Holmen AB (publ)

Group earnings / cash & financial position (good but pressured by maintenance + weak markets): - Q3 result described as affected by cautious customers and a not-strong construction market, plus a maintenance shutdown that weighed on results. - Operating profit (Forest/wood supply business area, reported in segments): Stefan cited ~SEK 440m operating profit (slightly down QoQ) driven by lower pulpwood and timber selling prices, somewhat inflated harvesting costs due to storm-related felling, and deliveries affected by the extended production planning. - Management emphasized a strong cash flow and very strong financial situation.

Forestry/wood markets: prices down ~10% but stabilization hints; structural wood deficit is the “big longer-term” support (mixed): - Wood prices (the prices Holmen pays for wood inputs) are down ~10% on average, with storm impacts relevant when interpreting the chart. - Key uncertainty going forward: where wood prices go next—management said there is a feeling prices are more or less standing still. - Pulpwood in the Baltics showed a slight uptick, suggesting pockets of improvement. - Structural deficit: Sweden has too much industrial capacity vs. harvesting (a long-term support factor). - Storm impact: described as not a big effect on Holmen’s result overall, because they reallocate resources to harvest storm-affected areas (also on others’ land), and the cost implication is manageable.

Renewable energy (opportunity but also volatility/near-term operational constraints): - Europe outlook: management highlighted a period of rising gas prices, hurting European electricity cost competitiveness; meanwhile U.S. gas is stable-ish and China uses less gas (coal). - Electricity price dynamics described as highly volatile across regions (north Sweden vs SE3 vs continental Europe). - Q3 energy operating profit: ~SEK 42m, down vs Q2 mainly because northern Sweden electricity prices were lower and national grid maintenance reduced production capacity (grid work spillover). - Grid maintenance impact quantified: ~SEK 5–10m in Q3; no expected impact in Q4 (though future grid schedules are not fully known). - Hedging: only ~5–10% of wind/hydro output hedged; most sold to spot prices → earnings risk from power price volatility, but also upside in favorable markets. - Surprising/positive: management noted long-term benefit from increased transmission capacity (SE3–SE2), needed for new demand to connect in the north.