Mondi Plc · LSE:MNDI
Mondi — Investor Presentation (November 2007)
25 slides from Mondi's investor presentation, Nov 27, 2007
Slide 1: Investor Site Presentation David Hathorn
INVESTOR SITE PRESENTATION DAVID HATHORN 27/28 NOVEMBER 2007
Slide 2: Agenda
AGENDA Mondi Organisation Safety & Sustainable Development PAGE 1
Slide 3: Agenda
AGENDA Mondi Organisation Safety & Sustainable Development PAGE 2
Slide 4: Mondi Strategic Drivers
MONDI STRATEGIC DRIVERS Mondi Group sales H1 2007 Group net operating assets June 2007 { Leading market position — Leading market positions 39% — High exposure to: 45% 55% – Attractive product segments 61% – Attractive geographies { Strong asset base Emerging markets Mature markets Emerging markets
Slide 5: UCWF and Corrugated demand growth per region
UCWF and Corrugated demand growth per region Corrugated 2005 - 2010 demand growth (in UCWF 2006 - 2011 demand growth (in %)1 %)2 9,8 8,2 6,6 1,8 1,3 WE EE CIS WE EE Demand growth in %. 1Sources: EMGE Woodfree Forecast Report; October 2007 for Eastern and Western Europe. World Paper markets 2020, Pöy
Slide 6: Superior Access to Low-Cost Wood
SUPERIOR ACCESS TO LOW-COST WOOD Average Hardwood and Softwood Costs (€/m3, Q2 2007) 47 42 39 37 33 30 30 25 25 26 le a ia l nd al d en ce a zi si ic an hi al ug ra an ed la us fr C tr nl B Po rt A Fr Sw us R Fi Po h A ut So Source: Pöyry Forest Industry Consulting MAGENTA\ROADSHOW PRESENTATION\12 M
Slide 7: Benefiting from Integrated Value Chain
BENEFITING FROM INTEGRATED VALUE CHAIN Forestry Pulp Paper Mondi’s own 7.6mm3 5.8Mt 3.5Mt Packaging: 3.3Mt availability Mondi’s own 3.8Mt 2.1Mt(1) 14.8mm3 demand Potential self 51% 91% 154%(1) sufficiency (1) Refers to Mondi’s demand and self-sufficiency of packaging paper (including MP and MPSA). P
Slide 8: Growth
GROWTH z At 30th June 2006 61% of asset base was deployed in emerging markets. z Estimated emerging market share of asset base will grow to 70% by close of 2010 z Major investments targeted at emerging markets: - Containerboard and box plant – Eastern Europe - Syktyvkar modernisation expansion – Rus
Slide 9: Interim Financial Highlights
INTERIM FINANCIAL HIGHLIGHTS € millions, except for percentages H1 2007 H1 2006 %Change Group revenue 3,052 2,857 +7 1 EBITDA 421 343 + 23 2 Underlying operating profit 243 166 + 46 3 Underlying profit before tax 203 125 + 62 Reported profit before tax 250 64 4 Underlying pro forma earnings per shar
Slide 10: Interim Management Statement (14th November)
INTERIM MANAGEMENT STATEMENT (14TH NOVEMBER) Group Overall positive trends and trading momentum of first half have continued Weakness of US dollar is impacting trade flows External fibre cost inflation has eased Mondi Packaging Benefited from a favourable Packaging Paper trading environment
Slide 11: Industry Fundamentals: European Uncoated Fine Paper
INDUSTRY FUNDAMENTALS: EUROPEAN UNCOATED FINE PAPER 1200 { Circa 12 million tonne market, growing at 3% 1 pa 1100 — Western Europe 2% 2 — Eastern Europe 7% 2 1000 { European capacity closures in 2006/2007 €/tonne of 720,000 tpa 900 { Following these closures, capacity 800 utilisation anticipated to
Slide 12: Industry Fundamentals: European Containerboard and Corrugated Packaging
INDUSTRY FUNDAMENTALS: EUROPEAN CONTAINERBOARD AND CORRUGATED PACKAGING 750 { Circa 26 million tonne market growing at 700 Kraftliner 175 g Testliner 2 2.7% 1 pa 650 White top Kraftliner — Western Europe 1.4% 1 600 — Eastern Europe 11.0% 1 550 €/tonne { Good demand growth, particularly in 500 German
