Stora Enso Unveils New Reporting Structure, Enhances Transparency

Stora Enso Unveils New Reporting Structure, Enhances Transparency

(IN BRIEF) Stora Enso has announced changes to its segment reporting effective from January 1, 2023. The company has restated comparative figures for its segment reporting in 2021 and 2022, and the new reporting segments include Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, and Other. The Paper division has been discontinued, and the reporting of emerging businesses has been transferred to Segment Other. The changes reflect Stora Enso’s strategic priorities and evolving nature of its business. The updated segment reporting is available on Stora Enso’s website.

(PRESS RELEASE) HELSINKI, 29-Mar-2023 — /EuropaWire/ — Stora Enso (HEL: STERV), a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper, has announced changes to its segment reporting, effective January 1, 2023. The company has restated comparative figures for its segment reporting in 2021 and 2022.

Under the new reporting structure, Stora Enso’s reporting segments include Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, and Other. The Paper division has been discontinued as of January 1, 2023, and the Maxau and Hylte paper sites are reported in Segment Other until the completion of the divestments. The reporting of emerging businesses, including Formed Fiber, Circular Solutions (biocomposites), and Selfly Stores, has been transferred to Segment Other.

The restated comparative figures have been presented according to the new reporting structure, while comparative figures based on the old reporting structure are presented separately. The Langerbrugge and Anjala paper sites are retained in Stora Enso and are reported as part of the Packaging Materials division. The Maxau site’s divestment was completed on March 1, 2023.

The updated segment reporting is available on Stora Enso’s website, and the company will provide further details in its upcoming financial reports.

Sales

Restated

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  5,496  1,335  1,421  1,424  1,317  4,508
Packaging Solutions  727  177  176  186  189  720
Biomaterials  2,180  649  567  522  442  1,728
Wood Products  2,195  471  520  631  573  1,872
Forest  2,519  664  581  649  626  2,311
Other  2,150  528  575  568  481  2,119
Inter-segment sales  -3,589  -959  -876  -925  -828  -3,094
Total  11,680  2,864  2,963  3,054  2,798  10,164

As published

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  4,690  1,127  1,210  1,222  1,132  3,898
Packaging Solutions  737  179  179  189  191  723
Biomaterials  2,180  649  567  522  442  1,728
Wood Products  2,195  471  520  631  573  1,872
Forest  2,519  664  581  649  626  2,311
Paper  1,772  424  471  462  416  1,703
Other  1,097  289  282  290  236  1,092
Inter-segment sales  -3,512  -939  -846  -910  -817  -3,163
Total  11,680  2,864  2,963  3,054  2,798  10,164

 

Operational EBITDA

Restated

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  993  142  273  285  293  858
Packaging Solutions  42  11  10  9  11  69
Biomaterials  822  284  234  155  149  618
Wood Products  356  -1  82  146  130  410
Forest  256  79  60  59  58  318
Other  102  20  38  23  21  -81
Total  2,529  515  689  663  662  2,184

As published

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  900  104  258  265  273  846
Packaging Solutions  27  6  8  4  8  56
Biomaterials  822  284  234  155  149  618
Wood Products  356  -1  82  146  130  410
Forest  256  79  60  59  58  318
Paper  242  59  63  67  53  -48
Other  -33  4  -10  -18  -9  -9
Total  2,529  515  689  663  662  2,184

Operational EBITDA margin

Restated

2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  18.1 %  10.6 %  19.2 %  20.0 %  22.3 %  19.0 %
Packaging Solutions  5.7 %  6.3 %  5.7 %  5.0 %  6.0 %  9.6 %
Biomaterials  37.7 %  43.8 %  41.2 %  29.8 %  33.7 %  35.7 %
Wood Products  16.2 %  -0.1 %  15.7 %  23.1 %  22.7 %  21.9 %
Forest  10.2 %  11.9 %  10.3 %  9.1 %  9.3 %  13.7 %
Other  4.7 %  3.8 %  6.7 %  4.1 %  4.3 %  -3.8 %
Total  21.7 %  18.0 %  23.3 %  21.7 %  23.7 %  21.5 %

As published

2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  19.2 %  9.3 %  21.3 %  21.7 %  24.1 %  21.7 %
Packaging Solutions  3.6 %  3.5 %  4.5 %  2.3 %  4.3 %  7.8 %
Biomaterials  37.7 %  43.8 %  41.2 %  29.8 %  33.7 %  35.7 %
Wood Products  16.2 %  -0.1 %  15.7 %  23.1 %  22.7 %  21.9 %
Forest  10.2 %  11.9 %  10.3 %  9.1 %  9.3 %  13.7 %
Paper  13.7 %  13.8 %  13.4 %  14.5 %  12.8 %  -2.8 %
Other  -3.0 %  1.3 %  -3.4 %  -6.3 %  -3.8 %  -0.8 %
Total  21.7 %  18.0 %  23.3 %  21.7 %  23.7 %  21.5 %

 

Operational EBIT

Restated

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  655  59  188  200  208  535
Packaging Solutions  16  5  4  2  5  42
Biomaterials  687  249  197  123  117  495
Wood Products  309  -14  70  134  118  364
Forest  204  62  47  47  49  267
Other  63  14  29  14  6  -166
Total  1,891  355  527  505  503  1,528

As published

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  596  31  181  188  196  556
Packaging Solutions  -2  -1  1  -3  1  26
Biomaterials  687  249  197  123  117  495
Wood Products  309  -14  70  134  118  364
Forest  204  62  47  47  49  267
Paper  185  49  49  51  36  -124
Other  -47  -1  -12  -19  -14  -48
Total  1,891  355  527  505  503  1,528

