Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Shareholder Meeting (2024)
23 slides from Stora Enso Oyj Class A's shareholder meeting presentation, 2024
Slide 1: CEO presentation
CEO presentation Hans Sohlström
Slide 2: Disclaimer
Disclaimer It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “for
Slide 3: We are the renewable materials company
We are the renewable materials company Renewability Circularity Our raw material is Our renewable products renewable, recyclable contribute to a circular and fossil-free bioeconomy Personnel Our purpose 20,000 Do good for people and the planet Presence Replace non-renewable materials with renewable
Slide 4: Group Leadership Team
Group Leadership Team President CFO and EVP People and EVP Strategy EVP Legal and CEO Deputy CEO Communication and and General Hans Seppo Katariina Sustainability Counsel Sohlström Parvi Kravi Tobias Micaela Bäärnman Thorström EVP Packaging EVP Packaging EVP EVP Wood EVP Forest Materials Solutions B
Slide 5: 1. Group strategy
1. Group strategy 2. Performance 2023 3. The way forward 5
Slide 6: We are the Renewable Materials Company
We are the Renewable Materials Company Climate Circularity Biodiversity Purpose: Financial targets: Do good for people and the planet. Growth per year > 5% Replace non-renewable materials ROCE excl. Forest > 13% with renewable products. Net debt to EBITDA <2 Net debt to equity < 60% Renewable Divide
Slide 7: Creating value in the circular bioeconomy
Creating value in the circular bioeconomy Our ambition is to offer 100% regenerative solutions* by 2050 which help reduce climate impact and support biodiversity restoration Efficient and sustainable production High energy self- sufficiency with access Sustainable to renewable energy Recycling to cr
Slide 8: Leading sustainable forest management across one of the world's largest private forest estates
Leading sustainable forest management across one of the world’s largest private forest estates ~36% self-sufficiency Forest value of €8.7 bn ~€11 per share Swedish forests 1,383,000 ha Veracel Brazil 116,000 ha Tornator in Finland, Estonia and Romania 310,000 ha Montes del Plata Uruguay 138,000 ha G
Slide 9: 2. Performance 2023
1. Group strategy 2. Performance 2023 3. The way forward 9
Slide 10: End use sales and market drivers for our operating environment
End use sales and market drivers for our operating environment Group sales by end use (FY/2023) Market drivers and price development 16 Private consumption 16 14 14 Industrial production* 12 Annual growth rate (%) 12 Annual growth rate (%) Construction Consumer 10 8 10 8 10% end uses 65% 6 4 6 4 Con
Slide 11: Challenging year in unprecedented market conditions
Challenging year in unprecedented market conditions Sales 11.7 9.4 MEUR Profitability % BEUR 2022 BEUR 2023 2 000 1 891 20 1 750 Operational ROCE excl. Forest 1 528 1 500 20.4% 1.0% 1 250 15 2022 2023 1 003 1 000 10 750 650 Forest value 500 5 342 8.3 8.7 250 BEUR 2022 BEUR 2023 0 0 Market cap: ~€9 b
Slide 12: Division overview (sales, opEBIT and opEBIT margin)
Division overview (sales, opEBIT and opEBIT margin) Sales Packaging Materials Packaging Solutions Biomaterials Wood Products Forest MEUR MEUR MEUR MEUR MEUR 6 000 5 496 6 000 6 000 6 000 6 000 5 000 4 508 4 557 5 000 5 000 5 000 5 000 4 000 3 255 3 115 4 000 4 000 4 000 4 000 3 000 3 000 3 000 3 000
Slide 13: Committed growth investments proceeded as planned
Committed growth investments proceeded as planned Returning to average capex range of €600 - 800 million after 2024 Average capex split for 2014–2024 1 200 Depending on investment decisions 1,125 1,000-1,100 989 1 000 781 729 778 800 600-800 687 666 640 656 574 600 400 200 0 2014 2015 2016 2017 2018
Slide 14: Focused on improving cash flow
Focused on improving cash flow Significant improvement in working capital reduction MEUR Cash flow development MEUR Net debt to operational EBITDA 2 100 1 991 4 1 873 3 500 1 900 1 752 3,5 1 700 3 000 1 500 1 386 3 1 365 1 344 2 500 1 300 1 162 2,5 1 101 1 100 954 2 000 2 900 811 680 1 500 700 1,5 5
Slide 15: Development of long-term targets
Development of long-term targets Financial performance 2022 2023 Growth YoY > 5% 17% -20% Net debt to operational EBITDA < 2.0x 0.7 3.2 Net debt to equity < 60% 15% 29% Operational ROCE excl. Forest > 13% 20% 1% 0.10* Dividend per share (EUR) To distribute 50% of EPS excluding fair valuation over th
Slide 16: Proposed dividend in challenging market conditions
Proposed dividend in challenging market conditions EUR Dividend 0,7 100% Target to distribute: 0,6 90% 50% of EPS 80% excluding fair 0,5 70% valuation over 0,10* 0,4 0,20** 60% the cycle 50% 0,3 40% Long term 0,2 30% average 55% 20% 0,1 10% 0 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Divi
Slide 17: 3. The way forward
1. Group strategy 2. Performance 2023 3. The way forward 17
Slide 18: Building more profitable and competitive Stora Enso
Building more profitable and competitive Stora Enso to generate greater shareholder value while also benefiting the environment Profit improvement from procurement, operational and commercial excellence Capital release from operating working capital and Beihai divestment Strategy and right people in
Slide 19: Increasing part of strategic growth areas
Increasing part of strategic growth areas Sales 2006 Sales 2023 Sales in ~2030 30%* 55%* 80%* Strategic growth areas Strategic growth areas Strategic growth areas Paper Foundation sales Foundation sales *Strategic growth areas include Renewable packaging, 19 Sustainable building solutions, and Bioma
Slide 20: Developing bio-based incremental growth opportunities
Developing bio-based incremental growth opportunities Biodegradable and recyclable Bio-based anode material to Replacing fossil solutions packaging foams to replace replace mined or fossil-based with safe, renewable binder fossil-based packaging foams materials in batteries solutions 20
Slide 21: Optimising our forest land assets for value creation
Optimising our forest land assets for value creation Developing and selling wind power projects Our recent agreement Our potential Our ambition with OX2 on a joint Other future 5–10 TWh wind power ~20 TWh development project potential annual production annual production of circa 1,000 MW is a Carbon
Slide 22: Focus on profit improvement, competitiveness and cash flow
Focus on profit improvement, competitiveness and cash flow Outlook • Expecting uncertain market conditions in 2024 with continued pressures on demand, prices and margins • Enhancing procurement, operational and commercial excellence, and capital release • Completed restructuring programme resulting
Slide 23: Thank you for your support and trust
Thank you for your support and trust 23