Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Shareholder Meeting (March 2010)
63 slides from Stora Enso Oyj Class A's shareholder meeting presentation, Mar 31, 2010
Slide 1: Stora Enso AGM 2010
Headphones Kielikanavat Choose your language: English Svenska Suomi Stora Enso AGM 2010 31 March 2010 1
Slide 2: Stora Enso's Annual General Meeting
Stora Enso’s Annual General Meeting 31 March 2010
Slide 3: We are planting our future
We are planting our future Jouko Karvinen, CEO
Slide 4: 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 5: Our World in 2009
Our World in 2009
Slide 6: The Market Collapse - and beginning of a slow recovery
The Market Collapse - and beginning of a slow recovery Million Tonnes 27 26 25 24 23 22 21 20 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Quarters 1999 -
Slide 7: Demand still shrinking
Demand still shrinking % Demand change – Western Europe Publication and Fine Paper, 3-month moving average (y-o-y) Source: CEPI Stora Enso AGM 2010 31 March 2010 7
Slide 8: Positive growth in packaging boards
Positive growth in packaging boards % Demand change – Western Europe Source: CEPI Consumer Board, 3-month moving average (y-o-y) Stora Enso AGM 2010 31 March 2010 8
Slide 9: Too many paper machines in Europe
Too many paper machines in Europe Overcapacity in Western Europe as compared to normal (94%) operating rate Source: PPPC (Paper and Pulp Products Council) Stora Enso AGM 2010 31 March 2010 9
Slide 10: Our Performance
Our Performance
Slide 11: Our Actions
Our Actions In 2009 • Significant production curtailments – especially first half – Production maximised in lowest cost assets, heavy curtailments at high cost • Early focus on Cash Flow – Working capital management • Selective CAPEX limitations – Acceleration of Plantation Based Pulp Strategy – Cos
Slide 12: Our Results
Our Results In 2009 • Worst markets in a decade • Strong earnings recovery in second half – Total cost down EUR 767 million vs. 2008 • Very strong cash flow due to volume reduction and early actions – Working capital down EUR 504 million – Debt/Equity improved to 0.51 (0.56) • We must continue on ou
Slide 13: Fight for margins in falling demand
Fight for margins in falling demand EUR million EUR million Sales EBIT excl NRI and fair valuations Stora Enso AGM 2010 31 March 2010 13
Slide 14: Finished year with stronger balance sheet than started
Finished year with stronger balance sheet than started EUR million Cash Flow from operations Cash Flow after investing activities Stora Enso AGM 2010 31 March 2010 14
Slide 15: Our business in 2009
Our business in 2009 87 % of assets and 91 % of people in Europe Global Chemical Pulp Paper Europe Packaging Board Europe 1. International Paper 1. UPM 1. Smurfit Kappa 2. Georgia-Pacific 2. Stora Enso 2. Stora Enso 3. Fibria 3. Sappi 3. SCA 4. Stora Enso 4. Norske Skog 4. Mondi 5. Domtar 5. Burgo 5
Slide 16: Our Future
Our Future
Slide 17: Our directions
Our directions • New growth markets – Build growth where demand grows • Fibre-based packaging – For the good of the company – and the planet • Plantation-based pulp – Dramatic and sustainable cost advantage – Brazil, China and Uruguay • Selected paper grades – Stay where we can earn a return – Syner
Slide 18: Powered by the Sun - fibre based packaging
Powered by the Sun - fibre based packaging
Slide 19: Time to Re-Think
Time to Re-Think • We have to stop this – 90 million tons of plastic goes into landfill – 10 million tons of plastics goes into oceans – plastic only 10 % recycling rate • Re- – Cycle – New – Use – Duce – Place Stora Enso AGM 2010 31 March 2010 19
Slide 20: Growing our future, not moving it
Growing our future, not moving it Biomass, million m³sub/a Stora Enso AGM 2010 31 March 2010 20
Slide 21: Our Responsibility
Our Responsibility
Slide 22: Kiina
Kiina Stora Enso AGM 2010 31 March 2010 22
Slide 23: Stora Enso AGM 2010 31 March 2010
Stora Enso AGM 2010 31 March 2010 23
Slide 24: Stora Enso AGM 2010 31 March 2010
Stora Enso AGM 2010 31 March 2010 24
Slide 25: Stora Enso AGM 2010 31 March 2010
Stora Enso AGM 2010 31 March 2010 25
Slide 26: Hard Talk about Sustainability video
HARD TALK ABOUT SUSTAINABILITY VIDEO TEXTED IN FINNISH • Click here to see the video http://www.storaenso.com/INVESTORS/PRESENTATIONS/Pages/presentations.aspx Stora Enso AGM 2010 31 March 2010 26
Slide 27: Uruguay
Uruguay Stora Enso AGM 2010 31 March 2010 27
Slide 28: Responsible Competitive Differentiation
Responsible Competitive Differentiation Stora Enso AGM 2010 31 March 2010 28
Slide 29: Our Path
Our Path • Three years of changes in operating environment • Coming out stronger • We are on our way – the trees are already growing Stora Enso AGM 2010 31 March 2010 29
Slide 30: Where we are going, together
Where we are going, together • We want – Responsible, Sustainable Competitive Differentiation • To build – Responsible, Sustainable Financial Returns Stora Enso AGM 2010 31 March 2010 30
Slide 31: Stora Enso
STORAENSO
Slide 32: Distribution of Funds
Cc STORAENSO™ DISTRIBUTION OF FUNDS
Slide 33: EPS and Distribution of funds
EPS and Distribution of funds EUR * * Board proposal NRI = non-recurring items Stora Enso AGM 2010 31 March 2010 33
Slide 34: Distribution of funds
Distribution of funds • The Board of Directors proposes to the Annual General Meeting that the parent company’s loss for the accounting period last ended and the losses from previous periods evidenced in the parent company’s balance sheet, in aggregate EUR 1 251 265 583.67 be covered through the dec
Slide 35: Stora Enso
