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.
The aim is that forest and energy, which constitute two-thirds of the Group's assets, will provide a stable return on capital employed of at least 5 per cent, while the industrial business will consistently return more than 10 per cent. Taken together this means that the Group's return will exceed 7 per cent.
Our financial position must be strong in order to secure room for manoeuvre when making long-term commercial decisions. The aim is for the debt/equity ratio not to exceed 0.5. In recent years the debt/equity ratio has remained at levels around 0.3, and at the turn of the year it was 0.23.
Decisions on ordinary dividends will be based on an appraisal of the Group's profitability, future investment plans and financial position. The Board has proposed that the 2016 Annual General Meeting (AGM) resolves in favour of dividend of SEK 10.5 per share, corresponding to 4.2 per cent of equity. Over the past five years the dividend has averaged 4 per cent of equity.
Under Investors / The share / 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. Holmen's Code of Conduct, 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. With the aim of reducing resource consumption and generating new income, new business concepts and products based on forest raw material and residual products are identified and developed.
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. The 2015 annual report also includes a ten-year financial overview on pages 92–93.