Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Conference Presentation (June 2003)
18 slides from Stora Enso Oyj Class A's conference presentation, Jun 10, 2003
Slide 1: Opportunities and Challenges in China
Opportunities and Challenges in China Björn Hägglund London, 10 June 2003 1
Slide 2: 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 3: Chinese Economic Outlook
Chinese Economic Outlook (% unless otherwise indicated) 2001 2002 2003E 2004E Real GDP growth 7.5 8.0 7.0 7.7 Industrial production growth 13.8 13.5 10.2 9.8 Gross agricultural production growth 3.4 3.0 2.8 2.7 Unemployment rate (av) 9.3 9.0 10.1 10.1 Government balance (% of GDP) -2.6 -2.9 -3.2 -3.
Slide 4: Global Demand Growth for Paper and Board
Global Demand Growth for Paper and Board Chinese market drives future growth aspirations Demand growth % p.a. (2000-2015) 5 East Europe China Per capita, kg 2000 2015 Asia excl. Japan & China World 54 63 4 North America 325 320 Latin America Western Europe 207 264 China 30 51 Africa 3 Average 2.2 %
Slide 5: Asia Pacific Paper & Board Capacity, Consumption per Capita and Population by Country
Asia Pacific Paper & Board Capacity, Consumption per Capita and Population by Country 250 Japan Taiwan Consumption per capita (kg) 200 Australia South Korea 150 100 Malaysia 50 Thailand Indonesia China 0 India 0 10 20 30 40 50 -50 Paper and board capacity by country, in million tonnes Source: PPI Si
Slide 6: Global Paper and Paperboard Demand by Region 1980-2015
Global Paper and Paperboard Demand by Region 1980-2015 Half of the global demand growth is expected to take Million tonnes place in Asia Pacific between 2000-2015 500 Rest of the World 400 Latin America 300 Asia Pacific Eastern Europe 200 Western Europe 100 North America 0 1980 1990 1995 2000 2005E
Slide 7: What are the Opportunities China Offers for a Forest Products Company?
What are the Opportunities China Offers for a Forest Products Company ? • Large domestic consumer base • Increasing consumer purchasing power • Highest global paper & board demand growth • China’s role as a manufacturing and export printing centre • World Trade Organisation (WTO) membership • Contin
Slide 8: Challenges in China
Challenges in China • Large country with different cultures • Lack of infrastructure and industrial tradition in some regions • Rather complicated application process for new investments • Legislation • Corruption • Widening economic gap, urban vs. rural regions • Rising unemployment • Risk of econo
Slide 9: Chinese Forest Industry
Chinese Forest Industry • Large number of small mills • Production of about 34.5 million tonnes including non-wood fibres • Industry in need of further restructuring • Environmental problems • Trend towards higher quality products • Local production replacing imports • Protectionism (e.g. anti-dumpi
Slide 10: Stora Enso in China
Stora Enso in China • Export started in the early ‘50s • Local presence started in mid ‘80s with first sales company • Total sales volume is circa 0.7 million tonnes (=USD 450 million); 7 sales offices • Number of personnel: circa 800 • 160 000 tonnes of coated woodfree paper production in Suzhou •
Slide 11: Stora Enso in China
Stora Enso in China Beijing Zhengzhou Shanghai Suzhou Hangzhou Chengdu StoraEnso China Sales Agent Taipei Suzhou Mill Guangzho Shenzhen Corenso, Hangzhou Plantation Nanning u Hong Kong 1 1
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Slide 13: Suzhou Paper
Stora Enso Suzhou Paper • Located 100 km west of Shanghai • Capacity 160 000 tonnes per annum of multicoated woodfree papers • China’s third largest coated woodfree paper producer with 8 % domestic market share • Clear quality leader in Chinese market • Suzhou Mill gained approval in November 2002 t
Slide 14: Suzhou Paper Prefeasibility Study
Stora Enso Suzhou Paper PM 2 Prefeasibility Study • Risk of woodfree paper oversupply in China in the medium term • In-depth analyses about market potential needed before further steps • Stora Enso currently analysing various options within broader Shanghai region • No decision to proceed with the i
Slide 15: Suzhou Paper: Experiences after Five Years of Operations
Stora Enso Suzhou Paper Experiences after Five Years of Operations • Employees continuously eager to learn new ideas • High overall education level (30% with University degrees) • Low employee turnover rate (under 2% annually) • Proud to be part of Stora Enso; in general, Nordic companies have a goo
Slide 16: Fibre Supply in China
Stora Enso Fibre Supply in China 1 6
Slide 17: Fibre Supply in China
Stora Enso Fibre Supply in China • Target to secure fibre supply in a sustainable way • In November 2002 a MoU was signed with Guangxi Zhuang Autonomous Region to analyse the feasibility of industrial scale plantations and integrated pulp and paper/board • Prefeasibility study will be ready during 2
Slide 18: Visit www.storaenso.com for more information
Visit www.storaenso.com for more information. 1 8