Mondi Plc · LSE:MNDI
Mondi — FY2024 Earnings Presentation
31 slides from Mondi's earnings presentation, Feb 20, 2025
Slide 1: Strong platform for growth
Strong platform for growth Results for the twelve months ended 31 December 2024 20 February 2025
Slide 2: Strong platform for growth
Strong platform for growth Structurally growing markets Strong leadership positions Innovative, reliable and sustainable solutions Well invested, integrated asset base Great people Commitment to value creation 22
Slide 3: 2024 Full Year Results
2024 Full Year Results Resilient performance in Delivering on our growth Supporting shareholder line with our expectations strategy returns 3
Slide 4: Finance review
Slide 5: Resilient performance in difficult trading conditions
Resilient performance in difficult trading conditions Underlying Cash generated Basic underlying Ordinary EBITDA from operations ROCE EPS DPS € million € million % (12-month rolling) € cents € cents 1,201 1,049 1,312 970 12.8 9.6 107.8 82.7 70 70 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 5
Slide 6: Volume growth and cost control offsetting price pressures
Volume growth and cost control offsetting price pressures Underlying EBITDA development € million 132 (385) 254 (121) (32) Resilient trading performance 1,201 1,049 2023 Sales Sales Costs Forestry Egyptian pound 2024 volumes prices fair value gain devaluation 6
Slide 7: Strong balance sheet supporting through-cycle investment and shareholder returns
Strong balance sheet supporting through-cycle investment and shareholder returns Movement in net debt € million 0.3x 1.0x 1.7x Net debt to Net debt to Net debt to underlying EBITDA1 underlying EBITDA1 underlying EBITDA1 (419) (1,188) (1,732) 1,049 (108) (933) (769) (240) (312) Net debt at Special Pr
Slide 8: Disciplined capital allocation policy
Disciplined capital allocation policy Growing through selective capital investment opportunities Free cash flow Supporting payment of ordinary dividends to our shareholders priorities Evaluating growth opportunities through M&A and/or increased shareholder distributions While maintaining our strong
Slide 9: 2025 Technical guidance
2025 Technical guidance In October 2024 we reached an agreement to acquire the Western Europe Packaging Assets of Schumacher Packaging with completion expected in H1 2025. All 2025 guidance provided below excludes this acquisition. Capital expenditure €750 – 850 million Depreciation and amortisation
Slide 10: Financial strength to build a sustainable future
Financial strength to build a sustainable future • Demonstrated resilience in difficult trading conditions • Maintained a strong and flexible balance sheet and investment grade credit rating - Supporting through cycle investment to ensure we have capacity in the right markets to serve our customers
Slide 11: Business unit review
Slide 12: Corrugated Packaging: Stronger second half performance
Corrugated Packaging Stronger second half performance Underlying EBITDA € million • Improved underlying EBITDA to €328 million (2023: €310 million) FY 2024 FY 2023 ─ Volumes and average selling prices broadly in line with 2023 €328m €310m ─ Good cost control • Paper price increases achieved resulted
Slide 13: Flexible Packaging: Focus on sustainable solutions drives volume growth
Flexible Packaging Focus on sustainable solutions drives volume growth Underlying EBITDA € million • 2024 underlying EBITDA €558 million (2023: €637 million) ─ Kraft Paper: Higher sales volumes but lower average prices FY 2023 ─ Paper Bags: Sales volumes up 3% €637m ─ Resilient performance in Consum
Slide 14: Uncoated Fine Paper: Market share gains
Uncoated Fine Paper Market share gains Underlying EBITDA € million • 2024 underlying EBITDA of €191 million excluding forestry fair value gain (2023: €161 million) FY 2023 − Higher sales volumes, lower input costs and lower average selling €289m prices FY 2024 − Forestry fair value gain of €7 millio
Slide 15: Delivering our strategy
Slide 16: Our strategy
Our strategy Drive performance Invest in quality assets along the value chain Invest in quality assets to drive growth, Drive performance along the value chain improve competitiveness, and enhance to optimise productivity, enhance sustainability, product quality and efficiency and prevent waste. Our
Slide 17: Boosting competitive advantage along the value chain
