2015 capital markets day presentation by jari latvanen
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2015 capital markets day presentation by jari latvanen
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2015 capital markets day presentation by jari latvanen
- 1. The renewable materials company Jari Latvanen Executive Vice President, Head of Division Consumer Board The renewable materials company • 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, Taste Developer of the Year 2013 – Various leadership positions within Nestlé e.g. Managing Director, Nestlé Czech Republic and Slovakia, Assistant Vice President, Zone Europe Nestlé, HQ Switzerland, Managing Director Nestlé Sweden, Marketing Director Nestlé Nordics • Brings unique understanding of consumers and retailers from working with strong brands in the food industry • Strategic leader and food industry specialist leading innovative and interactive organization's focusing on active consumer based marketing
- 2. London, 28 May 2015 Jari Latvanen EVP Stora Enso Consumer Board Division Consumer Board The renewable materials company
- 3. 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 similar expressions, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Since these statements are based on current plans. estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those 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 of efficiencies therein, continued success of product development, acceptance of new products or services by 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 protection created by the Group’s patents and other intellectual property rights, the availability of capital on acceptable 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 the Group, 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 geographic markets or fluctuations in exchange and interest rates. The renewable materials companyStora Enso Capital Markets Day, 28 May 2015 Disclaimer
- 4. The renewable materials company A broad range of solutions to fit customer demands High quality board for premium segments The renewable materials company Liquid Packaging Food Service Board General Packaging Cigarette Graphical
- 5. The renewable materials company A broad range of solutions to fit customer demands High quality board for premium segments The renewable materials company Liquid Packaging Food Service Board General Packaging Cigarette Graphical Chocolate and confectionary Cosmetics and luxury Pharmaceuticals Food packaging Drinks, wines and spirits
- 6. The renewable materials company Versatile and competitive range of boards Strong brands supporting demanding end-uses The renewable materials company SBS Solid Bleached Sulphate SUB Solid Unbleached Board FBB Folding Boxboard WLC White Lined Chipboard Cupstock LPB Liquid Packaging Board Our products Our brands
- 7. The renewable materials company Consumers benefit from packaging But also believe packaging is excessive, expensive and bad for the environment The renewable materials company The modern consumer • Responsible • Convenient and stress-free • Zero tolerance • Digital adoption • It’s all about information
- 8. The renewable materials company Packaging sells! Good packaging strengthens brand identity and increase consumer satisfaction The renewable materials company Stora Enso Ensocoat™ 64%of consumers say the brand is important when purchasing products used on a regular basis Source: Stora Enso Consumer Board consumer survey 2014
- 9. The renewable materials company Packaging sells! Good packaging strengthens brand identity and increase consumer satisfaction The renewable materials company 33%of consumers have purchased a new product due to the packaging Source: Stora Enso Consumer Board consumer survey 2014 Stora Enso Ensocoat™
- 10. 9751 10175 11552 2000 2013 2020 9761 9069 9307 2000 2013 2020 1592 2644 3261 2000 2013 2020 The renewable materials company The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 The renewable materials company 7611 10507 12992 2000 2013 2020 5166 13824 181572000 2013 2020 434 608 760 2000 2013 2020 Latin America North America Europe Rest of AsiaChina Africa Source: Pöyry Management Consulting
- 11. The renewable materials company The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 The renewable materials company Source: Pöyry Management Consulting SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% CUK 2.8% FBB 2.4% SBS 1.9% WLC 2.6% LPB 3.1% WLC 2.8% Latin America North America Europe China Rest of Asia Africa 3.0% 0.4% 1.8% 3.3%4.0% 3.1%3.0% 0.4% 1.8% 4.0% 3.1% 3.3%
- 12. The renewable materials company The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 The renewable materials company LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% Above region average Source: Pöyry Management Consulting SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% CUK 2.8% FBB 2.4% SBS 1.9% WLC 2.6% LPB 3.1% WLC 2.8% Latin America North America Europe China Rest of Asia Africa Below region average 3.0% 0.4% 1.8% 3.3%4.0% 3.1%3.0% 0.4% 1.8% 4.0% 3.1% 3.3%
- 13. The renewable materials company The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 The renewable materials company FSB 3.2% FBB 3.0% CUK 1.8% LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% Above region average Source: Pöyry Management Consulting SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% CUK 2.8% FBB 2.4% SBS 1.9% WLC 2.6% LPB 3.1% WLC 2.8% Latin America North America Europe China Rest of Asia Africa Below region average 3.0% 0.4% 1.8% 3.3%4.0% 3.1%3.0% 0.4% 1.8% 4.0% 3.1% 3.3%
- 14. The renewable materials company The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 The renewable materials company FBB 1.5% FSB 1.5% CUK 0.5% FSB 3.2% FBB 3.0% CUK 1.8% LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% Above region average Source: Pöyry Management Consulting SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% CUK 2.8% FBB 2.4% SBS 1.9% WLC 2.6% LPB 3.1% WLC 2.8% Latin America North America Europe China Rest of Asia Africa Below region average 3.0% 0.4% 1.8% 3.3%4.0% 3.1%3.0% 0.4% 1.8% 4.0% 3.1% 3.3%
