Mondi Plc · LSE:MNDI
Mondi — Mondi Packaging Paper Świecie — Investor Presentation (November 2007)
20 slides from Mondi's investor presentation, Nov 27, 2007
Slide 1: Investor and Analyst Presentation
MONDI PACKAGING PAPER ŚWIECIE S.A. Investor and Analyst Presentation 27 November, 2007 Maciej Kunda
Slide 2: Agenda
AGENDA z Poland z Company History z Management team z Mill overview z Products z Key financials z Post acquisition highlights z Competitive Advantages MPP Swiecie z Site visit briefing PAGE 1
Slide 3: Poland
POLAND z Area: 312,685 km2 Mondi Packaging Lithuania Paper Świecie S.A. z Population: 38.5 million z Main industries: coal, textile, chemical, Świecie machinery, iron and steel Belarus sectors Bydgoszcz z Forest land: 28% Germany Warsaw Poznań Poland Cracow Czech Ukraine Republic Slovakia PAGE 2
Slide 4: Macroeconomic Indicators – Poland
MACROECONOMIC INDICATORS – POLAND 2002 2003 2004 2005 2006 2007 2008 2009 Real GDP (change in %) 1.4 3.9 5.3 3.6 6.1 6.6 5.3 5.2 Unemployment rate (in %) 19.9 19.6 19.0 17.7 13.8 11.2 9.7 8.4 Inflation (avg in %) 1.9 0.7 3.6 2.2 1.3 2.2 2.8 2.8 PLN/EUR (avg) 3.9 4.4 4.5 4.0 3.9 3.8 3.7 3.7 GDP/Capit
Slide 5: 40 Year History
40 YEAR HISTORY 2007 1997 1992 Privatisation 1991 Mondi 60% Restruct- Transformation uring into Joined Stock Company 1976 1972 1961 NSCC 1967 Kraft Plant Pulp Dissolving Plant Pulp Plant 61 62 63 64 65 66 67 68 69 1970 71 72 73 74 75 76 77 78 79 1980 81 82 83 84 85 86 87 88 89 1990 91 92 93 94 95 96
Slide 6: Overview - Management Team
OVERVIEW - MANAGEMENT TEAM Maciej Kunda Florian Stockert Jan Żukowski CEO (41 years of age) Tomasz Katewicz Adam Mrzygłód Development and Sales Director Investment Director (48 years of age) (55 years of age) Production Director Financial Director (42 years of age) (34 years of age) PAGE 5
Slide 7: Overview - Structure of the Mill
OVERVIEW - STRUCTURE OF THE MIL PM 1 PM 2 PM 3 PM 4 PM 5 134.000 to 200.000 to 118.000 to 174.000 to 194.000 to 5.3 m 4.4 m 4.4 m 4.4 m 5.3 m Sackpaper Kraftliner Testliner Sc fluting Light weight Light weight 150 – 330 g/m2 Kraftliner Kraftliner 90 – 140 g/m2 2xcontinuous digesters Semichemical pul
Slide 8: Market Segmentation by End-Use Application
MARKET SEGMENTATION BY END-USE APPLICATION Lafarge, Bayer • Cement Higher gsm • Premixes • Fruits, vegetables, meat • Feed • Heavy duty packaging • Chemicals • Fruits Sack Paper • Electronics • Vegetables 10% Lower gsm • Meat • Cosmetics, medicines • Flowers • Internet sales S.C. Fluting 21% • Heavy
Slide 9: Financial Indicators MPP Swiecie
FINANCIAL INDICATORS MPP SWIECIE Sales (PLN B) / ROCE1 Profitability (HY 2007) Sales ROCE1 2007 2006 % change (PLN B) (%) 26.5 20.5 33.2 27.5 33.0 35 EBITDA PLN 220 M 184 M 19.6 30 25 0,5 EBITDA 20 31.9 % 29.6% 7.7 Margin 1.26 1.30 15 1.19 10 Capital 0.69 PLN 1 032 M 956 M 7.9 0.63 Employed 5 0,0 0
Slide 10: Post Acquisition Highlights
POST ACQUISITION HIGHLIGHTS
Slide 11: Post Acquisition Highlights - Transformation of the Company