Slide 13: While current USD makes Europe attractive for imports, overall threat limited
While current USD makes Europe attractive for imports and pressures exports, overall threat limited z The impact on Mondi should be limited for the following reasons: o UCWF: – 8% of volume exposed to exports (about 4% for cut size) – Relative high entry barriers (distribution channels, Customer own
Slide 14: Impact on Mondi's grades is limited
Nevertheless with the exception of the export heavy Kraft paper, the impact on Mondi’s grades is limited Overview of Export dependence European Paper Business (Imports, Exports and Net Trade in % of Production) Exports in % of Production Imports in % of Production 34,4 Net Exports in % of Production
Slide 15: Share Price Performance
Share Price Performance 115.0 Relative Share Prices of Principal Comparitor Group 105.0 95.0 85.0 3 July 2007 =100 75.0 65.0 55.0 45.0 Mondi DS Smith IP M-Real Norske Skog Sappi SCA Smurfit Stora Enso UPM 35.0 3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 6-Nov 13-Nov 20-Nov 4-Sep 2-Oct 9-Oct 16-Oct 23-Oct 30-O
Slide 16: Agenda
AGENDA Mondi Organisation Safety & Sustainable Development PAGE 15
Slide 17: Organisational Change
ORGANISATIONAL CHANGE z The changes are designed to eliminate duplication, simplify process and align our business model across the Group z In place of the current Mondi Packaging and Mondi Business Paper Business Units, there will be a Europe & International Division and a South African Division z
Slide 18: Mondi Group South Africa Division
Mondi Group Mondi Mondi Aylesford Europe & South Africa Shanduka Europapier Packaging Newsprint International Division Newsprint South Africa Division PAGE 17
Slide 19: Agenda
AGENDA Mondi Organisation Safety & Sustainable Development PAGE 18
Slide 20: Our Sustainability Aims
OUR SUSTAINABILITY AIMS { At Mondi, it is important that we — Apply consistently good practice in the management of sustainability and that we are recognised as a leader in balancing ecological, social and economic values. — Set the safety standard for the industry. — Subscribe to credible and recog
Slide 21: Sustainability Issues - Safety
SUSTAINABILITY ISSUES - SAFETY { Safety is a core value underpinned by clear operating standards. { One incident is one too many – Mondi is committed to the principles of zero harm and safe workplaces. LTIFR Trend Performance: 2001 to Q3 2007 1.4 o Track record of reductions in Lost-Time 1.2 1.2 Inj
Slide 22: Sustainability Issues - Forestry
SUSTAINABILITY ISSUES - FORESTRY { All South African plantations are managed to independently certified sustainable forest management standards. { All areas in Russia are public land, managed through forest management agreements that involve public stakeholder processes and regular independent audit
Slide 23: Sustainability Issues - Emissions
SUSTAINABILITY ISSUES - EMISSIONS { Mondi is a large energy consumer – 6 million tonnes of CO2e emitted annually with 45% of energy produced from biomass { Target of 15% reduction for energy and CO2 from 2004 to 2014 { Mondi sent 234,000 tonnes of non-hazardous waste to landfill in 2006 – target to
Slide 24: Sustainability Issues - CSR
SUSTAINABILITY ISSUES - CSR { All Mondi’s significant sites have undertaken a socio-economic assessment of their operations with the focus on engaging with their communities and delivering on the commitments made to them. { Corporate Social Investment programmes in place at our sites { HIV/Aids prog
Slide 25: Q&A
Q&A