stora enso cmd - presentation by jouko karvinen, ceo
DESCRIPTION
Stora Enso's Capital Markets Day on 22 March 2012TRANSCRIPT
Next Jouko Karvinen, CEO
March 22, 2012 Jouko Karvinen 2
Accelerate what
works
Start with
consumer Build value
Engines
Ecosystems
Self-finance
transformation
March 22, 2012 Jouko Karvinen 3
60 seconds
Net Promoter Score
March 22, 2012 Jouko Karvinen 4
Fixed Cost
March 22, 2012 Jouko Karvinen 5
Fixed costs / sales Fixed costs
Variable Cost % of sales
March 22, 2012 Jouko Karvinen 6
People
March 22, 2012 Jouko Karvinen 7
Personnel costs/sales Productivity, Revenue/employee
Working Capital
March 22, 2012 Jouko Karvinen 8
Cash in & out
March 22, 2012 Jouko Karvinen 9
-8%
-4%
0%
4%
8%
2007-2011 % of sales
restructuring Capex Net cash from operations Inv for future
8%
4%
0%
-4%
-8%
2007-2011% of sales
Restructuring Capex Net cash from operations Inv for future
March 22, 2012 Jouko Karvinen 10
Accelerate what
works
Fixed costs/ sales Rolling Average 4Q
March 22, 2012 Jouko Karvinen 11
Yellow > Aloe Vera
Summa
closure Kemijärvi
closure
Maxau
closure
Varkaus
closure
Next step
Program,
EUR 250 million
annual cost
reduction
Comparison of cash production costs
as percentage of sales
March 22, 2012 Jouko Karvinen 12
March 22, 2012 Jouko Karvinen 13
Engines
Rethink strategy
March 22, 2012 Jouko Karvinen 14
• Growth markets
• Renewable
packaging
• Biomaterials
• Competitive paper
March 22, 2012 Jouko Karvinen 15
Growth engines
Renewable Packaging
Plantation based pulp
Building and living
Cash engines
Printing and Reading
Nordic market pulp
Low cost base saw milling
Cash in & out
March 22, 2012 Jouko Karvinen 16
-8%
-4%
0%
4%
8%
2007-2011 % of sales
restructuring Capex Net cash from operations Inv for future
8%
4%
0%
-4%
-8%
2007-2011% of sales
Restructuring Capex Net cash from operations Inv for future
Cash in & out
March 22, 2012 Jouko Karvinen 17
-8,0%
-4,0%
0,0%
4,0%
8,0%
12,0%
Printing &Reading
Biomaterials Building &Living
RenewablePackaging
Group
restructuring Capex Net cash from operations Inv for future
2007-2011% of sales
Restructuring Capex Net cash from operations Inv for future
12,0%
8,0%
0,0%
-4,0%
-8,0%
4,0%
Printing &
Reading
Biomaterials Building &
Living
Renewable
Packaging Group
March 22, 2012 Jouko Karvinen 18
% of Group 2011
Sales Y-on-Y Sales Growth
% of Group 2011
March 22, 2012
Jouko Karvinen
19
Net cash from operations
Total CAPEX
Jouko Karvinen
March 22, 2012 Jouko Karvinen 20
Self-finance
transformation
March 22, 2012 Jouko Karvinen 21
-1 000
-500
0
500
1 000
2007 2008 2009 2010 2011
restructuring Capex Net cash from operations Inv for future
2007-2011 EUR million
Restructuring Capex Net cash from operations Inv for future
1 000
500
-500
-1 000
0
2007 2008 2009 2010 2011
March 22, 2012 Jouko Karvinen 22
Start with
consumer
March 22, 2012 Jouko Karvinen 23
1.5 billion
29 years
March 22, 2012 Jouko Karvinen 24
Biomaterials
March 22, 2012 Jouko Karvinen 25
March 22, 2012 Jouko Karvinen 26
Ecosystems
March 22, 2012 Jouko Karvinen 27
March 22, 2012 Jouko Karvinen 28
Build value
Graphic Paper Western Europe
Jouko Karvinen March 22, 2012 29
Graphic Paper Western Europe
Jouko Karvinen March 22, 2012 30
Shareholder value
March 22, 2012 Jouko Karvinen 31
1% 2% 3%
-5%
-10%
Average sales price
Lo
st vo
lum
e
Buyer
0% 1% 2% 3%
5%
10%
Average sales price
Ga
ine
d v
olu
me
Rest of the market
0%
March 22, 2012 Jouko Karvinen 32
Investment for
future and net
cash from
operations 2011
Growth Operating Capital
March 22, 2012 Jouko Karvinen 33
2011 20XX
March 22, 2012 Jouko Karvinen 34
Accelerate what
works
Start with
consumer Build value
Engines
Ecosystems
Self-finance
transformation
March 22, 2012 Jouko Karvinen 35
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 Jouko Karvinen 36