Mayr-Melnhof Karton AG · VIE:MMK
Mayr-Melnhof Karton — FY2004 Earnings Presentation
27 slides from Mayr-Melnhof Karton's earnings presentation, Apr 26, 2005
Slide 1: Mayr-Melnhof Karton AG Final Results 2004
Mayr-Melnhof Karton AG Final Results 2004 April 26, 2005 Page 1
Slide 2: Highlights 2004
Highlights 2004 Group • Another record result Key indicators Karton Net income increased by ~14 % to EUR 103.3 million Packaging • Dividend increase of EUR 0.20 to EUR 2.40 per share + Anniversary bonus EUR 1.50 per share • Successful growth • High capacity utilization • Further improvement of produ
Slide 3: Segments
Segments Group Key indicators • The worldwide leading producer of Karton recycled fiber based cartonboard Packaging • Europe‘s largest manufacturer of folding cartons 1 Segment MM Packaging as of Jan. 1, 2005 • A leading European packaging producer for cigarettes and confectionary Page 3
Slide 4: Production Sites
Production Sites MM-Karton 9 Mills in 6 countries MM-Packaging 21 Facilities in 10 countries Group + a worldwide distribution network Key indicators 7.580 Employees Karton Packaging Page 4
Slide 5: Strategic Position
Strategic Position Group • Concentration on core competences Key indicators Karton (Cartonboard production and processing) Packaging • Market AND Cost leadership • Long-term profit orientation • Expansion Page 5
Slide 6: Group Results 2004
Group Results 2004 consolidated in EUR millions, US GAAP 2004 2003 +/- Group Key indicators Sales 1,422.2 1,320.6 +7.7% Karton Operating profit 148.8 136.2 +9.3% Packaging Operating margin 10.5% 10.3% Income before taxes 148.2 132.3 +12.0% Net income 103.3 90.9 +13.6% % of sales 7.3% 6.9% Cash earni
Slide 7: Group: Sales and Margins
Group: Sales and Margins Group 1400 12% Key indicators Karton 1200 10% Packaging 1000 8% 800 6% 600 4% 400 2% 200 0 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 in EUR millions Sales Operating margin % Net profit margin % Page 7
Slide 8: Sales by Region
Sales by Region Group Key indicators Karton Western Europe 72% Packaging (75%) Eastern Europe 19% (18%) Other Overseas Asia 4% 5% (3%) (4%) 2004 (2003) Page 8
Slide 9: Group Balance Sheet
Group Balance Sheet Dec. 24, 2004 Dec.24, 2003 Group Key indicators Current assets 606.9 527.9 Karton 687.6 656.7 Non-current assets Packaging Total assets 1,294.5 1,184.6 Liabilities 580.9 547.3 Stockholders‘ equity 713.6 637.3 Total assets 1,294.5 1,184.6 Cash and cash equivalents 302.2 242.4 + av
Slide 10: Return on Equity
Return on Equity Group 16,00% 15.20% 15.30% 14.90% 15.00% Key indicators C Karton 14,00% 13.40% Packaging 12,00% 9.90% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% 1999 2000 2001 2002 2003 2005 Defined: Net income / average stockholders‘ equity Page 10
Slide 11: Return on Capital Employed
Return on Capital Employed Group 26,00% 24.50% 23.80% Key indicators 24,00% C 21.60% 21.50% Karton 22,00% Packaging 20,00% 19.40% 18,00% 16,00% 15.20% 14,00% 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% 1999 2000 2001 2002 2003 2004 Defined: Net income before minority interests, income taxes and net
Slide 12: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Group Key indicators Consolidated in EUR millions, US GAAP 2004 2003 Karton Net cash provided by operating activities 205.9 157.3 Packaging Net cash used in investing activities (133.0) (81.7) Net cash used in financing activities (11.6) (57.0) Change in cash an
Slide 13: Cash Earnings - Capex
Cash Earnings - Capex Group 180 s Key indicators 160 rn ing Karton Ea sh 140 Ca Packaging 120 100 80 x pe 60 Ca 40 20 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 -20 in millions of EUR Page 13
Slide 14: MM Karton
MM Karton Group • 9 Mills in Austria, Germany, Switzerland, Netherlands, Key indicators Slovenia and Bulgaria Karton Packaging • Capacity 2004: ~1.6 million tons / annum • Sales: ~EUR 780 million • 13 machines • 90% Recycled fiber based cartonboard • 10% Virgin fiber based cartonboard • ~ 3.000 empl
