference
Require-
ment
omitted
Reason
Explanation
General disclosures
GRI 2: General
disclosures 2021
2-1 Organisational details
4, 132
2-2 Entities included in the organisation’s sustainability
reporting
90-91, Note 22, 98
2-3 Reporting period, frequency and contact point
4, 59, 98
2-4 Restatements of information
98
2-5 External assurance
126
2-6 Activities, value chain and other business
relationships
8-9, 10, 16, 43, 99
2-7 Employees
75, Note 4, 112, 131
2-7 b-ii
2-7 b-iii
2-7 b-iv
2-7 b-v
Not
applicable
Holmen has not reported
employees by region broken down
by type of employment during the
reporting period as this information
is not considered relevant.
2-8 Workers who are not employees
113
2-9 Governance structure and composition
44-48, 54-58, 74
2-10 Nomination and selection of the highest governance
body
44-46, 54-58
2-11 Chair of the highest governance body
45
2-12 Role of the highest governance body in overseeing
the management of impacts
45-47
2-13 Delegation of responsibility for managing impacts
45-47
2-14 Role of the highest governance body in sustainability
reporting
45-47, 96
2-15 Conflicts of interest
44-47, 116
2-16 Communication of critical concerns
47-48
2-17 Collective knowledge of the highest governance
body
45-44, 56
2-18 Evaluation of the performance of the highest
governance body
45
2-19 Remuneration policies
45-46, 73-74 (Note 4)
GRI index
122 Holmen Annual Report 2024
GRI index

Sustainability report
Omission
GRI standard /
other source
Disclosure
Page
reference
Requirement
omitted
Reason
Explanation
General disclosures
GRI 2: General
disclosures 2021
2-20 Process to determine remuneration
45-46, 73-74,
Note 4
2-21 Annual total compensation ratio
73-74, 113
2-22 Statement on sustainable development strategy
7, 117
2-23 Policy commitments
47-48, 101-102,
105, 107-109,
111, 113, 115-
116
https://www.
holmen.com/en/
about/
Corporate-
governance/
code-of-
conduct-and-
policies/
holmens-code-
of-conduct/
2-24 Embedding policy commitments
47, 101-102,
105, 107-109,
111, 113, 115-
116
2-25 Processes to remediate negative impacts
47-48, 102, 105,
108-109, 111-
112, 114-115
2-26 Mechanisms for seeking advice and raising concerns 47-48, 116
2-27 Compliance with laws and regulations
51, 113, 116-
117
2-28 Membership associations
116-117
2-29 Approach to stakeholder engagement
99, 111, 114
2-30 Collective bargaining agreements
112
Material topics
GRI 3: Material
topics 2021
3-1 Process to determine material topics
100-101, 105,
107, 109, 111,
113, 115-116
3-2 List of material topics
100
Economic
performance
GRI 3: Material
topics 2021
3-3 Management of material topics
44-48, 98
GRI 201:
Economic
performance 2016
201-1 Direct economic value generated and distributed
71-72
Anti-corruption
GRI 3: Material
topics 2021
3-3 Management of material topics
116
GRI 205: Anti-
corruption 2016
205-3 Confirmed incidents of corruption and actions
taken
116
Materials
GRI 3: Material
topics 2021
3-3 Management of material topics
109
GRI 301: Materials
2016
301-1 Materials used by weight or volume
110
Holmen Annual Report 2024 123
GRI index

Sustainability report
Omission
GRI standard /
other source
Disclosure
Page
reference
Requirement
omitted
Reason
Explanation
Renewable Energy
GRI 3: Material
topics 2021
3-3 Management of material topics
103
GRI 302: Energy
2016
302-1 Energy consumption within the organisation
103
302-1 c. iii
302-1 c. iv
302-1 d. iii
302-1 d. iv
Not
applicable
Holmen has not reported the steam
consumed as it is self-produced and
is produced from the reported fuels.
Accounting for steam consumed
would have resulted in double
counting.
Holmen has not purchased cooling.
Holmen has not sold steam or
cooling.
Water and effluents
GRI 3: Material
topics 2021
3-3 Management of material topics
110
GRI 303: Water and
effluents 2018
303-1 Interactions with water as a shared resource
110
303-2 Management of water discharge-related impacts
105-106
303-3 Water withdrawal
110
Biodiversity
GRI 3: Material
topics 2021
3-3 Management of material topics
107-108
GRI 304:
Biodiversity 2016
304-2 Significant impacts of activities, products and
services on biodiversity
108
Emissions
GRI 3: Material
topics 2021
3-3 Management of material topics
101-102, 105-
106
GRI 305: Emissions
2016
305-1 Direct (scope 1) GHG emissions
103-104
305-2 Energy indirect (scope 2) GHG emissions
103-104
305-3 Other indirect (scope 3) GHG emissions
103-104
305-7 Nitrogen oxides (NOx), sulphur oxides (SOx), and
other significant air emissions
106
Waste
GRI 3: Material
topics 2021
3-3 Management of material topics
109-110
GRI 306:
Waste 2020
306-1 Waste generation and significant waste-related
impacts
109-110
306-2 Management of significant waste-related impacts
109-110
306-3 Waste generated
109-110
Supplier
environmental
assessment
GRI 3: Material
topics 2021
3-3 Management of material topics
114, 116
GRI 308:
Supplier
environmental
assessment 2016
308-1 New suppliers that were screened using
environmental criteria
114, 116
308-2 Negative environmental impacts in the supply
chain and actions taken
114, 116
Employment
GRI 3: Material
topics 2021
3-3 Management of material topics
111, 113-114
GRI 401:
Employment 2016
401-1 New employee hires and employee turnover
112
401-1 a
404-1 b
Not
applicable
Holmen has not reported the
number or proportion of new
employees or employee turnover by
age group or region during the
reporting period, as this information
is not considered relevant.
124 Holmen Annual Report 2024
GRI index

