FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2024
===== SIDA 1 =====
Interim report
January–March 2024
===== SIDA 2 =====
List of contents
Summary 2
CEO comment 5
Events 6
Results 6
Divisions 9
Capital structure 14
Cash flow 15
Capital expenditure 16
Sustainability 17
Short-term risks 19
Sensitivity analysis 19
Legal proceedings 20
AGM 2024 20
Financials 22
IFRS section 22
Alternative performance
measures
32
Contacts 39
President and CEO Hans Sohlström:
"In a continuous weak
market, I am encouraged
by Stora Enso's
sequential financial
performance
improvement."
Profit improvement and
capital release
Fixed costs savings target
raised to EUR 120 million from
the initial EUR 80 million,
effective 2025. Additional
sourcing, operational, and
commercial profit
improvement actions
proceeding well. Operating
working capital released:
EUR 551 million year-on-year.
Recognition for green financing
Stora Enso was awarded
"Green bond of the year -
corporate-EMEA" by news
and analysis provider
Environmental Finance. The
bonds are used for
refinancing forest assets and
financing fiber-based
packaging investments.
Advancing positive impacts
on biodiversity
Stora Enso’s partnership with
the International Union for
Conservation of Nature
(IUCN) focuses on developing
a framework to measure and
disclose net positive
biodiversity impacts.
Cover photo: World of Volvo, Gothenburg, Sweden, inaugurated in April 2024
Photographer: Rasmus Hjortshøj
Stora Enso January–March results 2024 1 (39)
===== SIDA 3 =====
Continuous efforts to improve profits,
competitiveness, and cash flow
Quarterly financial highlights
• Sales decreased by 20% to EUR 2,164 (2,721) million.
• Adjusted EBIT decreased to EUR 156 (234) million.
• Adjusted EBIT margin decreased to 7.2% (8.6%).
• Operating result (IFRS) was EUR 148 (258) million.
• Earnings per share (EPS) were EUR 0.11 (0.24) and
EPS excl. fair valuations (FV) was EUR 0.09 (0.23).
• The value of the forest assets increased to EUR 8.6
(8.3) billion, equivalent to EUR 10.94 per share.
• Cash flow from operations amounted to EUR
269 (254) million. Cash flow after investing
activities was EUR -104 (1) million.
• Net debt increased by EUR 601 million to EUR 3,518
(2,917) million, mainly due to the board investment
at the Oulu site.
• The net debt to adjusted EBITDA (LTM
1
) ratio was
4.0 (1.3). The target to keep the ratio below 2.0
remains.
• Adjusted ROCE excluding the Forest division (LTM
1
)
decreased to 0.0% (16.5%), the target being above
13%.
Key highlights
• The profit improvement programme, initiated in
the first quarter, has progressed well and the
annual profit improvement target has been
increased to EUR 120 million, from the initial EUR 80
million, driven by additional fixed cost reductions.
The programme does not include site closures and
may result in the reduction of approximately 1,000
employees.
• Operating working capital decreased by EUR 551
million year-on-year, driven by our continued focus
to improve working capital efficiency.
• The consumer board investment at the Oulu site in
Finland is progressing on schedule. Production is
expected to start in the first half of 2025, with full
capacity estimated to be reached during 2027.
• The plan to divest the Beihai site in China is
proceeding according to plan. The site is classified
as assets held for sale from the end of 2023
onwards.
• A dividend of EUR 0.10 per share for the full year
2023 was paid on 4 April 2024. The AGM has
authorised the Board of Directors to decide on
payment of an additional dividend up to EUR 0.20
per share, valid until 31 December 2024.
• Stora Enso was awarded "Green bond of the year -
corporate-EMEA" by Environmental Finance in April.
Guidance
Stora Enso's full year 2024 adjusted EBIT is expected to
be higher than for the full year 2023, EUR 342 million.
Sales
EUR 2,164 million
(Q1/2023: 2,721)
Adjusted EBIT margin
7.2%
(Q1/2023: 8.6%)
Adjusted ROCE excl.
the Forest division (LTM)
0.0%
(Q1/2023: 16.5%)
Net debt to
adjusted EBITDA (LTM)
4.0
(Q1/2023: 1.3)
EPS (basic)
EUR 0.11
(Q1/2023: 0.24)
Cash flow from operations
EUR 269 million
(Q1/2023: 254)
LTM = Last 12 months
Summary
Stora Enso January–March results 2024 2 (39)
===== SIDA 4 =====
Outlook
Market outlook:
Stora Enso anticipates a gradual recovery in market
conditions in 2024, with increased demand for
consumer board, higher pulp demand and prices.
However, profits are expected to be adversely
impacted in the second quarter, mainly due to the
sequentially higher maintenance costs in the quarter,
higher wood costs, and the recent political strikes in
Finland. Market uncertainties such as a continued high
inflationary environment, strikes, demand and price
development, and other external disruptions which
may impact the Group’s profits, are expected to
persist towards the end of the year.
Packaging Materials:
The Packaging Materials market has stabilised and
orderbooks have improved, though the weak
macroeconomy, including sluggish retail markets, is
still slowing the recovery. Demand for consumer
board is stable to positive, especially in liquid
packaging board. Demand is expected to continue to
recover in kraftliner and testliner, and announced
price increases in the containerboard market are
filtering through. For recycled board, demand has
improved but underlying demand remains weak.
Packaging Solutions:
The Packaging Solutions division expects a stronger
sequential demand in the second quarter due to
seasonal effects. However, heavy overcapacity in the
market, mainly in Eastern Europe, will continue to pose
challenges, together with increasing containerboard
prices.
Biomaterials:
The European demand is expected to slightly increase
due to the ongoing Red Sea Crisis, which benefits
board and paper producers in Europe. However, new
capacities could impact the market later in the year.
Wood Products:
The Wood Products division continues to face
challenges due to low demand, prices, volumes,
and high wood costs. A seasonal demand
improvement is expected in the classic sawn market
during the second quarter of this year. The
construction sector is still not improving.
Forest:
The Forest division expects a gradual rise in wood
demand as markets in the second quarter remain
tight in Finland, Sweden, and the Baltics. Wood prices
are estimated to rise throughout the rest of 2024 in
both Finland and Sweden.
Long-term growth opportunities:
Despite current challenges, Stora Enso sees long-term
growth opportunities in sustainable packaging, wood
construction, and innovative biomaterials. Regulations
and sustainability megatrends support these
developments.
Market demand development by division quarter-on-quarter, Q1/2024 to Q2/2024
Packaging Materials • Demand for consumer board and containerboard is expected to be slightly stronger.
• Value chain destocking has ended.
Packaging Solutions • Demand for corrugated packaging in Europe is expected to be stronger mainly due to the
seasonality of fruit and vegetable markets.
Biomaterials
• Demand for pulp in Europe is expected to be slightly stronger.
• Stable demand is expected for fluff pulp.
• Demand for softwood pulp in China is expected to be slightly stronger and demand for
hardwood pulp in China is expected to be stable.
Wood Products • Demand for sawn wood is expected to be significantly stronger due to seasonal effects.
• Weak demand is expected to continue for building solutions from the construction segment.
Forest
• Demand for pulpwood in Sweden is expected to be slightly stronger and demand for sawlogs
significantly stronger.
• Demand for pulpwood and sawlogs in Finland is expected to be significantly stronger and
demand for pulpwood for energy use is expected to be stronger due to seasonality.
Stora Enso January–March results 2024 3 (39)
===== SIDA 5 =====
Key figures
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Sales 2,164 2,721 -20.5 % 2,174 -0.4 % 9,396
Adjusted EBITDA 298 399 -25.3 % 212 40.3 % 989
Adjusted EBITDA margin 13.8 % 14.7 % 9.8 % 10.5 %
Adjusted EBIT 156 234 -33.1 % 51 209.7 % 342
Adjusted EBIT margin 7.2 % 8.6 % 2.3 % 3.6 %
Operating result (IFRS) 148 258 -42.4 % -326 145.5 % -322
Result before tax (IFRS) 101 228 -55.6 % -378 126.8 % -495
Net result for the period (IFRS) 84 185 -54.5 % -325 125.9 % -431
Cash flow from operations 269 254 5.9 % 323 -16.6 % 954
Cash flow after investing activities -104 1 n/m -9 n/m -40
Capital expenditure 226 229 -1.3 % 422 -46.4 % 1,125
Capital expenditure excluding
investments in biological assets 210 214 -1.6 % 401 -47.5 % 1,054
Depreciation and impairment charges
excl. IAC 118 136 -13.5 % 133 -11.8 % 534
Net debt 3,518 2,917 20.6 % 3,167 11.1 % 3,167
Forest assets
1
8,626 8,269 4.3 % 8,731 -1.2 % 8,731
Adjusted return on capital employed
(ROCE), LTM
2
1.9% 11.5% 2.4% 2.4%
Adjusted ROCE excl. Forest division, LTM
2
0.0% 16.5% 1.0% 1.0%
Earnings per share (EPS) excl. FV, EUR 0.09 0.23 -60.6 % -0.64 114.2 % -0.73
EPS (basic), EUR 0.11 0.24 -55.2 % -0.36 129.6 % -0.45
Return on equity (ROE), LTM
2
-4.8% 12.2% -3.8% -3.8%
Net debt/equity ratio 0.33 0.25 0.29 0.29
Net debt to LTM
2
adjusted EBITDA ratio 4.0 1.3 3.2 3.2
Equity per share, EUR 13.66 14.82 -7.8 % 13.93 -2.0 % 13.93
Average number of employees (FTE) 19,412 21,144 -8.2 % 20,047 -3.2 % 20,822
1
Total forest assets value, including leased land, assets held for sale and Stora Enso's share of Tornator.
2
LTM = Last 12 months. The calculation method explained in the section Alternative performance measures.
IAC = Items affecting comparability, FV = Fair valuations and non-operational items
Adjusted key figures, items affecting comparability and other non-IFRS measures: Stora Enso’s non-IFRS measures, and the calculation and
definitions of the key figures are presented in the section Alternative performance measures.
From 1 January 2024 onwards, a slight change in terminology is applied with regards to certain key alternative performance measures. More
information in the section Changes in Alternative performance measures.
Production and external deliveries
Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Consumer board deliveries, 1,000 tonnes 679 707 -4.0 % 634 7.2 % 2,691
Consumer board production, 1,000 tonnes 702 716 -1.9 % 560 25.4 % 2,593
Containerboard deliveries, 1,000 tonnes 317 319 -0.4 % 257 23.2 % 1,236
Containerboard production, 1,000 tonnes 379 411 -7.7 % 394 -3.8 % 1,592
Corrugated packaging European
deliveries, million m
2
280 285 -1.8 % 279 0.3 % 1,167
Corrugated packaging European
production, million m
2
283 290 -2.2 % 258 9.8 % 1,094
Market pulp deliveries, 1,000 tonnes 386 564 -31.7 % 550 -29.8 % 2,220
Wood products deliveries, 1,000 m
3
879 1,044 -15.8 % 957 -8.2 % 3,897
Wood deliveries, 1,000 m
3
3,494 3,779 -7.5 % 3,435 1.7 % 13,667
Paper deliveries, 1,000 tonnes 158 266 -40.8 % 173 -9.0 % 761
Paper production, 1,000 tonnes 151 258 -41.3 % 170 -10.7 % 752
Total planned maintenance impact
Expected and historical impact as lost value of sales and planned maintenance costs
EUR million Q2/2024
1
Q1/2024
2
Q4/2023 Q3/2023 Q2/2023 Q1/2023
Total maintenance impact 118 83 123 110 146 119
1
The estimated numbers may be impacted by unforeseen additional costs and/or volume loss in connection with the planned maintenance
stops and the restart of operations.
2
The estimate for Q1/2024 was EUR 73 million.
Key figures
Stora Enso January–March results 2024 4 (39)
===== SIDA 6 =====
CEO comment
In a continuous weak market, I am encouraged by
Stora Enso's sequential financial performance
improvement.
However, our year-on-year sales decreased by 20% to
2,164 million euro. Adjusted EBIT decreased to 156
million euro from 234 million in the same period last
year, and the adjusted EBIT margin decreased to 7.2%
from 8.6%. The political strikes in Finland had an
adverse impact of approximately 25 million euro on
our results. But we estimate the impact on our second
quarter results to be lower. Net debt increased by 601
million euro to 3,518 million euro, due to the board
investment at the Oulu site. We will continue our
capital expenditure at 1.0 to 1.1 billion euro this year as
this investment proceeds according to schedule,
aiming to be back towards the average levels of 600
to 800 million euro per year from 2025.
The dividend of 0.10 euro per share was paid in April
2024. And the AGM authorised the Board of Directors
to decide on a second dividend payment of up to 0.20
euro per share, no later than the fourth quarter this
year.
