Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Shareholder Meeting (April 2015)
53 slides from Stora Enso Oyj Class A's shareholder meeting presentation, April 2015
Slide 1: Welcome to the Annual General Meeting
Welcome to the Annual General Meeting
Slide 2: Choose your language
Headphones Kielikanavat Choose your language / Valitse kielikanava: English Svenska Suomi
Slide 3: No photography or video or audio recording
No photography or video or audio recording
Slide 4: Forward-looking statements
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
Slide 5: Welcome!
Welcome! Gunnar Brock, Chairman of the Board of Directors
Slide 6: Choose your language
Headphones Kielikanavat Choose your language / Valitse kielikanava: English Svenska Suomi
Slide 7: Stora Enso's Annual General Meeting April 2015
Stora Enso’s Annual General Meeting 22 April 2015
Slide 8: rethink.
rethink. stofgenso
Slide 9: Karl-Henrik Sundström, CEO
Karl-Henrik Sundström, CEO
Slide 10: Our progress
storqgenso Our progress
Slide 11: Full year 2014 results
Full year 2014 results EUR million FY 2014 FY 2013 Change Sales 10 213 10 563 -3.3% Operational EBIT 810 578 40.1% Operational ROCE 9.5% 6.5% Cash flow from operations 1 139 1 252 -9.0% Cash flow after investment 255 481 -47.0% EPS excl. NRI EUR 0.40 EUR 0.40 Net Debt/ last 12 months’ 2.6 2.9 operat
Slide 12: Solid quarter supported by FX tailwinds
Solid quarter supported by FX tailwinds Q1 2015 year-on-year • Sales declined by 3% – Increased by 3% excluding structurally declining paper and divested businesses, mainly due to Montes del Plata ramp-up • Operational EBIT EUR 220 million – 21% increase due to FX gains and lower costs • Net debt to
Slide 13: Our strategy: renewable materials growth company
Our strategy is to transform from a traditional paper and board producer to a customer focused renewable materials growth company 13
Slide 14: Transformation journey continues
Transformation journey continues Growth businesses with 62% of sales 14
Slide 15: Transformation in Progress: Consumer Board
Transformation in Progress Consumer Board Guangxi consumer board mill • EUR 800 million (phase one) • Construction of the consumer board mill is in full speed • Start up in mid-2016 Stora Enso Q1 2015 Results 22 April 2015 15
Slide 16: Transformation in Progress: Consumer Board
Transformation in Progress Consumer Board Investment in Imatra mills • EUR 27 million to improve quality and cost-competitiveness • Start up in Sep 2015 16
Slide 17: Transformation in Progress: Packaging Solutions and Wood Products
Transformation in Progress Packaging Solutions and Wood Products Conversion to Kraftliner Wooden elements Murow Sawmill • EUR 110 million for • EUR 43 million investment in a • EUR 28 million to conversion at Varkaus Mill new production line for wooden modernise and develop • EBITDA margin above 15%
Slide 18: Transformation in Progress: Biomaterials
Transformation in Progress Biomaterials Montes del Plata Sunila Mill Virdia & demonstration plant • Stora Enso’s share of • Biorefinery investment • USD 100 million total investment investment EUR 850 million EUR 32 million to hemicellulose extraction in a and capacity of 650 000 • Lignin extracted
Slide 19: Transformation in Progress: Restructuring 2014
Transformation in Progress Restructuring 2014 Non-core asset divestments Closures • Thiele Kaolin in US, EUR 61 million • Veitsiluoto PM1 of 190 000 tonnes of • Corenso core and coreboard coated magazine paper operations to Powerflute, • Corbehem Mill of 330 000 tonnes of approximately EUR 103 milli
Slide 20: Paper demand
Paper demand • Around 60% of the demand decline is due to digitalisation, remaining due to economy 5% 2009 2010 2011 2012 2013 2014 -3% -4% -4% -6% -15% 20
Slide 21: Paper business generates cash for transformation
Paper business generates cash for transformation year-on-year Optimising paper cash flow Cash flow after capex Cash flow after capex to sales in the future 500 12% • Working capital 450 10% 400 • Variable and fixed costs 350 • Right segment of paper 8% 300 • High machine capacity utilisation MEUR 25
Slide 22: Group Leadership Team
Group Leadership Team CEO Karl-Henrik Sundström People and Communication Responsibility CFO Sourcing CTO Ethics and Organisation Ulrika Lilja Noel Morrin Seppo Parvi Johanna Markus Compliance Lars Häggström Hagelberg Mannström Per Lyrvall Consumer Board Packaging Solutions Biomaterials Wood Products
Slide 23: Stora Enso as a taxpayer
Stora Enso as a taxpayer EUR million Finland |Sweden | Germany| UK China Poland Belgium | Brazil Austria | France Other Total Production | Production | Production | Sales Sales Production | Production | Production | Production | Sales Primary activity and sales | and sales and sales | and sales and
Slide 24: Global Responsibility Actions in 2014
Global Responsibility Actions in 2014 • Health and safety performance continued to improve • Group wide Human Rights assessment concluded • Social Land contract corrections in Guangxi, China proceeding – 61% correct at the end of March 2015 • Supplier Code of Conduct implementation – 77% of the grou
Slide 25: A Public-Private Partnership with the ILO
A Public-Private Partnership with the ILO • A unique partnership to promote labour rights and combat child labour • Two components: - The global component will strengthen our company policy and practice in line with international labour standards - The Pakistani component promotes decent work and co
Slide 26: When you want to know more
When you want to know more Read our Progress Book 26
Slide 27: Adoption of the annual accounts
Adoption of the annual accounts
Slide 28: rethink.
