Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Day (September 2019)
19 slides from Stora Enso Oyj Class A's investor day presentation, Sep 19, 2019
Slide 1: Integrated forest management – our competitive advantage
Integrated forest management – our competitive advantage Jorma Länsitalo, Head of Wood Supply
Slide 2: It all starts in the forest
It all starts in the forest
Slide 3: Creating additional value through supply, innovation and sustainable forest management
Creating additional value through supply, innovation and sustainable forest management… Plantations - picture! Competitive wood supply Innovation Sustainable forest management 3 19 September 2019 Stora Enso Forest and Wood Products Day
Slide 4: Controlling 30% of wood supply and a #1 Nordic position are competitive advantages
…controlling 30% of wood supply and a #1 Nordic position are competitive advantages… #1 Nordic position We control ~30% of our wood raw material consumption Wood procurement by region (million m3 sub) (million m3 sub) Uruguay; 2.1 China; 0.3 Central Mm3 sub Mm3 sub Mm3 sub Brazil; 1.9 Europe; 5.7 18
Slide 5: With our scale, we are the most efficient wood supplier in Northern Europe
…with our scale, we are the most efficient wood supplier in Northern Europe Broadest supplier base gives us price, flexibility and security Million m3 sub 45 +2 +40 -11 40 +14 35 30 29 25 +14 20 15 +6 10 5 4 0 Own forests Long term Private forests B2B Other Total sourcing B2B sales Sales to SE agree
Slide 6: Strong relationships with private forest owners are another competitive advantage
Strong relationships with private forest owners are another competitive advantage 50% of our supply 920 000 forest owners in Finland and Sweden 24 000 wood purchasing agreements with private forest owners Advanced CRM and sales force management Professional services to forest owners • Harvesting and
Slide 7: We are building and globalising innovations to increase efficiency
We are building and globalising innovations to increase efficiency… • Scale benefits in investing in digitalisation and new technologies • In the digital world, marginal cost is zero • Global approach in development and knowledge sharing 7 19 September 2019 Stora Enso Forest and Wood Products Day
Slide 8: Examples of innovation and digitalisation
…and here are examples of innovation and digitalisation “Big Forest Data” and Precision Forestry Digitalising Forest Owner Service Channel Optimised Supply Chain Maximising raw material value 8 19 September 2019 Stora Enso Forest and Wood Products Day
Slide 9: Creating additional value from our own forests
Creating additional value from our own forests Stable and Increasing Return from Land secure asset value wood sales development supply 9 19 September 2019 Stora Enso Forest and Wood Products Day
Slide 10: Today's consumers demand sustainable forestry
Today’s consumers demand sustainable forestry Optimally managed sustainability is a competitive advantage Forest growth Growing forests good for the climate Productivity Protecting biodiversity Limit impact on soil and water Sustainable forestry 100% of our wood from sustainable sources 96% of lands
Slide 11: 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 11 1
Slide 12: Additional yield initiatives with +10% potential
Additional yield initiatives with +10% potential Tree breeding and biotechnology • Increased yield, disease resistance, and improved wood properties Forestry practices – “Precision Forestry” • Best practices world wide • Accurate and timely operations • Efficient use of digital opportunities Sustain
Slide 13: It all starts in the forest
It all starts in the forest
Slide 14: 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 15: Appendix
Appendix THE RENEWABLE MATERIALS COMPANY
Slide 16: Forest division in short
Forest division in short Wood procurement per region, total 38.7 million m3 100% Wood from Uruguay; Central 2.1 China; 0.3 Europe; Sustainable sources 1.4 million Brazil; 1.9 5.7 FSC/PEFC certified hectares in 41% of Baltic or FSC controlled Sweden Tornator countries; 2.5 Sweden; 9.5 Nordic wood 24
Slide 17: Glossary – Area and volumes
Glossary – Area and volumes • Productive forest areas, ha: − forest areas that from wood growth potential point of view qualify for active harvesting planning − includes productive areas that are set aside from the current harvesting plan • Cubic metres, solid under bark (m3 sub): − commercial wood
Slide 18: Statistics - Sweden
Statistics - Sweden Forests in Sweden Total land area 40.8 million ha Total forest area 28 million ha Share of land area 69% Productive forest land 23.6 million ha About 14-15 million ha (FSC 11,9 million ha productive forest Certified forests (PEFC & FSC) land, PEFC 15,9 million ha forest land - ma
Slide 19: Statistics - Finland
Statistics - Finland Forests in Finland Total area 33.8 million ha Total forest area 26.2 million ha Share of land area 86% Productive forest land 20.3 million ha Certified forests (PEFC & FSC) 19.1 million ha Private forests 60% State-owned 26% Companies 9% Others 5% Standing timber stock 2 356 mil