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: Accelerating our renewable future
Accelerating our renewable future CEO Karl-Henrik Sundström
Slide 2: Creating a renewable future in the bioeconomy
Creating a renewable future in the bioeconomy In the bioeconomy, products based on wooden fibres are replacing non-renewable materials Megatrends support our future 2 8 November 2017 Stora Enso CMD
Slide 3: 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 3 8 November 2017 Stora Enso CMD
Slide 4: 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 4 8 November 2017 Stora Enso CMD
Slide 5: Our transformation strategy continues…
Our transformation strategy continues… Customer insight Developing offerings Stora Enso’s strategy is about according to customers’ requirements to create sustainable profitable growth based value and growth, with sales excellence. on customer insights and innovation, supported by structured process
Slide 6: …delivering sustainable profitable growth
…delivering sustainable profitable growth Strategic growth investments Capex at or below depreciation and depletion* • Continued strategic growth investments over the business cycle • Sustainable profitable growth • Strong balance sheet Dividend Sustainable • Dividend To distribute 50% of net income
Slide 7: We are well-positioned for growth…
We are well-positioned for growth… Sales 2016 Market growth EUR and % of group’s sales Sales Consumer Board + 2.3 BEUR 24% 2016–2030 for virgin board: Europe 1.8%, North America 1.2%, Latin America 3.3%, China 4.3%, Rest of Asia 3.4%, Africa 2.5% Packaging Solutions + 1.0 BEUR 11% High quality SC fl
Slide 8: …with strong market positions
…with strong market positions Position Relative market share* 110% LPB Global 110% LPB Europe Consumer Board #1 in LPB, FSB and CUK in Europe or the world 130% CUK Europe 50% FSB Global 157% FSB Europe 62% Unbleached virgin fibre based containerboard Packaging 85% Corrugated Central Eastern Europe S
Slide 9: We are delivering on our transformation strategy…
We are delivering on our transformation strategy… Sales excluding Paper growing 4.3% CAGR …while Paper sales are decreasing CAGR 4.3% Sales excl. Paper and closed Sales Paper and divested assets LTM = Q4/16-Q3/17 9 8 November 2017 Stora Enso CMD
Slide 10: Profitable growth
…and now improving sales and innovation MdP Mill investment Beihai Mill investment Varkaus Mill conversion Innovation Centre Helsinki Profitable growth Murów sawmill investment Innovation Centre Stockholm Varkaus LVL investment NXP and Rennovia JDA Imatra de-bottlenecking Launch of first MFC product
Slide 11: …and we are developing further in the bioeconomy
…and we are developing further in the bioeconomy PRODUCT / CUSTOMER USE FULLY ADOPTED R&D PILOTING SCALINGADOPTED BY TECHNOLOGY EXAMPLES BY MARKETS MARKETS 1. Lignin Replace phenol BIO-CHEMICALS Xylose Sweetener, personal care – INDUSTRIAL Biomass polymers Replace oil-based plastic INTERMEDIAT
Slide 12: These are our drivers for accelerating renewable growth
These are our drivers for accelerating renewable growth 5% In 2017, close to of our sales comes from Bio- composites Intelligent packaging NEW products and services High-quality packaging solutions Bio Future bio- barriers chemicals Next Building generation components liquid and and systems food pac
Slide 13: Beihai – already the most efficient Consumer Board mill
Beihai – already the most efficient Consumer Board mill Q4/17 2017 2016 2014 2013 2012 2002 Plantation Initial investment Project split into Construction Construction of Three EBITDA break- leasing decision to build two phases in permits board machine commercial even estimated integrated 2013 in ord
Slide 14: Our Paper division has a strong competitive position in Europe…
Our Paper division has a strong competitive position in Europe… News & Book SC CM WFC WFU UPM Stora Enso Sappi Norske Skog Burgo International Paper Mondi The Navigator Company Top 10 companies capacity 29 Mt, 71% of Holmen market Lecta Others 12 Mt, 29% of market 0 1 000 2 000 3 000 4 000 5 000 6 0
Slide 15: …and continues to deliver good cash flow
…and continues to deliver good cash flow • Focus is on delivering good cash flow for group’s sales and innovation transformation Positive cash flow after investing activities • In order to maintain cash flow − Concentrate on selected product segments − Ensure each machine is cash generating − Improv
Slide 16: Clear focus and direction in Paper
Clear focus and direction in Paper 45% 35% PRODUCTS PRODUCTS Slow • Office paper • Book paper • Coated fine paper • Uncoated magazine paper • Improved news Demand decline Selective growth of market share Grow market share 5% 15% PRODUCTS PRODUCTS • Coated magazine • Newsprint Paper (Kabel and Arapot
Slide 17: Wood Products division continues to build on strengths…
Wood Products division continues to build on strengths… • #1 in Europe in supplying wooden construction material − 210% Classic sawn Europe − 110% CLT global − 150% Industrial components Europe • #4 in the world in supplying wooden construction material • Increased ROOC target from 18% to 20% 17 8 N
Slide 18: …strengthening our premium offering through digitalisation…
…strengthening our premium offering through digitalisation… Products Services E-tools Cross laminated Laminated Veneer Construction beams timber - CLT Lumber - LVL Panel systems Modular systems MySupply Pellet webshop Building systems E-business Walls, floor, roofs etc. Industrial components Bio com
Slide 19: …and innovations taking wood to new heights
…and innovations taking wood to new heights Photo: Lendlease PEFC-certified house Mäihä, Finland Ris de Orangis, Paris, France Student homes Haugesund, Norway International House Sydney, Australia Trummens Strand, Sweden Crome Court, UK Green Office Enjoy, France. BBCA-certified Wine Museum, Bordeau
Slide 20: Photo: Lendlease
20 8 November 2017 Photo: Lendlease Stora Enso CMD
Slide 21: Wood Products: Gaining market share against competing materials
Wood Products: Gaining market share against competing materials High PRODUCTS 17% 25% • CLT • Const. Beam PRODUCTS Pellets • Bio Comp. Start up Q1/18 Annual real growth rate (%) • LVL (ramp-up) • Indus Comp. Selective growth of • Classic Planed market share Grow market share PRODUCTS PRODUCTS • Trad
Slide 22: Selective M&A to strengthen our business
Selective M&A to strengthen our business • Acquisitions to be considered in the following areas: − To strengthen relative market share in focused areas − To strengthen existing synergies − New products and technologies supporting our strategies • Supporting sustainable profitable growth 22 8 Novembe
Slide 23: Sustainable profitable growth driving dividends
Sustainable profitable growth driving dividends MEUR • Dividends linked to the long- term performance • 50% of net income over the cycle Dividend of EUR 0.37 per share for 2016 totalling EUR 292 million was paid in May 2017 * Distribution of capital 23 8 November 2017 Stora Enso CMD
Slide 24: 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 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