Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Shareholder Meeting (March 2019)
53 slides from Stora Enso Oyj Class A's shareholder meeting presentation, Mar 14, 2019
Slide 1: Welcome to the Annual General Meeting
Welcome to the Annual General Meeting
Slide 2: Welcome!
Welcome! Jorma Eloranta, Chairman of the Board of Directors
Slide 3: Stora Enso’s Annual General Meeting
Stora Enso’s Annual General Meeting 14 March 2019
Slide 4: CEO’s report
CEO’s report Karl-Henrik Sundström
Slide 5: Small changes make a big impact
Small changes make a big impact Stora Enso Annual General Meeting 2019
Slide 6: Stora Enso – well positioned for the future
Stora Enso – well positioned for the future BIO DEGRATION & LESS WASTE WASTE ACCUMULATION UNSUSTAINABLE REDUCED CONSUMPTION ABUNDANT To a bioeconomy future RESOURCES CLIMATE EFFECTS CARBON EMISSIONS FINITE RENEWABLE RESOURCES MATERIALS From a fossil world Stora Enso Annual General Meeting 2019
Slide 7: Everything that’s made from fossil-based materials can be made from a tree
Everything that’s made from fossil-based materials today can be made from a tree tomorrow.
Slide 8: Stora Enso progress 2018
Stora Enso progress 2018 EUR 10.5 billion sales EUR 1.3 billion operational EBIT 15.5% Return On Capital Employed Proposed increased dividend by 22% A leader in the bioeconomy Stora Enso Annual General Meeting 2019
Slide 9: Full year results 2014–2018
Full year results 2014–2018 EUR million 2014 2015 2016 2017 2018 Sales 10 213 10 040 9 802 10 045 10 486 Operational EBIT 810 915 884 1 004 1 325 Operational EBIT margin 7.9% 9.1% 9.0% 10.0% 12.6% Operational ROCE 9.5% 10.6% 10.2% 11.9% 15.5% Cash flow from operations 1 139 1 556 1 633 1 492 1 365 C
Slide 10: Full year results 2014–2018
Full year results 2014–2018 EUR million 2014 2015 2016 2017 2018 Sales 10 213 10 040 9 802 10 045 10 486 Operational EBIT 810 915 884 1 004 1 325 Operational EBIT margin 7.9% 9.1% 9.0% 10.0% 12.6% Operational ROCE 9.5% 10.6% 10.2% 11.9% 15.5% Cash flow from operations 1 139 1 556 1 633 1 492 1 365 C
Slide 11: Strategic targets
Strategic targets Years 2014–2018 Group targets 2014 2015 2016 2017 2018 Status Dividend To distribute 50% of EPS over the cycle EUR 0.30 EUR 0.33 EUR 0.37 EUR 0.41 EUR 0.50* Growth** To grow faster than the relevant market 0.9% (YoY) 4.6% (YoY) 3.1% (YoY) 8.5% (YoY) 5.9%*** (YoY) Net debt to operat
Slide 12: Transformation journey continues
Transformation journey continues 2018: Growth businesses 71% of sales and 82% of operational EBIT Sales 2006 Sales 2018 2% -3% 30% 71% 21% 25% 29% Consumer Board 12% Packaging Solutions* 13% 70% Biomaterials 15% Wood Products 16% Paper** Other & eliminations Operational EBIT 2006 Operational EBIT 20
Slide 13: We take the lead in innovation in our industry
We take the lead in innovation in our industry EUR million Stora Enso Annual General Meeting 2019
Slide 14: Accelerating renewable growth with new products and services
Accelerating renewable growth with new products and services % of sales from new products and services 16,0 15 In 2018 14,0 9% of our sales came 12,0 from new products and services 10,0 9 8,0 7 Long-term 6,0 target 15% of our sales is expected 4,0 3,6 to come from new products and services 2,0 1,5 0
Slide 15: Our drivers for accelerating growth
Our drivers for accelerating growth High-quality Value added services in Intelligent containerboards corrugated packaging Biocomposites packaging Next generation liquid Building components Future bio-based and food packaging and systems Bio-barriers chemical intermediates Stora Enso Annual General M
Slide 16: Innovation never happens in isolation
Innovation never happens in isolation Awarded as Finland’s most startup-friendly company TRÄ Group - innovative digital services for wooden buildings Screened ~500 digital start-ups DuraSense™ Profitable growth - deeper collaboration with 17 Husqvarna’s most innovative supplier Piloting MFC films Su
Slide 17: EUR 52 million TreeToTextile investment
EUR 52 million investment to increase dissolving pulp production TreeToTextile partnership to develop woodfibre-based textiles Stora Enso Annual General Meeting 2019
