Mayr-Melnhof Karton AG · VIE:MMK
Mayr-Melnhof Karton — H1 2004 Earnings Presentation
26 slides from Mayr-Melnhof Karton's earnings presentation, Apr 25, 2004
Slide 1: Mayr-Melnhof Karton AG 1st Half-Year 2004
Mayr-Melnhof Karton AG 1st Half-Year 2004 April 25, 2004 Page 1
Slide 2: Segments
Segments Group Indicators • The worldwide leading producer of Karton recycled fiber based cartonboard Packaging Graphia • Europe‘s largest manufacturer of folding cartons • A leading European packaging producer for cigarettes and confectionary Page 2
Slide 3: Highlights: 1st Half-year 2004
Highlights: 1st Half-year 2004 Group • Best ever half-year results Indicators - Net income increased by + 32% to EUR 51.5 million Karton Packaging Graphia • High capacity utilization in all Divisions • Successful cost management while price pressure prevails • Acquisitions continued according to sch
Slide 4: Production Sites
Production Sites HY 1, 2004 Group MM-Karton 9 Mills in 6 countries Indicators MM-Packaging 19 Facilities in 9 countries Karton MM-Graphia 5 Facilities in 2 countries Packaging + a worldwide distribution network Graphia 7.300 Employees Page 4
Slide 5: Group Results 1st Half-year 2004
Group Results 1st Half-year 2004 Consolidated in millions of EUR, US GAAP HY 1 / 2004 HY 1 / 2003 +/- Group Indicators Sales 709.0 660.1 +7.4% Karton Operating profit 75.9 70.5 +7.7% Packaging Operating margin 10.7% 10.7% Graphia 0.1 (0.7) Net interest Other net (0.1) (3.2) Income before income taxe
Slide 6: MM Group – Quarters
MM Group – Quarters Group 350 16% Indicators C Karton 300 14% Packaging 12% Graphia 250 10% 200 8% 150 6% 100 4% 50 2% 0 0% I/02 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 II/04 in millions of EUR Sales Operating margin % Page 6
Slide 7: Sales by Region
Sales by Region Group Indicators EU Karton 70% Packaging Graphia EU (CEE) 6% Eastern Europe 11% Asia Others 6% 7% (HY 1, 2004) Page 7
Slide 8: Sales and Operating Profit by Divisions
Sales and Operating Profit by Divisions Group Indicators PACKAGING PACKAGING Karton Packaging 5 6 21% Graphia 1 32% 2 % KARTON 48% % KARTON 55% 24% 20% GRAPHIA GRAPHIA Sales Operating profit (HY 1, 2004) Page 8
Slide 9: Group Balance Sheet
Group Balance Sheet Consolidated in millions of EUR, US GAAP 06/30/2004 12/31/2003 Group Current assets 577.5 527.9 Indicators Karton Non-current assets 669.3 656.7 Packaging Total assets 1,246.8 1,184.6 Graphia Current liabilities 362.9 325.2 Non-current liabilities 204.0 213.0 Minority interests 1
Slide 10: Group Cash Flow
Group Cash Flow Group Consolidated in millions of EUR, US GAAP HY 1 / 2004 HY 1 / 2003 2003 Indicators Cash flow from operating activities 81.5 70.9 157 Karton Packaging Cash flow from investing activities (57.0) (50.0) (82) Graphia Cash flow from financing activities (34.9) (32.8) (57) Net change i
Slide 11: Mayr-Melnhof KARTON
MM KARTON AG Mayr-Melnhof KARTON Page 11
Slide 12: MM-Karton: 1st Half-year 2004
MM-Karton: 1st Half-year 2004 • More solid demand in Western Europe; persisting dynamic Group development in the Central and Eastern European markets Indicators and Asia Karton Packaging • Capacity utilization: 1st HY 04: 97%; 1st HY 03: 88% Graphia • Ongoing price pressure • Recovered paper price o
Slide 13: MM-Karton: 1st Half-year 2004
MM-Karton: 1st Half-year 2004 Group in millions of EUR, US GAAP HY 1 / 2004 HY 1 / 2003 +/- Indicators Sales 399.4 385.4 +3.6% Karton Packaging Operating profit 41.8 43.7 -4.3% Graphia Operating margin 10.5% 11.3% Tonnage produced (in thousands of tons) 790 716 +10.3% Page 13
