#Finland #Helsinki #Stora Enso #financial targets #renewable materials

Stora Enso's New Financial Reporting Structure and Targets

Stora Enso, a prominent player in the renewable materials market, is gearing up to implement a new financial reporting format starting January 1, 2026. This change aligns with the Group's intensified focus on renewable materials and packaging, signifying a substantial pivot towards sustainability. Along with the reporting updates, Stora Enso is unveiling new financial targets that outline a clear strategic roadmap for growth.

Changes in Reporting Structure

The restructuring comes on the heels of a decision to spin off Stora Enso's Swedish forest assets into a separate listed company and conduct a strategic evaluation of its Central European sawmilling and building solutions division. These adjustments are aimed at solidifying the Group's market leadership within renewable materials and packaging sectors. The new financial reporting format will categorize areas more effectively and enhance transparency for stakeholders.

Current vs. New Reporting Structure

Under the current reporting structure, Stora Enso includes:

• - Packaging Materials
• - Biomaterials
• - Wood Products
• - Forest Assets
• - Other

Starting next year, the new reporting will transition to:

• - Consumer Packaging (including Cartonboard and Foodservice sectors)
• - Integrated Packaging (featuring Containerboard and Packaging Solutions)
• - Biomaterials
• - Other (covering Wood and Energy businesses)

This refined structure is designed to provide a clearer picture of the company’s divisions, aligning each with the respective profit and loss unit responsibilities.

New Financial Targets

Alongside the restructuring announcement, Stora Enso has established ambitious financial targets for the upcoming years:

• - Adjusted EBIT margin: Target greater than 10%
• - Revenue growth: Aim for over 4%
• - Payout ratio: Set at over 50%
• - Net debt to adjusted EBITDA ratio: Less than 1x, with potential temporary flexibility of up to 2x for strategic investments.

These targets reflect Stora Enso's commitment to delivering value to shareholders while advocating for sustainable business practices. The company plans to elaborate on its roadmap to achieving these goals during its Capital Markets Day event scheduled for November 25, 2025.

Capital Markets Day: What to Expect

The upcoming Capital Markets Day will be a key event for investors and stakeholders. Stora Enso will host a live webcast to discuss its strategic direction, emphasizing its focus on renewable materials and packaging developments. This event will also unveil insights from the strategic review of the Swedish forest assets and introduce the new forest company, indicating a significant shift in business strategy in alignment with eco-friendly practices.

Stora Enso’s ethos centers around the belief that products derived from fossil fuels today can be made from trees in the future. This forward-thinking approach positions the company not only as a leader in the renewable sector but also demonstrates a strong commitment to sustainability and the environment.

Conclusion

With approximately 19,000 employees and sales reaching €9 billion in 2024, Stora Enso is poised for substantial growth as it implements these strategic changes. The transition towards a new financial reporting structure and the establishment of clear targets underline the company's leadership in renewable products stewardship. Stora Enso's shares are listed on multiple exchanges including Nasdaq Helsinki and Stockholm, in addition to being available for trading in the USA through OTC Markets.

For further information, stakeholders are invited to participate in the Capital Markets Day webcast, promising an insightful look into the company’s transitional journey.

For updates and details, visit Stora Enso Investors.