Stora enso financial result q4 2014

Financial Results for Q4 and Full Year 2014

CEO Karl-Henrik Sundström and CFO Seppo Parvi 4 February 2015

It should be noted that 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 within the meaning of the United States Private Securities

Litigation Reform Act of 1995. 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.

Stora Enso Q4 and Full Year 2014 Results 2 4 February 2015

Transformation in progress and clear improvement in

result – dividend proposal stable at EUR 0.30 Q4 2014 year-on-year

• Sales decreased by 2.3%

– Increased by 1.4% excluding structurally

declining paper and divested businesses

• Operational EBIT EUR 209 million

– 37.5% increase due to cost management

– Supported by CO2 sales, reversal of

provision, land sales and impairment effect

on depreciation

• Net debt/EBITDA 2.6 (2.9)

• Operational ROCE 9.7% (7.0%)

– Excluding transformation projects 13.1%

• Dividend proposal of EUR 0.30

4 February 2015 Stora Enso Q4 and Full Year 2014 Results 3

1000

1100

1200

1300

1400

1500

1600

13Q4 14Q4

1000

1200

1400

1600

1800

2000

2200

2400

2600

2800

13Q4 14Q44000

5000

6000

7000

8000

9000

10000

11000

2013 2014

4000

4500

5000

5500

6000

6500

2013 2014

Quarterly sales up by 1.4% y-o-y, excluding structurally

declining paper and divested businesses


1.4% 1.3%

-3.3% -2.3%

2 612 2 552

10 563

10 213

1 517 1 539

6 075 6 152

Full Group sales, MEUR

Sales excluding paper and divested businesses, MEUR

0

100

200

300

400

500

600

700

800

900

13Q4 14Q4 2013 2014

Operational EBIT increased by 38% in Q4 y-o-y and

by 40% in 2014 y-o-y

Stora Enso Q4 and Full Year 2014 Results 5

MEUR

4 February 2015

37.5%

40.0%

152

209

578

810

Transformation in Progress (1/4) Investing in sustainable business – Consumer Board and Packaging Solutions


Guangxi • 750 MEUR (phase

one)

• Partnering with

IFC (equity and

loan)

• FSC and PEFC

certified plantation

• Construction

permits granted

• Construction of

the consumer

board mill is in full

speed

• Start up in mid-

2016

Varkaus

conversion • 110 MEUR for

conversion

• EBITDA margin

above 15%

• Capacity 390 000

tonnes of kraftliner

• Uncoated fine

paper capacity to

reduce by 280 000

tonnes

• Execution

according to plan

• Start up Q4 2015

Investment in

Imatra mills • 27 MEUR to improve

quality and cost-

competitiveness

• Increases consumer

board capacity by

20 000 tonnes

• Start up in Sep 2015

Transformation in Progress (2/4) Investing in sustainable business - Biomaterials


Montes del

Plata

• Total investment

1 721 MEUR, of

which Stora Enso’s

share 850 MEUR

• Joint operation

• Annual production

capacity 1.3 million

tonnes

• Stora Enso’s share

650 000 tonnes

• In 2014, Stora

Enso’s share of

production totalled

240 000 tonnes

• Reached EBIT break

even in December

Virdia &

demonstration

plant • Virdia acquisition cash

consideration 17 MEUR

with maximum potential

payouts totalling 21

MEUR by 2017.

• 32 MEUR investment in

a demonstration and

market development

plant in the USA

(Raceland, Louisiana)

• Extraction and

separation of highly pure

sugars from biomass to

be converted into

differentiated

biochemicals

Sunila Mill • Biorefinery

investment 32

MEUR

• Lignin extracted

from the black

liquor

• First batches of

moist lignin

have been

produced

Transformation in Progress (3/4) Investing in sustainable business – Wood Products


Varkaus Mill: wooden

building elements • 43 MEUR investment in a new

production line for wooden building

elements located in Varkaus,

Finland

• The investment is based on peeling

technology

• Estimated yearly capacity around

100 000 m3

• Expected annual sales of

50 MEUR when run at full capacity

• Over time significantly exceed

ROCE target of 13%


Murow Sawmill

• 28 MEUR to modernise and develop

Murow Sawmill in Poland

• Increases Stora Enso’s consumption of

Polish saw logs

• The production capacity of the sawmill

will rise to 140 000 m³/shift/year

• Investment is proceeding as planned


Transformation in Progress (4/4) Non-core asset divestments and closures in 2014

• Non-core asset divestments:

– Thiele Kaolin Q1 2014, cash

consideration EUR 61 million

– Corenso core and coreboard

operations to Powerflute in Q4

2014, cash consideration

approximately EUR 103 million

– Uetersen Mill with cash

consideration of EUR 7 million.