Slide 18: ECO RFID tag – a plastic-free and recyclable solution
ECO RFID tag – a plastic-free and recyclable solution
Slide 19: Biocomposites – in commercial phase
Biocomposites – in commercial phase 19 Stora Enso Annual General Meeting 2019
Slide 20: 1.15 million hectares of productive forest land
1.15 million hectares of productive forest land to direct ownership in Sweden 20
Slide 21: Direct ownership of the forests in Sweden
Direct ownership of the forests in Sweden Stora Enso’s 49% holding Stora Enso’s Swedish Unit of Bergvik Skog in Sweden forests after transaction Financial impacts estimate for Stora Enso Ha (gross land) Ha (‘000) 1 133 1 388 • Bergvik Väst consolidated as a Ha (productive forest) Ha (‘000) 926 1 149
Slide 22: Forests, plantations, and land use
Forests, plantations, and land use We respect the local environment • Renewability requires sustainable forestry that keep forests healthy and productive. − Sustainably managed forests grow forever. • 89% of our wood comes from managed semi- natural forests, the rest from tree plantations. • We know
Slide 23: Stora Enso as a taxpayer
Stora Enso as a taxpayer Close to EUR 1.3 billion total taxes paid EUR million in 2018 Finland Sweden Germany UK China Poland Belgium Austria Brazil Russia Other Total Primary activity Production Production Production Sales Production Production Production Production Production Production and sales
Slide 24: Winning in sustainability
Winning in sustainability Top-ranked in gender balance and gender Included on CDP’s Achieved the highest Ranked the most Ranked “Industry Leader equality by Equileap. Among the top ten Ranked best Included in 2018 Climate A List, recognition level – sustainable listed 2018” in the Sustainable sustai
Slide 25: Taking the lead to combat global warming
Taking the lead to combat global warming Setting ambitious reduction targets for greenhouse gas emissions • Stora Enso was the first forest products company to have • Engagement targets for our suppliers externally approved science-based targets (SBT) to reduce its − 70% of our non-fibre suppliers i
Slide 26: When you want to know more
When you want to know more Read our Annual Report storaenso.com/annualreport2018 Stora Enso Annual General Meeting 2019
Slide 27: Group Leadership Team of Stora Enso
Group Leadership Team of Stora Enso Stora Enso Annual General Meeting 2019
Slide 28: Stora Enso progress 2018
Stora Enso progress 2018 EUR 10.5 billion sales EUR 1.3 billion operational EBIT 15.5% Return On Capital Employed Proposed increased dividend by 22% A leader in the bioeconomy Stora Enso Annual General Meeting 2019
Slide 29: The Renewable Materials Company
storaenso « fresh apple JUICE THE RENEWABLE MATERIALS COMPANY
Slide 30: Auditor’s Report 2018
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Slide 31: Audit 2018
Audit 2018 What we have audited Key audit matters • The consolidated financial • Valuation of biological assets statements • Provisions and contingent liabilities • The parent company’s financial statements Group scoping • We performed audit procedures at 27 reporting components in 11 countries that
Slide 32: To the Annual General Meeting of Stora Enso Oyj
To the Annual General Meeting of Stora Enso Oyj In our opinion • the consolidated financial statements give a true and fair view of the group’s financial position and financial performance and cash flows in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU • the
Slide 33: Adoption of the annual accounts
Adoption of the annual accounts
Slide 34: Dividend
storaenso Dividend THE RENEWABLE MATERIALS COMPANY
Slide 35: Dividend
Dividend The parent company's distributable shareholders' equity on 31 December 2018 amounted to EUR 1 473 289 418.75, including the profit for the financial period of EUR 223 340 113.24. The Board of Directors proposes to the AGM that a dividend of EUR 0.50 per share, total of no more than EUR 394
Slide 36: Discharge of the members of the Board of Directors and the CEO from liability
