1. business and industrial
2. energy
3. renewable energy

CV – Gilles van Nieuwenhuyzen
Executive Vice President, Packaging Solutions
Experience from driving results in large multinationals
•
President Enablers Division, Danisco/DuPont, 2010-2014
•
Managing Director, Executive Interim Management, 2008-2010
•
Division President, Purac, CSM (now Corbion), 2001-2007
•
Business leadership roles in Rexam and DSM
•
McKinsey & Company in early career
Brings in new competencies to Packaging Solutions
•
Experience from leading companies in other industries: Food
ingredients, chemicals, biotechnology
•
Accelerating growth via innovation and differentiation
•
Margin improvements track record
•
Global experience
The renewablematerials
materials company
The renewable
company
Division Packaging
Solutions
Gilles van Nieuwenhuyzen
EVP Stora Enso Packaging Solutions
London, 28 May 2015
The renewable materials company
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
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.
The renewable materials company
Containerboard: from commodity to
differentiated supplier
A holistic approach to
creating value for customers
High quality virgin and
recycled fiber based
containerboards...
... combined with high quality
services
Rightweighting / Rightgrading
Technical Customer Service
eFlow supply chain services
Recycling Services
The renewablematerials
materials company
The renewable
company
Key segments
Food (31%)
Beverages (9%)
Consumer Electronics
(7%)
Household & Furniture
(5%)
Industrial (31%)
External Converters
(12%)
The renewable materials company
Retail (5%)
Packaging Solutions provides offerings
in containerboard and corrugated packaging
Recycled fibre
Converter /
Corrugator
Forest
mgmt
Online retail
Brand owner /
Producer
Containerboard
Converter /
Corrugator
Retail
Consumer
Containerboard
Corrugated packaging
Stora Enso
• SC / RCP Fluting
• Corrugated solutions for multiple
segments
Customers
• Kraftliner / Testliner
• Services e.g. design and packaging
automation
Note: SC = Semi chemical, RCP = Recycled paper
The renewable materials company
6
Packaging Solutions business fundamentals
Containerboard
Virgin
Offering
Recycled
Full portfolio of containerboards
Corrugated
packaging
Boxes incl design
services
Customers
Converters and Brand
owners
Converters and Brand
owners
Brand owners and
retailers
Geographic span
Global
Regional
Local
Capital intensity
High
High
Low
Asset and cost
competitiveness
• High volume
• Technological
differentiation
• Access to wood fiber
• Integrated pulp and
efficient energy
• High volume
• Technological
differentiation
• Access to recycled
fiber
• Efficient energy
The renewable materials company
• Proximity to
customer
• Access to growth
markets
• Technological
differentiation
Strong financial track record with room to grow
Sales 2010 – 2014*
EBITDA / EBITDA-margin 2010 – 2014*
(MEUR)
(MEUR)
1 100
200
18%
180
1 000
16%
160
14%
140
900
12%
120
800
100
2010
2011
2012
2013
2014
10%
2010
ROOC 2010 – 2014*
2011
2012
2013
2014
Production 2010 – 2014*
(M sqm)
16%
(Kt
1 100)
14%
1 000
12%
900
900
800
800
10%
1 100
1 000
700
8%
2010
2011
2012
2013
700
2010 2011
Board (Kt)
2014
2012 2013 2014
Corrugated (M sqm)
Note: Proforma non-audited financial data for the period 2010-2012
The renewable materials company
Trends shaping our industry create
new opportunities
Opportunities based on trends
Recycled fiber
deterioration
Competitive advantage for our
containerboards
Growth in retail
Shift in power creating new customers
Growth in online
shopping
Shift in consumption creates new demand
growth
Intelligence in
packaging
New functionality and value add from
packaging
Rightweighting
From selling weight to selling performance
Sustainability
Demand for sustainable fiber based
