Mondi Plc · LSE:MNDI
Mondi — Investor Presentation (November 2021)
38 slides from Mondi's investor presentation, Nov 10, 2021
Slide 1: Investor presentation
Investor presentation 10 November 2021 ir@mondigroup.com
Slide 2: 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
Slide 3: Key takeaways
Key takeaways ● A leading global packaging and paper company ● Innovative and sustainable packaging and paper solutions o Leveraging global industry trends ● Integrated across the value chain leveraging our cost advantaged asset base ● Continuous focus on driving performance ● Clear and consistent s
Slide 4: Mondi at a glance (2020)
Mondi at a glance (2020) Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper Segment €1,879m €2,667m €801m €1,485m revenue1 (27%) (39%) (12%) (22%) Underlying €518 million €519 million €80 million €266 million EBITDA ROCE 22.5% 14.5% 7.5% 11.3% Products End uses Consumer
Slide 5: Leading market positions
Leading market positions virgin containerboard kraft paper producer commercial release liner uncoated fine paper supplier producer in Europe globally producer in Europe in Europe (including Russia) containerboard producer paper bag producer in extrusion coatings uncoated fine paper in emerging Europ
Slide 6: Strong global presence
Strong global presence Revenue by location 2020 (%) Revenue from customers in South America represented 2% in 2020 6
Slide 7: Integrated value chain (2020)
Integrated value chain (2020) Pulp3 0.5 mt Mondi managed forests Internally procured wood1 Pulp Annual allowable cut 4 million m3 4.5 mt Externally procured wood Containerboard3 9 million m3 14 million m3 1.6 mt Corrugated solutions 1.8 bn m2 Paper for Containerboard 2.5 mt Box plants recycling 1.3
Slide 8: Investing for growth in structurally attractive packaging markets
Investing for growth in structurally attractive packaging markets Corrugated Flexible Net investment1 Underlying EBITDA2 Packaging Packaging 5-year history (H2 2016 – H1 2021) H1 2021 €0.2bn 21% 37% €0.9bn 5% €0.8bn Engineered Uncoated Materials Fine Paper 37% Corrugated Flexible Engineered Uncoated
Slide 9: Consistent strategy driving strong performance
Consistent strategy driving strong performance Underlying EBITDA and margin Cash generated from operations € million and % € million 23.6% 22.8% 20.5% 20.9% 20.3% 19.5% 1,366 1,482 1,764 1,658 1,353 709 1,401 1,363 1,654 1,635 1,485 552 2016 2017 2018 2019 2020 H1 2021 2016 2017 2018 2019 2020 H1 20
Slide 10: Strategic framework
Strategic framework We drive value accretive growth, SUSTAINABLY wha 10 ¢moneli
Slide 11: Sustainability targets to 2030
Driving value accretive growth sustainably Sustainability targets to 2030 Innovative packaging and paper An empowered and inclusive team Climate resilience through our solutions that keep materials in of colleagues who contribute to a forests and operations for the circulation and prevent waste bett
Slide 12: Building on a successful track record
Driving value accretive growth sustainably Building on a successful track record 2020 performance – some key examples: TRCR (per 200,000 hours worked) tonne per tonne of saleable production kg per tonne of saleable production responsibly reduction vs 2015 reduction vs 2014 sourced fibre reduction vs
Slide 13: Mondi recognised as a leader in sustainability
Driving value accretive growth sustainably Mondi recognised as a leader in sustainability A few external benchmark examples: One of only 10 Top quartile Top 1% companies globally with a in the Paper & Forest in our sector for 5 CDP Triple A rating Products industry consecutive years Making a real co
Slide 14: Cost advantaged operations combined with our relentless focus on driving performance
Drive performance along the value chain; Invest in assets with cost advantage Cost advantaged operations combined with our relentless focus on driving performance Cost advantaged asset base Focus on driving performance Mondi capacity by quartile of relevant industry cost curve (%) Ongoing processes
Slide 15: Leveraging cost-advantaged pulp and paper production footprint
Invest in assets with cost advantage Leveraging cost-advantaged pulp and paper production footprint 8% increased capacity Lower production when in full operation costs Improved Enhanced environmental efficiencies footprint Current projects – more than €750 million 15
Slide 16: Further detail on current projects totalling more than €750 million
Invest in assets with cost advantage Further detail on current projects totalling more than €750 million Ramping up new Ramping up speciality kraft Debottlenecking Modernisation of Kuopio debottlenecking containerboard machine at paper production in Štětí of Syktyvkar Richards Bay approved (55ktpa)
Slide 17: Investing in converting to support growth in structurally attractive markets
Invest in assets with cost advantage Investing in converting to support growth in structurally attractive markets Mondi’s sales volume CAGR LTM to June 2021 vs LTM June 2016 5-year CAGR ● Enhancing our product and service offering +7% o eCommerce +3% o Sustainability +2% o Enhancing customer brand v
Slide 18: UFP: Strongly positioned
Invest in assets with cost advantage UFP: Strongly positioned Cost-advantaged Strong cash generation Leading player through-the-cycle asset base ● Leading market positions 2/3rds of portfolio in lowest Underlying EBITDA / capital expenditure industry cost quartiles o Europe o CIS o Southern Africa ~
Slide 19: Mondi’s customer-centric approach to sustainable packaging
Partner with customers for innovation Mondi’s customer-centric approach to sustainable packaging 19
Slide 20: A unique platform to deliver
Partner with customers for innovation A unique platform to deliver High Renewable Low High Recyclable Low Low Barrier functionality High 2 Moisture Grease Mineral Oil Gas Added Barrier Aluminium Paper barriers Material films foil 20
