Slide 1: President & CEO's report
President & CEO’s report Annica Bresky
Slide 2: From a fossil world to a renewable future
From a fossil world to a renewable future Carbon storage Renewable materials Recyclability Biodegradability Carbon emissions Fossil materials Finite resources Waste accumulation Stora Enso Annual General Meeting 2020
Slide 3: Everything made from fossil-based materials can be made from a tree
Everything that’s made from fossil-based materials today can be made from a tree tomorrow.
Slide 4: Stora Enso's progress in 2019
Stora Enso’s progress in 2019 A leader in the Dividend proposal Sales 2019 bioeconomy EUR 0.15* EUR 10.1 billion per share Strong cash flow *additional max EUR 0.35 to be decided later from operations 45% up Combatting global warming ROCE 9.8% -25% Operational EBIT lower CO2e than EUR 953 million in
Slide 5: Better than expected quarter, supported by Packaging Materials and Forest
Better than expected quarter, supported by Packaging Materials and Forest Q1 2020 year-on-year • Sales decreased by 16% to 2 207 (2 635) MEUR • Operational EBIT decreased to 180 (335) MEUR • The profit protection programme savings target has been increased to 350 MEUR (275 MEUR) by end of 2021 • Cas
Slide 6: Fighting Covid-19 by strengthening our resilience
Fighting Covid-19 by strengthening our resilience • Health and safety of our employees is a key priority • Early proactive measures − Minimised impact on running our operations − Secured our ability to serve our customers − Active management of cash, cost and working capital − CAPEX forecast reduced
Slide 7: Dividend
Dividend • New dividend proposal EUR 0.15 per share • The Board of Directors (BOD) proposes to 0.35** the AGM that the BOD be authorised to decide, at its discretion, on a dividend payment of a maximum of up to EUR 0.35 per share, to be distributed in one or several instalments at a later stage when
Slide 8: Steps in Stora Enso's transformation in 2019
Steps in Stora Enso’s transformation in 2019 Acquisition of Enocell pulp mill The new CLT line Oulu paper mill increased dissolving pulp Swedish forests at Gruvön Mill to be converted to production, replacing cotton from Bergvik Skog and fossil-based materials, started up packaging materials was com
Slide 9: Sales over EUR 10 billion and very strong cash flow
Sales over EUR 10 billion and very strong cash flow Full year results 2015–2019 EUR million 2015 2016 2017 2018 2019 Q1/20 Sales 10 040 9 802 10 045 10 486 10 055 2 207 Operational EBIT 915 884 1 004 1 325 953 180 Operational EBIT margin 9.1% 9.0% 10.0% 12.6% 9.5% 8.1% Operational ROCE 10.6% 10.2% 1
Slide 10: Ambitious and reachable strategic financial targets
Ambitious and reachable strategic financial targets Group targets 2015 2016 2017 2018 2019 Status Dividend To distribute 50% of EPS over the cycle EUR 0.33 EUR 0.37 EUR 0.41 EUR 0.50 EUR 0.15* Growth** To grow faster than the relevant market 4.6% 3.1% 8.5% 5.9%*** -3.0% (YoY) (YoY) (YoY) (YoY) (YoY)
Slide 11: Our renewable products are circular by nature
Our renewable products are circular by nature Renewable wood is harvested from Renewable products store sustainably managed forests. We turn wooden fibers into carbon even through recycling. renewable alternatives to fossil- based products. Fibers can be recycled at least 5–7 times. Growing trees Ap
Slide 12: We continue building on our strengths and making choices in our innovation portfolio
We continue building on our strengths and making choices in our innovation portfolio Our portfolio gives us Customer centricity and Innovations for growth pole position to make choices ecosystem of partners support offer climate positive alternatives for future growth growth and innovation for fossi
Slide 13: The new divisional structure strengthens our strategy execution
The new divisional structure strengthens our strategy execution Growth Cash Packaging Materials Packaging Solutions Biomaterials Paper Consumer board and Corrugated packaging No changes No changes containerboard business together with recently created formed fiber unit Wood Products Forest No change
Slide 14: Accelerating renewable growth with new products and services
Accelerating renewable growth with new products and services Lignin batteries Next generation Future bio-based liquid and food chemicals packaging R&D expenditure in 2019 EUR 141 million High-quality Bio barriers containerboards In 2019 7% of our sales came from new products Value added and services
