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 sustainable, competitive differentiation 10 June

4 rethink business rethink innovation rethink customer service rethink our attitude rethink products rethink processes rethink materials rethink the future 4

5 World needs a new approach to materials Source: 5

6 6

7 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 10 June

8 Production plants Production plants Pulp in bales 8

9 9

10 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

11 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 millio on % 6 % 4% 50 2 % 0 0 % *excluding NRI and fair valuation 11

12 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 12

13 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 13

14 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 14

15 15

16 Stora Enso leading industry restructuring Capacity closures since 2006 Paper 18% Pulp 9% Board 8% Wood Products 20% 16

17 Productivity increased Pricing over volumes, managing assets EUR Sales per employee Q1 08Q1 09Q1 10Q1 11Q1 17

18 Latest action: Fine Paper re-evaluating its working methods Building a new business model to increase cost competitiveness The plan is to restructure t operations at: Nymölla Mill, Sweden Uetersen Mill, Germany Oulu Mill, Finland Sheeting plants in Belgium and UK Reduce annual costs by approximately EUR 20 million Starting during 2011 and being completed by the end of Q The proposed measures would affect up to 285 employees Cash provision i of approximately EUR 16 million to be recorded d as NRI in Q operating profit 18

19 19

20 Mobile ecosystems accelerating impact? And ipod with itunes killed the music industry? 20

21 This is not about reading newspapers on tablets but how the consumers spend their time? % of U.S. populat tion using tec chnology/serv vice Social media adopted faster than any other device / media Facebook 3rd largest population after China and India Half of UK mobile web traffic Fastest growing segment year old females 1 out of 8 US couples married met on it Let s ask the people driving this change! Not the ones who are afraid of it (and tell us what we want to hear) 21

22 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 10 June

23 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 23

24 24

25 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 25

26 26

27 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 27

28 Rethinking continues!