we are focusing on premium paperboards and a high level of ... and... · packaging solutions that...
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We are focusing on premium paperboards and a high level of sustainability
M E T S Ä B O A R D C A P I T A L M A R K E T S D A Y 2 0 2 0
Mika JoukioCEO, Metsä Board
The world is turbulent – and we are not immune
Safety of employees
Continuity of operations
Maintaininghigh customerservice level
Our focus is on premium paperboards
made from fresh fibres, where we have a leading
position
Sustainability is driving demand and making our business even
stronger
We are aiming for moderate growth, with a
strong focus on profitability
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Profitability guides our future growth Our commitment from 2018 CMD
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TOPICSWe are continuing to implement our strategy based on fresh fibre paperboard
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We want to be a leader in sustainability
We are investing in innovation and collaboration with customers
today
z
z
We are focusing on premium fresh fibre paperboards and a high level of sustainability
Packaging solutions that respect nature
M I S S I O N
zPreferred supplier of innovative and sustainable fibre-based packaging
solutions, creating value for customers globally
V I S I O NFOCUSWe are the leader in sustainability, focusing on premium fresh fibre products for consumer and retail packaging. The high performance of our products is based on technical excellence and tailor-made, high-quality, Nordic pulps.
GROWTHWe grow globally together with our existing and new customers by offering sustainable, safe and high-performing products. Our growth is based on skilled people, industry-leading products and innovative packaging solutions.
PROFITABILITYOur profitability is based on the efficiency of our operations and prioritisation of businesses that benefit from the high performance of our products and services.
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Americas
Folding boxboard
57 %
White kraftlainers
25 %
Market pulp13 %
Other5 %
Sales split by product
FY 2019 figures
production sites
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EMEAAPAC
FBB, WKL coatedFBB, WKL, market pulp
FBB, WKL, market pulp
Annualpaperboard capacity
tonnes/year
Annualpulp surplus*
tonnes/year600,0002,000,000
*) includes the 24.9% holding in Metsä Fibre
Our production is near our main raw material but we sell worldwide
8%
71%21%
% of 2019 total sales
* based on Metsä Board’s own estimates
Demand for our premium fresh fibre paperboards is mainly driven by consumer and retail …End uses of Metsä Board’s FOLDING BOXBOARD*
End uses of Metsä Board’s WHITE KRAFTLINERS*
Food and food service packaging
Other consumer goods packaging
Graphic end-uses
Shelf-ready solutions, point-of-sale displays
Other consumer
goods packaging
E-commerce
…and this is how they support sustainable consumption
• Lightweight packaging helps customers to reduce carbon footprint
• Our fresh fibre paperboards support the circular economy
• All our paperboards* have industrial compostability certification
*excluding PE-coated grades
ZERO FOSSIL CO2 EMISSIONS
INDUSTRY-LEADING TARGET:
Fossil-free mills and raw materials by 2030
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How we will achieve our target of 100% fossil-free mills
Key projects subject to final investment decisions
Indicative timelines
-47-48
-50
2017 2018 2019
Reduction of fossil CO2emissions per product tonne, %
10,211,7 12,3
2017 2018 2019
Energy efficiency improvement per product tonne, %
-17-20
-29
2017 2018 2019
Reduction of process water use per product tonne, %
We have exceeded our targets for reducing fossil CO2emissions and process water use…
Target: -30% in 2009–2020 Target: -17% in 2010–2020 Target: +12% in 2009–2020
-47-48
-50
2017 2018 2019
Reduction of fossil CO2emissions per product tonne, %
10,211,7 12,3
2017 2018 2019
Energy efficiency improvement per product tonne, %
-17-20
-29
2017 2018 2019
Reduction of process water use per product tonne, %
...and we are now aiming for even higher targets by 2030
Target: -30% in 2009–2020 Target: -17% in 2010–2020 Target: +12% in 2009–2020
New target
-100%in 2018–2030
New target
-30%in 2018–2030
New target
+10%in 2018–2030
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Safety continues to be our #1 priority
15,1
12,6
10,2
6,8
2017 2018 2019 H1 2020
TRIFtotal recordable injury frequency
per million hours worked
6,47,5
5,5 5,1
2017 2018 2019 H1 2020
LTA1lost-time accident frequency
per million hours worked
Zero accidents
T A R G E T :
Maintaining shareholder value through good profitability and a healthy balance sheet
Comparable ROCE:Target at least 12%
11,2
14,410,4 10,7
2017 2018 2019 H1 2020
1,21,0 1,1 1,1
2017 2018 2019 H1 2020
Net debt/comparable EBITDA:Maximum level 2.5x
Target > 12%
Target< 2.5x
1414
76
50 5159
2016 2017 2018 2019
Dividend policy: Payout ratio at least 50% of net result
Long-term financial targets
Husum pulp mill renewal creates a solid platform to develop our paperboard business and is an
important step towards our goal of fossil-free mills
Husum pulp mill renewal –Estimated first phase schedule
2019 2020 2021 2022
Company expects to make the final investment decision
New recovery boiler and turbine expected to be in operation on H1 2022, at the earliest
Pre-engineering
phase launched
Q1 2020 Results16
Second phase: New fibre line. To be implemented during the 2020s after the first phase is fully completed
First phase: New recovery boiler and turbine. Investment value EUR 320 million, divided over 2019–2022
First investments made
Foundation work for new recovery boiler started
Future growth is sought through innovation
Our R&D focus areas
Lightweight paperboards
Barrier paperboards as alternatives to plastics
Close cooperation with customers in
product development and packaging design
Significant scale in INNOVATIONS+ =
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Strategy execution
intact - focuson premium paperboards
Excellent track record in
sustainability
Future growth is secured with
sustainableinvestments
and innovations
Summary
Q&A