A strong balance sheet is crucial for the future. Our
net debt to adjusted EBITDA ratio was 4.0 in the first
quarter. We recognise that this is higher than our
target of remaining below 2.0 and are taking steps to
manage our debt levels effectively and bring our ratio
back in line with our target. Despite facing weak
market conditions and making strategic investments,
we were able to improve our cash flow by reducing
our operating working capital. In fact, we were able to
reduce it by 551 million euro compared to the
previous year. We aim to release capital through
working capital management and divestments to
further reduce debt and increase liquidity, which
remains strong.
Last year's poor performance emphasised the need
for efficiency, decisiveness, and focus on essentials.
We therefore launched a profit improvement
programme this year, designed to strengthen our
long-term competitiveness and financial
sustainability. I am pleased to share that the
programme is progressing well, and we have raised
the potential improvement to 120 million euro annual
adjusted EBIT from the initial target of 80 million euro.
While we remain committed to our employees, the
programme may result in the reduction of
approximately 1,000 employees. Laying off people is a
last resort, but it is necessary to improve our financial
performance.
We have moved to a new, decentralised operating
model and performance-driven organisation across
the Group. We are building a culture centred around
ambitious goal setting, agility, analytics, and
accountability. This is linked to our expectations as an
employer, and to the benefit of our customers and
owners. Our commercial and operational excellence
will benefit from a leaner approach where the
responsibility for results is divided between divisions
and business units to improve decision-making.
Our actions also focus on improving profitability
through more efficient sourcing, production, and
sales; freeing up capital, including working capital;
strategy and execution; and ensuring we have the
right people in the right jobs. The acquisition of De
Jong Packaging Group and ongoing investment at
our Oulu site support the Group's long-term strategy
to build market share in renewable and circular
packaging solutions that matter most to our
customers.
Looking ahead, we anticipate a gradual recovery in
2024, with increased demand and higher prices for
board and pulp. However, we anticipate adverse
profit impacts in the second quarter due to higher
maintenance costs and strikes in Finland. Cost
inflation pressure has started to come down in
general, but wood cost increases, especially on the
Finnish market, continue to challenge profitability also
this year. Ongoing market uncertainties, such as high
inflation, demand and price development, and
external disruptions, may persist throughout the year
and could affect our profits.
While we face short-term challenges, we remain
confident in our ability to focus on long-term growth
opportunities in sustainable packaging, wood
construction and innovative biomaterials.
Finally, I am pleased to report that we are on track
and committed to meet our full year 2024 adjusted
EBIT guidance to be higher than the full year 2023
adjusted EBIT of 342 million euro. And we are
confident that our actions will build a more profitable,
competitive, and valuable Stora Enso.
Thank you for your continued support and
collaboration.
Sincerely,
Hans Sohlström
President and CEO
CEO comment
Stora Enso January–March results 2024 5 (39)
===== SIDA 7 =====
Events and product update
Profit improvement programme proceeding
well
In February, Stora Enso launched a profit
improvement programme targeting annualised
adjusted EBIT improvement of EUR 80 million. The
programme has progressed well and the target has
been raised to EUR 120 million, driven by additional
fixed cost reductions. The programme may lead to a
potential reduction of approximately 1,000
employees. No production site closures are planned
as part of this programme. The reductions will reflect
division sizes and are in response to the ongoing
weak and uncertain market environment. The
majority of the reductions are expected to occur in
H1 2024. The majority of savings will materialise in
2025.
Events after the quarter
No significant events after the quarter to date.
First quarter 2024 results (compared with Q1/2023)
Sales
MEUR 2,164
(Q1/2023: 2,721)
Adjusted EBIT margin
7.2%
(Q1/2023: 8.6%)
Earnings per share
EUR 0.11
(Q1/2023: 0.24)
Group sales decreased by 20%, or EUR 557 million, to
EUR 2,164 (2,721) million. Sales declined due to lower
sales prices in all divisions, except Forest, capacity
closures, and the political strikes in Finland.
Low demand and the strikes decreased deliveries for
continuing operations in all other divisions, except
Biomaterials and Packaging Materials. Lower
maintenance activity and higher containerboard
deliveries were more than offset by the negative
impact of structural changes. These changes related
to the paper site divestments at Hylte in Sweden, and
Maxau in Germany, and the closures of the De Hoop
board unit in the Netherlands, the Sunila pulp
production site in Finland and the Näpi sawmill in
Estonia.
Group adjusted EBIT decreased to EUR 156 (234)
million, and the adjusted EBIT margin decreased to
7.2% (8.6%). The negative impact from the Finnish
political strikes of approximately 25 MEUR was more
than offset by positive one-off compensations of
energy production costs related to CO2 emissions in
Packaging Materials. Lower sales prices in all divisions
except for Forest decreased profitability by EUR 243
million. Higher volumes for continuing operations,
especially in containerboard, increased profitability
by EUR 40 million, supported by lower maintenance
activity. Apart from fiber costs, mainly wood, many
variable cost categories continued to decline and
improved adjusted EBIT by EUR 85 million. Fixed costs
decreased by EUR 46 million, due to a lower
maintenance activity and cost saving actions. Net
foreign exchange rates had a negative EUR 1 million
impact on adjusted EBIT. The impact from the
structural changes, depreciations, associated
companies and other was a negative EUR 5 million on
adjusted EBIT.
Fair valuations and non-operational items (FV) had a
positive net impact on the operating result of EUR 11 (11)
million.
Items affecting comparability (IAC) had a negative
impact of EUR 20 (positive 12) million on the operating
result. The main IAC items are related to
restructurings in various divisions. More details of the
items affecting comparability and fair valuation
items are included in the sections for each division
and in the section Items affecting comparability (IAC),
fair valuations and non-operational items (FV).
Operating result (IFRS) was EUR 148 (258) million.
Net financial expenses of EUR 47 million were EUR 18
million higher than a year ago. Net interest expenses
of EUR 31 million increased by EUR 6 million. Other net
financial expenses increased to EUR 9 (2) million. The
net foreign exchange impact in respect of cash
equivalents, interest-bearing assets and liabilities,
and related foreign-currency hedges amounted to a
loss of EUR 7 (loss of EUR 2) million.
Earnings per share decreased to EUR 0.11 (0.24), and
earnings per share excluding fair valuations were EUR
0.09 (0.23).
The adjusted return on capital employed LTM (ROCE)
was 1.9% (11.5%). Adjusted ROCE excluding the Forest
division LTM was 0.0% (16.5%).
CEO comment
Stora Enso January–March results 2024 6 (39)
===== SIDA 8 =====
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0
1,000
2,000
3,000
4,000
0%
6%
12%
18%
24% Adjusted ROCE excl. Forest (LTM)
Adjusted ROCE excl. Forest division,
last 12 months
Target >13%Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0%
6%
12%
18%
24% Net debt to adjusted EBITDA (LTM)
Net debt, EUR million
Net debt to adjusted EBITDA, LTM
Target <2.0Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0
1,000
2,000
3,000
4,000
0.0
1.0
2.0
3.0
4.0
LTM = Last 12 months, the calculation method is explained in the section Alternative performance measures.
Breakdown of change in sales
Sales Q1/2023, EUR million 2,721
Price and mix -9 %
Currency 0 %
Volume -1 %
Other sales
1
-1 %
Total before structural changes -11 %
Structural changes
2
-9 %
Total -20 %
Sales Q1/2024, EUR million 2,164
1
Energy, paper for recycling (PfR), by-products etc.
2
Asset closures, major investments, divestments and acquisitions
Breakdown of change in capital employed
Capital employed 31 March 2023, EUR million 14,573
Capital expenditure excl. investments in biological
assets less depreciation 537
Investments in biological assets less depletion of
capitalised silviculture costs -3
Impairments and reversal of impairments -751
Fair valuation of forest assets 246
Unlisted securities (mainly PVO) -223
Associated companies 104
Net liabilities in defined benefit plans -14
Operating working capital and other interest-free
items, net -377
Emission rights -74
Net tax liabilities 209
Acquisition of subsidiaries 77
Disposal of subsidiaries -9
Translation difference -120
Other changes 17
Capital employed 31 March 2024 14,190
First quarter 2024 results (compared with Q4/2023)
Group sales remained flat at EUR
2,164 (2,174) million, negatively
impacted by the political strike in
Finland. Lower sales prices, apart
from pulp, were more than offset
by higher board deliveries, as
customer destocking has ended.
Adjusted EBIT increased to EUR
156 (51) million and the margin
improved to 7.2% (2.3%). The
negative impact of the political
strikes in Finland of
approximately EUR 25 million
was more than offset by lower
depreciation and positive one-
off compensation of energy
production costs related to
CO2 emissions in Packaging
Materials. Lower sales prices
decreased adjusted EBIT by
EUR 13 million. Variable costs
decreased by EUR 48 million as
most input costs continued to
support profitability.
Volumes had a positive EUR 58
million impact, mainly due to
Packaging Materials. Fixed
costs were EUR 58 million lower
supported by lower
maintenance activity and cost
saving actions. Net foreign
exchange rates had a
negative EUR 6 million impact
on adjusted EBIT. The impact
from structural changes,
depreciations, associated
companies and other was a
negative EUR 40 million.
Operating result (IFRS) was EUR
148 (-326) million. More details
of the items affecting
comparability (IAC) and fair
valuations (FV) are included in
the sections for each division.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q4/2023 Q1/2024
0
1,000
2,000
3,000
4,000
0%
3%
6%
9%
12%
Result
Stora Enso January–March results 2024 7 (39)
===== SIDA 9 =====
Packaging Materials
• Consumer board
demand improved as
destocking ended
• Containerboard
demand gradually
improved with cost-
driven price increases
announced across the
industry
• The political strikes in
Finland led to
production curtailments
and delayed shipments
during March and early
April
2023 2024
Q1 — —
Q2 Beihai, Ostrołęka, Langerbrugge Beihai, Langerbrugge
Q3 Anjalankoski, Heinola, Ostrołęka, Oulu,
Varkaus, Ingerois Oulu, Varkaus, Heinola
Q4 Fors, Imatra, Skoghall Anjalankoski, Fors, Imatra, Ostrołęka,
Skoghall
Adjusted ROOC (LTM)
-1.1%
(Target: >20%)
Planned maintenance shutdowns
• Sales decreased by 15%, or EUR
200 million, to EUR 1,100 million,
mainly due to production unit/
line closures during 2023, lower
board and paper prices, and
delayed shipments due to the
political strike in Finland.
• Adjusted EBIT increased to EUR
60 million. Approximately 50% of
the adjusted EBIT is attributed
to positive one-off
compensations of energy
production costs related to CO2
emissions.
• Variable costs declined, except
for wood costs, which
continued increasing.
• Adjusted ROOC (LTM) was -1.1%
(13.5%), below the long-term
target of >20%.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0
300
600
900
1,200
1,500
-4%
0%
4%
8%
12%
16%
20%
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Sales 1,100 1,300 -15.4 % 1,045 5.2 % 4,557
Adjusted EBITDA 126 128 -1.5 % 35 257.7 % 267
Adjusted EBITDA margin 11.5 % 9.9 % 3.4 % 5.9 %
Adjusted EBIT 60 41 46.0 % -43 240.4 % -57
Adjusted EBIT margin 5.5 % 3.2 % -4.1 % -1.3 %
Fair valuations and non-operational items
1
-1 0 n/m 12 -107.7 % 12
Items affecting comparability (IAC)
1
-4 -21 79.2 % -474 99.1 % -597
Operating result (IFRS) 55 21 164.2 % -504 110.9 % -642
Adjusted EBIT, LTM -38 488 -107.9 % -57 32.9 % -57
Operating capital, LTM average 3,566 3,604 -1.1 % 3,580 -0.4 % 3,580
Adjusted ROOC, LTM -1.1 % 13.5 % -1.6 % -1.6 %
Cash flow from operations 160 -5 n/m 155 3.2 % 370
Cash flow after investing activities -129 -157 18.1 % -59 -118.1 % -235
Board and paper deliveries, 1,000 tonnes 1,225 1,286 -4.7 % 1,176 4.2 % 4,963
Board and paper production, 1,000 tonnes 1,233 1,290 -4.5 % 1,124 9.7 % 4,843
1
The
IAC for Q1/24 included EUR -4 million restructuring costs, and the IAC for Q1/23 included restructuring costs related to Anjala mill of EUR -19
million and other costs of EUR -2 million. The fair valuations for Q1/24 included non-operational fair valuation changes of biological assets of EUR -1
(0) million.
LTM = Last 12 months
Segments
Stora Enso January–March results 2024 8 (39)
===== SIDA 10 =====
Market development during Q1/2024
Product Market
Demand Q1/24
compared with
Q1/23
Demand Q1/24
compared with
Q4/23
Price Q1/24
compared with
Q1/23
Price Q1/24
compared with
Q4/23
Consumer board Europe Stronger Significantly stronger Lower Slightly lower
Kraftliner Global Significantly stronger Significantly stronger Significantly lower Stable
Testliner Europe Stronger Stronger Significantly lower Lower
Paper Europe Slightly stronger Stable Significantly lower Slightly lower
Source: Fastmarket RISI, Fastmarket FOEX, CEPI, Numera Analytics, Stora Enso. Consumer board prices include FBB only.
