Glossary

Glossary-Investors

Margins

Gross margin

Operating profit before depreciation as a percentage of net turnover.

Operating margin

Operating profit as a percentage of net turnover.

Return

Return on capital employed

Operating profit as a percentage of average capital employed.

Return on equity

Net profit as a percentage of average shareholders’ equity.

Capital structure

Capital employed

Total assets less non-interest-bearing liabilities, non-interest-bearing provisions and interest-bearing assets.

Shareholders’ equity

Shareholders’ equity at the end of the period.

Interest-bearing net debt

Interest-bearing provisions and liabilities less interest-bearing assets.

Capital turnover

Net turnover divided by average capital employed.

Interest coverage

Operating profit plus financial income divided by financial costs.

Net debt/equity ratio

Interest-bearing net debt divided by shareholders’ equity.

Share of risk-bearing capital

Shareholders’ equity plus deferred tax liability as a percentage of total assets.

Equity ratio

Shareholders’ equity as a percentage of total assets.

Self-financing ratio

Cash flow from operating activities, excluding paid and received items and paid tax, divided by investments in fixed assets.

Per share data

Earnings per share

Net profit divided by the average number of shares. For 2000 and 2001, net profit is divided with the number of shares at the end of 2001.

Equity per share

Shareholders’ equity at the end of the period divided by the number of shares at the end of the period.

Cash flow per share

Cash flow before financing activities divided by the average number of shares during the period. The 2001 figure was cash flow divided by the total number of shares at the end of the period.

P/E ratio

Share price at year-end divided by earnings per share.

EV/EBITDA

Stock market value plus interest-bearing net liabilities divided by the operating profit before depreciation and write-downs. (EBI TDA =Earnings Before Interest, Taxes, Depreciation and Amortisation.)

Glossary - Environment

Aerated lagoon

Biological treatment method which reduces the BOD, COD and AOX content of effluent.

AOX

Absorbable organic halogens. Collective term for the quantity of chlorine bound in organic compounds. It is formed during bleaching of pulp with chlorinated chemicals, but is also formed naturally.

Bark steam boiler

A boiler that burns mainly bark and other biofuels to produce steam.

Biofuels

Renewable fuels originating from the plant kingdom, for example from wood, including black liquor and bark. Is part of the cycle of nature.

Black liquor

The name given to the consumed cooking liquid in production of sulphate pulp. Black liquor is burnt in the soda recovery boiler at which time the wood substances (primarily lignin) provide energy for steam and electricity production. One requirement for both the environment and economy is that the chemicals consumed in black liquid are reproduced in the sulphate mill to new cooking chemicals.

Bleaching

Chemical process used to produce a pure bright (white) and stable pulp. In Skärblacka environmentally adapted ECF-bleaching is used without chlorine gas.

BOD (Biochemical Oxygen Demand)

Biochemical oxygen demand is a measure of the amount of oxygen that is used by micro-organisms in 7 days’ decomposition of the emission.

COD (Chemical Oxygen Demand)

A measure of the amount of oxygen needed to complete oxidation of organic matter in water.

Condensate

Substances which, when being cooled, have condensed from gas to liquid form, e.g. steam which has condensed to water.

Corrugated board

Corrugated board is manufactured by gluing two flat layers of paper (liner) with a rippled layer (fluting) in the middle.

ECF-bleaching (Elementary Chlorine-free)

A method where pulp is bleached using chlorine dioxide instead of chlorine gas.

Emission

Discharge of substances to air, land and or water.

Environmental impact description

Investigation of the impact a special operation has on the environment.

Environmental aspects

Emissions from the mill and consumption of resources by the mill.

Evaporate

Using heat, the dry content of e.g. black liquor, is increased by removal of water and other volatile substances.

Fluting

The rippled middle layer in corrugated board, produced from either new or recycled fibre.

Fossil fuels

Fuels based on organic carbon and hydrogen compounds deposited in sediments or rock deposits – mainly coal, oil and fossil gas.

Hardwood

Normally birch. Hardwood has shorter fibres than softwood. The most important ingredient in fluting as well as writing and printing paper.

ISO14001

The International Organisation for Standardisation ISO’s standard for an environmental management system.

Landfill

Landfill site that is handled in a controlled fashion.

Leachate

The water (primarily rainwater) which leaks out from, e.g. a tip.

Lignin

Wood substance that makes up about 30% of the total wood content. Lignin is dissolved in the cooking process in pulp-making and is burnt together with dissolved carbohydrates as biofuel (black liquor) in the soda recovery boiler for energy production.

Lime kiln

Important part of sulphate pulp mill’s chemical recovery system. Lime sludge (calcium carbonate) is burnt in this kiln to produce lime.

MG Paper (Mono Glazed Paper)

Paper which is dried on a highly polished Yankee cylinder thus producing paper which has a very smooth, glossy surface on one side.

Market pulp

Pulp which is sold to paper mills.

Monitoring programme

A document that describes which check should be performed in order to ensure that the emissions conditions and other legal requirements are met.

Nitrogen (N)

A chemical element naturally present in wood. Discharges of nitrogen to water can cause nutrient enrichment, leading to luxuriant plant growth and subsequent oxygen deficiency when the plants decompose – a process called eutrophication.

Nitrogen oxides (NOx)

A group of gases composed of nitrogen and oxygen which are formed during combustion. In damp air, nitrogen oxides are converted to nitric acid, which causes acid precipitation.

Phosphorous (P)

A chemical element naturally present in wood. Discharges to water can cause nutrient enrichment, leading to luxuriant plant growth and subsequent oxygen deficiency when the plants decompose – a process called eutrophication.

Recipient

The part of the environment near a plant, e.g. air and water, which receives emissions.

Recycled fibre

Fibre material that has previously been used in a paper or board product.

Semi-chemical pulp

Pulp where the fibres are separated through a combination of chemical and mechanical processing (defibration).

Soda recovery boiler

A steam boiler with a chemical reactor at the bottom. The organic matter in the black liquor (wood residues) is burnt at a very high temperature. Steam is generated while the organic material forms a melt at the bottom of the boiler from which cooking chemicals are recovered.

Softwood

Wood from coniferous trees, pine and spruce. Has longer and stronger fibres than hardwood.

Sulphate pulp

Chemical pulp produced by cooking wood under high pressure and at a high temperature in cooking liquor, known as white liquor (sodium hydroxide and sodium sulphide). Sulphate pulp is also known as kraft pulp.

Sulphur dioxide (SO2)

A gas consisting of sulphur and oxygen formed during combustion of sulphur-containing fuels such as black liquor and oil. In contact with damp air, sulphur dioxide is converted into sulphuric acid which causes acid precipitation.

Suspended solids (SS)

Substances suspended in water consisting of fibres and other particles than can be separated with a filter.

Sack paper

Paper with high strength properties and used for the production of sacks. Made from softwood sulphate pulp.

Scrubber

Device used to wash gases. A flow of liquid removes particles, and dissolved substances, e.g. SO2, from gases.

The Licensing Board for Environment Protection

A licensing authority, giving environmental permits to big factories, for example pulp and paper mills. From 1999 the Licensing Board has been replaced by Environmental Courts.

White liquor

The name given to the cooking liquid which is used in production of sulphate pulp. It contains sodium hydroxide and sodium sulphide.

Wood room

The section of a pulp and paper mill where the incoming logs are debarked and chipped prior to cooking.