Karl-Henrik Sundström, CEO
Our progress
Full year 2014 results
EUR million
FY 2014
FY 2013
Change
Sales
10 213
10 563
-3.3%
Operational EBIT
810
578
40.1%
Operational ROCE
9.5%
6.5%
Cash flow from operations
1 139
1 252
-9.0%
Cash flow after investment
255
481
-47.0%
EPS excl. NRI
EUR 0.40
EUR 0.40
Net Debt/ last 12 months’
operational EBITDA
2.6
2.9
3
Solid quarter supported by FX tailwinds
Q1 2015 year-on-year
•
Sales declined by 3%
– Increased by 3% excluding structurally declining
paper and divested businesses, mainly due to
Montes del Plata ramp-up
•
Operational EBIT EUR 220 million
– 21% increase due to FX gains and lower costs
•
Net debt to EBITDA 2.6 (2.8)
•
Operational ROCE 10.1% (8.6%)
– Excluding transformational investment project
11.3%
4
Our strategy is to transform from a traditional paper and
board producer to a customer focused renewable
materials growth company
5
Transformation journey continues
Growth businesses with 62% of sales
6
Transformation in Progress
Consumer Board
Guangxi consumer board mill
• EUR 800 million (phase one)
• Construction of the consumer board mill
is in full speed
• Start up in mid-2016
Stora Enso Q1 2015 Results
22 April 2015
7
Transformation in Progress
Consumer Board
Investment in Imatra mills
• EUR 27 million to improve quality and
cost-competitiveness
• Start up in Sep 2015
8
Transformation in Progress
Packaging Solutions and Wood Products
Conversion to Kraftliner Wooden elements
Murow Sawmill
• EUR 110 million for
• EUR 43 million investment in a • EUR 28 million to
conversion at Varkaus Mill
new production line for wooden modernise and develop
building elements at Varkaus
Murow Sawmill in Poland
• EBITDA margin above 15%
Mill
• Start up Q2 2015
• Capacity 390 000 tonnes
• Reduction of paper capacity • Start up Q2 2016
by 280 000 tonnes annually
• Start up Q4 2015
Stora Enso Q1 2015 Results
22 April 2015
9
Transformation in Progress
Biomaterials
Virdia & demonstration plant
Montes del Plata
Sunila Mill
• Stora Enso’s share of
investment EUR 850 million
and capacity of 650 000
tonnes
• Mill ramp-up proceeding well
• Reached EBIT break even in
December 2014
• Biorefinery investment •
EUR 32 million
• Lignin extracted from
•
the black liquor
• Commercialisation in
2015/16
Stora Enso Q1 2015 Results
22 April 2015
USD 100 million total investment
to hemicellulose extraction in a
start up company
Commercial product in 2–3
years
10
Transformation in Progress
Restructuring 2014
Non-core asset divestments
Closures
•
•
•
•
Thiele Kaolin in US, EUR 61 million
Corenso core and coreboard
operations to Powerflute,
approximately EUR 103 million
Uetersen Mill disposal completed in
Q1 2015, cash consideration of EUR
7 million
Stora Enso Q1 2015 Results
•
Veitsiluoto PM1 of 190 000 tonnes of
coated magazine paper
Corbehem Mill of 330 000 tonnes of
light weight magazine paper
22 April 2015
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Paper demand
•
Around 60% of the demand decline is due to
digitalisation, remaining due to economy
5%
2009
2010
2011
2012
-4%
2013
-4%
2014
-3%
-6%
-15%
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Paper business generates cash for transformation
year-on-year
Optimising paper cash flow
in the future
Working capital
Variable and fixed costs
Right segment of paper
High machine capacity utilisation
Cash flow after capex to sales
500
12%
450
10%
400
350
8%
300
MEUR
•
•
•
•
Cash flow after capex
250
6%
200
4%
150
100
2%
50
0
0%
2007
2008
2009
2010
2011
2012
2013
2014
13
Group Leadership Team
CEO
Karl-Henrik
Sundström
People and
Organisation
Lars Häggström
Communication
Ulrika Lilja
Consumer Board
Jari Latvanen
Responsibility
Noel Morrin
Packaging Solutions
Gilles van
Nieuwenhuyzen
CFO
Seppo Parvi
Biomaterials
Juan Carlos Bueno
Sourcing
Johanna
Hagelberg
CTO
Markus
Mannström
Wood Products
Jari Suominen
Paper
Kati ter Horst
Ethics and
Compliance
Per Lyrvall
22
Stora Enso as a taxpayer
15
Global Responsibility Actions in 2014
•
•
•
Health and safety performance continued to improve
Group wide Human Rights assessment concluded
Social Land contract corrections in Guangxi, China
proceeding
–
•
Supplier Code of Conduct implementation
–
•
61% correct at the end of March 2015
77% of the group’s spending covered at the end of March 2015
Stora Enso continues to support initially found 640 children in
Pakistan working for a subsupplier
–
–
289 children attending school at the end of March 2015
4 schools out of 6 in operation in Pakistan
16
A Public-Private Partnership with the ILO
• A unique partnership to promote labour rights
and combat child labour
• Two components:
-
-
The global component will strengthen our
company policy and practice in line with
international labour standards
The Pakistani component promotes decent
work and combats child labour
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When you want to know more
Read our Progress Book
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