Definitions and Glossary


Return on capital employed

Operating profit/loss (excl. items affecting comparability) expressed as a percentage of average capital employed.

Return on equity

Profit for the year expressed as a percentage of average equity, calculated on the basis of quarterly data.


The Forest business area uses this key figure, which is calculated as the result before change in value in relation to the book value of biological assets.

Financial assets

Non-current and current financial receivables and cash and cash equivalents.

Net financial debt

Non-current and current financial liabilities and pension provisions, less financial assets.

Items affecting comparability

Used to illustrate how income measures were affected by events outside normal business operations, such as impairment losses, disposals, fire and restructuring. The effects of maintenance and rebuilding shutdowns are not treated as an item affecting comparability.

Cash flow after investments

Cash flow from operating activities less cash flow from investing activities.

Profit before depreciation/amortisation

Earnings before interest, taxes, depreciation, amortisation and change in value of forests, excl. items affecting comparability.

Result before change in value

Result before change in value, excl. items affecting comparability. Used for the Forest business area.

Earnings per share (EPS)

Profit for the year divided by the weighted average number of shares outstanding, adjusted for buyback of shares, if any, during the year. Diluted EPS means that any diluting effect from outstanding call options has been taken into account.

Operating margin

Operating profit/loss (excl. items affecting comparability) expressed as a percentage of net sales.

Operating profit

Profit before net financial items and tax.

Debt/equity ratio

Net financial debt divided by total equity.

Equity/assets ratio

Equity expressed as a percentage of total assets.

Capital employed

Net financial debt plus equity, which corresponds to fixed capital plus working capital less the net sum of deferred tax assets. Average values are calculated on the basis of quarterly data.




Renewable fuels such as wood, black liquor, bark and tall oil. Fuels that do not generate any net emission of carbon dioxide into the atmosphere, since the quantity of carbon dioxide formed during combustion is part of the carbon cycle.

Bio co-location

A co-location of different operations for more efficient use of raw materials and energy, amongst other benefits.


Measure of the paper’s volume. Paper of the same basis weight can have different thicknesses depending on the paper’s bulk. High bulk means thick, but relatively light, paper.


Chemical oxygen demanding substances. A measure of the amount of oxygen needed for the complete decomposition of organic material in water.


Folding Box Board. Multi-layered paperboard made from mechanical and chemical pulp.

Phosphorus (P)

An element contained in wood. Excessive phosphorus in the water may cause over-fertilisation (eutrophication) and oxygen consumption.

Fossil fuels

Fuels based on carbon and hydrogen compounds from sediment or sedimentary bedrock – mainly coal, oil and natural gas.


Fillers, such as ground marble and kaolin clay, are used to give the paper bulk and make it more uniform in structure and brighter.

Precautionary principle

Persons who pursue an activity or take a measure, or intend to do so, shall implement protective measures, comply with restrictions and take any other precautions that are necessary in order to prevent, hinder or combat damage or detriment to human health or the environment as a result of the activity or measure. For the same reason, the best possible technology shall be used in connection with professional activities.


Global Reporting Initiative. International cooperation body, in which many different groups of stakeholders in society have drawn up global guidelines for how companies are to report on activities encompassed by the umbrella term of sustainable development.

Branches and treetops

Waste such as branches and treetops that arises when the harvester trims the tree stems.

ISO 50001

An international energy management systems standard that provides a framework for energy efficiency measures.

ISO 9001

An international standard for quality management systems. Primarily aimed at companies and organisations that wish to improve two aspects of their operations, i.e. to ensure more satisfied customers and lower costs.

ISO 14001

An international standard for environmental management. Important principles in ISO 14001 include regular environmental audits and a gradual increase in the requirements.

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 wood is burned. Fossil carbon dioxide is released when coal, oil or natural gas is burned.

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.


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.

m3 growing stock, solid over bark

Cubic metre growing stock, solid over bark. The volume of tree stems, incl. bark, from stump to top. Generally used as a measure for growing forest.

OHSAS 18001

A series of international standards regarding a management system for health and safety. The management system includes monitoring, evaluating and reporting on health and safety work.


Solid Bleached Board. Multi-layer paperboard made from bleached chemical pulp.


Particles of ash formed in incineration of bark or liquor, for example.

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).

Suspended solids (SS)

Waterborne substances consisting of fibres and particles that can largely be removed using a fine mesh filter.

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.

Tall oil

By-product of the sulphate pulp process used for making soft soap, paints, biodiesel and other products.


Thermo-mechanical pulp. Obtained by heating spruce chips and then grinding them in refiners.

Wood-containing paper

Paper that is manufactured from mechanical pulp.

Woodfree paper

Paper that is manufactured from chemical pulp.