Mondi Plc · LSE:MNDI
Mondi — Investor Day (November 2015)
17 slides from Mondi's investor day presentation, Nov 3, 2015
Slide 1: Capital Markets Day 2015 – Packaging Paper: Industry leading returns
Capital Markets Day 2015 Packaging Paper: Industry leading returns Clemens Willée 3 November 2015
Slide 2: Leading European packaging paper producer
Leading European packaging paper producer Production network and capacities (ktpa)1 Mondi containerboard mill Mondi kraft paper mill Pine Bluff: 135ktpa Syktyvkar: 285ktpa Virgin & recycled containerboard Dynäs: 260ktpa Štětí: 435ktpa Świecie: 1,440ktpa Štětí: 110ktpa Ružomberok: 66ktpa Raubling: 21
Slide 3: Consistently delivering excellent financial performance
Consistently delivering excellent financial performance Underlying operating profit (€ million) and ROCE (%) 400 30.0% 27% 350 25% 24% 25.0% 300 22% 17% 18% 175 20.0% 250 200 211 15.0% 150 167 10.0% 100 5.0% 50 181 300 236 308 342 0 0.0% 2010 2011 2012 2013 2014 H1 2015 EBIT ROCE % Packaging Paper N
Slide 4: And industry leading returns
And industry leading returns Packaging Paper Combined Packaging Paper & Fibre Packaging ROCE benchmark (%) ROCE benchmark (%) 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Mondi Packaging Paper & Fibre Packaging Mondi Packaging Paper Competitor 1 K
Slide 5: Containerboard demand growth expected to be highest in eastern Europe
Containerboard demand growth expected to be highest in eastern Europe Europe Western Europe Eastern Europe1 CAGR +2-3% +3% 37 35-37 CAGR +1-2% 32 2% CAGR 29 24 23-24 22 +4-5% 21 4% 12-13 13 10 9 2012 2015E 2020E 2012 2015E 2020E 2012 2015E 2020E ● Demand driven by general economic growth, industrial
Slide 6: Speciality kraft paper grades expected to be the main growth driver in kraft paper demand
Speciality kraft paper grades expected to be the main growth driver in kraft paper demand Sack kraft paper growth forecast (CAGR%)1 Speciality kraft paper growth forecast (CAGR%)2 2.0%-3.0% 2.4% 0.5%-1.0% 0.7% 0.3%-0.6% 0.4% 2011-2015E 2016E-2020E 2011-2015E 2016E-2020E 2011-2014 2015E-2019E World E
Slide 7: Incremental containerboard supply expected to be absorbed by demand in the medium term
Incremental containerboard supply expected to be absorbed by demand in the medium term 2016E-2018E demand and capacity containerboard growth estimates in Europe (in mt)1 CAGR: +2-3% +1-2% +2-3% 2.0-3.0 1.8-2.5 2.7 2.0 0.7 0.7 0.2-0.4 2016E- 2016E- 2014 2016E- 2016E- 2016E- 2016E- 2018E net 2018E net
Slide 8: Packaging Paper enjoys leading market positions
Packaging Paper enjoys leading market positions Top 5 European VCB Top 5 emerging Europe regional Top 5 European kraft paper producers containerboard producers producers (based on capacity)1 (based on capacity)1 (based on capacity)2 SKG Mondi SCA Ilim Billerud Mondi Eren Ham- Kipas Stora Mondi Bille
Slide 9: A low-cost asset base
A low-cost asset base Packaging Paper cost position 2014 Packaging Paper fixed assets (% capacity in quartile)1 by geography (%) Q4 6% 12% 10% 26% Q3 6% 6% 18% 2% 64% Q2 89% 31% 18% 25% 64% Q1 100% 69% 100% 82% 11% Mature markets White top Unbleached Semichem Recycled Unbleached kraftliner 2 kraftli
Slide 10: Leverage quality assets through selective investments
Leverage quality assets through selective investments Rebuilds, debottlenecking Cost optimisation Selective new capacity and new technologies ● Stambolijski steam turbine and ● Świecie PM4 rebuild ● Štětí PM7 155ktpa (bleached recovery boiler economiser ● Štětí PM6 inline silicone coater kraft paper
Slide 11: Track record of performance excellence
Track record of performance excellence Productivity per employee index (2008 = 100)1 ● Structured approach to performance excellence: 200 o Operational o Commercial 180 o Supply chain 160 o Procurement 140 ● Systematic improvement initiatives and best practice sharing 120 o Health check and follow u
Slide 12: Adding value through integration
Adding value through integration Recycled Containerboard Kraft Paper (million tonnes) (million tonnes) 0.7 1.1 0.5 ~ 70% 0.7 ~ 65% integration integration 0.4 0.2 Production Consumption Net long Production Consumption Net long position position ● Optimised supply chain ● Innovation partner Note: Con
Slide 13: Working closely with customers to provide excellent service
Working closely with customers to provide excellent service Direct ● Mondi own sales force in key markets customer contact ● Agents/traders only in selected AAA markets ● Reliability and delivery performance: Leading o Make-to-Stock service levels o Make-to-Europe Training and ● Global technical ser
Slide 14: Packaging Paper well positioned to continue to deliver industry leading performance
Packaging Paper well positioned to continue to deliver industry leading performance Strategic value drivers Maintain a high-quality, ● Leading European Packaging Paper producer low-cost asset base ● Well-invested, low-cost asset base ● Exposure to emerging markets Focus on ● Integration into convert
Slide 15: Packaging Paper market positions and market outlook sources and definitions
Packaging Paper market positions and market outlook 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, Lat
Slide 16: Packaging Paper ROCE benchmark notes
Packaging Paper ROCE benchmark notes Return on Capital Employed (ROCE) definitions: Mondi: ROCE: Trailing 12 month underlying operating profit (including share of associates’ net income) / 12 month trailing capital employed Capital employed: net segment assets plus investment in associates, deferred
Slide 17: 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