rethink. Stora Enso Q Strong Earnings more than doubled CFO Markus Rauramo

Transcription

1 rethink. Stora Enso Q Strong Earnings more than doubled CFO Markus Rauramo

2 It should be noted thatt certain statements t t herein which h are not historical i facts, including, without t 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 t t are based on current plans, estimates t 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 i i therein, continued success of product development, acceptance of new products orservices 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. 2

3 Stora Enso ss business What we do Publication paper Fine paper Packaging Wood products 24 % Sales, EUR million 18 % 21 % 15 % Operating profit, EUR 248 million* 39 % 32 % 12 % 9 % 8 % 10 % 11 % 5% Consumer Board Industrial Packaging Newsprint and Book Paper Magazine Paper Fine Paper Wood Products Consumer Board Industrial Packaging Newsprint and Book Paper Magazine Paper Fine Paper Wood Products *excluding non-recurring items and fair valuations rethink. Stora Enso 25 May

4 Employees and capacity Employees by country 2010* Paper and board capacity by country 2011 *Continuing operations 4

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6 Q Strong Earnings more than doubled Sales up 19% EBIT excl NRI and fair valuations up 108% EPS excl NRI up 47% Q compared to Q

7 Earnings improving Higher prices and continued productivity improvement 300 EBIT excl NRI and fair valuation EBIT margin*, % 4 Q avg ROCE*, % 4 Q avg 12 % % EUR million % 6 % 4% 50 2 % 0 0 % *excluding NRI and fair valuation 7

8 RCP continued to drive inflation EUR/t tonne Mixed OCC De-inking 0 German RCP price development, free delivered Source: Verband ddeutscher Papierfabriken/Stora ik Enso 8

9 Higher pulp p prices positive Due to 1 million tonnes net market pulp position USD/t tonne Bleached softwood kraftpulp Bleached hardwood kraft pulp Source: FOEX 9

10 Net debt down 15% y-o-y Net Debt Net Debt/EBITDA excl NRI and fair valuations 6,0 5,0 ion EUR milli ,0 3,0 2,0 1,0 00 0,0 SENA divestment closed in Q Merchants divestment closed in Q EBITDA: Continuing operations Net debt: Total operations 10

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12 Stora Enso leading industry restructuring Capacity closures since 2006 Paper 18% Pulp 9% Board 8% Wood Products 20% 12

13 Personnel reduced by 33% Average personnel Q1 13

14 Productivity increased Pricing over volumes, managing assets EUR Sales per employee Q1 08Q1 09Q1 10Q1 11Q1 14

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16 Proof points of action Our direction Growth markets Growth markets Proof points: Inpac acquisition Plantation-based pulp Ostroleka containerboard investment t Investment to Montes del Plata Plantation-based Fibre-based packaging pulp Proof point: Investment to Montes del Plata Selected paper grades Fibre-based packaging Maintain and develop global leadership position Proof points: Inpac acquisition Ostroleka containerboard investment Selected paper grades 25 May

17 Implementing strategy High return growth businesses Project On target Other progress Montes del Plata pulp mill, Uruguay Machinery and port suppliers selected and contracted for MdP Ostroleka Proceeding as planned containerboard machine, Poland CLT investment, Ybbs, Austria All permits received, main machine supplier selected Skoghall investment Support wood handling in Sweden and further develop Skoghall mill Inpac packaging company in China and India Integration planning strong 17

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19 Outlook - increasing concerns on cost inflation Inflation and maintenance limit it Q2 earnings improvement y-o-y Inflation estimate increased to ~4% for the full year 2011 compared to 2010 Consumer Board Industrial Packaging Demand development Q2/11 vs Q2/10 Price development Q2/11 vs Q1/11 Actions to fight inflation continue to be even more important Newsprint and Book Paper Coated Magazine Paper Uncoated Magazine Paper Fine Paper Wood Products 19

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21 Summary Strong quarter Inflation pressure 80% of CAPEX for strategic high return growth areas in 2011 Investments in strategic high- return growth areas Montes del Plata Ostroleka Ybbs Skoghall 21

22 Rethinking continues!