Sustainable business goals follow-up
Forest
The forest is sustainably managed to provide a good annual return and stable value growth. Growth and harvests will increase over time.
In 2020, a new harvesting plan was drawn up for 2021–2030, under which the annual harvest will increase by 0.1 million m3 compared with 2016–2020, while keeping the amount of thinning unchanged.
Annual harvest, ’000 m3sub/year
Industry
Industry’s return on capital employed, %
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.
The return for industrial operations amounted to 12 per cent, with Paperboard and Wood Products exceeding the target by a good margin, while the return for Paper was weak.
Renewable energy
The production of renewable energy will increase by complementing our existing hydro power with wind power on our own land.
Due to a good supply of water, the production of hydro and wind power was higher than normal, reaching almost 1.4 TWh. 2021 will see the wind farm in Blåbergsliden become operational, which is expected to boost the Group’s annual production of renewable energy by a little over 400 GWh.
Production of hydro and wind power, GWh
Climate benefit
Climate benefit, million tonnes CO2e
We will contribute positively to the climate through higher growth in our forests, products that replace fossil-based alternatives and reductions in the fossil emissions along our value chain. Furthermore, expanding wind power will play its part in the transition to a fossil-free energy system in Europe.
In 2020, Holmen’s operations helped to generate a climate benefit of over 6 million tonnes of CO2e, with positive contributions from all the business areas. For further information, see page 30.
Capital structure
Our financial position is to be strong in order to secure room for manoeuvre when making long-term commercial decisions. Net financial debt will not exceed 25 per cent of equity.
At year end, the financial position remained strong, with a debt/equity ratio of 10 per cent.
Net debt as % of equity
Dividend
Dividend per share, SEK
Holmen will generate a good annual dividend for shareholders. The level is determined by the Group’s profitability, investment plans and financial situation. The dividend is supplemented with share buy-backs where this is judged to create long-term value for shareholders.
Based on a weighted assessment of the effects of the coronavirus pandemic, the decision was taken to pay a dividend of SEK 3.50 per share in autumn 2020. The Board proposes that the 2021 AGM approve a dividend of SEK 7.25 per share and an extra dividend of SEK 3.50 per share.