Mondi Plc · LSE:MNDI

Mondi — Investor Presentation (August 2017)

21 slides from Mondi's investor presentation, Aug 29, 2017

  1. Slide 1: Mondi

    Mondi 29 August 2017 Copyright © PSG

  2. Slide 2: Contents

    Contents 1. Recommendation 2. Nature of business 3. Financial review 4. Divisions 5. Company guidance 6. Portfolio Guidance 2 Copyright © PSG

  3. Slide 3: 01 Recommendation

    01 Recommendation 3 Copyright © PSG

  4. Slide 4: Recommended exposure – 2.18%

    Recommended exposure – 2.18% • High-quality company with an impressive track record • Boasts a sustainably high ROE • Stable operating margins • Consistently strong cash generation • Earnings are cyclical and highly sensitive to foreign exchange movements, prices, and input costs • Trading on a forw

  5. Slide 5: 02 Nature of business

    02 Nature of business 5 Copyright © PSG

  6. Slide 6: Nature of business

    Nature of business Mondi is an international packaging and paper Group, employing around 25,400 people across more than 30 countries. The group’s key operations are located in central Europe, Russia, North America and South Africa. Mondi is integrated across the packaging and paper value chain - fro

  7. Slide 7: 03 Financial review

    03 Financial review 7 Copyright © PSG

  8. Slide 8: Financial review

    Financial review • Revenue was up 8% to €3.6bn - On a like for like basis revenue was up 4% • Gross margin was maintained at 44% • Operating profit before depreciation increased 4% to €690m. • Depreciation ticked up 15% to €213m. • Operating profit decreased 1% to €477m. • EBIT was 4% weaker • Net i

  9. Slide 9: Financial review

    Financial review • Headline earnings per share declined 3% to 72.6 cents • Interim dividend declared increased 2% to 19.1 cents • Cash generation remains stable The results are discussed on a six-month basis unless stated otherwise 2017 Q2 results are compared to 2016 Q2 results 9 Copyright © PSG

  10. Slide 10: 04 Divisions

    04 Divisions 10 Copyright © PSG

  11. Slide 11: Divisions

    Divisions • Segmental overview: Operating Operating Revenue Revenue Profit Profit 11 Copyright © PSG

  12. Slide 12: Packaging Paper

    Packaging Paper (contributed 28% to revenue and 40% to operating profit) • Revenue increased 7% to €1.1bn • Operating profit increased 8% to €207m. • Operating margin improved to 18.6% (2016: 18.4%). Flexible packaging, bags and pouches The results are discussed on a six-month basis unless stated ot

  13. Slide 13: Fibre Packaging

    Fibre Packaging (contributed 26% to revenue and 12% to operating profit) • Revenue increased 7% to €1.0bn • Operating profit increased 2% to €60m • Operating margin decreased to 5.8% (2016: 6.1%). Shelf ready packaging Source: Mondi Group The results are discussed on a six-month basis unless stated

  14. Slide 14: Consumer Packaging

    Consumer Packaging (contributed 21% to revenue and 12% to operating profit) • Revenue increased 10% to €839m • Operating profit decreased 2% to €63m • Operating margin decreased to 7.5% (2016: 8.4%). The results are discussed on a six-month basis unless stated otherwise Paper-based consumer bags and

  15. Slide 15: Uncoated Fine Paper

    Uncoated Fine Paper (contributed 17% to revenue and 26% to operating profit) • Revenue increased 9% to €679m • Operating profit increased 2% to €135m • Operating margin decreased to 19.9% (2016: 21.3%). The results are discussed on a six-month basis unless stated otherwise 2017 Q2 results are compar

  16. Slide 16: South African Division

    South African Division (contributed 8% to revenue and 11% to operating profit) • Revenue increased 16% to €337m • Operating profit decreased 44% to €55m • Operating margin decreased to 16.3% (2016: 33.8%). The results are discussed on a six-month basis unless stated otherwise Mondi Packaging South A

  17. Slide 17: 05 Company guidance

    05 Company guidance 17 Copyright © PSG

  18. Slide 18: Company guidance

    Company guidance • Management has a positive outlook citing positive pricing • Planned maintenance shuts are expected • Low growth in certain value-added product segments is expected to persist • Managements expects synergies and integration benefits to be realised • The tax rate is expected to incr

  19. Slide 19: 06 Portfolio guidance

    06 Portfolio guidance 19 Copyright © PSG

  20. Slide 20: Portfolio Guidance

    Portfolio Guidance • Capped Swix All Share weighting of 0.68% Value • We recommend a neutral position • Recommended exposure up to 2.18% Quality Confidence Good Neutral Poor MNP 20 Copyright © PSG

  21. Slide 21: FAIS Affiliates of the PSG Konsult Group are authorised financial services providers

    FAIS Affiliates of the PSG Konsult Group are authorised financial services providers. Copyright © PSG

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