Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Q1 2025 Earnings Presentation
43 slides from Stora Enso Oyj Class A's earnings presentation, Apr 25, 2025
Slide 1: Financial results Q1 2025: Consistent progress in improving performance
Financial results Q1 2025 Consistent progress in improving performance
Slide 2: Key highlights
Key highlights 9% 175 (+18%) 7% (-3% points) Sales growth Adjusted EBIT, MEUR Operating working capital to sales ratio Achieved a robust adj. EBIT of 175 million euro, an 18% increase YoY and an EBIT margin of 7.4% The 4th consecutive quarter with a YoY result improvement • Attained positive adj. EB
Slide 3: We are the renewable materials company
We are The renewable materials company Purpose: High customer value with efficient operations Financial targets: • Do good for people and the planet maximising shareholder value • Growth per year >5% • Replace non-renewable materials • Net debt to adj. EBITDA <2 with renewable products • Net debt to
Slide 4: Leveraging on broad product range and strong customer offering
Leveraging on broad product range and strong customer offering Stora Enso’s leading position in renewable packaging rests on four pillars Competitive Commitment to Customer-centric Sustainability manufacturing at scale innovation approach leadership Cost competitiveness Strong market positions Broad
Slide 5: New leaner organisational structure focused on renewable packaging
Stora Enso plans to implement a new leaner organisational structure reflecting stronger focus on renewable packaging • Increase customer focus • Drive operational efficiency • Increase integration • Reduce complexity • Enhance performance culture All changes are subject to co-determination negotiati
Slide 6: Transition from divisions to lean business areas with P&L responsibility
Transition from 5 divisions to 7 lean business areas with P&L responsibility Business Areas Group Functions Group Food Service & Packaging Cartonboard Containerboard Biomaterials Wood Products Forest Liquid Board Solutions People & Strategy & Finance Legal Communication Sustainability All changes ar
Slide 7: Successful start of the new consumer board line
Successful start of the new consumer board line • Successful start with excellent product quality at the state-of-the-art integrated mega site in Oulu, Finland • One of the most modern and cost-competitive packaging board mills in Europe • The nearby Junnikkala sawmill will enhance wood supply and i
Slide 8: U.S. import tariffs – risks and opportunities
U.S. import tariffs – risks and opportunities Tariff status: U.S. imports and exports of board and softwood pulp in 2024 • Limited impact at current tariff rates 2.1 1.3 • Limited sales to the U.S., less than 3% of total sales in 2024 Cartonboard1) (million tonnes) 1.7 0.8 • Main risk is the overall
Slide 9: Consistent progress in improving performance
Consistent progress in improving performance Year-on-Year comparison MEUR Sales and adj. EBIT% % Adj. EBIT and ROCE % % MEUR 16 16 3,000 300 14 14 2,721 2,750 250 234 12 12 2,500 10 200 10 2,374 2,362 175 175 2,301 2,322 149 153 2,261 8 8 2,250 2,174 2,164 150 121 2,127 6 6 2,000 100 4 51 4 37 1,750
Slide 10: Good start of the year despite continued margin pressure from wood fiber costs
Good start of the year despite continued margin pressure from wood fiber costs Year-on-Year comparison 10
Slide 11: Q1 2025 still impacted by high capital expenditure
First quarter 2025 still impacted by high capital expenditure due to the investment in new board line MEUR Q125 Other Change in Cash flow Cash spent Cash flow Adjusted adjustments working from on fixed and after EBITDA capital operations biological investing assets activities 11
Slide 12: Net debt to adjusted EBITDA and operating working capital development
Net debt to adjusted EBITDA and operating working capital development 12
Slide 13: Overview of divisional financial performance
Overview of divisional financial performance Year-on-Year comparison Share of Share of 46% external 10% external sales sales • Sales increased by 5.4% to 1,159 (1,100) MEUR driven by • Sales increased by 7.0% to 239 (224) MEUR driven by higher prices for both consumer board and increased volumes con
Slide 14: Overview of divisional financial performance
