Stora Enso transformation. CFO Karl-Henrik Sundström

Transcription

1 Stora Enso transformation CFO Karl-Henrik Sundström 12 September 2012

2 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 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. Stora Enso presentation 12 September

3 Stora Enso portfolio FY 2011 Group Sales, EUR million Operational EBIT, EUR million Printing and Reading Biomaterials Building and Living Renewable Packaging Other 29% 0% 46% 34,8 % 5,5 % 32,9 % 15% 10% 6,0 % 19,5 % Stora Enso presentation 12 September

4 Stora Enso s strategy Stora Enso presentation 12 September

5 Strategy Transformation from a European pulp and paper company to a value creating, growth markets renewable materials company Stora Enso presentation 12 September

6 Stora Enso s engines Cash engines Printing and Reading Nordic market pulp Low cost base saw milling Growth engines Renewable Packaging Plantation based pulp Building and living Stora Enso presentation 12 September

7 Printing and Reading for cash generation Stora Enso presentation 12 September

8 Western European paper* demand /July Seasonally adjusted * Paper: News, UMO, UMI, SC, CM, WFC & WFU Source: EuroGraph & PPPC Stora Enso presentation 12 September

9 How do we manage our Paper assets? Added value to customers by - Differentiation - Innovation Steady cash flow by - Cost efficiency - Focused capex - Readiness for demand changes Stora Enso presentation 12 September

10 Stora Enso s transformation Stora Enso presentation 12 September

11 More than 50% of the captive biomass comes from Southern Hemisphere. Stora Enso s plantations and forest assets Bergvik Skog, Sweden 2,3 million ha of land in Sweden, ha in Latvia (ownership of 43%), Tornator, Finland ha of forestland in Finland, ha in Romania, and ha in Estonia (ownership 41%) Guangxi, Southern China ha of land of which ha eucalyptus, ha other species Veracel plantations, Brazil ha of land of which ha eucalyptus plantations Rio Grande do Sul, Brazil ha of land of which ha eucalyptus plantations Montes del Plata, Uruguay ha of land of which ha planted Stora Enso presentation 12 September

12 Timing of strategic projects Guangxi, China Pulp and Board mill, start-up Q Skoghall, Sweden Investment start-up end Q Ostroleka, Poland Container board machine startup Q Montes del Plata, Uruguay 60% complete Pulp mill, start-up mid-year 2013 Stora Enso presentation 12 September

13 Strategic investments to transform the Group Stora Enso presentation 12 September

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15 Q performance as anticipated Stora Enso presentation 12 September

16 Summary financials Q EUR million Q2/2012 Q1/2012 Q2/2011 Change % Q2 12/Q2 11 Change % Q2 12/Q1 12 Sales Operational EBITDA Operational EBIT Profit before tax. excl. NRI Profit before tax EPS excl. NRI (EUR) EPS (basic). EUR Operational ROCE. % Cash flow from operations Cash flow after investing activities Debt/equity Stora Enso presentation 12 September

17 Working capital improved Q Q *Operative working capital = trade receivables + inventories trade payables Stora Enso presentation 12 September

18 Printing and Reading and Renewable Packaging created the cash flow in H Stora Enso presentation 12 September

19 Net Debt /Operational EBITDA Stora Enso presentation 12 September

20 Guidance for Q Sales in Q roughly similar level than Q Operational EBIT close to the similar level or somewhat higher than in Q Stora Enso presentation 12 September

21 Summary European paper and wood products markets continue to weaken Additional cost reductions and temporary production curtailments planned in H Strategic investments progressing to transform the Group Stora Enso presentation 12 September

22 Stora Enso presentation 12 September