Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Day (March 2012)
28 slides from Stora Enso Oyj Class A's investor day presentation, Mar 22, 2012
Slide 1: Cash Engine
Cash Engine Juha Vanhainen, EVP, Printing and Reading
Slide 2: Business Area Printing & Reading
Business Area Printing & Reading Publishing and commercial printing We inspire the world with paper Juha Vanhainen March 22, 2012 2
Slide 3: iPad's take-off has been a great success
iPad’s take-off has been a great success Apple iPhone + iTouch Apple iPad Nintendo Wii Nintendo DS Sony PSP Apple iPod RIM Blackberry Source: KPCB; Apple; Morgan Stanley Juha Vanhainen March 22, 2012 3
Slide 4: West European advertising spend is still at the pre-crisis level
West European advertising spend is still at the pre-crisis level (calculated in 2010 euro) 100 90 8 10 80 12 Internet AdSpend [ billiion € ] 70 13 14 15 Other 60 Radio 50 28 28 27 40 24 25 25 TV 30 20 43 42 39 32 31 30 Print 10 0 2006 2007 2008 2009 2010 2011e Source: Zenith Dec-2011 Juha Vanhainen
Slide 5: Structural change to West Europe paper demand development
The development has caused a structural change to West Europe paper demand development Juha Vanhainen March 22, 2012 5
Slide 6: Business Area Printing and Reading
Business Area Printing and Reading Production capacities, million t/a Newsprint • Newsprint 2.5 SC Veitsiluoto • Super calendered 1.4 Oulu Coated • Coated paper 3.0 Office Varkaus • Office paper 1.3 Kvarnsveden Anjala Total paper 8.2 Hylte Nymölla Kabel Uetersen Langerbrugge Corbehem Sachsen Maxau D
Slide 7: BA Printing and Reading sales and EBITDA
BA Printing and Reading sales and EBITDA Juha Vanhainen March 22, 2012 7
Slide 8: BA Printing & Reading profits are better than main competitors, EBITDA-%
BA Printing & Reading profits are better than the ones of main competitors, EBITDA-% (sliding average of latest four quarters) Strora Enso purchased pulp at market price; energy procurement at market conditions Juha Vanhainen March 22, 2012 8
Slide 9: Improving cost position to keep average below median
BA Printing and Reading will improve cost position to keep average below median at all times Delivered cash cost to Frankfurt Cost index, 100 equals to median of each grade 180 160 140 BA will target at keeping the average cost level 120 below median at all times 100 BA Printing and Reading capacity
Slide 10: Concept for winning in a declining market
Concept for winning in a declining market Input Focus on Not growth, end-uses but low-cost • Paper for all print • Delivered cost end-uses • Targeted investments • New products expanding offering • Energy efficiency and bio fuels • Supply chain efficiency priority • Asset restructuring Action Juha V
Slide 11: Our value proposition to our customers
Our value proposition to our customers Your peace of mind comes first • from sourcing raw materials to creating renewable reading experiences Added value to customers • Reliability and availability • Cost efficiency • Good reputation • Offering fit for purpose Juha Vanhainen March 22, 2012 11
Slide 12: We inspire the world with paper
We inspire the world with paper From selling paper grades to jointly selecting best paper for end-use applications Juha Vanhainen March 22, 2012 12
Slide 13: Product development – reinventing boundaries between paper grades
Product development – reinventing boundaries between paper grades PrimaPress – an uncoated paper for traditional end-uses of coated paper • Brilliant gloss never seen before for LWU • End uses: magazines, catalogues • Production: Kvarnsveden PM12 Juha Vanhainen March 22, 2012 13
Slide 14: BA Printing and Reading – 2011 Net Promoter Score
BA Printing and Reading – 2011 Net Promoter Score Compared to most frequently mentioned competitors BA Printing & Reading n=1384; All competitors n=1297 Juha Vanhainen March 22, 2012 14
Slide 15: Concept for winning in a declining market
Concept for winning in a declining market Input Focus on Not growth, end-uses but low-cost • Paper for all print • Delivered cost end-uses • Targeted investments • New products expanding offering • Energy efficiency and bio fuels • Supply chain efficiency priority • Asset restructuring Action Juha V
Slide 16: Juha Vanhainen March 22, 2012
Juha Vanhainen March 22, 2012 16
Slide 17: Ongoing restructuring measures
Ongoing restructuring measures Fine paper cost competitiveness improvement • Annual cost reduction 20 M€ • Cash provision 16 M€ • Full impact after Q2/2012 Coated magazine paper operations’ restructuring • Annual cost reduction 48 M€ • Investments 18 M€ and cash provision 5 M€ • Full impact from Q3/
Slide 18: Sales value per employee
Sales value per employee Juha Vanhainen March 22, 2012 18
Slide 19: Juha Vanhainen March 22, 2012
Juha Vanhainen March 22, 2012 19
Slide 20: Printing & Reading operational development targets
Printing & Reading operational development targets Product development • New products • Cost structure improvement • Source reduction From mill specialization to operational flexibility • “Lowest delivered to customer cost asset gets the orders” Juha Vanhainen March 22, 2012 20
Slide 21: Lean and focused capital expenditure model
Lean and focused capital expenditure model Top assets with low cost; Capex of sales efficiency and energy investments Assets to be kept on current technical level Average at ~2.5% of sales Assets for divestment or closure during the next 10 years Competitiveness Juha Vanhainen March 22, 2012 21
Slide 22: Energy investments
Energy investments Energy efficiency • Energy generation towards bio • Latest 5 year investments 300 M€ • Specific energy consumption improvement work continues Juha Vanhainen March 22, 2012 22
Slide 23: Oulu paper mill is the largest coated paper production unit in Europe
Located in a seaport Oulu paper mill is the largest coated paper production unit in Europe Integrated Benchmark paper quality Juha Vanhainen March 22, 2012 23
Slide 24: Kvarnsveden PM12 in Sweden
Kvarnsveden PM12 in Sweden Wood procurement from an area with 200 km radius Juha Vanhainen March 22, 2012 24
Slide 25: Langerbrugge houses the largest newsprint paper machine in Europe
80 million people live within a 300 km radius Excellent energy solution based on non-fossil/renewable Langerbrugge Amsterdam houses the largest newsprint London paper machine in Europe Düsseldorf Langerbrugge Cologne Paris 100% recycled fiber Juha Vanhainen March 22, 2012 25
Slide 26: Ready for all future demand scenarios
Ready for all future demand scenarios • New setup with all paper business in one business area • Serving consumers’ continuously developing media needs with new paper applications • Performance over size and market share • Focus on making top assets even stronger Juha Vanhainen March 22, 2012 26
Slide 27: Juha Vanhainen March 22, 2012
Juha Vanhainen March 22, 2012 27
Slide 28: Forward-looking statements
It should be noted that certain statements herein which are not historical facts. including. without limitation those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”. “expects”. “anticipates”. “foresees”. or