rethink. stofgenso
Slide 29: Dividend
Dividend
Slide 30: Dividend
Dividend • The Parent Company distributable shareholders’ equity on 31 December 2014 amounted to EUR 1 659 290 671.87, including the profit for the period of EUR 566 614 608.04. • The Board of Directors proposes to the Annual General Meeting of the Company that it pays to its shareholders a dividend
Slide 31: rethink.
rethink. stofgenso
Slide 32: Discharge of the Board of Directors and the CEO from liability
Discharge of the members of the Board of Directors and the CEO from liability
Slide 33: rethink.
rethink. stofgenso
Slide 34: Nomination Board Report
Nomination Board Report
Slide 35: Board remuneration
Board remuneration EUR ’000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Chairman 135 135 135 135 135 67.5 135 135 170 170 170 Vice 85 85 85 85 85 42.5 85 85 100 100 100 Chairman Member 60 60 60 60 60 30 60 60 70 70 70 In 2014, 40% of the above mentioned annual remuneration was used for pu
Slide 36: Annual remuneration
Annual remuneration Board of Directors Chairman EUR 170 000 Deputy Chairman EUR 100 000 Members EUR 70 000 The Nomination Board also proposes that the members of the Board of Directors, based on the AGM’s decision, use 40% of the above mentioned annual remuneration for purchasing Stora Enso R shares
Slide 37: Composition of the Board of Directors
Composition of the Board of Directors The Nomination Board proposes to the AGM that the Board of Directors shall have eight (8) members. Gunnar Brock Anne Brunila Elisabeth Fleuriot Hock Goh Mikael Mäkinen Richard Nilsson Juha Rantanen Hans Stråberg 37
Slide 38: Appointment of Nomination Board
Appointment of Nomination Board Duties The Nomination Board proposes that the AGM appoint a Nomination Board to prepare proposals concerning (a) the number of members of the Board of Directors (b) The election of members of the Board of Directors (c) the remuneration for the Chairman, Vice Chairman
Slide 39: rethink.
rethink. stofgenso
Slide 40: Annual remuneration
Annual remuneration Board of Directors Chairman EUR 170 000 Deputy Chairman EUR 100 000 Members EUR 70 000 The Nomination Board also proposes that the members of the Board of Directors, based on the AGM’s decision, use 40% of the above mentioned annual remuneration for purchasing Stora Enso R shares
Slide 41: rethink.
rethink. stofgenso
Slide 42: Number of members in the Board of Directors
Number of members in the Board of Directors
Slide 43: rethink.
rethink. stofgenso
Slide 44: Composition of the Board of Directors
Composition of the Board of Directors The Nomination Board proposes to the AGM that the Board of Directors shall have eight (8) members. Gunnar Brock Anne Brunila Elisabeth Fleuriot Hock Goh Mikael Mäkinen Richard Nilsson Juha Rantanen Hans Stråberg 44
Slide 45: rethink.
rethink. stofgenso
Slide 46: Auditor's fees
Auditor’s fees
Slide 47: rethink.
rethink. stofgenso
Slide 48: Election of Auditors
Election of Auditors • The Board of Directors proposes to the AGM that Authorised Public Accountants Deloitte & Touche Oy continue as the statutory auditor of the Company until the end of the following AGM. 48
Slide 49: rethink.
rethink. stofgenso
Slide 50: Appointment of Nomination Board
Appointment of Nomination Board Duties The Nomination Board proposes that the AGM appoint a Nomination Board to prepare proposals concerning (a) the number of members of the Board of Directors (b) The election of members of the Board of Directors (c) the remuneration for the Chairman, Vice Chairman
Slide 51: rethink.
rethink. stofgenso
Slide 52: Thank You
Thank You
Slide 53: rethink.
rethink. stofgenso