Upload
stora-enso
View
818
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Stora Enso Capital Markets Day on 22 March 2012
Citation preview
Cash Engine Juha Vanhainen, EVP, Printing and Reading
Business Area Printing & Reading
March 22, 2012 Juha Vanhainen 2
Publishing and
commercial printing
We inspire
the world with
paper
iPad’s take-off has been a great success
March 22, 2012 Juha Vanhainen 3
Source: KPCB; Apple; Morgan Stanley
Apple iPad
Apple iPhone +
iTouch
Nintendo Wii
Nintendo DS
Sony PSP
Apple iPod
RIM Blackberry
West European advertising spend is still
at the pre-crisis level
(calculated in 2010 euro)
March 22, 2012 Juha Vanhainen 4
0
10
20
30
40
50
60
70
80
90
100
2006 2007 2008 2009 2010 2011e
Ad
Sp
en
d [
billi
ion
€ ]
43 42 39 32 31 30
28 28 27 24 25 25
8 10 12
13 14 15
TV
Radio
Other
Internet
Source: Zenith Dec-2011
The development has caused a structural change to
West Europe paper demand development
March 22, 2012 Juha Vanhainen 5
Business Area Printing and Reading
March 22, 2012 Juha Vanhainen 6
Production capacities, million t/a
• Newsprint 2.5
• Super calendered 1.4
• Coated paper 3.0
• Office paper 1.3
Total paper 8.2
Dawang
Arapoti
Veitsiluoto
Sachsen
Kabel
Corbehem
Langerbrugge
Maxau
Kvarnsveden
Oulu
Hylte
Anjala
Uetersen
Nymölla
Suzhou
Varkaus Office
Newsprint
SC
Coated
BA Printing and Reading sales and EBITDA
March 22, 2012 Juha Vanhainen 7
BA Printing & Reading profits are better than the
ones of main competitors, EBITDA-% (sliding average of latest four quarters)
March 22, 2012 Juha Vanhainen 8
Strora Enso purchased pulp at market price;
energy procurement at market conditions
BA Printing and Reading will improve cost position to
keep average below median at all times
March 22, 2012 Juha Vanhainen 9
60
80
100
120
140
160
180
0 10000 20000 30000 40000 50000
1st quartile
35%
2nd quartile
30%
3rd quartile
30%
4th quartile
5%
BA Printing and Reading capacity-% in each quartile:
Cumulative European paper capacity, 1000 t/a
BA will target at keeping the average cost level
below median at all times
Delivered cash cost to Frankfurt
Source: Pöyry, Stora Enso
excluding specialties & book
Q4/2011
Cost in
de
x, 1
00
equ
als
to
me
dia
n o
f e
ach
gra
de
Concept for winning in a declining market
March 22, 2012 Juha Vanhainen 10
Focus on end-uses
• Paper for all print end-uses
• New products expanding offering
• Supply chain efficiency priority
Not growth, but low-cost
• Delivered cost
• Targeted investments
• Energy efficiency and bio fuels
• Asset restructuring
Input
Action
Our value proposition to our customers
March 22, 2012 Juha Vanhainen 11
Your peace of mind comes first
• from sourcing raw materials to creating
renewable reading experiences
Added value to customers • Reliability and availability
• Cost efficiency
• Good reputation
• Offering fit for purpose
We inspire the world with paper
From selling paper grades to jointly selecting
best paper for end-use applications
March 22, 2012 Juha Vanhainen 12
March 22, 2012 Juha Vanhainen 13
PrimaPress – an uncoated paper for
traditional end-uses of coated paper
• Brilliant gloss never seen before for LWU
• End uses: magazines, catalogues
• Production: Kvarnsveden PM12
Product development – reinventing boundaries
between paper grades
BA Printing and Reading
– 2011 Net Promoter Score Compared to most frequently mentioned competitors
March 22, 2012 Juha Vanhainen 14
BA Printing & Reading n=1384;
All competitors n=1297
Concept for winning in a declining market
March 22, 2012 Juha Vanhainen 15
Focus on end-uses
• Paper for all print end-uses
• New products expanding offering
• Supply chain efficiency priority
Not growth, but low-cost
• Delivered cost
• Targeted investments
• Energy efficiency and bio fuels
• Asset restructuring
Input
Action
March 22, 2012 Juha Vanhainen 16
Fine paper cost competitiveness improvement
• Annual cost reduction 20 M€
• Cash provision 16 M€
• Full impact after Q2/2012
Coated magazine paper operations’ restructuring
• Annual cost reduction 48 M€
• Investments 18 M€ and cash provision 5 M€
• Full impact from Q3/2013 onwards
Ongoing restructuring measures
March 22, 2012 Juha Vanhainen 17
Sales value per employee
March 22, 2012 Juha Vanhainen 18
March 22, 2012 Juha Vanhainen 19
Product development
• New products
• Cost structure improvement
• Source reduction
From mill specialization
to operational flexibility
• “Lowest delivered to customer cost asset
gets the orders”
Printing & Reading operational
development targets
March 22, 2012 Juha Vanhainen 20
Lean and focused capital expenditure model
March 22, 2012 Juha Vanhainen 21
Average at
~2.5% of sales
Competitiveness
Capex of sales
Top assets with low cost; efficiency and energy
investments
Assets to be kept on current technical level
Assets for divestment or closure during the next 10 years
Energy efficiency
• Energy generation towards bio
• Latest 5 year investments 300 M€
• Specific energy consumption
improvement work continues
Energy investments
March 22, 2012 Juha Vanhainen 22
Oulu paper mill is the largest coated paper
production unit in Europe
March 22, 2012 Juha Vanhainen 23
Integrated
Benchmark paper quality
Located in a seaport
March 22, 2012 Juha Vanhainen 24
Wood procurement from
an area with 200 km radius
Kvarnsveden PM12 in Sweden
Langerbrugge houses the largest
newsprint paper machine in Europe
March 22, 2012 Juha Vanhainen 25
80 million people live
within a 300 km radius
100% recycled fiber
Excellent energy solution
based on non-fossil/renewable
London
Cologne
Amsterdam
Düsseldorf
Langerbrugge
Paris
• New setup with all paper business in one
business area
• Serving consumers’ continuously developing media
needs with new paper applications
• Performance over size and market share
• Focus on making top assets even stronger
Ready for all future demand scenarios
March 22, 2012 Juha Vanhainen 26
March 22, 2012 Juha Vanhainen 27
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 1995.
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.
March 22, 2012 Juha Vanhainen 28