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Interim report January - June 2021 Q2 " The market for sawlogs continues to develop strongly . " SVEASKOG Net sales MSEK3.560 MSEK 3,609 January - June previous year Operating profit from continuing operations MSEK 79 MSEK 676 January - June previous year The result of the period MSEK1,087 MSEK 827 January - June previous year SIGNIFICANT EVENTS > The market situation for the Swedish forest industry con tinues to develop strongly , with Sveaskog being an important supplier of wood raw materials . > In connection with the Annu al General Meeting , the sus tainable forestry programme approved by the Board of Direc tors was launched as part of the company's long - term focus . > Sveaskog is starting a finance company to meet the needs of Sweden's forest contractors . > The ongoing pandemic has a limited impact on our operations and our profit . 1 APRIL - 30 JUNE 2021 > Net sales increased by three per cent to MSEK 1,867 ( 1,808 ) . Total delivery volumes increased by three per cent , while aver age prices of wood raw materials remained unchanged . > Operating profit increased by 77 per cent to MSEK 372 ( 210 ) . The increased profit is primarily due to increased volume from Sveaskog's own forest and a new method for valuing forest assets . The new method means that costs for reforestation , MSEK 120 , from this year are recognised in the item change in value of forest assets . Aside from the new method , the underlying profit is higher than in the previous year ( see more on pages 10 and 11 ) . The reported net change in value of standing timber amounted to MSEK 183 ( 154 ) . > Profit for the quarter amounted to MSEK 607 ( 312 ) , equivalent to SEK 5.13 ( 2.64 ) per share . MSEK Net sales Operating profit from continuing operations Change in value of forest assets Operating profit Profit before tax Profit for the period Cash flow from operating activities Earnings per share , SEK KPIs¹ , Group Dividend yield , % ( target at least 4.5 % ) ¹ , 2 Net debt / equity ratio , multiple ( target 0.3-0.6 ) ¹ Return on operating capital , % ² Return on equity , % ² Interest coverage ratio , multiple2,3 Equity ratio , % Net interest - bearing debt , MSEK Average number of employees Total delivery volume , thousand m³sub 3 months , Apr - Jun 2021 1,867 372 183 751 719 607 217 5.13 2020 1,808 210 154 434 394 312 18 2.64 1 JANUARY – 30 JUNE 2021 > Net sales decreased by one per cent to MSEK 3,560 ( 3,609 ) . Total delivery volumes were down by one per cent , while aver age prices of wood raw materials remained unchanged . > Operating profit increased by 17 per cent to MSEK 790 ( 676 ) . The increased profit is primarily due to a new method for valuing forest assets . The new method means that costs for reforestation , MSEK 127 , from this year are recognised in the item change in value of forest assets ( see more on pages 10 and 11 ) . > The reported net change in value of standing timber was MSEK 301 ( 307 ) . > Profit for the period amounted to MSEK 1,087 ( 827 ) , equivalent to SEK 9.18 ( 6.98 ) per share . % 3 % 77 % 19 % 73 % 82 % 95 % 1,106 % 94 % 6 months , Jan - Jun 2021 3,560 790 301 1,370 1,303 1,087 565 9.18 1 ) The lower dividend yield and net debt / equity ratio for the quarter are primarily due to a new accounting method for valuing forest assets . 2 ) Rolling 12 months . 3 ) Operating profit before change in value of forest assets excl . capital gains on property sales plus financial income divided by financial expenses . 2020 3,609 676 307 1,117 1,046 827 53 6.98 % -1 % 17 % -2 % 23 % 25 % 31 % 966 % 32 % 6 months , Jan - Jun 2021 3.1 0.13 28.4 26.6 10.1 68 7,843 828 5,595 Jul 2020 Jun 2021 6,548 1,234 12,475 14,074 13,925 11,127 1,135 93.98 2020 4.3 0.32 6.4 6.1 9.4 57 7,556 820 5,641 12 months 2020 6,597 1,120 12,481 13,821 13,668 10,867 623 91.78 12 months Jul 2020 Jun 2021 3.1 0.13 28.4 26.6 10.1 68 7,843 828 10,583 % -1 % 10 % 0 % 2 % 2 % 2 % 82 % 2 % 2020 2.4 0.13 28.2 26.2 7.6 68 7,613 827 10,629