Sustainability report
Omission
GRI standard /
other source
Disclosure
Page
reference
Requirement
omitted
Reason
Explanation
Occupational health
and safety
GRI 3: Material
topics 2021
3-3 Management of material topics
111-114
GRI 403:
Occupational health
and safety 2018
403-1 Occupational health and safety management
system
111, 113-114
403-2 Hazard identification, risk assessment, and
incident investigation
111, 114
403-3 Occupational health services
112, 114
403-4 Worker participation, consultation, and
communication on occupational health and safety
111-112
403-5 Worker training on occupational health and safety
111
403-6 Promotion of worker health
111
403-7 Prevention and mitigation of occupational health
and safety impacts directly linked by business
relationships
111, 114

Comment: There
are no sites
where Holmen
does not have
control over the
work and
workplace.
403-8 Workers covered by an occupational health and
safety management system
106, 111
403-9 Work-related injuries
112-113
403-9 a. v
403-9 b. v
Not
applicable
Holmen has not reported the
number of hours worked by
employees or non-employed
workers, as this information is not
considered relevant.
Training and
education
GRI 3: Material
topics 2021
3-3 Management of material topics
111-112
GRI 404: Training
and education 2016
404-2 Programmes for upgrading employee skills and
transition assistance programmes
112-113
404-2 b
Not
applicable
Holmen has not reported end-of-
career management as we have not
had any major redundancies or
retirements.
Diversity and equal
opportunity
GRI 3: Material
topics 2021
3-3 Management of material topics
111-112
GRI 405: Diversity
and equal
opportunity 2016
405-1 Diversity of governance bodies and employees
75 Note 4, 112
405-1 a. ii
Not
applicable
Holmen has not reported the
proportion of individuals within
Holmen’s governance bodies by age
group, as the age of Holmen’s
governance bodies can be found on
pages 56 and 58.
Non-discrimination
GRI 3: Material
topics 2021
3-3 Management of material topics
111-112
GRI 406: Non-
discrimination 2016
406-1 Incidents of discrimination and corrective actions
taken
113
Local communities
GRI 3: Material
topics 2021
3-3 Management of material topics
115
GRI 413: Local
communities 2016
413-2 Operations with significant actual and potential
negative impacts on local communities
115
Supplier social
assessment
GRI 3: Material
topics 2021
3-3 Management of material topics
116
GRI 414: Supplier
social assessment
2016
414-1 New suppliers that were screened using social
criteria
116
414-2 Negative social impacts in the supply chain and
actions taken
116
Holmen Annual Report 2024 125
GRI index

