Mondi Plc · LSE:MNDI
Mondi — Investor Presentation (February 2020)
32 slides from Mondi's investor presentation, February 2020
Slide 1: Corporate investor presentation
Corporate investor presentation February 2020
Slide 2: Forward-looking statements
Forward-looking statementsstatements Mondi: Forward-looking disclaimer 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,
Slide 3: A unique platform to deliver sustainable growth
A unique platform to deliver sustainable growth ● Mondi recognised as a leader in sustainability with a unique platform to deliver customer-centric solutions ● Cost-advantaged operations combined with our relentless focus on driving performance ● Focused investments that deliver sustainable returns
Slide 4: Mondi at a glance
Mondi at a glance Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper Segment €2,014m €2,708m €979m €1,758m revenue1 Underlying €583 million €543 million €122 million €444 million EBITDA ROCE 24.9% 15.7% 13.8% 25.1% Products End Uses ● FMCG and consumer products ● FMCG p
Slide 5: Leading market positions
Leading market positions Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper Kraft paper Uncoated (global) fine paper Containerboard (Europe) Commerical (emerging Europe) release liner (Europe) Uncoated fine paper Virgin containerboard (Europe) Paper bags (Europe) Extrus
Slide 6: Our global footprint
Our global footprint Key Corrugated Packaging aMil ‘© Converting plant Group offices London .- Vienna = Production sites Austria Belgium Bulgaria China Céte divore CzechRepubic @ Ae Egypt Finland i es eerer Flexible Packaging Mill © Converting plant Germany Hungary iraq aly Jordan Lebanon Malaysia M
Slide 7: Consistent strategy delivering industry leading returns
Consistent strategy delivering industry leading returns Underlying EBITDA and ROCE Basic underlying earnings per share € million and % € cents per share 23.6% 20.5% 20.3% 19.3% 19.8% 1,325 1,366 1,482 1,764 1,658 133.7 137.8 148.9 189.1 171.1 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Underly
Slide 8: Strong cash flow generation
Strong cash flow generation Cash flow generation1 € million 1,039 1,061 972 1,226 1,215 2015 2016 2017 2018 2019 €5.5 billion cash generated over the last 5 years (2015 – 2019) 8 1 Cash flow generation based on net cash generated before capital expenditure, acquisitions and disposals of businesses,
Slide 9: Strategic framework driving an industry leading performance
Strategic framework driving an industry leading performance 9
Slide 10: Our growth focus – packaging
Our growth focus – packaging Corrugated Flexible Engineered Uncoated Packaging Packaging Materials Fine Paper 10
Slide 11: Growing responsibly
Growing responsibly: Sustainable products Climate People • Our approach • Reduced specific CO2e emissions • 24-hour safety mind-set Paper where possible, plastic when useful by 39% since 2004 and 15.5% • Diversity and Inclusion initiatives: since 2014 o 30% women employed across • Actively developin
Slide 12: Mondi recognised as a leader in sustainability
Mondi recognised as a leader in sustainability Making a real contribution External recognition to the UN SDGs Advanced Reporter A- score for Climate Change ESG Rating AAA Joined The CEO Water and Sustainable Forestry Mandate in 2015 A score for Water Security Low risk rating Sustainability Yearbook
Slide 13: Our Growing Responsibly model: An integrated approach to sustainable development
Our Growing Responsibly model: An integrated approach to sustainable development 16 public commitments to be achieved by 2020 10. Solutions that create value for our customers 1 1. Employee and contractor safety and health ● Encourage sustainable responsibly procured products ● Avoid work-related fa
Slide 14: 2019 sustainable development highlights
2019 sustainable development highlights 14
Slide 15: Cost advantaged operations combined with our relentless focus on driving 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 16: Integrated value chain (2019)
Integrated value chain (2019) Pulp3 0.2 mt Mondi managed forests Internally procured wood1 Pulp Annual allowable cut 4 million m3 4.4 mt Externally procured wood Containerboard3 8 million m3 14 million m3 1.6 mt Corrugated solutions 1.7 bn m2 Paper for Containerboard 2.5 mt Box plant recycling 1.3 m
Slide 17: 2014 – 2018 investments delivering strong returns
