Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Shareholder Meeting (March 2018)
65 slides from Stora Enso Oyj Class A's shareholder meeting presentation, Mar 28, 2018
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: Welcome!
Welcome! Jorma Eloranta, Chairman of the Board of Directors
Slide 5: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
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 March 2018
Stora Enso’s Annual General Meeting 28 March 2018
Slide 9: CEO's report
CEO’s report Karl-Henrik Sundström
Slide 10: Congratulations Finland 100 years!
Congratulations Finland 100 years! 10
Slide 11: The renewable materials growth company
The renewable materials growth company Everything that’s made with fossil-based materials today can be made from a tree tomorrow. 11
Slide 12: Over EUR 10 billion sales, over EUR 1 billion operational EBIT
Over EUR 10 billion sales Over EUR 1 billion operational EBIT Over 10% operational EBIT margin 12
Slide 13: Stora Enso share price since the last AGM
Stora Enso share price since the last AGM on 27 April 2017 OMX Helsinki All-Share Stora Enso Oyj R share 150 140 Index 27.4.2017= 100 130 120 110 100 90 80 27.4.2017 27.5.2017 27.6.2017 27.7.2017 27.8.2017 27.9.2017 27.10.2017 27.11.2017 27.12.2017 27.1.2018 27.2.2018 13
Slide 14: Full year results 2014–2017
Full year results 2014–2017 EUR million 2017 2016 2015 2014 Sales 10 045 9 802 10 040 10 213 Operational EBIT 1 004 884 915 810 Operational EBIT margin 10.0% 9.0% 9.1% 7.9% Operational ROCE 11.9% 10.2% 10.6% 9.5% Cash flow from operations 1 492 1 633 1 556 1 139 Cash flow after investing activities
Slide 15: Full year results 2014–2017
Full year results 2014–2017 EUR million 2017 2016 2015 2014 Sales 10 045 9 802 10 040 10 213 Operational EBIT 1 004 884 915 810 Operational EBIT margin 10.0% 9.0% 9.1% 7.9% Operational ROCE 11.9% 10.2% 10.6% 9.5% Cash flow from operations 1 492 1 633 1 556 1 139 Cash flow after investing activities
Slide 16: Accelerated profitable growth
Accelerated profitable growth 2017 year-on-year • Sales EUR 10 045 million, growth of 2.5% − Increased 8.5% excluding paper business − Beihai consumer board mill ramp-up, Murów sawmill, Varkaus laminated veneer lumber (LVL) and kraftliner mills, higher pulp production output • Operational EBIT EUR 1
Slide 17: Continuous improvement
Continuous improvement 2017: Operational ROCE 11.9%, excluding Beihai Mill project 14.3% 16% 14% 12% 10% 8% 6% 4% 2012 2013 2014 2015 2016 2017 Operational ROCE Operational ROCE excluding transformation projects* ROCE target * Excluding Montes del Plata until end of 2014 and excluding Beihai Mill pr
Slide 18: Transformation steps during 2017
Transformation steps during 2017 Yet another active year Ramp-up of new projects New investments CAPEX 350 MEUR* - Beihai Mill Completed project in 2017: - Varkaus kraftliner - Beihai PE coating line - Varkaus LVL - Imatra PE coating line and automated - Murów sawmill warehouse - Ala pellet - Skogha
Slide 19: Profitable growth
Improving sales and innovation • Innovation Centre Helsinki • Montes del Plata Mill investment • Innovation Centre Stockholm • Beihai Mill investment • NXP and Rennovia JDA • Varkaus Mill conversion • Launch of first MFC product • Murów sawmill investment • Intelligent packaging Profitable growth •
Slide 20: Drivers for accelerating renewable growth
These are our drivers for accelerating renewable growth 7% of our sales came from NEW products and Bio- composites Intelligent packaging services in 2017. High-quality packaging solutions Bio- Future bio-based barriers chemicals Next Building generation components liquid and and systems food packagi
Slide 21: 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 21
Slide 22: Strategic targets
Strategic targets Years 2014–2017 Group targets 2014 2015 2016 2017 Status Dividend To distribute 50% of net income over the cycle EUR 0.30 EUR 0.33 EUR 0.37 EUR 0.41* Growth** To grow faster than the relevant market 0.9% (YoY) 4.6% (YoY) 3.1% (YoY) 8.5% (YoY) Net debt to operational EBITDA <3.0 2.3