Sustainability report

Auditor’s Limited Assurance Report on
Holmen AB’s Sustainability Report and state-
ment on the Statutory Sustainability Report
To the annual general meeting of Holmen AB, corporate identity number 556001-3301
Introduction
We have been engaged by the Board and Group Management of Holmen to un-
dertake a limited assurance of Holmen’s Sustainability Report for the year 2024.
The statutory sustainability report is defined on page 2, which also constitutes
the statutory sustainability report.
Responsibilities of the Board and Group Management
The Board of Directors and Group Management are responsible for the prepara-
tion of the Sustainability Report, including the statutory sustainability report, in
accordance with the applicable criteria and the Annual Accounts Act in the older
version that applied before 1 July 2024. The criteria are described on page 2 of
the Sustainability Report, and consists of the parts of the sustainability reporting
framework issued by the GRI (Global Reporting Initiative) Sustainability Report-
ing Standards which are applicable to the Sustainability Report, as well as the
accounting and calculation principles that Holmen has developed. This responsi-
bility also includes the internal control which is deemed necessary to establish a
sustainability report that does not contain material misstatement, whether due
to fraud or error.
Responsibilities of the auditor
Our responsibility is to express a conclusion on the Sustainability Report based
on the limited assurance procedures we have performed and to provide a state-
ment on the statutory sustainability report. Our assignment is limited to the his-
torical information that is presented and thus does not include future-oriented
information.
We conducted our limited assurance engagement in accordance with ISAE 3000
(revised) Assurance Engagements Other than Audits or Reviews of Historical Fi-
nancial Information. A limited assurance engagement consists of making inquir-
ies, primarily of persons responsible for the preparation of the Sustainability Re-
port and applying analytical and other limited assurance procedures. We have
conducted our examination regarding the statutory sustainability report in
accordance with FAR’s recommendation RevR 12, the Auditor’s Opinion on the
Statutory Sustainability Report. A limited assurance engagement and an exami-
nation according to RevR 12 have a different focus and a considerably smaller
scope compared to the focus and scope of an audit in accordance with Interna-
tional Standards on Auditing and generally accepted auditing standards in
Sweden.
The audit firm applies ISQM 1 (International Standard on Quality Management)
and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical require-
ments, professional standards and applicable legal and regulatory require-
ments. We are independent in relation to Holmen according to generally accept-
ed auditing standards in Sweden and have fulfilled our professional ethics re-
sponsibility according to these requirements.
The procedures performed in a limited assurance engagement and an examina-
tion according to RevR 12 do not allow us to obtain such assurance that we be-
come aware of all significant matters that could have been identified if an audit
was performed. The conclusion based on a limited assurance engagement and
an examination in accordance with RevR 12, therefore, does not provide the
same level of assurance as a conclusion based on an audit has.
Our procedures are based on the criteria defined by the Board of Directors and
the Group Management as described above. We consider these criteria as suita-
ble for the preparation of the Sustainability Report.
We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our conclusion below.
Conclusion
Based on the limited assurance procedures we have performed, nothing has
come to our attention that causes us to believe that the Sustainability Report is
not prepared, in all material respects, in accordance with the criteria defined by
the Board of Directors and Group Management.
A Statutory Sustainability Report has been prepared.
Stockholm, 25 February 2025
PricewaterhouseCoopers AB
Magnus Svensson Henryson
Authorised Public Accountant
Auditor in Charge
126 Holmen Annual Report 2024
Auditor’s Limited Assurance Report

Key figures
Holmen uses performance measures in its reporting in addition to
the metrics defined by IFRS, 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 the calculations
used to arrive at the performance measures used within the
Group. For further information, also see Definitions.
The ESMA’s (European Securities and Markets Authority)
‘Guidelines – Alternative Performance Measures’ are applied. The
alternative performance measures published in this report should
not be regarded as replacing the financial metrics defined by IFRS,
but rather as a complement, and they do not need to be compara-
ble with performance measures with the same names published
by other companies.
Reconciliation of key figures, SEKm
2024
2023
2022
2021
2020
Operating profit/loss, EBITDA
and items affecting comparability
EBITDA
5 110
6 114
8 607
5 321
3 651
Depreciation and amortisation according to plan
-1 388
-1 360
-1 345
-1 261
-1 172
Operating profit/loss excluding items affecting comparability
3 721
4 755
7 262
4 061
2 479
Items affecting comparability*
-
-
266
-330
-
Operating profit
3 721
4 755
7 527
3 731
2 479
Operating margin
Operating profit/loss excluding items affecting comparability
3 721
4 755
7 262
4 061
2 479
Net sales
22 759
22 795
23 952
19 479
16 327
Operating margin, %
16.4
20.9
30.3
20.8
15.2
Capital employed
Equity
57 370
56 923
56 950
46 992
42 516
Net financial debt
3 397
1 869
2 145
4 101
4 181
Capital employed
60 767
58 793
59 095
51 093
46 697
Return on capital employed
Operating profit/loss excluding items affecting comparability
3 721
4 755
7 262
4 061
2 479
Average capital employed
59 613
56 046
54 570
47 557
44 128
Return, %
6.2
8.5
13.3
8.5
5.6
Return on equity
Profit after tax
2 861
3 697
5 874
3 004
1 979
Average equity
56 746
54 140
51 299
43 326
40 718
Return, %
5.0
6.8
11.5
6.9
4.8
Net financial debt
Non-current financial liabilities
2 502
1 902
2 902
3 911
3 919
Non-current liabilities relating to right-of-use assets
132
160
158
173
175
Current financial liabilities
953
1 021
1 039
736
605
Current liabilities relating to right-of-use assets
95
91
89
71
112
Pension obligations
9
9
7
24
48
Non-current financial receivables
-46
-61
-97
-268
-290
Current financial receivables
-15
-50
-18
-39
-43
Cash and cash equivalents
-234
-1 202
-1 935
-507
-346
Net financial debt
3 397
1 869
2 145
4 101
4 181
Debt/equity ratio
Net financial debt
3 397
1 869
2 145
4 101
4 181
Equity
57 370
56 923
56 950
46 992
42 516
Net debt as % of equity
6
3
4
9
10
Equity/assets ratio
Equity
57 370
56 923
56 950
46 992
42 516
Assets
81 548
79 719
81 436
68 101
62 543
Equity/assets ratio, %
70
71
70
69
68
*See page 128 for what items affecting comparability refers to.
Holmen Annual Report 2024 127
Key figures

