Mondi Plc · LSE:MNDI
Mondi — Investor Day (September 2013)
31 slides from Mondi's investor day presentation, Sep 2, 2013
Slide 1: Mondi Capital Markets Day: Consumer Packaging
Mondi Capital Markets Day Consumer Packaging Ralph Landwehr 2 September 2013
Slide 2: Consumer Packaging introduction
Consumer Packaging introduction The Consumer Packaging business is a global leading innovative solutions provider of hygiene components, speciality films and consumer flexible packaging. Nordenia: a significant step for Consumer Packaging Acquisition of Nordenia Acquisitions of: Acquisition of Wheat
Slide 3: Consumer Packaging integrated value chain
Consumer Packaging integrated value chain Vertically integrated along the full value chain 2005 Compounding Extrusion Printing Lamination Slitting Converting Blown Roto Solvent-free Laser Bag & Pouch Cast Flexo Solvent-based perforation making Resin Films Printed barrier laminates Converted packagin
Slide 4: International plant network
International plant network 18 plants in 10 countries Consumer Packaging plant. China facility expected to commence operations towards start of 2014. Pac k aging Paper | F ibr e Pac k aging | Co n sumer Packaging | Unc oated Fine Paper | South Af r ic a Divis ion 3
Slide 5: Blue chip customer base
Blue chip customer base More than 90% of sales to FMCGs Pac k aging Paper | F ibr e Pac k aging | Co n sumer Packaging | Unc oated Fine Paper | South Af r ic a Divis ion 4
Slide 6: Consumer Packaging key financials
Consumer Packaging key financials Sales (€ million) and EBITDA margin (%)1 Operating profit (€ million) and ROCE (%)1,2 11.3% 15.0% 9.0% 13.5% 10.8% 10.0% 9.9% 9.1% 6.4% 10.2% 10.1% 5.6% 387 313 347 372 502 582 12 17 22 25 33 39 2008 2009 2010 2011 2012 H1 2013 2008 2009 2010 2011 2012 H1 2013 Sales
Slide 7: Consumer Packaging return on capital employed
Consumer Packaging return on capital employed Consumer Packaging ROCE1 benchmark (%) % 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 H1 2013 2 3 Mondi CP Nordenia Key competitor a Key competitor b Key competitor c (1) See appendix for definitions of ROCE. (2) Includes Nordenia from the date of acquisi
Slide 8: PE price development
PE price development LDPE development 2010-2013 € / tonne 2010 2011 2012 2013 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Jul-10 Jul-11 Jul-12 Jan-10 Jan-11 Jan-12 Jan-13 ● PE prices during 2011 / 2012 at historically high levels ● Des
Slide 9: Key end-use applications
Key end-use applications Consumer Packaging applications (2012 sales %) Industrial Other Home Care 7% 3% 4% Personal Care Converting FMCG 37% 12% 17% Pet Care 20% €1.2 billion1 Food End-use applications Personal and Home Care2 Food Pet Care ● Elastic diaper components ● Laminating films (for flexibl
Slide 10: Key global consumer packaging trends
Key global consumer packaging trends Rise in consumer wealth, combined with a developing retail framework, continue to drive growth in emerging economies Growth opportunities for value-added packaging have emerged, especially in the food and beverage sectors Packaged food, pet care and healthc
Slide 11: The global consumer packaging market
The global consumer packaging market Global consumer packaging consumption1 Key regional trends Europe and North America represent 50% of the total Middle East & Africa Central & South America consumer packaging market 5% Western Europe 6% Western Europe has experienced volume growth and 18% is
Slide 12: Key focus end-use applications for Mondi
Key focus end-use applications for Mondi Personal Care Food Pet Care Leading global supplier of Target value-added applications Preferred European partner hygiene components 1 2 3 Pac k aging Paper | F ibr e Pac k aging | Co n sumer Packaging | Unc oated Fine Paper | South Af r ic a Divis ion 11
Slide 13: Personal care activities
1 Personal care activities Products Overview Sales 2012: 37% 7 plants: Gronau, Jackson, Halle, Barcelona, Szada, Sungai Siput, Pereslavl Main products: Elastic diaper components Mechanical diaper fastening systems Elastic components Fastening system for diapers for diapers Siliconised fi
Slide 14: Drivers of hygiene end-use applications
1 Drivers of hygiene end-use applications Overview Global diaper market share1 Diapers is the largest hygiene end-use application, accounting for approximately half of global hygiene products consumption Attractive growth primarily driven by emerging markets, with moderate development in mature
Slide 15: Food activities
1 Food activities Products Overview Sales 2012: 20% 12 plants: Jackson, Poznan, Pereslavl, Iberica, Szada, Halle, Sungai Siput, Wheatley, Korneuburg, Napiag, Solec, Békécsaba Main products: Rollstock films / laminates Stand-up pouches Mono films rollstock with and without coldseal Recl
