Boosting business with science

Innventia Group Annual Review 2014

3Innventia Group Annual Review 2014

3 President’s message

5 Highlights 2014

12 Business area Biorefining

14 Business area Material Processes

16 Business area Packaging Solutions

18 PFI

20 Board of Directors

21 Executive Board

22 Corporate social responsibility

24 Financial statements

© INNVENTIA ABCover picture: The Self-Collapsing Packaging DemonstratorPhotographs by Fotograf Johan Olsson, PFI and Innventia. Printed by SIB-tryck, Norsborg, in April 2015

Contents

At the beginning of the year we launched our Papermaking Towards the Future report, the second in our Global Outlook series. We also introduced a new model for our multi-client research programme, we ran several internal campaigns within our InnMind idea management system to take advantage of all our employees’ ideas for developing research and the organisation as a whole, and we began our structured external monitoring using the Wide Narrow tool to get a clearer view of changes in the world around us that affect our research. These activities will help to leave us better equipped to focus our research on areas of long-term interest to the industry and to take advantage of new opportunities within the bioeconomy of the future.

The responses to our new Innventia Research Programme 2015-2017 confirm that our research is of interest and that we understand the challenges the industry faces. We have just started the seven programme areas and the two major projects, which include more customers than our previous programmes. The revised model offers both pre-competitive research, in which the results can be published, and application-oriented projects, in which customers’ wishes in terms of focus and confidentiality are important factors. For the first time, Innventia will be joined by our Norwegian subsidiary PFI, contributing its expertise to the research programme.

Our motto – “Thinking new, thinking ahead and thinking together” – and acting as an innovation partner together with our customers feel highly topical and relevant. Thoughts about the bioeconomy of the future are increasingly coming to the forefront throughout society, and during the year a number of our initiatives received public funding while others

were given a significant boost, including within the fields of environmentally friendly textiles, bioenergy, nanocellulose, lignin for the carbon fibre of the future, safe pharmaceutical packaging and self-cleaning plates. The list goes on and on. It is therefore also important that we decide on our future research focus based on our expertise, our insight into the future and our customers’ expectations. Following a basic preliminary study in 2014, we have therefore now started the A Cellulose-Based Society project with the intention of defining our future role as a research institute, to ensure that we contribute towards the role of the pulp and paper industry within the bioeconomy of the future. The project will lead to another Global Outlook report, due for release in 2016.

Many initiatives are under way to strengthen research, both in Sweden and in Europe. The VINNOVA-backed BioInnovation project opens up opportunities for Innventia, as do the EU initiatives Horizon 2020 and BBI. Innventia is contributing via programme committees and with expert advice and project plans. Public funding is important, and the focus of research is guided by requests for cooperation and co-funding from the industry, which vouches for its relevance.

These are exciting times, in which more and more of the opportunities offered by forest raw materials for tomorrow’s society are no longer just thoughts and ideas, being based instead on research findings. We simply need to keep ensuring that our raw materials are at the centre of research, development and innovation.

Birgitta SundbladPresident

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High-lights 2014

JANUARY � The Self-cleaning Dinnerware generated a lot of attention in media. This demonstrator was developed by Innventia and design bureau Tomorrow Machine inspired by Ekoportal 2035.

FEBRUARY � Cellulose electronics a key factor in new energy storage project.The MODULIT project will develop a new type of storage unit using printed electronics.

� The industry-owned innovation project ”NaProBio: Nanocellulose production in a holistic biorefinery approach” was granted funding from the Research Council of Norway, with PFI as main research partner.The NaProBio project aims at developing an innovative process for production of nanofibrillated cellulose (NFC) from chemical pulp, with focus on optimizing all steps from wood chips to NFC.

MARCH � Innventia’s wood room conference celebrated its 30 anniversary in Karlstad with a focus on Wood 2012, Stora Enso Skoghall’s new wood room. The first conference was held back in 1984.

� Innventia successfully produced its first spool of lignin multifilaments for further converting to carbon fibres. Innventia is now investing in new equipment for multifilament spinning and thus enhances the establishment of a Swedish test bed for lignin-based carbon fibre (see page 8).

� Innventia Global Outlook Papermaking towards the future was released during a festive event at Innventia on 17 March (see page 4). At the same time, Innventia Research Programme 2015-2017 was launched (see page 6).

� Innventia gave a professional development course 22-24 March on Designing the Forest Biorefinery, in connection to the 5th Nordic Wood Biorefinery Conference, NWBC 2014.

� NWBC 2014 was held in Stockholm 25-27 March. The conference presented the latest ideas and developments in biorefinery separation and conversion processes as well as new biobased products from the wood based biorefinery: energy, chemicals and materials. These developments will shift the focus from tonnes to diversified customer solutions.

APRIL � Kick-off at KTH/Innventia of 23 new projects within the WoodWisdom-Net+ Programme. Innventia is participating in four projects: PRONANOCELL (Innventia coordinator), WOTIM, COSEPA and HEMICELL. The projects aim to develop new green composite materials from the wood sector.

� Innventia starts offering accredited analysis of the carbohydrate composition of pulp, and of bisphenol A and a variety of metals in plastic materials.

� Stefan Löfven, today Sweden’s Prime minister, visited Innventia together with the Swedish Television.

� Innventia participated at TAPPI PaperCon 27-30 April in US. A hot topic for dicussions was the Global Outlook Papermaking Towards the Future.

PAPERMAKING TOWARDS THE FUTURE

We released the report Packaging 2020 – Innventia Global Outlook Report two years ago. Of course, we had hoped that the report would be received well. But we weren’t prepared for the wide-reaching international impact it quickly had. In March, 2014, we release our second Global Outlook Report, Papermaking Towards the Future.

The report is a critical analysis of the most important questions for the industry today and in the future. Based on an expert survey with 150 respondents from 21 different countries, interviews, workshops and teamwork, Innventia has identified, together with the analysis company Kairos Future, the key drivers and trends that will be increasingly important as the industry moves towards year 2030. Based on the survey, a future scenario is described in which modern biorefineries are the core of many business clusters. A well organised operational structure has developed over time, in which companies that sell bioenergy, materials, chemicals and consumer products work together to drive biorefining forwards. The bio-based society has finally become a reality. Bio-based plastics, chemicals and textiles account for almost 50 percent of their respective market shares, and fibre-based materials are used for many different applications.

The report was presented during a release party at Innventia on 17 March, 2014, which also saw the launch of the new three-year Innventia Research Programme 2015-2017. During the year, Papermaking Towards the Future has been presented at a number of conferences and events. This has been met with a great deal of interest, resulting in the launch of a new blog about papermaking: Innventia Paper Blog.

NAPROBIOThe NaProBio project aims at developing an innovative pro-cess for production of nanofibrillated cellulose from chemical pulp, with focus on optimizing all steps from wood chips to NFC.

