Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Day (May 2015)
33 slides from Stora Enso Oyj Class A's investor day presentation, May 28, 2015
Slide 1: Jari Latvanen
Jari Latvanen Executive Vice President, Head of Division Consumer Board • Solid track record from food industry – Chief Executive Officer, Findus Nordic 2010-2014 • Awarded with the Swedish Food Prize 2013 for managing the infamous horse meat scandal and acting as a whistle blower, White Guide award
Slide 2: Division Consumer Board
Division Consumer Board London, 28 May 2015 Jari Latvanen EVP Stora Enso Consumer Board The renewable materials company
Slide 3: Disclaimer
Disclaimer It should be noted that certain statements herein which are not existing and future collaboration arrangements, changes in historical facts, including, without limitation those regarding business strategy or development plans or targets, changes in expectations for market growth and devel
Slide 4: A broad range of solutions to fit customer demands
A broad range of solutions to fit customer demands High quality board for premium segments Liquid Packaging Food Service Board General Packaging Cigarette Graphical The renewable The renewablematerials company materials company
Slide 5: A broad range of solutions to fit customer demands
A broad range of solutions to fit customer demands High quality board for premium segments Liquid Packaging Food Service Board General Packaging Cigarette Graphical Chocolate and Cosmetics and Pharmaceuticals Food packaging Drinks, wines and confectionary luxury spirits The renewable The renewablema
Slide 6: Versatile and competitive range of boards
Versatile and competitive range of boards Strong brands supporting demanding end-uses Our products SBS SUB FBB WLC LPB Solid Folding White Lined Liquid Solid Bleached Cupstock Unbleached Boxboard Chipboard Packaging Sulphate Board Board Our brands The renewable The renewablematerials company materia
Slide 7: Consumers benefit from packaging
Consumers benefit from packaging But also believe packaging is excessive, expensive and bad for the environment The modern consumer • Responsible • Convenient and stress-free • Zero tolerance • Digital adoption • It’s all about information The renewable The renewablematerials company materials compa
Slide 8: Packaging sells!
Packaging sells! Good packaging strengthens brand identity and increase consumer satisfaction 64% of consumers say the brand is important when purchasing products used on a regular basis Stora Enso Ensocoat™ Source: Stora Enso Consumer Board consumer survey 2014 The renewable The renewablematerials
Slide 9: Packaging sells!
Packaging sells! Good packaging strengthens brand identity and increase consumer satisfaction 33% of consumers have purchased a new product due to the packaging Stora Enso Ensocoat™ Source: Stora Enso Consumer Board consumer survey 2014 The renewable The renewablematerials company materials company
Slide 10: The global consumer board market is growing
The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 Latin America North America Europe China Rest of Asia Africa 3 261 2 644 1 592 10 175 13 824 18 157 10 507 12 992 11 552 9 761 9 069 9 307 9 751 5 166 7 611 760 608 434 2000 2013 2020 2000 2013 2020 2000 2013 2
Slide 11: The global consumer board market is growing
The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 3.0% 3.0% 0.4% 0.4% 1.8% 1.8% 3.3% 4.0% 4.0% 3.1% 3.1% 3.3% Latin America North America Europe China Rest of Asia Africa SBS 0.3% SBS 1.7% WLC 2.6% LPB 3.1% CUK 2.8% WLC 0.3% LPB 1.6% WLC 2.8% FBB 2.4% LPB -0.7
Slide 12: The global consumer board market is growing
The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 Above region average LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% 3.0% 3.0% 0.4% 0.4% 1.8% 1.8% 3.3% 4.0% 4.0% 3.1% 3.1% 3.3% Latin America North America Europe China Rest of Asia Africa SBS 0.3% SBS 1.7% WLC 2
Slide 13: The global consumer board market is growing
The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 Above region average LPB 7.8% FSB 7.6% FSB 3.2% FBB 7.4% FBB 3.0% CUK 6.3% CUK 1.8% SBS 4.3% 3.0% 3.0% 0.4% 0.4% 1.8% 1.8% 3.3% 4.0% 4.0% 3.1% 3.1% 3.3% Latin America North America Europe China Rest of Asia Afr
Slide 14: The global consumer board market is growing
The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 Above region average LPB 7.8% FSB 7.6% FBB 1.5% FSB 3.2% FBB 7.4% FSB 1.5% FBB 3.0% CUK 6.3% CUK 0.5% CUK 1.8% SBS 4.3% 3.0% 3.0% 0.4% 0.4% 1.8% 1.8% 3.3% 4.0% 4.0% 3.1% 3.1% 3.3% Latin America North America Eu
Slide 15: The global consumer board market is growing
The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 Above region average FBB 5.0% CUK 4.2% LPB 7.8% WLC 4.1% FSB 7.6% FBB 5.7% FSB 4.0% FBB 1.5% FSB 3.2% FBB 7.4% FSB 4.5% LPB 3.9% LPB 3.6% FSB 1.5% FBB 3.0% CUK 6.3% CUK 3.2% FSB 3.8% SBS 3.4% CUK 0.5% CUK 1.8%
Slide 16: Huge opportunities in expanding our coverage
Huge opportunities in expanding our coverage Our potential market is much higher than current board packaging demands Other packaging materials Board 2008 2009 2010 2011 2012 2013 Source: SmithersPIRA The renewable The renewablematerials company materials company