2014 – 2018 investments delivering strong returns Štětí bleached kraft paper machine Świecie paper machine Ružomberok recovery Świecie recovery boiler, rebuild Ružomberok kraft top white boiler biomass boiler machine and pulp mill upgrade Richards Bay woodyard Syktyvkar pulp dryer Other smaller inve
Slide 18: Capital investment projects on track and delivering growth
Capital investment projects on track and delivering growth Capital expenditure € million ● Strong contribution: o €75 million in the past 3 years, including €30 million in 2019 187% o €40 million expected in 2020 174% 173% ● Focused capital investment project pipeline securing 147% 132% future organ
Slide 19: Strong major capital expenditure project pipeline – key projects
Strong major capital expenditure project pipeline – key projects Ružomberok mill Štětí machine conversion Syktyvkar mill ● New 300,000 tonne kraft top white ● Conversion of a containerboard ● Investing to debottleneck production machine with expected start-up machine at Štětí to produce up to and av
Slide 20: Mondi’s approach to sustainable packaging solutions
Mondi’s approach to sustainable packaging solutions …less sustainable products with …the volume of raw material …packaging by developing solutions following our principle used through design, solutions that are designed paper where possible, operational efficiency and for recycling plastic when usef
Slide 21: 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 21
Slide 22: Speed and extent of change will be influenced by many parties
Speed and extent of change will be influenced by many parties Consumers Waste collection Willingness to pay more? Legislation and international Technology? agreements Business model? Taxation? Regulation? Mondi actively engaging with key stakeholders to collaboratively Investors FMCGs and retailers
Slide 23: Paper-based alternatives
– Paper-based alternatives A strong water- Replacing plastic repellent paper bags with bag for fresh fruit sustainable and packaging and efficient paper organic waste alternatives collection Formable paper- Paper based based food tray that packaging for reduces CO2 pasta, with the emissions and is o
Slide 24: Corrugated solutions alternatives
– Corrugated solutions alternatives A innovative and A innovative and sustainable corrugated sustainable corrugated solution replacing: solution replacing: polystyrene, plastic and small plastic or polystyrene blister foil in protective trays and/or plastic foil packaging components Innovative and s
Slide 25: Strong cash generation and balance sheet
Strong cash generation and balance sheet Maintain our strong and stable financial position and investment grade credit metrics • 1.3x net debt / underlying EBITDA • Solid investment grade credit ratings Grow through selective capital investment opportunities • Strong track record and pipeline in pro
Slide 26: Continued growth in shareholder returns
Continued growth in shareholder returns Dividends declared and recommended euro cents per share Total ordinary dividend ● Dividend policy: to offer shareholders long-term ordinary CAGR: 12% dividend growth within a targeted dividend cover range 83 76 of two to three times on average over the busines
Slide 27: Appendix: Sustainable packaging solutions
Appendix Sustainable packaging solutions 27
Slide 28: Formable paper-based food tray solution
Formable paper-based food tray solution PerFORMing ● Conventional thermoformable trays are made of non-recyclable PET/PE ● A natural, brown or white, formable coated paper solution for food applications such as portion packs and trays ● Collaboration across Mondi’s paper, technical films and coating
Slide 29: Increasing recycled plastic in packaging
Increasing recycled plastic in packaging Film with recycled content ● Developing packaging solutions with increased recycled plastic content to help meet our and our customers’ sustainability pledges ● Consistent quality, product safety and legal compliance compared to existing solution ● A film wit
Slide 30: A premium reclosable and 100% recyclable solution
A premium reclosable and 100% recyclable solution FlexiBag ● Develop a more sustainable flexible plastic packaging bag without sacrificing convenience and shelf-attractiveness ● A premium reclosable and 100% recyclable side gusset plastic bag with a linear and curve tear with or without perforation
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: Slide 32