Mayr-Melnhof Karton AG · VIE:MMK
Mayr-Melnhof Karton — FY2003 Earnings Presentation
31 slides from Mayr-Melnhof Karton's earnings presentation, Apr 27, 2004
Slide 1: Final Results 2003
Mayr-Melnhof Karton AG Final Results 2003 April 27, 2004 Page 1
Slide 2: Highlights 2003
Highlights 2003 Group • Another record year in a row Key indicators Net income increased by 9 % to EUR 90.9 million Karton Packaging • 10 % dividend increase to EUR 2.20 per share Graphia • MM best positioned Market- and Cost position • Share price increased by 35 % (2002: 33 %) Page 2
Slide 3: MM Shares: 10 Years on the Stock Exchange
MM Shares: 10 Years on the Stock Exchange 120 Group 110 Key indicators 100 Karton 90 Packaging Graphia 80 70 60 50 40 30 4/94 7/94 10/94 1/95 4/95 7/95 10/95 1/96 4/96 7/96 10/96 1/97 4/97 7/97 10/97 1/98 4/98 7/98 10/98 1/99 4/99 7/99 10/99 1/00 4/00 7/00 10/00 1/01 4/01 7/01 10/01 1/02 4/02 7/02 1
Slide 4: Strategic Position
Strategic Position Group • Concentration on core competences Key indicators (Cartonboard production and processing) Karton Packaging • Market AND Cost leadership Graphia • Long-term profit orientation • Expansion Page 4
Slide 5: Segments
Segments Group Key indicators • The worldwide leading producer of Karton recycled fiber based cartonboard Packaging Graphia • Europe‘s largest manufacturer of folding cartons • A leading European packaging producer for cigarettes and confectionery Page 5
Slide 6: Production Sites
Production Sites Group MM-Karton 9 Mills in 6 countries Key indicators MM-Packaging 16 Facilities in 8 countries Karton MM-Graphia 5 Facilities in 2 countries Packaging + a worldwide distribution network Graphia 7.000 Employees Page 6
Slide 7: Group Results 2003
Group Results 2003 Consolidated in millions of EUR, US GAAP 2003 2002 +/- Group Key indicators Sales 1,320.6 1,265.7 +4.3% Karton Operating profit 136.2 135.7 +0.4% Packaging Operating margin 10.3% 10.7% Graphia Income before taxes 132.3 132.8 -0.4% Net income 90.9 83.3 +9.1% in % of sales 6.9% 6.6%
Slide 8: Sales and Margins
Sales and Margins Group 12% Key indicators 1200 Karton 10% Packaging 1000 Graphia 8% 800 6% 600 4% 400 200 2% 0 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 in millions of EUR Sales Operating margin % Net profit margin % Page 8
Slide 9: Sales by Region
Sales by Region Group Key indicators EU Karton 71% (73%) Packaging Graphia Eastern Europe 18% (16%) Others Asia 7% (6%) 4% (5%) 2003 (2002) Page 9
Slide 10: Sales and Operating Profit by Division
Key figures Sales and Operating Profit by Division Group Key indicators Karton PACKAGING PACKAGING Packaging 5 6 18% Graphia 1 30% 2 % KARTON 50% % KARTON 59% 23% 20% GRAPHIA GRAPHIA Sales Operating Profit Basis: 2003 Page 10
Slide 11: Group Balance Sheet
Group Balance Sheet Consolidated in EUR millions, US GAAP Dec.31,2003 Dec.31,2002 Group Key indicators Current assets 527.9 518.2 Karton Non-current assets 656.7 657.0 Packaging Total assets 1,184.6 1,175.2 Graphia Current liabilities 325.2 354.7 Non-current liabilities 213.0 240.2 Minority interest
Slide 12: Return on Equity
Return on Equity Group 16,00% 15.20% 14.90% 15.00% Key indicators Karton 14,00% 13.40% Packaging 12,00% Graphia 9.90% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% 1999 2000 2001 2002 2003 Defined: Net income / average stockholders‘ equity Page 12
Slide 13: Return on Capital Employed
Return on Capital Employed Group 26,00% 24.50% 23.80% Key indicators 24,00% 21.60% Karton 22,00% Packaging 20,00% 19.40% Graphia 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 Defined: Net income before minority interests, income taxes and net intere
Slide 14: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Group Key indicators consolidated in EUR millions, US GAAP 2003 2002 Karton Net cash provided by operating activities 157.3 173.8 Packaging Net cash used in investing activities (81.7) (119.1) Graphia Net cash used in financing activities (57.0) (71.7) Change in
Slide 15: Cash Earnings - Capex
Cash Earnings - Capex Group 180 Key indicators C arnings 160 Karton Ca sh E 140 Packaging 120 Graphia 100 x 80 Cape 60 40 20 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 -20 in millions of EUR Page 15
Slide 16: MM-Karton
MM-Karton Group • 9 mills in Austria, Germany, Switzerland, Key indicators Netherlands, Slovenia und Bulgaria Karton Packaging • Capacity 2003: 1.6 million tons / year Graphia • 14 machines • 90% recycled fiber based cartonboard • 10% virgin fiber based cartonboard Page 16
