Specialist
Former VP at International Paper Co
Agenda
- International Paper’s (NYSE: IP) business units and positioning
- Outlook for paper business in Brazil
- LATAM market competitive dynamics and overview
- Demand trends and technology advancements
Questions
1.
Could you start with an overview of International Paper’s operating environment? What key challenges have persisted since the start of the pandemic?
2.
What will be the most important themes and trends in 2021, given the shifts in consumer demand? Do you think these dynamics are temporary or could they sustain beyond the pandemic?
3.
International Paper’s revenue increased 15% YoY in Q2 2021, which it attributes to price acceleration. Do you think the company is prioritising higher margin, or is it better to have higher volume overall?
4.
How significantly might the cost of freight and shipping be impacting International Paper’s margins?
5.
Lumber prices are also up fairly significantly across North America and Europe, and it seems they won’t fall anytime soon. Could you outline International Paper’s lumber suppliers and how this price volatility will impact margins over the short term?
6.
How would you describe International Paper’s relationship with pulp suppliers in LATAM? Would you say they have a cooperative or more transactional relationship?
7.
How does International Paper producing its own pulp in Brazil provide an advantage over competitors?
8.
How does recycling ultimately affect International Paper’s paperboard margins?
9.
How will the utilisation rate of the paper mills ultimately affect their cost of production? How should we frame the fixed vs variable costs?
10.
How does the low inventory of containerboard affect International Paper’s operational efficiency?
11.
How long does it typically take for International Paper to replenish inventory? How much inventory would the company ideally want to keep?
12.
What are International Paper’s historic strengths globally and within LATAM specifically? Who is the company competing against?
13.
How is competition evolving between International Paper and Klabin, especially in light of the changes to consumer spend and packaging?
14.
What are the demand drivers for pulp in LATAM? Do you think there are any issues with overcapacity?
15.
Do you think trends in paper mill technology are positively impacting International Paper’s cost structure, or does it potentially need some additional capabilities?
16.
Could you outline the benefit to International Paper from reducing its debts this year and as it spins off some other segments? What do you think is the company’s long-term strategy?
17.
How does International Paper manage each geographical market? Is there a stronger sense of autonomy in management across the different regions, or a collaborative effort?
18.
What would you identify as International Paper’s main challenges for the coming months? Are most of these external or internal problems?
19.
Are there any key topics relating to International Paper that you’d like to highlight in conclusion?
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