Slide 15: Examples of new products already in commercial use
Examples of new products already in commercial use Trayforma Biodegradable straw Paperboard for trays with Sulapac for food packaging To combat the global 64% lower carbon footprint problem of plastic waste than plastic trays Cupforma Natura Solo™ DuraSense Renewable paperboard Biocomposites for pap
Slide 16: Transformation to growth businesses with investments
Transformation to growth businesses with investments Ostrołęka, 2013 Montes Del Beihai, 2016 Gruvön, 2019 New container- Plata, 2014 New consumer New CLT board mill in New pulp mill board mill production unit Poland in Uruguay in China in Sweden Varkaus, 2015 Skutskär, 2018 Enocell, 2019 Oulu, 2020
Slide 17: The transformation will show in the company structure
The transformation will show in the company structure 38% 22% from cash from cash business business Net sales split Net sales split after Oulu Mill in 2014 conversion* 62% 78% from growth from growth businesses businesses *Estimated net sales after fully ramped up production in Oulu Mill Stora Enso
Slide 18: We are one of the biggest private forest owners in the world
We are one of the biggest private forest owners in the world Total biological asset value in balance sheet EUR ~4.4 billion Swedish forests 1 408 000 ha of forest land Tornator Veracel, Brazil 255 000 ha in Finland, 112 000 ha of forest land 27 000 ha in Estonia, and 5 000 ha in Romania Montes del P
Slide 19: The value of our forests
The value of our forests Balance sheet value including land Value based on market transactions 4.9 7.4* EUR billion EUR billion *based on LRF Konsult, Real Estate Register in Finland and Stora Enso
Slide 20: Taking the lead in combatting global warming
Taking the lead in combatting global warming To do our share in achieving the goals of the Paris agreement, we have set ambitious science-based targets to reduce our greenhouse gas (GHG) emissions. Our goal is to reduce Our climate work has been GHG emissions from top-ranked by the CDP and operation
Slide 21: Meaningful contributor to societies
Meaningful contributor to societies Close to EUR 1.3 billion taxes paid Stora Enso as a taxpayer EUR million in 2019 Finland Sweden Germany UK Poland China Austria Belgium Russia Brazil Other Total Primary activity Production Production Production Sales Production Production Production Production Pr
Slide 22: Voluntary community investments
Voluntary community investments We depend on resilient, thriving local communities We strive to ensure that the Examples: community is the main beneficiary. Total voluntary community investment in 2019 was EUR 2.7 million Europe: Planting Brazil: Veracel China: Supporting We supported trees and educ
Slide 23: Substituting materials from finite resources is our key competitive advantage
Substituting materials from finite resources is our key competitive advantage Our total climate benefit: Our products substitute 12 fossil-based products, saving Mt CO2 20 Mt CO2 Resource efficient value chain, Our forests are carbon emissions: neutral and absorb 11 Mt CO2 3 Mt CO2 Stora Enso Annual
Slide 24: Substituting finite materials in ice cream packaging
Substituting finite materials in ice cream packaging 95% of renewable material and better insulation properties than the old package Corrugated board for bulk packaging, WorldStar 2020 designed by and ScanStar Stora Enso closely 2019 awards for replacing plastic and metal packages Vanhan Porvoon Jää
Slide 25: We are ranked high for our sustainability work
We are ranked high for our sustainability work Euronext Vigeo Transition Pathway Initiative (TPI) WBCSD Stora Enso is listed in the Euronext Vigeo Stora Enso is top-ranked in greenhouse Stora Enso’s Sustainability Report 2018 was Europe, and Eurozone 120 indices as one gas management and performance
Slide 26: We continue our transformation into a sustainable profitable growth company
We continue our transformation into a sustainable profitable growth company A leader in the Sales 2019 Acquisition of Swedish forests bioeconomy EUR 10.1 billion from Bergvik Skog The new CLT line at Gruvön Mill started up Enocell pulp mill Strong cash flow increased from operations dissolving pulp
Slide 27: When you want to know more
When you want to know more Read our Annual Report storaenso.com/annualreport Stora Enso Annual General Meeting 2020