Segments
Stora Enso January–March results 2024 9 (39)
===== SIDA 11 =====
Packaging Solutions
• Weak market conditions
and price pressure
continued
• Low season in most
segments, but stabilised
demand at a low level
across most markets
and segments
• Significant overcapacity
in the market continued
to weigh on
performance
Adjusted ROOC (LTM)
3.3%
(Target: >15%)
Sales YoY
-19%
Adjusted EBIT margin
-0.5%
(Q1/2023: 2.8%)
• Sales decreased by 19% or EUR 52
million to EUR 224 million, driven
by lower price levels which
followed the lower
containerboard prices.
• Adjusted EBIT decreased by EUR 9
million to EUR -1 million, mainly
impacted by high pressure on
prices and margins.
• Adjusted ROOC (LTM) was 3.3%,
below the long-term target of
>15%.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0
50
100
150
200
250
300
-2%
0%
2%
4%
6%
8%
10%
12%
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Sales 224 276 -18.9 % 247 -9.5 % 1,077
Adjusted EBITDA 18 24 -23.1 % 25 -26.1 % 111
Adjusted EBITDA margin 8.2 % 8.6 % 10.0 % 10.3 %
Adjusted EBIT -1 8 -113.0 % 6 -117.7 % 43
Adjusted EBIT margin -0.5 % 2.8 % 2.3 % 4.0 %
Items affecting comparability (IAC)
1
-3 -20 86.7 % -1 n/m -26
Operating result (IFRS) -4 -12 70.0 % 5 -170.7 % 17
Adjusted EBIT, LTM 34 19 77.1 % 43 -20.5 % 43
Operating capital, LTM average 1,039 368 182.4 % 874 18.9 % 874
Adjusted ROOC, LTM 3.3 % 5.2 % 4.9 % 4.9 %
Cash flow from operations 7 19 -65.2 % 47 -86.0 % 145
Cash flow after investing activities -6 -7 9.6 % 26 -122.8 % 62
Corrugated packaging European
deliveries, million m
2
283 288 -1.7 % 278 1.6 % 1,178
Corrugated packaging European
production, million m
2
283 290 -2.2 % 258 9.8 % 1,094
1
The
IAC for Q1/24 included EUR -3 million restructuring costs and the IAC for Q1/23 included EUR -15 million costs related to acquisition of De Jong
Packaging Group and EUR -5 million restructuring costs.
LTM = Last 12 months
The comparative figures for corrugated packaging European deliveries have been adjusted.
Market development during Q1/2024
Product Market
Demand Q1/24
compared with
Q1/23
Demand Q1/24
compared with
Q4/23
Price Q1/24
compared with
Q1/23
Price Q1/24
compared with
Q4/23
Corrugated packaging Europe Stable Stable Significantly lower Stable
Source: Fastmarket RISI
Segments
Stora Enso January–March results 2024 10 (39)
===== SIDA 12 =====
Biomaterials
• Overall demand stable
with solid demand for
fluff pulp
• Prices improved
sequentially in all pulp
grades and markets
• Both global and
European inventories
remain below 5-year
average
2023 2024
Q1 Veracel —
Q2 Montes del Plata, Skutskär Montes del Plata, Skutskär
Q3 — Enocell, Veracel
Q4 Enocell —
Adjusted ROOC (LTM)
3.3%
(Target: >15%)
Planned maintenance shutdowns
• Sales decreased by 23%, or EUR
114 million to EUR 374 million.
Sales prices were significantly
lower, as were deliveries, due to
the closure of the Sunila pulp
mill.
• Adjusted EBIT decreased to EUR
57 million, mainly due to lower
sales prices, partly offset by
actions to reduce fixed costs.
The political strikes in Finland
had a slight negative effect.
• Adjusted ROOC (LTM) was 3.3%,
below the long-term target of
>15%.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0
200
400
600
800
-10%
0%
10%
20%
30%
40%
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Sales 374 488 -23.3 % 375 0.0 % 1,587
Adjusted EBITDA 90 125 -28.2 % 70 29.2 % 256
Adjusted EBITDA margin 24.0 % 25.7 % 18.6 % 16.1 %
Adjusted EBIT 57 91 -37.3 % 35 65.1 % 118
Adjusted EBIT margin 15.3 % 18.7 % 9.3 % 7.4 %
Fair valuations and non-operational items
1
1 -1 223.7 % 24 -94.3 % 25
Items affecting comparability (IAC)
1
-1 0 -100.0 % -105 99.3 % -224
Operating result (IFRS) 58 90 -35.8 % -46 225.1 % -81
Adjusted EBIT, LTM 84 661 -87.3 % 118 -28.9 % 118
Operating capital, LTM average 2,573 2,755 -6.6 % 2,625 -2.0 % 2,625
Adjusted ROOC, LTM 3.3 % 24.0 % 4.5 % 4.5 %
Cash flow from operations 130 192 -32.3 % 71 83.3 % 431
Cash flow after investing activities 87 140 -38.0 % 26 234.5 % 234
Pulp deliveries, 1,000 tonnes 536 580 -7.7 % 567 -5.5 % 2,277
1
The
IAC for Q1/24 included EUR -1 million restructuring costs. The fair valuations for Q1/24 included non-operational fair valuation changes of
biological assets of EUR 1 (-1) million.
LTM = Last 12 months
Market development during Q1/2024
Product Market
Demand Q1/24
compared with Q1/23
Demand Q1/24
compared with
Q4/23
Price Q1/24
compared with
Q1/23
Price Q1/24
compared with
Q4/23
Softwood pulp Europe Weaker Slightly stronger Significantly lower Slightly higher
Hardwood pulp Europe Slightly stronger Slightly stronger Significantly lower Significantly higher
Hardwood pulp China Significantly stronger Stable Significantly lower Significantly higher
Source: PPPC, Fastmarket FOEX, Fastmarket RISI, Stora Enso
Segments
Stora Enso January–March results 2024 11 (39)
===== SIDA 13 =====
Wood Products
• Weaker overall demand
with m argins remaining
at low levels
• Implemented costs
saving actions
mitigated the impact of
the weak demand
• Low building permitting
and project activity led
to sustained low
demand for Cross
Laminated Timber (CLT)
and Laminated Veneer
Lumber (LVL)
Adjusted ROOC (LTM)
-9.3%
(Target: >20%)
Sales YoY
-23%
Adjusted EBIT margin
-2.6%
(Q1/2023: -2.3%)
• Sales decreased by 23%, or
EUR 105 million, to EUR 349
million, mainly impacted by
lower sales prices and
volumes, especially for sawn
wood.
• Adjusted EBIT increased by EUR
1 million to EUR -9 million,
improved by lower fixed and
material costs.
• Cost mitigation actions and
production curtailments were
taken to adjust to prevailing
market conditions.
• Adjusted ROOC (LTM) was
below the long-term target of
>20% at -9.3% (24.9%).
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0
200
400
600
800
-10%
0%
10%
20%
30%
40%
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Sales 349 454 -23.1 % 341 2.4 % 1,580
Adjusted EBITDA 1 2 -10.8 % -15 109.2 % -17
Adjusted EBITDA margin 0.4 % 0.3 % -4.4 % -1.0 %
Adjusted EBIT -9 -11 12.6 % -27 65.1 % -64
Adjusted EBIT margin -2.6 % -2.3 % -7.8 % -4.1 %
Items affecting comparability (IAC) 0 0 -100.0 % -13 97.8 % -22
Operating result (IFRS) -10 -11 9.9 % -40 75.9 % -86
Adjusted EBIT, LTM -63 180 -134.9 % -64 2.1 % -64
Operating capital, LTM average 673 723 -6.9 % 687 -2.1 % 687
Adjusted ROOC, LTM -9.3 % 24.9 % -9.3 % -9.3 %
Cash flow from operations -30 3 n/m 15 -294.5 % 43
Cash flow after investing activities -47 -8 n/m -1 n/m 3
Wood products deliveries, 1,000 m
3
848 1,001 -15.3 % 915 -7.3 % 3,727
LTM = Last 12 months
Market development during Q1/2024
Product Market
Demand Q1/24
compared with Q1/23
Demand Q1/24
compared with Q4/23
Price Q1/24 compared
with Q1/23
Price Q1/24 compared
with Q4/23
Wood products Europe Significantly weaker Significantly stronger Lower Higher
Wood products Overseas Significantly weaker Significantly weaker Lower Higher
Source: Stora Enso
Segments
Stora Enso January–March results 2024 12 (39)
===== SIDA 14 =====
Forest
• Strong quarterly result
driven by increased
prices, strong wood
demand and good
harvesting conditions
• Wood prices increased
compared to the same
period 2023 , but
remained at the same
level quarter-on-quarter
• The political strikes in
Finland reduced wood
consumption, but the
wood market remained
active in increasing
standing stock
• The wood market in the
Baltics and Nordics
remained tight
Adjusted ROCE (LTM)
4.6%
(Target: >3.5%)
Sales YoY
-4%
Total value of forest assets
EUR 8.6 billion
(Q1/2023: EUR 8.3 billion)
• Sales decreased by 4%, or EUR
28 million, to EUR 659 million.
The effect of higher wood
prices was more than offset by
lower volumes.
• Adjusted EBIT of EUR 70 million
reflects strong operational
performance in the Group's
forest assets.
• Adjusted ROCE (LTM), at 4.6%
(3.8%), was above the 3.5%
long-term target.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
0
200
400
600
800
0%
6%
12%
18%
24%
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Sales
1
659 687 -4.0 % 650 1.4 % 2,490
Adjusted EBITDA 80 68 18.7 % 90 -10.6 % 305
Adjusted EBITDA margin 12.2 % 9.9 % 13.9 % 12.2 %
Adjusted EBIT 70 57 23.7 % 75 -6.4 % 253
Adjusted EBIT margin 10.7 % 8.3 % 11.6 % 10.2 %
Fair valuations and non-operational items
2
-6 -9 35.8 % 221 -102.7 % 206
Items affecting comparability (IAC)
2
-2 -3 40.7 % 4 -150.9 % 2
Operating result (IFRS)
3
63 44 40.8 % 300 -79.1 % 461
Adjusted EBIT, LTM 267 212 25.7 % 253 5.3 % 253
Capital employed, LTM average 5,782 5,562 4.0 % 5,740 0.7 % 5,740
Adjusted ROCE, LTM 4.6 % 3.8 % 4.4 % 4.4 %
Cash flow from operations 18 20 -11.6 % 54 -67.3 % 70
Cash flow after investing activities 8 9 -16.7 % 40 -80.9 % 19
Wood deliveries, 1,000 m
3
8,270 9,227 -10.4 % 7,848 5.4 % 32,401
Operational fair value change of biological
assets 35 29 17.9 % 34 1.8 % 120
1
In Q1/24, internal wood sales to Stora Enso divisions represented 58% of net sales, external sales to other forest companies represented 42%.
2
The
IAC for Q1/24 included EUR -2 million restructuring costs. The IAC for Q1/23 included updates in environmental provisions of EUR -3 million. The
fair valuations for Q1/24 included non-operational items of associated companies of EUR -6 (-5) million. The fair valuations for Q1/23 additionally
included a EUR -5 million impact from adjustments for differences between the fair value and acquisition cost of forest assets upon disposal.
3
Includes the full fair value change of the Nordic biological assets (standing trees)
LTM = Last 12 months
Segments
Stora Enso January–March results 2024 13 (39)
===== SIDA 15 =====
Market development during Q1/2024
Product Market
Demand Q1/24
compared with Q1/23
Demand Q1/24
compared with Q4/23
Price Q1/24 compared
with Q1/23
Price Q1/24 compared
with Q4/23
Pulp wood, Finland Europe Significantly weaker Slightly weaker Significantly higher Stable
Sawlogs, Finland Europe Weaker Slightly weaker Slightly higher Slightly lower
Pulpwood, Sweden Europe Significantly weaker Significantly stronger Significantly higher Stable
Sawlogs, Sweden Europe Significantly weaker Significantly stronger Significantly higher Higher
Source: Stora Enso
Segment Other
The segment Other includes the reporting of the emerging businesses (including Formed Fiber and Selfly Store), as
well as Stora Enso’s shareholding in the energy company Pohjolan Voima (PVO), and the Group’s shared services
and administration.
