Cash and Growth Engines - transforming Stora Enso. CEO Jouko Karvinen

Transcription

1 Cash and Growth Engines - transforming Stora Enso CEO Jouko Karvinen 24 May 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 24 May

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4 Biomaterials 4

5 29 years 24 May 2012 Stora Enso presentation 5 24 May 2012

6 Lost volume Gained volume Shareholder value Buyer Average sales price Rest of the market Average sales price 0% 1% 2% 3% 0% 1% 2% 3% -5% -5% -10% -10% 6

7 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 7

8 Cash in & out 12% Capex restructuring Inv for future Net cash from operations 8% 4% 0% -4% -8% Printing & Reading Biomaterials Building & Living Renewable Packaging Group % of sales 8

9 Printing and Reading and Renewable Packaging created the cash flow in Q

10 Rethink strategy Growth markets Renewable packaging Biomaterials Competitive paper 10

11 1,1 1,5 6,0 0,5 0,7 11,6 6,2 6,3 3,8 4, Strongest growth in demand of virgin fibre-based consumer board will be in Asia CAGR 0,2 % CAGR 1,4 % CAGR 4,6 % CAGR 6,9 % Eastern Europe North America Western Europe CAGR 3,3 % Middle East & Africa Fibre-based consumer board consumption CAGR Asia Million tonnes CAGR 3,5 % South America China 9% Pakistan 9% India 6% Middle East 4% Stora Enso presentation Source: Pöyry and Stora Enso 24 May

12 Focusing on high quality segments in China Unique position Chinese platform for growth A world leading position Technologies and specifications Committed customers Robust sustainability Unique integrate Established footprint Innovation Well prepared project to accelerete growth 12

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14 Earlier announced strategic investments Earlier announced strategic investments Ostroleka, light weight containerboard machine, Poland Progress Scheduled to be completed in the first quarter of 2013 Montes del Plata, pulp mill, Uruguay Expected to be operational by the end of the first quarter of

15 New investments will contribute well to cash generation Capex Inv for future EBITDA from new projects restructuring Net cash from operations Investment for future and net cash from operations path 20XX 15

16 Growth Operating Capital XX 6 % 24 % 35 % 54 % 65 % 16 % Printing and Reading Biomaterials Renewable Packaging Building and Living Cash Engine Growth Engine 16

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18 Earnings remained moderate as expected during Q1 Operational EBIT EUR 147 million Strong cash flow EUR 224 million Liquidity EUR million Stora Enso presentation 24 May

19 Operational EBIT in line with previous quarter 19

20 Flexibility improvements continued Fixed Cost/Sales 20

21 Plan to increase competitiveness in Coated Magazine Restructuring at Corbehem, Veitsiluoto and Kabel Mills Cost efficiency and productivity improvements Reduction of costs by EUR 48 million /a Full impact Q onwards Q1 cash provision about EUR 5 million Q1 fixed asset write-down about EUR 1 million Investments EUR 18 million to quality, productivity and energy savings Planned employee reduction 110 people Actions completed by end 2012 Stora Enso presentation 24 May

22 Swedish maintenance streamlining plan To increase further efficiency and flexibility by restructuring and changing processes Impacting Renewable Packaging and Printing and Reading Reduction of costs by EUR 21 million /a Starting gradually from late 2012 onwards Cash provisions for Q1 Renewable packaging EUR 6 million Printing and reading EUR 4 million Planned employee reduction 130 people 22

23 Sales and operational EBIT forecast for Q Compared with Q Group sales slightly higher and operational EBIT approximately in the range of Q Maintenance stoppages in several European mills with main impact in Biomaterials Benefits of improving variable costs slowly apparent in the results 23

24 Stora Enso presentation 24 May

25 Summary financials Q EUR million I/2012 IV/2011 I/2011 Change % Q1 12/Q1 11 Change % Q1 12/Q4 11 Sales % -0.3 % Operational EBITDA % 7.9 % Operational EBIT % 1.7 % Profit before tax. excl. NRI % % Profit before tax % % EPS excl. NRI (EUR) % 0.0 % Operational ROCE. % % 1.5 % Cash flow from operations % % Cash flow after investing activities % 50.9 % Debt/equity % -2.1 % Stora Enso presentation 24 May

26 Business improved q-on-q, other lower Operational EBIT by segments EUR million I/2012 IV/2011 I/2011 Change % Q112/Q111 Change % Q112/Q411 Printing and Reading % of sales Biomaterials % of sales Building and Living % of sales Renewable Packaging % of sales Other % of sales % 21.0% % 27.9 % % % % % % 63.3 % % 62.5 % % 88.1 % % 83.7 % % % % % Stora Enso presentation 24 May