Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Day (November 2018)
19 slides from Stora Enso Oyj Class A's investor day presentation, Nov 7, 2018
Slide 1: Creating value in the bioeconomy
Creating value in the bioeconomy CEO Karl-Henrik Sundström
Slide 2: We are perfectly positioned to benefit from the megatrends
We are perfectly positioned to benefit from the megatrends… Global warming Growing middle class Increasing demand Eco awareness for raw material that is renewable, Changing lifestyles reusable and fossil free Urbanisation Growing population Digitalisation 2 7 November 2018 Stora Enso CMD
Slide 3: …as The renewable materials company
…as The renewable materials company Everything that’s made with fossil- based materials today can be made from a tree tomorrow 3 7 November 2018 Stora Enso CMD
Slide 4: Our transformation strategy continues… delivering sustainable profitable growth
Our transformation strategy continues… …delivering sustainable profitable growth Customer insight Strategic growth Developing offerings investments according to Capex at or below customers’ depreciation and requirements to create depletion* value and growth, with over the business cycle sales excell
Slide 5: We are well-positioned for profitable growth – strength of our portfolio
We are well-positioned for profitable growth – strength of our portfolio Sales 2017 Market growth Position EUR and % of group’s sales 2016–2030 for virgin board: Consumer Board + 2.5 BEUR 25% Europe 1.8%, North America 1.2%, Latin America 3.3%, China 4.3%, Rest of Asia 3.4%, Africa 2.5% #1 in LPB, F
Slide 6: We are investing more in innovation and R&D
We are investing more in innovation and R&D… Peers: Borregaard IP Metsä Board Mondi SCA Smurfit Kappa UPM Source: Stora Enso, annual reports 2017 6 7 November 2018 Stora Enso CMD
Slide 7: …and that is accelerating our profitable growth
…and that is accelerating our profitable growth In 2017 7% Value added of our sales came services in Bio barriers from new products corrugated packaging and services High-quality Building Intelligent container- components packaging boards and systems Long-term target 15% of our sales is expected to
Slide 8: We see many new opportunities to replace fossil-based materials
We see many new opportunities to replace fossil-based materials… Lignin-based products Biocomposites Liquid packaging MFC • LineoTM by Stora Enso • DuraSenseTM by Stora Enso • Source reduction • Carbon fibre for wood-based biocomposites • Carbon for energy storage • Less fossil-based materials MFC f
Slide 9: Iceland Foods chooses our Trayforma to replace plastics
…Iceland Foods chooses our Trayforma to replace plastics • Iceland Foods, the UK’s leading specialist retailer in the frozen food category, launched the first plastic-free pledge for its own brand products for a UK supermarket − Target is to be plastic-free by 2023 through an overhaul of their entir
Slide 10: Digitalisation gives us a competitive advantage
Digitalisation gives us a competitive advantage Gain competitive advantage by making full use of digitalisation, optimising GOAL current business and enabling new business models Customer Industrial Smart • Recently awarded as Finland’s most Engagement Digitalisation Backoffice startup-friendly comp
Slide 11: We control ~30% of our wood raw material
We control ~30% of our wood raw material – a critical advantage in the bioeconomy Stora Enso’s forest assets* Pulpwood plantation availability and wood cost (49) (30) (36) (40) (56) (71) million Standing Annual (30) m3sub stock procurement (51) (48) (54) (48) Sweden 78.5 9.4 Finland 20.8 13.5 Potent
Slide 12: Oulu Mill conversion opportunity for packaging
Oulu Mill conversion opportunity for packaging Potential reduction of Stora Enso paper capacity by 20% Feasibility study to convert Oulu Mill 700 MEUR investment Brown-based cartonboard line (450 kt/a) Kraftliner line (400 kt/a) Integrated kraft pulp (500 kt/a) Integrated new CTMP plant (350 kt/a) P
Slide 13: Our formula for success continues
Our formula for success continues… Sustainable profitable growth 4–6%* Strong cash flow generation Capex ~3 BEUR** Dividend ~50% of EPS Net debt to operational EBITDA <2.0x Debt to equity <60% * Excluding Paper ** Next five years 13 7 November 2018 Stora Enso CMD
Slide 14: …sustaining dividend growth…
…sustaining dividend growth… CAGR: 9.4% • Dividends linked to the long- term performance • 50% of EPS over the cycle Dividend of EUR 0.41 per share for 2017 totaling EUR 323 million was paid in April 2018 * Distribution of capital 14 7 November 2018 Stora Enso CMD
Slide 15: …and investing selectively in M&A to sustain profitable growth
…and investing selectively in M&A to sustain profitable growth Acquisitions to be considered in the following areas #1 #2 #3 To strengthen To strengthen New products Examples relative market existing synergies and technologies share in focused supporting our #2 Bergvik Skog areas strategies #3 Virdi
Slide 16: We have several attractive profitable growth options
We have several attractive profitable growth options 16 7 November 2018 Stora Enso CMD
Slide 17: Power of a tree
POWER OF A TREE Creating value in the bioeconomy
Slide 18: 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 19: The renewable materials company
THE RENEWABLE MATERIALS COMPANY