STORAENSO
Slide 36: Remuneration
Cc STORAENSO™ REMUNERATION
Slide 37: Remuneration Principles at Stora Enso Group
Remuneration Principles at Stora Enso Group - why do we have Remuneration Principles? • The company’s Remuneration Principles derives from the company’s overall business strategy and should form the foundation for all remuneration related policies and procedures within the company. • In a global com
Slide 38: Remuneration Principles at Stora Enso Group
Remuneration Principles at Stora Enso Group - content • Stora Enso aims to provide a level of remuneration that motivates, encourage, attracts and retains employee of the highest calibre. • To maximise the effectiveness of the Remuneration policy, careful consideration will be given in aligning the
Slide 39: Remuneration Principles at Stora Enso Group
Remuneration Principles at Stora Enso Group - content (continued) • A compensation determining factor is the company’s view of the weight of the position. All positions in Stora Enso should therefore be evaluated through a position evaluation system (IPE or similar). • Regular external benchmarking
Slide 40: Stora Enso
STORAENSO
Slide 41: Distribution of Funds
Cc STORAENSO™ DISTRIBUTION OF FUNDS
Slide 42: Distribution of funds
Distribution of funds • The Board of Directors proposes to the Annual General Meeting that the parent company’s loss for the accounting period last ended and the losses from previous periods evidenced in the parent company’s balance sheet, in aggregate EUR 1 251 265 583.67 be covered through the dec
Slide 43: Stora Enso
STORAENSO
Slide 44: Nomination Committee Report
NOMINATION COMMITTEE REPORT
Slide 45: Remuneration
Remuneration EUR ‘000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Board Chairman 118 118 135 135 135 135 135 135 135 135 67.5 Vice Chairman 42 42 84 85 85 85 85 85 85 85 42.5 Member 34 34 59 60 60 60 60 60 60 60 30 2008 onwards 40% of Board remuneration is in R shares The committees have
Slide 46: Annual remuneration
Annual remuneration - back to previous level • Board of Directors Chairman EUR 135 000 Deputy Chairman EUR 85 000 Members EUR 60 000 The Nomination Committee also proposes that 40% of the remuneration be paid in Stora Enso Series R shares purchased from the market. In addition, annual remuneration s
Slide 47: Composition of the Board of Directors
Composition of the Board of Directors The Nomination Committee proposes to the AGM that the Board of Directors shall have eight (8) members. Gunnar Brock Carla Grasso - new Birgitta Kantola Mikael Mäkinen - new Juha Rantanen Hans Stråberg Matti Vuoria Marcus Wallenberg Further the Committee recommen
Slide 48: Carla Grasso
Carla Grasso • Born 1962, Brazilian citizen • Master’s degree in Economic Policy • Executive Director of HR and Corporate Services of Cia Vale do Rio Doce, better known as Vale. • Earlier positions: – Secretary of Complementary Welfare Administration 1994–1997 – Special Assistant in the Ministry of
Slide 49: Mikael Mäkinen
Mikael Mäkinen • Born 1956, Finnish citizen • Master’s degree in Engineering • President and CEO of Cargotec Oyj since 2006 • extensive international experience in Wärtsilä Corporation. • Earlier positions: – Group Vice President, Ship Power, Wärtsilä 1999–2006 – Managing Director of Wärtsilä NSD Si
Slide 50: Appointment of Nomination Committee
Appointment of Nomination Committee Duties • The Nomination Committee proposes that the AGM appoint a Nomination Committee to prepare proposals concerning (a) the number of members of the Board of Directors, (b) the members of the Board of Directors, (c) the remuneration for the Chairman, Vice Chair
Slide 51: Stora Enso
STORAENSO
Slide 52: Annual remuneration
Annual remuneration - back to previous level • Board of Directors Chairman EUR 135 000 Deputy Chairman EUR 85 000 Members EUR 60 000 The Nomination Committee also proposes that 40% of the remuneration be paid in Stora Enso Series R shares purchased from the market. In addition, annual remuneration s
Slide 53: Stora Enso
STORAENSO
Slide 54: Composition of the Board of Directors
Composition of the Board of Directors The Nomination Committee proposes to the AGM that the Board of Directors shall have eight (8) members. Gunnar Brock Carla Grasso - new Birgitta Kantola Mikael Mäkinen - new Juha Rantanen Hans Stråberg Matti Vuoria Marcus Wallenberg Further the Committee recommen
Slide 55: Stora Enso
STORAENSO
Slide 56: Election of Auditors
Election of Auditors • The Board of Directors proposes to the AGM that Authorised Public Accountants Deloitte & Touche Oy continue as the statutory auditor of the Company until the end of the following AGM. Stora Enso AGM 2010 31 March 2010 56
Slide 57: Stora Enso
STORAENSO
Slide 58: Appointment of Nomination Committee
Appointment of Nomination Committee Duties • The Nomination Committee proposes that the AGM appoint a Nomination Committee to prepare proposals concerning (a) the number of members of the Board of Directors, (b) the members of the Board of Directors, (c) the remuneration for the Chairman, Vice Chair
Slide 59: Stora Enso
STORAENSO
Slide 60: Proposal to amend the Articles of Association
Proposal by the Board of Directors to amend the Articles of Association • The Board of Directors proposes to the AGM that Section 10 of the Articles of Association of the Company be amended so that the notice to the General Meeting shall be issued not later than three weeks before the date of the Ge
Slide 61: Stora Enso
STORAENSO
Slide 62: Thank you
Cc STORAENSO™ THANK YOU
Slide 63: Stora Enso
STORAENSO