The process to be developed will serve as a tool for assist-ing the industry partners in building a demonstration plant for the production of NFC for sale to a defined initial mar-ket. Laboratory studies will be performed in order to test the theories and technologies in practice before proceeding with pilot experiments. This will help to reduce risk and to strengthen the basis for directing this project forward. The project will strengthen national forest-based sector in a period of major restructuring.

The NaProBio project is a cooperation between Treklyngen Holding AS (Project Owner), Elkem AS and Paper and Fibre Research Institute (PFI).

Innventia’s Chairman Mikael Hannus at NWBC 2014

Visit by Stefan Löfvén, Prime Minister of Sweden

Paul Krochak was the project manager of Papermaking Towards the Future.

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MAY � VINNOVA granted SEK 500,000 to the research project “Packaging systems for reduced food waste”. The project is coordinated by Innventia and brings together relevant players to develop resource-efficient packaging solutions that lead to a reduction in resource consumption and environmental impact in the form of unnecessary food waste.

JUNE � WOTIM website was launched. WOTIM is the acronym for Wood-based thermal insulation materials and is a project within the WoodWisdom Net Programme. In this project, superior cellulose based insulation materials are developed. The target is that the performance of the novel cellulosic insulation materials is at comparable level with the materials made of polyurethane foams.

� Innventia and Swerea SICOMP launch a road map for carbon fibre from lignin, a wood raw material. The target is to by 2025 have developed a new high-value Swedish product for use primarily in advanced composite materials.

� Cooperation between Innventia and KTH in developing new process technology rendered scientific successes. The method for spinnings nanocellulose was reported in Nature Communications.

� Innventia and BillerudKorsnäs entered a collaboration with the purpose of building a mobile demonstration plant for nanocellulose and to test the material in full-scale papermaking. The project is financed by VINNOVA, Innventia and BillerudKorsnäs.

INNVENTIA IN NATURE COMMUNICATIONSResults showing the successful assembly of fibrils from cellulose into very strong threads were published. The origin of the technology is an interdisciplinary collaboration with Innventia as partner within the Wallenberg Wood Science Center, which is located at KTH and Chalmers. Innventia also manufactured the fibrils used and is responsible for patenting the new technology. The new method is able to align the fibrils along the direction of the thread during the production process. This produces a controlled structure that can give extremely strong threads, which was demonstrated in tests at the DESY research centre in Hamburg. The structure makes the material stronger than both steel and aluminium, and can be used to replace glass fibres. The process can also be adjusted to produce threads that could replace cotton. The results are so spectacular that they were reported in the highly respected scientific journal Nature Communications.

TRANSPORTABLE DEMONSTRATION FACILITY FOR NANOCELLULOSE PRODUCTION

In 2014, Innventia and BillerudKorsnäs entered a collaboration with the purpose of building a mobile demonstration plant for nanocellulose and to test the material in full-scale papermaking. The project is financed by Vinnova, Innventia and BillerudKorsnäs. Thanks to this collaboration, the development towards new nanocellulose-based materials can take a leap. Later, more companies will be offered access to the demonstration plant as a support in their innovation processes

Nanocellulose can be used as additives in papermaking to make lighter and stronger paper and board. It can also be used in a variety of other applications in the food, pharmaceutical, and construction industry. This means that paper is given completely new properties and could replace plastics, for example, in many areas. More products could thus be produced from renewable and biodegradable raw material.

The new mobile demonstration plant will make it possible to produce nanocellulose on a large scale for use in full-scale trials on paper and board machines. The availability of test beds and demonstration plants are often crucial for up-scaling new processes.

INNVENTIA RESEARCH PROGRAMME 2015–2017

Innventia Research Programme 2015–2017 consists of seven Programme areas and two separate Projects, each addressing problems of great interest to a consortium of Innventia customers.

Programme Areas � The modern kraft pulp mill � Lignin value chain � Source-efficient paper and board making � Fibre and stock design � Nanocellulose processing for various applications � Boosting packaging performance � Brave new wood – Biobased materials

Projects � Design of advanced tissue products � Renewable barriers for packaging

NEW MODEL FOR INNVENTIA RESEARCH PROGRAMME

The work carried out within Innventia Research Programme is focused on improving the existing products and processes as well as demonstrating new opportunities with novel materials, chemicals, and products. By working together in pre-competitive projects we get leverage by joining forces and better success in public funding.

Through the significant changes that have taken place – and continue to take place – within the industry and the search for new business opportunities, we have now developed a new model for the Innventia Research Programme which meets our customers’ wishes for greater flexibility. This new model comprises a mandatory pre-competetive part and a selection of applications in each programme area.

We use the term Pre-competitive Research to mark projects and activities of a more generic nature. The Pre-competitive Research is idea and science driven. It is intended to take advantage of scientific opportunities and provide Innventia customers with cutting edge knowledge and expertise that will enhance the capability for future technical development and applications.

Every customer participates in the Pre-competitive Research which is also leveraged by public funding. You have, however, many possibilities to add further value to your investment by participating in one or more Application oriented projects or initiate projects by your own.

We believe that this model gives a high degree of flexibility between pre-competetive research and application oriented research, both area-based and value chain-based.

The programme areas and projects are continuously subject to prioritisations, due to on-going changes for the industry that can affect the direction of R&D investments. Participation in Innventia Research Programme 2015–2017 means opportunities to influence areas and content.

A Programme area consists of a number of Themes that together with Innventias pre-existing know-how form the basis for a number of Application oriented research projects. Participation in a Programme Area means you get information from all themes.

Theme 1

Pre-competetive Application oriented research

Theme 2

Theme 3

Application 1 Application 2 Application 3

Innventia Research

Programme 2015–2017

Issued in September 2014

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JULY � RISE Research Institutes of Sweden held seminars during the Almedalen week in Visby. One of the seminars concerned textiles made from wood, a topic which engaged both politicians, the industry and the users.

AUGUST � Innventia launched a new project in which case studies using thermography at paper and board mills will be carried out with the goal to integrate it into the QCS system. This is expected to bring significantly better possibilities to detect process variations compared with the current point-based technology.

� Innventia launched a feasability study aiming towards uniform function standards to optimise corrugated board packaging. Guidelines prescribing the suitable quality of the lowest possible but sufficiently high grammage would lead to reduced environmental impact and lower costs during manufacture and transportation.

� Innventia’s internal Research Forum highlights new areas for research and development. The campagne Dragons’ Den is launched to bring forward new ideas for future research projects at Innventia.

SEPTEMBER � Innventia Days 16-17 September brought together our customers within the research programme for discussions and information on current activities at Innventia. The first day also included a panel discussion with participants from trade and industry outside the pulp and paper businesses to give their perspective on biobased materials. In addition to the seminars, Innventia Partner customers were given a demonstration of the new multifilament lignin extruder during lab visits on the second day (see page 8).

