Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Shareholder Meeting (April 2016)
67 slides from Stora Enso Oyj Class A's shareholder meeting presentation, April 2016
Slide 1: Welcome to the Annual General Meeting
Welcome to the Annual General Meeting
Slide 2: Headphones
Headphones Kielikanavat Choose your language / Valitse kielikanava English Svenska Suomi
Slide 3: No photography or video or audio recording
No photography or video or audio recording
Slide 4: 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
Slide 5: Welcome!
Welcome! Gunnar Brock, Chairman of the Board of Directors
Slide 6: Emergency exits
storaenso Emergency exits OQWO0IQ, QUOT QUO, CUO OD TTT TIT COO DOpPjole| THE RENEWABLE MATERIALS COMPANY
Slide 7: Headphones
Headphones Kielikanavat Choose your language / Valitse kielikanava English Svenska Suomi
Slide 8: Stora Enso's Annual General Meeting April 2016
Stora Enso’s Annual General Meeting 28 April 2016
Slide 9: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 10: Karl-Henrik Sundström, CEO
Karl-Henrik Sundström, CEO
Slide 11: Another year of progress
Another year of progress
Slide 12: Full year 2015 results
Full year 2015 results EUR million 2015 2014 Change % Sales 10 040 10 213 -1.7% Operational EBIT 915 810 13.0% Operational ROCE 10.6% 9.5% 11.6% Cash flow from operations 1 556 1 139 36.6% Cash flow after investments 599 255 134.9% EPS excl. NRI EUR 1.24 EUR 0.40 210% Dividend 0.33* 0.30 10% Net Deb
Slide 13: Another quarter of progress
Another quarter of progress Q1 2016 year-on-year • Sales EUR 2 445 million − Slightly down, but increased excluding the structurally declining paper business and divested Barcelona Mill by 2.4% • Operational EBIT increased 12.7% to EUR 248 million and margin was record high at 10.1% • Cash flow from
Slide 14: Transformation benefits clearly visible
Transformation benefits clearly visible MEUR Operational EBIT and operational EBIT margin CAGR 21% . MEUR Cash flow from operations and CAPEX Net debt to operational EBITDA * Includes biological assets
Slide 15: Continuous improvements
Continuous improvements Operational ROCE 11.3%, excluding Beihai Mill project 13.7% ROCE target of 13% *Excluding Montes del Plata until end of 2014 and excluding Beihai Mill project in Guangxi
Slide 16: Strategic targets ambitious, but reachable
Strategic targets ambitious, but reachable Group targets 2014 2015 Status Dividend To distribute 50% of net income over the cycle Growth* To grow faster than the relevant market 0.9% (YoY) 4.6% (YoY) Net debt to operational EBITDA <3.0x 2.6 2.4 Fixed costs to sales <20% 25.1% 25.0% Debt to equity <8
Slide 17: Stora Enso's offering at a glance
Stora Enso’s offering at a glance
Slide 18: Broad customer base
Broad customer base & *® is WOODEON oa storaenso tek Edelmann Cel @ic > MR BB QBs SOFIDEL - LABELS AND FLEXPACK Solutions ENDLESS CARE, INNOVATIVE LIFE =e | Fo ee"O a wy PEG rarreus\ amcor Beiersdorf ot ca THE RENEWABLE MATERIALS COMPANY
Slide 19: Stora Enso responds to global megatrends
Stora Enso responds to global megatrends • Major global trends drive the world’s demand for renewable materials Global Growing warming population Changing Urbanisation Digitalisation lifestyles Growing middle class Eco-awareness • Bio-based products are not only reusable, but also renewable
Slide 20: Everything made with fossil-based materials can be made from a tree
”Everything that’s made with fossil-based materials today can be made from a tree tomorrow” From a traditional paper and board producer to a global renewable materials growth company
Slide 21: Profitable growth
From asset transformation to sales transformation Profitable growth Asset transformation Innovation & customer focus
Slide 22: Innovation Centre for biomaterials
Innovation Centre for biomaterials • Located in Stockholm • Maximize the value of wood and biomass • Research, application, business development and strategic marketing • Boost innovation by identifying business opportunities and linking them with innovation and research centres • Xylose demonstrati
Slide 23: Innovation Centre for packaging
Innovation Centre for packaging • Located in Helsinki • Venue for innovation and R&D work • Develop innovative and sustainable packaging concepts with customers and other stakeholders • A packaging design lab and virtual reality retail technology, among other things • Co-operation with NXP on intell
