Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Day (November 2017)
26 slides from Stora Enso Oyj Class A's investor day presentation, Nov 8, 2017
Slide 1: Consumer Board – Solid platform for profitable growth in the bioeconomy
Consumer Board – Solid platform for profitable growth in the bioeconomy Annica Bresky EVP, Consumer Board division
Slide 2: Our road to success in the bioeconomy
Our road to success in the bioeconomy Introducing Addressing Delivering Generating xxxx xxxx attractive xxxx sustainable xxxx superior new products and services end-use profitable ROCE segments growth 2 8 November 2017 Stora Enso CMD
Slide 3: Consumer Board, a strong global partner
Solid platform for profitable growth in the bioeconomy Consumer Board, a strong global partner 1 Innovation centre Renewable 2 R&D centres material from certified 6 new products since 2014 forests and 40 joint customer projects plantations 22 digitalization projects 70 countries 55 mills mills 2 342
Slide 4: High quality board for premium consumer applications
High quality board for premium consumer applications A broad range of solutions to fit customer demands 4 8 November 2017 Stora Enso CMD
Slide 5: Strategic partnering across the value chain
Strategic partnering across the value chain WOOD SUPPLY, SOURCING, RODUCT MGMT, R&D, OPERATIONS, SUPPLY CHAIN, SALES 5 8 November 2017 Stora Enso CMD
Slide 6: Empowered consumers are driving change
Empowered consumers are driving change CREATE TRUST OF ORIGIN FUTURE GENERATIONS JUST FOR ME EXPERIENCES IN THE CENTRE CONNECTIVITY EVERYWHERE 6 8 November 2017 Stora Enso CMD
Slide 7: The industry has ambitious environmental 2020 targets…
The industry has ambitious environmental 2020 targets… Cap climate impact across the 100% sustainably sourced value chain at 2010 levels, paper and board regardless of business growth 95% renewable cups and bottles 100% FSC labelled packs All PET bottles to be bio-based 25% CO2 reduction Packaging f
Slide 8: … and our partnerships lead to commercialised solutions
… and our partnerships lead to commercialised solutions 82 MEUR or 3% of sales in 2017 from new products ” ” The new Pure-Pak® carton delivers on key We are very proud of the new Fibre cup values for Arla. It is renewable, recyclable, suitable for e.g. crème fraiche. We have grown the proportion of
Slide 9: Packaging is growing by 2.1% CAGR by 2019…
Packaging is growing by 2.1% CAGR by 2019… • Drivers are the economic growth rate of a Packaging development 2007–2019* region CAGR 2.1% CAGR 1.5% • Demographics favour small, re-sealable and convenient packaging • Innovation in packaging materials and design is driven by: − reduction of total cost
Slide 10: … and 2.6% CAGR until 2030 for virgin fibre board grades
… and 2.6% CAGR until 2030 for virgin fibre board grades +1.8% (5.3 mt) +1.2% +4.3% (6.9 mt) (7.3 mt) +2.5% +3.4% (0.2 mt) (3.3 mt) Virgin fibre board grades: +3.3% Coated Unbleached Kraft (CUK) (1.4 mt) Solid Bleached Sulphate (SBS) Liquid Packaging Board (LPB) Folding Box Board (FBB) Food Service
Slide 11: We have a strong position with global customers…
We have a strong position with global customers… Top 10 customers account for 53% of sales and 60% of EBITDA Market Relative Market share per product vs. competitors position market share CUK SE Europe kt 1 131% SBS SE 1 103% LPB SE 1 127% FBB SE 2 56% 0 500 1 000 1 500 2 000 2 500 3 000 3 500 CUK S
Slide 12: ... generating profitable growth
... generating profitable growth Sales MEUR Operational EBIT MEUR ROOC 1.5% CAGR 7% 2 241 2 342 CAGR 5.4% 1 880 CAGR 1 762 14.4% 13.9% 14.7% 254 12.7% 2013 2016 Q1–Q3/16 Q1–Q3/17 2013 2016 Q1–Q3/16 Q1–Q3/17 2013 2016 Q1–Q3/16 Q1–Q3/17 12 8 November 2017 Stora Enso CMD
