SUSTAINABILITY REPORT 2008 SUSTAINABILITY “Sustainable development is development that meets the needs of current generations without compromising the ability of future generations to meet their own needs.” Brundtland Commission’s original (1987) definition of the concept of Sustainable Development. Holmen’s business is Holmen sees sustain- based on natural and re- able development as newable raw materials a cornerstone of its from the forest. Holmen’s business. Financial business idea is to pro- development, concern cess these raw materials for the environment and into products and energy that social responsibility form a trinity satisfy key functions in society and in which each component is equally generate value for customers, share- important for the Group’s ability to holders and other stakeholders. survive and develop in the future. Holmen AB (publ) P.O. Box 5407 SE-114 84 STOCKHOLM SWEDEN Holmen and its World Tel +46 8 666 2100 Sustainability Report 2008 E-mail [email protected] www.holmen.com Registration number 556001-3301 Registred office Stockholm Holmen – a journey through four centuries In 1609, when Gustav V Östergötland had an armsasa’s factory grandson built in D Norrköpinguke Johan ofhe hardly imagined that this would be the start of an epoch that has already lasted four centuries. Louis de Geer, the father of Swedish industry, managed Since then H Holmen from 1627 olmen has been trans- formed many times over. During the first paper machines. Since then, until his death in 2008 troubled 17th century muskets, pistols, 1652. However, it was Decision to build We welcome your views and comments the formerly so widely diversified a Walloon, Wellam cuirasses, and brass were the main largest sawmill in company has gradually evolved into De Besche, who Scandinavia at products. Paper was first made in 1633 was involved from an international forest products Braviken. Production Holmen and its World provides answers to the very start, who but only briefly – the mill was destroy- group whose main products are paper, pointed De Geer in discontinued at many questions about Holmen’s approach to ed by fire after only ten years. Eventu- paperboard and sawn timber. Forestry Wargöns Bruk 2008 Concern for the environment the right direction. sustainability – but it’s a large subject and there ally, production concentrated on brass, and energy are becoming increasingly Lars Strömberg, Director of Sustainable and Environmental Affairs together with wool, which enjoyed a important lines of business. 2000. Group are certainly many more. So, we welcome +46 (0) 8 666 21 54 · [email protected] changes reputation for keeping the country’s Holmen installed one of Sweden’s first paper machines in 1837. further questions and comments on the topics Social responsibility Holmen It created a sensation with its continuous production of paper its name 2000 populace and its soldiers warm. ’S structure to Thommy Haglund, Senior VP, Group Human Resources Day is the in long webs. to Holmen that are covered in this report. outcome of changes in ownership +46 (0) 8 666 21 38 · [email protected] GooD times intersperse that occurred between 1988 and 1992, D W 1988. MoDo buys After the Russians laid waste iththe baD. 1988 Financial development when Holmen merged with MoDo Holmen and Iggesund district in 1719 the mill lay in ashes. and Iggesund, both of which have Anders Almgren, CFO, Group Finance But Holmen has always recovered, in +46 (0) 8 666 2116 · [email protected] ancient roots. The ironworks in 1977. Braviken 1977 Addresses new guise, with new production more Iggesund was founded in 1685, and Paper Mill is started suited to the needs of the day. In 1837 MoDo had its origins in a sawmill Holmen AB Holmen started one of the country’s set up in Mo in 1759. 1969. Holmen 1969 Head office Holmen Paper AB buys Wargöns Bruk P.O. Box 5407 SE-601 88 NORRKÖPING Holmen carried on its main business on Kvarnholmen Iggesund Paperboard AB in the rushing waters of Strömmen in the heart of SE-114 84 STOCKHOLM Sweden SE-825 80 IGGESUND Holmen Timber AB 1953 Norrköping for 377 years. The last paper machine was +46 (0)8 666 21 00 +46 (0)11 23 50 00 Sweden Box 45 still in operation there until March 1986. Iron manufacture 1953 [email protected] [email protected] +46 (0)650 280 00 825 21 IGGESUND Newsprint has been one of Holmen’s main products in Iggesund www.holmen.com www.holmenpaper.com [email protected] Tel 0650-280 00 ever since the middle of the 19th century. discontinued www.iggesund.com [email protected] Holmen Skog AB www.holmentimber.com A complete list of SE-891 80 ÖRNSKÖLD S VIK Holmen Energi AB 1915 addresses is available Sweden SE-891 80 ÖRNSKÖLDSVIK These coils of brass wire Hallsta Paper Mill on Holmen’s website: +46 (0)660 754 00 Sweden The majestic towered gateway into the 1915 lay in a wrecked ship on the sea- mill was erected in 1750. In stylised form founded in Hallstavik www.holmen.com [email protected] +46 (0) 660 754 00 bed in Kattegatt for more than 300 it was incorporated into Business Area www.holmenskog.com [email protected] years until the vessel was found Holmen Paper’s logotype up until just www.holmenenergi.com in the 1950s and the cargo a few years ago. was salvaged. 