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23 Q4/23
Change %
Q1/24–
Q4/23 2023
Sales 57 364 -84.4 % 207 -72.7 % 964
Adjusted EBITDA -9 31 -129.0 % 2 n/m 18
Adjusted EBITDA margin -15.9 % 8.6 % 1.1 % 1.9 %
Adjusted EBIT -11 27 -142.6 % -1 n/m 1
Adjusted EBIT margin -19.9 % 7.3 % -0.7 % 0.1 %
Fair valuations and non-operational items
1
17 21 -20.7 % -28 159.8 % -13
Items affecting comparability (IAC)
1
-10 56 -117.2 % -16 40.7 % -28
Operating result (IFRS) -4 104 -103.8 % -46 91.3 % -41
Cash flow from operations -15 25 -157.9 % -20 24.9 % -105
Cash flow after investing activities -17 23 -170.8 % -40 59.0 % -123
1
The
IAC for Q1/24 included EUR -9 million restructuring costs and EUR -1 million other costs. The
IAC in Q1/23 included EUR 22 million related to the
restructuring of Kvarnsveden and EUR 5 million to restructuring of Veitsiluoto, EUR -29 million related to disposal of Nymolla site and EUR 49 million
to disposal of Maxau site, and EUR 9 million related to environmental provision reversals. The fair valuations for Q1/24 included non-cash income
and expenses related to CO2 emission rights and liabilities of EUR 17 (21) million.
• Sales decreased by EUR 308 million to EUR 57
million. The main impacts were the divestments of
three paper production units, lower internal
invoicing due to the new decentralised operating
model, and lower energy sales following lower
market prices.
• Adjusted EBIT decreased to EUR -11 million, mainly
due to lower margins for electricity sales and the
divestments of the paper assets.
• The divisions are charged for electricity at market
prices. Through its 15.7% shareholding in the Finnish
energy company Pohjolan Voima (PVO), Stora
Enso is entitled to receive, at cost, 8.9% of the
electricity produced by the Olkiluoto nuclear
reactors, and 20.6% of the electricity from the
hydropower plants.
Capital structure Q1/2024 (compared with Q4/2023)
EUR million 31 Mar 2024 31 Dec 2023 31 Mar 2023
Fixed assets
1
14,169 14,206 14,503
Associated companies 923 926 820
Operating working capital, net
2
556 488 949
Non-current interest-free items, net -224 -252 -211
Operating capital total 15,425 15,368 16,061
Net tax liabilities -1,234 -1,312 -1,488
Capital employed
3
14,190 14,056 14,573
Equity attributable to owners of the Parent 10,771 10,985 11,688
Non-controlling interests -98 -97 -31
Net debt 3,518 3,167 2,917
Financing total
3
14,190 14,056 14,573
1
Fixed assets include goodwill, other intangible assets, property, plant and equipment, right-of-use assets, forest assets, emission rights, and
unlisted securities.
2
Operating working capital, net includes inventories, trade receivables, trade payables and all other short-term operating receivables, payables,
accruals, and provisions.
3
Including assets held for sale and related liabilities.
Segments
Stora Enso January–March results 2024 14 (39)
===== SIDA 16 =====
Net debt increased by EUR 351 million to EUR 3,518
(3,167) million during the first quarter. The ratio of net
debt to the last 12 months’ adjusted EBITDA was at 4.0
(3.2). The net debt/equity ratio on 31 March 2024
increased to 0.33 (0.29). The average interest expense
rate on borrowings at the reporting date was 4.2%
(4.0%). Cash and cash equivalents net of overdrafts
decreased by EUR 368 million to EUR 2,096 million.
Stora Enso had in total EUR 800 million committed
undrawn credit facilities as per 31 March 2024.
Additionally, the Company has access to EUR 1,100
million statutory pension premium loans in Finland.
Year-on-year, operating working capital (net)
decreased by EUR 393 million.
Operating working capital, i.e. Inventories, trade
receivables and trade payables, decreased by EUR
551 million year-on-year. Other operating working
capital increased by EUR 158 million year-on-year.
Valuation of forest assets
The value of total forest assets, including leased land,
Stora Enso's share of Tornator's forest assets and
assets held for sale in China, decreased sequentially
by EUR 106 million to EUR 8,626 (8,731) million. The
decrease is mainly an effect of foreign exchange rate
impact.
Credit ratings
Rating agency Long/short-term rating Valid from
Fitch Ratings BBB- (stable) 4 August 2023
Moody’s Baa3 (stable) / P-3 17 November 2023
Cash flow Q1/2024 (compared with Q4/2023)
Cash flow (non-IFRS)
EUR million Q1/24 Q1/23
Change %
Q1/24–Q1/23 Q4/23
Change %
Q1/24–Q4/23 2023
Adjusted EBITDA 298 399 -25.3 % 212 40.3 % 989
IAC on adjusted EBITDA -19 32 -159.6 % -6 -224.1 % -126
Other adjustments -20 -57 64.5 % -91 77.8 % -210
Change in working capital 10 -120 108.7 % 207 -95.0 % 300
Cash flow from operations 269 254 5.9 % 323 -16.6 % 954
Cash spent on fixed and biological assets -373 -253 -47.3 % -328 -13.7 % -989
Acquisitions of associated companies 0 0 0.0 % -3 100.0 % -5
Cash flow after investing activities -104 1 n/m -9 n/m -40
Cash flow after investing activities was EUR -104 (-9)
million. Working capital decreased by EUR 10 million,
mainly due to lower trade receivables partly offset by
higher inventories. Cash spent on fixed and biological
assets was EUR 373 million. Payments related to the
previously announced provisions amounted to EUR 23
million. Cash flow from operations was strong despite
lower adjusted EBITDA, EUR 269 (323) million, mainly
due to working capital reduction.
EUR million
Cash flow from operations
Cash flow after investing activities
Q1/23 Q2/23 Q3/23 Q4/23 Q1/24
-100
0
100
200
300
400
Results
Stora Enso January–March results 2024 15 (39)
===== SIDA 17 =====
Capital expenditure Q1/2024 (compared with Q1/2023)
Additions to fixed and biological assets totalled EUR
226 (229) million, of which EUR 210 (214) million were
fixed assets and EUR 16 (15) million biological assets.
Depreciations and impairment charges excluding
IACs totalled EUR 118 (136) million. Additions in fixed and
biological assets had a cash outflow impact of EUR
373 (253) million.
Capital expenditure by division
EUR million Q1/24 Investment
to be finalised
Packaging Materials 176 Oulu consumer board investment in Finland
Board machine 8 capacity increase at Skoghall in Sweden
2025
2024
Packaging Solutions 8 De Lier site expansion in the Netherlands 2024
Biomaterials 30 Skutskär fluff pulp, winder and roll handling
Enocell unbleached kraft pulp (UKP)
2025
2024
Wood Products 5 n/a
Forest 5 n/a
Other 2 n/a
Total 226
Capital expenditure and depreciation forecast 2024
EUR million Forecast 2024
Capital expenditure 1,030–1,130
Depreciation and depletion of capitalised silviculture costs 500-600
Stora Enso’s capital expenditure forecast includes
approximately EUR 75 million for the Group's forest
assets.
The depletion of capitalised silviculture costs is
forecast to be EUR 70–80 million.
Results
Stora Enso January–March results 2024 16 (39)
===== SIDA 18 =====
Key sustainability targets and performance
Stora Enso contributes to the circular bioeconomy transition in the three areas in which it has the biggest
impact and opportunities: climate change, circularity, and biodiversity. The foundation for these is the conduct
of everyday business in a responsible manner.
• Advancing positive
biodiversity impacts
through a science-
based framework,
leveraging technology
and data. New
partnership with the
International Union for
Conservation of Nature
(IUCN) provides insights
for validation and
development.
• Achieved leadership
level in CDP's Climate
Change, Forest, and
Water Security
assessments, earning
recognition for
environmental
transparency and
performance.
• Awarded "Green bond of
the year - corporate
EMEA" by news and
analysis provider
Environmental Finance.
Climate change
Stora Enso’s science-based target for 2030 is to
reduce absolute Scope 1 and 2 greenhouse gas
(CO2e) emissions by 50% from the 2019 baseline, in line
with the 1.5-degree scenario. Furthermore, the Group
is committed to reducing Scope 3 emissions by 50%
from the 2019 baseline by 2030.
By the end of the Q1/2024, the Scope 1 and 2 CO2e
emissions were 1.44 million tonnes or 44% less than in
the base year. Compared with Q1/2023 (1.78 million
tonnes or 31% less), the decrease in emissions was
mainly a consequence of lower production volumes,
as well as site and production line closures. The Group
continues to further reduce emissions by improving
energy efficiency, replacing fossil fuels with
renewables, and increasing the share of non-fossil
electricity.
Direct and indirect CO2e emissions
(Scope 1+2, rolling four quarters)
1
Million tonnes
0%
-12%-13%
-27%
-41%-44% -50%
CO2e million tonnes, effective
CO2e million tonnes, target -50%
% reduction
2019
2020
2021
2022
2023
31 Mar 2024
2024
2025
2026
2027
2028
2029
2030
0.0
0.4
0.8
1.2
1.6
2.0
2.4
2.8
In 2023, Stora Enso's estimated Scope 3 CO2e
emissions were 4.95 million tonnes or 34% less than in
the base year (2022: 5.69 million tonnes or 24% less).
The decrease in emissions was mainly a result of
lower production volumes as well as site and
production line closures. Stora Enso continues to
further improve its Scope 3 performance by
enhancing efficiency and lowering carbon intensity in
the value chain, collaborating with raw material
suppliers, logistics suppliers, and customers.
CO2e emissions along the value chain (Scope 3)
1
Million tonnes
0% -3% 3%
-24%
-34%
-50%
CO2e million tonnes, estimated
CO2e million tonnes, target -50%
% reduction
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
0
1
2
3
4
5
6
7
8
1
Calculated as rolling four quarters. For more on definitions, see Calculation of key sustainability figures.
Sustainability
Stora Enso January–March results 2024 17 (39)
===== SIDA 19 =====
Circularity
Stora Enso's target is to reach 100% recyclable
products by 2030. By the end of 2023, 94% (2022: 94%)
of the Group's products were technically recyclable.
Stora Enso aims to ensure the recyclability of
products through an increased focus on circularity in
innovation processes and collaborates actively with
customers and partners to set up infrastructure to
improve the actual recycling of products.
Share of technically recyclable products
1, 2
94%
6%
Technically recyclable products
Balance to 2030 target
Target 2030: 100%
1
As of 31 December 20232
For definitions, see Calculation of key sustainability figures.
Biodiversity
Stora Enso is committed to achieving a net-positive
impact on biodiversity in its own forests and
plantations by 2050 through active biodiversity
management. The Group steers its biodiversity
actions through a Biodiversity Leadership Programme
to improve biodiversity at species, habitat and
landscape levels. Progress is monitored with science-
based impact indicators reported on the Group's
website.
Biodiversity is an integral part of forest certifications
including protection of valuable ecosystems. Stora
Enso’s target is to maintain a forest certification
coverage level of at least 96% for the Group's own and
leased forest lands. The forest certification coverage
has remained stable and amounted to 99% in 2023
(2022: 99%).
Biodiversity: forest certification coverage
1
Forest certification coverageTarget 96%
2021 2022 2023
80%
85%
90%
95%
100%
1
For definitions, see Calculation of key sustainability figures.
Responsible business practices
Stora Enso reports on the sustainability indicators below on a quarterly basis. For full annual overview of Stora Enso's
sustainability targets and 2023 performance, see storaenso.com.
Key performance indicators (KPIs) 31 Mar 2024 31 Dec 2023 31 Mar 2023 Target
Occupational safety: TRI rate, year-to-date 5.4 4.7 5.2 4.6 by the end of 2024
Gender balance: % of female managers among all
managers 25% 24% 24% 25% by the end of 2024
Water: total water withdrawal per saleable tonne
(m
3
/tonne)
2 62 61 59 Decreasing trend from 2016
baseline (60m
3
/tonne)
Water: process water discharges per saleable tonne, (m
3
/
tonne)
1,2 34 35 34 17% reduction by 2030 from
2019 baseline (36m
3
/tonne)
Sustainable sourcing: % of supplier spend covered by the
Supplier Code of Conduct (SCoC)
1 96% 95% 96% 95% or above
1
Excluding Business Unit Western Europe in Packaging Solutions.
2
Comparative figures restated due to structural changes. For definitions, see
Calculation of key sustainability figures.
At the end of Q1/2024, the Group's TRI rate was 5.4.
Additionally, Stora Enso tracks proactive safety
reporting using a leading indicator known as the
'Safety Engagement Rate' to continuously enhance
safety culture and performance.
Stora Enso promotes a diverse and inclusive working
environment throughout the organisation to enhance
performance, collaboration, and innovation. At the
end of Q1/2024, the share of female managers was
25%, in line with the target set for end of 2024..
Similarly, the share of female representation among
all employees was 25%, and 30% within the Group
Leadership Team.
Lower production volumes have an adverse impact
on water performance per saleable tonne due to the
need to maintain a steady water flow at the water
treatment plants. While water is relatively abundant
at the Group's production sites, water stress may still
impact operations locally and through wider supply
chains. Stora Enso uses the WRI Aqueduct Water Risk
Atlas to assess water-related risks, with six production
units situated in regions with High Baseline Water
Stress. Approximately 96% of water is recycled back
into the environment while only 4% is consumed in
production processes.