- 15. The renewable materials company The global consumer board market is growing Growth of 9 million tonnes expected 2013-2020 The renewable materials company FBB 1.5% FSB 1.5% CUK 0.5% FBB 5.0% CUK 4.2% WLC 4.1% FSB 4.0% LPB 3.6% SBS 3.4% FSB 3.2% FBB 3.0% CUK 1.8% LPB 3.9% FSB 3.8% WLC 3.6% LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% FBB 5.7% FSB 4.5% CUK 3.2% SBS 3.2% Above region average Source: Pöyry Management Consulting SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% CUK 2.8% FBB 2.4% SBS 1.9% WLC 2.6% LPB 3.1% WLC 2.8% Latin America North America Europe China Rest of Asia Africa Below region average 3.0% 0.4% 1.8% 3.3%4.0% 3.1%3.0% 0.4% 1.8% 4.0% 3.1% 3.3%
- 16. The renewable materials company Huge opportunities in expanding our coverage Our potential market is much higher than current board packaging demands The renewable materials company Source: SmithersPIRA 2008 2009 2010 2011 2012 2013 Board Other packaging materials
- 17. The renewable materials company Huge opportunities in expanding our coverage Our potential market is much higher than current board packaging demands The renewable materials company 2008 2009 2010 2011 2012 2013 Board Other packaging materials Future Source: SmithersPIRA…
- 18. The renewable materials company Board’s merits compared to other materials Consumers prefer board The renewable materials company 70 62 61 47 46 43 Paperboard Glass Wood Metal Aluminium Plastic 55% 19 10 8 4 3 2 Paperboard Glass Plastic Wood Dontknow Aluminium Metal Source: Stora Enso Consumer Board consumer survey 2014 “What is your attitude towards the following packaging materials?” “Which type of packaging do you think is the most environmentally friendly? % positive Consumer appeal Premium perception Stora Enso Ensocoat 2S
- 19. The renewable materials company Board’s merits compared to other materials We are aiming for a 100% renewable packaging The renewable materials company Renewable & Recyclable Sustainable 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0 50 100 150 200 250 300 350 400 450 1998 2000 2002 2004 2006 2008 2010 2012 Beverage carton recycling (EU28+CH+NO) Volume (tonnes) Source: ACE
- 20. The renewable materials company A focused strategy for growth Finding growth in a demanding business environment The renewable materials company Consistent quality Right price Good service Efficient supply chain Global responsibility License to operate
- 21. The renewable materials company A focused strategy for growth Finding growth in a demanding business environment The renewable materials company Customer focused portfolio Strong brands and top quality Innovation and R&D Marketing and Communication Consistent quality Right price Good service Efficient supply chain Global responsibility Premium offering License to operate
- 22. The renewable materials company A focused strategy for growth Finding growth in a demanding business environment The renewable materials company Consumer foresight Full value chain understanding Service offering to brand owners Customer focused portfolio Strong brands and top quality Innovation and R&D Marketing and Communication Consistent quality Right price Good service Efficient supply chain Global responsibility Partner- ship offering Premium offering License to operate
- 23. The renewable materials company Our strengths We focus on adding value to our customers The renewable materials company • Renewable Solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D
- 24. The renewable materials company Our strengths We focus on adding value to our customers The renewable materials company “The Brand Tracking Survey – Cartonboard for consumer packaging 2014” defines and ranks the most valuable virgin fibre cartonboard brands in Western Europe according to consumer goods brand owners. The Opticom Brand Equity Index, takes into account both awareness of and satisfaction with the brand. Satisfaction encompasses quality and service associations, perceived brand performance as well as loyalty towards the cartonboard brand. No.1 “Stora Enso Tambrite most valuable cartonboard brand among European brand owners.” • Renewable Solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D
- 25. The renewable materials company Our strengths Global products, local contacts The renewable materials company Countries where Stora Enso Consumer Board has sales Stora Enso Consumer Board mills • Renewable Solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D
- 26. The renewable materials company Our strengths Global products, local contacts The renewable materials company Countries where Stora Enso Consumer Board has sales Stora Enso Consumer Board mills • Renewable Solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D
- 27. The renewable materials company Investing in China part of the winning strategy Capitalising on our strategic board grades The renewable materials company * Source: Pöyry Management Consulting 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cartonboard demand in China 2000-2020 CAGR 6.5% • Continued good demand for virgin fibre board in China • Strengthen leading global LPB position • Asian production base
- 28. The renewable materials company Our strengths Investing for top quality and competitiveness The renewable materials company • Renewable solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D
- 29. The renewable materials company Our strengths Thinking out of the box mentality The renewable materials company Stora Enso CKB • Renewable solutions • Customer focus • Global coverage • Competitive assets • Exciting Innovation and R&D Photo courtesy by Hörauf
- 30. Best-in-class margins The renewable materials company 2 223 2 209 2 241 2 297 2011 2012 2013 2014 Sales 16,5% 15,4% 16,1% 19,1% 2011 2012 2013 2014 EBITDA margin 15,8% 13,6% 14,4% 17,8% 2011 2012 2013 2014 ROOC
- 31. Focus on costs and working capital The renewable materials company Fixed costs 80 85 90 95 100 105 2011 2012 2013 2014 100 101 97 Variable costs per tonne 80 85 90 95 100 105 2011 2012 2013 2014 99 97 94 OWC/sales 80 85 90 95 100 105 2011 2012 2013 2014 100 89 85 Index 2010=100 Index 2010=100 Index 2010=100 100 100 95
- 32. Building the future Consumer Board The renewable materials company FOCUSED CUSTOMER BASED STRATEGY STRONG FINANCIAL PERFORMANCE CONSUMER DRIVEN INNOVATIONS