Jari Latvanen Executive Vice President, Head of Division Consumer Board

Transcription

1 Jari Latvanen Executive Vice President, Head of Division Consumer Board Solid track record from food industry Chief Executive Officer, Findus Nordic Awarded with the Swedish Food Prize 2013 for managing the infamous horse meat scandal and acting as a whistle blower, White Guide award, Taste Developer of the Year 2013 Various leadership positions within Nestlé e.g. Managing Director, Nestlé Czech Republic and Slovakia, Assistant Vice President, Zone Europe Nestlé, HQ Switzerland, Managing Director Nestlé Sweden, Marketing Director Nestlé Nordics Brings unique understanding of consumers and retailers from working with strong brands in the food industry Strategic leader and food industry specialist leading innovative and interactive organization's focusing on active consumer based marketing

2 Division Consumer Board London, 28 May 2015 Jari Latvanen EVP Stora Enso Consumer Board The renewable materials company

3 Disclaimer 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 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. Stora Enso Capital Markets Day, 28 May 2015 The renewable materials company

4 A broad range of solutions to fit customer demands High quality board for premium segments Liquid Packaging Food Service Board General Packaging Cigarette Graphical

5 A broad range of solutions to fit customer demands High quality board for premium segments Liquid Packaging Food Service Board General Packaging Cigarette Graphical Chocolate and confectionary Cosmetics and luxury Pharmaceuticals Food packaging Drinks, wines and spirits

6 Versatile and competitive range of boards Strong brands supporting demanding end-uses Our products SBS Solid Bleached Sulphate SUB Solid Unbleached Board FBB Folding Boxboard WLC White Lined Chipboard Cupstock LPB Liquid Packaging Board Our brands

7 Consumers benefit from packaging But also believe packaging is excessive, expensive and bad for the environment The modern consumer Responsible Convenient and stress-free Zero tolerance Digital adoption It s all about information

8 Packaging sells! Good packaging strengthens brand identity and increase consumer satisfaction 64% of consumers say the brand is important when purchasing products used on a regular basis Stora Enso Ensocoat Source: Stora Enso Consumer Board consumer survey 2014

9 Packaging sells! Good packaging strengthens brand identity and increase consumer satisfaction 33% of consumers have purchased a new product due to the packaging Stora Enso Ensocoat Source: Stora Enso Consumer Board consumer survey 2014

10 The global consumer board market is growing Growth of 9 million tonnes expected Latin America North America Europe China Rest of Asia Africa Source: Pöyry Management Consulting

11 The global consumer board market is growing Growth of 9 million tonnes expected % 0.4% 1.8% 3.3% 4.0% 3.1% 3.3% Latin America North America Europe China Rest of Asia Africa SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% WLC 2.6% LPB 3.1% WLC 2.8% CUK 2.8% FBB 2.4% SBS 1.9% Source: Pöyry Management Consulting

12 The global consumer board market is growing Growth of 9 million tonnes expected Above region average LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% 3.0% 0.4% 1.8% 3.3% 4.0% 3.1% 3.3% Latin America North America Europe China Rest of Asia Africa SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% WLC 2.6% LPB 3.1% WLC 2.8% CUK 2.8% FBB 2.4% SBS 1.9% Below region average Source: Pöyry Management Consulting

13 The global consumer board market is growing Growth of 9 million tonnes expected Above region average FSB 3.2% FBB 3.0% CUK 1.8% LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% 3.0% 0.4% 1.8% 3.3% 4.0% 3.1% 3.3% Latin America North America Europe China Rest of Asia Africa SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% WLC 2.6% LPB 3.1% WLC 2.8% CUK 2.8% FBB 2.4% SBS 1.9% Below region average Source: Pöyry Management Consulting

14 The global consumer board market is growing Growth of 9 million tonnes expected Above region average FBB 1.5% FSB 1.5% CUK 0.5% FSB 3.2% FBB 3.0% CUK 1.8% LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% 3.0% 0.4% 1.8% 3.3% 4.0% 3.1% 3.3% Latin America North America Europe China Rest of Asia Africa SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% WLC 2.6% LPB 3.1% WLC 2.8% CUK 2.8% FBB 2.4% SBS 1.9% Below region average Source: Pöyry Management Consulting

