Stora Enso Wood Products Tuija Brandt, 09022011 Wood products as business Construction Joinery Packaging Fibre products Structural products for building and construction industries Products for window, door and furniture industries, for interior and exterior paneling, gardens Products to pallet and crating manufacturers Own pellets production Materials to pulp, panel and bio-energy businesses 2 Opportunities for wood products • Renewable material • Small carbon footprint • Higher share from urban construction • Higher performance through modification • Biobased new businesses 3 Building megatrends • Globally, construction sector consumes about 50% of natural resources, mostly non-renewables* – Resources of non-renewables being depleted • Construction will continue to grow rapidly – Population growth – Urbanisation and population moves – Increasing affluence • Construction in key role in combating climate change – Heavy carbon footprint of concrete and steel constructions * Source: EU research program RELIEF 2003 4 Stora Enso in brief • Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. • 12.7 million tonnes of paper and board • 6.0 million m3 of sawn and processed wood products • Sales 2009 EUR 8.9 billion • Approximately 27 000 employees in more than 35 countries • Shares listed on Helsinki and Stockholm stock exchanges 5 Stora Enso Wood Products in brief Sales bn € Employees # of units 1.5 Northern European Unit Central European Unit 4 400 22 Production in 11 countries Global sales network Sawing capacity, Mm3 6.0 Further processing,Mm3 3.1 Pellets, 1 000 t 310 Wood Products, Hannu Kasurinen 26 May 2010 6 Wood Products organisation BA Management Team BA Wood Products Hannu Kasurinen HR & Business Excellence Robert Linke Finance, IT & M&A Jari Suominen Legal Jari Suvanto Northern European Unit & R&D Vesa Pölhö Central European Unit & Investments Herbert Jöbstl Marketing & Sales Olle Berg Decorative Solutions & Communications Miikka Pesonen Building Solutions & Solid Biofuels Matti Mikkola Tuija Brandt Anne-Maarit Sepling Sven Lillepalu 7 Wood Products organisation Northern European Unit, BA R&D Northern European Unit Vesa Pölhö BA R&D Duncan Mayes Marketing & Sales WPS project Pekka Hämäläinen Controlling Jarkko Nevalainen NEU asset risk management Margo Nolvak HR Robert Linke Production Finland Tuomo Hartikainen Production Sweden Håkan Lundberg Honkalahti Tuomo Hartikainen Gruvön Håkan Lundberg Imavere Marek Moorits Varkaus Timo Elola Kopparfors Pierre Aggarwall Näpi Tonu Saaber Kitee Petri Pussinen Ala Erik Sjölund Launkalne Uldis Deisons Uimaharju Harri Järveläinen Production Baltic & Russia Vesa Pölhö Production DIY Amsterdam Dick Wilkens Technology, Investments, Operations Improvement Petri Pussinen Sales Coordination Mari Tarvainen Indrek Saks Operations Impr. Matti Knuuttila Nebolchi Mihail Polin Alytus Darius Vaiciukynas Impilahti Asmo Varis 8 Wood Products organisation Central European Unit, BA Investments, BA Risk Management Central European Unit Herbert Jöbstl BA WP Investments Franz Kraus Marketing & Sales Silvio Butalja BA WP Risk Management Markus Hirmke 50% Franz Kropfreiter Management Assistant Alexander Storfer Kurt Schrammel HR & OHS Robert Linke Assistant & Communications Margit Dienstl Controlling Albert Sickl Wood Procurement Norbert Hüttler Austria & Europe South East Andreas Kogler Czech Republic Martin Masek Poland Robert Motala Log Steering & Logistics Johann Klaus Production Austria & Poland Reinhard Moser Production Czech & Germany Pavel Urban Technology, Investments & Procurement Franz Kraus Quality, IT & Operations Improvement Edi Reutner Brand Norbert Hüttler Zdirec Pavel Urban Quality Philipp Sauer Ybbs Reinhard Moser Plana Radek Pecka Operations Impr. Erich Faffelberger Sollenau Edi Reutner Pfarrkirchen Michael Schmidt Sales Planning & Coordination Rainer Schrenk Logistics & Customs Roman Gierer Bad St. Leonhard Markus Limarutti Murow Michael Temper 9 Wood Products organisation Marketing & Sales Marketing & Sales Olle Berg MENA & Southern Europe Silvio Butalja Marketing Communications Customer relations (VOICE) new hire Controlling Jari Lehto Admin & Sales support Reinhard Schnait Central Europe Franz Kropfreiter Northern Europe Satu Härkönen Overseas Kurt Schrammel Western Europe Jari Honkanen Middle East