Slide 15: Leading European Producers of coated Cartonboard
Leading European Producers of coated Cartonboard Group Key indicators Mayr-Melnhof (AUT) Karton Packaging StoraEnso (SWE/FIN) Reno de Medici (ITL) Recycled fiber M-real (FIN) Virgin fiber Cascades (FRA) 0 200 400 600 800 1.000 1.200 1.400 1.600 Capacity In 000‘s of tons excl. Grey board, LPB, CNK Pa
Slide 16: MM Karton: Tonnes Sold
MM Karton: Tonnes Sold 1.600.000 Group Key indicators 1.400.000 23% Karton 1.200.000 15% 19% 22% 20% Packaging 13% 17% 1.000.000 17% 23% 25% 800.000 600.000 400.000 200.000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Europa Rest of Word Page 16
Slide 17: Overview: MM Karton 2004
Overview: MM Karton 2004 Group • Significantly better capacity utilization than in 2003 Key indicators Utilization rate 95 % (2003: 87 %) Karton Packaging • Strong price increase of all crude oil related input factors Increase of cartonboard price • Successful cost management • MM-Eerbeek (NL): Prod
Slide 18: MM-Karton: Results 2004
MM-Karton: Results 2004 in EUR millions, US GAAP 2004 2003 +/- Group Key indicators Sales 777.9 755.6 +3.0% Karton Operating profit 78.0 80.3 -2.9% Packaging Operating margin 10.0% 10.6% Tonnage produced (in 1,000 tons) 1,517 1,426 +6.4% Employees 2,993 2,969 Capex 58.5 55.0 Page 18
Slide 19: Development – Recovered Paper Price
Development – Recovered Paper Price Mixed waste in EUR / ton 140 Group Key indicators 120 Karton 100 Packaging 80 60 40 20 0 O 0 O 1 O 2 O 3 O 4 Ap 0 Ap 1 Ap 2 Ap 3 Ap 4 05 0 1 2 3 4 4 0 1 2 3 0 0 0 0 0 l0 l0 l0 l0 l0 r0 r0 r0 r0 r0 .0 .0 .0 .0 .0 n. n. n. n. n n ct ct ct ct Ju Ju Ju Ju Ju ct Ja Ja
Slide 20: MM Packaging
MM Packaging Group Key indicators • 21 Plants in 10 Countries Karton Packaging • Tonnage converted: 470,000 tons • Sales: ~ EUR 750 million (Basis 2004) • 4,580 Employees Page 20
Slide 21: Tonnage Converted
Tonnage Converted Group 450 Key indicators 400 Karton Packaging 350 300 250 200 150 100 50 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Tonnage converted Acquisition in 000‘s of tons/ year Page 21
Slide 22: Leading European Producers of Folding Cartons
Leading European Producers of Folding Cartons Group Key indicators Karton Mayr-Melnhof (AUT) Packaging Ackerlund/Rausing (SWE) Van Genechten (BEL) Chesapeake (US) MY (UK) 0 100 200 300 400 500 Tonnage converted in 000‘s of toms Page 22
Slide 23: MM-Packaging: Overview 2004
MM-Packaging: Overview 2004 Group Î Successful growth in sales and earnings Key indicators Karton Packaging • Converting operations remained strong in highly competitive environment • Significant improvement in productivity • New Business MMP benefits from on-going concentration in consumer goods in
Slide 24: MM-Packaging: Results 2004
MM-Packaging: Results 2004 consolidated in EUR millions, US GAAP 2004 2003 +/- Group Key indicators Sales 472.4 399.7 +18.2% Karton Operating profit 31.1 24.7 +25.9% Packaging Operating margin 6.6% 6.2% Tonnage converted (in 1,000 tons ) 375 314 +19.4% Employees 3,464 2,635 Capex 30.9 14.4 Page 24
Slide 25: MM-Graphia: Results 2004
MM-Graphia: Results 2004 consolidated in EUR millions, US GAAP 2004 2003 +/- Group Key indicators Sales 284.6 262.0 +8.6% Karton Operating profit 39.7 31.2 +27.2% Packaging Operating margin 13.9% 11.9% Tonnage converted (in 1,000 t) 95 91 +4.4% Employees 1,123 1,202 Capex 7.2 9.8 Page 25
Slide 26: Reorganization MM Packaging
Reorganization MM Packaging as of Jan. 1, 2005 Group Key indicators Î Earnings and Growth Karton Packaging • Utilize increased synergy potentials Cost reduction / Enhance productivity • Focus sales in strategic Business Units Cigarettes Confectionary Detergents FMCG Page 26
Slide 27: Outlook
Outlook Group • Cartonboard and Folding Carton demand still in light of the Key indicators sluggish economic development Karton Packaging • Increased price competition • Both divisions hold up well • Increase of productivity and cost reductions - Top priority • Cartonboard sales Q1/05 below last yea