Drive performance Boosting competitive advantage along the value chain • Culture of continuous improvement, cost control and portfolio optimisation • Delivering capital investment and annual maintenance projects on time and within budget driving productivity, cost optimisation and sustainability ben
Slide 18: Corrugated Packaging: Leveraging leading positions and vertical integration
Invest in quality Corrugated Packaging: Leveraging leading positions and assets vertical integration in Europe and adjacent markets What we have done: • Expansion of Kuopio (Finland) and Świecie (Poland) • Box plant expansions in Poland • Acquisition of Schumacher’s Western Europe Packaging Assets •
Slide 19: Schumacher: Strengthens Mondi's footprint in Europe
Invest in quality Schumacher: Strengthens Mondi’s footprint in Europe assets with a highly complementary product portfolio • Increases corrugated converting capacity by over 1 billion square metres • Provides integration benefits with Mondi’s containerboard operations • Strong upside through synergi
Slide 20: Duino additional capacity matched by increased internal consumption
Invest in quality Duino additional capacity matched by increased assets internal consumption • On track to start up in H1 2025 Net short position in RCB Production & consumption as Duino and Schumacher ramp up • 420,000 tonne high-quality recycled containerboard (RCB) machine to ramp up over three y
Slide 21: Flexible Packaging: Expanding our global leadership in kraft paper and paper bags
Invest in quality Flexible Packaging: Expanding our global assets leadership in kraft paper and paper bags What we have done: • Completed acquisition of Hinton (Canada) • Started up new sack kraft paper machine in Štětí (Czech Republic) • New extrusion line in Štětí completed Plants Mills 41 Paper B
Slide 22: Supporting customer demand with new Štětí paper machine
Invest in quality Supporting customer demand with new Štětí assets paper machine • New paper machine at Štětí Mondi Group kraft paper capacity Capacity as new paper machine at Štětí ramps up (in mt) - Start-up ahead of plan in December 2024 0.8 - Invested €400 million for pulp mill 0.7 expansion and
Slide 23: Mondi's 'Sustainable by Design' products
Partner with Mondi’s ‘Sustainable by Design’ products customers driving growth Protective Mailer Paper bag without free film Lunch Box In collaboration with Amazon, our award- Designed to protect filling goods like The Lunch Box features security seals to winning Protective Mailer is a paper- buildi
Slide 24: Our successes are down to our great people
Empower our people Our successes are down to our great people Celebrating achievement Celebrating excellence Štětí paper machine start-up ahead of schedule Mondi Diamond Awards 2024 24
Slide 25: Strong platform for growth
Strong platform for growth Structurally growing markets Strong leadership positions Innovative, reliable and sustainable solutions Well invested, integrated asset base Great people Commitment to value creation 2525
Slide 26: Appendix
Slide 27: Mondi at a glance (2024)
Mondi at a glance (2024) Products Segment Underlying EBITDA revenue & margin Corrugated €328m €2,251m Packaging 14.6% Flexible €558m €3,964m Packaging 14.1% Uncoated Fine €198m €1,317m Paper 15.0% 27
Slide 28: Integrated value chain (2024)
Integrated value chain (2024) Wood Containerboard Containerboard3 Corrugated 15.2 million m3 2.3 mt 1.3 mt Packaging Paper for Corrugated recycling Pulp Box plants solutions 1.3 million 3.7 mt 1.9 billion m2 tonnes (mt) Consumer Kraft paper Kraft paper3 Other flexibles 1.2 mt 0.4 mt materials2 1.9 b
Slide 29: Supporting the growth in eCommerce to meet the variety of packaging our customers require
Supporting the growth in eCommerce to meet the variety of packaging our customers require Strength & Protection PACKAGING Corrugated box Corrugated Mailers Solidboard Envelopes* Paper Protective Mailers Paper Bags Material / Packaging Weight MATERIAL Corrugated Fanfold* Open flute Kraft, Functional
Slide 30: Customer-centric approach utilising Mondi's breadth of circular solutions
Customer-centric approach utilising Mondi‘s breadth of circular solutions Product Application Material Recycle-ready Customer benefits Polymer or paper- Integrated Dry petfood based solutions value chain FPF│KP│CFlex Very strong backward integration: paper know-how with significant Dry soups & mix
Slide 31: 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