Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Handelsbanken presentation (September 2013)
23 slides from Stora Enso Oyj Class A's conference presentation, Sep 9, 2013
Slide 1: Stora Enso's transformation to renewable materials company
Stora Enso’s transformation to renewable materials company Acting CFO Jyrki Tammivuori 09 September 2013
Slide 2: and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar by the
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: Stora Enso portfolio
Stora Enso portfolio FY 2012 Group Sales, EUR 10 815 million Operational EBIT, EUR 630 million Printing and Reading Biomaterials Building and Living Renewable Packaging Other 1% 4% 30% 35% 45% 43% 16% 9% 13% 5% Stora Enso Q4 and Full Year 2012 Results 28 February 2013 3
Slide 4: Strategy
Strategy Transformation from a European pulp and paper company to a value creating, growth markets renewable materials company 21 August 2013 4
Slide 5: Stora Enso's assets have defined roles
Stora Enso’s assets have a defined roles Cash Growth Printing and Reading Renewable Packaging Nordic market pulp Plantation based pulp Low cost base saw milling Building and living Stora Enso presentation 19-20 June 2013 5
Slide 6: Megatrends supporting the growth for Renewable Packaging and Biomaterials
Megatrends supporting the growth for Renewable Packaging and Biomaterials • Need for new solutions to raw materials – Population growth – Ageing population – Middle-class growth in spending – Need to preserve natural resources – Importance of renewable energy sources – Need for lighter and safer mat
Slide 7: Biomaterials focus on growing customer segments
Biomaterials focus on growing customer segments • Main growth opportunities in tissue, hygiene and board applications – Average yearly growth expected in tissue 4% and in board 3% for the next 15 years – Growth directly linked with population growth as well as GDP evolution in developing countries •
Slide 8: Recovered paper
Recovered paper Commonly used furnish mixes and expected recovery rates would lead to 23 million tonnes gap – alternative uses chemical pulp or kraftliners 23Mt We assume gap that ½ of the gap will be covered with virgin fiber, ½ with even higher recovery rates Source: Paper and board demand (Bain p
Slide 9: Progress report: Montes del Plata
Progress report: Montes del Plata • Estimated to begin the start-up at the end of Q3 2013 • Slightly negative impact on operational EBIT in 2013 21 August 2013 9
Slide 10: Accelerating innovation: Biorefinery at Sunila
Accelerating innovation: Biorefinery at Sunila • EUR 32 million investment • Replacing fossil raw materials: – Insulation – Adhesive for construction materials • Scalable technology • Annual capacity 50 000 tonnes • Start-up Q1 2015 21 August 2013 10
Slide 11: Strongest growth will be in Asia
Strongest growth will be in Asia - Increasing demand of virgin fibre-based consumer board CAGR CAGR CAGR 0,2 % 1,4 % 4,6 % CAGR 6,9 % 1.5 0.9 4,4 3,8 Eastern 6,3 6,2 Europe Western CAGR Europe 3,3 % North 11,6 0,7 0,5 America Middle East 6,0 & Africa Fibre-based consumer Asia board consumption CAGR
Slide 12: Corrugated board consumption per capita 2012
Corrugated board consumption Per capita consumption 2012 Consumption per capita 2012 200 000 120 -9 Source: Bobst Group -11 100 160 000 95 -3 87 81 80 120 000 SQM 60 80 000 +7 +11 37 38 40 30 40 000 20 20 9 5 0 0 W=Europe C&E Europe America China C&S America Pacific rim World Other region SE Asia &
Slide 13: Strategic growth areas in Renewable Packaging
Strategic growth areas in Renewable Packaging • Global #1 Virgin-fibre based • Premium products consumer board • Growth markets Corrugated • Global partner customers packaging Stora Enso Renewable Packaging 24 May 2013 13
Slide 14: Accelerating transformation: Guangxi, China
Accelerating transformation: Guangxi, China • Final approval from Chinese NDRC received • Faster access to the Chinese consumer board market • Two phase implementation – First phase consumer board machine operational in the beginning of 2016 – Second phase chemical pulp mill • Project clearly exceed
Slide 15: Progress report: Ostrołęka mill PM 5
Progress report: Ostrołęka mill PM 5 • Proceeding according to plan • EBITDA margin approximately 20% during the latter part of 2013 as targeted 21 August 2013 15
Slide 16: Stora Enso's transformation from 2006 to 2012
Stora Enso’s transformation from 2006 to 2012 Sales by businesses FY 2006 Group Sales FY 2012 Group Sales EUR 14 594 million EUR 10 815 million 1% -2% 11% 30% 45% 24% 53% 16% 13% 9% Publication Paper and Fine Paper Printing and Reading Paper Merchants Biomaterials Packaging Boards Building and Livin
Slide 17: Time to rethink structures
Time to rethink structures Focus, simplification and clarity • Plan to create a platform for transformation – Divisions with clear accountability focusing on growth and cost competitiveness – Simplified corporate structures • Driving towards a value creating growth markets renewable materials compan
Slide 18: Progress report: Streamlining and structure simplification programme
Progress report: Streamlining and structure simplification programme EUR 200 million of annual net fixed cost savings, compensating also for inflation EUR million Fixed Costs Annualized (Qx4) Progress Q2 2012 703 2 812 Q2 2013 677 2 708 Change -26 -104 Programme impact -7 -28 14% Other change -19 -7
Slide 19: All business areas contributed to cash flow generation in Q2 2013
All business areas contributed to cash flow generation in Q2 2013 Cash flow from Operations Cash flow after investments 140 120 100 EUR million 80 60 40 20 0 Printing and Building and Living Biomaterials Renewable Reading Packaging 21 August 2013 19
Slide 20: Projected Capex and Equity Injections for 2013
Projected Capex and Equity Injections for 2013 Including China investment Capital Expenditure, Equity Injections and Depreciation Forecast 2013 EUR million Forecast 2013 440-490 Capital expenditure* 100-120 Equity injections 540-610 Total 590-610 Depreciation *Capital expenditure includes approximat
Slide 21: Guidance for Q3 2013
Guidance for Q3 2013 • Compared to Q2 2013: – Sales expected to be slightly lower – Operational EBIT in line with or slightly higher 21 August 2013 21
Slide 22: Summary
Summary • Growth expected in Renewable Packaging and Biomaterials • Accelerated transformation: – MdP – Ostrołęka – Guangxi – Sunila Biorefinery • European paper - to get ahead of the game • EUR 200 million fixed costs savings on plan 21 August 2013 22
Slide 23: 21 August 2013
21 August 2013 23
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