Austria Sweden Greater China UK North Africa Czech Rep. Norway North America France, Spain Italy Slovakia Denmark Australia Holland, Belgium Cyprus, Greece Poland Baltic Countries South East Asia Puumerkki Croatia Germany Russia Japan Slovenia Euroglulam Israel , 10 10 Wood Products organisation Marketing & Sales, MENA & Southern Europe Marketing & Sales MENA & Southern Europe Silvio Butalja RETS (MENA NEU) Kari Naumanen Middle East CEU Ales Azman North Africa CEU Silvio Butalja Saudi Arabia Saudi Arabia Algeria Algeria Yemen Libya Egypt Qatar Tunisia Tunisia Kuwait Egypt Morocco Iraq Morocco Italy Salvatore Sortino Stefan Kahrer Hubert Wölfl Greece Silvio Butalja Stefan Kahrer SLO/ HR/ SR/ BiH Silvio Butalja Hubert Wölfl Boris Drasler Astrid Tolve Turkey 11 11 Wood Products organisation Marketing & Sales, Central Europe Marketing & Sales Central Europe Franz Kropfreiter Assistant Margit Dienstl AT, CZ, SK, HU, RO Hannes Buschenreithner Germany & Switzerland Axel Quaiser Poland Franz Kropfreiter KVH Austria Christian Hartig Germany North Klaus Kniesel NEU Mariusz Kowalski CZ / SK / HU Marcel Rusinko Germany West Bodo Kunz CEU Siegfried Winkelbauer Germany Central Jörg Schrader Euroglulam * Germany South & Switzerland Matthias Dachauer Germany NEU Jesper Harck ** * Project ** 50% Denmark & Iceland 12 12 Wood Products organisation Marketing & Sales, Northern Europe Marketing & Sales Northern Europe Satu Härkönen Baltic Countries & Russia Meelis Lokk Sweden & Norway Satu Härkönen Denmark & Iceland Jesper Harck * Estonia Jaan Oja Mats Bäverström Jakob Olesen Estonia Ingvar Vaga Mats Jonsson Pia Örum Israel Salvatore Sortino ** Latvia Girts Vitols Lithuania Paulius Anulis Russia Alexey Shchinin * 50% Germany ** in addition to his responsibility for Italian market 13 13 Wood Products organisation Marketing & Sales, Overseas Marketing & Sales Overseas Kurt Schrammel Sales Support Overseas Berthold Altbart Peter Hofbauer-Hofmann Helena Jin * TBN (located NEU) Australia Matthew Wood North America Brent Saunders Darrin Wheeler Philip Reilly Assistant Margit Dienstl Japan Tomoki Sato Greater China Alex Chan Hisanori Shinomiya David Yang Masao Fukuchi Iris Tsai SE Asia, India & Pakistan Peter Hofbauer-Hofmann Shirley Yu Kayte Bewley Wayne Carabott Teresa Lotho * 50% NESA Team 14 14 Wood Products organisation Marketing & Sales, Western Europe Marketing & Sales Western Europe Jari Honkanen Development Olli Männistö France Mikael Grevesmuhl Portugal & Spain Mikael Grevesmuhl Holland & Belgium, DIY Amsterdam Dick Wilkens UK & Ireland Erkki Välikangas Bruno Maresca Julia Ahvenainen Bart-Jan Scheeffer Kevin Spence Philippe Boyer Arturo Sombrerero* Albert Bruinsma Jon Bakewell Jeanlouis Descubes Ralph Kwist UK Timber frame & CLT Wayne Probert Puumerkki Eero Larvio PM Finland operations PM Baltic Raivo Olgo Taivo Pivnik Vytautas Kuprys * 50 / 50 % Spain vs. France 15 15 Wood Products organisation Decorative Solutions Unit Decorative Solutions Miikka Pesonen Industrial Components Operations Marios Nicolaou R&D, Technology Matti Myyryläinen Industrial Components Sales Axel Sternö Consumer Products Marios Nicolaou Sweden/Norway Christian Winlöf Finland Heikki Leppänen Finland Matti Mönkkönen Western Europe Julia Ahvenainen Modified Wood Jukka Kilpeläinen Benelux Albert Bruinsma Business Development Janne Pynnönen Marketing Communications Anne-Maarit Sepling Production Imavere Ala Honkalahti Uimaharju Näpi Denmark Jesper Harck Jakob Olesen Controlling Mark Einaste Baltics Meelis Lokk Benelux Bart-Jan Scheeffer France Bruno Maresca 16 16 Wood Products organisation Building Solutions Unit Building solutions Matti Mikkola CLT production CLT Business Gernot Weiß Sales and marketing support Sales Administration: Sylvia Schriefl, Sabrina Schmerlaib Marketing: Reinhard Riedl Regional sales Stefan Rudolf (AUT) Richard Steindl (GER, CH) Matthias Lanator (UK, F, E) tbn (New Markets) IT / SLO / HR Business Development Janne Manninen CLT Technical Development & Support Hermann Kirchmayr Solution Business tbn Marketing Communications (shared) Solution Business Sweden Mattias Brännström Controlling Petr Hitzger Technical support team Wilhelm Polster Ferdinand Kraheberger Walter Dorner Solution Development & Support tbn (shared) IT Development & support (shared) 17 17 Wood Products