CEO’s review            Mikko Helander    Annual General Meeting, 26 March 20131                  MetsäGroup              ...
Contents    1.   Consistent Strategy    2.   Key Events and Financial Performance in 2012    3.   Profitable Growth in Pap...
Consistent Strategy3           MetsäGroup           Metsä Board
Consistent Strategic Direction    ‒ Cartonboard is Metsä Board’s core business          ‒   Good growth potential         ...
Metsä Board is Heavily Focused on Paperboard.    Paper Business Accounts Only About a Quarter of Total Sales              ...
Profitability of Metsä Board’s Core Business is the Best in its Field                   Operating result, excl. non-recurr...
Metsä Board’s Productivity has been Improved by 70 per cent    since 2006                                          Capacit...
Balance Sheet Has Strengthened Materially                   Net gearing ratio, %                                          ...
Key Events and Financial      Performance in 20129             MetsäGroup             Metsä Board
Key Events in 2012 (1/2)‒ Metsä Board’s FBB market share in Europe continued to increase‒ EUR 120 million investment progr...
Key Events in 2012 (2/2)     ‒ Change of the company’s business name from M-real to Metsä Board     ‒ Divestment of 7.3 pe...
Profitability Improved in 2012                                Operating result, excl. non-            Operating result    ...
Material Positive Non-Recurring Items Booked in 2012      m€ in EBIT      Sale of 7.3 %-point holding in Metsä Fibre      ...
Short-Term Profitability Outlook     ‒ Metsä Board’s operating result for the first quarter of       2013, excluding non-r...
Profitable Growth in     Paperboard Business15             MetsäGroup             Metsä Board
The Strategy of Metsä Board’s Paperboard Business Has Been      Very Successful     ‒ Focusing on lightweight fresh forest...
Metsä Board’s Main Product, Lightweight and Pure FBB, Is an     Excellent Result of Successful Product Development     ‒ F...
Metsä Board’s Lightweight Folding Boxboard has Excellent     Growth Potential Globally     ‒ Global cartonboard demand gro...
Metsä Board is the World’s Leading Producer of High-Quality      Coated White Top Kraftliners     ‒ Fresh forest fibre lin...
Improving the Profitability at              Husum20                 MetsäGroup                 Metsä Board
New Measures Taken to Improve Husum’s Profitability     -   Husum is the largest unit in its field in Europe with top clas...
Focus Areas in 201322            MetsäGroup            Metsä Board
Focus Areas in 2013     1.   Fully benefit the potential of the expanded folding boxboard capacity     2.   Develop even m...
Thank you!  MetsäGroup  Metsä Board
Upcoming SlideShare
Loading in …5
×

Metsä Board AGM 2013, CEO's review

1,128 views
1,013 views

Published on

Metsä Board Annual General Meeting, held on 26th of March 2013, CEO's review presentation.

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,128
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Metsä Board AGM 2013, CEO's review

