Stora Enso Oyj Class A · OMXHEX:STEAV

Stora Enso Oyj Class A — Investor Day (September 2019)

15 slides from Stora Enso Oyj Class A's investor day presentation, Sep 19, 2019

  1. Slide 1: Taking the lead in the bioeconomy

    Taking the lead in the bioeconomy CEO Karl-Henrik Sundström

  2. Slide 2: We are leading the way in the growing bioeconomy

    We are leading the way in the growing bioeconomy BIO DEGRATION & LESS WASTE WASTE ACCUMULATION UNSUSTAINABLE CONSUMPTION REDUCED ABUNDANT To a bioeconomy future RESOURCES CLIMATE EFFECTS CARBON EMISSIONS FINITE RESOURCES RENEWABLE MATERIALS From a fossil world 2 19 September 2019 Stora Enso Forest a

  3. Slide 3: Our business is a net contributor to prevent global warming

    Our business is a net contributor to prevent global warming 13 Mt CO2 = 325 MEUR per year Climate Benefit Substitution is our key competitive advantage Substitution of fossil based 2018 Mt CO2 products Forests + 3** Value Chain - 11 Resource efficient value chain Substitution + 21 Total climate bene

  4. Slide 4: 25% of plastics in packaging can be replaced today…

    25% of plastics in packaging can be replaced today… Plastics packaging substitution potential Mt plastic packaging, net potential Source: Material Economics 2018 4 19 September 2019 Stora Enso Forest and Wood Products Day

  5. Slide 5: … and EU Single Use Plastic Directive is a huge opportunity

    … and EU Single Use Plastic Directive is a huge opportunity Innovation to focus on bio-based (natural) polymers Impacted markets of relevance to Stora Enso Food Service Board Sales scenario*, as an example MEUR 400 350 New business gained from 300 other plastics 250 New business gained from 200 expa

  6. Slide 6: Accelerating the replacement of fossil-based materials

    Accelerating the replacement of fossil-based materials • Investing 10 MEUR to build a pilot facility for producing bio-based carbon materials based on lignin • Wood-based carbon utilised as a crucial component in batteries • Applications: consumer electronics, the automotive industry and large- scal

  7. Slide 7: Oulu paper mill is converting to packaging board

    Oulu paper mill is converting to packaging board Reducing our paper capacity by 20% • 450 000 t/a high-quality virgin-fibre-based kraftliner Kraftliner global (mt) • 530 000 t/a unbleached softwood pulp 40 Global CAGR 2% 35 • Expected to meet Packaging Solutions division’s 30 operational target of 2

  8. Slide 8: Demand for all pulp grades is growing by 2%

    Demand for all pulp grades is growing by 2% Textiles, nonwovens Hygiene Pulp (hardwood & softwood) demand 107 Mt market, growing 3%/y 590 billions of converted unit, growing 3.5%/y grows 2% CAGR by 2023 6.8 Mt market pulp (dissolving) 6.2 Mt market pulp (fluff) 2018 2023 Carton board Paper 59 Demand

  9. Slide 9: Our portfolio is further strengthened with integrated forest assets

    Our portfolio is further strengthened with integrated forest assets Sales 2018 Market growth Position EUR and % of group’s sales 2016–2030 for virgin board: Consumer Board + 2.6 BEUR 25% Europe 1.8%, North America 1.2%, Latin America 3.3%, China 4.3%, Rest of Asia 3.4%, Africa 2.5% #1 in LPB, FSB an

  10. Slide 10: Forestry management is a core part of our sustainable business…

    Forestry management is a core part of our sustainable business… • Increased harvesting by 10–15% in our Swedish forest and +10% additional yield initiatives from innovations • Strengthening our competitiveness and self-sufficiency • Fair value of biological assets 3.6 BEUR − 2.6 BEUR in Sweden, 1 38

  11. Slide 11: …with total CAGR potential of 6–8% per year

    …with total CAGR potential of 6–8% per year Sales in Q2 2019 CAGR potential 2019–2024 (excluding paper) Consumer Board 2–4 %/a Packaging Solutions 7–8 %/a Biomaterials 3–5 %/a Wood Products 6–8 %/a Consumer Board Packaging Solutions Biomaterials Wood Products Paper Other TOTAL (excl. Paper) 6–8 %/a

  12. Slide 12: Our formula for success continues to deliver results

    Our formula for success continues to deliver results Sustainable profitable growth 6–8%* Strong cash flow generation Capex ~3.4 BEUR** Dividend ~50% of EPS Net debt to operational EBITDA <2.0x Debt to equity <60% * Excluding Paper ** Next five years 12 19 September 2019 Stora Enso Forest and Wood Pr

  13. Slide 13: Control of forest assets is a competitive advantage in the bioeconomy

    Control of forest assets is a competitive advantage in the bioeconomy

  14. Slide 14: 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

  15. Slide 15: THE RENEWABLE MATERIALS COMPANY

    THE RENEWABLE MATERIALS COMPANY

Stora Enso — Investor Day (September 2019) on 6ix