organisation Solid Biofuels Unit Solid Biofuels Matti Mikkola Pellet Production Business Development Siim Liblik IT support & development (shared) Pellet Sales Tomas Isaksson Customer support Elisabet Dolff Maria Nyman-Stålberg Cina Lekander Marketing Communications (shared) Controlling Petr Hitzger Regional sales Maria Eriksson Kjell Mattsson 18 18 19 Tilanne tiistaina 08-02-2011 • Ulkoisessa haussa olevat paikat www.storaenso.com/careers virkoja avoinna 19 kesätyöpaikkoja 88 lopputyöpaikkoja 1 • Oma aktiivisuus ja aiheen tarjoaminen R&D: Duncan Mayes, Ari Lehikoinen Viestintä: Tuija Brandt HR: Pekka Riihimäki, Pauli Vainionpää, integraattie HR henkilöt (Manpower) 20 Stora Enso Wood Products Strong position in all key markets • #1 wood products company in Europe • #4 globally Top 5 sawmill companies globally West Fraser • • Market leader in, e.g., – Japanese post & beam housing – Scandinavian joinery components Own global sales network & own distribution operations in key markets Weyerhaeuser Canfor Stora Enso AbitibiBowater 0 2 4 6 8 10 - Capacity in million m3 Sources: Pöyry, Stora Enso 21 Stora Enso Wood Products Change in focus 1 • From fibre support sawmilling to enduse driven wood products company 2• End-use driven solutions for building and interior 3• Restructured, efficient asset base • Capitalizing on the superior environmental performance 4 22 Stora Enso Wood Products Northern and Central Europe the primary markets Northern Europe 25% Central and Southern Europe 36% USA 1% Asia & Oceania 20% North-Africa & Middle-East 18% 23 Stora Enso Wood Products Major structural changes 2000-2001 Central European sawmills - Segment investments, first steps to engineered wood products (post mill, KVH, planing mill) 2000-2002 Swed-up - Planing lines and concept change in 3 Swedish sawmills 2003-2005 Sylvester acquisition and expansion in Baltic countries 2004 Expansion to Russia Finn-up - New further processing capacity and concept changes in several Finnish sawmills 2007-2009 Pellet investments Expansion in joinery components, ThermoWood, CLT Poland expansion and Russian upgrades 2006-2010 Restructuring programme (Sauga, Linghed, Paikuse, Viljandi, Swietajno, Tolkkinen, Kotka) 1999 Stora Enso Timber Oy 1998 1872 1288 1642 24 Stora Enso Wood Products Result 2010 EUR million 10-12/10 7-9/10 10-12/09 2010 2009 Change % 10-12/1010-12/09 Change % 10-12/107-9/10 Change % 20102009 410.3 424.1 344.9 1 588.7 1 239.6 19.0 -3.3 28.2 EBITDA *) 21.1 35.2 23.9 110,7 25.6 -11.7 -40.1 n/m Operating profit/ loss *) 10.2 25.2 15.0 70.9 -8.0 -32.0 -59.5 n/m % of sales 2.5 5.9 4.3 4.5 -0.6 -41.9 -57.6 n/m ROOC, % **) 6.8 16.8 10.4 12.3 -1.4 -34.6 -59.5 n/m 1 223 1 299 1 298 5 057 4 902 -5.8 -5.9 3.2 Sales Deliveries, 1000 m3 *) Excluding non-recurring items **) ROOC = 100% x Operating profit/Operating capital 25 Stora Enso Wood Products Production process Transportation Log sorting Debarking Bio-energy Sawing Green sorting Drying Customer Consumer Packing Distribution/Delivery Further processing Grading and length sorting Storage Packing 26 Stora Enso Wood Products Product range Processing Level Construction Further processed Basic Engineered joinery Further processed joinery Basic joinery Joinery components ThermoWood WoodPax Plattenware Rohhobel SF / PF / V Sound knotted U/S Engineered construction Further processed construction Basic construction CLT Edge-glued Mabashira KVH / DUO / TRIO Post & Beam Scaffold boards CLS Hagarazai Lamina – FP Strength graded Packaging Side products Usage Level Joinery Engineered Boards & Balks Genban Gurte & rgh Scaffold boards KVH raw materials Lamellas Lamina – rough Scantling & Laths SF / PF / V Basic packaging Lower grades Schaal Sideboards Further processed side products Pellets Basic side products Bark Chips Saw dust 27 Stora Enso Wood Products Joinery components Superior quality joinery components tailored to improve efficiency of window & door manufacturing. Door and door frame components • Form stability via finger jointing • Highly accurate size tolerances • Consistent and uniform high quality Window components • Efficient manufacturing with mass-customised components • Continuous fibre structure • Consistent and uniform quality 28 Stora Enso Wood Products KVH (Konstruktionsvollholz) Finger-jointed solid construction timber (KVH® ) is typically made of Central European spruce to be used in modern timber construction applications. • Precise fit and four side planed (S4S) • C-grade and Standard C24 • Finger-jointing permits production in every length up to 16 m • Attractive appearance • Superior dimensional stability due to technical drying process 29 Stora Enso Wood Products WoodPax The WoodPax® product family offers ready-to-install products for a variety of construction needs: high quality exterior claddings, interior wall and ceiling panels, floor boards and all-round planed products. • Selected spruce and pine raw material • Consistent and uniform quality • Available both as wood-ready and surface-coated • Neat and user-friendly packaging • Products for DIY chains • Planed product family for retailers & construction industries 30 Stora Enso Wood Products ThermoWood ThermoWood® is a natural choice for challenging applications. The patented thermal modification process has a lasting effect on the technical properties of the material. It creates a new wood species with its own unique properties, defined by the European committee for standardisation (CEN/TS 15679). ThermoWood® Concept 1. Patented modification process 2. Trademark and logotype 3. Audited quality control system 4. Life cycle assessment (LCA) 5. Certified raw material 6. Standardization 7. R & D 31 Stora Enso Wood Products Post & Beam Glue-laminated post & beams • Stable supply guaranteed by integrated operations, from sawing to glue laminating • High quality in accordance with JAS structural glue-laminated timber • Accurate size tolerance to match market needs 32 Stora Enso Wood Products CLS (Canadian Lumber Standard) The high quality of European raw material gives our products excellent strength values, appearance and consistent quality. The products are manufactured for use by builders, home improvement centres, retailers, truss and wall panel manufacturers, and more. • • • • • Highly accurate size tolerances Superior form stability and surfacing Consistent and uniform quality High environmental standards Flexible sizes and lengths 33 Stora Enso Wood Products CLT (Cross Laminated Timber) CLT provides an innovative massive building system for family houses, multi-storey residential and commercial or industrial buildings, and for special applications in structural timber constructions. CLT is commonly applied for external and internal walls, ceilings and roofs. • Big element dimensions: 2.95 m x 16 m with a thickness of up to 40 cm • Prefabricated elements with cut-out doors and windows ready for assembling • Multi-layer board with crosswise arrangement of lamellas • Dry building system with a minimum of swelling and shrinkage of the elements • Best performance in static and physical properties 34 Wood as rawmaterial • Wood is renewable and recyclable as rawmaterial • Stora Enso Wood Supply procures 13 million m3 wood to Timber sawmills – Approximately 50% spruce and 50% pine • Wood is procured from private and public forests in Europe • Forests are part of the climate solution – Growing forests sequester carbon – The products substitute other, more carbon intensive materials and fossil fuels mage size must be 140x78mm 100dpi 35 Our sustainable forestry principles • Whenever trees are cut, new ones are planted – no net CO2 emissions into the atmosphere • Only legal and acceptable wood sources – 100% of traceability • Promoting forest certification – proportion of certified wood 60% in 2007 – exceeds the legal requirements • Responsible plantation management – no conversion of rainforest to plantations 36 Superior carbon footprint Compared to any other building material g/kg 1000 500 0 Steel frame Light weight concrete block Aircrete block Brick Concrete Wood -500 -1000 Carbon sink, g/kg -1500 CO2 emissions of manufacturing, g/kg -2000 Source: Puuinfo / Finnish Forest Industries 37 Carbon cycle for the forest products industry Atmosphere Used as bioenergy CO2 Fossil CO2 Fossil and non-fossil CO2 Carbon is further stored in wood, paper and board products. At the end of their life-cycle they can be Recycled Carbon is stored in logs Stora Enso’s mills use a high share of bioenergy in production Non-fossil CO2 is emitted when bioenergy is used whereas fossil CO2 is emitted during the use of fossil fuels. 38