  1. 1. CEO’s review Mikko Helander Annual General Meeting, 26 March 20131 MetsäGroup Metsä Board
  2. 2. Contents 1. Consistent Strategy 2. Key Events and Financial Performance in 2012 3. Profitable Growth in Paperboard Business 4. Improving the Profitability of Husum 5. Focus Areas in 20132 MetsäGroup Metsä Board
  3. 3. Consistent Strategy3 MetsäGroup Metsä Board
  4. 4. Consistent Strategic Direction ‒ Cartonboard is Metsä Board’s core business ‒ Good growth potential ‒ Growth through maximising capacity of existing mills ‒ Smaller but healthier paper business ‒ Heavy re-engineering and successful divestments ‒ Extensive fibre know-how and pulp self-sufficiency ‒ Continuous development towards Super Productivity4 MetsäGroup Metsä Board
  5. 5. Metsä Board is Heavily Focused on Paperboard. Paper Business Accounts Only About a Quarter of Total Sales Sales distribution 2006 Sales distribution 4Q 2012Paper Paperboard 18%merchanting26% Market pulp 17% Paperboard 57% Paper 26% Paper 56%5 MetsäGroup Metsä Board
  6. 6. Profitability of Metsä Board’s Core Business is the Best in its Field Operating result, excl. non-recurring items, % of sales Metsä Board FBB and Linerboard6 MetsäGroup Metsä Board
  7. 7. Metsä Board’s Productivity has been Improved by 70 per cent since 2006 Capacity per employee in Metsä Board’s board, paper and pulp mills 1 800 1 500 tonnes/a/person 1 200 900 600 300 2006 2007 2008 2009 2010 2011 2012 2013E Year end7 MetsäGroup Metsä Board
  8. 8. Balance Sheet Has Strengthened Materially Net gearing ratio, % Net debt, EUR million 140 3000 126 120 2500 2403 106 99 100 90 1867 2000 84 83 80 72 1500 1254 60 1000 827 777 783 40 625 500 20 0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 20128 MetsäGroup Metsä Board
  9. 9. Key Events and Financial Performance in 20129 MetsäGroup Metsä Board
  10. 10. Key Events in 2012 (1/2)‒ Metsä Board’s FBB market share in Europe continued to increase‒ EUR 120 million investment programme was completed ‒ Increase of annual FBB capacity by 150,000 tonnes ‒ Commissioning of Kyro biopower plant‒ New coated linerboards from Kemi mill were launched successfully to the market‒ The strategic review of the paper business was finalized ‒ Heavy losses from Alizay were eliminated and the assets divested ‒ Unprofitable operations of Gohrsmühle were discontinued‒ Productivity at the Husum mill was improved considerably ‒ Increase of annual pulp production from 690,000 tonnes to 750,000 tonnes and paper production from 735,000 tonnes to over 800,000 tonnes10 MetsäGroup Metsä Board
  11. 11. Key Events in 2012 (2/2) ‒ Change of the company’s business name from M-real to Metsä Board ‒ Divestment of 7.3 per cent shareholding in Metsä Fibre Oy and 0.5 per cent shareholding in Pohjolan Voima Oy for 202 m€ ‒ Agreement on 600 m€ refinancing was signed ‒ Net debt reduced from 783 m€ to 625 m€11 MetsäGroup Metsä Board
  12. 12. Profitability Improved in 2012 Operating result, excl. non- Operating result ROCESales rec. items 15 m€ m€ 300 %3000 120 m€ 10 150 12,3 80 220 52000 0 2485 0 2108 40 74 2011 20121000 2011 2012 59 -150 -214 -5 -9,9 0 0 -10 -300 2011 2012 2011 2012 Result before taxes, excl. Result before taxes Net result, m€ Parent company net result, m€ non-rec. items 100 300 300 m€ 300 m€ m€ m€ 75 150 150 150 176 230 173 50 0 0 0 2011 2012 2011 2012 2011 2012 25 -168 30 -150 -281 -150 -273 -150 0 0 -300 -300 -300 2011 2012 12 MetsäGroup Metsä Board
  13. 13. Material Positive Non-Recurring Items Booked in 2012 m€ in EBIT Sale of 7.3 %-point holding in Metsä Fibre +85 Sale of 0.5 %-point holding in Pohjolan Voima +59 Reversal of impairments and reductions of cost provisions related to Alizay mill +11 Reduction of cost provisions related to Gohrsmühle mill +6 Cleaning expenses of a land area in Tampere in Finland -8 Other net non-recurring items -7 Total +14613 MetsäGroup Metsä Board
  14. 14. Short-Term Profitability Outlook ‒ Metsä Board’s operating result for the first quarter of 2013, excluding non-recurring items, is expected to improve slightly from the fourth quarter of 201214 MetsäGroup Metsä Board
  15. 15. Profitable Growth in Paperboard Business15 MetsäGroup Metsä Board
  16. 16. The Strategy of Metsä Board’s Paperboard Business Has Been Very Successful ‒ Focusing on lightweight fresh forest fibre paperboards and the brand owner customer segment EBIT, excl. non-recurring items, % of sales ‒ Reaching the European market leadership Metsä Board FBB and Linerboard ‒ Securing healthy price level as the market leader ‒ Productivity improved nearly 60% since 200616 MetsäGroup Metsä Board
  17. 17. Metsä Board’s Main Product, Lightweight and Pure FBB, Is an Excellent Result of Successful Product Development ‒ Folding boxboard is a multilayered packaging material made of fresh forest fibre ‒ Pure and safe folding boxboard is an excellent material also for the most demanding end uses ‒ Metsä Board’s folding boxboards are up to 30 per cent lighter than other paperboards ‒ Very significant factor for environment and cost competitiveness ‒ Metsä Board’s production machinery has been renewed and capacity increased by some 20 per cent Top know-how of paper, mechanical, energy and chemical engineering are combined in the production of high-quality folding boxboards17 MetsäGroup Metsä Board
  18. 18. Metsä Board’s Lightweight Folding Boxboard has Excellent Growth Potential Globally ‒ Global cartonboard demand growth 3-4 %/a Share of ecological FBB of total cartonboard market still low in all continents ‒ Excellent way for consumer goods companies to improve sustainability with Metsä Board’s ecological FBB Europe 34% North America 4% ‒ Metsä Board is further strengthening its market position Asia 22% globally ‒ Metsä Board has good potential to further increase its current FBB machines’ capacity with Smart Investments ‒ Threshold for new producers to enter high performance FBB segment is very high18 MetsäGroup Metsä Board
  19. 19. Metsä Board is the World’s Leading Producer of High-Quality Coated White Top Kraftliners ‒ Fresh forest fibre linerboards are used in high-quality corrugated boxes ‒ The coating section of the Kemi linerboard mill was upgraded at the end of 2011. The production will focus mainly on coated grades ‒ The new double coated linerboards, launched in spring 2012, have proven their success ‒ The profitability of the Kemi linerboard mill has been improved to a very good level ‒ Metsä Board has good potential to further increase its linerboard capacity with Smart Investments19 MetsäGroup Metsä Board
  20. 20. Improving the Profitability at Husum20 MetsäGroup Metsä Board
  21. 21. New Measures Taken to Improve Husum’s Profitability - Husum is the largest unit in its field in Europe with top class productivity - Increase of pulp production to 750,000 tonnes and paper production to over 800,000 tonnes - New measures to improve profitability are needed due to the difficult situation of the European paper market - New cost savings programme implemented - New, more profitable products are being developed in addition to current products - Possibilities to participate the European paper industry consolidation are still being surveyed21 MetsäGroup Metsä Board
  22. 22. Focus Areas in 201322 MetsäGroup Metsä Board
  23. 23. Focus Areas in 2013 1. Fully benefit the potential of the expanded folding boxboard capacity 2. Develop even more ecological paperboards and expand the current product range 3. Improve the profitability of the Husum mill 4. Continue the measures to further improve the quality, productivity and cost-competitiveness of operations23 MetsäGroup Metsä Board
  24. 24. Thank you! MetsäGroup Metsä Board

×