Sensitivity analysis for operational and financial risks.


Operational risks

A one per cent change in deliveries and price of the Group’s products or significant inputs is deemed to affect Group operating profit as per the table below.

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. 

Impact on operating profit Change Prices Deliveries
Paperboard +/-1 % 54 29
Paper +/-1 % 54 18
Wood products +/-1 % 16 5
Wood from company forests +/-1 % 12 8
Hydro and wind power +/-1 % 3 3
 
Inputs      
Wood* +/-1 % 28  
Electricity* +/-1 % 12  
Chemicals +/-1 % 12  
Other variable costs +/-1 % 14  
Delivery costs +/-1 % 14  
Employees +/-1 % 23  
Other fixed costs +/-1 % 12  

 

* Taking account of harvesting of company forests and generation of own electricity, net earnings sensitivity for the Group is SEK 16 million for wood and SEK 9 million for electricity. 

 

Financial risks

The table below shows the extent of the impact from a change in the Swedish  krona, the market interest rate and the price of electricity on Group profit before tax and equity next year, taking account of hedging. 

Earnings before tax Change SEKm
Exchange rates +/-1 % 23
  SEK/EUR +/-1 % 3
  SEK/USD +/-1 % 7
  SEK/GBP +/-1 % 8
  SEK/Other currencies +/-1 % 5
Electricity price +/-1 % 1
Borrowing rate +/-1 percentage point 21

 

Equity Change SEKm
Transaction hedging +/-1 % 99
Investment hedging +/-1 % 3
Equity hedging +/-1 % 2
Electricity hedging +/-1 % 8
Interest rate hedging
+/-1 percentage point 12
Debt/equity ratio
0.13

Net turnover (Msek)
16 133

Holmen AB, P.O. Box 5407, SE-114 84 Stockholm, Sweden. 

Tel: +46 8 666 21 00  E-mail: info@holmen.com

  

Modern Slavery Act Transparency Statement

  

  • Login
  • Personal data
  • Cookies
  • Search

© Holmen Group 2018