Discharge of the members of the Board of Directors and the CEO from liability
Slide 37: Shareholders’ Nomination Board Report
Shareholders’ Nomination Board Report Marcus Wallenberg, Chairman
Slide 38: Shareholders’ Nomination Board in 2018–2019
Shareholders’ Nomination Board in 2018–2019 Members • Marcus Wallenberg (Chairman), Harri Sailas, Jorma Eloranta and Hans Stråberg. Activity • Convened 3 times, each member of the Shareholders’ Nomination Board attended all meetings.1 Key action points • Board members election preparations • Board i
Slide 39: Proposed annual remuneration
Proposed annual remuneration Board of Directors Chairman EUR 192 000 Vice Chairman EUR 109 000 Members EUR 74 000 It is proposed that the annual remuneration for the members of the Board of Directors be paid in Company shares and cash so that 40% will be paid in Stora Enso R shares to be purchased o
Slide 40: Composition of the Board of Directors
Composition of the Board of Directors Jorma Eloranta, proposed Chairman Hans Stråberg, proposed Vice Chairman Elisabeth Fleuriot • Chairman of Stora Enso’s Board of • Vice Chairman of Stora Enso’s • Member of Stora Enso’s Board of Directors since April 2017, Vice Board of Directors since April 2017,
Slide 41: New proposed member of the Board of Directors
New proposed member of the Board of Directors Mikko Helander • Born 1960 • M.Sc. (Tech.), honorary title of vuorineuvos • Strong industrial as well as retail operative background and since January 2015 acts as President and CEO of Kesko Oyj. • Prior to his current position, Mr. Helander has acted as
Slide 42: Proposed annual remuneration
Proposed annual remuneration Board of Directors Chairman EUR 192 000 Vice Chairman EUR 109 000 Members EUR 74 000 It is proposed that the annual remuneration for the members of the Board of Directors be paid in Company shares and cash so that 40% will be paid in Stora Enso R shares to be purchased o
Slide 43: Number of members of the Board of Directors
Number of members of the Board of Directors
Slide 44: Election of Chairman, Vice Chairman and other members of the Board
Election of Chairman, Vice Chairman and other members of the Board of Directors
Slide 45: Composition of the Board of Directors
Composition of the Board of Directors Jorma Eloranta, proposed Chairman Hans Stråberg, proposed Vice Chairman Elisabeth Fleuriot • Chairman of Stora Enso’s Board of • Vice Chairman of Stora Enso’s • Member of Stora Enso’s Board of Directors since April 2017, Vice Board of Directors since April 2017,
Slide 46: Auditor’s fees
Auditor’s fees
Slide 47: Election of auditor
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Slide 48: Election of Auditor
Election of Auditor The Board of Directors proposes to the AGM that PricewaterhouseCoopers Oy be elected as auditor of the Company until the end of the following AGM. PricewaterhouseCoopers Oy has notified the company that in the event it will be elected as auditor, Samuli Perälä, APA, will act as t
Slide 49: Authorising the Board to decide on the repurchase of the Company's own shares
Authorising the Board to decide on the repurchase of the Company's own shares
Slide 50: Authorising the Board to decide on the repurchase of own shares
Authorising the Board of Directors to decide on the repurchase of the Company's own shares • The Board of Directors proposes to the AGM that the Board of Directors be authorised to decide on the repurchase of Stora Enso R shares as follows. − The amount of R shares to be repurchased shall not exceed
Slide 51: Authorising the Board to decide on the issuance of shares
Authorising the Board to decide on the issuance of shares
Slide 52: Authorising the Board to decide on the issuance of shares
Authorising the Board of Directors to decide on the issuance of shares • The Board proposes that the AGM authorise the Board to decide on the issuance of Stora Enso R shares on the following terms: − The amount of shares to be issued based on this authorisation shall not exceed a total of 2 000 000
Slide 53: Forward-looking statements 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 profitability; a