Closing expected in Q1 2015.

• Closures

– Veitsiluoto PM1 (190 000 tonnes of

coated magazine paper) in Q1 2014

– Corbehem Mill (330 000 tonnes of

light weight magazine paper) in Q3

2014


38 %

11 %17 %

33 %

1 %

30 %

70 %

Paper Growth businesses

21 %

11 %

11 %

51 %

6 %

Transformation journey continues Growth businesses with 62% of sales

20XX Sales

62 %

6 %

35 %

-3 %

70 %

12 %

21 %

-3 %

2006 Sales


2014 Operational EBIT 2006 Operational EBIT

2014 Sales

62%

79%

30%

38%

Summary financials Q4 2014 and 2014

EUR million

Q4/14

Q4/13

Change

%

Change

%

2014

2013

Change

Q4 14 /

Q4 13 Q3/14

Q4 14 /

Q3 14

%

14/13

Sales 2 552 2 612 -2.3% 2 514 1.5% 10 213 10 563 -3.3%

Operational EBITDA 308 260 18.5% 333 -7.5% 1 269 1 090 16.4%

Operational EBITDA, % 12.1% 10.0% 13.2% 12.4 % 10.3%

Operational EBIT 209 152 37.5% 210 -0.5% 810 578 40.1%

Operational EBIT margin, % 8.2% 5.8% 8.4% 7.9% 5.5%

Profit before tax excl. NRI 32 111 -71.2% 116 -72.4% 399 350 14.0%

EPS excl. NRI, EUR 0.06 0.15 0.12 0.40 0.40

EPS (basic), EUR -0.15 -0.18 0.15 0.13 -0.07

Operational ROCE, % 9.7% 7.0% 9.7% 9.5% 6.5%

Operational ROCE, % excl.

transformation investments 13.1% 9.0% 13.0% 12.7% 8.1%

Cash Flow from Operations 442 462 -4.3% 257 72.0% 1 139 1 252 -9.0%

Net debt/last 12 months’

operational EBITDA 2.6 2.9 2.8 2.6 2.9

12 Stora Enso Q4 and Full Year 2014 Results 4 February 2015

Reconciliation of operational profitability


EUR million

2014

Q4

2014

Q3

2014

Q2

2014

Q1

2013

Q4

2013

Q3

2013

Q2

2013

Q1

Operational EBITDA 308 333 326 302 260 319 257 254

Equity accounted

investments (EAI),

operational 35 17 17 19 28 22 21 20

Depreciation and

impairment excl NRI -134 -140 -134 -139 -136 -157 -154 -156

Operational EBIT 209 210 209 182 152 184 124 118

Cash flow from operations


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

50

100

150

200

250

300

350

400

450

500

13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4

Cash flow from operations, MEUR Cash flow to sales

Balance sheet strength Q1 2012 – Q4 2014


*Last twelve months’ operational EBITDA

4 February 2015

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

2 800

2 900

3 000

3 100

3 200

3 300

3 400

3 500

3 600

12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4

Net Debt, MEUR Net Debt/Operational EBITDA*

0

500

1000

1500

2000

2500

3000

3500

4000

13Q4 14Q4 2013 2014

Sales, MEUR

0

50

100

150

200

250

300

350

400

450

13Q4 14Q4 2013 2014

Operational EBIT, MEUR

Renewable Packaging Q4 sales increased by 3% year-on-year

16 Stora Enso Q4 and Full Year 2014 Results

• Q4:

– Sales increased to EUR 812 (EUR 788) million

due to higher board deliveries

– Operational EBIT stable at EUR 74 (EUR 73)

million

• Lower wood prices and energy costs partly offset

by operational problems and fire at Skoghall mill

– Operational ROOC 11.5% (12.2%)

• Operational ROOC 16.9% (14.5%) excluding

Guangxi investment

• Full year:

– Sales increased to EUR 3 335 (EUR 3 272)

million

– Operational EBIT increased by 29% to EUR

410 (EUR 318) million

• Lower costs and higher volumes



Guangxi investment

4 February 2015

3.0%

1.9%

28.9%

1.4%

788 812

3 272 3 335

410

318

74 73

0

10

20

30

40

50

60

70

80

90

100

13Q4 14Q4 2013 2014


0

200

400

600

800

1000

1200

13Q4 14Q4 2013 2014

Sales, MEUR

Biomaterials Q4 sales increased by 18% year-on-year

• Q4:

– Sales increased to EUR 314 (EUR 266)

million due to Montes del Plata deliveries

– Operational EBIT increased by 42% to EUR

34 (EUR 24) million

• Higher pulp prices and sales volumes



Montes del Plata investment

• Full year:

– Sales increased to EUR 1 104 (EUR 1 033)

million

– Operational EBIT increased by 15.6% to EUR

89 (EUR 77) million

• Mainly due to lower wood costs in Nordic pulp

mills



Montes del Plata investment 4 February 2015 Stora Enso Q4 and Full Year 2014 Results 17

18.0%

6.9%

41.7%

15.6%

266

314

1 033 1 104

89

77

34

24

0

10

20

30

40

50

60

70

80

90

100

13Q4 14Q4 2013 2014

Mill

ion

s


0

200

400

600

800

1000

1200

1400

1600

1800

2000

13Q4 14Q4 2013 2014

Mill

ion

s

Sales, MEUR

Building and Living 2014 operational EBIT up 19% year-on-year

• Q4:

– Sales declined by 11% to EUR 415

(EUR 466) million due to lower volumes in

non-European markets

– Operational EBIT decreased by 47.4% to

EUR 10 (EUR 19) million

• Lower volumes and higher net raw material

costs


– Curtailments 7% (3%)

• Full year:

– Sales declined by 5% to EUR 1 779

(EUR 1 867) million

– Operational EBIT increased by 18.7% to


• Lower fixed costs



-10.9%

-4.7%

-47.4%

18.7%

466

1 867 1 779

19

10

75

415

89

0

50

100

150

200

250

300

350

400

13Q4 14Q4 2013 2014

Operational EBITDA, MEUR

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

13Q4 14Q4 2013 2014

Sales, MEUR

Printing and Reading cash generation maintained on a

high level year-on-year

• Q4:

– Sales declined by 7% to EUR 984 (EUR 1 054)

million

– Operational EBITDA increased by 26.7% to


• Lower volumes and slightly lower sales prices in EUR

terms

• Clearly lower energy and fixed costs, including

indirect CO2 cost subsidy, and reversal of

restructuring provision

– Operational ROOC increased from 6.1 % to 15.1%

• Full year:

– Sales declined by 9% to EUR 3 912

(EUR 4 319) million

– Operational EBITDA increased by 24.5% to


– Cash flow after capex EUR 243 (EUR 248) million


-6.6%

-9.4%

26.7%

24.5%

4 319 3 912

984 1 054

86 109

290

361

0%

2%

4%

6%

8%

10%

12%

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014

Cash flow after capex Cash flow after capex to sales

Forecast for capex in 2015

EUR million Forecast 2015*

Capital expenditure 780–840

Depreciation 520–540

• Capital expenditure includes approximately EUR 350 million for the project in Guangxi, China.


Guidance for Q1 2015 Compared to Q4 2014

• Q1 Sales are estimated to be

roughly similar compared to the

Q4 amount of EUR 2 552 million

• Q1 Operational EBIT is expected

to be in line with the Q4 amount of

EUR 209 million


-1,2

-1

-0,8

-0,6

-0,4

-0,2

0

0,2

0,4

0,6

0,8

1

2007 2008* 2009* 2010 2011 2012 2013 2014**

Earnings and distribution per share

Earnings per share (basic) Dividend per share

Dividend proposal of EUR 0.30 per share

• Strive to pay stable dividends

linked to the long-term

performance

• One half of net profits over a

business cycle

• Dividend proposal of EUR 0.30

per share for 2014 totaling

EUR 237 million


EUR

4 February 2015

*Distribution of capital

** Dividend proposal

Conclusion

• Transformation in progress

• Sales excluding paper and

divested businesses

– Q4 increased by 1.4% y-o-y

– 2014 increased by 1.3% y-o-y

• Operational EBIT

– Q4 y-o-y 38% higher

– 2014 y-o-y 40% higher

• Net debt /EBITDA 2.6

• Operational ROCE excluding

transformation investment 13.1%

• Dividend proposal EUR 0.30


Capital Markets Day (CMD)