materials
The renewable materials company
Containerboard expansion into kraftliners
through conversion of Varkaus with
attractive margins
New production of kraftliners
Business transformation
•
From declining fine paper (280kton) to growing kraftliners (390kton)
•
EBITDA margin >15%
Appealing story
•
Attractive demand growth for kraftliners
•
Serve Global markets
•
Complete portfolio enabling cross selling
•
Among largest / most cost competitive machines
Low CAPEX / capacity ton
•
110 M EUR CAPEX => 281 EUR / capacity ton
•
Integrated pulp mill, power plant, well fitting paper machine and
infrastructure in place
The renewable materials company
Varkaus mill, Finland
Strengthening Stora Enso position
in Containerboard
Containerboard capacity position
from #10 to #6 in Europe
1
Smurfit Kappa
2
SAICA
High volume
•
Large scale machines in all product areas
Technological differentiation
•
Ostroleka - one of the most modern
containerboard machines using recycled fiber
•
Varkaus asset quality one of the best in Europe
3
DS Smith
4
Mondi
5
Prinzhorn
6
Stora Enso including Varkaus
Access to fiber
•
Own network for collecting recycled paper in
Poland
•
Competitive virgin fibre sourcing in Finland
Capacity +46%
10
Competitive assets complemented with
new Varkaus investment
Integrated pulp and efficient energy
•
Integrated pulp mill and power plant in all mills
Stora Enso
Source: Pöyry
Note: Containerboard position measured in capacity tonnes as of 2014
The renewable materials company
Leading position in our corrugated
packaging markets
Market shares in corrugated packaging focus markets
Year 2014, M sqm
Packaging Solutions
Regional break-down
Our markets
8 900 mn sqm
No.1
• Stora Enso is the largest player overall
• The market is very fragmented
•
•
•
1) Market share within 300 km radius from plant
Source: ICCA, Pöyry, Stora Enso
Note: Nordics = Sweden and Finland, CEE = Poland, Hungary,
Estonia, Latvia and Lithuania
Nordics
CEE
Russia
1000 M sqm
3 800 M sqm
4 100 M sqm
No.1
No.3
The renewable materials company
No.4
Well positioned to capture growth markets
• Higher growth rates in most
corrugated packaging markets where
Stora Enso is present
• Attractive global sales opportunities
to capture growth in containerboard
markets
+1,3%1
Lukhovits
Arzama
y
s
Balabanovo
+2,6%
Kristiinankaupunki
Varkaus (Q4 2015)
Heinola
Vikingstad
Lahti
Jonköping
Tallinn
Skene
Riga
Kaunas
+3,7%2
Mosina
+1,0%
Lodz
Tychy
Corrugated Packaging
Ostroleka
+4-7%
Beijing
Shanghai
Dongguan
Komarom
Containerboard
Source: Pöyry’s World Paper Markets up to 2030; Stora Enso; Rosstat
Note: CAGR data for 2015-2020. 1) Nordics = Sweden and Finland, 2) CEE = Poland, Hungary, Estonia, Latvia and Lithuania
The renewable materials company
Stora Enso provides customer value through
thought leadership and innovation
Thought leadership
Innovation in design solutions
and material performance
Proof points
•
•
•
•
Customer insights sharing
Advisory to brand owners and retailers
Basis for new business
Strong international media attention
“
I love it, sharing
insights is in line with
the trend of open
innovation.
Packaging Innovator,
Global brand owner
• DesignStudio, 8 in Europe and 3 in China
• 3D virtual store
• Modern lightweight boards
The renewable materials company
Customer case examples showing how corrugated
delivers customer value beyond the box
Increasing customer sales
Before
After
Decreasing customer costs
Before
After
Sales increase
Box weight reduction
Truck load
Box weight reduction
+40%
-20%
+60%
-38%
The renewable materials company
Stora Enso is well positioned for
profitable growth
Deep customer understanding
Strong offering
Well positioned
Innovative
Proven track record
The renewablematerials
materials company
The renewable
company
World of packaging