STORA ENSO OYJ INVESTOR NEWS
"We have renewed our strategy and long-term financial targets, shaping our business for accelerated growth and value. In line with this, we continue to create value in the bioeconomy with our renewable products, solving global sustainability challenges. We focus on meeting consumer demand for eco-friendly and circular solutions and we concentrate our efforts in innovation," says President and CEO
· Packaging Materials and Packaging Solutions, driven by high demand for plastic free and eco-friendly circular packaging. We hold leading market positions and see attractive investment options.
·
· Biomaterials innovation, where our agenda is focused on lignin, and targets strong growth in new applications and markets.
At the foundation for value creation, and supporting our growth areas:
· Our substantial forest assets, securing a renewable, cost-competitive fiber base.
· Our sawmills in the Wood Products division, providing fiber to our pulp mills and serving as a base for growth in
· Our pulp mills, supporting our board and paper manufacturing and providing strong cash flow, with highly competitive eucalyptus pulp production facilities in
Paper will continue to be run in order to maximise cash flow in the declining market.
"To sum up, we focus on leading positions and accelerated growth in packaging, building solutions and our biomaterials innovation programme. Our innovation initiatives will be concentrated in the areas of new sustainable packaging materials, sustainable barriers and our biochemical platform in lignin. Our forest, traditional wood products and market pulp make up the foundation for value creation in our company,"
Capital expenditure for 2021
KPI New target Comparison to old
targets
Group Dividend* To distribute 50% of EPS To distribute 50%
excluding fair valuation over of EPS over the
the cycle cycle
Growth** > 5% per annum To grow faster than
the relevant market
Net debt to <2.0x No change
operational
EBITDA
Net debt to <60% No change
equity
Operational >13% > 13%, but
ROCE excl. including Forest
Forest
Packaging Operational >20% No change
Materials ROOC
Packaging Operational >25% Operational ROOC
Solutions ROOC >30%
Biomaterials Operational >15% No change
ROOC
Wood Operational >20% No change
Products ROOC
Forest Operational >3.5%*** Operational ROOC
ROCE >5%
Paper Cash flow >7% No change
after
investing
activities
to sales
**Annual dividend **Excl. Paper ***Including deferred tax liabilities
ROCE = Return on Capital Employed
ROOC = Return on
Capital Markets Day webcast
For further information, please contact:
EVP, Communications
tel. +46 72 221 9228
Investor enquiries:
SVP, Investor Relations
tel. +358 40 763 8767
Part of the bioeconomy,
For further information, please contact:
EVP, Communications
tel. +46 72 221 9228
Investor enquiries:
SVP, Investor Relations
tel. +358 40 763 8767
https://news.cision.com/stora-enso-oyj/r/stora-enso-sets-new-financial-targets,c3235009
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