virgin fibre cartonboard – the most environmentally sound ... and... · • lack of packaging or...
TRANSCRIPT
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Virgin Fibre Cartonboard– the Most Environmentally SoundPackaging Material
Mika Joukio
Capital Markets’ Day 10 June 2010
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Content
1. Our Business
2. Strategy
3. Re-engineering
4. Profitability
5. Current Focus Areas and
Outlook
6. Our partnership with Barilla
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Our Business
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The Leading Producer in All Chosen Businesses
• High-performance, lightweight paperboards and
papers made from primary fibre for • Food
• Confectionery
• Beautycare
• Pharmaceuticals
• Cigarettes
• Consumer durables
• Graphics
• Integrated Brand Packaging (IBP)
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M-real the Clear Leader in the Very Well Balanced Market
Biggest Folding Boxboard Producers in Europe
Capacity Share (%)
8 %
8 %
9 %
10 %
25 %
32 %
0 % 5 % 10 % 15 % 20 % 25 % 30 % 35 %
Holmen
IP
Careo
Mayr-Melnhoff
Stora Enso
M-real
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Production Facilities
Cartonboards 795 000 t/a• Kyro, Simpele, Tako, Äänekoski
Linerboards 375 000 t/a• Kemiart Liners
Papers for flexible 55 000 t/a packaging and labels• Simpele
Wallpaper base 105 000 t/a• Kyro
BCTMP 580 000 t/a (bleached chemi-thermo-mechanical pulp)• Joutseno and Kaskinen
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Most Modern and Efficient Production
• Production units are in good condition─ Simpele and Äänekoski major rebuilds since 2000
─ Former and coating unit investments at Kemiart
Liners in 2005-2006
─ Kyro and Tako power plant investments in 2007
• The most modern BCTMP production units
in the world
• Strategic ownership in Metsä-Botnia
• High self-sufficiency in energy including
valuable Pohjolan Voima shareholding
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Strategy
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Strategic Cornerstones
• We develop products and services targeting to further reduce the environmental impact
• Our strategic choice is high-quality virgin fibre based lightweight cartonboards
• We want to be the preferred partner to the global brand owners
• We target growth, especially in food sector
• We have strong fibre knowhow and we are fully self-sufficient in fibres
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Board Consumption Is Growing
Lähde: Jaakko Pöyry”World Paper Markets up to 2025”
Japan
India
Eastern Europe
Latin AmericaRest of Asia
Oceania
China
Africa
Middle EastRussia
Average 2.3%/a
North AmericaWestern Europe
-1
0
1
2
3
4
5
6
7
0 20 40 60 80 100Share of consumption in 2006, %
Demand growth, %/a
Source: Jaakko Pöyry”World Paper Markets up to 2025”
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Significant Amount of Food Destroyd Before They Reach Consumers*
• Lack of packaging or inadequate packaging in distribution in developing countries causes 30% to 50% of all food to decays
• Respectively in Western Europe this figure is only 2-3%
• Deteriorated food a major cause of deaths globally
*) According to Europen - Packaging in the sustainability agenda
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6 % Protects the Whole Process
6,5 % Source: Incpen Table for One
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Cartonboard Has the Lowest Carbon Footprint
0
2000
4000
6000
8000
10000
12000
14000
M-real's CartaSolida
HDPE PET PLA (Biobasedpolymer)
Aluminium
kg/to
nne
Source: M-real and Sustainable Packaging Coalition - SPC
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Watch Your Weight!
For an order of 50.000 sheets (520 x 720 mm) you will need 18.720 m2 of board:
~13 mNm CD stiffness, ~500 µm thickness
M-real lightweight paperboardAverage
FBB(folding boxboard)SBB
(solid bleached board)WLC(white lined chipboard)
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Lightweighting Improves Sustainability throughout the Whole Chain
Lightweight products use less raw materials
Reduced total amount of packaging material and lower carbon footprint
Reduction in total weight means less transported material
Less packaging waste and reduced recovery fees at the end of the chain
Efficient production saves environment
Excellent consistency means less waste in converting and packing processes
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Consumers Consider Paperboard as the MostEnvironmentally Friendly Packaging Material
Source: Korhonen Virpi, 2009. Survey on consumers’ attitudes, preferences and choices concerning packaging 1998-2009.