Slide 24: More for less with Micro Fibrillated Cellulose (MFC)
More for less with Micro Fibrillated Cellulose (MFC) The first time MFC is used for Liquid Packaging board in dairy segment • The customer Elopak wish to make packaging as light as possible • Renewable innovation: New Natura Concept based on MFC from Stora Enso • Stiffness and strength are maintaine
Slide 25: Transformation – Beihai Mill expected to start up in May
Transformation – Beihai Mill expected to start up in May, ahead of the plan • Beihai consumer board mill, the largest direct Nordic investment in China • Full production expected 18–24 months from start up • New PE Coating line investment to meet increasing demand for food service board announced in
Slide 26: Transformation – growth businesses of Packaging Solutions and Wood Products
Transformation – to increase growth businesses of Packaging Solutions and Wood Products in the portfolio • Varkaus kraftliner ramping up and full production expected in early 2017 • Wooden elements investment in Varkaus proceeding according to plan and production to start in June • The official inau
Slide 27: 4/28/2016
27 4/28/2016
Slide 28: Non-core asset divestments and closures in 2015 and Q1 2016
Non-core asset divestments and closures in 2015 and Q1 2016 • Non-core asset divestments − Uetersen Mill Q1 2015 − Komárom Mill Q3 2015 − Barcelona Mill Q4 2015 − Arapoti Mill Q1 2016 − IL Recycling announced in April 2016 • Closures − Corrugated packaging converting unit in Chennai, India 2015 − Pä
Slide 29: Transformation journey continues
Transformation journey continues Growth businesses 65% of sales and 79% of operational EBIT 2006 Sales Q1/2016 Sales 2006 Paper businesses, incl. Merchants 30% Biomaterials 65% Wood products business Packaging business Other and eliminations In 2006, all pulp used internally. Q1/2016 2006 Operationa
Slide 30: Stora Enso as a taxpayer
Stora Enso as a taxpayer EUR million in 2015 Finland Sweden Germany UK China Poland Belgium Austria Brazil Russia Other Total Primary activity Production Production Production Sales Sales Production Production Production Production Production and sales and sales and sales and sales and sales and sal
Slide 31: Our progress in sustainability
Our progress in sustainability
Slide 32: Our Sustainability Agenda
Our Sustainability Agenda Stakeholder input Materiality Social 1. 2. 3. agenda Triple Bottom Line (TBL) Employees and wider workforce Community Business ethics Human rights 4. 5. 6. Environmental agenda Materials, Water Forests, Plantations & Energy Carbon & Land Use dioxide Economic 7. 8. 9. agenda
Slide 33: Why sustainability matters
Why sustainability matters • Our purpose, values and company culture are based on fair business • Consumers today consider the materials they buy, how the goods have been produced and under what kind of working conditions • Rightly managed, sustainability is a competitive advantage • Because you car
Slide 34: Human rights
Human rights Integrated in our sustainability work • We are committed to the UN Guiding Principles on Business and Human Rights • Group-wide human rights assessments completed − Action plans were launched in 2015 • A unique Public-Private Partnership with ILO − Combatting child labour in supply chai
Slide 35: Human Rights Action Plans in 2015−2016
Human Rights Action Plans in 2015−2016 Transparent reporting of progress • All action plans were developed by the end of Q2/2015 • Most of the action plans will be completed by the end of Q4/2016 21 % Completed • Total of 366 action items In progress or in • We report on our progress quarterly in ou
Slide 36: We combat global warming with renewable materials
We combat global warming with renewable materials • Our renewable raw material absorbs CO2 and our products act as carbon storages • A high share of CO2 emissions from our production are fossil free, biogenic emissions from using biomass fuels • Our target is to reduce fossil CO2 emissions by 35% fr
Slide 37: When you want to know more
When you want to know more Read our reports
Slide 38: Strategy for transformation continues
Strategy for transformation continues Stora Enso’s strategy is about profitable growth based on customer insights and innovation, supported by structured processes and motivated employees.
