Kan man verkligen digitalisera skogen? Teemu Salmi CIO and Head of digitalisation Stora Enso

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1 Kan man verkligen digitalisera skogen? Teemu Salmi CIO and Head of digitalisation Stora Enso

2 Teemu Salmi

3 Stora Enso in brief A leading provider of renewable solutions Some employees in 35 countries Sales in 2016: EUR 9.8 billion Shares listed on Nasdaq in Helsinki and Stockholm

4 The renewable materials growth company Everything that s made with fossil-based materials today can be made from a tree tomorrow Consumer Board Biomaterials Wood Products Packaging Solutions Paper 4

5 Transformation journey continues 2016: Growth businesses 67% of sales and 76% of operational EBIT Sales 2006 Sales % -3% 21% 12% 33% 2% 30% 67% 24% 11% 16% 14% Consumer Board Packaging Solutions (1) Biomaterials Wood Products EBIT 2006 EBIT % 35% 24% 5% 38% 76% 29% Paper (2) Other & eliminations (1) In 2006 included in Consumer Board (2) In 2006 includes merchants 62% 6% 10% 25% 7%

6 Global megatrends drive the world s demand for renewable materials Global warming Growing population Urbanisation Digitalisation Changing lifestyles Growing middle class Eco-awareness Important enablers for digitalisation: Mobility Capital Computing power

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8 Strategy for transformation continues Stora Enso s strategy is about sustainable profitable growth based on customer insights and innovation, supported by structured processes and motivated employees Digitalisation an enabler to increase the speed of transformation Innovation Focus on bio-based materials and chemicals, digitalisation, intelligent packaging and new packaging solutions. Customer insight Developing offerings according to customers requirements to create value and growth, with sales excellence. Motivated employees Focus on inspiring leadership, good communication, performance management and target setting. Structured processes Clear roles and responsibilities, standardised and harmonised working methods, operational excellence.

9 Digitalisation is one of our focus innovation areas Biobased chemistry Material science and design Process solutions Forestry and raw materials Digitalisation "Innovation is the process of translating an idea into new value"

10 Digitalisation will: Expand new business possibilities Increase efficiency and productivity Raise the motivation and curiousness among the employees Bring innovation to new levels Attract the right staff for the future

11 Early adopter > 50 years automation > 3 years digitalisation

12 Digitalisation strategy for focus and execution Industrial Digitalisation Production Stability Production Efficiency Supply Chain Efficiency Product Management & Development Digital Services and Customer Engagement Digital Products and Service Portfolio (Extending Offering) New Business Models (Ecosystems) Internal Business Process Efficiency Quality

13 Stora Enso s Digital Fund 62 projects ongoing 11 Robotics Processes this year Predictive analytics increasing yield

14 Some digital examples

15 Digitalised Maintenance 15

16 Intelligent packaging Connecting packages, products and value chains

17 Solutions and benefits Supply Chain Brand Protection Customer Engagement Automated transactions Accurate real-time information Reduction of errors Condition tracking Data for process optimizations Product traceability Proof of authenticity Anti-counterfeiting Anti-tampering Individual marketing: new channels/surfaces Real-time consumer feedback Consumer behavior analysis Improved repeat sales and brand loyalty 17

18 Innovation never happens in isolation - Stora Enso Accelerator program Sulapac 1 Executive program to develop understanding and knowledge within our strategic competencies 2 Doing, living, and acting entrepreneurship side-by-side with real startups 3 Co-development with start-ups of solutions in the area of digitalization Collective Crunch LOOP Top Data Science Trä Kronor 18

19 Om man vägrar att se bakåt och inte vågar se framåt, så måste man se upp Tage Danielsson

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