Healthy profitability an important sustainability factor
Healthy profitability and a strong financial position are key factors that create conditions for development that is sustainable in the long term. Profitability is also a prerequisite for investments that allow the company to evolve in line with prevailing market conditions. Holmen's business is capital intensive and much expansion is the result of investing in additional capacity, improved production and more efficient use of energy. Aspects of sustainability are an integral part of all decisions made at Holmen. This brings the company closer to its goals every day. Holmen is essentially already part of the sustainable society through its operations – a successful and profitable company that manufactures products from natural raw materials.
Holmen has set financial targets that support long-term and sustainable financial development.
Holmen’s target is a return that is consistently above the market-based cost of capital. At Group level, the key indicator used to calculate profitability is Value Added; this is defined as operating profit/loss less the cost of capital and tax. It provides a simple and sufficiently fair yardstick that is continuously followed up for the Group, business areas and production units.
Holmen is to have a strong financial position that provides financial stability and enables the company to make correct, long-term business decisions that are not solely dependent on the state of the economy and external financing possibilities. The debt/equity ratio is to be in the interval of 0.3–0.8. Adjustment to this target is one aspect of Holmen’s strategic planning. Indebtedness fluctuated between 0.32 and 0.34 during the year, ending the year on 0.32.
Decisions on ordinary dividends are based on a total appraisal of the Group’s profitability, future investment plans and financial position. The Board has proposed that the 2013 Annual General Meeting (AGM) resolves in favour of a dividend of SEK 9 per share, corresponding to 3.6 per cent of equity. Over the past 10 years the ordinary dividend has averaged 5 per cent of equity. This means that 65 per cent of earnings per share has been paid out in ordinary dividends each year.
Under Share Data you will find a summary over data the last years.
Holmen sees active sustainability work as a key part of its business and as a driver of long-term commercial value. Legislation, other regulations and customer expectations
turn the spotlight on environmental issues and employment conditions.
Holmen’s business, which is based around the raw material resources of the forest, contributes to the important switchover to a bio-based social economy. This involves moving from an economy largely based on fossil raw materials to a resource-efficient economy based on renewable raw materials and products.
Local significance to financial development
The section Local significance describes the effect Holmen has on employment in the locations where the company has operations. Beyond its core operations, the company contributes to economic development through investments, research and development, and cooperation with companies and organisations in several of the places where the Group operates.
Other financial information
View the latest financial reports. The section Holmen in figures also features comparative data and trends compared to previous quarterly and annual results. In the Annual report 2012 with sustainable report there is also a ten year finance overview on page 94-95.