� Innventia hosted TAPPI’s International Research Management Committee (IRMC) – a group of chief technology officers and academics – during its meeting in Stockholm 23-24 September.

� Aron Tysén received his licentiate degree on 30 September at Karlstad University with the thesis “Thermographic method reveals the drying time in the sheet”. The work was carried out at Innventia within the Vipp (Values Created in Fiber Based Processes and Products) industrial graduate school at Karlstad University.

OCTOBER � Open house at Innventia’s advanced laboratory for environmental and transport testing and packaging development during the EMPACK2014 fair, 15-16 October in Stockholm.

� Innventia participated at Top Packaging Summit by Packbridge, 22-23 October in Helsingborg presenting the latest Global Outlook Papermaking Towards the Future and showcasing a number of demonstrators of new materials.

� The 5th Recent advances in cellulose nanotechnology research seminar was arranged at PFI, 28-29 October. The seminar was a successful event, counting with 70 attendees from 14 countries, and an impressive list of renowned speakers.

TEST BED FOR LIGNIN-BASED CARBON FIBRES

Right now, Innventia is building up an R&D infrastructure for carbon fibre from lignin. The process includes plans for a continuous carbon fibre production line, since the opportunity to step up through a continuous pilot scale is essential in order to devise demonstrators ahead of industrial implementation. We can, however, already achieve a great deal with both monofilament and multifilament lignin spinning.

The infrastructure makes it possible to work on different scales as needed and it is also available for use by external parties. Companies are welcome to use the resources to evaluate different types of lignin produced in different ways, and their potential as a raw material for lignin-based carbon fibre. The first step towards a new business opportunity may well begin with a screening study which can tell whether the mill’s black liquor has the right properties for producing various lignin products.

The scope of the Vinnova-funded Test bed for Swedish lignin-based carbon fibre project includes producing data for a continuous pilot facility. Another key factor is building up a consortium. Having players all the way along the value chain, from raw materials suppliers to end-users and research institutes, is extremely important.

NEW THESIS ON THE INFLUENCE OF FORMATION AND PULP TYPE ON NON-UNIFORM DRYING AND AIR FLOW

The removal of water is an integral part of tissue production. Through air drying (TAD) is used for premium tissue grade products. This process provides both better absorption and bulk compared to traditional dewatering by pressing, but is very energy intensive. A better understanding of the TAD process may lower energy demand.

Aron Tysén has in his licentiate work at Innventia investi-gated the influence of grammage, formation, i.e. variation in local grammage, and pulp type on non-uniform drying and air flow through the sheet. A method was developed, based on infrared thermography, to determine local drying time of laboratory sheets on a sub mm-scale, while monitoring air flow and pressure drop of the TAD process. Modified perme-ability, i.e. the air flow through the fibre network at a given grammage, was used to evaluate air flow characteristics.

ROAD MAP FOR LIGNIN-BASED CARBON FIBRES

In recent years, Innventia has focused sharply on carbon fibre from lignin through knowledge-generating research, setting up consortia and investing in testing and demonstration resources.

Carbon fibre is strong and light and has many applications. Today, the demand for carbon fibre is mainly limited by the high cost. As a result, the material is currently primarily used in products where performance is more important than price. By introducing a cost-effective lignin-based carbon fibre, the market could increase considerably. In June, 2014, Innventia together with Swerea SICOMP, launched a joint road map in order to show how this vision could be possible in just ten years.

The target is to by 2025 have developed and created a demand for a new high-value Swedish product from wood raw materials: lignin-based carbon fibre, for use primarily in advanced composite materials. In addition, the Swedish R&D, research infrastructure and production expertise throughout the value chain, from forest-based raw materials to high quality carbon fibre for use in advanced construction materials, will be developed in order to contribute towards establishing industrial carbon fibre production in Sweden.

The targets will be achieved through a close cooperation between Innventia and Swerea SICOMP, from pulp-mill-produced lignin to lignin-based carbon fibre composites and components, in close collaboration with industrial play-ers along the value chain. It is important to emphasize that, although the value chain is long, two existing value chains are linked together through the produc-tion of lignin fibres. The driving force for the forest industry is a new product, and for businesses further down the value chain the driving force is the need for cost-effective, renewable carbon fibre.

TIMELINE/STEPS � Work on a laboratory scale and pilot scale until 2017/2018, with the goal of

producing data for a demonstration facility. � Prior to industrial operation, establish a Swedish national demonstration

facility for lignin-based carbon fibre, including composite manufacturing, with an annual capacity of approximately 50 tonnes of carbon fibre.

� Component testing 2018-2022. � Industrial production in Sweden by 2025.

LignoBoostlignin

� Södra � Holmen � SCA � Valmet

� Södra � Holmen � SCA

� Biteam � Oxeon � Blatraden � Svenskt

Konstsilke

� Clean Motion � GKN � VW � Volvo AB � Volvo Car � Scandinavian

Wind

Identif ication of the operator in progress

INNVENTIA Swerea SICOMP

Lignin fibre Carbon fibre Fabric and composites

Applications

Innventia Days 2014

Research seminar at PFI

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� Innventia’s project “Resource-efficient tissue production from brazilian raw materials” (2014-2016) was granted financing from VINNOVA’s programme for International Cooperation for Eco-innovations.

NOVEMBER � The new EU project Banus will involve developing functional barriers for a variety of packaging examples that guarantees food safety, even when using recycled plastic and paper from recycling processes that are not currently approved for food packaging.

� The Smedpack project was granted financing for a third step. The research collaboration is going to produce security solutions which prevent counterfeit medicines entering the legal distribution chain. The new packaging concept will make it easier for consumers to distinguish genuine products from fake ones.

� The LIGNOJET project was granted financing from VINNOVA’s programme for International Cooperation for Eco-innovations. The focus is jet fuels from lignin (2014–2016).

� Innventia was represented at an exhibition during the European Paper Week in Brussels on 25–27 November.

� The innovation project “E2POXII: New low-energy process for production of mechanical pulp” was finalised (2011–2014).

� The Norwegian pulp and paper prize 2014 (Treforedlingsprisen 2014) was awarded to Senior Research Scientist Lars Erik Johansson from PFI for his strong contributions as an internationally leading research scientist within mechanical pulping.

DECEMBER � Dr. Fredrik Wernersson Brodin and Prof. Kristin Syverud from PFI were awarded the prize for the most downloaded article

THE SMEDPACK PROJECT

Counterfeit medicines are a growing global problem which is putting people’s lives in danger and compromising their safety. One contributing factor is the lack of cooperation throughout the distribution chain from producer to consumer. The fact that many people are now choosing to buy medicines online also means that the stage at which checks are carried out is disappearing, leaving the responsibility with the consumer.

