Mondi Plc · LSE:MNDI
Mondi — H1 2024 Earnings Presentation
28 slides from Mondi's earnings presentation, Aug 1, 2024
Slide 1: Robust performance; Investing for growth
Robust performance; Investing for growth Results for the six months ended 30 June 2024 1 August 2024
Slide 2: 2024 Half Year Results
2024 Half Year Results Robust performance Continued progress delivering organic growth investments Clear strategy to deliver value accretive growth, sustainably 2
Slide 3: Finance review
Finance review
Slide 4: H1 2024 financial performance
H1 2024 financial performance Cash generated Underlying EBITDA Basic underlying EPS from operations ROCE € million € cents per share € million % (12-month rolling) 680 521 565 67.0 40.8 50.5 554 758 372 19.1 12.8 10.8 H1 2023 H2 2023 H1 2024 H1 2023 H2 2023 H1 2024 H1 2023 H2 2023 H1 2024 30-Jun-23
Slide 5: Robust performance – trading in line with our expectations
Robust performance – trading in line with our expectations Underlying EBITDA development € million 423 (123) 55 (391) (37) (42) 680 565 Sales Sales Other Forestry Currency H1 2023 Input H1 2024 volumes prices Costs fair value and other costs (net) gain 5
Slide 6: Strong balance sheet supporting through-cycle investment
Strong balance sheet supporting through-cycle investment Movement in net debt € million 0.3x 1.0x 1.5x Net debt to Net debt to Net debt to underlying EBITDA1 underlying EBITDA1 underlying EBITDA1 (419) (1,188) (1,603) (769) 565 (160) (428) (183) (209) Net debt at Special Pro-forma Underlying Working
Slide 7: Well positioned for the future
Well positioned for the future ● H1 2024 financial performance in line with our expectations ● Sequentially improved performance – continued benefit from price increases into H2 2024 ● Strong balance sheet providing strategic flexibility ● Consistent delivery of our capital allocation strategy Stron
Slide 8: Business unit review
Business unit review
Slide 9: Corrugated Packaging: Improving market demand and paper price increases
Corrugated Packaging Improving market demand and paper price increases Underlying EBITDA and margin € million and % • Containerboard: Selling price increases achieved in the period • H1 2024 average prices below H1 2023 and at similar levels to H2 2023 average prices 15.8% • Corrugated Solutions: St
Slide 10: Flexible Packaging: Focus on sustainable solutions drives demand
Flexible Packaging Focus on sustainable solutions drives demand Underlying EBITDA and margin € million and % • Flexible Packaging: Sales volume increase driven by improvements in market demand and continued focus on innovation • Kraft Paper: Selling price increases achieved in the period 16.6% 16.3%
Slide 11: Uncoated Fine Paper: Strong customer relationships
Uncoated Fine Paper Strong customer relationships Underlying EBITDA and margin € million and % • Higher sales volumes when compared to H1 2023 • Selling price increases implemented at the start and during the period 24.3% 24.8% • Average H1 2024 prices remaining below H1 2023 average levels 20.1% •
Slide 12: Delivering our strategy
gM ICU Bin 100% Papick SY Jk SUIS 100% PAPC; DELIVERING OUR STRATEGY
Slide 13: Leading positions in our chosen packaging and paper markets
Leading positions in our chosen packaging and paper markets Corrugated Flexible Uncoated Packaging Packaging Fine Paper #1 virgin containerboard producer in Europe #1 kraft paper producer globally #2 uncoated fine paper producer in Europe paper bags producer in Europe and a global #1 containerboard
Slide 14: A well invested global packaging platform
A well invested global packaging platform Flexible Packaging Corrugated Packaging 6 mills, 67 converting plants 6 mills, 18 converting plants Production sites per business unit Corrugated Packaging Mill (6) Converting plant (18) Flexible Packaging Mill (6) Converting plant (67) Uncoated Fine Paper M
Slide 15: Leveraging our unique platform to better serve our customers’ needs
Leveraging our unique platform to better serve our customers’ needs Produced with Produced with corrugated Produced with containerboard and kraft paper kraft paper Collaboration between Corrugated Corrugated Packaging Flexible Packaging Packaging and Flexible Packaging 15
