Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Shareholder Meeting (March 2022)
24 slides from Stora Enso Oyj Class A's shareholder meeting presentation, Mar 15, 2022
Slide 1: Advancing our renewable materials future
Advancing our renewable materials future Annica Bresky, President & CEO 15 March 2022
Slide 2: Today's agenda
Today’s agenda 01 02 Purpose and Sustainability performance and our growth 03 04 Innovation Realising our and collaboration renewable future
Slide 3: Purpose and performance
Purpose and performance 3 15 March 2022
Slide 4: Our purpose
Our purpose Replace Do good non-renewable for people and materials with the planet renewable products 4 15 March 2022
Slide 5: Outstanding performance in 2021
Stora Enso in brief Outstanding performance in 2021 Sales External sales 2021 Operational EBIT 2021 8.6 10.2 61% Packaging Materials Packaging Solutions 56% Packaging Materials Packaging Solutions BEUR 2020 BEUR 2021 Wood Products Wood Products Biomaterials Biomaterials Operational EBIT Paper Forest
Slide 6: We are well on our way to meeting long-term targets
We are well on our way to meeting long-term targets… Key long-term targets 2019 2020 2021 Growth (excl. Paper) > 5% -3.0% -8.7% 28.7% Net debt to operational EBITDA < 2.0x 2.0 2.3 1.1 Net debt to equity < 60% 43% 33% 22% Operational ROCE excl. Forest > 13% 12.8% 7.0% 17.8% To distribute 50% of EPS e
Slide 7: Delivering on our strategic roadmap to accelerate and focus growth
…and are delivering on our strategic roadmap to accelerate and focus growth Driving operational excellence Reducing exposure to Paper Investing in our growth businesses and cost savings New decentralised operating model ~30% ~14% +500 MEUR +800 MEUR of sales of sales Sales (completed Sales (feasib
Slide 8: Sustainability and our growth
Sustainability and our growth 8 15 March 2022
Slide 9: Lifting business performance by aligning ESG targets with remuneration
Lifting business performance by aligning ESG targets with remuneration ESG targets 10% 10% Total shareholder return (TSR) 40% Earnings per share (EPS) CO2 emission reduction Diversity and inclusion 40% The purpose of the LTIP is to incentivise and align management with shareholder interests and the
Slide 10: Sustainability is driving our growth strategy
Sustainability is driving our growth strategy Renewable biomaterials Renewable packaging Renewable building solutions innovations >20% ~20% >35% EBIT margin EBIT margin, 3x sales and margin in novel markets significant growth potential >10% market growth strong growth potential 10 15 March 2022
Slide 11: Innovation and collaboration
Innovation and collaboration 11 15 March 2022
Slide 12: Building stock growth and wood construction opportunity
2 billion m2 50 million tonnes Only ~2% The expected annual growth Decrease of CO2 if 10% of new Of European multi-storey of the global building stock buildings were built with wood buildings are made from wood, a great opportunity for growth This saving is equivalent to removing 12.5 million petrol
Slide 13: Creating renewable building solutions – low carbon building concepts
Residential multi-storey Offices Creating renewable building solutions – low carbon building concepts driving long-term growth • The construction industry represents 40% of global CO2 emissions, there is a need to shift to renewable materials • Construction materials represent 11% of global CO2 emis
Slide 14: Partnering to expand reach and development of new products and sustainable solutions
Partnering to expand reach and development of new products and sustainable solutions Building Solutions Accelerating the use of environmentally friendly construction products globally PureFiber™ Removing plastic waste by replacing single-use plastics with formed fiber Circular Solutions Tripling the
Slide 15: Innovating a future powered by Lignode
Innovating a future powered by Lignode® • Increasing demand of anode battery material driven by electrification of vehicles, consumer electronics and large-scale energy storage systems • Strategic material with no current local supply in Europe • The carbon market for batteries is growing by >30% an
Slide 16: Strong long-term demand for high-quality, low carbon packaging supports our growth
Investing in renewable packaging Strong long-term demand for • Feasibility study to explore expansion in renewable packaging board high-quality, low carbon • Target customer segments: frozen and chilled food, packaging supports our growth beverages, pharma and cosmetics strategy and leading position
Slide 17: Realising our renewable future
Realising our renewable future 17 15 March 2022
Slide 18: Annual outlook and guidance
Annual outlook and guidance Our outlook and guidance remain unchanged for the time being despite increased geopolitical concerns caused by the Russian invasion of Ukraine. Outlook • The macroeconomic environment and the pandemic are persisting uncertainties. Demand for Stora Enso’s products across a
Slide 19: Record high results driven by strong demand and strategic progress
Record high results driven by strong demand and strategic progress Record high profitability and balance sheet Forest fair valuation reached 8 BEUR All-time high dividend of 0.55 EUR per share Well positioned to capture future growth storaenso.com/annualreport 19 15 March 2022
Slide 20: We make a positive climate impact every year
We make a positive climate impact every year Our value chain emissions Our forests remove carbon Our products store carbon Our products substitute fossil-based products, saving 10.2 −1.5 −2.5 −17.2 million tonnes of CO2 million tonnes of CO2 million tonnes of CO2 million tonnes of CO2 20 15 March 20
Slide 21: Thank you for your time and trust
Thank you for your time and trust 21 15 March 2022
Slide 22: Disclaimer
Disclaimer It should be noted that Stora Enso and its business are exposed to various risks and uncertainties and certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profi
Slide 23: Explanations
Explanations Slide 21 Negative value indicates a net removal from atmosphere. Calculated by the Swedish University of Agricultural Sciences (SLU) based on Stora Enso’s forest and production figures: Climate effects of a forestry company – including biogenic carbon fluxes and substitution effects (20
Slide 24: Stora Enso – The renewable materials company
al storaenso QD OO & & THE RENEWABLE MATERIALS COMPANY