Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Investor Presentation (June 2010)
25 slides from Stora Enso Oyj Class A's investor presentation, June 2010
Slide 1: Stora Enso's way forward
Stora Enso’s way forward Markus Rauramo, CFO
Slide 2: Forward-looking statements
It should be noted that certain statements herein which are not historical facts, facts including, including without limitation those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”,
Slide 3: Contents
Contents Stora Enso in brief First quarter financials Cost factors Our own actions Our future Market outlook Summary Stora Enso's way forward June 2010 3
Slide 4: Stora Enso in brief
Stora Enso in brief
Slide 5: Breakdown by segment
Breakdown by segment Q1 2010 What we do Publication paper Fine paper Packaging Wood products Sales, EUR 2 296 million Operating profit, EUR 119 million* 23 % 59 % 21 % 19 % 14 % 35 % 12 % 10 % 6% 5% 3% -1 1% Newsprint Magazine Fine Paper Consumer Industrial Wood Newsprint Magazine Fine Paper Consum
Slide 6: First quarter financials
First quarter financials
Slide 7: Summary financials Q1 2010
Summary financials Q1 2010 % Change g % Change g EUR million I/10 IV/09 I/09 Q110/Q109 Q110/Q409 Sales 2 296 2 399 2 130 7.8 -4.3 EBITDA,, excl. NRI and FV 232 227 134 73.1 2.2 Operating profit, excl. NRI and FV 119 138 3 n/m -13.8 Profit before tax, excl. NRI 137 123 -82 267.1 11.4 Earnings per sha
Slide 8: Financial flexibility
Financial flexibility • Cash C h and d cash h equivalents i l t EUR 864 million illi att end d off Q1 2010 • Debt maturities in 2010 EUR 850 million and in 2011 EUR 560 million • Committed credit facility EUR 1.4 billion fully undrawn, no covenants • Access to various long-term sources of funding up
Slide 9: Cost factors
Cost factors
Slide 10: Sawlog prices together with wood prices driving the inflation
Sawlog prices together with wood prices driving the inflation EUR/m3 EUR/tonne 80 160 70 140 60 120 50 100 40 80 30 60 20 40 10 20 0 0 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 Pulpwood, Pine Sawlogs, Pine Mixed
Slide 11: Internal electricity generation increased by 4%
Internal electricity generation increased by 4% El t i it consumption Electricity ti 2009 Eff t off power plant Effect l t projects j t ini 2011 Purchased: Purchased: other other P h Purchased: d Purchased: renewable renewable hydro hydro 2% 2% 8% Internally 8% generated* Internally Purchased: 33 %
Slide 12: Our own actions
Our own actions
Slide 13: Stora Enso has taken lead in industry restructuring
Stora Enso has taken lead in industry restructuring Capacity closures since 2006 Paper* p Pulp 17% 9% Wood Board Products 5% 20% *including planned closures in Varkaus Stora Enso's way forward June 2010 13
Slide 14: Planned restructuring continues
Planned restructuring continues • Two T newsprint i t machines hi planned l d tto b be permanently tl closed l d iin Varkaus V k Capacity Grade Timing Directory, PM 2 90 000 t Improved News By y the end of Q3 2010 Directory, Improved By the end of Q3 2010 PM 4 200 000 t News, Newsprint • Mills at Ko
Slide 15: Personnel reduction as key driver in cost savings
Personnel reduction as key driver in cost savings Continuing operations 40 000 35 000 30 000 25 000 20 000 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 Average number of personnel Stora Enso's way forward June 2010 15
Slide 16: Our future
Our future
Slide 17: Stora Enso's future
Stora Enso Enso’s s future • New growth markets • Plantation-based Plantation based pulp • Fibre-based packaging – Maintain and develop global leadership position • Selected paper grades Stora Enso's way forward June 2010 17
Slide 18: From five million tonnes to seven million tonnes
From five million tonnes to seven million tonnes – the trees are already growing Guangxi, g , China 93 000 land 63 000 ha Eucalyptus SE pulp potential: 700 000 t/a Veracel, Brazil (JV) 234 000 ha land 91 000 ha Eucalyptus Pulp capacity: 1 100 000 t/a of which SE share: 555 000 t/a Veracel II pulp po
Slide 19: Packaging is growing business
Packaging is growing business Solid profitability Big market potential Above industry margins ~ EUR 210 billion expected world demand in 2020 Opportunity to differentiate Steady growth in demand 此处替换文本 Overall stable long-term growth High entry barrier High total R&D High quality and ser
Slide 20: Consumption growth between USD 5k/a and USD 35k/a
Consumption growth between USD 5k/a and USD 35k/a Additional 2 billion people can buy packed food by 2020 Population p with household income $5000+ ((Global)) 3B >$35000 2 Annual growth: 1 $5000- 6.6% 35000 0 2002 2007 Population with household income $5000+ (Greater China) 400 M 300 Annual growth:
Slide 21: Market outlook
Market outlook
Slide 22: Near-term outlook
Near-term Near term outlook • Sl Slowly l iimproving i markets k t – Still weaker than pre-crisis – Structural overcapacity persists • Prices decreased in local currencies: – Newsprint and Book Paper about 16% lower for 2010 – Magazine Paper about 7-8% lower for H1 2010 • Improving pricing in: – Fin
Slide 23: Summary
Summary
Slide 24: Financial strength to secure future projects
Financial strength to secure future projects • Pricing P i i quality lit over volume l • Active capacity management • Continued focus on costs • Working capital sales ratio key indicator • Cash flow managed actively • Strong balance sheet Stora Enso's way forward June 2010 24
Slide 25: Stora Enso
STORAENSO