Overview of divisional financial performance Year-on-Year comparison Share of Share of Share of 14% external 16% external 14% external sales sales sales • Sales increased by 4.7% to 392 (374) MEUR • Sales increased by 19.7% to 418 (349) MEUR • Sales increased by 26.8% to 836 (659) MEUR driven by hig
Slide 15: Key takes - focus for 2025
Key takes - focus for 2025 Building a stronger and more profitable Stora Enso - The 4th consecutive quarter with a YoY result improvement - Achieved a 9% increase in sales and an 18% rise in adjusted EBIT - Successful production start of the new consumer board line at the Oulu mill - U.S. import tar
Slide 16: 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
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Slide 18: Development of long-term Group financial targets
Development of long-term Group financial targets Group long-term financial targets Q1/24 Q1/25 2024 Dividend (annual) in EUR /share To distribute 50% of EPS excluding fair valuation over N/A N/A 0.25* the cycle Growth YoY > 5% -20% 9% -4% Net debt to adjusted EBITDA < 2.0x 4.0 3.2 3.0 Net debt to eq
Slide 19: Development of long-term targets
Development of long-term targets Financial performance Q1/2024 Q1/2025 Growth YoY > 5% -20% 9% Net debt to adjusted EBITDA < 2.0x 4.0 3.2 Net debt to equity < 60% 33% 38% Adjusted ROCE excl. Forest > 13% 0% 4% Dividend per share (EUR ) To distribute 50% of EPS excluding 0.20 0.25* fair valuation ove
Slide 20: Surpassing 2030 target of 50% reduction in Scope 1 and 2 CO2 emissions
Surpassing 2030 target of 50% reduction in Scope 1 and 2 CO2 emissions Climate change Circularity Biodiversity -50% 100% Net positive Targets Reduction in absolute Recyclable products Impact on biodiversity emissions by 2030 (Scope 1,2,3) by 2030 by 2050 Committed to reaching -57% net-zero CO2 Scope
Slide 21: Improved results due to higher sales volumes and lower fixed costs
Improved results due to higher sales volumes and lower fixed costs Quarter-on-Quarter comparison 21
Slide 22: Finalising the heavy investment phase
Finalising the heavy investment phase Capital expenditure development MEUR Strategic capex • High strategic capex phase during 2023 and 2024, due to the 1.1 BEUR consumer board investment at the Oulu mill in Finland, is coming to an end • The remaining Oulu-related strategic capex in 2025 is approxi
Slide 23: Steadily increasing forest value
Steadily increasing forest value Group forest assets • Fair value** of 9.3 BEUR equivalent to EUR BEUR 11.74 per share 10.0 9.0 8.7 8.7 8.8 8.9 9.3 • Forest asset value increased due to the 8.3 8.6 impact of changes in foreign exchange 8.2 8.1 8.3 8.1 8.3 8.0 8.0 8.0 2.4 rates, mainly stronger SEK 7
Slide 24: Stora Enso – Group sales by end use
Stora Enso – Group sales by end use Group sales by end use (FY/2024)* Construction 12% Consumer end uses (packaging) 65% Industrial end uses 23% Food & beverages 38% Other industrial Pharma & 5% Personalcare 10% E-commerce 3% Industrial packaging 18% Other consumer 14% *Excludes forest division 24
Slide 25: Strategic growth areas represented 55% of Group sales in Q1/2025
Strategic growth areas represented 55% of Group sales in Q1/2025 Sales FY/2006 Sales Q1/2025 Sales in ~FY/2030 30%* 55%* 80%* Strategic growth areas Strategic growth areas Strategic growth areas Paper Foundation sales Foundation sales Calculations are based on external sales *Strategic growth areas
Slide 26: Overview per division, LTM
Overview per division, LTM* Sales, MEUR Packaging Materials Packaging Solutions Biomaterials Wood Products Forest Adjusted EBIT, MEUR and Adjusted EBIT Margin, % Packaging Materials Packaging Solutions Biomaterials Wood Products Forest Adjusted EBIT Adjusted EBIT margin *LTM= last twelve months 26
Slide 27: Planned maintenance shutdowns impacting quarterly results
Planned maintenance shutdowns impacting quarterly results Group total planned maintenance Planned maintenance shutdowns in 2025 impact on adjusted EBIT Packaging Materials Biomaterials MEUR 200 Q1: - Q1: - 180 Q2: Beihai, Langerbrugge Q2: Skutskär 180 Q3: Oulu, Heinola, Varkaus Q3: Enocell 160 150 1
Slide 28: Net financial items
Net financial items MEUR Change Change Q1/25 Q1/24 Q4/24 Q1/25-Q4/24 Q1/25-Q4/24 Net interest expense -31 -31 0 -32 1 Average interest rate* 3.7% 4.2% 4.0% Foreign exchange gains and losses 4 -7 11 -12 17 Other financial items -13 -9 -3 -29 16 Total net financial items -39 -47 8 -74 35 *Quarterly gr
Slide 29: Net FX effect per division
