Magazine Paper Capital Markets Day 2002 - PowerPoint PPT Presentation

Loading...

PPT – Magazine Paper Capital Markets Day 2002 PowerPoint presentation | free to download - id: 4b7d3b-NjI2N



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Magazine Paper Capital Markets Day 2002

Description:

Capital Markets Day 2002 Bernd Rettig Senior Executive Vice President, Magazine Paper Net capacity change Mill Machine Time frame High-quality SC-B and SC improved ... – PowerPoint PPT presentation

Number of Views:56
Avg rating:3.0/5.0
Slides: 28
Provided by: arch91
Learn more at: http://www.storaenso.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Magazine Paper Capital Markets Day 2002


1
Magazine Paper Capital Markets Day 2002
  • Bernd Rettig
  • Senior Executive Vice President,
  • Magazine Paper

2
Introduction Magazine paper product range
End use products Magazines Catalogues
Direct Mail
WFC
MWC
LWC
MFC
SC
MF
NEWS
3
Introduction World market for magazine papers
2001
CMR Total 14.3 million tonnes
SC Total 6.4 million tonnes
4
Introduction Stora Enso Magazine Paper Mills
Biron, Wisconsin Kimberly, Wisconsin Niagara,
Wisconsin Whiting, Wisconsin
Veitsiluoto
Norrsundet
Anjala
Kvarnsveden
Duluth, Minnesota
Kotka
Port Hawkesbury
Summa
Langerbrugge
Kabel
Corbehem
Reisholz
Maxau-Wolfsheck
Coated Magazine Paper 2 945 000
Uncoated Magazine Paper 1 625 000
Wallpaper base 65 000
Pulp mill
Total capacity 4.6 million tonnes
5
Business drivers Importance of advertising
  • Main driving force for the consumption of
    publication papers is advertising
  • Newspaper revenues depend up to 87 and magazines
    up to 70 on advertising
  • The macro-economic mechanism
  • economy drives consumer confidence
  • consumer confidence drives consumption
  • consumption drives advertising
  • advertising drives paper consumption
  • Magazine paper is a late cyclical business

6
Business drivers GDP growth forecast
2000
2001
2002
2003
3.0
North America
4.1
0.4
2.5
2.0
Western Europe
3.3
1.6
1.0
Asia Pacific
3.9
1.2
1.5
2.6
Latin America
3.8
0.1
-1.5
2.7
Eastern Europe
6.3
1.7
3.4
3.9
Total
3.8
1.0
1.6
2.6
Source Stora Enso estimate based on consensus
economic forecasts - October 2002
7
Business drivers Advertising expenditures
Development by media in USD billion
Europe North
America Asia Pacific
Newspapers Magazines TV
Direct Mail Internet
Source Zenith ad spend forecasts - July 2002
8
Business drivers Worldwide advertising
expenditure development
in USD billion at current prices
10.0
- 4.3
1.1
2.9
4.5
Source Zenith ad spend forecasts - July 2002
9
Market SC-paper market size and forecast growth
Global SC-paper demand 2002 6.4 million tonnes
5.8
North America
5.1
2002 - 2006 average annual growth rates
O t h e r E u r o p e
3.1
Western Europe
1.6
Rest of World
New Amec market study W. Europe Average annual
growth 2002-2007 SC-paper 3.9
2002 demand (million tonnes)
2.7 0.2
3.2 0.4
Source Cepiprint / PPPC / EMGE - SE estimates
10
Market Coated Mechanical Paper market size and
forecast growth
4.3
4.3
Global Coated Mechanical Paper demand 2002 14.3
million tonnes
Western Europe
O t h e r E u r o p e
2002 - 2006 average annual growth rates
3.2
3.1
3.0
Rest of World
L. A m e r I c a
North America
2002 demand (million tonnes)
6.2 0.3 2.1 0.5
5.2
Source Cepiprint / PPPC / EMGE - SE estimates
11
CMR market development Europe
Source Cepiprint / SE estimates
12
Industry structure market position Top
producers magazine paper (SC CMR)
North America
W. Europe
Top 5 65 of capacity
Top 5 80 of capacity
  • Attractive structure
  • Leading position