2024
Ten-year review,
finance
SEKm
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Income statement
Net sales
22 759
22 795
23 952
19 479
16 327
16 959
16 055
16 133
15 513
16 014
Operating expenses**
-18 563 -17 249 -15 865 -14 622 -13 250 -13 961 -12 984 -13 379 -12 626 -13 348
Change in value of biological assets
907
562
509
464
579
487
425
415
315
267
Share of profits of associates and joint ventures
7
6
10
0
-6
0
-9
-12
-22
7
EBITDA
5 110
6 114
8 607
5 321
3 651
3 486
3 488
3 157
3 179
2 940
Depreciation and amortisation according to plan
-1 388
-1 360
-1 345
-1 261
-1 172
-1 141
-1 012
-991
-1 018
-1 240
Operating profit/loss excluding items affecting
comparability
3 721
4 755
7 262
4 061
2 479
2 345
2 476
2 166
2 162
1 700
Items affecting comparability*
-
-
266
-330
-
8 770
-94
-
-232
-931
Operating profit
3 721
4 755
7 527
3 731
2 479
11 115
2 382
2 166
1 930
769
Net financial items
-62
-49
-87
-39
-42
-34
-25
-53
-71
-90
Profit/loss before tax
3 660
4 705
7 441
3 691
2 437
11 081
2 356
2 113
1 859
679
Tax
-798
-1 008
-1 567
-688
-458
-2 351
-89
-445
-436
-120
Profit/loss for the year
2 861
3 697
5 874
3 004
1 979
8 731
2 268
1 668
1 424
559
Diluted earnings per share, SEK***
18.0
23.0
36.3
18.5
12.2
52.6
13.5
9.9
8.5
3.4
Net sales
Forest
9 318
7 996
7 342
6 509
5 883
6 286
5 944
5 535
5 302
5 481
Renewable Energy
642
1 070
1 226
488
378
378
319
315
314
359
Wood Products
3 896
4 075
5 015
4 872
2 222
1 695
1 747
1 562
1 342
1 314
Board and Paper
15 238
14 965
15 105
11 702
11 066
11 986
11 356
10 934
10 682
11 620
Group-wide costs and eliminations
-6 335
-5 311
-4 737
-4 092
-3 222
-3 385
-3 311
-2 214
-2 128
-2 760
Group
22 759
22 795
23 952
19 479
16 327
16 959
16 055
16 133
15 513
16 014
Operating profit
Forest
1 947
1 523
1 401
1 495
1 367
1 172
1 185
1 069
1 001
905
Renewable Energy
265
697
1 006
347
215
336
181
135
120
176
Wood Products
2
6
1 237
1 668
185
62
246
80
-3
9
Board and Paper
1 702
2 730
3 796
743
886
944
1 018
1 053
1 192
772
Group-wide costs and eliminations
-194
-202
-178
-193
-174
-168
-154
-170
-148
-163
3 721
4 755
7 262
4 061
2 479
2 345
2 476
2 166
2 162
1 700
Items affecting comparability*
-
-
266
-330
-
8 770
-94
-
-232
-931
Group
3 721
4 755
7 527
3 731
2 479
11 115
2 382
2 166
1 930
769
Cash flow
Profit/loss before tax
3 660
4 705
7 441
3 691
2 437
11 081
2 356
2 113
1 859
679
Adjustment items
494
766
966
346
544
-8 208
540
418
965
1 802
Income tax paid
-425
-160
-1 639
-662
-569
-147
-396
-221
-504
-398
Changes in working capital
-412
494
-1 284
-145
46
158
-214
199
-360
443
Cash flow from operating activities
3 317
5 805
5 484
3 229
2 457
2 884
2 286
2 509
1 961
2 526
Cash flow from investing activities****
-2 066
-1 653
-1 352
-1 332
-1 924
-1 050
-1 005
-644
-123
-824
Cash flow after investments
1 251
4 153
4 132
1 897
533
1 834
1 281
1 865
1 838
1 702
Dividends paid
-1 831
-2 592
-1 862
-1 741
-567
-1 134
-1 092
-1 008
-882
-840
Share buy-backs
-647
-1 119
-
-
-
-1 430
-
-
-
-
*Items affecting comparability:
2022: Insurance compensation, and the costs and loss of revenue, associated with the turbine breakdown in Workington (SEK 266 million).
2021: Increased energy costs of SEK -330 million due to the turbine breakdown in Workington.
2019: Revaluation of biological assets amounting to SEK 9 079 million, impairment loss for associates of SEK -109 million and provisions of SEK -200 million.
2018: Restructuring costs of SEK -94 million.
2016: Disposal 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.
**Net after other operating income.
***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.
128 Holmen Annual Report 2024
Ten-year review, finance