Smedpack, a collaborative project within Vinnova’s Challenge-driven Innovation programme, will contribute towards counteracting counterfeit medicines through concepts for secure pharmaceutical packaging. These concepts might consist of secure seals, elements with unique serial numbers, apps or other solutions which make it easier for users in different parts of the chain to check that the pharmaceutical packaging is genuine.

The project has aroused considerable interest from the public as well as from industry, and was in 2014 granted financing to take the step from concept to commercial solutions. In the new third stage, great importance is placed on internationalisation issues, which is why including partners such as the Swedish Customs Service and the Police Authority is crucial to the project. The number of partners is also being increased from 20 to 30. Working on a broad front within the value chain is a key success factor for the project and crucial in identifying weak points and arriving at solutions.

PILOT TRIALS ENABLED BY RISE TEST BEDS AND DEMONSTRATOR PROJECT

RISE Research Institutes of Sweden’s cross-sectoral VINNOVA-financed Test Beds and Demonstrators project (2013-2014) aimed to give more players – primarily small and medium-sized enterprises and universities – access to test beds such as Innventia’s FEX pilot paper machine. This facility is being discovered by more and more players, with both companies and researchers carrying out papermaking experiments here. The paper machine’s industrial-like process enables trials to be carried out under conditions similar to those found in industry. Seventy different trials were carried out last year using the FEX paper machine, taking anything from a few hours up to three weeks.

Pilot studies are often needed in research and development to demonstrate that an idea that works in the lab will also work on a larger scale. Small and medium-sized companies as well as universities can find it hard to afford to carry out this type of research on their own, and there are too few of them to have the necessary breadth of expertise. They now have the opportunity to carry out trials within the RISE Test Beds and Demonstrators project. Through Innventia, many of them also find new collaborations and business partners. For small companies, it can be hard to make contact with large companies, but Innventia can open doors and create meeting places. Test beds are an excellent way of coming together and pushing the boundaries for adopting new technology.

2014 by Nordic Pulp and Paper Research Journal. The article in question was entitled “Cellulose nanofibrils: Challenges and possibilities as a paper additive or coating material – A review” and was also coauthored by Prof. Øyvind W. Gregersen from NTNU.

� Innventia was granted funding for the establishment of a full-scale test bed for processes that create highly deformable paper, e.g. 3D paper, from VINNOVA. This will enable verification of new product concepts and lead to a decrease of non-biodegradable waste streams and more energy efficient production processes.

� PFI was granted funding for the research project “GreenEOR: Green high performance systems for Enhanced Oil Recovery” from the Research Council of Norway

� PFI was granted funding for the research project “NanoVisc: NanoVisc: Development of high-performance viscosifiers and texture ingredients for industrial applications based on Cellulose Nanofibrils (CNF)” from the Research Council of Norway

� The innovation project “Competence: New cost-effective magazine paper grade with tailor-made electrical properties for optimal printing performance” was finalised (2011-2014).

� The innovation project “WaterFlu: Development of high-performance and environmentally friendly water-based fluid systems for the oilfield industry” was finalised (2012-2014).

� The TABRE (New techniques for abrasion resistance of printed packaging surfaces) project, was finalised (2011-2014).

� The first phase of the joint RISE project Testbeds and Demonstrators was finalised (2013-2014). A new two-year period of the project, starting in February 2015, aims to further develop and implement the findings from phase 1.

� The Innventia Cluster Research Programme 2012-2014 was finalised and the first meetings with the Project Boards within the New Innventia Research Programme 2015-2017 were held.

One of the security solution demonstratorsdeveloped in the Smedpack project.Security solutions may also help determining the packaging is opened.

Lars Erik Johansson, PFI

European Paper Week

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Biorefining

PULP AND SPECIALITY CELLULOSEProduction efficiency in kraft pulping is closely related to the yield issue. In replacing anthraquinon, it has been shown that both alternative oxidative and reductive chemicals can be used, giving yield increases while maintaining strength properties. The addition of hardwood xylan from black liquor is an alternative that can also improve the strength properties of softwood kraft pulps, giving pulps with improved refining ability. The understanding and possibilities for a controlled distribution of extractives and non-process elements throughout the fibre line through washing efficiency is another important area. There is now a high degree of interest in possibilities for the production of novel pulp qualities that are particularly suitable for textile fibres. The opportunities producing such pulps by implementing modified alkaline delignification strategies has been investigated as a way of broadening the product area of kraft pulping. Highly reactive pulps can be produced in this way. Lennart Salmén, lennart.salmen@innventia.com

LIGNIN AND CARBON FIBRESThe production of lignin using the LignoBoost technology is now an industrial reality. Two industrial LignoBoost plants are now in operation. A number of projects were carried out 2014 on lignin processing and lignin applications, combining our special competences in lignin chemistry, polymer chemistry, analytical chemistry, separation and purification of lignin to produce kraft lignin with properties tailored for different applications. One promising application is lignin-based carbon fibres – load-bearing in e.g. cars and wind mills, or activated for advanced adsorption applications. During 2014 we installed new equipment: 1) a new melt extruder for spinning lignin into multifilaments, enabling larger amounts and thinner filaments to be produced, and 2) equipment for stabilisation and carbonisation under tension. Innventia and Swerea SICOMP have drawn up a joint road map for the further development towards industrial production of lignin-based carbon fibre. Work has started on the next stage: developing decision support for a pilot-scale plant (“test bed”), including technical specifications, budgeting data, time frame, geographic location and business model. Per Tomani, per.tomani@innventia.com

ENERGY AND BIOFUELSOne of the great challenges faced by industry and society as a whole is to increase energy efficiency and replace the use of fossil raw materials with renewable alternatives. Within this focus area, we have extended our activities relating to biofuel production into the chemical industry during 2014. In our collaboration within the Chalmers Energy Initiative, we have studied the system effects of using intermediates such as pyrolysis oil and lignin to replace fossil naphtha as feedstock for petrochemicals. We have also been highly active in setting up the national strategic innovation area BioInnovation, which has the vision of contributing to the conversion of

the Swedish economy into a “bioeconomy” by 2050. In the European-Brazilian multi-client value chain project Polynol, we have continued to develop process concepts for the production of second generation (2G) sugars that can be used in fuel production and as chemical intermediates. Marie Anheden, marie.anheden@innventia.com

