Slide 1: Managing wood production and biodiversity side by side
4 June 2024 Managing wood production and biodiversity side by side Per Lyrvall EVP, Forest division
Slide 2: Forest is our foundation for value creation
Forest is our foundation for value creation Forest division • Creates value with sustainable forest management, competitive wood supply and innovation • Manages Stora Enso’s forest assets in Sweden and the 41% share of Tornator • Sources wood in Finland, Sweden and the Baltics for Stora Enso’s Nordi
Slide 3: Forest Division – one of the largest private forest owners and wood supply organisations
Forest Division – one of the largest private forest owners and wood supply organisations in the world Sales Wood deliveries* EUR 2,490 million 32.4 million m3 Forest assets ownership • 1.4 million hectares in Sweden • 41% of Tornator Adjusted EBIT Employees • Total value EUR 8.7 billion Year 2023 (i
Slide 4: Forest division strategy – focus on wood supply, forest assets and sustainability
Forest division strategy – focus on wood supply, forest assets and sustainability Digitalisation Sustainability Wood Supply Foundation for Cost-efficient Backbone Stable & sustainable financial of Stora Enso’s Forest Assets sustainability wood supply performance financials OUR MISSION We create cust
Slide 5: Stora Enso wood procurement in 2023
Stora Enso wood procurement in 2023 ~36% self-sufficiency of wood supply from our own forest assets and long-term agreements Wood procurement by region Wood self-sufficiency by country in 2023 28.1 million m3 100 % 100% Finland, 37% 75 % Sweden & Norway, 23% 76% Central Europe, 16% 67% 50 % 65% Balt
Slide 6: Wood supply operations cover the entire management cycle in forests
Wood supply operations cover the entire management cycle in forests Purchase & service Planning Harvesting Logistics Mill Regeneration agreement 6
Slide 7: Silviculture is a nearly 100-year circular project in the Nordic forests
Silviculture is a nearly 100-year circular project in the Nordic forests 0–5 years Regeneration/ planting 70–90 years 5–10 years Regeneration/ Clearing of final felling seedling stand Forest life-cycle 10–20 years Tending of seedling stand 40–60 years 30–40 years Thinning First thinning 7
Slide 8: We use all parts of each harvested tree ensuring optimal use
We use all parts of each harvested tree ensuring optimal use Tree tops, branches Energy Renewable wood energy Small diameter wood Sustainable Pulpwood Pulp, board, harvesting paper and lignin Large diameter wood Sawlogs Wood products & building solutions 8
Slide 9: Climate change and biodiversity highlight the importance of sustainable forestry
Climate change and biodiversity 100% highlight the importance of of our wood sustainable forestry comes from sustainable sources • Operations based on economic, social, and environmental responsibility • Healthy, growing forests bind CO2, preserving biodiversity 99% Biodiversity and climate targets
Slide 10: Forest assets close to our production provide flexibility and lower carbon footprint
Forest assets close to our production provide flexibility and lower carbon footprint • Enables further control of our wood supply • Establishes a resilience to changes in the market environment • Secures availability and lowers wood costs for the Group • Provides tactical flexibility in wood supply
Slide 11: Creating sustainable long-term values from our forest land
Creating sustainable long-term values from our forest land Increased yield and asset Increasing forest yield and value other values with precise and adapted forestry Precision Forestry Tree breeding Return from wood sales Developing new business Return from land opportunities and development continu
Slide 12: Appreciating forest asset value supports a strong balance sheet
Appreciating forest asset value supports a strong balance sheet Group forest assets Sweden and Finland Forest property market transaction- based price development in Sweden • Market transactions from our forest land • Volume weighted 3-year average transaction price • Standing stock and price data o
Slide 13: Sustainable forest management benefits both business and nature
Sustainable forest management benefits both business and nature More Secured, Positive Improved resilient continuous climate biodiversity forests wood supply impact 13
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