For a ten-year review of the data per share, see page 55.
SEKm
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Balance sheet
Forest land and biological assets
57 843
56 348
52 151
47 080
43 202
41 345
18 701
17 971
17 595
17 340
Other non-current assets*
13 659
12 781
12 477
12 251
11 784
10 781
10 586
10 780
11 106
12 184
Current assets
9 750
9 277
14 758
7 956
6 878
6 264
6 845
5 710
5 852
5 607
Financial receivables
295
1 313
2 050
814
679
950
781
430
338
325
Total assets
81 548
79 719
81 436
68 101
62 543
59 340
36 912
34 891
34 891
35 456
Equity
57 370
56 923
56 950
46 992
42 516
40 111
23 453
22 035
21 243
20 853
Deferred tax liabilities
14 252
13 858
13 490
11 610
10 570
10 299
5 839
5 650
5 613
5 508
Financial liabilities and interest-bearing provisions
3 692
3 182
4 195
4 915
4 860
4 733
3 587
3 366
4 283
5 124
Operating liabilities
6 234
5 755
6 801
4 584
4 597
4 196
4 033
3 840
3 752
3 971
Total equity and liabilities
81 548
79 719
81 436
68 101
62 543
59 340
36 912
34 891
34 891
35 456
Capital employed
Forest
45 978
44 768
41 354
37 300
34 230
32 718
14 830
13 824
13 536
13 401
Renewable Energy
4 588
4 283
4 618
4 069
3 351
3 058
3 082
3 115
3 153
3 075
Wood Products
2 375
2 139
2 067
2 278
1 846
1 000
927
862
859
897
Board and Paper
8 019
7 625
7 571
6 806
7 246
7 491
7 387
7 626
8 053
8 964
Group-wide and other
-192
-22
3 485
640
24
-372
34
-455
-410
-684
Capital employed
60 767
58 793
59 095
51 093
46 697
43 895
26 261
24 972
25 190
25 653
Key figures
Operating margin, %**
Wood Products
0
0
25
34
8
4
14
5
0
1
Board and Paper
11
18
25
6
8
8
9
10
11
7
Group
16
21
30
21
15
14
15
13
14
11
Return on capital employed, %**
Industry (Wood Products, Board and Paper)
16
27
52
26
12
12
15
13
13
6
Group
6
8
13
9
6
9
10
9
9
6
Return on equity, %
5
7
11
7
5
35
10
8
7
3
Net debt as % of equity
6
3
4
9
10
9
12
13
19
23
Deliveries
Own forests, ’000 m3sub
2 643
2 702
2 813
2 833
2 841
2 699
2 816
2 883
2 945
3 132
Hydro and wind power, GWh
1 728
1 658
1 639
1 230
1 352
1 109
1 145
1 169
1 080
1 441
Wood products, ’000 m3
1 348
1 498
1 435
1 373
1 052
879
828
852
776
730
Paperboard and paper, ’000 tonnes
1 424
1 343
1 498
1 573
1 426
1 534
1 561
1 643
1 630
1 824
*Excluding non-current financial receivables.
**Excluding items affecting comparability.
Ten-year review, finance
Holmen Annual Report 2024 129