Welcome to CMD

on 28th of May 2015

in London


Fair valuations EUR -79 million impact Mainly Guangxi plantations

• Fair valuations and non-operational items had a negative EUR 79 (positive

EUR 30) million impact

– mainly due to a fair valuation of forest assets in Guangxi Project related to a

change in the harvesting plan and increased future cost estimates

• EPS excluding NRI was EUR 0.06 (EUR 0.15)


EUR million Q4/14 Q4/13

Change Q4/14–

Q4/13 Q3/14

Change Q4/14–

Q3/14 2014 2013

Change 2014–

2013

Operational EBITDA 308 260 18.5% 333 -7.5% 1 269 1 090 16.4%

Equity accounted investments (EAI), operational* 35 28 25.0% 17 105.9% 88 91 -3.3%

Depreciation and impairment excl. NRI -134 -136 1.5% -140 4.3% -547 -603 9.3%

Operational EBIT 209 152 37.5% 210 -0.5% 810 578 40.1%

Fair valuations and non-operational items** -79 30 n/m -23 -243.5% -131 11 n/m

Non-recurring items -225 -392 42.6% 28 n/m -279 -539 48.2%

Operating Profit (IFRS) -95 -210 54.8% 215 -144.2% 400 50 n/m

Operational EBIT by segments

EUR million Q4/14 Q4/13

Change

%

Change

% 2014 2013

Change

%

Q4 14 /

Q4 13

Q3/14

Q4 14 /

Q3 14 14/13

Renewable

Packaging 74 73 1.4% 130 -43.1% 410 318 28.9%

% of sales 9.1% 9.3% 15.3% 12.3% 9.7%

Biomaterials 34 24 41.7% 24 41.7% 89 77 15.6%

% of sales 10.8% 9.0% 8.5% 8.1% 7.5%

Building and Living 10 19 -47.4% 22 -54.5% 89 75 18.7%

% of sales 2.4% 4.1% 5.1% 5.0% 4.0%

Printing and Reading 68 36 88.9% 33 106.1% 172 34 n/m

% of sales 6.9% 3.4% 3.4% 4.4% 0.8%

Other 23 - n/m 1 n/m 50 74 -32.4%

% of sales 3.6% - 0.2% 1.9% 2.8%


Cash flow by divisions in Q4


-100

-50

0

50

100

150

200

250

RenewablePackaging

Biomaterials Building andLiving

Printing andReading

Other

Cash flow from operations, MEUR Cash flow after investments, MEUR

Permanent pulp, paper and board capacity reductions since 2006


Mill Date Grade Capacity reduction, t

Corbehem PM 3 and PM 4 Jun 2006 LWC 250 000

Varkaus PM 1 End 2006 WFC 95 000

Berghuizer Mill Oct 2007 WFU 235 000

Reisholz Mill End 2007 SC 215 000

Summa Mill Jan 2008 Newsprint, uncoated mag, book paper 415 000

Anjala Mill PM1 Feb 2008 Coated magazine paper 155 000

Baienfurt Mill End 2008 FBB 190 000

Kabel Mill PM 3 End 2008 Coated magazine 140 000

Kemijärvi Pulp Mill April 2008 Long-fibre (SW) pulp 250 000

Norrsundet Pulp Mill Dec 2008 Long-fibre (SW), pulp 300 000

Varkaus Mill coreboard machine Dec 2008 Coreboard 100 000

Imatra PM 8 Mar 2010 WFU 210 000

Varkaus PM 2 and PM 4 Sep 2010 Newsprint, directory paper 290 000

Maxau PM 7 Nov 2010 Newsprint 195 000

Hylte PM1 Dec 2012 Newsprint 180 000

Ostroleka PM2 Jan 2013 Containerboard 85 000

Hylte PM2 May 2013 Newsprint 205 000

Kvarnsveden PM11 May 2013 Newsprint 270 000

Veitsiluoto PM1 Apr 2014 Coated magazine 190 000

Corbehem MIll July 2014 LWC 330 000

Total 4 300 000

4 February 2015

Permanent sawn wood capacity reductions since 2006


Mill Date Capacity reduction, m3

Veitsiluoto Sawmill 2006 100 000

Honkalahti Sawmill 2006 90 000

Sauga Sawmill Jun 2007 130 000

Sollenau Sawmill 2007 110 000

Näpi Sawmill 2007-2008 100 000

Kotka Sawmill 2007-2008 70 000

Paikuse Sawmill End 2008 220 000

Zdirec Sawmill 2008 120 000

Ybbs Sawmill 2008 & Jun 2009 200 000

Kitee Sawmill 2008 & Jun 2009 130 000

Varkaus Sawmill Jun 2009 60 000

Tolkkinen Sawmill End 2009 260 000

Kopparfors Sawmill End 2011 310 000

Sollenau Sawmill Mar 2014 150 000

Total 2 050 000

