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Stora Enso’s long-term financial targets
Stora Enso has revised its long-term financial targets. There are new Group level targets for growth and return on capital employed (ROCE). The divisional targets for Packaging Solutions and Forest will also change. Also, dividend policy is updated to distribute 50% of EPS excluding fair valuation over the cycle. Other targets remain unchanged.
| 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 Operating Capital