Ahlstrom The global source for fiberbased. SEB Enskilda Nordic Seminar Copenhagen 10 January 2007 CEO Jukka Moisio

Transcription

1 Ahlstrom The global source for fiberbased materials SEB Enskilda Nordic Seminar Copenhagen 10 January 2007 CEO Jukka Moisio 1

2 IPO proceeds used for growth mainly in BRIC-countries Non-competitive operations closed in Europe and USA Ahlstrom today Well positioned to improve financial performance and grow in 2008 and beyond 2

3 Leading specialty materials company Specialty papers market positions (1) Nonwovens market positions (3) Ahlstrom (2) Freudenberg Stora Enso Brazil and China joint ventures continue to strengthen market position Mead Westvaco IP Arjo Wiggins August Koehler Felix- Schoeller Fiberweb Johns Manville Kimberly- Clark PGI Ahlstrom DuPont Ahlstrom # 3 nonwovens company UPM Buckeye Cham Paper Group Companhia Providencia Tons'000 Wausau- Mosinee Owens- Corning $'m 3 Notes: 1) Source: Jaakko Pöyry Consulting, Ahlstrom 2) Ahlstrom Specialty Papers volume 3) Source: Nonwovens Industry 2006

4 Global markets growing 4-5% per year (EUR 1-2 billion) EUR 30 billion market opportunity Focus areas: Glassfiber reinforcements Windmill 10% Marine 5% Wipes 7% Fiber Composites 6-7% growth Specialty Papers 3-4% growth Industrial nonwovens Release base paper Infusion products 5% 5-7% 7% Air & liquid filtration Medical fabrics Transport filtration 2-4% 5% 5% 4

5 Low volatility in demand Building & furniture 13 % Industrial applications 9 % Consumer food & healthcare 32 % Long customer relationships Business-to-business Frame agreements for majority of business Production against received or anticipated frame orders Filtration & automotive 19 % Labeling, printing & office 27 % Direct sales 90%, agents 10% Serving wide range of end user industries 5

6 160 High raw material costs put pressure on gross margin Energy 17 % Other 3 % Natural fibers 40 % 20 0 Chemicals 24 % Synthetic fibers 16 % Gross margin* Pulp price, USD, indexed * The new acquired units will be included from Q onwards.

7 Growth investments of 370 million implemented in acquisitions Several organic investments EUR 200 million EUR 170 million Establishing strong foothold on five continents Ahlstrom s investment criteria Meets ROCE 13% target and generates 1.5 x the investment value in net sales in 3-5 years 7

8 Platform in BRIC-countries for future expansion Sales offices Plants Pending projects Glassfiber tissue plant, Russia, /2008 Production of medical fabrics, India, 2009 Specialty paper joint venture, China, closing expected in /2008 Specialty paper joint venture Ahlstrom VCP, Brazil, closed in /2007 Wiping fabrics line, Brazil, / BRIC= Brazil, Russia, India, China

9 Non-competitive operations closed in Europe and USA x x x x 4 sites and 9 manufacturing lines closed in Europe and North America Reducing a total of 650 positions Non-recurring costs of EUR 45 million in Q4/2007 but positive cash flow Targeted annual profit improvement from restructuring: EUR 25 million 9

10 Well positioned to improve financial performance and grow in 2008 and beyond Strategic shift from long to short fibers Competitive cost structure Non-competitive lines closed and applicable products transferred to other production facilities Reduced fixed costs due to streamlining of operations Growth Leveraging on implemented growth actions in BRIC - countries 10

11 Ahlstrom to become +2 billion euro company % of growth from BRIC- countries MEUR after announced investments 11 BRIC= Brazil, Russia, India, China

12 Gearing ratio (Net debt/equity) MEUR % % % % 58% 60% 70 % 60 % % % % 30 % % % /07 0 % Interest-bearing net debt Gearing ratio 12 Gearing ratio target level: 50-80%

13 Dividends Target to pay attractive and predictable dividend Dividend payout ratio averaging at least 50% of the profit for the period Financial and insurance institutions 4 % Public sector institutions 5 % Ownership structure Nominee registered 4 % Non-profit institutions 3 % Foreign holders 15 % Finnish private investors 57 % Corporations 12 % 13

14 Investment summary Operating in global growth businesses Innovative functional materials with leading market positions Well positioned for growth in BRIC-countries Efficient use of capital (asset turnover) Attractive dividend policy 14