MODELLING AND RECOVERYAccumulation of non-process elements (NPEs) is one of the most common factors causing process disturbances in a kraft pulp mill, which, in turn, leads to production losses, decreased energy efficiency, loss of process chemicals and lowered quality of the final product. During 2014 the Chemical and Energy Recovery cluster project, which has the basic aim of understanding, describing and controlling the physical and chemical behaviour of NPEs in the kraft pulp mill, came to a conclusion. The outcomes from the cluster resulted in two presentations at the International Chemical Recovery Conference in Tampere, regarding manganese behaviour during brownstock washing and a mill survey of NPE levels in the recovery cycle for six pulp mills. The Innventia full mill simulation models, used in both customer projects and larger programmes such as Polynol, are continuously updated with new findings regarding the process chemistry from the more fundamental research carried out at Innventia. The models have been used in trouble shooting, for evaluating new concepts’ capacity increases, for evaluating new process strategies and as a basis for decision-making in general. Åsa Samuelsson, asa.samuelsson@innventia.com

CHEMICAL AND MATERIAL ANALYSISTo support our commissioned customers and Innventia’s own research, both reliable standard methods and the development of powerful new research methods are needed. During the year, we have therefore expanded our range of accredited standard analyses in our two major research fields: product safety analysis and analyses for the biorefinery. Within product safety, we have implemented accredited methods for the determination of the hormone-disrupting substance bisphenol A and a range of metals. We have also accredited one of our most common analyses for biorefinery research and are proud to say that we are – to our knowledge – the world’s first provider of accredited analysis of carbohydrate composition in wood and pulp. Our work with high-resolution mass spectrometry (HRMS) and nuclear magnetic resonance (NMR) in solid and liquid state has continued in close cooperation with other Innventia competence areas, e.g. lignin and carbon fibres and pulp and specialty cellulose. For example, during 2014 we have implemented state-of-the-art 2D-NMR techniques for the determination of intramolecular linkages in lignin as well as head-space HRMS methods to study volatile components released from lignin upon heat treatment. Anna Jacobs, anna.jacobs@innventia.com

The Biorefining business area focuses on improving the performance of kraft pulp mills, including not only pulp production and chemical recovery but also the separation and production of value-added products from lignin and hemicellulose and new ways to produce cellulose for traditional and new applications. Examples of promising developments during 2014 include high reactivity cellulose with very high alkali solubility, strategies for producing LignoBoost lignin tailored for melt extrusion into lignin fibres and the subsequent production of carbon fibres. In most of our activities, process simulation of water, energy balances and process disturbances due to inorganic elements, including system analysis to evaluate economical and environmental performance, are carried out.

Peter Axegård, Vice President peter.axegard@innventia.com

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Material Processes

PAPERMAKING PROCESSESActivities within the papermaking processes area strive towards high resource efficiency and flexibility, a combination which will allow the industry to strike a balance between traditional paper grades and new innovative solutions.

A lot still remains to be done when optimising paper production. Papermaking trials performed at the FEX pilot facility in 2014 provided breakthrough insights into how to design, control and characterise one of the fundamental operations in papermaking: mixing chemicals in a fibre suspension.

Paper with properties that make it behave and feel like textiles, advanced substrates for printed electronics, highly deformable materials and foam forming are a few of the opportunities for the future we demonstrated on a pilot scale.

Indeed, “Papermaking Towards the Future” was the title of Innventia’s second Global Outlook Report, a critical analysis of the key questions, drivers and trends that will be increasingly important as the industry moves towards the year 2030. Marco Lucisano, marco.lucisano@innventia.com

MATERIALS FOR PACKAGINGWithin this area, the objective is to increase the understanding of how paper materials contribute to better packages. During 2014 we have worked with paperboard, with studies on how paperboard should be designed in the through-thickness direction in order to get good package performance with little risk of undesired cracking. Material properties in different plies have been characterised, and paperboards with different through-thickness gradients have been evaluated. Comparisons between experimental data and finite element simulations of packages have shown that out-of-plane shear properties contribute more to package stiffness and strength than was previously known. Hence, paperboard design in different plies can contribute towards both good usage of fibres and improved package performance. The idea of using finite element simulations to optimise product performance has long been unexplored in the package industry. However, our studies show that we have great potential to incorporate finite element simulation into product development of paperboard grades. Mikael Nygårds, mikael.nygards@innventia.com

NANOCELLULOSENanocellulose can be used as an additive in papermaking to make lighter and stronger paper and board. It can also be used as a barrier film for food packaging or to reinforce plastic (both renewable and petroleum based) for the production of composites. 2014 saw the launch of the new research programme area “Nanocellulose for various applications”, which will run from 2015 to 2017. The programme will use Innventia’s pilot facilities to develop, optimise and demonstrate up-scaled processes for the production of nanocellulose. There is also a focus on

developing characterisation methods and processing routes to tune and control the NFC properties that meet the demands for subsequent use and the development of film, foam and filament forming processes.

An important step in the up-scaling and industrial implementation of nanocellulose was taken during 2014. In a unique collaboration between BillerudKorsnäs and Innventia, a mobile demonstration plant is now being built which will make it possible to produce nanocellulose on a large scale for use in full-scale trials in paper and board machines. The project is being financed by VINNOVA, Innventia and BillerudKorsnäs, and in the end of 2016 the plant will be ready to use by Innventia’s customers. Anna Wiberg, anna.wiberg@innventia.com

FIBRE KNOWLEDGE AND STOCK PREPARATIONA large wood characterisation project within the Strategic Research Environment Bio4Energy was completed in which 6,000 spruce samples were analysed using SilviScan. The measurement results are used to quantify genetic properties and wood properties in order to form a knowledge base for tree improvement. Both the forest industry and new biorefinery benefit from the results of this fundamental study.

The production of FE (fines-enriched) pulp and its strength enhancing effects on board products produced from CTMP were demonstrated on a pilot scale at FEX. Innventia now has a knowledge platform in this area and can assist its partner customers with the introduction of the production concept.

The product-specific research area of tissue is steadily growing, with an increasing number of companies financing the research in this area. The unique measurement methods related to compressibility and absorption properties that were developed at Innventia during 2014 attracted a great deal of attention. Hannes Vomhoff, hannes.vomhoff@innventia.com

The focus within the Material Processes business area is to work in projects together with industry to develop more raw materials and energy-efficient manufacturing processes, to develop new and improved paper, board and tissue products and to identify and develop processes and products based on nanocellulose. The activities range from research projects to consulting work, and our customers come from all over the world. The research is based on competences in fluid and solid mechanics, chemistry and physics, and we have tools ranging from advanced mathematical modelling to pilot scale trials on an industrial scale. The FEX pilot plant presents opportunities for researchers to work on an industrial scale in the areas of paper and board making as well as stock preparation and fibre treatment. Our main focus is to develop new knowledge and competences for our customers, as well as implementing the results within industry.