Stora Enso continuously works to maintain a high
coverage rate for the Supplier Code of Conduct,
outlining common requirements for all suppliers.
During the first quarter, the coverage rate remained
on target level.
Sustainability
Stora Enso January–March results 2024 18 (39)
===== SIDA 20 =====
ESG ratings and recognitions
ESG rating Stora Enso score / best possible score Rating compared to peers
CDP
Climate A-/A
Forest A/A
Water A-/A
Among the highest ranked in the industry
FTSE Russell 4.4/5 Among the highest ranked in the industry
ISS Corporate Rating B/A+ Among the highest ranked in the industry
ISS QualityScore
Governance 7/1*
Social 1/1*
Environment 2/1*
Above the industry average
MSCI AAA/AAA Among the highest ranked in the industry
Sustainalytics 14.4/0** Among the highest ranked in the industry
VigeoEiris 71/100 Among the highest ranked in the industry
*1 to 10 (1 indicating the best possible score) **0 to 100 (0 indicating the lowest risk)
Short-term risks
Risk is characterised by both threats and
opportunities, which may affect future performance
and the financial results of Stora Enso, reputation, as
well as its ability to meet certain social and
environmental objectives.
The geopolitical unrest could have an adverse
impact on the Group. Retaliatory measures, conflict-
related risks to people, operations, trade credit, cyber
security, supply, and demand, could also affect the
Group negatively.
The risk of a prolonged global economic downturn
and recession, continued high inflation, as well as
sudden interest rate increases, currency fluctuations,
trade union and political strike actions, and logistical
chain disruptions could all adversely affect the
Group’s profits, cash flow and financial position, as
well as access to material, flow of goods and
transport.
The challenging and rapidly changing
macroeconomic and geopolitical disruption may
increase cost, add complexity and lower short-term
visibility. A slow market recovery might further impact
market demand, prices, profit margin and volumes of
the Group's products. New capacity and volume
entering the market might distort demand, volumes,
inventories and pricing, with the risk of a deepening
margin squeeze. Moreover, forced capacity cuts
might further impact on profitability.
There is a risk of continued high inflationary
environment with high interest rates along with
increased price volatility for raw materials such as
wood, chemicals, other components and energy in
Europe. The continued tight wood market could cause
increased costs, limit harvesting and cause
disruptions such as delays and/or lack of wood
supply to the Group's production sites. Regulatory or
similar initiatives might challenge the Group's
strategy, growth and operations.
Other risks and uncertainties include, but are not
limited to; general industry conditions, unanticipated
expenditures related to the cost of compliance with
existing and new environmental and other
governmental regulations, and related to actual or
potential litigation; material process disruption at
Stora Enso's manufacturing facilities with operational
or environmental impacts; risks inherent in
conducting business through joint ventures; and
other factors.
Stora Enso has been granted various investment
subsidies and compensations, and has given certain
investment commitments in several countries e.g.,
Finland, China and Sweden. If commitments to
planning conditions are not met, local officials may
pursue administrative measures to reclaim some of
the formerly granted investment subsidies or to
impose penalties on Stora Enso, the outcome of such
a process could result in adverse financial impact on
Stora Enso.
A more detailed risk description is included in Stora
Enso’s Annual Report 2023, available at
storaenso.com/annualreport.
Sensitivity analysis
Energy sensitivity analysis: the direct effect of a 10%
change in electricity and fossil fuel market prices
would have an impact of approximately EUR 6 million
on adjusted EBIT for the next 12 months.
Wood sensitivity analysis: the direct effect of a 10%
change in wood prices would have an impact of
approximately EUR 212 million on adjusted EBIT for the
next 12 months.
Pulp sensitivity analysis: the direct effect of a 10%
change in pulp market prices would have an impact
of approximately EUR 135 million on adjusted EBIT for
the next 12 months.
Sustainability
Stora Enso January–March results 2024 19 (39)
===== SIDA 21 =====
Chemical and filler sensitivity analysis: the direct
effect of a 10% change in chemical and filler prices
would have an impact of approximately EUR 40 million
on adjusted EBIT for the next 12 months.
Foreign exchange rates transaction risk sensitivity
analysis for the next twelve months: the direct effect
on adjusted EBIT of a 10% strengthening in the value of
the US dollar, Swedish krona and British pound would
be approximately positive EUR 91 million, negative EUR
8 million and positive EUR 11 million annual impact,
respectively. Weakening of the currencies would have
the opposite impact. These numbers are net of
hedges and assuming no changes occur other than a
single currency exchange rate movement in an
exposure currency.
The Group's consolidated income statement on
adjusted EBIT level is exposed to a foreign-currency
translation risk worth approximately EUR 179 million
expense exposure in Brazilian real (BRL) and
approximately EUR 67 million income exposure in
Chinese Renminbi (CNY). These exposures arise from
the foreign subsidiaries and joint operations located
in Brazil and China, respectively. For these exposures a
10% strengthening in the value of a foreign currency
would have a negative EUR 18 million and a positive
EUR 7 million impact on adjusted EBIT, respectively.
Legal proceedings
Contingent liabilities
Stora Enso has undertaken significant restructuring
actions in recent years which have included the
divestment of companies, sale of assets and mill
closures. These transactions include a risk of possible
environmental or other obligations the existence of
which would be confirmed only by the occurrence or
non-occurrence of one or more uncertain future
events not wholly within the control of the Group. A
provision has been recognised for obligations for
which the related amount can be estimated reliably
and for which the related future cost is considered to
be at least probable.
Stora Enso is party to legal proceedings that arise in
the ordinary course of business and which primarily
involve claims arising out of commercial law. The
management does not consider that liabilities related
to such proceedings before insurance recoveries, if
any, are likely to be material to the Group’s financial
condition or results of operations.
Veracel
On 11 July 2008, Stora Enso announced that a federal
judge in Brazil had issued a decision claiming that the
permits issued by the State of Bahia for the
operations of Stora Enso’s joint operations company
Veracel were not valid. The judge also ordered
Veracel to take certain actions, including
reforestation with native trees on part of Veracel’s
plantations and a possible fine of, at the time of the
decision, BRL 20 (EUR 4) million. Veracel disputes the
decision and has filed an appeal against it. Veracel
operates in full compliance with all Brazilian laws and
has obtained all the necessary environmental and
operating licences for its industrial and forestry
activities from the relevant authorities. In November
2008, a Federal Court suspended the effects of the
decision. No provisions have been recorded in
Veracel’s or Stora Enso’s accounts for the
reforestation or the possible fine.
Changes in Group management
Tuomas Hallenberg was appointed Executive Vice
President of the Forest division and a member of the
Group Leadership Team. He will join Stora Enso during
the fourth quarter of 2024 and report to President and
CEO of Stora Enso, Hans Sohlström. In this role,
Hallenberg will succeed Per Lyrvall who will retire at
the end of the first quarter 2025.
Resolutions by the Annual General Meeting
Stora Enso Oyj’s Annual General Meeting was held on
20 March 2024 in Helsinki, Finland. The AGM adopted
the accounts for 2023, adopted the remuneration
report for 2023 through an advisory resolution and
granted the Company’s Board of Directors and Chief
Executive Officer discharge from liability for the
period.
The AGM resolved, in accordance with the proposal
by the Board of Directors, that the Company shall
distribute a dividend of EUR 0.10 per share for the year
2023. The dividend was paid on 4 April 2024. In
addition, the AGM resolved that the Board of Directors
is authorised to decide at its discretion on the
payment of an additional dividend up to a maximum
of EUR 0.20 per share. The authorisation is valid until 31
December 2024.
The AGM resolved, in accordance with the proposal
by the Shareholders’ Nomination Board, that the
Board of Directors shall have eight (8) members. The
AGM further resolved to re-elect the current members
of the Board of Directors – Håkan Buskhe, Elisabeth
Fleuriot, Helena Hedblom, Astrid Hermann, Kari Jordan,
Christiane Kuehne, and Richard Nilsson – as members
of the Board of Directors until the end of the following
Events
Stora Enso January–March results 2024 20 (39)
===== SIDA 22 =====
AGM and to elect Reima Rytsölä as a new member of
the Board of Directors for the same term of office. The
AGM resolved to elect Kari Jordan as Chair of the
Board of Directors and Håkan Buskhe as Vice Chair of
the Board of Directors.
The AGM resolved, in accordance with the proposal
by the Shareholders' Nomination Board, that the
annual remuneration for the Board of Directors be
paid as follows:
Chair EUR 215,270 (2023: 209,000)
Vice Chair EUR 121,540 (2023: 118,000)
Members EUR 83,430 (2023: 81,000)
The AGM also resolved that the annual remuneration
for the members of the Board of Directors be paid in
Company shares and cash so that 40% is paid in
Stora Enso R shares.
The AGM resolved the annual remuneration for the
Board committees in accordance with the proposal
by the Shareholders’ Nomination Board.
The AGM resolved to elect PricewaterhouseCoopers
Oy as auditor until the end of the Company's next
AGM. PricewaterhouseCoopers Oy has notified the
Company that Samuli Perälä, APA, will act as the
principally responsible auditor.
PricewaterhouseCoopers Oy will also act as the
sustainability reporting assurance provider of the
Company until the end of the Company’s next AGM.
Resolutions by the organising meeting of the Board
of Directors
Richard Nilsson (Chair), Elisabeth Fleuriot and Astrid
Hermann were elected members of the Financial and
Audit Committee.
Kari Jordan (Chair), Håkan Buskhe and Reima Rytsölä
were elected members of the People and Culture
Committee.Christiane Kuehne (Chair), Helena
Hedblom and Richard Nilsson were elected members
of the Sustainability and Ethics Committee.
More information about the AGM in 2024 is available
in the release Stora Enso’s Annual General Meeting
and decisions by the Board of Directors.
This report has been prepared in English and Finnish. If there are any variations in the content between the versions,
the English version shall govern. This report is unaudited.
Helsinki, 25 April 2024
Stora Enso Oyj
Board of Directors
Events
Stora Enso January–March results 2024 21 (39)
===== SIDA 23 =====
Financials
Basis of Preparation
This unaudited interim financial report has been
prepared in accordance with the accounting policies
set out in International Accounting Standard 34 on
Interim Financial Reporting and in the Group’s
Financial Report for 2023 with the exception of new
and amended standards applied to the annual
periods beginning on 1 January 2024 and changes in
accounting principles described below.
All figures in this Interim Report have been rounded to
the nearest million, unless otherwise stated. Therefore,
percentages and figures in this report may not add
up precisely to the totals presented and may vary
from previously published financial information.
Acquisition of Group companies
In March 2024 Stora Enso’s 50% owned joint operation
MdP (Montes del Plata, Uruguay) completed
transaction to acquire forest assets and related
forestry business in Uruguay. Stora Enso's share of the
transaction includes approximately 16.3 thousand
hectares of land, of which about 9.8 thousand
hectares are productive land. The acquired units are
fully owned and reported in Biomaterials division.
The acquired forest land and operations are located
in different regions in Uruguay. The acquired
operations mainly include forestry plantations to
supply wood for pulp production.
Stora Enso's share of the preliminary cash purchase
consideration was EUR 76 million and the final
purchase price is subject to customary purchase
price adjustments. The related transaction costs were
not considered to be significant.
The fair values of the identifiable assets and liabilities
as of the acquisition date consisted mainly of forest
assets (Stora Enso's share EUR 73 million). The amount
of goodwill and other items were not significant.
The fair values of the acquired assets, liabilities and
goodwill as at acquisition date have been
determined on a provisional basis pending
finalisation of the post-combination review of the fair
values. If new information obtained within one year of
the date of acquisition about facts and
circumstances that existed at the date of acquisition
or any other adjustment items are identified, the
above amounts are adjusted accordingly and the
accounting for the acquisition will be adjusted.
The acquisition is not considered to have significant
impact on Stora Enso Group’s sales or net profit.
Assets held for sale
As announced in December 2022, Stora Enso has
initiated a sales process for divesting its consumer
board production site and forestry operations in
Guangxi, China.
Assets are classified as held for sale, if their carrying
amounts will be recovered mainly through a sale
transaction rather than through continuing use. The
assets must be available for immediate sale in their
present condition subject only to terms that are usual
and customary for the sale of such assets. In addition,
the sale must be highly probable and expected to be
completed within one year after the date of
classification.
These assets and related liabilities are presented
separately in the consolidated statement of financial
position and are measured at the lower of the
carrying amount and fair value less costs to sell.
Comparative information is not restated. Assets
classified as held for sale are not depreciated.
In accordance with the progress in the ongoing
divestment process, the Guangxi operations have
been classified as held for sale since Q4/2023. Assets
held for sale include mainly fixed assets, forest assets,
inventories and operating receivables, whereas
related liabilities consist mainly of non-current and
current interest bearing liabilities and operating
liabilities.