Slide 17: Huge opportunities in expanding our coverage
Huge opportunities in expanding our coverage Our potential market is much higher than current board packaging demands Other packaging materials Board 2008 2009 2010 2011 2012 2013 Future Source: SmithersPIRA… The renewable The renewablematerials company materials company
Slide 18: Board's merits compared to other materials
Board’s merits compared to other materials Consumers prefer board Consumer appeal Premium perception “What is your attitude “Which type of packaging do towards the following you think is the most packaging materials?” environmentally friendly? % positive 70 62 61 55% 47 46 43 19 10 8 4 3 2 Stora Ens
Slide 19: Board's merits compared to other materials
Board’s merits compared to other materials We are aiming for a 100% renewable packaging Renewable & Recyclable Sustainable Beverage carton recycling (EU28+CH+NO) 450 45% Volume (tonnes) 400 40% 350 35% 300 30% 250 25% 200 20% 150 15% 100 10% 50 5% 0 0% 1998 2000 2002 2004 2006 2008 2010 2012 Source:
Slide 20: A focused strategy for growth
A focused strategy for growth Finding growth in a demanding business environment Consistent quality Right price Good service License to operate Efficient supply chain Global responsibility The renewable The renewablematerials company materials company
Slide 21: A focused strategy for growth
A focused strategy for growth Finding growth in a demanding business environment Customer focused portfolio Strong brands and top quality Premium offering Innovation and R&D Marketing and Communication Consistent quality Right price Good service License to operate Efficient supply chain Global respo
Slide 22: A focused strategy for growth
A focused strategy for growth Finding growth in a demanding business environment Consumer foresight Partner- Full value chain understanding ship offering Service offering to brand owners Customer focused portfolio Strong brands and top quality Premium offering Innovation and R&D Marketing and Commun
Slide 23: Our strengths
Our strengths We focus on adding value to our customers • Renewable Solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D The renewable The renewablematerials company materials company
Slide 24: Our strengths
Our strengths We focus on adding value to our customers • Renewable Solutions • Customer focus No.1 “Stora Enso Tambrite most valuable cartonboard brand among European brand owners.” • Global coverage • Competitive assets • Exciting Innovation and R&D “The Brand Tracking Survey – Cartonboard for con
Slide 25: Our strengths
Our strengths Global products, local contacts • Renewable Solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D Stora Enso Consumer Board mills Countries where Stora Enso Consumer Board has sales The renewable The renewablematerials company materials company
Slide 26: Our strengths
Our strengths Global products, local contacts • Renewable Solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D Stora Enso Consumer Board mills Countries where Stora Enso Consumer Board has sales The renewable The renewablematerials company materials company
Slide 27: Investing in China part of the winning strategy
Investing in China part of the winning strategy Capitalising on our strategic board grades Cartonboard demand in China 2000-2020 • Continued good demand for virgin 20 000 fibre board in China 18 000 • Strengthen leading global LPB 16 000 position 14 000 CAGR 6.5% • Asian production base 12 000 10 00
Slide 28: Our strengths
Our strengths Investing for top quality and competitiveness • Renewable solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D The renewable The renewablematerials company materials company
Slide 29: Our strengths
Our strengths Thinking out of the box mentality • Renewable solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D Photo courtesy by Hörauf Stora Enso CKB The renewable The renewablematerials company materials company
Slide 30: Best-in-class margins
Best-in-class margins Sales EBITDA margin ROOC 2 241 2 297 2 223 2 209 19,1% 17,8% 16,5% 16,1% 15,4% 15,8% 14,4% 13,6% 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014 The renewable materials company
Slide 31: Focus on costs and working capital
Focus on costs and working capital Fixed costs Variable costs per tonne OWC/sales Index 2010=100 Index 2010=100 Index 2010=100 105 105 105 101 100 100 100 100 100 100 100 99 97 97 95 95 95 95 94 90 90 90 89 85 85 85 85 80 80 80 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014 The renewabl
Slide 32: Building the future Consumer Board
Building the future Consumer Board FOCUSED CUSTOMER BASED STRATEGY STRONG FINANCIAL PERFORMANCE CONSUMER DRIVEN INNOVATIONS The renewable materials company
Slide 33: World of packaging
World of packaging finest MOR A CHARDOR (Cibola MANOLO BLAHNIK ae be a r SIEMENS VW, == == 2 2 Aol Ny —a REMY MARTIN .— im fyi PHILIPS ‘ua rT WY Huawel resco SONY tants s < Eveuy Little balps aoe PRADA PE PG > | E Microsoft TIFFANY & Co.