Slide 14: MM-Karton – Quarters
MM-Karton – Quarters Group 16% Indicators 200 C Karton 14% Packaging 160 12% Graphia 10% 120 8% 80 6% 4% 40 2% 0 0% I/02 II/02 III/02 IV/02 I/03 II/03 III/03 IV/03 I/04 II/04 in millions of EUR Sales Operating margin % Page 14
Slide 15: Cartonboard Sold
Cartonboard Sold 1.600.000 Group 1.400.000 Indicators 22% 20% Karton 1.200.000 15% 19% 17% Packaging 1.000.000 13% 17% + 9.8% Graphia 800.000 25% 23% 24% 600.000 20% 400.000 200.000 0 03 04 95 96 97 98 99 00 01 02 03 / / 19 19 19 19 19 20 20 20 20 Y1 Y1 H H Europe Rest of World Page 15
Slide 16: Recovered Paper Price
Recovered Paper Price Mixed grade in EUR / t 140 Group 120 Indicators Karton 100 Packaging Graphia 80 60 40 20 0 0 1 2 3 4 00 01 02 03 04 0 1 2 3 4 0 1 2 3 l0 l0 l0 l0 l0 r0 r0 r0 r0 r0 .0 .0 .0 .0 n. n. n. n. n ct ct ct ct Ju Ju Ju Ju Ju Ap Ap Ap Ap Ap Ja Ja Ja Ja Ja O O O O Source: EUWID Page 16
Slide 17: Mayr-Melnhof PACKAGING
Mayr-Melnhof PACKAGING Page 17
Slide 18: MM-Packaging: 1st Half-year 2004
MM-Packaging: 1st Half-year 2004 • MMP successfully held its ground despite strong Group competition Indicators Karton Packaging • Specialization on specific market segments and customers Graphia • Focused cost saving programs • We follow our customers - 4 Acquisitions in Western and Eastern Europe
Slide 19: MM-Packaging: 1st Half-year 2004
MM-Packaging: 1st Half-year 2004 Group In millions of EUR, US GAAP HY 1 / 2004 HY 1 / 2003 +/- Indicators Sales 223.9 200.2 +11.8% Karton Packaging Operating profit 16.1 12.4 +29.8% Graphia Operating margin 7.2% 6.2% Tonnage processed (in thousands of tons) 171 153 +11.8% Page 19
Slide 20: MM-Packaging – Quarters
MM-Packaging – Quarters 120 8% Group Indicators 100 Karton 6% Packaging Graphia 80 60 4% 40 2% 20 0 0% I/03 II/03 III/03 IV/03 I/04 II/04 in millions of EUR Sales Operating margin % Page 20
Slide 21: MM-Packaging Acquisitions in the 1st Half-year 2004
MM-Packaging Acquisitions in the 1st Half-year 2004 • GERMANY Group Increase of the interest in C.P. Schmid, Kaiserslautern, from 50% to 75%, Indicators (1/04) Karton Packaging • SPAIN Graphia Takeover of the second largest Spanish folding carton producer from Alcan Packaging, Valencia (5/04) • POLA
Slide 22: Mayr-Melnhof GRAPHIA
Mayr-Melnhof GRAPHIA Page 22
Slide 23: MM-Graphia: 1st Half-year 2004
MM-Graphia: 1st Half-year 2004 • Consistently strong sales performance Group Indicators • Dynamic growing demand on Eastern and South Eastern Karton Packaging European markets – Already noticeable effect of significant Graphia tobacco tax hikes in Western Europe • Continuous cost saving programs • P
Slide 24: MM-Graphia: 1st Half-year 2004
MM-Graphia: 1st Half-year 2004 Group In millions of EUR, US GAAP HY 1 / 2004 HY 1 / 2003 +/- Indicators Sales 143.0 121.9 +17.3% Karton Packaging Operating profit 18.0 14.4 +25.0% Graphia Operating margin 12.6% 11.8% Tonnage processed (in thousands of tons) 48 45 +6.7% Page 24
Slide 25: MM-Graphia – Quarters
MM-Graphia – Quarters 80 16% Group Indicators 14% Karton 60 12% Packaging Graphia 10% 40 8% 6% 20 4% 2% 0 0% I/03 II/03 III/03 IV/03 I/04 II/04 in millions of EUR Sales Operating margin % Page 25
Slide 26: Outlook
Outlook • Order intake remained at high level in all Divisions at the Group beginning of the third quarter of 2004 Indicators Karton • Demand still lacks impulses from the private consumer Packaging sector on the main market of Western Europe Graphia • Competition remains strong – cost reductions an