The following new and amended
standards are applied to the annual
periods beginning on 1 January 2024
• Amended standards and interpretations did not
have material effect on the Group.
Future standard changes endorsed by
the EU but not yet effective in 2024
• No future standard changes endorsed by the EU
which would have material effect on the Group.
Financials
Stora Enso January–March results 2024 22 (39)
===== SIDA 24 =====
Condensed consolidated income statement
EUR million Q1/24 Q1/23 Q4/23 2023
Sales 2,164 2,721 2,174 9,396
Other operating income 114 147 81 378
Change in inventories of finished goods and WIP 16 22 -83 -209
Materials and services -1,413 -1,739 -1,431 -6,133
Freight and sales commissions -203 -259 -198 -883
Personnel expenses -302 -328 -319 -1,275
Other operating expenses -130 -161 -104 -638
Share of results of associated companies 12 11 82 136
Change in net value of biological assets 8 0 204 209
Depreciation, amortisation and impairment charges -118 -156 -733 -1,303
Operating result 148 258 -326 -322
Net financial items -47 -29 -52 -173
Result before tax 101 228 -378 -495
Income tax -17 -43 53 64
Net result for the period 84 185 -325 -431
Attributable to
Owners of the Parent 85 189 -287 -357
Non-controlling interests -1 -4 -38 -74
Net result for the period 84 185 -325 -431
Earnings per share
Basic earnings per share, EUR 0.11 0.24 -0.36 -0.45
Diluted earnings per share, EUR 0.11 0.24 -0.36 -0.45
Consolidated statement of comprehensive income
EUR million Q1/24 Q1/23 Q4/23 2023
Net result for the period 84 185 -325 -431
Other comprehensive income (OCI)
Items that will not be reclassified to profit and loss
Equity instruments at fair value through OCI -59 -469 171 -645
Actuarial gains and losses on defined benefit plans 20 3 -72 -52
Revaluation of forest land 0 0 -67 -49
Share of OCI of associated companies 0 0 -24 -23
Income tax relating to items that will not be reclassified -4 -8 28 22
-43 -474 36 -748
Items that may be reclassified subsequently to profit and
loss
Cumulative translation adjustment (CTA) -139 -66 134 56
Net investment hedges and loans -3 -1 2 -15
Cash flow hedges and cost of hedging -38 -9 41 -1
Share of OCI of Non-controlling Interests (NCI) -1 0 2 5
Income tax relating to items that may be reclassified 9 1 -10 -1
-172 -75 170 44
Total comprehensive income -131 -364 -120 -1,135
Attributable to
Owners of the parent -129 -360 -84 -1,066
Non-controlling interests -1 -4 -36 -69
Total comprehensive income -131 -364 -120 -1,135
CTA = Cumulative translation adjustment
OCI = Other comprehensive income
Financials
Stora Enso January–March results 2024 23 (39)
===== SIDA 25 =====
Condensed consolidated statement of financial position
EUR million 31 Mar 2024 31 Dec 2023 31 Mar 2023
Assets
Goodwill O 505 505 557
Other intangible assets O 290 283 327
Property, plant and equipment O 4,630 4,544 5,054
Right-of-use assets O 314 323 569
5,739 5,656 6,507
Forest assets O 6,800 6,921 6,775
Biological assets O 4,551 4,652 4,492
Forest land O 2,249 2,269 2,282
Emission rights O 171 108 239
Investments in associated companies O 923 926 820
Listed securities I 10 9 6
Unlisted securities O 749 810 972
Non-current interest-bearing receivables I 76 76 112
Deferred tax assets T 142 134 67
Other non-current assets O 57 58 36
Non-current assets 14,667 14,699 15,533
Inventories O 1,478 1,466 1,903
Tax receivables T 30 31 32
Operating receivables O 1,139 1,191 1,463
Interest-bearing receivables I 40 64 68
Cash and cash equivalents I 2,099 2,464 1,257
Current assets 4,786 5,216 4,723
Assets held for sale 852 839 33
Total assets 20,305 20,754 20,288
Equity and liabilities
Owners of the Parent 10,771 10,985 11,688
Non-controlling Interests -98 -97 -31
Total equity 10,673 10,889 11,656
Post-employment benefit obligations O 192 217 153
Provisions O 79 83 83
Deferred tax liabilities T 1,379 1,433 1,499
Non-current interest-bearing liabilities I 4,310 4,446 2,864
Non-current operating liabilities O 10 11 11
Non-current liabilities 5,970 6,190 4,611
Current portion of non-current debt I 248 286 917
Interest-bearing liabilities I 623 476 559
Bank overdrafts I 3 0 19
Provisions O 72 85 34
Operating liabilities O 2,025 2,112 2,389
Tax liabilities T 28 45 84
Current liabilities 2,999 3,004 4,001
Liabilities related to assets held for sale 663 671 20
Total liabilities 9,632 9,865 8,632
Total equity and liabilities 20,305 20,754 20,288
Items designated with “O” comprise Operating Capital
Items designated with “I” comprise Net debt
Items designated with “T” comprise Net Tax Liabilities
Financials
Stora Enso January–March results 2024 24 (39)
===== SIDA 26 =====
Condensed consolidated statement of cash flows
EUR million Q1/24 Q1/23
Cash flow from operating activities
Operating result 148 258
Adjustments for non-cash items 110 116
Change in net working capital 10 -120
Cash flow from operations 269 254
Net financial items paid -23 -24
Income taxes paid, net -41 -40
Net cash provided by operating activities 206 190
Cash flow from investing activities
Acquisition of subsidiary shares and business operations, net of acquired cash -74 -585
Acquisitions of unlisted securities 0 -1
Cash flow on disposal of subsidiary shares and business operations, net of disposed cash 0 236
Cash flow on disposal of forest and intangible assets and property, plant and equipment 1 35
Capital expenditure -373 -253
Proceeds from/payment of non-current receivables, net -1 -24
Net cash used in investing activities -447 -593
Cash flow from financing activities
Proceeds from issue of new long-term debt 0 210
Repayment of long-term debt and lease liabilities -153 -167
Change in short-term interest-bearing liabilities 30 78
Dividends paid 0 -399
Purchase of own shares
1
-3 -6
Net cash provided by financing activities -127 -284
Net change in cash and cash equivalents -368 -687
Translation adjustment 0 7
Net cash and cash equivalents at the beginning of period 2,464 1,917
Net cash and cash equivalents at period end 2,096 1,238
Cash and cash equivalents at period end 2,099 1,257
Bank overdrafts at period end -3 -19
Net cash and cash equivalents at period end 2,096 1,238
1
Own shares purchased for the Group’s share award programme. The Group did not hold any of its own shares on 31 March 2024.
Financials
Stora Enso January–March results 2024 25 (39)
===== SIDA 27 =====
Statement of changes in equity
Fair value reserve
EUR million
Share
capital
Share
premium
and
reserve
fund
Invested
non-
restricted
equity
fund
Treasury
shares
Equity
instruments
through OCI
Cash
flow
hedges
Revaluation
reserve
OCI of
associated
companies
CTA and
net
investment
hedges
and loans
Retained
earnings
Attributable
to owners of
the parent
Non-
controlling
interests Total
Balance at 1 January 2023 1,342 77 633 — 1,298 39 1,579 87 -415 7,893 12,532 -30 12,502
Net result for the period — — — — — — — — — 189 189 -4 185
OCI before tax — — — — -469 -9 0 — -67 3 -543 0 -542
Income tax relating to OCI — — — — — 2 0 — -1 -9 -7 — -7
Total comprehensive income — — — — -468 -7 0 — -68 183 -360 -4 -364
Dividend — — — — — — — — — -473 -473 — -473
Acquisitions and disposals — — — — — — — — — — — 2 2
Purchase of treasury shares — — — -6 — — — — — — -6 — -6
Share-based payments — — — 6 — — — — — -11 -5 — -5
Balance at 31 March 2023 1,342 77 633 — 830 32 1,578 87 -484 7,592 11,688 -31 11,656
Net result for the period — — — — — — — — — -547 -547 -70 -616
OCI before tax — — — — -176 8 -49 -23 108 -55 -187 4 -183
Income tax relating to OCI — — — — -1 -2 10 — 1 21 29 — 29
Total Comprehensive Income — — — — -177 6 -39 -23 109 -581 -705 -65 -771
Dividend — — — — — — — — — — — — —
Acquisitions and disposals — — — — — — — — — — — 0 —
Purchase of treasury shares — — — — — — — — — — — — —
Share-based payments — — — — — — — — — 3 3 — 3
Balance at 31 December 2023 1,342 77 633 — 653 38 1,540 63 -375 7,015 10,985 -97 10,889
Net result for the period — — — — — — — — — 85 85 -1 84
OCI before tax — — — — -59 -38 — — -142 20 -219 -1 -220
Income tax relating to OCI — — — — 0 8 — — 1 -4 5 — 5
Total comprehensive income — — — — -59 -30 — — -141 101 -129 -1 -131
Dividend — — — — — — — — — -79 -79 — -79
Acquisitions and disposals — — — — — — — — — — — — —
Purchase of treasury shares — — — -3 — — — — — — -3 — -3
Share-based payments — — — 3 — — — — — -6 -3 — -3
Balance at 31 March 2024 1,342 77 633 — 593 8 1,540 63 -516 7,031 10,771 -98 10,673
CTA = Cumulative Translation Adjustment OCI = Other Comprehensive Income NCI = Non-controlling Interests
Financials
Stora Enso January-March results 2024 26 (39)
===== SIDA 28 =====
Goodwill, other intangible assets, property, plant and equipment, right-of-use assets and forest assets
EUR million Q1/24 Q1/23 2023
Carrying value at 1 January 12,577 12,489 12,489
Additions in tangible and intangible assets 207 137 946
Additions in right-of-use assets 3 77 108
Additions in biological assets 16 15 71
Depletion of capitalised silviculture costs -18 -22 -81
Acquisition of subsidiaries 75 862 859
Disposals and classification as held for sale
1
5 -6 -727
Depreciation and impairment -118 -156 -1,303
Fair valuation of forest assets 27 21 241
Translation difference and other -234 -136 -27
Statement of Financial Position Total 12,539 13,282 12,577
1
Including company disposals.
Borrowings
EUR million 31 Mar 2024 31 Mar 2023 31 Dec 2023
Bond loans 3,436 2,446 3,601
Loans from credit institutions 793 802 794
Lease liabilities 325 528 334
Long-term derivative financial liabilities 2 1 1
Other non-current liabilities 2 5 2
Non-current interest-bearing liabilities including current portion 4,558 3,781 4,733
Short-term borrowings 536 485 418
Interest payable 69 37 52
Short-term derivative financial liabilities 18 37 6
Bank overdrafts 3 19 0
Total Interest-bearing Liabilities 5,184 4,359 5,209
EUR million Q1/24 Q1/23 2023
Carrying value at 1 January 5,209 3,972 3,972
Additions in long-term debt, companies acquired 0 133 131
Proceeds of new long-term debt 0 210 2,006
Repayment of long-term debt -140 -156 -619
Additions in lease liabilities, companies acquired 0 99 99
Additions in lease liabilities 3 77 109
Repayment of lease liabilities and interest -17 -17 -87
Change in short-term borrowings 104 63 177
Change in interest payable 21 7 40
Change in derivative financial liabilities 12 -12 -41
Disposals and classification as held for sale 12 1 -575
Other 5 15 26
Translation differences -24 -32 -29
Total Interest-bearing Liabilities 5,184 4,359 5,209
Financials
Stora Enso January–March results 2024 27 (39)
===== SIDA 29 =====
Commitments and contingencies
EUR million 31 Mar 2024 31 Dec 2023 31 Mar 2023
On Own Behalf
Guarantees 18 18 18
Other commitments 4 6 4
On Behalf of associated companies
Guarantees 4 5 5
On Behalf of Others
Guarantees 16 16 6
Other commitments 0 0 36
Total 42 44 68
Guarantees 37 38 28
Other commitments 4 6 40
Total 42 44 68
The Group announced its intention in December 2022 to divest its consumer board production and forest
operations sites in Beihai, China. As previously disclosed, Stora Enso has been granted investment subsidies and has
given certain investment commitments in China. There is a risk that the majority owned local Chinese company
may be subject to a claim based on alleged costs resulting from certain uncompleted investment commitments.
Given the specific mitigating circumstances surrounding the investment case as a whole, Stora Enso does not
consider it to be probable that this situation would result in an outflow of economic benefits that would be material
to the Group. The Company continues to monitor the situation as the divestment process proceeds.
Capital commitments
EUR million 31 Mar 2024 31 Dec 2023 31 Mar 2023
Total 556 683 751
The Group’s direct capital expenditure contracts include the Group’s share of direct capital expenditure contracts in
joint operations.
