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