15 The global consumer board market is growing Growth of 9 million tonnes expected Above region average FBB 5.0% CUK 4.2% WLC 4.1% FSB 4.0% LPB 3.6% SBS 3.4% FBB 1.5% FSB 1.5% CUK 0.5% FSB 3.2% FBB 3.0% CUK 1.8% LPB 7.8% FSB 7.6% FBB 7.4% CUK 6.3% SBS 4.3% FBB 5.7% FSB 4.5% CUK 3.2% SBS 3.2% LPB 3.9% FSB 3.8% WLC 3.6% 3.0% 0.4% 1.8% 3.3% 4.0% 3.1% 3.3% Latin America North America Europe China Rest of Asia Africa SBS 0.3% WLC 0.3% LPB -0.7% SBS 1.7% LPB 1.6% WLC 1.5% WLC 2.6% LPB 3.1% WLC 2.8% CUK 2.8% FBB 2.4% SBS 1.9% Below region average Source: Pöyry Management Consulting

16 Huge opportunities in expanding our coverage Our potential market is much higher than current board packaging demands Other packaging materials Board Source: SmithersPIRA

17 Huge opportunities in expanding our coverage Our potential market is much higher than current board packaging demands Other packaging materials Board Future Source: SmithersPIRA

18 Paperboard Glass Wood Metal Aluminium Plastic Paperboard Glass Plastic Wood Dont know Aluminium Metal Board s merits compared to other materials Consumers prefer board Consumer appeal Premium perception What is your attitude towards the following packaging materials? Which type of packaging do you think is the most environmentally friendly? % positive % Stora Enso Ensocoat 2S Source: Stora Enso Consumer Board consumer survey 2014

19 Board s merits compared to other materials We are aiming for a 100% renewable packaging Renewable & Recyclable Sustainable Beverage carton recycling (EU28+CH+NO) Volume (tonnes) % 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: ACE

20 A focused strategy for growth Finding growth in a demanding business environment Consistent quality Right price Good service Efficient supply chain Global responsibility License to operate

21 A focused strategy for growth Finding growth in a demanding business environment Customer focused portfolio Strong brands and top quality Innovation and R&D Marketing and Communication Consistent quality Right price Good service Efficient supply chain Global responsibility Premium offering License to operate

22 A focused strategy for growth Finding growth in a demanding business environment Consumer foresight Full value chain understanding Service offering to brand owners Customer focused portfolio Strong brands and top quality Innovation and R&D Marketing and Communication Consistent quality Right price Good service Efficient supply chain Global responsibility Partnership offering Premium offering License to operate

23 Our strengths We focus on adding value to our customers Renewable Solutions Customer focus Global coverage Competitive assets Exciting Innovation and R&D

24 Our strengths We focus on adding value to our customers Renewable Solutions Customer focus Global coverage No.1 Stora Enso Tambrite most valuable cartonboard brand among European brand owners. Competitive assets Exciting Innovation and R&D The Brand Tracking Survey Cartonboard for consumer packaging 2014 defines and ranks the most valuable virgin fibre cartonboard brands in Western Europe according to consumer goods brand owners. The Opticom Brand Equity Index, takes into account both awareness of and satisfaction with the brand. Satisfaction encompasses quality and service associations, perceived brand performance as well as loyalty towards the cartonboard brand.

25 Our strengths Global products, local contacts Renewable Solutions Customer focus Global coverage Competitive assets Exciting Innovation and R&D Stora Enso Consumer Board mills Countries where Stora Enso Consumer Board has sales

26 Our strengths Global products, local contacts Renewable Solutions Customer focus Global coverage Competitive assets Exciting Innovation and R&D Stora Enso Consumer Board mills Countries where Stora Enso Consumer Board has sales

27 Investing in China part of the winning strategy Capitalising on our strategic board grades Continued good demand for virgin fibre board in China Strengthen leading global LPB position Asian production base Cartonboard demand in China CAGR 6.5% * Source: Pöyry Management Consulting

28 Our strengths Investing for top quality and competitiveness Renewable solutions Customer focus Global coverage Competitive assets Exciting Innovation and R&D

29 Our strengths Thinking out of the box mentality Renewable solutions Customer focus Global coverage Competitive assets Exciting Innovation and R&D Stora Enso CKB Photo courtesy by Hörauf

30 Best-in-class margins Sales EBITDA margin 16,5% 16,1% 15,4% 19,1% ROOC 15,8% 13,6% 14,4% 17,8% The renewable materials company

31 Focus on costs and working capital Fixed costs Variable costs per tonne OWC/sales Index 2010=100 Index 2010=100 Index 2010= The renewable materials company

32 Building the future Consumer Board FOCUSED CUSTOMER BASED STRATEGY STRONG FINANCIAL PERFORMANCE CONSUMER DRIVEN INNOVATIONS The renewable materials company

33 World of packaging