Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Day (November 2016)
17 slides from Stora Enso Oyj Class A's investor day presentation, Nov 17, 2016
Slide 1: Biomaterials – differentiating and creating new platforms for profitable growth
Biomaterials – differentiating and creating new platforms for profitable growth Juan Carlos Bueno, EVP, Biomaterials
Slide 2: Do you know?
Do you know? We have the widest pulp grades portfolio Only 18% of our We are fully in the market external market pulp contracted in sales are geared to the dissolving pulp graphic paper market for next three years We are the largest fluff pulp producer There is much in Europe more potential in ligni
Slide 3: Biomaterials – strengthening current business and creating new profitable growth
Biomaterials – strengthening current business and creating new profitable growth Differentiate our Create new pulp business platforms for growth 3 17 November 2016 Stora Enso CMD
Slide 4: Global trends enhance the demand for sustainable pulp fibres
Global trends enhance the demand for sustainable pulp fibres Tissue +2.9%/y Textiles, non-wovens +4.4%/y (dissolving) Cartonboard +2.1%/y Hygiene +3.6%/y (fluff) Source: Pöyry Consulting Group, Hawkins Wright, Smithers Pira Paper -3%/y To 2025… 4 17 November 2016 Stora Enso CMD
Slide 5: Pulp demand keeps growing, especially in segments selected in Stora Enso strategy
Pulp demand keeps growing, especially in segments selected in Stora Enso strategy Pulp demand to 2025 in million tonnes (Mt) CAGR: + 2,3%~ + 1,5 million tonnes (Mt) /year +2.6 +2 +10.2 +1.6 +2.1 -3 75 60 Tissue Graphic Papers Speciality Papers Packaging Hygiene/Fluff Dissolving Pulp 52 47 Grade Mt H
Slide 6: Pulp market expected to remain balanced – new capacity added, old disappearing
Pulp market expected to remain balanced – new capacity added, old disappearing Softwood Hardwood New capacities and exits PM Capacity, 1000 t/a Strong PM Capacity, 1000 t/a Strong 1000 2005-2015 (Mt) 900 2000 800 New ~3.6 Mt/year 700 1500 600 500 Increasing demand 1000 sustaining ratios 400 above 90
Slide 7: Pulp outperforming other commodities – even with new capacity
Pulp outperforming other commodities – even with new capacity Price index Pulp vs Commodities 140 120 101 100 97 85 80 83 60 59 43 40 41 20 Jan-12 Aug-16 Crude Oil Soy bean Sugar Iron Ore Copper Softwood Hardwood FOEX Europe FOEX Europe Source: World Bank, FOEX, Pöyry 7 17 November 2016 Stora Enso C
Slide 8: Stora Enso offers the widest pulp portfolio in the market
Stora Enso offers the widest pulp portfolio in the market 40% 35% Internal consumption Market pulp 65% 35% 12,5% Stora Enso 7,5% 5% pulp capacity 5740 Kt Among the TOP10 Softwood Hardwood Fluff Dissolving UKP 800Kt 700Kt 250Kt 150Kt 100Kt largest pulp producers 8 17 November 2016 Stora Enso CMD
Slide 9: Strategic direction: Improving our pulp mix to differentiate business and improve margins
Strategic direction: Improving our pulp mix to differentiate business and improve margins Reduce exposure 2016 Target 2021 in the softwood 25% segment 40% 42% 20% Grow in the fluff and dissolving pulp segments through conversions 38% 35% Softwood Hardwood Extract additional Fluff/dissolving value fr
Slide 10: From wood to bio-chemicals
From wood to bio-chemicals Extraction and separation technologies Polymers, chemicals, coatings, adhesives, textiles and food ingredients 10 17 November 2016 Stora Enso CMD
Slide 11: Biomaterials division focuses on four clusters in its innovation work
Biomaterials division focuses on four clusters in its innovation work Pulp applications Improving current pulp grades Cellulose modification and pulp process by-products Lignin, MFC, CCA and by-products development Developing the extraction technology Further development of sugars New technology for
Slide 12: Lignin as phenol replacement offers us big potential with attractive margins
Lignin as phenol replacement offers us big potential with attractive margins Example from cellulose modification and pulp process by-products cluster Total market for phenols: 9.4 Mt Key value proposition: Potential Market Value • Environmental Phenolic for Lignin: ~1.7 B EUR Resins 2.8 Mt Stora Ens
Slide 13: From C5 sugars to xylitol market showing 4-6% CAGR
From C5 sugars to xylitol market showing 4-6% CAGR Example from clusters for extraction technology development and further development of sugars Stora Enso technology Xylitol producers End customers Biomass C5 Liquid sugars xylose Our Output: 7 Kt liquid xylose 4-6 Kt xylitol 120 Kt market 4-6% CAGR
Slide 14: Biomaterials strategic actions from 2012
Biomaterials strategic actions from 2012 Differentiate our pulp business - Create new platforms for growth Future Growth Options Montes del Plata Enocell Hardwood dissolving Sunila Lignin Debottleneck pulp Partnership Montes del Enocell Virdia with Plata Dissolving Innovation Rennovia Demo plant Sku
Slide 15: Biomaterials – strengthening current business and creating new profitable growth
Biomaterials – strengthening current business and creating new profitable growth Differentiate our Create new pulp business platforms for growth Higher margins Long-term development Extracting value from current Attractive markets assets 15 17 November 2016 Stora Enso CMD
Slide 16: 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 17: Thank you!
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