Torgny Persson, Vice President torgny.persson@innventia.com

16 17Innventia Group Annual Review 2014Innventia Group Annual Review 2014

Packaging Solutions

MATERIAL DESIGNOur research is focused on three types of materials originating from the wood or agricultural sector: structural, barrier and mechanoactive materials. These can be applied as mono-materials or as composites. The biobased barriers and mechanoactive materials are mainly aimed at packaging applications, whereas the structural materials are multi-application materials, ranging from packaging to the automotive and construction sectors, depending on the macromolecular design of the components and the choice of process. Another research area is material identity, a psychophysical methodology where we relate technical material properties to tactile perception, visual appraisal and feelings. In this field we have started cooperation with Delft University of Technology. We have also developed methods for the evaluation of sensory and emotional values of materials. One of our approaches is to show the potential of the new materials in demonstrators. In 2014, for example, we made a self-collapsing packaging demonstrator and an adapting packaging demonstrator, in collaboration with designers. Another way of demonstrating the new materials this year was to show that it is possible to 3D-print some of them. Within the Renewable Barriers for Packaging cluster we managed to develop hemicellulose-based oxygen barrier coatings on paper board, as well as performing pilot trials at the partner companies. Successful extrusion coatings, with water and sealant layers, were produced using Innventia’s large pilot extrusion equipment. The New Wood Fibre-Based Materials cluster successfully demonstrated several structurally strong composites, including effective production methodology. A new understanding of how to decide which type of cellulose fibre to use and how to control stability was also achieved. Helena Halonen, helena.halonen@innventia.com Sverker Danielsson (acting), sverker.danielsson@innventia.com

PRINTING SOLUTIONSPrinting solutions relates to the properties of surfaces (primarily paper), how they can be altered and how they affect printing results. We also study interactions between substrate and ink in a way that takes printing technology into account, and work with predicting printability and print quality. We have many years of experience of most printing techniques. Today, we are increasingly focusing on packaging printing and we are also studying how new materials can be printed on to achieve the best possible results. Another aspect involves printing new functions. Can certain functions be printed locally? Which functions can be achieved? Is it possible to print barriers, for example, on only one part of packaging? Within paper optics, we carry out research relating to the reliability and precision of the reference standards for fluorescent reflectance factors for the paper and printing industries. Anita Teleman, anita.teleman@innventia.com

PACKAGING DEVELOPMENT AND PRODUCT TESTINGOur services enable our customers to develop their products in a timely and cost-efficient manner while ensuring the required product quality and transportation reliability. An important part of accommodating these customer values is the performance testing of transport packaging. Not only is Innventia certified to conduct tests according to international standards, we have also been frontrunners for a number of decades in developing customised standards for various business demands in close partnership with representatives from the industry in question. In addition to packaging, environmental exposure to products (e.g. vibrations and climate) are tested in our well-equipped accredited test laboratory in Kista. We also use our knowledge and equipment for research into transport packaging and corrugated board. Innventia is now working on a feasibility study aimed at achieving uniform function standards to optimise corrugated board packaging. Annika Kihlstedt, annika.kihlstedt@innventia.com

SUSTAINABLE SOLUTIONSSustainability is fundamental to our research here at Innventia, and is a natural part of all our research. In 2014, the Innventia Sustainability Platform was developed and is now being used in our research projects. Within the focus area of sustainable solutions, we evaluate the materials we develop in terms of sustainability. We also carry out sustainability studies on behalf of our customers. Another important aspect – particularly for players within the food sector – is that the materials used for packaging must be approved. Here, Innventia runs the Normpack self-assessment project, which is constantly growing. Through Miljöpack, we support the Swedish packaging industry by monitoring and influencing the development of legislation and regulations relating to packaging and sustainability with a focus on the Packaging Waste Directive. We also evaluate the societal impact of new materials and products, e.g. how they will be dealt with after use, through either reuse or recycling. In 2014 a new project, “Packaging systems for reduced food waste”, was initiated involving actors along the value chain for three different food categories. Kristina Wickholm, kristina.wickholm@innventia.com

The Packaging Solutions business area creates business opportunities together with our customers by developing sustainable and functional material and packaging solutions. In 2014 we have developed our focus areas in terms of both new competences and equipment. We have strengthened our methods for working with different kinds of demonstrators to show new materials that can be a reality in the biobased economy. We have also had success in new projects that tackle important areas for the future circular bioeconomy, such as the food waste problem and the issue of a secure value chain for medical products and their packaging.

Catharina Ottestam, Vice President catharina.ottestam@innventia.com

The self-collapsing packaging and the adapting packaging are two of Innventia’s latest demonstrators for new materials. The textile-like paper can be patterned with soft and rigid areas, opening up opportunities for packaging solutions that can adapt their size depending on context. The demonstrators are a result of a collaboration between designer Alexandra Denton and Innventia’s researcher Hjalmar Granberg.

18 19Innventia Group Annual Review 2014Innventia Group Annual Review 2014

FIBRE AND PAPERPFI has considerable experience from research on reducing specific energy consumption in the pulp and paper industry. Application areas include TMP and CTMP refining, as well as reduced steam consumption in the paper machine. The strategies for reducing specific energy consumption vary from mill to mill, and can include the addition of chemicals to the refiner, increased pressure and production or altered furnish composition. PFI has in-depth knowledge of refining processes, and has experience from a large number of pilot and full-scale trials as well as raw material selection. As the market for wood-containing publication paper shrinks, there is great potential in developing and identifying new and alternative application areas for high yield pulp. For example, PFI focuses on tailor-made mechanical pulp and furnishes for packaging and tissue products. PFI also performs research on new applications for mechanical pulp, such as biocomposites and building products. As a tool throughout PFI’s activities, PFI has considerable experience of the characterisation of raw material, fibre, furnish and paper properties. Lars Johansson, lars.johansson@pfi.no

BIOENERGY AND BIOREFINING PFI has in-depth experience of biorefinery technologies, including both thermochemical and biochemical conversion routes. Fast pyrolysis is a central process in PFI’s research on energy carriers. The strategy is to convert solid biomass into bio-oil that can either be used directly as a heating fuel, or further upgraded into higher value second generation biofuels and/or chemicals. As an example, PFI performs research on pyrolysis oil-based transport fuels that are suitable for shipping. PFI is in the process of establishing a new pilot plant for fast pyrolysis including catalytic upgrading of the produced bio-oil. Within biorefining, PFI has a high focus on developing new methods for mild and efficient separation and isolation of the polymeric constituents of lignocelluloses, as well as their conversion into high value-added products. Here, typical R&D activities include the co-production of fibre materials and bio-chemicals, and new products derived from hemicelluloses, lignin and pyrolysis liquids. PFI is currently establishing a unique pre-treatment reactor, enabling pre-treatment using organic solvents at short retention times and high temperature or pressure. Kai Toven, kai.toven@pfi.no

