Stora Enso Capital Markets Day 2025 Summary Company Overview - **Company**: Stora Enso (OTCPK:SEOA.Y) - **Event**: Capital Markets Day 2025 - **Date**: November 25, 2025 - **Location**: London Key Industry Insights - **Focus on Renewable Materials**: Stora Enso positions itself as a leader in renewable materials, aiming to replace fossil-based products with renewable alternatives, particularly in packaging [6][10][23]. - **Market Dynamics**: The global packaging industry is transitioning towards sustainability, with over half of consumers prioritizing recyclability and carbon footprint in their purchasing decisions [26][27]. Core Company Strategies - **Strategic Review and Demerger**: Stora Enso is undergoing a strategic review, including the demerger of its Swedish forest assets, which will create two distinct companies focusing on renewable materials and forest management [10][12]. - **Financial Targets**: The company aims to achieve a growth rate of at least 4% per annum and an adjusted EBIT margin above 10% [11][52]. - **Customer-Centric Innovation**: Stora Enso emphasizes innovation driven by customer needs, with 16% of packaging material sales coming from new products launched in the last five years [30]. Financial Performance and Goals - **Sales Composition**: Packaging currently represents about 60% of total sales, a significant shift from 80% being printing papers in the early 2000s [8][9]. - **Profitability Challenges**: The company acknowledges low cash flow and profitability, exacerbated by high wood costs and geopolitical uncertainties affecting consumer spending [23][24]. - **Cost Management Initiatives**: Stora Enso has implemented Value Creation Programs (VCP) that have already generated EUR 850 million in profit impact, with an additional EUR 500 million to EUR 700 million in potential savings identified [41][58]. Investment and Growth Opportunities - **Acquisitions and Investments**: Recent acquisitions, such as Young Packaging, and investments in modern production lines are aimed at enhancing the packaging business, which has seen growth rates above 5% annually over the past decade [9][11]. - **Sustainability Initiatives**: The company has helped avoid 14 million tons of CO2 emissions through its renewable products, highlighting its commitment to sustainability [7]. - **Emerging Revenue Streams**: Stora Enso is exploring new revenue opportunities in carbon sequestration and renewable energy projects, including wind and solar parks [22][19]. Operational Efficiency - **Continuous Improvement Culture**: The company has adopted a performance culture focused on operational efficiency, with systematic approaches to reduce costs and improve margins [38][41]. - **Integration and Cost Competitiveness**: Stora Enso benefits from backward integration in its production processes, which enhances cost efficiency and supply chain management [33][35]. Conclusion Stora Enso is strategically positioning itself for future growth in the renewable materials sector while addressing current profitability challenges through innovation, operational efficiency, and a focus on sustainability. The upcoming demerger and strategic initiatives are expected to unlock value for shareholders and enhance the company's market position in the evolving packaging industry [10][12][48].

Core Insights - Stora Enso will implement a new financial reporting model and revised financial targets starting January 1, 2026, to enhance its focus on renewable materials and packaging [1] Reporting Structure - The company will transition to a new four-segment reporting model: consumer packaging, integrated packaging, biomaterials, and other, replacing the previous six-segment structure [2] - Consumer packaging will encompass cartonboard, foodservice, and liquid board business areas, while integrated packaging will combine containerboard and packaging solutions [2] - The biomaterials segment will remain unchanged, and the "other" category will include wood and energy business areas [3] Business Review and Financial Objectives - Swedish forest assets and Central European sawmilling and building solutions under review will be reported in the "other" category, with restated comparison figures to be published in Q1 2026 [4] - New financial objectives include an adjusted EBIT margin exceeding 10%, revenue growth above 4%, and a payout ratio over 50% [5] - The company aims for a net debt to adjusted EBITDA ratio below 1x, with a temporary allowance to rise to 2x for strategic investments [5] Recent Financial Performance - In Q3 2025, Stora Enso reported a 28% decline in adjusted EBIT to €126 million, down from €175 million year-on-year, with a negative impact of €45 million from ramping up a consumer board line [6] - The adjusted EBIT margin decreased to 5.5% in Q3 2025 from 7.8% in the same period of 2024 [6]