Net FX effect per division MEUR Packaging Materials Packaging Solutions Biomaterials Wood Products Forest -10 -5 0 5 10 15 20 Q1/2025 y-o-y Q4/2024 y-o-y Q3/2024 y-o-y Q2/2024 y-o-y 29
Slide 30: Maintaining a strong liquidity position
Maintaining a strong liquidity position MEUR • Liquidity at the end of March 2025: 3,500 Liquidity position at the end of March 2025 − 1.7 BEUR cash and cash equivalents 100 100 3,000 − 700 MEUR committed revolving credit facility fully 200 435 700 100 undrawn 200 435 2,500 400 − 100 MEUR committed
Slide 31: Maturity profile 2025
Maturity profile 2025 March 2025 MEUR 1,600 21% 1,500 1,400 1,300 26% 11% Bonds 1,200 Loans from Financial Institutions 1,100 Joint Venture Financing 1,000 Commercial Papers 900 14% Loans from Wood Suppliers 800 Other Loans / Liabilities 700 Committed Credit Facility 600 10% 10% 500 400 6% 300 200 1
Slide 32: Stora Enso's wood and energy self-sufficiency
Stora Enso’s wood and energy self-sufficiency Group energy self-sufficiency excl. JVs 2025e Group wood self-sufficiency by country 2024 100% 86% 76% 75% 73% 81% 65% 23% Total energy Fuels Electricity Finland Sweden Uruguay Brazil China 32
Slide 33: Group energy balance in detail
Group energy balance in detail Group energy balance estimate excl. JVs 2025 Impact on non-hedged volume on MEUR operating profit from a 10% p.a. TWh/a change for the next 12 months in: 50 Electricity market price ~0,8 40 Self-sufficiency 30 73% Fossil fuel price ~5,2 20 Self-sufficiency 81% 10 Energ
Slide 34: Biomass as primary fuel source
Biomass as primary fuel source Group fuel consumption Q1/2025 2% 1% 1% 3% 3% Biomass Coal Gas Fuel Oil Other Fossil Peat 89% Stora Enso Group’s total Q1/2025 fuel consumption was 7.7 TWh 34
Slide 35: Continued weak construction and housing market
Continued weak construction and housing market Photo: WO2 ©Patrick Raffin Arboretum, Nanterre, France 35
Slide 36: Pulpwood and sawlog price development in Finland
Pulpwood and sawlog price development in Finland Pulpwood, Pine Sawlogs, Pine 90 80 70 60 50 EUR /m3 40 30 20 10 0 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319 Q120 Q320 Q121 Q321 Q122 Q322 Q123 Q323 Q124 Q324 Source: Luonnonvarakeskus 36
Slide 37: Forest property market transaction-based price development
Forest property market transaction-based price development Index Sweden SEK/m3fo 1,000 900 800 700 600 500 400 300 200 100 0 1995 2000 2005 2010 2015 2020 2024 Southern Sweden Central Sweden Northern Sweden Sweden Source: Ludvig & Co 23 January 2025 report, based on nominal prices 37
Slide 38: Global pulp inventories stabilised while pulp prices declined
Global pulp inventories stabilised while pulp prices declined Inventory levels Price development Inventories in days USD/ tonne Europe NBSK/USD, Delivered 90 Bleached softwood kraft 85 1,800 Europe BHKP/USD, Delivered pulp 80 China BHKP/USD NET, Delivered 1,600 75 China NBSK/USD NET, Delivered 70 1,
Slide 39: Cost-driven price increases in containerboard and folding box board
Cost-driven price increases in both containerboard and folding box board Containerboard price development Folding Box Board price development EUR EUR /tonnes /tonnes 1,600 1,400 1,500 1,200 EUR (average) per ton EUR (average) per ton 1,400 1,000 1,300 800 1,200 600 1,100 400 1,000 200 900 0 800 PIX
Slide 40: Paper for recycling price development
Paper for recycling price development 320 PIX OCC Europe* PIX ONP/OMG Europe** 280 240 200 EUR /tonne 160 120 80 40 0 Q216 Q416 Q217 Q417 Q218 Q418 Q219 Q419 Q220 Q420 Q221 Q421 Q222 Q422 Q223 Q423 Q224 Q424 Source: Fastmarkets FOEX *OCC: Old corrugated containers **ONP: Old newspapers - OMG: Old ma
Slide 41: Indicators driving the demand for packaging
Indicators driving the demand for packaging Private consumption Industrial production Annual growth rate (%) Annual growth rate (%) 12 10 11 8 10 6 9 8 4 7 2 6 0 5 4 -2 3 -4 2 -6 1 0 -8 2021 2022 2023 2024 2025F 2021 2022 2023 2024 2025F EU UK US China Source: Consensus, The World Bank “China Econom
Slide 42: Indicators driving the demand for packaging
Indicators driving the demand for packaging GDP Inflation 10 Annual growth rate (%) 10 Annual growth rate (%) 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2021 2022 2023 2024 2025F 2021 2022 2023 2024 2025F EU UK US China Source: Consensus 42
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