Stora Enso's Strategic Review to Enhance Forest Asset Value

Stora Enso's New Direction for Forest Assets

Stora Enso Oyj is embarking on a significant journey focused on improving its forest assets. This initiative aims to refine its strategy in a manner that emphasizes the company's commitment to renewable packaging. To achieve this, Stora Enso is initiating a thorough strategic review, particularly concentrating on its Swedish forest operations.

Assessing Forest Asset Separation

The strategic review will examine the potential for a partial demerger, with Stora Enso considering separating its forest assets into a distinct entity. This new company would be entirely owned by the current shareholders of Stora Enso. By streamlining operations this way, the company hopes to enhance operational focus and agility, ultimately leading to newly unlocked value.

Dual Focus on Renewable Packaging and Forestry

As Stora Enso progresses with this strategic review, the aim is to create two independent entities. One of these will keep Stora Enso at the forefront of the renewable packaging sector, while the new forest entity will position itself as Europe’s premier listed pure forest company. With this separation, both businesses will be better equipped to harness growth opportunities and maximize their potential in their respective markets.

Recent Developments in Forest Asset Valuation

Stora Enso has already made significant strides in reshaping its asset portfolio, recently agreeing to divest around 175,000 hectares of Swedish forestland for approximately EUR 900 million. Following this divestment, Stora Enso will maintain ownership of over 1.2 million hectares of forestland, affirming its status as one of the largest forest asset holders in the region, with an estimated fair value of EUR 5.8 billion as of recently.

Commitment to Sustainable Forestry

Hans Sohlström, the President and CEO of Stora Enso, highlighted the importance of these forest assets, stating they represent excellence in sustainability and environmental responsibility. He emphasized the strategic review reflects a commitment to enhancing shareholder value while aligning with Stora Enso's long-term objectives. By exploring various alternatives, the company is focused on refining its operational complexity and fully leveraging both its forest and industrial resources.

Looking Ahead: Future Updates

Further insights and updates about the strategic review will be indicated by Stora Enso, with plans to provide more detailed information before the end of the year. These developments will be subject to necessary negotiations and legal considerations across all relevant jurisdictions.

Webcast Announcement

On June 19, Stora Enso will hold an important webcast to discuss the strategic review in detail. Scheduled for 11.00 EEST / 10.00 CEST, it promises to be an informative session available in English, which stakeholders are encouraged to attend.

Stora Enso's Vision for the Future

Stora Enso is dedicated to the idea that all products currently made from fossil-based materials can be made from trees. As a leading force in renewable packaging, biomaterials, and wooden construction, the company emphasizes its role as one of the largest private forest owners globally. In the near past, Stora Enso's workforce comprised around 19,000 employees, contributing to a group sales figure of EUR 9 billion. Its shares are actively traded on Nasdaq Helsinki Oy and Nasdaq Stockholm AB, along with being available in the OTC Markets in the USA as ADRs and ordinary shares.

Contact Information for Inquiries

For more details on this strategic initiative or other queries, you can reach out to:

Carl Norell
SVP Corporate Communications
Tel: +46 72 241 0349

Investor inquiries:
Jutta Mikkola
SVP Investor Relations
Tel: +358 50 544 6061

Frequently Asked Questions

What is the focus of Stora Enso's strategic review?

The strategic review focuses on assessing Stora Enso's Swedish forest assets and exploring their potential separation into a distinct entity.

Why is Stora Enso considering a partial demerger?

The goal of the partial demerger is to enhance operational focus and agility while unlocking the value of both the forest assets and the packaging business.

What recent steps has Stora Enso taken regarding its forest land?

Stora Enso recently divested approximately 175,000 hectares of Swedish forestland, while retaining over 1.2 million hectares of forest.

When will updates about the strategic review be provided?

Stora Enso plans to offer updates on its strategic review by the end of the current year.

How can I learn more about Stora Enso and its initiatives?

For more information, interested parties can contact Stora Enso directly or participate in the scheduled webcast covering the strategic review.

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