NANOCELLULOSE AND CARBOHYDRATE POLYMERSThere is significant commercial interest in nanocellulose. PFI has considerable research activities within this research field, including nanocellulose production and modification, as well as various nanocellulose applications. The application areas are vast, and PFI’s research includes paper additives, barriers, rheology modifiers, emulsifiers, biomedical and oil field applications. In December 2014, PFI was granted funding for two new research projects. The first project targets the use

of nanocellulose for enhanced oil recovery, while the other project deals with nanocellulose as a viscosifier and texture ingredient in industrial fluids. PFI works continuously to obtain increased control of both cellulose and carbohydrate polymer building blocks at molecular, nano and macroscale levels. Interactions with other materials are of great importance, and through this our abilities to tailor desired material properties are even broader. PFI has excellent techniques and expertise for the characterisation of material structures, all the way from macroscale to subnano level. The PFI research scientists Fredrik Wernersson Brodin and Kristin Syverud were recognised for authoring the most downloaded article in the Nordic Pulp and Paper Journal in 2014 (co-authored by Øyvind Gregersen from NTNU). The article was a review article on the use of nanocellulose as a paper additive or coating material. Kristin Syverud, kristin.syverud@pfi.no

BIOCOMPOSITESThe market for biocomposites continues to grow, and is expected to have a significant share of various applications, including construction and automotive products, infrastructure, packaging and within the health sector. The use of lignocellulosic raw materials as a resource for novel biocomposites is a strategic research field at PFI. Key aspects in this respect are the appropriate use of fibres and nanofibres, the production and utilisation of bioplastics, and the corresponding characterisation of biocomposite structures, where PFI has made substantial contributions. Additionally, there is a growing interest in 3D printing as an enabling technology. PFI also carries out research activities in this area, and considers this field to be highly relevant for custom-made 3D formed biocomposites. Gary Chinga Carrasco, gary.chinga.carrasco@pfi.no

Paper and Fibre Research Institute (PFI)

PFI is a subsidiary of Innventia with offices in Trondheim, Norway, and performs research within the focus areas of fibre and paper, biorefining and bioenergy, nanocellulose and carbohydrate polymers, and biocomposites. The majority of PFI’s activities are targeted long-term projects in close cooperation with industry customers. The high quality of PFI’s research was recognised through two prize awards to PFI scientists: the Norwegian Pulp and Paper Prize 2014 and the prize for the most downloaded article in the Nordic Pulp and Paper Research Journal in 2014. Participation in the international research arena is important to PFI. In addition to many scientific contributions in journals and at international conferences, PFI arranged an international research seminar within nanocellulose in November 2014, with 70 attendees from 14 countries.

Philip André Reme, Managing Director philip.reme@pfi.no

20 21Innventia Group Annual Review 2014Innventia Group Annual Review 2014

Chairman:Mikael Hannus, Vice President Biorefinery, Stora Enso

Karin Emilsson, Director of Technology, Södra Skogsägarna ekonomisk föreningGöran Harrysson, Previously Managing Director, AB Tetra Pak and CTO, Tetra Pak Group (retired)Margareta Norell Bergendahl, Professor, KTH Royal Institute of TechnologyOlof Sandén, President, RISE Research Institutes of Sweden ABOla Schultz Eklund, Senior Vice President, Director of Business Development and Innovation, Holmen Magnus Wikström, Senior Vice President Technology & Strategic Development, BillerudKorsnäs AB

Personnel representatives: Ewa Lie, SAK Pierre Ljungquist, Unionen

President:Birgitta Sundblad

Anders Pettersson, Senior Vice President Market Strategy and Business DevelopmentAnders Engström, Vice President Legal and Business SupportKarl Gustaf Ekfeldt, CFO Administration and SupportPeter Axegård, Vice President Business Area BiorefiningCatharina Ottestam, Vice President Business Area Packaging SolutionsTorgny Persson, Vice President Business Area Material ProcessesPhilip A. Reme, Managing Director PFI AS

Executive Assistant: Veronica Sundling

Executive Board

From the left: Magnus Wikström, Olof Sandén, Ewa Lie, Mikael Hannus, Birgitta Sundblad, Margareta Norell Bergendahl, Pierre Ljungquist, Göran Harrysson and Ola Schultz Eklund. (Karin Emilsson missing in picture.)

From the left: Anders Pettersson, Veronica Sundling, Karl Gustaf Ekfeldt, Peter Axegård, Anders Engström, Birgitta Sundblad. Philip A. Reme, Catharina Ottestam and Torgny Persson.

Board of Directors 2014

22 23Innventia Group Annual Review 2014Innventia Group Annual Review 2014

Corporate social responsability

The greatest sustainability effect from Innventia’s operations comes via the industrial application of the results from our ongoing project activities. The vast majority of our projects result in a reduction in resource consumption (energy, water, chemicals and fibres), greater use of renewable raw materials or some other form of reduced environmental impact. The aim is often to improve productivity, which is essential in order to achieve economic sustainability. Benefits to society in terms of lower emissions and improved usability are other social aspects of the results of our projects.

The increasingly intense debate and discussion on the bioeconomy of the future also provides a boost for Innventia’s sustainability work with new materials and products based on renewable forest raw materials as a replacement for fossil raw materials.

Protecting the commercial value of Innventia’s research is vital if the results obtained are to be implemented profitably within industry and thereby have a real effect. Dealing with the intellectual property rights in connection with the results from projects is therefore an important issue for Innventia.

Our employees’ expertise and motivation are fundamental to effective and innovative R&D. Innventia works actively to clarify operational and individual targets, the organisation’s distribution of responsibilities and continuous skills development for each employee. Working to develop bioenergy, biochemicals and sustainable materials based on renewable raw materials is often mentioned by our staff in surveys as motivational factors which make them proud to work for Innventia.

Other internal activities aim to achieve energy savings at our premises and to save materials in our operations.

KEY ACTIVITIES DURING 2014Together with other RISE institutes, Innventia has taken part in a joint CSR project that has resulted in a proposal for a common definition of sustainability for the research institutes within RISE.

Cooperation with politicians and authorities is becoming ever more important as we strive to achieve a sustainable society. A number of activities were carried out in 2014 to increase collaboration: � A road map for carbon fibre development has been drawn up together with Swerea SICOMP and presented in various customer contexts as well as to potential financial backers such as VINNOVA and the Swedish Energy Agency.

� We have submitted referral comments on a number of questions and are now participating actively in the Swedish forest industry’s National Research Agenda project through our involvement in bodies such as the Programme Council.

� Together with the Swedish Forest Industries Federation and the management of RISE, we have presented a number of new sustainable future applications for forestry fibres to our Members of the European Parliament in Brussels.