Slide 17: MM-Karton: Overview 2003
MM-Karton: Overview 2003 Profitability kept on a high level Group Key indicators • On-going short-term demand Karton Packaging • European pricing fairly maintained Graphia • Capacities adjusted to demand by selective production downtime (Capacity utilization: 87% 2003 / 93% 2002) • Successful implem
Slide 18: MM-Karton: Results 2003
MM-Karton: Results 2003 in EUR millions, US GAAP 2003 2002 +/- Group Key indicators Sales 755.6 778.7 -3.0% Karton Operating profit 80.3 94.4 -14.9% Packaging Operating margin 10.6% 12.1% Graphia Tonnage produced (in 000‘s of tons) 1,426 1,435 -0.6% Employees 2,969 2,952 Capex 55.0 46.9 Page 18
Slide 19: Expansion – Sales Organization
Expansion – Sales Organization Group EASTERN EUROPA Key indicators Karton • MM Karton Russia Packaging • MM Karton Praha Graphia • MM Karton Polska • MM Karton Bulgaria ASIA (China) • MM China - Shanghai - Guangzhou Page 19
Slide 20: Recovered Paper Price
Group Karton Graphia Packaging Key indicators 0 20 40 60 80 100 120 140 Jan.00 Mar.00 Source: EUWID May.00 Jul 00 Sep 00 Nov 00 Mixed grade in EUR / t Jan.01 Mar.01 May01 Jul 01 Sep 01 Nov 01 Jan.02 Mar.02 May.02 Recovered Paper Price Jul 02 Sep 02 Nov 02 Jan.03 Mar.03 May.03 Jul 03 Sep 03 Nov 03 Pa
Slide 21: Cartonboard Price
Group Karton Graphia Packaging Key indicators 450 500 550 600 650 700 750 800 850 900 Jan.00 Mar.00 Source: EUWID May.00 Jul 00 GD II in EUR / t Sep 00 Nov 00 Jan.01 Mar.01 May.01 Jul 01 Sep 01 Nov 01 Cartonboard Price Jan.02 Mar.02 May.02 Jul 02 Sep 02 Nov 02 Jan.03 Mar.03 May.03 Jul 03 Sep 03 Nov
Slide 22: MM-Packaging
MM-Packaging: Group • 16 facilities in 8 countries Key indicators Karton • Tonnage converted 2003: 314,000 tons Packaging (~13 billion folding cartons) Graphia • > 1000 customers (all renowned producers of consumer goods) Page 22
Slide 23: MM-Packaging: Products
MM-Packaging: Products Group Key indicators Karton Packaging Graphia Food Detergents Pet food Microflute Pharma Multipack Page 23
Slide 24: MM-Packaging: Overview 2003
MM-Packaging: Overview 2003 Group Positive development of earnings Key indicators Karton • Robust demand Packaging Graphia • Highly competitive environment • We follow the customers • Site-specialization continued • Innovation Page 24
Slide 25: MM-Packaging: Results 2003
MM-Packaging: Results 2003 in Mio. EUR, US GAAP 2003 2002 +/- Group Key indicators Sales 399.7 421.3 -5.1% Karton Operating profit 24.7 23.7 +4.2% Packaging Operating margin 6.2% 5.6% Graphia Tonnage converted (in 000‘s of tons) 314 324 -3.1% Employees 2,635 2,652 Capax 14.4 12.7 Page 25
Slide 26: MMP Iberica
MMP Iberica Group • Acquisition of folding carton production of Alcan Packaging Key indicators Karton • Location: Alzira, Valencia, Spain Packaging • Sales: ~EUR 27 million Graphia • 200 Employees • Focus: Detergent and Food Packaging ⇒ Development of a high performance plant Page 26
Slide 27: MM-Graphia
MM-Graphia Group • 5 facilities in Germany, Ukraine Key indicators Karton • 3 printing technologies (offset, gravure, flexo) Packaging Graphia out of one hand • Converted tonnage 2003: ~ 91,000 tons Page 27
Slide 28: MM-Graphia: Produkte
MM-Graphia: Produkte Group Key indicators Karton Packaging Graphia Zigarettenverpackung Hochwertige Süßwarenverpackung Page 28
Slide 29: MM-Graphia: Overview 2003
MM-Graphia: Overview 2003 Group • Despite increase of tobacco duties in several countries – only Key indicators slight decrease of the Western European market Karton Packaging • On-going dynamic development in Eastern Europe Graphia ⇒ Set up of new plant in Izmir for growth market Turkey ⇒ Expansion
Slide 30: MM-Graphia: Results 2003
MM-Graphia: Results 2003 in EUR millions, US GAAP 2003 2002 +/- Group Key indicators Sales 262.0 177.1 +47.9% Karton Operating profit 31.2 17.6 +77.3% Packaging Operating margin 11.9% 9,9% Graphia Tonnage converted (in 000‘s of tons) 91 59 +54.2% Employees 1,202 1,182 Capex 9.8 8.3 Page 30
Slide 31: Outlook
Outlook Group • Expect good period net income for the first quarter of 2004 Key indicators Karton • High utilization of capacities in all Divisions Packaging Graphia • Capacity utilization of MM-Karton particularly supported by non- European sales • Price competition remains strong • Cost reduction