Label Day UPM Labelstock Business

Transcription

1 Label Day UPM Labelstock Business Heikki Pikkarainen May 11, 2005 Heikki Pikkarainen Page 1

2 Contents Introduction Worldwide labelstock market Raflatac UPM Rafsec Conclusions Heikki Pikkarainen Page 2

3 Labelstock Business is an integral part of UPM Group Executive Team President & CEO Jussi Pesonen Kari Toikka EVP and CFO Magazine Papers Division Jyrki Ovaska President Newsprint Division Hartmut Wurster President Fine & Speciality P. Division Matti Lievonen President Wood Products Division Harald Finne President Converting Division Speciality Coating Business Matti J Lindahl President Labelstock Labelstock Business Business Heikki Heikki Pikkarainen Pikkarainen President President Heikki Sara EVP, Strat. Development Markku Tynkkynen EVP, Resources Pirkko Harrela EVP, Communications Hans Sohlström EVP, Marketing Pauli Hänninen EVP, Business Dev. Riitta Savonlahti EVP, Human Resources Heikki Pikkarainen Page 3

4 Divisional information Sales and operating profit % 90% 80% 70% 60% 14% 16% 5% Other operations Wood products 50% 40% Converting 30% Papers 20% 10% 0% Sales Operating profit * Capital employed * Operating profit excl. non-recurring items and amortiziation of goodwill Heikki Pikkarainen Page 4

5 UPM Labelstock Business = Raflatac + UPM Rafsec Heikki Pikkarainen Page 5

6 Strategic role of UPM Labelstock Business within UPM Group Integral part of UPM Group Growth business: Profitability & Growth Interesting growth opportunities Raflatac UPM Rafsec Heikki Pikkarainen Page 6

7 Contents Introduction Worldwide labelstock market Raflatac UPM Rafsec Conclusions Heikki Pikkarainen Page 7

8 World demand for labels Total market worldwide: 28.3 billion m 2 ROW 6% 20% Asia Pacific North America 35% 4% South America 35% Europe Source: Alexander Watson Associates, Labelling Markets Sourcebook 2004: 2003 statistics Heikki Pikkarainen Page 8

9 Market share of different labelling techniques 13% Sleeving 1% In-Mould Others 3% Pressure sensitive 45% 38% Glue applied Source: Alexander Watson Associates, Labelling Markets Sourcebook 2004: 2003 statistics Heikki Pikkarainen Page 9

10 Pressure sensitive labels manufactured from pressure sensitive labelstock Matrix Face material Pressure sensitive label Adhesive Release coating (Silicone) Release liner Heikki Pikkarainen Page 10

11 End-use areas Food labelling Beverage labelling Personal Care labelling Home Care labelling Pharmaceutica l labelling Retail, Logistics & Transport labelling Oil & Industrial Chemical labelling Digital printing labelling Heikki Pikkarainen Page 11

12 Contents Introduction Worldwide labelstock market Raflatac UPM Rafsec Conclusions Heikki Pikkarainen Page 12

13 Raflatac We are in the business of pressure sensitive solutions for branding and information transfer. Heikki Pikkarainen Page 13

14 Raflatac Turnover: about EUR 800 million Personnel: 2,200 9 factories in five continents Global market position: Nr. 2 Heikki Pikkarainen Page 14

15 Raflatac s turnover MEUR Heikki Pikkarainen Page 15

16 Raflatac factories, terminals and sales offices Europe Tranby, Norway Tampere, Finland Factory Terminal Sales Office Scarborough, the UK Dublin, Ireland Lisbon, Portugal Düsseldorf, Germany Nancy, France Zürich, Switzerland Milan, Italy Barcelona, Spain Helsingborg, Sweden Ishoj, Denmark De Meern, the Netherlands Warsaw, Poland Prague, Czech Republic Wien, Austria Tatabánya, Hungary Istanbul, Turkey Moscow, Russia Kiev, Russia Heikki Pikkarainen Page 16

17 Raflatac factories, terminals and sales offices USA, Canada & México Greenville, WI Montreal, QC Toronto, ON Wilkes-Barre, PA Ontario, CA Fletcher, NC Mexico City, MX Factory Terminal Sales Office Heikki Pikkarainen Page 17

18 Raflatac factories, terminals and sales offices Asia-Pacific Beijing Shanghai Hong Kong Thailand Singapore Johor, West Malaysia Factory Terminal Sales Office Adelaide, Australia Melbourne, Australia Brisbane, Australia Sydney, Australia Heikki Pikkarainen Page 18

19 Raflatac factories, terminals and sales offices Africa & India India Johannesburg, South Africa Durban, South Africa Factory Terminal Sales Office Capetown, South Africa Heikki Pikkarainen Page 19

20 Contents Introduction Worldwide labelstock market Raflatac UPM Rafsec Conclusions Heikki Pikkarainen Page 20

21 UPM Rafsec Established in 1997 Headquarters in Tampere, Finland Production in Jyväskylä, Finland New factory in the US will start-up Q4/2005 USD 24M investment program Heikki Pikkarainen Page 21

22 UPM Rafsec investment in the USA A new state-of-the art RFID tag production facility in Fletcher, North Carolina in the USA Specialization in high-quality UHF (ultra high frequency) tags Part of a USD 24 million investment program Start-up during Q4/2005 Annual capacity of one billion RFID tags when investment fully implemented Heikki Pikkarainen Page 22

23 UPM Rafsec tags Heikki Pikkarainen Page 23

24 End-use areas Pharmaceutical industry Logistics Fashion industry Retail Libraries Returnable transit items Heikki Pikkarainen Page 24

25 Some early adopters of RFID Heikki Pikkarainen Page 25

26 RFID market projection Volume Market is moving to wide scale piloting phase in Time Implication s to supply capabilities Piloting & coping with variety Platform development for ramp-up Fast execution of the ramp-up Heikki Pikkarainen Page 26

27 Contents Introduction Worldwide labelstock market Raflatac UPM Rafsec Conclusions Heikki Pikkarainen Page 27

28 Strategic growth target Grow strongly in films Continue to grow in North America Strengthen position in Emerging markets in Eastern Europe/Russia Asia Latin America Secure global market leadership in RFID tags Heikki Pikkarainen Page 28

29 Conclusions Targeted annual turnover growth above market average Disciplined focus on continuous improvement and profitability CapEx times depreciation Successful commercialisation of UPM Rafsec Heikki Pikkarainen Page 29

30 Heikki Pikkarainen Page 30