� Through our Normpack and Miljöpack trade and industry groups, we have ongoing contact with the Swedish National Food Administration and the Swedish Environmental Protection Agency, and act as a referral body. During the autumn, Miljöpack held a one-day training session for the Swedish Environmental Protection Agency.

� We participated in the RISE arrangements for Almedalen Week. � We have held discussions with the Swedish Centre for Architecture and Design (ArkDes) on sustainable cities and how research can be presented to the public.

� We have also welcomed many visitors from authorities and politicians including Prime Minister Stefan Löfvén.

SUSTAINABILITY IN OUR HEARTOne long-term goal is that sustainability should permeate everything we do, within both our internal way of working and our external research and commissioned activities. We call this “Sustainability in our heart”.

Internally, this includes operational plans at business area, group and individual level in order to comply with Innventia’s core values, business concept and vision. During 2014, we also carried out an internal survey about the company’s “Sustainability in our heart” goals.

Externally, the importance of sustainability was emphasised in connection with the launch of the Innventia Research Programme 2015-2017. A sustainability analysis is included in every part of the programme.

INTERNAL ACTIVITIES FOR EXTERNAL BENEFIT

In our effort to be seen as an attractive innovation partner for industry, Innventia follows the motto “Thinking new, thinking ahead and thinking together”. The Innventia Research Programme is an important part of this. A number of activities are being carried out as part of the development of new programmes in line with external needs: � a joint idea management system � “Dragons’ Den” – funding project ideas that are not yet

ready for industrial cooperation � a joint research seminar for increased cross-collaboration � Innventia Global Outlook reports.

InnMind

24 25Innventia Group Annual Review 2014Innventia Group Annual Review 2014

BALANCE SHEET ASSETS SEK 1,000 2014-12-31 2013-12-31

FIXED ASSETSTangible assetsBuildings 0 485Equipment, tools, fixtures and fittings 23,773 22,648Fixed assets in progress 5,987 4,364

29,760 27,497Financial fixed assetsOther long-term security holdings 5,025 5,025Other long-term receivables 771 0

Total fixed assets 35,556 32,522

CURRENT ASSETSInventories and work in progressInventories 225 198

225 198Current receivablesAccounts receivable 38,869 36,032Other receivables 9,598 16,270Prepaid expenses and accrued income 12,199 11,804

60,666 64,106

Short-term investments 89,798 39,882

Cash and bank balances 37,748 89,368

Total current assets 188,437 193,554

TOTAL ASSETS 223,993 226,076

PROFIT AND LOSS STATEMENT 2014-01-01 2013-01-01 SEK 1,000 2014-12-31 2013-12-31

Operating incomeNet sales 312,346 287,043Changes in work on contract -14,583 18,186Other operating income 4,191 2,345

301,594 307,574Operating expensesRaw materials, consumables and subcontractors -12,335 -12,865Other external expenses -90,767 -88,126Personnel expenses -188,197 -184,960Depreciation of fixed assets -10,460 -11,475Other operating expenses -65 0

Operating profit 130 10,148

Financial income and expenseInterest income and similar items 3,032 2,768Interest expense and similar items -864 -651

Profit after financial items 2,298 12,265

Tax on profit for the year -1,841 -3,402

PROFIT FOR THE YEAR 457 8,863

Attributable toParent company shareholders 417 8,808 Minority interests -40 -55

Turnover per field of activity

Industrial Research: 84.1 MSEK

Exploratory Research: 135.4 MSEK

Client Projects: 75.2 MSEK

Other: 7.3 MSEK

45%

25%

28%

2%

Income and Operating profit

Income, SEK m

Operating profit, SEK m

350 30

25

20

15

10

5

0

-5

-10

-15

-20

300

250

2011 2012 2013 2014

SEK

m

SEK

m

333307 308 302

200

150

100

50

0

The Group consists of the parent company, Innventia AB, with its subsidiaries, LignoBoost Demo AB in Sweden, PFI AS in Norway and Innventia UK Ltd. in Great Britain.The profit and loss statement and the balance sheet include all the companies, in which the parent company directly or indirectly has more than half of the number of votes per share, and companies in which the Group, in another way, has a controlling influence and a more significant share in the results of their operations, which includes all the companies mentioned above.

Financial statements

26 Innventia Group Annual Review 2014

SHAREHOLDERS’ EQUITY AND LIABILITIES SEK 1,000 2014-12-31 2013-12-31

SHAREHOLDERS’ EQUITYRestricted equityShare capital (110 shares) 110 110Other shareholders’ equity incl. profit of the year 119,048 119,412

Shareholders’ equity attributed to parent company shareholders 119,158 119,522

Minority interest 860 820

Total shareholders equity 120,018 120,342

ProvisionsProvisions for pensions and similar liabilities 15,856 14,769Deferred tax liability 0 330Other provisions 1,100 1,423

16,956 16,522Long-term liabilitiesThe 1951 Donation 578 577

578 577Current liabilitiesAdvance payment from customers 3,766 5,312Work on contract 21,421 266Accounts payable 17,670 11,727Tax liabilities 1,769 3,334Other short-term liabilities 10,767 30,370Accrued expenses and deferred income 31,048 37,626

86,441 88,635

TOTAL SHAREHOLDERS’ EQUITY & LIABILITIES 223,993 226,076

MEMORANDUMPledged assets 771 noneContingent liabilities 302 295

Shareholders of Innventia

Direct owners: BillerudKorsnäs, Holmen, Metsä Board, Stora Enso and Södra

RISE Research Institutes of Sweden AB

The STFI Association of Interested Parties

The Private Owners’ Association Packforsk

29%

10%

10%

51%

Shareholders’ equity, SEK m

Equity/assets ratio, %

112,3

119,2119,5

2011 2012 2013 2014

105,5

45% 46%

53% 53%

0 0

10

20

30

40

50

60

70

80

90

100

10

20

30

40

50

60

70

80

90

100

110

130

120

SEK

m %

Shareholders’ equity and Equity/assets ratio

Innventia – Boosting business with science

INNVENTIA ABBox 5604, SE-114 86 StockholmSwedenTel +46 (0)8 676 70 00Fax +46 (0)8 411 55 18info@innventia.comwww.innventia.com

PFI ASHøgskoleringen 6b, NO-7491 TrondheimNorwayTel +47 (0)73 60 50 65 Fax +47 (0)73 55 09 99firmapost@pfi.nowww.pfi.no

Innventia is a research institute that uses a scientific basis to help companies produce valuable products from forest-based or other bio-based raw materials, in an efficient and sustainable manner. One traditional product is paper, but we also develop other processes and products from renewable raw materials. Our expertise is always at the cutting edge, thanks to our own research activities and our collaboration with other institutes, universities and businesses. As an innovation partner, we can strengthen all or parts of our customers’ processes, from the initial idea all the way through to a commercial product. We call this approach Boosting business with science.