Core Insights - Yacktman Asset Management sold 135,400 shares of Ingredion, valued at approximately $17.45 million, reducing its stake in the company [2][3] Company Overview - Ingredion is a leading global ingredient solutions provider with a diversified product portfolio and broad geographic reach [5] - The company generates revenue by processing corn and other starch-based materials into ingredients for various applications, including food, beverage, brewing, and industrial uses [8] Financial Performance - Ingredion reported a total revenue of $7.32 billion and a net income of $676 million for the trailing twelve months (TTM) [4] - The company has a dividend yield of 2.98% and has increased its dividend payments by 5% annually over the last decade [10] Stock Performance - As of November 3, 2025, Ingredion's stock price was $114.13, reflecting a 14.85% decline over the past year, underperforming the S&P 500 by 32 percentage points [3] - The stock trades at 10 times earnings, indicating low market expectations [11] Investment Position - Following the sale, Ingredion now represents 2.42% of Yacktman Asset Management's assets under management (AUM), down from 2.9% [3][9] - Despite the reduction, Ingredion remains the 13th-largest holding in Yacktman's portfolio [9]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $353 million, a decrease of $48 million year-over-year [24] - Operating income improved to $9 million, an increase of $26 million compared to the prior year [24] - Adjusted EBITDA was $42 million, down $9 million from Q3 2024 [25] - Adjusted free cash flow year-to-date was negative $83 million, with expectations for improvement in Q4 [25] Business Line Data and Key Metrics Changes - **Cellulose Specialties**: Quarterly net sales were $204 million, down 12% year-over-year, with a 17% decrease in sales volumes but a 7% increase in average sales prices [26] - **Biomaterials**: Quarterly net sales were $8 million, flat compared to the prior year, with operating income decreasing to $1 million [28] - **Cellulose Commodities**: Quarterly net sales were $85 million, down 1% from the prior year, with an operating loss of $13 million [30] - **Paperboard**: Quarterly net sales were $39 million, down 29% year-over-year, with an operating loss of $4 million [31] - **High-Yield Pulp**: Quarterly net sales were $24 million, down 14% compared to the prior year, with an operating loss of $10 million [32] Market Data and Key Metrics Changes - The company faced increased competition in the paperboard market due to new U.S. capacity and EU imports, leading to lower sales volumes and pricing [25][31] - The U.S. FLUF industry exports to China were impacted by a 10% tariff, affecting market dynamics [5][6] Company Strategy and Development Direction - The company aims to increase EBITDA to over $300 million by exiting 2027, focusing on cash generation and capital investment discipline [4] - A significant pricing reset for cellular specialty products is targeted to recapture lost value from inflation [12][42] - The company is pursuing new product development to enhance profitability and market position [10][14] Management's Comments on Operating Environment and Future Outlook - Management believes that the temporary headwinds of 2025 are largely behind, with core business performance stabilizing [57] - The company is confident in achieving a significant pricing reset and improving EBITDA margins through organic growth [23][42] - Management highlighted the importance of achieving positive EBITDA and cash flow for the viability of certain assets before potential divestiture [35][36] Other Important Information - The company has $40 million of committed green debt available to support biomaterials projects [32] - The Altamaha Green Energy project is expected to generate significant returns, with a focus on securing funding [17][46] Q&A Session Summary Question: What operational and financial milestones are needed for paperboard and high-yield pulp assets to be viable for sale? - Management indicated that achieving positive EBITDA and cash flow, along with the completion of USMCA negotiations, are critical milestones [35][36] Question: How does the company plan to refinance given the current leverage ratio? - Management noted that demonstrating a return to historical EBITDA levels will improve leverage profiles and facilitate refinancing [37][38] Question: What is the expected impact of pricing negotiations on future EBITDA? - A 1% increase in pricing is expected to generate an $8 million to $9 million increase in EBITDA, with significant pricing increases needed to recapture lost value from inflation [39][42] Question: Can you elaborate on the new fluff product that avoids tariffs? - The new product is a dissolving wood pulp product that can bypass tariffs, but cost efficiency in production remains a challenge [51][52] Question: What are the major buckets for the additional $20 million in EBITDA improvement projects? - The focus will be on improving reliability, material usage, and implementing automation and predictive maintenance [53][54]

Core Viewpoint - Nordson Corporation (NDSN) is expected to report strong earnings growth, with analysts projecting a profit increase for fiscal Q4 2025 and beyond, despite recent stock performance lagging behind market indices [1][2][3]. Financial Performance - NDSN is valued at a market cap of $13.4 billion and is set to announce its fiscal Q4 earnings for 2025 soon [1]. - Analysts anticipate a profit of $2.93 per share for fiscal Q4 2025, representing a 5.4% increase from $2.78 per share in the same quarter last year [2]. - For fiscal 2025, the expected profit is $10.14 per share, up 4.2% from $9.73 per share in fiscal 2024, with further growth projected to $11.05 per share in fiscal 2026 [2]. Recent Stock Performance - Over the past 52 weeks, NDSN's stock has declined by 3.9%, underperforming the S&P 500 Index, which returned 18.4%, and the Industrial Select Sector SPDR Fund, which increased by 15% [3]. - Following the release of better-than-expected Q3 results, NDSN's shares surged by 3% in the subsequent trading session [4]. Q3 Results - In Q3, NDSN reported a revenue increase of 12.1% year-over-year to $741.5 million, exceeding consensus estimates by 2.8% [4]. - The adjusted EPS for Q3 was $2.73, reflecting a 13.3% increase from the previous year and surpassing analyst expectations by 3.8% [4]. Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for NDSN, with five out of eleven analysts recommending "Strong Buy" and six suggesting "Hold" [5]. - The mean price target for NDSN is $257.56, indicating an 8.1% potential upside from current levels [5].