Slide 16: A clear strategy to deliver value accretive growth, sustainably
A clear strategy to deliver value accretive growth, sustainably • Extend market leadership and scale in key packaging markets • Grow global platform in Flexible Packaging • Grow Corrugated Packaging in Europe and adjacencies • Optimise market leading positions in Uncoated Fine Paper • Integrated val
Slide 17: Disciplined capital allocation strategy
Disciplined capital allocation strategy Growing through selective organic capital investment opportunities Free cash flow Supporting payment of ordinary dividends to our shareholders priorities Evaluating inorganic growth opportunities through M&A and/or increased shareholder distributions While mai
Slide 18: We have delivered strong value accretion balancing investing for growth and distributing returns
We have delivered strong value accretion balancing investing for growth and distributing returns Cash generated from operations over the last 10 years1 € billion Strong cash Investing in Taking Divesting Returning Change in net generation our cost advantage of non-core and capital to our debt and ot
Slide 19: Investing through cycle for value accretive growth
Investing through cycle for value accretive growth Expected to deliver through cycle mid-teen-returns when fully operational Corrugated Packaging Flexible packaging Pulp and paper Pulp and paper mills mills €0.4 bn €0.4 bn €1.2 bn €0.2 bn €0.2 bn Converting Converting network network 80% of investme
Slide 20: Our strategy in action
Our strategy in action warsaw, Poland Štětí, Czech Republic Simet, Poland 20
Slide 21: Why invest in Mondi
Why invest in Mondi • A market leader in sustainable packaging and paper • Broad product range drives innovation and strengthens long-term customer relationships • Structurally growing markets underpinned by increasing demand for eCommerce and sustainable packaging • Competitive advantage and resili
Slide 22: Appendices
Appendices
Slide 23: Mondi at a glance (H1 2024)
Mondi at a glance (H1 2024) Products Segment Underlying ROCE revenue EBITDA (12-month & margin rolling) Corrugated €143m €1,103m 5.2% Packaging 13.0% Flexible €276m €2,024m 12.1% Packaging 13.6% Uncoated Fine €166m €669m 20.1% Paper 24.8% 23
Slide 24: Integrated value chain (2023)
Integrated value chain (2023) Containerboard3 Corrugated Packaging 1.3 mt Wood Containerboard 12.8 million m3 2.3 mt Corrugated solutions 1.9 billion m2 Box plants Paper for recycling Pulp 1.3 million tonnes (mt) 3.2 mt Kraft paper3 Consumer Flexible Packaging 0.4 mt flexibles 1.8 billion m2 Kraft p
Slide 25: Investment pipeline: Corrugated Packaging
Investment pipeline: Corrugated Packaging Kuopio Świecie Duino Corrugated Solutions (Finland) (Poland) (Italy) network • Investment of €125 million for • Investment of €95 million for • Investing €200 million to convert • Investments across our central and 55,000 tonnes of additional 55,000 tonnes a
Slide 26: Investment pipeline: Flexible Packaging
Investment pipeline: Flexible Packaging Štětí Expanding leading global Growing consumer offering (Czech Republic) paper bags network with innovative solutions • Investing €400 million in a new • Investments across our global paper • Consolidating our leading position in 210,000 tonne kraft paper mac
Slide 27: 2024 Technical guidance
2024 Technical guidance 2024 Unchanged Capital expenditure €800 – 900 million Unchanged Depreciation and amortisation €425 – 450 million Unchanged Working capital as a % of revenue through-cycle 12 – 14% Revised Effective tax rate 22 – 23% Revised Net finance costs ~ €80 million 27
Slide 28: Mondi: Forward-looking statements disclaimer
Mondi: Forward-looking statements disclaimer This document includes forward-looking statements. All statements other than statements of historical facts included herein, including, without limitation, those regarding Mondi’s financial position, business strategy, market growth and developments, expe