Exane BNP Paribas 14th European Seminar in Paris. Presentation by CEO Jouko Karvinen.

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Exane BNP Paribas 14th European Seminar in Paris. Presentation by CEO Jouko Karvinen. 13 June 2012.

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Exane BNP Paribas 14th European Seminar in Paris. Presentation by CEO Jouko Karvinen.

  1. 1. Chasing Growth in Constrained EnvironmentCEO Jouko Karvinen13 June 2012
  2. 2. It should be noted that certain statements herein which are not historical facts. including. withoutlimitation those regarding expectations for market growth and developments; expectations for growthand profitability; and statements preceded by “believes”. “expects”. “anticipates”. “foresees”. or similarexpressions. are forward-looking statements within the meaning of the United States Private SecuritiesLitigation Reform Act of 1995. Since these statements are based on current plans. estimates andprojections. they involve risks and uncertainties which may cause actual results to materially differ fromthose expressed in such forward-looking statements. Such factors include. but are not limited to: (1)operating factors such as continued success of manufacturing activities and the achievement ofefficiencies therein. continued success of product development. acceptance of new products or servicesby the Group’s targeted customers. success of the existing and future collaboration arrangements.changes in business strategy or development plans or targets. changes in the degree of protectioncreated by the Group’s patents and other intellectual property rights. the availability of capital onacceptable terms; (2) industry conditions. such as strength of product demand. intensity of competition.prevailing and future global market prices for the Group’s products and the pricing pressures thereto.price fluctuations in raw materials. financial condition of the customers and the competitors of theGroup. the potential introduction of competing products and technologies by competitors; and (3)general economic conditions. such as rates of economic growth in the Group’s principal geographicmarkets or fluctuations in exchange and interest rates. Stora Enso presentation 13 June 2012 2
  3. 3. Stora Enso portfolioFY 2011Group Sales, EUR 10 964.9 million Operational EBIT, 866.7 EUR million Printing and Reading Biomaterials Building and Living Renewable Packaging Other 0% 29% 5,5 % 46% 32,9 % 34,8 % 15% 10% 19,5 % 6,0 % Stora Enso presentation 13 June 2012 3
  4. 4. 4
  5. 5. Stora Enso’s engines Cash engines Growth engines Printing and Reading Renewable Packaging Nordic market pulp Plantation based pulp Low cost base saw milling Building and living Stora Enso presentation 13 June 2012 6
  6. 6. How to keep the cash engines going! Fine Paper• Restructuring at Nymölla, Uetersen, Oulu Mills and sheeting plans in Belgium and UK• Annual cost reductions ~ EUR 20 million, – From Q2 2011 to Q2 2012 Stora Enso presentation 13 June 2012 7
  7. 7. How to keep the cash engines going! Coated Magazine• Restructuring at Corbehem, Veitsiluoto and Kabel Mills• Cost efficiency and productivity improvements – Reduction of costs by EUR 48 million /a – Investments EUR 18 million – Full impact Q3 2013 onwards Stora Enso presentation 13 June 2012 8
  8. 8. How to keep the cash engines going! Swedish maintenance streamlining• To increase further efficiency and flexibility• Impacting Renewable Packaging and Printing and Reading• Reduction of costs by EUR 21 million /a – Starting gradually from late 2012 onwards Stora Enso presentation 13 June 2012 9
  9. 9. Shareholder value Buyer Rest of the market Average sales price Average sales price 0% 1% 2% 3% 0% 1% 2% 3% Gained volume Lost volume -5% -5% -10% -10%
  10. 10. Rethink strategy  Growth markets  Renewable packaging  Biomaterials  Competitive paper Stora Enso presentation 13 June 2012 11
  11. 11. Significant growth expected for corrugated packaging inEastern Europe, Asia and Middle East & Africa CAGR 4.4% CAGR CAGR CAGR 1.0% 4.1% 0.5% Western Eastern Europe Europe North America CAGR CAGR 2,7 % 4.3% Asia2010-2020Million tonnes South Middle East & America Africa Source: Pöyry and Stora Enso Stora Enso presentation 13 June 2012 12
  12. 12. OstrolekaStrengthening competitive position incorrugated packaging in Central andEastern Europe Stora Enso presentation 13 June 2012 13
  13. 13. Montes del PlataPulp mill investment in Uruguay Stora Enso presentation 13 June 2012 14
  14. 14. Strongest growth in demand of virgin fibre-basedconsumer board will be in Asia CAGR CAGR CAGR 0,2 % 1,4 % 4,6 % CAGR 6,9 % 1.5 0.9 4,4 3,8 Eastern 6,3 6,2 Europe Western CAGR Europe 3,3 % North 11,6 0,7 0,5 America Middle East 6,0 & Africa Fibre-based consumer Asia board consumption CAGR2010-2020 CAGR 3,5 %Million tonnes China 9% 1,5 1,1 Pakistan 9% South India 6% America Middle East 4% Stora Enso presentation 13 June 2012 Source: Pöyry and Stora Enso 15
  15. 15. Focusing on high quality segments in China Chinese platform Unique position for growth  A world leading position  Robust sustainability  Technologies and  Unique integrate specifications  Established footprint  Committed customers  Innovation Well prepared project to accelerete growth Stora Enso presentation 13 June 2012 16
  16. 16. Stora Enso presentation 13 June 2012 17
  17. 17. Biomaterials Stora Enso presentation 13 June 2012 18
  18. 18. 29 years Stora Enso presentation 13 June 2012 19
  19. 19. Wood has a good story to tell• Superior carbon footprint compared to any other building material• Joint efforts as an industry to remove all norms and standards that are unjustly discriminating against wood in various end-uses 1000 500 0 Steel frame Light weight Aircrete block Brick Concrete Wood g/kg concrete block -500 -1000 Carbon sink, g/kg -1500 CO2 emissions of manufacturing, g/kg -2000 Source: Puuinfo / Finnish Forest Industries Stora Enso presentation 13 June 2012 20
  20. 20. New investments will contribute well to cash generation Investment for future and net cash from operations 2011 Stora Enso presentation 13 June 2012 21
  21. 21. GrowthOperating Capital 2011 20XX Stora Enso presentation 13 June 2012 22

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