Key exchange rates for the euro
One Euro is Closing Rate Average Rate (Year-to-date)
31 Mar 2024 31 Dec 2023 31 Mar 2024 31 Dec 2023
SEK 11.5250 11.0960 11.2796 11.4728
USD 1.0811 1.1050 1.0857 1.0816
GBP 0.8551 0.8691 0.8562 0.8699
Fair Values of Financial Instruments
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
• Level 2: other techniques, for which all inputs that have a significant effect on the recorded fair value are
observable, either directly or indirectly;
• Level 3: techniques which use inputs that have a significant effect on the recorded fair values that are not
based on observable market data.
The valuation techniques are described in more detail in the Group’s Financial Report. The instruments carried at
fair value in the following tables are measured at fair value on a recurring basis.
Financials
Stora Enso January–March results 2024 28 (39)
===== SIDA 30 =====
Carrying amounts of financial assets and liabilities by measurement and fair value categories: 31 March 2024
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial assets
Listed securities — 10 — 10 10 10 — —
Unlisted securities — 734 15 749 749 — — 749
Non-current interest-bearing receivables 62 15 — 76 76 — 15 —
Derivative assets — 15 — 15 15 — 15 —
Loan receivables 62 — — 62 62 — — —
Trade and other operating receivables 758 35 — 792 792 — 35 —
Current interest-bearing receivables 22 12 6 40 40 — 18 —
Derivative assets — 12 6 18 18 — 18 —
Other short-term receivables 22 — — 22 22 — — —
Cash and cash equivalents 2,099 — — 2,099 2,099 — — —
Total 2,940 805 21 3,766 3,766 10 67 749
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial liabilities
Non-current interest-bearing liabilities 4,308 2 — 4,310 4,821 — 2 —
Derivative liabilities — 2 — 2 2 — 2 —
Non-current debt 4,308 — — 4,308 4,819 — — —
Current portion of non-current debt 248 — — 248 248 — — —
Current interest-bearing liabilities 605 16 2 623 623 — 18 —
Derivative liabilities — 16 2 18 18 — 18 —
Current debt 605 — — 605 605 — — —
Trade and other operating payables 1,662 — — 1,662 1,662 — — —
Bank overdrafts 3 — — 3 3 — — —
Total 6,826 17 2 6,846 7,357 — 20 —
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities
the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective
portion.
Financials
Stora Enso January–March results 2024 29 (39)
===== SIDA 31 =====
Carrying amounts of financial assets and liabilities by measurement and fair value categories: 31 December
2023
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial assets
Listed securities — 9 — 9 9 9 — —
Unlisted securities — 794 15 810 810 — — 810
Non-current interest-bearing receivables 62 14 — 76 76 — 15 —
Derivative assets — 14 — 15 15 — 15 —
Loan receivables 62 — — 62 62 — — —
Trade and other operating receivables 835 30 — 865 865 — 30 —
Current interest-bearing receivables 21 39 4 64 64 — 43 —
Derivative assets — 39 4 43 43 — 43 —
Other short-term receivables 21 — — 21 21 — — —
Cash and cash equivalents 2,464 — — 2,464 2,464 — — —
Total 3,382 887 19 4,288 4,288 9 87 810
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial liabilities
Non-current interest-bearing liabilities 4,445 1 — 4,446 5,071 — 1 —
Derivative liabilities — 1 — 1 1 — 1 —
Non-current debt 4,445 — — 4,445 5,069 — — —
Current portion of non-current debt 286 — — 286 286 — — —
Current interest-bearing liabilities 469 4 2 476 476 — 6 —
Derivative liabilities — 4 2 6 6 — 6 —
Current debt 469 — — 469 469 — — —
Trade and other operating payables 1,806 — — 1,806 1,806 — — —
Bank overdrafts — — — — — — — —
Total 7,006 6 2 7,014 7,639 — 8 —
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities
the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective
portion.
Reconciliation of level 3 fair value measurement of financial assets and liabilities: 31 March 2024
EUR million Q1/24 2023 Q1/23
Financial assets
Opening balance at 1 January 810 1,437 1,437
Gains/losses recognised in income statement -1 0 0
Gains/losses recognised in other comprehensive income -60 -646 -466
Additions 0 18 1
Closing balance 749 810 972
The Group did not have level 3 financial liabilities as at 31 March 2024.
Level 3 Financial Assets
At period end, Level 3 financial assets included EUR 718 million of Pohjolan Voima Oy (PVO) shares for which the
valuation method is described in more detail in the Annual Report. The valuation decreased by EUR 60 million versus
December 2023, mainly due to lower electricity market prices. The valuation is most sensitive to changes in
electricity prices and discount rates. The discount rate of 6.70% used in the valuation model is determined using the
weighted average cost of capital method. A +/- 5% change in the electricity price used in the DCF would change the
valuation by EUR +85 million and -85 million, respectively. A +/- percentage point change in the discount rate would
change the valuation by EUR -140 million and +186 million, respectively.
Financials
Stora Enso January–March results 2024 30 (39)
===== SIDA 32 =====
Stora Enso shares
During the first quarter of 2024, the conversions of
144,087 A shares into R shares were recorded in the
Finnish trade register.
On 31 March 2024, Stora Enso had 176,086,829 A shares
and 612,533,158 R shares in issue. The company did not
hold its own shares. The total number of Stora Enso
shares in issue was 788,619,987 and the total number
votes at least 237,340,144.
On 15 April 2024, the conversion of 107,215 A shares into
R shares was recorded in the Finnish trade register.
Trading volume
Helsinki Stockholm
A share R share A share R share
January 73,585 38,489,451 56,376 4,931,459
February 81,323 39,091,234 63,137 4,807,662
March 150,456 35,814,114 85,055 5,057,671
Total 305,364 113,394,799 204,568 14,796,792
Closing price
Helsinki, EUR Stockholm, SEK
A share R share A share R share
January 11.70 11.82 132.60 132.70
February 11.75 11.68 128.60 130.60
March 12.95 12.89 147.60 148.30
Number of shares
Million Q1/24 Q1/23 Q4/23 2023
At period end 788.6 788.6 788.6 788.6
Average 788.6 788.6 788.6 788.6
Average, diluted 789.7 789.8 789.9 789.7
Sales
Sales by segment – total
EUR million Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 1,100 4,557 1,045 1,057 1,155 1,300
Packaging Solutions 224 1,077 247 266 288 276
Biomaterials 374 1,587 375 345 379 488
Wood Products 349 1,580 341 349 436 454
Forest 659 2,490 650 534 620 687
Other 57 964 207 179 213 364
Inter-segment sales -599 -2,859 -691 -603 -717 -848
Total 2,164 9,396 2,174 2,127 2,374 2,721
Sales by segment – external
EUR million Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 1,033 4,362 1,006 1,012 1,103 1,242
Packaging Solutions 221 1,066 244 264 285 273
Biomaterials 298 1,363 322 297 321 423
Wood Products 315 1,453 313 322 400 416
Forest 278 989 266 218 246 258
Other 20 162 22 14 18 108
Total 2,164 9,396 2,174 2,127 2,374 2,721
Disaggregation of revenue
EUR million Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Product sales 2,154 9,317 2,153 2,109 2,348 2,707
Service sales 10 79 21 18 25 15
Total 2,164 9,396 2,174 2,127 2,374 2,721
Financials
Stora Enso January–March results 2024 31 (39)
===== SIDA 33 =====
Alternative performance measures
Definitions and purpose for alternative performance measures can be found at the end of this section.
Changes in alternative performance measures
From 1 January 2024 onwards, a slight change in
terminology is applied with regards to certain key
alternative performance measures as detailed in the
table below:
Name until 31 Dec 2023 New name from 1 Jan 2024
Operational EBIT Adjusted EBIT
Operational EBIT margin Adjusted EBIT margin
Operational EBITDA Adjusted EBITDA
Operational EBITDA margin Adjusted EBITDA margin
Net debt to LTM operational
EBITDA
Net debt to LTM adjusted
EBITDA
Operational return on capital
employed (op. ROCE)
Adjusted Return on capital
employed (Adj. ROCE)
Operational ROCE excl. Forest
division
Adjusted ROCE excl. Forest
division
Operational return on
operating capital (op. ROOC)
Adjusted Return on operating
capital (Adj. ROOC)
In addition, the Company specifies that in order for
the qualifying cases to be considered as items
affecting comparability, a materiality threshold will be
applied of at least EUR 4 million for Packaging
Materials, EUR 2 million for Biomaterials, and EUR 1
million for the rest of the divisions including the
segment Other. No restatements were prepared for
the alternative performance measures as this
change will not have a significant impact on the
comparative figures.
Reconciliation of operating result
EUR million Q1/24 Q1/23
Change %
Q1/24–
Q1/23
Q4/23
Change %
Q1/24–
Q4/23
2023
Adjusted EBITDA 298 399 -25.3 % 212 40.3 % 989
Depreciation and silviculture costs of
associated companies -1 -2 32.9 % -4 65.7 % -11
Silviculture costs
1
-22 -27 16.4 % -24 8.7 % -102
Depreciation and impairment excl. IAC -118 -136 13.5 % -133 11.8 % -534
Adjusted EBIT 156 234 -33.1 % 51 209.7 % 342
Fair valuations and non-operational
items 11 11 1.7 % 229 -95.0 % 231
Items affecting comparability (IAC) -20 12 -259.4 % -605 96.8 % -895
Operating result (IFRS) 148 258 -42.4 % -326 145.5 % -322
1
Including damages to forests
Adjusted EBIT by segment
EUR million Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 60 -57 -43 -34 -22 41
Packaging Solutions -1 43 6 14 15 8
Biomaterials 57 118 35 5 -13 91
Wood Products -9 -64 -27 -21 -6 -11
Forest 70 253 75 59 62 57
Other -11 1 -1 -15 -9 27
Inter-segment eliminations -10 49 5 13 9 21
Adjusted EBIT 156 342 51 21 37 234
Fair valuations and non-operational
items 11 231 229 5 -14 11
Items affecting comparability -20 -895 -605 -26 -276 12
Operating result (IFRS) 148 -322 -326 -1 -253 258
Net financial items -47 -173 -52 -40 -51 -29
Result before Tax 101 -495 -378 -41 -304 228
Income tax expense -17 64 53 7 47 -43
Net result 84 -431 -325 -34 -257 185
Financials
Stora Enso January–March results 2024 32 (39)
===== SIDA 34 =====
Items affecting comparability (IAC), fair valuations and non-operational items (FV)
Items affecting comparability in Q1/2024
EUR million Q1/24
Restructuring - Packaging Materials -2
Restructuring - Packaging Solutions -3
Restructuring - Biomaterials -1
Restructuring - Forest -2
Restructuring - Group functions and
segment Other -9
Other items -2
Total -20
Items affecting comparability in Q1/2023
EUR million Q1/23
Disposal of Nymölla -29
Disposal of Maxau 49
Acquisition of De Jong Packaging Group -16
Restructuring (2021 announced) - Kvarnsveden 22
Restructuring (2021 announced) - Veitsiluoto 5
Restructuring - Anjala -19
Restructuring - Packaging Solutions -5
Updates in environmental provisions (mainly
closed Finnish sites) 6
Other items 0
Total 13
Fair valuations and non-operational items
EUR million Q1/24 Q1/23
Non-operational fair valuation changes of biological assets, Packaging Materials -1 0
Non-operational fair valuation changes of biological assets, Biomaterials 1 -1
Non-cash income and expenses related to CO2 emission rights and liabilities, Other 17 21
Non-operational items of associated companies, Forest -6 -5
Adjustments for differences between fair value and acquisition cost of forest assets upon disposal, Forest 0 -5
Total 11 11
Items affecting comparability (IAC) by segment
EUR million Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials -4 -597 -474 -4 -98 -21
Packaging Solutions -3 -26 -1 0 -5 -20
Biomaterials -1 -224 -105 -17 -101 0
Wood Products 0 -22 -13 -1 -8 0
Forest -2 2 4 3 -2 -3
Other -10 -28 -16 -6 -61 56
IAC on operating result -20 -895 -605 -26 -276 12
Tax on IAC 4 100 53 6 43 -3
IAC on net result -16 -795 -552 -20 -233 10
Fair valuations and non-operational items by segment
EUR million Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials -1 12 12 0 0 0
Packaging Solutions 0 0 0 0 0 0
Biomaterials 1 25 24 -3 5 -1
Wood Products 0 0 0 0 0 0
Forest -6 206 221 -5 0 -9
Other 17 -13 -28 12 -19 21
FV on operating result 11 231 229 5 -14 11
Tax on FV -1 -25 -24 -1 4 -3
FV on net result 11 206 205 3 -10 8
Results
Stora Enso January–March results 2024 33 (39)
===== SIDA 35 =====
Operating result by segment
EUR million Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 55 -642 -504 -38 -120 21
Packaging Solutions -4 17 5 14 10 -12
Biomaterials 58 -81 -46 -15 -109 90
Wood Products -10 -86 -40 -22 -14 -11
Forest 63 461 300 57 60 44
Other -4 -41 -46 -10 -89 104
Inter-segment eliminations -10 49 5 13 9 21
Operating result (IFRS) 148 -322 -326 -1 -253 258
Net financial items -47 -173 -52 -40 -51 -29
Result before tax 101 -495 -378 -41 -304 228
Income tax expense -17 64 53 7 47 -43
Net result 84 -431 -325 -34 -257 185
Calculation of adjusted return on capital employed (ROCE) and return on equity (ROE) based on the last 12
months
EUR million Q1/24 Q1/23 Q4/23
Adjusted EBIT, LTM 265 1,622 342
Capital employed, LTM average 14,197 14,114 14,230
Adjusted ROCE, LTM 1.9% 11.5% 2.4%
Adjusted EBIT excl. Forest division, LTM -2 1,410 89
Capital employed excl. Forest division, LTM average 8,415 8,552 8,490
Adjusted ROCE excl. Forest division, LTM 0.0% 16.5% 1.0%
Net result for the period, LTM -532 1,435 -431
Total equity, LTM average 11,047 11,730 11,413
Return on equity (ROE), LTM -4.8% 12.2% -3.8%
Net debt 3,518 2,917 3,167
Adjusted EBITDA, LTM 888 2,266 989
Net debt to LTM adjusted EBITDA ratio 4.0 1.3 3.2
LTM = Last 12 months.