2024
Five-year review,
sustainability
2024 2023 2022 2021 2020
Production
Paperboard, ’000 tonnes
575
462
513
529
551
Market pulp, ’000 tonnes
76
76
77
80
84
Paper, ’000 tonnes
932
888
1 016
998
891
Wood products, ’000 m3
1 418
1 447
1 468
1 465
1 021
Hydro and wind power, GWh1)
1 573
1 502
1 561
1 230
1 352
Electricity production at the mills, GWh
628 2)
566
520
445
621
Material use rate
Wood, million m3sub3)
5.93
5.94
6.36
6.34
5.62
Purchased pulp, ’000 tonnes
84
71
77
77
78
Plastic granules/foiling material, ’000 tonnes
3.1
2.6
3.0
3.3
2.8
Energy purchased or acquired, GWh4)
7 638
7 428
8 416
8 754
7 875
Water use, million m3 5)
69
68
71
70
69
Chemicals, ’000 tonnes6)
131
139
147
147
147
Filler, pigment, ’000 tonnes6)
199
184
162
162
156
Emissions to air, tonnes
Sulphur dioxide (counted as sulphur, S)
59
54
49
50
64
Nitrogen oxides
946
892
899
811
902
Particulates
62
53
49
52
33
Methane
45
42
47
33
41
Nitrous oxide
39
37
48
46
51
Fossil carbon dioxide, ’000 tonnes
46
41
42
81
63
Biogenic carbon dioxide, ’000 tonnes
1 731
1 676
1 657
1 423
1 545
Emissions to water, tonnes
AOX (chlorinated organic matter)
34
36
36
39
38
Nitrogen
207
182
162
187
210
Phosphorus
20
18
12
16
19
COD (organic matter), ’000 tonnes
17
17
19
19
20
Suspended solids (SS), ’000 tonnes
3.0
3.8
3.6
3.2
3.5
Waste, ’000 tonnes7)
Hazardous waste
1.5
1.5
1.8
2.0
2.3
To energy recovery
0.6
0.4
To material recovery
0.9
1.0
To landfill
0.1
0.1
Non-hazardous waste
101
92
To energy recovery
19
14
To material recovery
80
77
To landfill
1.9
1.2
External energy supplies, GWh
Solid biofuels
2 311
2 587
2 004
1 907
1 638
Tall oil
138
146
156
164
158
District heating8)
29
25
26
23
11
Externally supplied energy9)
144
127
123
44
114
1) Own production of hydro and wind power refers to both wholly owned power plants and Holmen’s share in partly owned power plants. 2) 622 GWh was bio-based electricity
production. 3) At Group level, wood consumption is computed net, taking into account internal deliveries, which include roundwood and pulp chips from the sawmills.
4) As of 2023, energy recovered in Holmen’s processes is not included. 5) Surface water from lakes and rivers is used almost 100 per cent. 2.9 million m3 was consumed out of
69 million m3. 6) Expressed as dry matter. 7) From 2023 onwards, more key figures have been included for waste, to align reporting with ESRS requirements. Hence, data is only
reported for the current year and the previous year. As a result of new key figures for waste, the figure for hazardous waste in 2023 has also been updated from 1.4 to 1.5.
8) Refers to thermal energy supplied by Hallsta Paper Mill and Iggesund Mill. 9) Refers to electricity supplied from the mill in Workington.
130 Holmen Annual Report 2024
Five-year review, sustainability

2024 2023 2022 2021 2020
Employees
Employees, head count1)
3 624
3 620
3 520
3 514
3 436
of whom women
838
816
757
725
687
of whom men
2 786
2 804
2 763
2 789
2 749
of whom in Sweden
3 094
3 064
2 975
2 975
2 905
of whom in the UK
383
398
382
376
371
of whom in the Netherlands
73
75
79
82
83
of whom in other countries
74
84
84
81
77
Employees, FTE2) 3)
3 498
3 546
Permanent employees women
658
664
Permanent employees men
2 536
2 600
Part-time employees women
60
55
Part-time employees men
41
34
Temporary employees women
66
73
Temporary employees men
137
120
Employees under 30 years of age4)
404
446
Employees aged 30–504)
1 581
1 623
Employees over 50 years of age4)
1 209
1 196
Employee turnover, %
7.3
7.4
8.3
8.9
7.3
Total number of employees who left the company
264
267
New recruitments
199
253
Sickness absence, %
Total
4.7
4.6
4.7
4.1
4.3
of which long-term sickness absence5)
2.4
1.9
1.4
1.4
1.7
Number of work-related accidents6)
Work-related accidents, more than 8 hours of absence, per million hours worked
5.3
5.2
7.6
5.6
4.3
1) Number of employees calculated as the average number of permanent employees for the reporting period. 2) From 2023 onwards, the key figures for employees have been
updated to align reporting with ESRS requirements. Hence, data is only reported for the current year and the previous year. 3) See page 74 Note 4. 4) Relates to permanent
employees. 5) From 2024 onwards, long-term sickness absence is calculated as more than 15 days. Previously it was calculated as more than 60 days. Hence the increase
in long-term sickness absence in 2024, compared with the previous period. 6) Relates to employees. No work-related accidents with a fatal outcome occurred during the year.
Greenhouse gas emissions scope 1–3, ’000 tonnes CO2e
2024 2023 2022 2021 2020
Scope 1: Direct GHG emissions
61
54
58
97
79
Scope 2: Indirect GHG emissions from purchased electrical energy1)
0.5
12
29
60
38
Scope 3: Emissions in the value chain
708
609
604
550
460
of which category 1: Purchased goods and services
227
196
191
136
100
of which category 2: Capital goods
150
116
95
120
80
of which category 3: Fuel and energy-related activities2)
58
40
40
38
36
of which category 4: Upstream transportation
72
54
54
56
56
of which categories 6 and 7: Travel3)
4
4
4
4
4
of which category 9: Downstream transportation
197
199
220
196
184
Total emissions
769
675
691
707
577
1) In 2024 Holmen updated the method for calculating gross market-based GHG emissions. Emissions from the value chain for the production of market-based electricity were
previously in scope 2. These emissions have been moved to scope 3, category 3, in line with the GHG Protocol. 2) Increased due to updated calculation method. From 2024,
emissions in the value chain from electricity production are also included. 3) Based on the travel survey conducted by Holmen in 2019.
Holmen Annual Report 2024 131
Five-year review, sustainability

