Tornator (TORNATOR) CMD 2025 presentation summary

Updated strategy and sustainability focus

• Strategy for 2025–2027 emphasizes quality, added value, sustainability, and partnerships, building on previous initiatives.

• Digital solutions and renewable energy projects are integrated to enhance business and promote sustainable forest management.

• Forestry practices prioritize climate and biodiversity, with a strong focus on employee well-being.

Financial performance and asset growth

• Net sales and adjusted operating profit have grown significantly, driven by higher wood volumes, prices, and wind power development fees.

• Forest asset value has stabilized after significant increases, with 2025 expecting limited fair value change.

• Forest hectares and wood volume have increased through acquisitions, supporting sustainable long-term felling plans.

• Equity ratio remains high despite increased leverage, with LTV below 50% and strong asset backing.

• 22-year IRR stands at 22%, with €613 million in dividends paid since 2002.

Financing and green funding

• Achieved investment grade credit rating and issued a €300 million Green Bond in 2024, refinancing maturing debt and funding acquisitions.

• Outstanding debt at end-2024 is €1,012 million, with a high share of fixed-rate debt and moderate average interest rate near 3%.

• No new long-term debt since 2024; €400 million matures in 2026, with refinancing planned for 2025.

• Green finance covers 86% of Finnish forest acquisitions, with proceeds allocated to double-certified forests.