Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Jefferies Investor Conference 2020
22 slides from Stora Enso Oyj Class A's conference presentation, Aug 6, 2020
Slide 1: Resilient in the headwinds
Resilient in the headwinds CFO Seppo Parvi SVP, Head of IR Ulla Paajanen 6 August 2020
Slide 2: Disclaimer
Disclaimer It should be noted that Stora Enso and its business are exposed to various risks and uncertainties and certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profi
Slide 3: Solid profitability and cash flow
Solid profitability and cash flow Strong performance from Packaging Materials and Forest divisions Q2 2020 year-on-year • Sales decreased by 19% to 2 114 (2 608) MEUR and decreased by 12% excluding Paper • Operational EBIT decreased to 178 (299) MEUR, excluding Paper to 217 (249) MEUR • FV of biolog
Slide 4: Staying resilient as uncertainty continues
Staying resilient as uncertainty continues • Health and safety of our employees continues to be a key priority • Proactive and extensive measures taken − Secured business continuity and ability to serve our customers − Minimal impact on operations, adapt according to demand − Extensive precautions f
Slide 5: Profit protection programme of 350 MEUR continuous and 85 MEUR one-time savings
Profit protection programme of 350 MEUR continuous and 85 MEUR one-time savings 40 MEUR continuous and 10 MEUR one-time savings in Q2 5 6 August 2020 Stora Enso
Slide 6: Strong liquidity and good access to funding sources
Strong liquidity and good access to funding sources • Actions to secure liquidity: − 1 062 MEUR cash and cash equivalents at the end of Q2 2020 − 600 MEUR committed revolving credit facility fully undrawn − 400 MEUR additional committed funding facilities through bilateral arrangements signed and un
Slide 7: Everything that's made from fossil-based materials today can be made from a tree tomorrow
Everything that’s made from fossil-based materials today can be made from a tree tomorrow.
Slide 8: Substituting materials from finite resources is our key competitive advantage
Substituting materials from finite resources is our key competitive advantage Our total climate benefit: Our products substitute 12 fossil-based products, saving Mt CO2 20 Mt CO2 Resource efficient value chain, Our forests are carbon emissions: neutral and absorb 11 Mt CO2 3 Mt CO2 8 6 August 2020 S
Slide 9: The new divisional structure strengthens our strategy execution
The new divisional structure strengthens our strategy execution Growth Cash Packaging Materials Packaging Solutions Biomaterials Paper Consumer board and Corrugated packaging No changes No changes containerboard business together with recently created formed fiber unit Wood Products Forest No change
Slide 10: We continue building on our strengths and making choices in our innovation portfolio
We continue building on our strengths and making choices in our innovation portfolio Our portfolio gives us Customer centricity and Innovations for growth pole position to make choices ecosystem of partners support offer climate positive alternatives for future growth growth and innovation for fossi
Slide 11: Examples of new products already in commercial use
Examples of new products already in commercial use Trayforma Biodegradable straw Paperboard for trays with Sulapac for food packaging To combat the global 64% lower carbon footprint problem of plastic waste than plastic trays Cupforma Natura Solo™ DuraSense Renewable paperboard Biocomposites for pap
Slide 12: Accelerating the replacement of fossil-based materials
Accelerating the replacement of fossil-based materials • 10 MEUR investment to build a pilot facility for producing bio-based carbon materials based on lignin • Wood-based carbon utilised as a crucial component in batteries • Applications: consumer electronics, the automotive industry and large- sca
Slide 13: Oulu paper mill is converting to packaging board as planned
Oulu paper mill is converting to packaging board as planned Reducing our paper capacity by 20% Kraftliner global demand (mt) • 450 000 t/a high-quality virgin-fibre-based kraftliner 45 +8 080kt 40 Global CAGR 2% • 530 000 t/a unbleached softwood pulp 35 • Expected to meet Packaging Material’s operat
Slide 14: The transformation will show in the company structure
The transformation will show in the company structure 38% 18% from Paper from Paper Net sales split Net sales split after Oulu Mill in 2014 conversion* 62% 82% from growth from growth businesses businesses *Illustration based on Q2/2020 market situation for rolling 12 months 14 6 August 2020 Stora E
Slide 15: We are one of the largest private forest owners in the world
We are one of the largest private forest owners in the world Total biological asset value in balance sheet ~ 4.6 BEUR Swedish forests Tornator 1 400 000 ha of forest land Stora Enso’s share 256 000 ha in Finland, 27 000 Fair value: 3.4 BEUR (30 June 2020) ha in Estonia and 5 000 ha in Romania Fair v
Slide 16: We are increasing sustainable yield without compromising biodiversity
We are increasing sustainable yield without compromising biodiversity Increased harvesting by 10–15% in our Swedish forests Future x million m3/a 2020 With R&D and 4.0 million m3/a accurate & timely With increasing forest standing stock management practices Bergvik historically 3.5 million m3/a 16 6
Slide 17: Despite short-term challenges, demand for pulp is expected to grow 2% long term
Despite of short-term challenges, demand for pulp is expected to grow 2% on long term Textiles, nonwovens Hygiene Pulp consumption increase (Mt) 107 Mt market, growing 3%/y 590 billions of converted unit, growing 3.5%/y 6.8 Mt market pulp (dissolving) 6.2 Mt market pulp (fluff) 8 6 Carton board Pape
Slide 18: Resilient in the headwinds and well prepared for recovery
Resilient in the headwinds and well prepared for recovery • Proactive and extensive precautions to protect the health and safety of our employees and secure business continuity • Solid profitability and cash flow under current circumstances − Strong performance by Packaging Materials and Forest − Wo
Slide 19: Welcome to Stora Enso virtual CMD on 11 November 2020
Welcome to Stora Enso virtual CMD on 11 November 2020 19 6 August 2020 Stora Enso
Slide 20: Sponsored ADR Programme
Sponsored ADR Programme Stora Enso has established a sponsored Level I ADR programme in the US. The ADRs trade on the premier tier of Over-The-Counter (“OTC”) market in the US. Details are as follows: Ticker Symbol SEOAY CUSIP 86210M106 Ratio 1 ADR : 1 Ordinary Shares ADR depositary Citibank Share p
Slide 21: Power of a tree
POWER OF A TREE Creating value in the bioeconomy 21 6 August 2020 Stora Enso
Slide 22: The renewable materials company
THE RENEWABLE MATERIALS COMPANY