Core Insights - ZimVie Inc. has become a privately held company following its acquisition by ARCHIMED, an investment firm focused on healthcare industries [1][2] - The acquisition involved ARCHIMED purchasing all outstanding shares of ZimVie stock at a price of $19.00 per share, leading to ZimVie's common stock being delisted from NASDAQ [2] Company Overview: ZimVie - ZimVie is a global leader in the dental implant market, developing and delivering a comprehensive range of products for dental tooth replacement and restoration [4] - The company is headquartered in Palm Beach Gardens, Florida, and aims to enhance smiles and confidence through its innovative dental solutions, including implants and digital workflows [4] Company Overview: ARCHIMED - ARCHIMED is a leading investment firm with a focus on healthcare industries, managing €8 billion across various funds [5] - The firm combines operational, medical, scientific, and financial expertise to support healthcare businesses in areas such as MedTech, Biopharma, and Diagnostics [5] - ARCHIMED is committed to impact investing and aims to help partners innovate and expand their services [5]

Core Viewpoint - ZimVie Inc. has received approval from its stockholders for the acquisition by an affiliate of ARCHIMED, with the merger expected to close on October 20, 2025, pending all conditions being met [1][2]. Company Overview: ZimVie - ZimVie is a global leader in the dental implant market, focusing on developing, manufacturing, and delivering a wide range of products for dental tooth replacement and restoration [3]. - The company aims to enhance smiles, function, and confidence through its comprehensive solutions, which include dental implants, biomaterials, and digital workflow solutions [3]. - ZimVie operates from its headquarters in Palm Beach Gardens, Florida, and has additional facilities worldwide [3]. Company Overview: ARCHIMED - ARCHIMED is a prominent investment firm with a focus on healthcare industries, operating in Europe, North America, and Asia [4]. - The firm combines operational, medical, scientific, and financial expertise to act as both a strategic and financial partner for healthcare businesses [4]. - ARCHIMED manages €8 billion across various funds and emphasizes impact investing through its EURÊKA Foundation [4].

Economic Overview - Economic uncertainty is affecting businesses and consumers in the U.S. due to ongoing tariff wars, yet the U.S. stock markets have reached record highs with a 14% year-to-date gain [1] - Analysts at Goldman Sachs suggest that investors should diversify their focus beyond a concentrated group of stocks that have driven market highs, as opportunities are emerging across various regions, sectors, and styles [2] FMCG Industry Insights - The global FMCG market is projected to grow at a compound annual growth rate (CAGR) of 3.8% from 2025 to 2032, reaching $18.96 trillion, driven by shifts in consumer behavior and technological innovations [5] - Companies in the FMCG sector are well-positioned to withstand economic challenges due to the consistent demand for their products, which are typically low-priced [4] Investment Strategy - The best FMCG stocks are characterized by prudent financial management, healthy balance sheets, and sustainable profit margins, allowing them to navigate market fluctuations while providing shareholder returns through dividends and buybacks [6] - A methodology was employed to identify top FMCG stocks, focusing on those with an upside potential of over 20% and popularity among elite hedge funds in Q2 2025 [8][9] Company Highlights - **Dollar General Corporation (NYSE:DG)**: Stock upside potential of 21.57%, with 55 hedge fund holders. The stock is viewed positively due to its underperformance relative to the sector and signs of operational improvement [10][11][12] - **Ingredion Incorporated (NYSE:INGR)**: Stock upside potential of 23.19%, with 34 hedge fund holders. The company anticipates sales growth of 2% to 4% over the next two years and a 7% to 9% CAGR in adjusted EPS through 2027 [14][15][16] - **Smithfield Foods Inc. (NASDAQ:SFD)**: Stock upside potential of 23.91%, with 27 hedge fund holders. The company recently confirmed a secondary public offering of 19.53 million shares priced at $23.35 each, with no proceeds going to Smithfield [17][18][19]

