Slides
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Solid business performance in a volatile demand environment Financial results Q2 2025 The EcoFlowerBox by Stora Enso made from corrugated board
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2 1. Key highlights and strategic focus areas Hans Sohlström 2. Financial performance Niclas Rosenlew 3. Key takes - focus for 2025 Hans Sohlström Topics: Product: CarrEco Brown – unbleached uncoated board
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Key highlights and strategic focus areas Hans Sohlström, President and CEO 3 Products : FBB - Performa Light, Performa Nova, CUK – CKB ( Coated kraft back )
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4 Key highlights Q2 2.4 (5%) Sales, BEUR and sales growth 126 (-18%) Adjusted EBIT, MEUR 7% (-2% points) Operating working capital to sales ratio We continue to build a better Stora Enso - Agreement to divest 12.4% of our Swedish forest asset - Initiated a strategic review of the remaining Swedish forest assets - New organisation effective 1 July - Continue to drive efficiencies in operations, sourcing, commercial excellence, working capital, and fixed costs Solid business performance in a volatile demand environment - The ramp-up of the new consumer board line in Oulu, Finland had appr. 50 MEUR negative EBIT impact in Q2 - Consumer demand remains at relatively low levels impacted by geopolitical uncertainty - FTSE Russel rating increased to 4.6 (max 5.0), ranked the best company in the sector - Fitch confirmed investment grade rating BBB -, Stable Outlook
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Recent initiatives strengthening our strategic focus on renewable packaging ACQUISITION OF JUNNIKKALA Secure cost competitive wood supply SALE OF 12.4% OF SWEDISH FOREST Enhance financial flexibility through monetisation of assets while securing long-term wood supply STRATEGIC REVIEW OF SWEDISH FOREST ASSETS Assess options to unlock the full value of the assets, enhance focus on core businesses, and reduce complexity A NEW ORGANISATIONAL STRUCTURE A leaner organisational structure to sharpen focus, while enhancing operational efficiency and drive synergies Performance Profit Portfolio People 5
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Unlocking the full potential of both our industrial and forest assets Stora Enso Swedish Forest • Stora Enso is a global leading renewable packaging company with sustainability at the core of the business • Leading market positions, with a differentiated, customer centric offering, guided by innovation and sustainability • Leading asset base with cost competitive integrated sites, diversified material supply, and proven profit improvement capability • Tangible path to growth and margin expansion; disciplined asset allocation provides upside opportunities • Leading Swedish forest owner, optimally located in central Sweden, with proximity to strong sources of demand such as pulp and sawmills • Strong tailwinds for renewable materials will drive market growth in short and long-term • Leader in biodiversity enhancement through active and adaptive forest management • Consistent cash flow and tangible value growth • Significant additional value creation opportunities in wind, solar, carbon-credits and beyond 6
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7 Focus on accelerating synergies to support renewable packaging profitability and growth Fiber synergies Containerboard synergies Pulp supply Consumer board mills Containerboard mills Market pulp mills Sawmills, LVL, CLT Packaging Solutions plants Skoghall Fors Oulu Imatra Anjalankoski 1) Assuming Langerbrugge conversion Enocell Skutskär Varkaus Ostroleka Langer- brugge1) Heinola PS Benelux PS Germany PS Poland PS BalticsPS Swe PS Fin Veracel MdP • Oulu • Fors • Skoghall Enocell Beihai
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Financial performance Niclas Rosenlew, CFO 8 Products : FBB - Performa Light, Performa Nova
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Solid business performance in a volatile demand environment 9 • Sales increased by 125 MEUR or 5% • Higher deliveries • Structural changes had a positive impact as both the Junnikkala acquisition and the Oulu consumer board line ramp-up increased topline • Adj. EBIT decreased by 27 MEUR • Ongoing Oulu consumer board line ramp up impacted second quarter results negatively by approximately 50 MEUR • Variable costs were stable as higher wood and PfR costs were offset by lower energy, logistic and chemical costs Year-on-Year comparison
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10 Solid business performance while ramping up the new consumer board line Year-on-Year comparison
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11 Oulu consumer board line ramp-up impacting profitability and cash flow • Since 2023, the profitability has improved gradually • Cash flow from operations has benefitted from OWC reductions throughout 2024 and ongoing • The OWC reductions impacting cash flow have stabilised • As the heavy investment phase is ending, CAPEX starts decreasing
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12 Net debt to adjusted EBITDA and operating working capital development
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Overview of segment financial performance 13 • Sales increased slightly by 1.8% to 1,159 (1,138) MEUR • Higher prices for containerboard and a slight increase for consumer board • Adj. EBIT decreased by 24 MEUR • Ramp-up for Oulu had a negative impact on adjusted EBIT by approximately 50 MEUR • Sales increased by 7.1% to 272 (254) MEUR • Higher volumes and higher prices offset increased containerboard prices • Adj. EBIT increased by 4 MEUR • Higher sales and reduced depreciation following the previously announced impairments Year-on-Year comparison 45% Share of external sales 11% Share of external sales
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Overview of segment financial performance 14 • Sales decreased by 8.5% to 378 (413) MEUR • Lower sales prices and negative currency impacts • Adj. EBIT decreased by 42 MEUR • Lower sales prices, partly offset by lower costs • Wood costs remained high • Sales increased by 19.1% to 494 (414) MEUR • Higher sales prices and volumes for sawn wood • Adj. EBIT increased by 4 MEUR • Higher prices and volumes, partly offset by increased raw material and fixed costs • Sales increased by 20.8% to 833 (690) MEUR • Higher volumes and wood prices • Adj. EBIT increased by 12 MEUR • Strong operational performance in forest assets and wood supply • The forest assets' fair value was EUR 9.0 billion, equivalent to EUR 11.40 per share Year-on-Year comparison 12% Share of external sales 18% Share of external sales 13% Share of external sales
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Key takes - focus for 2025 Hans Sohlström, President and CEO 15 Product: EcoFreshBox made from virgin corrugated
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Building a stronger and more profitable Stora Enso - Continue the work across the whole company to improve profitability, cash flow, and cost competitiveness through a focus on sourcing, operational efficiency, commercial excellence, working capital, and fixed costs. - Complete the sale of 12.4% of Swedish forest assets. - Conduct a strategic review of the remaining Swedish forest assets, including the assessment of a potential separation and public listing of the forest assets. - Ramp up production and leverage the EUR 1 billion investment in the new packaging board line at the integrated mill in Oulu, Finland, to strengthen Stora Enso’s competitive position. Capital Markets Day on 25 November 2025 in London 16 Key takes - focus for 2025 The EcoFlowerBox by Stora Enso made from corrugated board
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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 profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development, acceptance of new products or services by the group’s targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the group’s patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the group’s products and the pricing pressures thereto, price fluctuations in raw materials, financial condition of the customers and the competitors of the group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the group’s principal geographic markets or fluctuations in exchange and interest rates. All statements are based on management’s best assumptions and beliefs in light of the information currently available to it and Stora Enso assumes no obligation to publicly update or revise any forward-looking statement except to the extent legally required. Disclaimer 17
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