Mondi Plc · LSE:MNDI
Mondi — Investor Presentation (February 2021)
31 slides from Mondi's investor presentation, February 2021
Slide 1: Corporate investor presentation
Corporate investor presentation February 2021
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: Strong delivery, sustainable growth
Strong delivery, sustainable growth • Enabling delivery of essentials • Leveraging key long-term • Leader in sustainability – • Excellent cash generation trends – leading innovation purpose, strategy, culture • Strong operational • Investing through-the-cycle • Prioritising safety and health perform
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: Our growth focus – packaging
Our growth focus – packaging 6
Slide 7: Strong global presence
Strong global presence Revenue by location 2020 (%) Revenue from customers in South America represented 2% in 2020 7
Slide 8: Strategic framework
Strategic framework continues to be at the centre of our strategy 8
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% 1,366 1,482 1,764 1,658 1,353 1,401 1,363 1,654 1,635 1,485 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Underlying EBITDA Underlyin
Slide 10: Delivering on our strategy
Delivering on our strategy Driving value accretive growth ● Delivering on our 2020 sustainability targets ● Setting our commitments to 2030 Sustainability Leveraging key E-commerce long-term trends Enhancing customer brand value Investing through-the-cycle organic cost environmental growth advantage
Slide 11: Delivering on our 2020 sustainability commitments
Delivering on our 2020 sustainability commitments Some key examples: TRCR (per 200,000 hours worked) tonne per tonne of saleable production kg per tonne of saleable production reduction vs 2015 reduction vs 2014 reduction vs 2015 reduction vs 2005 reduction vs 2004 reduction vs 2005 2004/2005 were t
Slide 12: Mondi recognised as a leader in sustainability
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 contribution to the UN SDGs 12
Slide 13: Sustainability targets to 2030
Sustainability targets to 2030 13 For more details please visit: www.mondigroup.com/MAP2030
Slide 14: Sustainable packaging solutions
Sustainable packaging solutions Mondi’s customer-centric approach to sustainable packaging 14
Slide 15: A unique platform to deliver
A unique platform to deliver High Renewable Low High Recyclable Low Low Barrier functionality High Moisture Grease Mineral Oil Gas Added Barrier Aluminium Paper barriers Material films foil 15
Slide 16: A few examples
– a few examples: A fully corrugated alternative to plastic fruit A 100% renewable, recyclable and highly punnets and plastic foil wrapping protective alternative to plastic mailers that use bubble foil protective padding A 100% recyclable paper rice bag that replaces A fully recyclable, mono-materi
Slide 17: Replacing plastic with paper e-commerce and shopping bags
Replacing plastic with paper e-commerce and shopping bags Machine conversion at Štětí ● Strong customer demand for paper-based solutions supported by legislation to eliminate plastic waste ● Sole European supplier offering full portfolio of paper for shopping bags ● Up to 130ktpa1 integrated capacit
Slide 18: Unique offering unlocking opportunities
Unique offering unlocking opportunities Recyclable functional barrier paper solutions Barrier coating Paper Base papers Barrier coatings Printing and converting (speciality kraft paper) (functional paper and films1) (paper bags and consumer flexibles) Leveraging paper, coating and converting know-ho
Slide 19: Innovation supporting customers' sustainability goals
Innovation supporting customers’ sustainability goals PerFORMing – alternative to plastic trays Growing our customer reach 14 customers at start of 2021 with an additional 18 trials ongoing Launched removable film solution and extended offering to cold meats - 12 customers 1st customer supplied for
Slide 20: Offering full range of sustainable e-commerce solutions
Offering full range of sustainable e-commerce solutions European market e-commerce packaging growth € billion Corrugated and flexible paper-based solutions +8% CAGR 10 +20% 9 in 2020 8 7 6 5 4 3 2 1 0 2019 2020 2023E Source: Statista 20
Slide 21: Enhancing customer brand value and shelf-appeal
Enhancing customer brand value and shelf-appeal Ružomberok kraft top white machine White virgin top layer ● Excellent printability ● Fantastic strength Brown recycled layer ● Cost advantages Project details Excellent for shelf-ready packaging, ● 300,000 tonne integrated kraft top white machine POS d
Slide 22: Cost advantaged operations combined with relentless focus on performance
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 ● Core organisation competence ● Ongoing process to set profit improvement ini
Slide 23: 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 24: Investing for growth through-the-cycle
Investing for growth through-the-cycle ● €1.4 billion spent on commissioned major projects since 2014 o >20% average return1 Strong o >600ktpa of cost-advantaged capacity added track ● Key benefits: record o Enhanced customer offering o Better cost / operational efficiency o Improved environmental f
Slide 25: Our cash flow priorities remain unchanged
Our cash flow priorities remain unchanged Maintain our strong and stable financial position and investment grade credit metrics Grow through selective capital investment opportunities Free cash flow priorities Support payment of dividends to our shareholders Evaluate growth opportunities through M&A
Slide 26: 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 27: 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 28: Strong financial position providing strategic flexibility
Strong financial position providing strategic flexibility Net debt € million (net debt) and ratio (net debt to underlying EBITDA) ● 1.3x net debt to underlying EBITDA 1.3x 1.3x 1.3x ● Investment grade credit ratings reconfirmed (BBB+ / Baa1) 1.0x 1.0x ● Group’s maturity profile extended ● Strong liq
Slide 29: Dividends in line with our policy
Dividends in line with our policy Dividends declared and recommended euro cents per share 76 62 60 57 57 ● Given strong financial position and confidence in the future of the business: 3.0 o Recommended final dividend of 41.00 euro cents per share 2.4 2.4 2.5 ● Dividend policy unchanged: 2.2 o Targe
Slide 30: 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
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