POST ACQUISITION HIGHLIGHTS - TRANSFORMATION OF THE COMPANY Process Change Celuloza Performance MPP Świecie Świecie Goal Operational, Financial, HR, Sales, Goal Quality, Environmental, Safety Capacity Value Creation Utilization High Performance Past Now Time PAGE 10
Slide 12: Post Acquisition Highlights – Major Capital Projects 1998-2006
POST ACQUISITION HIGHLIGHTS – MAJOR CAPITAL PROJECTS 1998-2006 Proactive Early action against foreseen trends, developments and Investment changes in business environment (markets, customer Strategy needs, changes in operational environment). Market Development Focus Project Targets / Achievements 2
Slide 13: Post Acquisition Highlights – Major Capital Projects 1998-2006
POST ACQUISITION HIGHLIGHTS – MAJOR CAPITAL PROJECTS 1998-2006 Proactive Early action against foreseen trends, developments and Investment changes in business environment (markets, customer Strategy needs, changes in operational environment). Early Action against foreseen changes in operational envi
Slide 14: Post Acquisition Highlights – Total PM Production 1970–2007
POST ACQUISITION HIGHLIGHTS – TOTAL PM PRODUCTION 1970 – 2007 Production nearly doubled during last 10 years: 1.000 tons 824 797 760 737 Mondi 690 start to be majority 631 shareholder +85% 603 538 488 435 446 416 428 379 384 380 386 391 381 362 346 341 333 307 299 318 318 316 282 295 251 259 223 171
Slide 15: Post Acquisition Highlights – Productivity Increase
POST ACQUISITION HIGHLIGHTS – PRODUCTIVITY INCREASE Productivity increase by 770 tons per capita, compared to 1997 Employees, average Total productivity in tons 3500 970 902 3,124 823 870 3000 2,703 770 722 652 2500 670 587 570 2000 1,986 459 409 470 1500 1,473 1,379 370 273 1,176 1,131 1,054 969 10
Slide 16: Post Acquisition Highlights – Progress in Safety
POST ACQUISITION HIGHLIGHTS – PROGRESS IN SAFETY OTTO ZerO Tolerance Target ZerO Number of Accidents 1997-2006 Development of Lost Time Injury (including sub contractors) Frequency Rate (LTIFR) 1997 - 2006 LTIFR 3,0 43* 2006 Mondi Safety Award 2,5 37* for Best in Class 31* Large Unit 2,0 1,82 1,50 1
Slide 17: Competitive Advantage of MPP Świecie
COMPETITIVE ADVANTAGE OF MPPŚWIECIE Competitive Advantage of MPP Świecie driven by z Clear cost advantage in energy and labor cost z Cost advantage in transportation to European markets z Capability of most effective fibre mix (wood and recovered fibre) z Swiecie is a world class mill in terms of pr
Slide 18: Cost Competitiveness of Unbleached Kraftliner
COST COMPETITIVNESS OF UNBLEACHED KRAFTLINER €/tons Cost level 2006/III 500 Delivered costs 450 to Frankfurt 400 350 Swiecie PM2 300 Swiecie PM1 Swiecie PM5 250 200 150 100 50 0 0 500 1.000 1.500 2.000 2.500 3.000 3.500 Cumulative capacity, k tons p.a. 1 Including European supply and imports 2 Depre
Slide 19: Site Visit Briefing
SITE VISIT BRIEFING
Slide 20: Site Visit Briefing
SITE VISIT BRIEFING ¢monci | i —— (tog oe Pee 2) Pulp Mill 3) PM 4&5 4) Bag Plant
Mondi Packaging Paper Świecie — Investor Presentation (November 2007) on 6ix