4 February 2015

Net Financial Items


EUR million Q4/

2014

Q4/

2013

Change %

Q414/

Q413

Q3/

2014

Change %

Q414/

Q314

Net interest expense -48 -50 4 -48 4

Foreign exchange gains and losses -31 6 n/m -16 -94

Other financial items. of which -18 -27 33 -7 -157

PIK notes - - -

Fair valuation of interest rate derivatives* 4 -8 -

Fair valuation of long-term debt - - -

Pension costs (IAS 19R) -3 -4 -2

Other items -19 -15 -5

Total net financial items -97 -71 -37 -71 -37

*Not hedge accounted interest rate derivatives.

Net cash flows and foreign exchange hedges Q4 2014


€ million USD SEK GBP

Estimated annual net operating cash flow exposure 1120 -840 460

Transaction hedges as at 31 Dec 2014 -590 460 -240

Hedging percentage for the next 12 months 53% 55% 52%

0

2

4

6

8

10

12

14

16

Paper and Board Wood Products

Curtailments of capacity

34 Stora Enso Q4 and Full Year 2014 Results

% of the

capacity

4 February 2015

Softwood pulp prices Stora Enso’s market pulp is softwood


Source: FOEX

4 February 2015

450

550

650

750

850

950

1 050

07Q

1

07Q

2

07Q

3

07Q

4

08Q

1

08Q

2

08Q

3

08Q

4

09Q

1

09Q

2

09Q

3

09Q

4

10Q

1

10Q

2

10Q

3

10Q

4

11Q

1

11Q

2

11Q

3

11Q

4

12Q

1

12Q

2

12Q

3

12Q

4

13Q

1

13Q

2

13Q

3

13Q

4

14Q

1

14Q

2

14Q

3

14Q

4

US

D/t

onne

Bleached softwood kraft pulp Bleached hardwood kraft pulp

Sensitivity analysis 10% change, impact on operational EBIT


10% increase in Impact*

Market pulp price, total Positive EUR 105 million

*Impact on operational EBIT for the next twelve months.

An increase of energy, wood or chemical and filler prices or decrease of pulp prices, as well as weakening of

the currencies would have the opposite impact.

10% decrease in Impact*

Energy prices Positive EUR 9 million

Wood prices Positive EUR 182 million

Chemical and filler prices Positive EUR 67 million

10% strengthening against Euro

in the value of Impact*

US dollar Positive EUR 112 million

Swedish krona Negative EUR 84 million

British pound Positive EUR 46 million

Pulp sensitivity analysis 10% change in prices, impact on operational EBIT


10% increase in Impact*

Softwood pulp prices Positive EUR 45 million

Hardwood pulp prices Positive EUR 35 million

Fluff pulp prices Positive EUR 15 million

Dissolving pulp prices Positive EUR 10 million

Market pulp price, total Positive EUR 105 million

* Impact on operational EBIT for the next twelve months. A decrease of pulp prices would have the opposite impact.

Pulp wood and saw log prices Wood prices in Finland

Source: METLA


0

10

20

30

40

50

60

70

80

06

Q1

06

Q2

06

Q3

06

Q4

07

Q1

07

Q2

07

Q3

07

Q4

08

Q1

08

Q2

08

Q3

08

Q4

09

Q1

09

Q2

09

Q3

09

Q4

10

Q1

10

Q2

10

Q3

10

Q4

11

Q1

11

Q2

11

Q3

11

Q4

12

Q1

12

Q2

12

Q3

12

Q4

13

Q1

13

Q2

13

Q3

13

Q4

14

Q1

14

Q2

14

Q3

14

Q4

EU

R/m

3

Pulpwood, Pine Sawlogs, Pine

Paper for recycling prices


German RCP price development. free delivered

Source: Verband Deutscher Papierfabriken/Stora Enso

4 February 2015

0,0

40,0

80,0

120,0

160,0

200,0

07

Q1

07

Q3

08

Q1

08

Q3

09

Q1

09

Q3

10

Q1

10

Q3

11

Q1

11

Q3

12

Q1

12

Q3

13

Q1

13

Q3

14

Q1

14

Q3

EU

R/tonne

Mixed OCC De-inking

MEUR

Other loans / liabilities Bonds Commercial paper

Revolving Credit Facility € 700 million matures in January 2018 and is fully undrawn