Business overview
holmen 2024
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
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
132 Holmen Annual Report 2024
Business overview

Production
facilities
Iggesund Mill
Products: Solid Bleached Board. Multi-
layered paperboard made from bleached
chemical pulp (SBB).
Brands: Invercote and Inverform.
Workington Mill
Products: Multi-layered paperboard,
surface layer of chemical pulp, core of
mechanical pulp (FBB).
Brand: Incada.
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 transport
packaging.
Hallsta Paper Mill
Products: Paper for books, magazines,
advertising and packaging.
Braviken Sawmill
Products: Spruce and pine construction
products.
Iggesund Sawmill
Products: Spruce and pine products for
joinery and construction.
Linghem Sawmill
Products: Spruce and pine construction
products.
Bygdsiljum Sawmill
Products: Spruce and pine products for
joinery and construction plus glulam and
CLT for the construction market.
Kroksjön Sawmill
Products: Spruce products for builders’
merchants and the construction industry.
Forest holdings
Holmen’s forests 2024
Total land acreage
1 303 000 ha
Total forest land acreage*
1 160 000 ha
– of which nature conservation areas
211 000 ha
Productive forest land**
1 045 000 ha
Total volume of standing timber
on productive forest land
127 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
River
Hydro power plant
%1)
GWh2)
Commis-
sioned
Umeälven
Harrsele
49
489
1957
Tuggen
22
98
1962
Gideälven
Stennäs
10
3
1989
Gammelbyforsen
10
1
1993
Björna
10
8
1986
Gideå
10
9
1986
Gidböle
10
6
1985
Gideåbacka
10
8
1995
Faxälven
Linnvasselv
7
16
1962
Junsterforsen
100
130
1961
Gäddede
30
22
1974
Bågede
100
71
1974
Iggesundsån
Pappersfallet
100
6
1915
Iggesund Power Station
100
22
2009
Ljusnan
Sveg
20
22
1975
Byaforsen
20
21
1975
Krokströmmen
9
42
1952
Långströmmen
11
32
1961
Ljusne Strömmar
7
17
1976
Motala Ström
Holmen
100
106
1990
Bergsbron-Havet
100
8
1923
Wind power
Varsvik Wind Farm
100
149
2014
Blåbergsliden Wind Farm
100
430
2021
1) Holmen’s share of production. 2) Holmen’s share of production in a normal year.
Business area
Products
Customer segment Primary markets
Competitors
Forest
Logs, pulpwood and biofuel
Sawmills, pulp mills, board
and paper mills
Sweden
SCA, Sveaskog and a
number of large forest
owner associations
Wood Products
Construction and joinery timber,
CLT and glulam, plus wood for
pallets and packaging
Construction and joinery
industry, builders’ merchants,
and packaging industry
Europe, Middle East & North
Africa, North America
Moelven, SCA, Setra, Södra,
Vida and a large number of
foreign companies
Board and Paper
Premium paperboard for consumer
packaging and paper products for
books, magazines, advertising and
transport packaging
Brand owners, converters,
wholesalers, publishers,
printers and retailers
Europe, Asia, North America Metsä Board, Mayr-Melnhof,
Norske Skog, Smurfit
Westrock, Stora Enso, UPM
Renewable Energy
Renewable energy from hydro and
wind power
Nordic electricity market
Fortum, Statkraft,
Vattenfall, Uniper
Holmen Annual Report 2024 133
Business overview