1873 1900 Mo och More about Holmen Domsjö Annual General Meeting Holmen in 90 seconds Allelopati Beståndsföryngring Biotop Bistam Brandfält Brand- 1876 Operations Dimensionsavverkning Enskiktat FläckmarkberedningContents Fröbanks- Annual Report 2008 Report Annual Holmen Annual Report 2008 provides sk uthålligt för Riktlinjer is set up 1873 Holmen’s business concept is to develop and run profitable business Holmen Skog manages the Group’s just over one million hectares of art Fröår Fungicider Fältskikt Förna Föryngringsavverkning 1837 within three product-oriented business areas for printing paper, paper- forests. The annual volume harvested in company forests is some 2.5 Groddplanta2007 Grundyta Heddegenererad mark HerbicidHolmen Hög- in brief I board and sawn timber as well as two raw material-oriented business million cubic metres. Holmen Energi is responsible for the Group’s The year in brief 1 areas for forest and energy. Europe is key market. hydro power assets and for developing the Group’s business within gallring Högläggning Intermittent Kvalitetsgallring Låga Låggall- detailed information The business area Holmen Paper manufactures about printing paper for the energy the sector. Normal yearlyGroup’s production amounts to some 1 100 ring Lägsta slutavverkningsålder Lövbränna Moder NaturskogCEO´s message 2 daily newspapers, magazines, directories, advertising matter and GWh of electric power at wholly and partly owned hydro power sta- Business concept, strategy and goals 4 The first paper Nollytefrekvens Nyckelelement Okulär Piskning Population books at two Swedish mills and one Spanish mill. Iggesund Paper- tions in Sweden. Holmen Skog and Holmen Energi are also responsi- Holmen Paper 10 board produces paperboard for packaging and graphic purposes at ble for the Group’s wood and electricity procurement, which are Referenslandskap Rostjord Rotröta Rödlistade arter Skiktad one Swedish and one English mill. Holmen Timber produces sawn important input goods to the industry. Iggesund Paperboard 14 financial performance and conditions ogsbruk Skärmställning Solitär Ståndort Successioner Sumpskog Surdråg timber in one Swedish sawmill. Annual production capacity is machine comes Financial targets Holmen Timber 18 1 940 000 tonnes of printing paper, 590 000 tonnes of paperboard and Temperatursumma Textur Tröskelvärde Uppfrysningsjordar Duke Johan, who founded the arms factory, Holmen Skog 20 1854 1876 340 000 cubic metres of sawn timber. Holmen’s profitability shall consistently exceed themarket cost of Urskog Vargtyper Årsmånsberoende Överståndare Allelopati This letter was signed by King capital. The financial position shall be strong with a debt/equity ratio of Holmen Energi 22 into production MSEK 2008 2007 2006 2005 2004 0.3–0.8. The ordinary dividend paid each year shall correspond to 2 Beståndsföryngring Biotop Brandfält Brandljud DimensionsProduction- and raw materials 24 on its markets during the year. 007 1806 Income statement was in fact heir to the throne, but his uncle 5–7 percent of equity. Net turnover 19 334 19 159 18 592 16 319 15 653 avverkning EnskiktatGuidelines Fläckmarkberedning Fröbanksart FröårShare and Shareholders 26 Karl IX in 1610 confirming that the AB Iggesunds The 2009 Annual General Meeting of Holmen dend is expected to be distributed by Euroclear Operating costs -16 630 -15 548 -14 954 -13 205 -12 570 AB will be held at “Vinterträdgården”, Grand Sweden on Wednesday April 2009. Share- Depreciation -1 343 -1 337 -1 346 -1 167 -1 156 Fungicider Fältskikt Förna Föryngringsavverkning GroddplantaBoard of Directors 28 Interest in associated companies 50 12 11 20 25 Share price and total return, Holmen B King Karl IX outmanoeuvred him in favour Holmen restarts Hôtel (entrance Royal), Stockholm, holders are requested to inform their account Items affecting comparability -361 557 - - - Grundyta Heddegenererad mark Herbicid Höggallring HögläggSenior- management 30 SEK at 4.00 p.m. CET on Tuesday 24 March. operator of any change of name and/or address. Operating profit 1 051 2 843 2 303 1 967 1 952 500 Norrköping arms factory received 1798 1837 Bruk is set up Net financial items -311 -261 -247 -233 -206 ning Intermittentfor Kvalitetsgallring Låga Låggallring Lägsta slutCorporate- Governance Report 2008 32 Guidelines forProfit before tax Sustainable740 2 582 2 056 1 734 1 746 450 Forestry Quarterly figures 37 of his own son King Gustav Adolf. 1759 Participation in Annual Report T a x -98 -1 077 -597 -478 -471 avverkningsålder Lövbränna Moder Naturskog Nollytefrekvens production of Annual General Meeting The Annual Report for 2008 will be posted Profit for the year 642 1 505 1 459 1 256 1 275 400 Multi-year review 38 its charter in the previous year.