Calculation of EPS excl. FV
EUR million Q1/24 Q1/23 Q4/23 2023
Earnings per share (EPS) excl. FV EUR
Net profit for the period attributable to owners of
the Parent 85 189 -287 -357
FV on net profit for the period attributable to
owners of the Parent 14 8 217 218
Net profit for the period attributable to owners
of the parent excl. FV 71 181 -504 -575
Average number of shares 789 789 789 789
Earnings per share (EPS) excl. FV EUR 0.09 0.23 -0.64 -0.73
Results
Stora Enso January–March results 2024 34 (39)
===== SIDA 36 =====
Calculation of net debt
EUR million 31 Mar 2024 31 Dec 2023 31 Mar 2023
Listed securities 10 9 6
Non-current interest-bearing receivables 76 76 112
Interest-bearing receivables 40 64 68
Cash and cash equivalents 2,099 2,464 1,257
Interest-bearing assets 2,225 2,613 1,443
Non-current interest-bearing liabilities 4,310 4,446 2,864
Current portion of non-current debt 248 286 917
Interest-bearing liabilities 623 476 559
Bank overdrafts 3 0 19
Interest-bearing liabilities held-for-sale 558 571 1
Interest-bearing liabilities 5,743 5,780 4,359
Net debt 3,518 3,167 2,917
Definitions and calculation of alternative performance measures
According to the European Securities and Markets Authority (ESMA) Guidelines, an alternative performance
measure is understood as a financial measure of historical or future financial performance, financial position, or
cash flows, not defined under IFRS. Used together with the IFRS measures, alternative performance measures
provide meaningful supplemental information to the management, investors, analysts and other parties with
regards to the financial development of the business operations.
Operating result (IFRS) Net result for the period excluding income tax and net
financial items (finance costs).
Used in combination with below
measures to determine the
profitability of the Group.
Adjusted EBIT
Operating result (IFRS) excluding items affecting
comparability (IAC) and fair valuations and non-
operational items (FV) of the line-by-line consolidated
entities and Stora Enso’s share of operating result excluding
IAC and FV of its associated companies.
The Group’s key non-IFRS
performance metric, which is
used to evaluate the
performance of operating
segments and, in combination
with below ratios, to steer
allocation of resources to them.
Adjusted EBITDA Operating result (IFRS) excluding silviculture costs and
damage to forests, fixed asset depreciation and
impairment, IACs and FV. The definition includes the
respective items of subsidiaries, joint arrangements and
associated companies.
Used by management to analyse
the business and, from time-to-
time, for short term and long-
term target setting.
Adjusted return on capital
employed (ROCE), LTM
3
(%)
Adjusted EBIT
3
x 100
Capital employed
1 Used for long-term Group
financial targets setting.
Adjusted return on operating
capital (ROOC), LTM
3
(%)
Adjusted EBIT
3
x 100
Operating capital
1 Used for long-term divisional
financial targets setting.
Return on equity, ROE, LTM
3
(%)
Net result for the period x 100
Total equity
1 A measure of the profitability in
relation to equity.
Net debt Interest-bearing liabilities – interest-bearing assets,
marked with “I” in the statement of financial position.
Used for long-term Group
financial targets setting.
Net debt/equity ratio Net debt
Equity
2 Used for long-term Group
financial targets setting.
Net debt/last 12 months’
adjusted EBITDA ratio
Net debt
LTM adjusted EBITDA
Used for long-term Group
financial targets setting.
Earnings per share (EPS)
excluding FV
Net result for the period excluding fair valuations and non-
operational items after tax divided by the weighted
average number of shares
Stora Enso's dividend policy is to
distribute 50% of earnings per
share (EPS) excluding fair
valuation over the cycle.
Operating capital and
capital employed
Operating capital is comprised of items marked with “O” in
the statement of financial position. Capital employed =
Operating capital – Net tax liabilities. Net tax liabilities are
marked with "T" in the statement of financial position.
Used for long-term Group
financial targets setting.
Alternative performance
measure
Definition Purpose
Results
Stora Enso January–March results 2024 35 (39)
===== SIDA 37 =====
Items affecting
comparability (IAC)
The most common IAC are significant capital gains and
losses, impairments or impairment reversals, disposal gains
and losses relating to Group companies, provisions for
planned restructurings, environmental provisions, changes
in depreciation due to restructuring and penalties. In order
for qualifying cases to be considered as items affecting
comparability, a materiality threshold will be applied of at
least EUR 4 million for Packaging Materials, EUR 2 million for
Biomaterials, and EUR 1 million for the rest of the divisions
including segment Other.
Represent certain significant
items, identified by the
management, considered not
indicative of the operating
business performance due to
their nature and/or frequency.
Fair valuations and non-
operational items (FV)
Fair valuations and non-operational items include non-
cash income and expenses related to CO2 emission rights
and liabilities, non-operational fair valuation changes of
biological assets, adjustments for differences between fair
value and acquisition cost of forest assets upon disposal
and the Group’s share of income tax and net financial
items of associated companies. Non-operational fair value
changes of biological assets reflect changes made to
valuation assumptions and parameters. The adjustments
for differences between fair value and acquisition cost of
forest assets upon disposal are a result of the fact that the
cumulative non-operational fair valuation changes of
disposed forest assets were included in previous periods in
IFRS operating result (biological assets) and other
comprehensive income (forest land) and are included in
adjusted EBIT only at the disposal date (for non-strategic
forest assets disposals).
Represent adjustments for
certain items considered by the
management less relevant for
understanding operating
business performance. These
adjustments result in differences
in the recognition and
measurement principles
applicable under IFRS.
Operational fair value
change of biological assets
Operational fair value changes of biological assets contain
all other fair value changes (see above about non-
operational fair value changes of biological assets), mainly
due to inflation and differences in actual harvesting levels
compared to the harvesting plan.
The long-term value change of
the growing forests is an
important component of the
forestry business profitability.
Cash flow from operations
(non-IFRS) and cash flow
after investing activities
(non-IFRS)
Cash flow from operations (non-IFRS) is equal to net cash
provided by operating activities (IFRS) before cash flows
related to financial items and income taxes. Cash flow after
investing activities (non-IFRS) is equal to cash flow from
operations (non-IFRS) minus cash spent on intangible
assets, property, plant and equipment, and biological
assets and acquisitions of associated companies.
These are measures of cash
generation, working capital
efficiency and capital
expenditure outflows.
Capital expenditure Capital expenditure on fixed assets includes investments in
and acquisitions of tangible and intangible assets as well
as internally generated assets and capitalised borrowing
costs, net of any related subsidies. Capital expenditure on
leased assets includes new capitalised leasing contracts.
Capital expenditure on biological assets consists of
acquisitions of biological assets and capitalisation of costs
directly linked to growing trees in plantation forests. The
cash flow impact of capital expenditure is presented in
cash flow from investing activities, excluding lease capex,
where the cash flow impact is based on paid lease
liabilities and presented in cash flow from financing and
operating activities.
A measure of the operating
business investments capitalised
as tangible and intangibles
assets.
Fixed costs Maintenance, personnel and other administration type of
costs, excluding IAC and FV.
A measure of the costs that are
less variable in nature.
Alternative performance
measure
Definition Purpose
1
Average for the last five quarter ends
2
Attributable to the owners of the Parent
3
Last 12 months prior to the end of reporting period
Results
Stora Enso January–March results 2024 36 (39)
===== SIDA 38 =====
Definitions and calculation of key sustainability figures
GHG emissions, Scope 1 + 2 Direct absolute CO2e emissions from production (Scope 1) and indirect absolute CO2e
emissions related to purchased electricity and heat (Scope 2). Excluding joint
operations. Reported as rolling 12 months. Calculated in accordance with the
Greenhouse Gas Protocol of the World Resource Institute (WRI).
GHG emissions, Scope 3 Absolute CO2e emissions from other sources along the value chain of all production
units are estimated based on the most recent methodology. Joint operations included
as suppliers. Currently, material emission categories for Scope 3 emissions are updated
annually. Accounting based on guidelines provided by the Greenhouse Gas Protocol
and the World Business Council for Sustainable Development (WBCSD).
Forest certification coverage The proportion of land in wood production and harvesting owned or leased by Stora
Enso that is covered by forest certification schemes. Reporting on total land area and its
forest certification coverage aligned with financial reporting on forests assets.
Share of technically recyclable
products
The proportion of technically recyclable products based on production volumes as
tonnes. Technical recyclability is defined by international standards and tests when
available, and in the absence of these, by Stora Enso’s tests that prove recyclability. The
reporting scope includes Stora Enso’s packaging, pulp, paper and solid wood products
as well as biochemical by-products.
TRI (Total recordable incidents)
rate Number of incidents per one million hours worked. Including joint operations.
Gender balance: % of female
managers among all managers
The share of female managers is calculated as the headcount of all permanent
managers with at least one direct report. The manager must be permanent, but the
subordinates can be temporary or permanent. Reported as rolling 12 months. Excluding
joint operations.
Total water withdrawal per
saleable tonne
Reported as rolling 12 months. Excluding joint operations. Total water withdrawal includes
process water and cooling and non-contact water intakes by board, pulp, and paper
production sites as cubic metres (m
3
).
Process water discharges per
saleable tonne
Reported as rolling 12 months. Excluding joint operations and Business Unit Western
Europe in Packaging Solutions. Process water discharges include the discharges of
board, pulp, and paper production sites as cubic metres (m
3
).
Supplier Code of Conduct (SCoC)
coverage
The share of supplier spend (rolling 12 months) covered by the Supplier Code of Conduct
(SCoC). Excludes joint operations, intellectual property rights, leasing fees, financial
trading, government fees such as customs, and wood purchases from private individual
forest owners. Excluding Business Unit Western Europe in Packaging Solutions.
Results
Stora Enso January–March results 2024 37 (39)
===== SIDA 39 =====
Divisions
Packaging Materials
Leading the development of
circular packaging, providing
premium packaging
materials based on virgin
and recycled fiber.
Share of Group external sales
48%
Packaging Solutions
Developing and selling
premium fiber-based
packaging products and
services.
Share of Group external sales
10%
Biomaterials
Meeting the growing
demand for bio-based
solutions to replace fossil-
based and hazardous
materials.
Share of Group external sales
14%
Wood Products
One of the largest sawn wood producers in
Europe and a global leading provider of
renewable wood-based solutions.
Share of Group external sales
15%
Forest
Creating value through sustainable forest
management, competitive wood supply and
innovation.
Share of Group external sales
13%
Information about Stora Enso's production capacities is available in the Annual Report 2023.
Results
Stora Enso January–March results 2024 38 (39)
===== SIDA 40 =====
Contact information
Stora Enso Oyj Stora Enso AB storaenso.com
P.O.Box 309 P.O.Box 70395 storaenso.com/investors
FI-00101 Helsinki, Finland SE-107 24 Stockholm, Sweden
Visiting address: Salmisaarenaukio 2 Visiting address: World Trade Center
Tel. +358 2046 111 Klarabergsviadukten 70
Tel. +46 1046 46 000
For further information, please contact:
Anna-Lena Åström, SVP Investor Relations, tel. +46 702 107 691
Carl Norell, SVP Corporate Communications, tel. +46 722 410 349
Stora Enso's January–June 2024 results will be published on
24 July 2024
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, and wooden construction, and
one of the largest private forest owners in the world. We create value with our low-carbon and recyclable fiber-based products, through which we
support our customers in meeting the demand for renewable sustainable products. Stora Enso has approximately 20,000 employees and our
sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In
addition, the shares are traded on OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
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.
Contacts
Stora Enso January–March results 2024 39 (39)