Update: Stora Enso's restated comparison figures for segment reporting

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Mar 29, 2023, 05:58 ET

STORA ENSO OYJ STOCK EXCHANGE RELEASE 29 March 2023 at 12:00 EEST

HELSINKI, March 29, 2023 /PRNewswire/ -- Update to Stora Enso's stock exchange release published today at 10:00 EEST. Restated comparison figures for the key figure "Operational ROCE excluding Forest division" added.

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 %
Operational ROCE excl. Forest division, last 12 months	20.4 %	22.1 %	21.7 %	20.5 %
Return on equity (ROE), last 12 months	13.3 %	14.3 %	14.5 %	14.4 %

The complete updated release is as follows:

Stora Enso's segment reporting changed as of 1 January 2023, and the Group has restated the comparative figures for its segment reporting for 2021 and 2022.

From 1 January onwards, Stora Enso's reporting segments are: Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, and Other.

The Paper division was discontinued as of 1 January 2023 and is not reported as a separate segment going forward. From 1 January 2023 onwards, the Maxau and Hylte paper sites are reported in Segment Other until the completion of the divestments. The divestment of the Maxau site was completed on 1 March 2023. The Langerbrugge and Anjala paper sites, which are retained in Stora Enso, are reported as part of the Packaging Materials division.

From 1 January 2023, the reporting of emerging businesses, including Formed Fiber, Circular Solutions (biocomposites), and Selfly Stores, was transferred from the Packaging Solutions division to Segment Other.

The comparative figures have been restated according to the new reporting structure and are presented in the tables below under heading 'Restated'. Comparative figures based on the old reporting structure are presented under the heading 'As published'.

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)

Presenting return measures based on the last 12 months is an effective way to analyse the most recent financial data on an annualised basis and is considered more suitable for tracking the development of long-term targets.

From Q1/2023 onwards, Stora Enso will present the operational return on capital employed (operational ROCE) based on the last 12 months prior to the end of the reporting period. This is calculated by dividing the operational 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.

Similarly, the return on operating capital (operational ROOC) for the divisions and the return on equity (ROE) for the Group will be based on the last 12 months prior to the end of the reporting period.

The presentation of operational ROCE, operational ROOC and ROE based on quarter or year-to-date figures will be discontinued.

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 %

¹Operational ROOC for last 12 months
²Operational 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 %
Operational ROCE excl. Forest division, last 12 months	20.4 %	22.1 %	21.7 %	20.5 %
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

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