Slide 39: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 40: Adoption of the annual accounts
Adoption of the annual accounts
Slide 41: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 42: Dividend
storaenso Dividend THE RENEWABLE MATERIALS COMPANY
Slide 43: Dividend
Dividend The Parent Company distributable shareholders’ equity on 31 December 2015 amounted to EUR 1 615 273 728.69, including the profit for the period of EUR 192 837 825.45 The Board of Directors proposes to the AGM that a dividend of EUR 0.33 per share, total of EUR 260 244 595.71 be paid to the
Slide 44: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 45: Discharge of the Board of Directors and the CEO from liability
Discharge of the members of the Board of Directors and the CEO from liability
Slide 46: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 47: Shareholders' Nomination Board Report
Shareholders’ Nomination Board Report
Slide 48: Shareholders' Nomination Board in 2015
Shareholders’ Nomination Board in 2015 Members • Kari Järvinen (Chairman), Marcus Wallenberg, Gunnar Brock and Juha Rantanen Activity • Convened 5 times, each member of the Shareholders’ Nomination Board attended all meetings Key action points • Board members election preparations • Preparation of t
Slide 49: Annual remuneration
Annual remuneration Board of Directors Chairman EUR 170 000 Vice Chairman EUR 100 000 Members EUR 70 000 It is proposed that Board members use 40% of the above mentioned annual remuneration for purchasing Stora Enso R shares from the market and that the purchases will be carried out within two weeks
Slide 50: Composition of the Board of Directors
Composition of the Board of Directors It is proposed that the Board of Directors shall have eight (8) members: Gunnar Brock Anne Brunila Jorma Eloranta, new member Elisabeth Fleuriot Hock Goh Mikael Mäkinen Richard Nilsson Hans Stråberg
Slide 51: New proposed member of the Board of Directors
New proposed member of the Board of Directors Jorma Eloranta • Born 1951 • M.Sc. (Tech), D.Sc. (Tech) h.c. • Chair of the Board of Neste, Suominen and Uponor. Vice Chair of the Board of Finnish Fair Foundation. Member of the Board of Cargotec. Senior Advisor of Eera. Chair of the Board and President
Slide 52: Appointment of Shareholders' Nomination Board
Appointment of Shareholders’ Nomination Board Duties • It is proposed to appoint a Shareholders’ Nomination Board to exist until otherwise decided and to annually prepare proposals for the shareholders’ meeting regarding the proposed Board member candidates and remuneration • Shareholders’ Nominatio
Slide 53: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 54: Annual remuneration
Annual remuneration Board of Directors Chairman EUR 170 000 Vice Chairman EUR 100 000 Members EUR 70 000 It is proposed that Board members use 40% of the above mentioned annual remuneration for purchasing Stora Enso R shares from the market and that the purchases will be carried out within two weeks
Slide 55: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 56: Number of members in the Board of Directors
Number of members in the Board of Directors
Slide 57: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 58: Composition of the Board of Directors
Composition of the Board of Directors It is proposed that the Board of Directors shall have eight (8) members: Gunnar Brock Anne Brunila Jorma Eloranta, new member Elisabeth Fleuriot Hock Goh Mikael Mäkinen Richard Nilsson Hans Stråberg
Slide 59: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 60: Auditor's fees
Auditor’s fees
Slide 61: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 62: Election of Auditors
Election of Auditors The Board of Directors proposes to the AGM that Authorised Public Accountants Deloitte & Touche Oy continue as the statutory auditor of the Company until the end of the following AGM.
Slide 63: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 64: Appointment of Shareholders' Nomination Board
Appointment of Shareholders’ Nomination Board Duties • It is proposed to appoint a Shareholders’ Nomination Board to exist until otherwise decided and to annually prepare proposals for the shareholders’ meeting regarding the proposed Board member candidates and remuneration • Shareholders’ Nominatio
Slide 65: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 66: Thank you!
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 67: Stora Enso
storaenso THE RENEWABLE MATERIALS COMPANY