Maturity profile Q4 2014


0

200

400

600

800

1 000

1 200

2015 2016 2017 2018 2019 2020 2021 2022-2035 2036

Energy balance* Q4 2014

Impact** on operating profit from

10% change in: EUR million p.a.

Electricity market price ~2

Fossil fuel price ~7

**) Remaining impact on non-hedged volume

4 February 2015 Stora Enso Q4 and Full Year 2014 Results

*) Pulp. paper and board mills. Europe and overseas

41

Stora Enso Electricity procurement* Q4 2014

4 February 2015 Stora Enso Q4 and Full Year 2014 Results

*) Pulp. paper and board mills. Europe and overseas

42 42

Global Responsibility update KPI results 2014 – 60% on target (1/2)


Focus Area Key Performance Indicator Target 2014

/LT target 2014

Status

vs Target

Comments

Pe

op

le &

Eth

ics

Health &Safety

TRI rate (Incidents per 1m working

hours) < 5 by end 2015

12,5

The annual TRI and LTA rates

continued to improve. In 2014 there

were 2,5 times as many safety

observations than in 2013.

Actions: Safety leadership training

program initiated - move from

compliance driven approach to

value based safety culture.

LTA rate (lost time accidents per 1m

working hours) <1 by end of 2015

5,2

Human Rights Extent of implementation of the

Group's approach to human rights

issues.

Human Rights Assessment to be

conducted in all countries with

production units, forestry and/or

plantation operations by end of

2014.

100 % All units completed.

Ethics &

Compliance

Employees' perception of adherence

to Code of Conduct (YourVoice)

Positive trend in annual employee

survey. 69 %

Clear improvement; results

reviewed. Introduction of E&C index

in 2015.

Sustainable

Leadership Leadership Index (YourVoice)

Positive trend in annual employee

survey 76,0 Improvement. Results reviewed.

Responsible

Sourcing

% of supplier spend covered by

supplier Code of Conduct (CoC)

Cover 80% of the supplier spend on

material and services with the

Supplier Code of Conduct before

the end of 2014. 90% target by end

of 2016.

76,9%

Actions: Leadership focus /

personal targets, training for

purchasers, focused co-operation

with suppliers.

Global Responsibility update KPI results 2014 – 60% on target (2/2)

Focus Area Key Performance

Indicator

Target 2014

/LT target 2014

Status

vs Target

Comments

Fo

res

t a

nd

Lan

d u

se

Sustainable forestry

% of the lands owned and

managed by the company

covered by forest certification

schemes.

96% of lands certified by end

of 2017 93,0 %

Veracel both FSC and PEFC; MdP

FSC, Laos and Rio Grande do Sul

not certification.

En

vir

on

me

nt

& E

ffic

ien

cy

Climate & Energy CO2 emissions per saleable

ton of pulp, paper and board

(kg/t)

Decreasing trend towards

2025 target (35% below 2006

benchmark level)

-26,5%

Absolute level slightly lower than

2013. Lower production had a

negative impact on relative

performance. Actions: optimisation

efforts on environmental

performance in the production

processes.

Process Water

Discharges

Process water discharge per

saleable ton of pulp, paper and

board (m3/t)

10% below 2005 level by end

2015

-4,3%

Absolute discharges slightly higher

than 2013. Lower production

impact on relative performance.

Actions: optimisation efforts on

environmental performance in the

production processes.

Process Water

Discharges

Chemical Oxygen Demand

(COD) per saleable ton of pulp,

paper and board (kg/t)

10% below 2007 level by end

2015

-5,7%

Absolute level slightly lower than

2013. Lower production impact on

relative performance. Level did not

decrease as planned due to the

issues related to the optimisation

of environmental performance in

the production processes.


Economy & Finance

Stora enso financial result q4 2014