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.
Earnings per share (EPS)
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,
amortisation and impairment, 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 opera-
tions, 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 shut-
downs are not treated as an item affecting compara-
bility. Page 128 states which items have been treat-
ed 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 obligations,
less financial assets.
Operating margin
Operating profit/loss (excluding 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 aver-
age 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
Biofuel
Renewable fuels such as wood, black liquor, bark
and tall oil. Fuels that do not generate any net emis-
sion of carbon dioxide into the atmosphere, since
the quantity of carbon dioxide formed during
combustion is part of the carbon cycle.
Biotope and substrate
A biotope is an area with specific habitats. Substrate
is the surface on which an organism lives.
Bulk
Measure of the paper’s volume. Paper of the same
grammage can have different thicknesses depend-
ing on the paper’s bulk. High bulk means thick, but
relatively light, paper.
Carbon dioxide (CO2)
Carbon is the building block of life and is part of all
living things. Biogenic carbon dioxide is released
when biological material decays or is burned. Fossil
carbon dioxide is released when coal, oil or fossil
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.
Climate adaptation plan
Plan to manage climate-related risks and adapt
operations to climate change.
COD
Chemical oxygen demanding substances. A meas-
ure of the amount of oxygen needed for the com-
plete decomposition of organic material in water.
CSRD (Corporate Sustainability Reporting Directive)
EU law requiring large and listed companies to
report their sustainability impact.
Environmental Impact Assessment
A systematic analysis of the environmental impacts
of a planned activity or measure.
ESRS (European Sustainability Reporting Standards)
Standards that companies must follow when report-
ing under the CSRD.
FBB
Folding Box Board. Multi-layered paperboard made
from mechanical and chemical pulp.
Filler
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 fossil gas.
GRI (Global Reporting Initiative)
International cooperation body, in which many dif-
ferent 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 organi-
sations 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 man-
agement. 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 man-
agement system for health and safety. The manage-
ment 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
Cubic metre growing stock, solid over bark. The
volume of tree stems, including 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.
National Forest Inventory
A national inventory of Sweden’s forests that
provides data on the state of the forest and changes
over time.
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.
Phosphorus (P)
An element contained in wood. Excessive phos
phorus in the water may cause over-fertilisation
(eutrophication) and oxygen depletion.
Precautionary principle
Persons who pursue an activity or take a measure,
or intend to do so, shall implement protective meas-
ures, 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
techniques shall be used in connection with profes-
sional activities.
SBB
Solid Bleached Board. Multi-layer paperboard made
from bleached chemical pulp.
Skogforsk
Forestry Research Institute of Sweden.
Substitution factor
A measure of how much greenhouse gas emissions
are reduced when fossil raw materials are replaced
with renewable materials.
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 (SS)
Waterborne substances consisting of fibres and
particles that can largely be removed using a fine
mesh filter.
Transition plan
Describes how an organisation will reduce its
climate impact and achieve its climate objectives.
Tall oil
By-product of the sulphate pulp process used for
making soft soap, paints, biodiesel and other
products.
134 Holmen Annual Report 2024
Definitions and glossary

Good rating in CDP’s
annual assessment
CDP is an independent organisation that analyses climate
data from more than 24 000 companies every year. The
companies that report their sustainability work to CDP are
assessed on disclosure, awareness and management of
climate-related risks and opportunities. Holmen has
reported to the CDP Climate Program since 2007 and to the
CDP Forest Program since 2013. The results show that we
have a good strategy and management to mitigate negative
impacts of climate change. In the 2024 assessment,
Holmen was rated A- in the CDP Climate Program and B in
the CDP Forest Program.
Top EcoVadis
rating
On their most recent assessment, all Holmen’s paperboard
and paper mills were awarded a Platinum rating by the
international analysis company EcoVadis. Holmen’s two
paperboard mills were awarded EcoVadis Platinum in 2024
for their successful sustainability work, and in 2023 the two
paper mills received the same high rating. This award
places Holmen among the top percentage of the more than
150 000 companies examined worldwide. EcoVadis
assesses how companies work on the environment,
sustainable purchasing, ethics, workers’ rights and
human rights.
Holmen contributes towards
the UN’s Sustainable Development Goals
We have been building our experience for 400 years and we
constantly work to find long-term solutions to current chal-
lenges. Thanks to sustainable use of our forests’ ecosys-
tems, today we are able to operate a circular, renewable
and bio-based business that benefits 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.

The Biodiversity Intactness Index
Description of the Biodiversity Intactness Index on page 39
Ahead of the UN biodiversity conference in Montreal in 2022 (COP15), a
research group at the UK’s Natural History Museum launched the Biodiversity
Trends Explorer. This is a free tool open to everyone which can be used to see
how biodiversity is being affected by human activity. The change is stated as a
Biodiversity Intactness Index showing what percentage of a region’s natural
biodiversity remains. The index can assume values between 0 and 100, where
100 means that the function of an ecosystem is intact and that the ecosystem
is functioning as it always has, while 0 indicates an ecosystem that is com
pletely depleted. The desirable level in an area should be at least 90 per cent,
which can be seen as a threshold value that biodiversity must exceed.

The Biodiversity Intactness Index is based on the world’s largest database
of how ecological communities have been affected by mankind. The database
contains more than 4.7 million data points from over 41 000 places and
represents 58 000 species of plants, fungi and animals worldwide.

For the period 1970–2014, the index values are based on the actual values
contained in the database. From 2015 onwards, the index values are modelled
from available data in the database.
Sources: Natural History Museum. Global Forest Watch.
Holmen Annual Report 2024 135

Holmen AB (publ)
P.O. Box 5407, SE-114 84
Stockholm, Sweden
+46 8 666 21 00
info@holmen.com
Corporate ID No. 556001-3301
Registered office Stockholm