Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Day (November 2018)
16 slides from Stora Enso Oyj Class A's investor day presentation, Nov 7, 2018
Slide 1: Solid platform for profitable growth in the bioeconomy
Solid platform for profitable growth in the bioeconomy Annica Bresky EVP, Consumer Board division
Slide 2: We are well positioned in the bioeconomy
We are well positioned in the bioeconomy Sales by product Liquid Packaging Board Folding Boxboard 36% Nr 1 in LPB globally Food Service Board 12% Nr 1 in LPB, CUK and SBS in Europe Coated Unbleached Kraft 30% Solid Bleached Sulphate 70 2 516 MEUR +5.6% countries sales 2017 Q3 YTD 2018 Others +2.5% G
Slide 3: Our strategy provides a solid platform…
Our strategy provides a solid platform… Global leader in attractive Customer driven innovations Competitive and end-use segments based on renewable materials well-positioned assets 3 7 November 2018 Stora Enso CMD
Slide 4: …delivering sustainable profitable growth…
…delivering sustainable profitable growth… 4 7 November 2018 * LTM = Last twelve months Stora Enso CMD
Slide 5: … and temporary profitability headwinds are addressed
… and temporary profitability headwinds are addressed through profit improvement actions CONSUMER BOARD DELIVERIES CHEMICAL PULP PRICE DEVELOPMENT 1 050 (1 000t/quarter) (EUR/ t) Softwood 736 770 780 Hardwood 603 NET EXPOSURE TO PURCHASED PULP (% purchased pulp to total pulp consumption) 15% 7% 2015
Slide 6: Attractive end-use segments offer significant opportunities …
Attractive end-use segments offer significant opportunities … GLOBAL PACKAGING ADDRESSABLE MARKET FOR PAPER BOARD’S SEGMENT GROWTH MATERIALS MARKET CONSUMER BOARD SHARE OF TOTAL PACKAGING ( p.a. – 2022) Food & Food & Dairy Dairy +2.3% 27% 50% ~400 Beverages +2.6% BEUR 8% Beverages Industrial 5% Heal
Slide 7: … while demand for virgin fibre boards continues to be strong, 2.6% p.a by 2030
… while demand for virgin fibre boards continues to be strong, 2.6% p.a by 2030 +1.8% (5.3 mt) +1.2% +4.3% (6.9 mt) (7.3 mt) +2.5% +3.4% (0.2 mt) (3.3 mt) +3.3% Virgin fibre board grades: (1.4 mt) Coated Unbleached Kraft (CUK) Solid Bleached Sulphate (SBS) Liquid Packaging Board (LPB) Folding Box Bo
Slide 8: Powerful trends impact packaging, our products can meet consumers’ new demands
Powerful trends impact packaging, our products can meet consumers’ new demands Reassure • Natural • Accountable • Sustainable Enable CONSUMER • Functional DEMANDS • Time-saving • Easy-to-use Enthuse • Engaging • Interactive • Connected 8 7 November 2018 Stora Enso CMD
Slide 9: Our target is 25% of sales from new products and services
Our target is 25% of sales from new products and services REPLACING POUCHES FOR LOW TO REPLACING POUCHES WITH HIGH PE-FILMS IN CUPS MEDIUM SHELF LIFE LIDS ALUMINIUM FOIL BARRIER PROPERTIES BIO-BARRIERS AND FILMS GLOBAL MARKET SIZE ~80 BEUR 2019-2021 2021-2023 2023-2025 CAPS, CLOSURES BIOCOMPOSITES &
Slide 10: We have leading positions in attractive segments ...
We have leading positions in attractive segments ... CONSUMER BOARD MARKET SHARE (CAPACITY) POTENTIAL OULU CONVERSION Global Europe Global Europe Global Europe Global Europe SBS FBB LPB CUK 55% 80% 450 000 tonnes of new CUK capacity in Oulu, enables further growth also in 6% 17% existing mills 55% S
Slide 11: … and for the potential Oulu conversion, market fundamentals are strong
… and for the potential Oulu conversion, market fundamentals are strong OPERATING RATE AND CAPACITY CHANGES IN THE CARTON BOARD INDUSTRY EUROPE NORTH AMERICA 12% 96% 12% 96% Capacity change Operating rate Capacity change Operating rate 10% 10% 94% 94% 8% 8% 6% 92% 6% 92% 4% 4% 2% 90% 2% 90% 0% 0% 88
Slide 12: We continue to grow our premium offering in Beihai…
We continue to grow our premium offering in Beihai… DEMAND AND CAPACITY IN CHINA PRICING OF PREMIUM AND COMMODITY GRADE VIRGIN FIBRE BOARD VIRGIN FIBRE BOARD IN CHINA (Million tons) (RMB/t) 13.4 13.4 11.9 11.9 Capacity 10.3 Demand 8.5 7.8 7.2 Premium grades Commodity grades 2016 2018e 2020f 2025f 20
Slide 13: … and profitability improvements are ongoing
… and profitability improvements are ongoing . Fully qualify our liquid packaging board TRADITIONAL FORESTRY STORA ENSO FORESTRY OPERATIONS OPERATIONS Launch premium carton board grades Further develop service offering Stable production at design capacity Adjust product mix to optimise division prof
Slide 14: We deliver sustainable and profitable growth
We deliver sustainable and profitable growth Grow faster than the global packaging market (3-4% per year) Innovation driven from existing customer base Competitive Secured assets with supply of further renewable development raw materials potential Leading Global position in footprint attractive end
Slide 15: 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 16: The Renewable Materials Company
THE RENEWABLE MATERIALS COMPANY