Source Jaakko Pöyry, October 2002 / Stora Enso
official capacities 2002
13
Key success factors Magazine Paper Division
  • Leading market position
  • Strong strategic position in the magazine paper
    business
  • Quality products and services
  • Broad product portfolio
  • Competitiveness
  • Competitive asset structure
  • Cost efficiency and high productivity
  • Access to competitive fibre combined with own
    mechanical pulp production
  • HR development
  • Qualified and motivated personnel

14
Main strategic initiatives Magazine Paper Division
  • Improve asset quality and competitiveness by
    restructuring
  • Strengthen sales marketing
  • HR development
  • Set the benchmark in best practice

15
Asset restructuring Uncoated Magazine Paper
Europe
  • Stora Ensos SC business today
  • SC-A Strong market position with moderate
    competitiveness
  • SC-B Minor market position in a fast-growing
    market
  • Objectives of asset restructuring plan
  • SC-A Sustain market position and improve
    competitiveness
  • SC-B Improve market position and maintain
    competitiveness

16
Asset Restructuring Uncoated Magazine Paper
Europe
Project step Langerbrugge PM2 shut Langerbrugge
PM3 rebuild to SC New SC-A() Kvarnsveden
PM12 Closure of Kvarnsveden PM9 Rebuild Maxau
PM6 for more SC-B Divestiture of Wolfsheck
PM45 Switch Langerbrugge PM3 to SC-B
  • Time frame
  • 2003
  • 2002
  • 2005-2010
  • 2005
  • 2004
  • 2005
  • 2006-2008

17
Net capacity change
  • Mill Machine Time frame High-quality SC-B and
  • SC improved news
  • Langerbrugge PM2 2003 -115 000
  • Langerbrugge PM3 2002 165 000
  • Kvarnsveden PM12 2005-2010 400 000
  • Kvarnsveden PM9 2005 -135 000
  • Maxau PM6 2004 120 000
  • Wolfsheck PM4-5 2005 -90 000
  • Langerbrugge PM3 2006-2008 -165 000 165 000
  • NET CHANGE 195 000 150 000

18
SC market development Europe

SC-A
Source Cepiprint / SE estimates
including Improved Newsprint
19
Demand/Supply development SC paper - WE supply
1 000 mt
Source 1985 - 2006 Cepiprint, 2007 - 2008 SE
estimates
20
Asset quality European SC producers
Today 2007
- Weighted average PM capacity, 1 000 t/a -
- Weighted average PM capacity, 1 000 t/a -
400
400
Weighted average technical age 10
Weighted average technical age 12
STRONG
STRONG
350
350
Stora Enso
300
300
250
250
Weighted average capacity 207 000 t/a
Weighted average capacity 234 000 t/a
200
200
150
150
Stora Enso
100
100
50
50
WEAK
WEAK
0
0
0
5
10
15
20
25
30
0
5
10
15
20
25
30
- Technical age, years -
- Technical age, years -
Source Jaakko Pöyry
21
Market outlook Summary
  • Autumn 2002 shows an improvement in demand
    compared with first half
  • For 2003 a moderate recovery of magazine paper
    demand is expected
  • Despite solid demand growth in 2003 and 2004,
    existing capacity expansions will keep operating
    rates low in CMR
  • In 2003, market balance will lead to a
    competitive situation
  • Within the next four years, world demand for
    magazine paper is expected to grow by 3.8 million
    tonnes to 25 million tonnes ( 4.8 av/yr), while
    capacity will increase by 2.7 million tonnes to
    reach 26.5 million tonnes ( 2 av/yr)

22
Questions Discussion
23
Appendices
24
Industry Structure Market Position Top
producers CMR
W. Europe
North America
Top 5 73 of total capacity
Top 5 77 of total capacity
Source Jaakko Pöyry, October 2002 / Stora Enso
official capacities 2002
25
Industry Structure Market Position Top
producers SC-paper
W. Europe
North America
Top 5 74 of total capacity
Top 5 97 of total capacity
Source Jaakko Pöyry, Oct. 02 / Stora Enso
official capacities 2002
26
Market Price development Germany 1995 2002
monthly
EUR/t paper USD/t NBSK
Source PPI
27
Market Price development USA 1995 - 2002 monthly
USD/metric tonne
Source PPI
About PowerShow.com