Slide 16: Drivers of food end-use applications
2 Drivers of food end-use applications European consumer packaging demand European food consumer packaging demand by end-use application (%) by food application (%) Other food Confectionery Non food 16% 14% 24% Fresh fruit & vegetables 3% Frozen foods 14% Dairy products & ice cream 7% 7% Snacks 13%
Slide 17: Drivers of food end-use applications
2 Drivers of food end-use applications Demographic and What does this mean Mondi’s focus social changes for food packaging? Aging population Convenience: Value added applications Increasing smaller or Ready meals attractive in terms of: single households Smaller sized packages Size C
Slide 18: Pet Care activities
3 Pet Care activities Products Overview Sales 2012: 17% 10 Plants: Békéscsaba, Halle, Jackson, Korneuburg, NovaSac, Poznan, Slavnika, Solec, Steinfeld, Szada Main products: (Retort) rollstock laminates Pre-made bags (plastic, hybrid paper-based, polywoven) (Retort) stand-up pouches Key c
Slide 19: Development of pet food packaging
3 Development of pet food packaging Hooded top slider One-ply Multiwall Plastic paper bags paper bags bags Paper- based bags Aluminum Reclosable cans Aluminum bags tray Retortable Sausage stand-up casing pouch 1930 1940 1950 1960 1970 1980 1990 2000 Pac k aging Paper | F ibr e Pac k aging | Co n sum
Slide 20: Packaging requirements of pet owners
3 Packaging requirements of pet owners Average size of households is declining, less time to prepare Pet humanisation, health meals and food (work-life balance), awareness, “emotional” buying more feeding “on-the-go” Adjustment in package sizes Attractive packaging to (single serve) differentiat
Slide 21: European Pet Care packaging
3 European Pet Care packaging Pet care packaging 2012 / 2011 growth (%) Overview Pet care packaging represents approximately 4.5% 5.5% of the European consumer packaging market Market has experienced strong growth due to 4.5% increased pet ownership and pet “humanisation” trends (urbanisation, r
Slide 22: Innovation pipeline
Innovation pipeline Idea Generation Feasibility Study Development Commercialisation Product concept Prototype on Groupwide Large scale Analysis of pilot scale identification of production technical and Identification of new potentials Market launch market feasibility lead customer Idea Generation Id
Slide 23: FlexZiBox for catlitter
FlexZiBox for catlitter Material saving to optimise the whole supply chain Eleven pallets of packaging material with the old concept ONE pallet of packaging material with the new Mondi solution Pac k aging Paper | F ibr e Pac k aging | Co n sumer Packaging | Unc oated Fine Paper | South Af r ic a
Slide 24: Focus on performance: integration process
Focus on performance: integration process Value Evaluation and Process standardization Second Evaluation upside identification Align benefit calculation Continuous improvement organisation Operations Film in sourcing Proc. organisation Main proc. categories Procurement Cross BU synergies Head count
Slide 25: Challenges and opportunities
Challenges and opportunities Challenges Increasing food regulation (however an advantage vs. smaller players) Raw material cost increases (however, approximately 75% of sales with pass trough provisions) European economic environment Opportunities Grow by product innovation and technological
Slide 26: Summary
Summary Group strategic framework Consumer Packaging value drivers Leading positions in chosen end-use applications, especially hygiene Achieve leading and pet food market positions High-quality asset base with vertical integration along the full value chain Maintain a high- quality, low-cost
Slide 27: Appendices
Appendices
Slide 28: Consumer Packaging market information sources and definitions (1/2)
Consumer Packaging market information sources and definitions (1/2) Sources PCI: Global Flexible Packaging Trends to 2016, PCI Films Consulting Ltd, July 2012. The European Flexible Packaging Market to 2017, PCI Films Consulting Ltd, July 2013. PCI regional definitions: Western Europe Austria, Benel
Slide 29: Consumer Packaging market information sources and definitions (2/2)
Consumer Packaging market information sources and definitions (2/2) Sources Euromonitor: Euromonitor Tissue and Hygiene Passport database, as of July 2013. Euromonitor regional definitions: Western Europe Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norwa
Slide 30: Consumer Packaging ROCE benchmark notes
Consumer Packaging 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, defe
Slide 31: Forward-looking statements
FORWARD - LOOKING STATEMENTS It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations of market growth and developments; expectations of growth and profitability; and statements preceded by “believes”, “expects”, “an