Financial Data and Key Metrics Changes - In Q2 2025, revenue was $340 million, down $79 million year-over-year. Operating loss was $1 million, a decline of $29 million compared to the prior year. Adjusted EBITDA was $28 million, a decrease of $40 million year-over-year [35][36][37] - Full year 2025 adjusted EBITDA guidance was revised to a range of $150 million to $160 million, implying second half EBITDA of approximately $105 million to $115 million [37] Business Line Data and Key Metrics Changes - In the cellulose specialties segment, net sales decreased by $33 million to $208 million, with a 3% increase in sales prices offset by a 15% decline in sales volumes. Operating income declined by $21 million year-over-year to $29 million [38] - The biomaterials segment saw net sales decline by $2 million year-over-year to $6 million, with adjusted EBITDA margin dropping to 17% from 25% in the prior year [39] - The paperboard segment's net sales decreased by $13 million year-over-year to $47 million, reflecting a 23% decline in sales volumes and a 3% decrease in prices [40] - The high yield pulp segment experienced a net sales decrease of $4 million year-over-year to $29 million, driven by an 11% decline in sales prices [41] Market Data and Key Metrics Changes - The company faced approximately $59 million in EBITDA headwinds in 2025, primarily from tariff-related uncertainty, foreign exchange losses, operational disruptions, and noncash environmental charges [6][7][8] - The cellulose specialty market is expected to grow, with industry analysts forecasting sustained annual price increases of approximately 4% to 6% [19] Company Strategy and Development Direction - The company plans to nearly double its EBITDA over the next two years, focusing on accelerating revenue growth, expanding margins, and achieving exceptional returns on strategic growth investments [5][6] - A divestiture of non-core paperboard and high yield pulp businesses is anticipated, transforming the company into a more focused entity on core businesses [17][18] - The company aims to capture market share growth opportunities in the cellulose specialties market, leveraging its excess capacity [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the extraordinary challenges faced in 2025 are largely behind them, with expectations for accelerating growth and profitability in subsequent quarters [6][8] - The company highlighted a strong liquidity position of approximately $202 million, including $71 million in cash, which supports its strategic initiatives without shareholder dilution [31] Other Important Information - The company is targeting around $10 million in corporate expense reductions and anticipates $20 million in operational savings from various initiatives [21] - The biomaterials initiative is expected to generate significant cash flows from high-value products, with a projected annual EBITDA contribution of $8 million to $10 million from the Tardis bioethanol project [25][26] Q&A Session Summary Question: Timeline for dissolving wood pulp fluff product approval for sale in China - Management indicated that trials are ongoing, and if successful, commercialization is expected as they approach 2026 [43][44] Question: Structural cost reduction initiatives and timing of execution at Temiscaming - Most of the $24 million capital for cost savings will be spent in 2025, with expected realization of $30 million in savings in 2026 [47][49] Question: Incremental EBITDA within cellulose specialties and capital deployment in 2027 - The $30 million growth is tied to the substitution of cellulose specialties for commodities, with a focus on high-return projects for capital deployment [56][64] Question: Confidence in ramping up biomaterials business and market share - Management expressed high confidence in ramping up construction and commercialization of biomaterials projects, with commercial agreements in place to support market entry [83][84]

Financial Performance & Challenges - RYAM reported Q2 2025 revenue of $340 million, a decrease of $79 million compared to Q2 2024[59] - The company's Adjusted EBITDA for Q2 2025 was $28 million, down $40 million from Q2 2024[59] - RYAM faces an Adjusted Free Cash Flow deficit of $(52) million year-to-date[59] - The company's 2025 EBITDA guidance is projected to be in the range of $150 million to $160 million[14, 59] Segment Performance - Cellulose Specialties reported Q2 2025 sales of $208 million with an Adjusted EBITDA of $46 million, representing a 22% margin[60] - Cellulose Commodities experienced a negative Adjusted EBITDA of $(2) million on sales of $59 million, with a margin of (3%)[69] - Paperboard sales were $47 million with an Adjusted EBITDA of $5 million, resulting in an 11% margin[75] - High-Yield Pulp reported sales of $29 million and a negative Adjusted EBITDA of $(7) million, with a margin of (24%)[80] Strategic Initiatives & Outlook - RYAM aims to restore Temiscaming's profitability, targeting a $35 million improvement and positioning it for potential divestiture in 2026[22] - The company anticipates a 2027 run-rate EBITDA of $308 million for its core business, excluding the AGE project[26] - RYAM expects to generate approximately $30 million of cumulative incremental EBITDA by 2027 by capturing Cellulose Specialties market growth[35] - BioNova is expected to invest $110 million to generate ~$39 million in EBITDA, implying a build multiple of 28X[41]