Slide 13: Our growth opportunities are within LPB, FBB and CUK
Our growth opportunities are within LPB, FBB and CUK Beihai and the Nordic integrated mills are the growth engines Forecast per board grade CAGR 1–4% • LPB − Maintain strong market position in Europe Mt − Grow in China and South East Asia • FBB − Grow with the market in premium applications • CUK −
Slide 14: China continues to be one of the fastest-growing markets…
China continues to be one of the fastest-growing markets… Chinese consumption today matches US in 1920s Middle class and urbanisation driving the change Nominal Private Consumption (USD, Tn) 18 16 14 12 Growth 2016–2021 10 Private Consumption 2016 8 6 4 2 0 Source: BCG Source: McKinsey, as of Jan 20
Slide 15: … with Beihai capturing premium positions in LPB, CUK and FBB
… with Beihai capturing premium positions in LPB, CUK and FBB FBB overcapacity is exported Imports of premium grades remain strong kt kt LPB, SBS, CUK FBB >95% FBB Sources: China customs and Stora Enso 15 8 November 2017 Stora Enso CMD
Slide 16: Successful start-up of Beihai with EBITDA breakeven Q4 2017
Successful start-up of Beihai with EBITDA breakeven Q4 2017 Beihai board machine production capacity • Commercial deliveries ongoing to LPB kt customers • FBB quality on par with domestic producers • Polyethylene (PE) plant for FSB in operation Q4/2017 Design capacity 450 kt • Board machine capacity
Slide 17: Stepping up quality levels in virgin cartonboard grades
Stepping up quality levels in virgin cartonboard grades Example: Healthcare segment 2022E market size 2022E CAGR of segment ~150–180 kt 7–10% Premium ~1600–1800 kt Medium grade 6–8% Yibin Wuxing Low-end ~850–950 kt Source: McKinsey 17 8 November 2017 Stora Enso CMD
Slide 18: Future growth is coming from innovations in renewable materials
Future growth is coming from innovations in renewable materials Micro-fibrillated cellulose (MFC) Bio-barriers based on MFC Biocomposites 18 8 November 2017 Stora Enso CMD
Slide 19: We are scaling up MFC
We are scaling up MFC Strength enhancement, source reduction and new barrier solutions New scalable Investments at Imatra, Fors and Ingerois mills New barriers and Pilot capacity technology for film solutions Basic R&D commercialization and customer trials planning 2019 2006 2009 2011 2012 2014 2015
Slide 20: Bio-barriers replacing fossil-based barriers
Bio-barriers replacing fossil-based barriers 20 8 November 2017 Stora Enso CMD
Slide 21: Biocomposites replacing fossil-based materials
Biocomposites replacing fossil-based materials Cooperation with accelerators and start-ups Image courtesy of Sulapac 21 8 November 2017 Stora Enso CMD
Slide 22: Vision for a 100% renewable LPB packaging 2022–2025
Vision for a 100% renewable LPB packaging 2022–2025 Target is competitive packaging with reduced CO2 emissions Fossil-based cap and closure Bio-based cap and closure BENEFITS: - Less fibres used - Light weighting - Fewer layers - No fossil based polymers - No aluminium Printed polyethylene (PE) Bio-
Slide 23: Solid platform for profitable growth in the bioeconomy
Solid platform for profitable growth in the bioeconomy • Global leaders in our focus segments for the most challenging applications • Long-term partnering with customers and brand owners across the value chain • Customer-driven development projects based on consumer insights • Strong and well-positi
Slide 24: 1% shift from plastics to renewable board
1% shift 6 BEUR from renewable plastics to = business board 24 8 November 2017 Stora Enso CMD
Slide 25: 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 26: THE RENEWABLE MATERIALS COMPANY
THE RENEWABLE MATERIALS COMPANY