Slide 23: Beihai Mill in China – Operational EBITDA break-even in Q4/2017
Beihai Mill in China – Operational EBITDA break-even in Q4/2017 23
Slide 24: Varkaus kraftliner mill in Finland
Varkaus kraftliner mill in Finland – exceeded its designed capacity level and targeted profitability in Q4/2017 24
Slide 25: Varkaus LVL line in Finland – ramping up
Varkaus laminated veneer lumber (LVL) line in Finland – ramping up 25 28.3.2018 Stora Enso Oyj AGM
Slide 26: Murów sawmill in Poland – ramping up
Murów sawmill in Poland – ramping up 26
Slide 27: Transformation journey continues
Transformation journey continues 2017: Growth businesses 71% of sales and 87% of operational EBIT Sales 2006 Sales 2017 2% -3% 30% 71% 21% 25% 29% Consumer Board 12% Packaging Solutions* 12% 70% Biomaterials 17% Wood Products 15% Paper** Other & eliminations Operational EBIT 2006 Operational EBIT 20
Slide 28: Stora Enso as a taxpayer
Stora Enso as a taxpayer EUR million in 2017 Finland Sweden Germany UK China Poland Belgium Austria Brazil Russia Other Total Primary activity Production Production Production Sales Production Production Production Production Production Production and sales and sales and sales and sales and sales an
Slide 29: Creating a renewable future in the bioeconomy
Creating a renewable future in the bioeconomy In the bioeconomy, products based on wood fibres are replacing non-renewable materials. Megatrends support our future. 29
Slide 30: Video: Choose the climate, choose renewable materials
Video: Choose the climate, choose renewable materials 30
Slide 31: Our Sustainability Agenda
Our Sustainability Agenda Stakeholder input Materiality 1. 2. 3. 1. We care about all our people Social agenda 2. We help communities be resilient Triple Bottom Line (TBL) Employees and wider workforce Community Business ethics 3. We play fair Human rights 4. 5. 6. 4. We use natural resources with c
Slide 32: Taking the lead to combat global warming
Taking the lead to combat global warming Setting ambitious reduction targets for greenhouse gas emissions • Stora Enso is the first forest products company to have externally approved science-based targets (SBT) to reduce its greenhouse gas (GHG) emissions. • Targets for our operations − Reducing GH
Slide 33: Science-based targets to reduce greenhouse gas emissions
Science-based targets to reduce greenhouse gas emissions We are reducing GHG emissions from operations by 31% per tonne of pulp, paper, and board produced by 2030, compared to a 2010 baseline. 33
Slide 34: External recognitions and awards
External recognitions and awards 34
Slide 35: Lineo by Stora Enso awarded Bio-Based Product of the Year
Lineo™ by Stora Enso awarded Bio-Based Product of the Year • Lineo™ by Stora Enso, a renewable replacement for oil-based phenolic materials, has been awarded ‘Bio- Based Product of the Year’ at the Bio-Based World News Innovation Awards 2018. • The judges recognised the potential of Lineo, made from
Slide 36: Group Leadership Team of Stora Enso
Group Leadership Team of Stora Enso 36
Slide 37: When you want to know more
When you want to know more Read our reports storaenso.com/annualreport 37
Slide 38: Over EUR 10 billion sales, over EUR 1 billion operational EBIT
Over EUR 10 billion sales Over EUR 1 billion operational EBIT Over 10% operational EBIT margin 38
Slide 39: Leader in combatting fossil-based materials
Over EUR 10 billion sales Over EUR 1 billion operational EBIT Over 10% operational EBIT margin Leader in combatting fossil-based materials 39
Slide 40: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 41: Auditor's report
Auditor’s report Jukka Vattulainen, Deloitte Oy
Slide 42: Auditor's opinion
Auditor’s opinion In our opinion • the consolidated financial statements give a true and fair view of the Group’s financial performance and financial position in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and • the financial statements give a true and fai
