Stora Enso Oyj's share-based long-term incentive plan for 2023-2025

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Feb 10, 2023, 02:27 ET

STORA ENSO OYJ STOCK EXCHANGE RELEASE 10 February 2023 at 9:00 EET

HELSINKI, Feb. 10, 2023 /PRNewswire/ -- The Board of Directors of Stora Enso has decided on a new plan for 2023–2025 under the Company's share-based long-term incentive programme. The purpose of the plan is to incentivise and align management with shareholder interests and the long-term strategy of the Company. This will be done through setting measurable and long-term financial, strategic and ESG (Environmental, Social and Governance) targets.

The long-term incentive plan consists of performance shares (Performance Share Plan) with a three-year vesting period, and selectively restricted shares (Restricted Share Plan) with a three-year retainment period.

The long-term incentive plan includes ESG targets in order to strengthen the leadership's long-term commitment to the Company's sustainability agenda. The earnings criteria for the Performance Share Plan are Earnings Per Share (EPS) (40% weight) and relative Total Shareholder Return (TSR) (40% weight). The non-financial ESG targets represent a 20% weight, allocated as: CO₂ emission reduction (10% weight), and diversity and inclusion (10% weight). The target levels for EPS are decided and set ahead of each one-year period. The target levels for relative TSR and ESG performance are set for the three-year plan. The potential payout is based on the Company's performance in relation to the targets over the three-year plan period. Share rewards will be paid in Stora Enso R shares, where legally possible.

The long-term incentive plan for the period 2023–2025 covers a maximum of 300 employees. The long-term incentive plan for members of the Stora Enso Group Leadership Team consists of performance shares only.

The maximum value of the plan is set at EUR 20 million at grant, which corresponds to approximately 1,449,000 shares at the share price on 9 February 2023.

No new shares will be issued in connection with the execution of the plan, and there is no dilutive effect on the number of Stora Enso's registered shares. Besides attainment of the performance criteria, the share reward is subject to continuation of employment. The share rewards earned within the plan for 2023–2025 will be delivered in 2026. Applicable taxes will be deducted before shares are delivered to the employees.

For further information, please contact:
Carl Norell
Press officer
tel. +46 72 2410349

Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 2107691

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

STORA ENSO OYJ

CONTACT:

For further information, please contact:
Carl Norell
Press officer
tel. +46 72 2410349

Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 2107691