Mondi Plc · LSE:MNDI
Mondi — Corporate Update (November 2010)
16 slides from Mondi's corporate update, Nov 4, 2010
Slide 1: Uncoated Fine Paper and Corrugated Business in context
Uncoated Fine Paper and Corrugated Business in context Peter Oswald Investor and Analyst site visit, Syktyvkar and Świecie 2 – 4 November 2010
Slide 2: Europe & International Division
Europe & International Division Peter J Oswald CEO Franz Hiesinger Franz Tauber Helmut Raunig CFO Technical Director HR Director Christian Peter Machacek Thomas Ott Christian Thomas Kolarik Peter Machacek Peter Orisich Uncoated Fine Corrugated Skilich Schäbinger Containerboard Industrial Bags Consum
Slide 3: An experienced management team in E&I
An experienced management team in E&I CEO* CEO UFP & Containerboard* CFO* Peter Oswald (48) Peter Machacek (58) Franz Hiesinger (45) 18 / 3-7 31 / 3-10 20 / 3-10 CEO Mondi CEO Packaging CFO Mondi Packaging Paper Packaging CEO Corrugated Sales Director Paper Director Mondi Business Mill F
Slide 4: An experienced management team in E&I ctd.
An experienced management team in E&I ctd. CEO Coatings* MD Consumer Bags & Films Thomas Schäbinger (48) Christian Kolarik (42) 13 / 9 10 / 1 Regional Manager MD Korneuburg Western Europe Bag plant Converting Sales and marketing Sales Manager manager Industrial Unilever Bags Technical Direct
Slide 5: EBIT & ROCE development since 2006
EBIT & ROCE development since 2006 Uncoated Fine Paper Corrugated Business 19.7% 120 20% 120 20% EBIT EBIT 17.1% ROCE 99 16.0% ROCE 100 15.2% 100 16% 16% 69 13.8% 12.9% 79 80 12.1% 75 80 11.9% 71 54 10.5% 12% 65 12% 9.4% 48 50 57 60 60 54 8.0% 8.4% 8.3% 7.5% 48 35 8% 8% 6.5% 40 5.8% 40 34 37 12 23 4
Slide 6: Mondi Group product mix
Mondi Group product mix External Revenue 2009* Uncoated Fine Other Paper Coatings 3% 15% 31% 21% Kraft Paper / Bags 30% Corrugated * Excluding Europapier; Coatings includes all specialties Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 5
Slide 7: PPI Award nominations 2010
PPI Award nominations 2010 Mondi has 6 nominations in 2010 Company Awards Uncoated Fine Paper’s Green Range for Promotional Campaign of the Year Mondi Group for Environmental Strategy of the Year Mill Awards Mondi SCP Ruzomberok in Slovakia for Environmental Strategy of the Year Mondi Syktyvkar for
Slide 8: Uncoated Fine Paper
Uncoated Fine Paper Peter Machacek Investor and Analyst site visit, Syktyvkar and Świecie 2 – 4 November 2010
Slide 9: Historical milestones and strategic focus
Historical milestones and strategic focus Improved cost position and refined geographic footprint 2007 Synergies due to new structure, UFP part of E&I division 2010 Completion of the EUR 545m investment in the extension and modernisation of Syktyvkar (EUR 20m = 4% above budget) 2006 2007 2008 2009 2
Slide 10: Leading position in UFP in Europe
Leading position in UFP in Europe Uncoated fine paper - total Uncoated fine paper - cut size 9.2 mt 4.4 mt Other Mondi Mondi 9% 15% M-real 23% Other 9% 32% Portucel 11% UPM 11% 11% 19% UPM 13% IP 10% M-real 11% Portucel 11% Stora Enso 16% IP Stora Enso Based on 2010 sales estimate; source: EMGE, CEP
Slide 11: Capacity overview
Capacity overview Mill UFP capacity UFP cut size Level of pulp total capacity integration Neusiedler (AT) 380 kt 340 kt 16% Ruzomberok (SK) 550 kt 360 kt 125% Syktyvkar (RU) 480 kt 330 kt 110% Total 1 410 kt 1 030 kt Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 10
Slide 12: Growth rates uncoated fine paper
Growth rates uncoated fine paper UFP demand growth Europe 2007 – 2010 9.2% Europe Central Europe & Russia 4.2% 4.1% 2.1% 0.8% -5.6% -5.7% -7.2% 2007 2008 2009 2010e Source: RISI European Graphic Paper Forecast June 2010; Central Europe: DE, CH, AT, PL, CZ, SK, HU, SL Investor and Analyst site visit,
Slide 13: Reasonable fundamentals in UFP with prices now above pre-crisis levels
Reasonable fundamentals in UFP with prices now above pre-crisis levels European demand shows recovery but still below the pre-crisis levels Expect demand growth to flatten in the short term ongoing increases in Central Eastern Europe offset by no growth/modest declines in Western Europe Net industry
Slide 14: Mondi enjoys benefits in wood costs
Mondi enjoys benefits in wood costs Hardwood pulpwood cost at Mill (EUR/m3sub) 3Q 2009 4Q 2009 53 53 50 50 43 43 44 41 40 41 39 40 40 39 38 39 38 37 34 34 29 28 30 28 28 28 26 26 24 24 19 20 RUS WE US Brazil South Uruguay Canada IndonesiaSweden Poland Chile France Finland SlovakiaAustraliaPortugal S
Slide 15: Cost Curve – UFP cut size
Cost Curve – UFP cut size European cost leader EUR/t 2009/IV 1.400 Operating rate 100% 1 USD=0,684 EUR 1 EUR=1,462 USD 1.200 Speciality Delivered 1.000 costs Frankfurt machines 380kt 9 800 80% of commodity 7 8 6 capacity 5 4 600 3 1. Syktyvkar PM 14 2 2. Syktyvkar PM 11 1 3. Ruzomberok PM 18 4. Ruzo
Slide 16: Mondi as the uncoated fine paper business of choice
Mondi as the uncoated fine paper business of choice Pros Leading market position Low cost asset base in Russia and SCP PM18 Proximity to customers in Central Europe Cons Structural decline of uncoated woodfree in Western Europe No pulp backward integration in Neusiedler Investor and Analyst site vis