Operational EBIT margin

Restated

2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  11.9 %  4.4 %  13.2 %  14.1 %  15.8 %  11.9 %
Packaging Solutions  2.2 %  2.9 %  2.3 %  1.3 %  2.5 %  5.9 %
Biomaterials  31.5 %  38.4 %  34.8 %  23.6 %  26.4 %  28.7 %
Wood Products  14.1 %  -2.9 %  13.5 %  21.3 %  20.6 %  19.5 %
Forest  8.1 %  9.3 %  8.1 %  7.2 %  7.8 %  11.5 %
Other  2.9 %  2.6 %  5.0 %  2.4 %  1.3 %  -7.8 %
Total  16.2 %  12.4 %  17.8 %  16.5 %  18.0 %  15.0 %

As published

2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  12.7%  2.7%  15.0%  15.4%  17.4%  14.3%
Packaging Solutions  -0.2%  -0.5%  0.5%  -1.4%  0.4%  3.6%
Biomaterials  31.5%  38.4%  34.8%  23.6%  26.4%  28.7%
Wood Products  14.1%  -2.9%  13.5%  21.3%  20.6%  19.5%
Forest  8.1%  9.3%  8.1%  7.2 %  7.8%  11.5%
Paper  10.5%  11.6%  10.5%  10.9%  8.8%  -7.3%
Other  -4.3%  -0.2%  -4.4 %  -6.7 %  -6.1%  -4.4%
Total  16.2%  12.4%  17.8%  16.5%  18.0%  15.0%

 

Cash flow from operations

Restated

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  823  168  304  187  165  848
Packaging Solutions  11  17  -5  3  -3  69
Biomaterials  682  213  188  145  136  490
Wood Products  346  54  74  141  78  313
Forest  146  20  59  23  45  158
Other  -136  -42  19  -95  -17  -126
Total  1,873  429  639  404  402  1,752

As published

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  756  154  278  169  155  807
Packaging Solutions  -5  11  -7  -2  -6  56
Biomaterials  682  213  188  145  136  490
Wood Products  346  54  74  141  78  313
Forest  146  20  59  23  45  158
Paper  77  11  44  20  2  -25
Other  -130  -34  3  -92  -7  -48
Total  1,873  429  639  404  402  1,752

Cash flow after investing activities

Restated

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  488  61  230  116  81  480
Packaging Solutions  -14  9  -11  -2  -10  45
Biomaterials  536  168  156  114  97  391
Wood Products  264  28  57  124  55  252
Forest  91  -3  48  11  34  112
Other  -203  -61  8  -116  -34  -178
Total  1,162  202  489  247  224  1,102

 

As published

EUR million 2022 Q4/22 Q3/22 Q2/22 Q1/22 2021
Packaging Materials  440  51  212  103  74  459
Packaging Solutions  -40  -2  -15  -9  -14  26
Biomaterials  536  168  156  114  97  391
Wood Products  264  28  57  124  55  252
Forest  91  -3  48  11  34  112
Paper  16  -3  28  4  -12  -77
Other  -146  -37  1  -99  -11  -62
Total  1,162  202  489  247  224  1,102

Return on operating capital (operational ROOC) and return on capital employed (operational ROCE)

Stora Enso will present the operational return on capital employed (operational ROCE), return on operating capital (operational ROOC) for the divisions, and return on equity (ROE) for the Group based on the last 12 months before the end of the reporting period.

This method of presentation is more effective in analysing recent financial data on an annualised basis and is considered better suited for tracking the development of long-term targets. The operational ROCE will be calculated by dividing the operational earnings before interest and taxes (EBIT) of the last 12 months with the average capital employed. The average capital employed for the last 12 months is determined as the average of the published capital employed of the last five quarter-ends.

The presentation of operational ROCE, operational ROOC and ROE based on quarter or year-to-date figures will be discontinued. The change will take effect from Q1/2023 onwards.

Stora Enso is confident that this new method of presentation will provide greater clarity and transparency in its financial reporting, making it easier for stakeholders to track the company’s progress towards its long-term targets.

Return on operating capital (operational ROOC) and return on capital employed (operational ROCE), restated based on the last 12 months

Q4/22 Q3/22 Q2/22 Q1/22
Packaging Materials1  18.6 %  21.0 %  20.3 %  18.4 %
Packaging Solutions1  7.9 %  14.0 %  18.0 %  18.6 %
Biomaterials1  25.3 %  22.9 %  20.7 %  22.2 %
Wood Products1  43.2 %  58.5 %  68.3 %  65.8 %
Forest2  3.7 %  3.5 %  3.6 %  3.7 %

1 Operational ROOC for last 12 months
2 Operational ROCE for last 12 months

Group return on capital employed (operational ROCE) and return on equity (ROE)

Q4/22 Q3/22 Q2/22 Q1/22
Operational ROCE, last 12 months  13.7 %  14.6 %  14.3 %  13.6 %
Return on equity (ROE), last 12 months  13.3 %  14.3 %  14.5 %  14.4 %

For further information, please contact:
Carl Norell
Press officer
tel. +46 72 241 0349

Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
Tel. +46 70 210 7691

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 believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 21,000 employees and our sales in 2022 were EUR 11.7 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 in the USA as ADRs (SEOAY). storaenso.com/investors

SOURCE: STORA ENSO OYJ

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