Slide 21: Alternative to plastic pallet wrapping
Partner with customers for innovation Alternative to plastic pallet wrapping Advantage StretchWrap ● Innovative paper-based pallet wrapping o Responsibly sourced renewable fibres o Recyclable ● Developed in cooperation with machinery supplier (ACMI) and customers ● Potential to replace more than 10,
Slide 22: eCommerce paper-based solution
Partner with customers for innovation eCommerce paper-based solution MailerBAG ● Innovative paper-based eCommerce mailer o Complementing corrugated packaging portfolio o Fully recyclable o Easy to open and convenient return features ● Investing to upscale production to 350 million bags per annum to
Slide 23: Eliminating polystyrene, optimising transport
Partner with customers for innovation Eliminating polystyrene, optimising transport MonoCorr Box ● 100% corrugated, 100% recyclable ● Solution for global shipping of Warmhaus boilers ● Eliminates polystyrene inserts ● Optimises transport o Corrugated inserts use 90% less space when sent to customer
Slide 24: Paper-based packets for Unilever’s Colman’s Meal Makers
Partner with customers for innovation Paper-based packets for Unilever’s Colman’s Meal Makers Close collaboration with blue chip customer Functional paper solution: 85% paper with ultra thin functional plastic layer Eliminates aluminium and reduces plastic content New recyclable solution replacing p
Slide 25: Fit-for-purpose recyclable flexible plastic packaging
Partner with customers for innovation Fit-for-purpose recyclable flexible plastic packaging Primary packaging weight Based on packaging 400 grams of pasta sauce1 Pouch 10 grams BarrierPack EnvelopeForm 54 Metal can grams ● Protect and preserve products 216 ● Extend shelf-life Glass jar grams ● Preve
Slide 26: Our cash flow priorities remain unchanged
Our cash flow priorities remain unchanged Maintain our strong and stable financial position and investment grade credit metrics Free cash Grow through selective capital investment opportunities flow priorities Support payment of dividends to our shareholders Evaluate growth opportunities through M&A
Slide 27: Strong cash generation through the cycle
Strong cash generation through the cycle Cash flow generation € million 648 538 705 516 648 549 715 796 1,039 1,061 972 1,226 1,215 1,244 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 More than €11 billion generated since listing Cash flow generation based on net cash generat
Slide 28: Investing in our business and distributions to shareholders
Investing in our business and distributions to shareholders Cash flow generation since listing € billion Strong cash Investing in Taking Divesting Returning generation our cost advantage of non-core and capital to our through the advantaged opportunities underperforming shareholders cycle asset base
Slide 29: Strong financial position
Strong financial position Net debt € million (net debt) and ratio (net debt to underlying EBITDA) ● Signed €750 million revolving credit facility 1.5x o Aligning financing with MAP2030 1.3x 1.3x 1.3x 1.4x o Extending debt maturity profile ● Strong liquidity of around €1 billion ● Investment grade cr
Slide 30: Dividends in line with our policy
Dividends in line with our policy Dividends declared euro cents per share 76 62 60 57 57 3.0x 2.5x 2.4x 2.4x 2.2x 19.00 20.00 2016 2017¹ 2018 2019 2020 2021 Interim dividend Final dividend Dividend cover 1. Excludes the 2017 special dividend of 100 euro cents per share Dividend policy unchanged Targ
Slide 31: Sources and definitions
Sources and definitions Mondi region definitions Europe – Europe including Russia and Turkey Emerging Europe – Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Macedonia, Malta, Moldova, Montenegro
Slide 32: Appendix: H1 2021 results
Appendix H1 2021 results
Slide 33: Delivering strongly – positioned for sustainable growth
Delivering strongly – positioned for sustainable growth H1 2021 highlights ● Strong sales volumes and rising prices ● Effective cost control ● Results up sequentially ● Completed acquisition of Olmuksan ● Good progress made on capital investment projects ● Recently approved Corrugated Packaging expa
Slide 34: Strong performance and momentum: Corrugated Packaging
Strong performance and momentum Corrugated Packaging Underlying EBITDA and margin € million and % ● Very strong demand – Corrugated Solutions volumes up 15%. Benefiting from: 27.6% 27.6% o eCommerce, consumer goods growth and recovery 24.2% in industrial o Innovation, strong customer offering and on
Slide 35: Leveraging unique platform, growing with customers: Flexible Packaging
Leveraging unique platform, growing with customers Flexible Packaging Underlying EBITDA and margin € million and % ● Strong volume growth 20.3% 19.6% o Paper bags volumes up 11% – growth in all 18.5% regions o Consumer flexibles benefited from improved product mix and innovations ● Strong pricing mo
Slide 36: Demand recovery, good progress on portfolio restructuring: Engineered Materials
Demand recovery, Engineered good progress on portfolio restructuring Materials Underlying EBITDA and margin € million and % ● Strong recovery in industrial and specialised end-uses for functional papers and films 10.6% 9.3% 8.9% ● Good progress made in personal care components in response to declini
Slide 37: Improved trading, gaining market share: Uncoated Fine Paper
Improved trading, gaining market share Uncoated Fine Paper Underlying EBITDA and margin € million and % ● Higher uncoated fine paper volumes, good order books 21.2% 18.4% ● Market share gains across key regions 14.3% ● UFP price increases implemented in Q2 and early Q3 ● Significantly higher pulp pr
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