Slide 43: Adoption of the annual accounts
Adoption of the annual accounts
Slide 44: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 45: Dividend
storaenso Dividend THE RENEWABLE MATERIALS COMPANY
Slide 46: Dividend
Dividend The Parent Company distributable shareholders’ equity on 31 December 2017 amounted to EUR 1 560 466 138.25, including the profit for the period of EUR 365 361 188.06. The Board of Directors proposes to the AGM that a dividend of EUR 0.41 per share, total of no more than EUR 323 334 194.67 b
Slide 47: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 48: Discharge of the members 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 49: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 50: Shareholders' Nomination Board Report
Shareholders’ Nomination Board Report Marcus Wallenberg, Chairman
Slide 51: Shareholders' Nomination Board in 2017–2018
Shareholders’ Nomination Board in 2017–2018 Members • Marcus Wallenberg (Chairman), Harri Sailas, Jorma Eloranta and Hans Stråberg. Prior to the AGM 2017, Gunnar Brock Chairman of the Board, acted as member of the Shareholders’ Nomination Board and Kari Järvinen as member appointed by Solidium Oy an
Slide 52: Annual remuneration
Annual remuneration Board of Directors Chairman EUR 175 000 Vice Chairman EUR 103 000 Members EUR 72 000 It is proposed that the annual remuneration for the members of the Board of Directors be paid in Company shares and cash so that 40% will be paid in Stora Enso R shares to be purchased on the Boa
Slide 53: Composition of the Board of Directors
Composition of the Board of Directors It is proposed that the Board of Directors shall have 9 members Jorma Eloranta, proposed Chairman Hans Stråberg, proposed Vice Chairman Anne Brunila • Chairman of Stora Enso’s Board of • Vice Chairman of Stora Enso’s • Member of Stora Enso’s Board of Directors s
Slide 54: New proposed member of the Board of Directors
New proposed member of the Board of Directors Antti Mäkinen • Born 1961 • LL.M. • Strong business background in the banking and financial sector and since May 2017 acts as the CEO of Solidium Oy. Previous working experience includes several leading management positions within Nordea Corporate & Inve
Slide 55: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 56: Annual remuneration
Annual remuneration Board of Directors Chairman EUR 175 000 Vice Chairman EUR 103 000 Members EUR 72 000 It is proposed that the annual remuneration for the members of the Board of Directors be paid in Company shares and cash so that 40% will be paid in Stora Enso R shares to be purchased on the Boa
Slide 57: Number of members of the Board of Directors
Number of members of the Board of Directors
Slide 58: Election of Chairman, Vice Chairman and other members of the Board
Election of Chairman, Vice Chairman and other members of the Board of Directors
Slide 59: Composition of the Board of Directors
Composition of the Board of Directors Jorma Eloranta, proposed Chairman Hans Stråberg, proposed Vice Chairman Anne Brunila • Chairman of Stora Enso’s Board of • Vice Chairman of Stora Enso’s • Member of Stora Enso’s Board of Directors since April 2017, Vice Board of Directors since April 2017, Direc
Slide 60: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 61: Auditor's fees and election of auditor
Auditor’s fees and election of auditor Richard Nilsson, Chairman of Financial & Audit Committee
Slide 62: Auditor's fees
Auditor’s fees
Slide 63: Election of Auditor
Election of Auditor The Board of Directors proposes to the AGM that PricewaterhouseCoopers Oy be elected as auditor of the Company until the end of the following AGM. PricewaterhouseCoopers Oy has notified the company that in the event it will be elected as auditor, Samuli Perälä, APA, will act as t
Slide 64: Stora Enso: The renewable materials company
storaenso THE RENEWABLE MATERIALS COMPANY
Slide 65: Forward-looking statements
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 profitability; a