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Consumers Consider Paperboard as the MostEnvironmentally Friendly Packaging Material
Source: Korhonen Virpi, 2009. Survey on consumers’ attitudes, preferences and choices concerning packaging 1998-2009.
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Consumers Consider Paperboard as the MostEnvironmentally Friendly Packaging Material
Source: Korhonen Virpi, 2009. Survey on consumers’ attitudes, preferences and choices concerning packaging 1998-2009.
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Consumers Consider Paperboard as the MostEnvironmentally Friendly Packaging Material
Source: Korhonen Virpi, 2009. Survey on consumers’ attitudes, preferences and choices concerning packaging 1998-2009.
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The 4 R’s of M-real Cartonboards
RENEWRENEW
Renewable wood fibres
From sustainably managed certified forests
Energy from wood based biofuels
REDUCEREDUCE
Light but strong
Goodconsistencyreduces waste
Efficient use of energy, water and fibre
RECYCLERECYCLE
100% recyclable
Can also be incinerated for energy or composted at the end of the lifecycle
REPORTREPORTREPORT
Paper Profile
Carbon Footprint calculations
Products comply withinternational safetystandards
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Re-Engineering
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The Most Important Actions to Improve Profitability
• Headcount reductions
• LITE4U
• Closures of Tako’s BM2 and Lielahti BCTMP mill
• Streamlining sales and customer service network
• Complexity reduction whenever and wherever possible
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Headcount Decreased by 25 % and ProductionCapacity Increased Despite the Closures
Headcount Capacity 1000 tons
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2006 2007 2008 2009 2010E1400
1450
1500
1550
1600
Headcount Production capacity
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Productivity at the Mills Has Improved Over 40 %
812964
1 1451 0741 067
0
300
600
900
1 200
2006 2007 2008 2009 2010E
tons
/per
son/
a
Production capacity of M-real Consumer Packaging mills compared to production personnel
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Fixed Costs Have Decreased by 20 %
267 243 211229
0
100
200
300
2006 2007 2008 2009
Me/
a
Fixed costs excluding non-recurring items
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Remarkable Product Portfolio Development
Avanta Ultra C
Avanta Prima
Avanta Super
Nova X
Simwhite
Simcote
Carta Solida
Carta CX
Carta Solida T
Tako CX Lite OBA
Avanta Prima CTako CX White
Avanta Ultra
Gala X
Tako CX
Carta Integra
Tako CX Lite
Tako CX Foil
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Profitability
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Today Our Profitability Is the Best in the Industry
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
16 %
18 %
2006 2007 2008 Q1 / 2009 Q2 / 2009 Q3 / 2009 Q4 / 2009 Q1 / 2010
M-real ConsumerPackaging
Stora EnsoKuluttajapakkaus-kartonki
Holmen Iggesund
IP - ConsumerPackaging
*) Ilman kertaluontoisia eriä.EBIT %, excluding non-recurring items
Consumerboards
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Current Focus Areas and Outlook
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Focus Areas
• Price increases in all products and at all markets
• ONWC reduction
• Development of new product innovations
• Controlled capacity expansion by debottlenecking
• Continuous improvement in all functions
• Continue studies regarding expansion to developing markets
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Outlook
• Demand seems to continue
strong in all products
• Price increases are going
through and prices will be
slightly higher at the end of Q2
compared to the end of Q1
• We expect good profitability to
continue
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Our Partnership with Barilla
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Barilla
• Barilla is one of the leading brand owners in food sector and strategically important customer for M-real
• Co-operation started in 2008
• Today we supply Simcote for packing purposes and Chromolux for labels altogether ca. 6 000-7 000 tons/a
• We share Barilla’s vision for good packaging and we are doing our utmost to further improve safety and sustainability in packaging
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DidDid youyou knowknow
... ... the wood needed for one tonne of board grows in the wood needed for one tonne of board grows in less than one second in Finland.less than one second in Finland.
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Thank you - Grazie - Kiitos!