Mondi Plc · LSE:MNDI
Mondi — Debt Investor Presentation (May 2024)
33 slides from Mondi's debt investor presentation, May 2024
Slide 1: Fixed income investor presentation
Fixed income investor presentation May 2024 Mike Powell, CFO James Paterson, Group Treasurer
Slide 2: Disclaimer
Disclaimer The information and the opinions in this presentation have been prepared by Mondi plc (Mondi). This presentation and its contents are strictly confidential, are intended for use by the recipient for information purposes only and may not be reproduced in any form or further distributed to
Slide 3: A market leader in sustainable packaging
A market leader in sustainable packaging • Broad & innovative product range in structurally growing markets • High-quality, integrated asset base • Strong cash generation with robust balance sheet • Disciplined capital allocation strategy • Investment through-cycle for value accretive growth • Contr
Slide 4: Mondi has leading positions in packaging and paper markets
Mondi has leading positions in packaging and paper markets Revenue split Corrugated Flexible Uncoated by end market Packaging Packaging Fine Paper We produce containerboard We produce kraft papers for We offer a wide range of home, from fresh, recycled and mixed strong, paper-based packaging office,
Slide 5: Mondi at a glance (2023)
Mondi at a glance (2023) Products Segment Underlying ROCE End uses revenue1 EBITDA (12-month & margin rolling) Corrugated €2,280m €310m 7.7% Packaging (31%) 13.6% Flexible €3,866m €637m Packaging 14.4% (52%) 16.5% Uncoated Fine €1,292m €289m Paper 20.6% (17%) 22.4% 1. Segment revenue percentages exc
Slide 6: A global packaging platform…
A global packaging platform… Corrugated Packaging 6 mills, 18 converting plants Production sites per business unit Corrugated Packaging Mill (6) Converting plant (18) Flexible Packaging Mill (6) Converting plant (67) Uncoated Fine Paper Mill (5) Flexible Packaging Group offices 6 mills, 67 convertin
Slide 7: …providing a range of multi-material solutions
…providing a range of multi-material solutions For example, our eCommerce customers can choose between kraft and functional barrier paper, paper bags and corrugated solutions which all provide protection, reseal for return and sustainability benefits Corrugated packaging Flexible packaging BOXES BAG
Slide 8: Our Sustainability Framework
Our Sustainability Framework Circular Driven Solutions − Make all our packaging and paper solutions reusable, recyclable or compostable. − Avoid waste by keeping materials in circulation. − Work with Others to eliminate unsustainable packaging. Created by Empowered People − Build skills that support
Slide 9: We’re recognised as a leader in sustainability
We’re recognised as a leader in sustainability Transition Pathway Initiative 4 Transition Pathway Initiative Highest 3 climate change score in the paper Highest sector, climate with score change a 3 Level in the 4paper management quality 1 2 Sustainalytics EcoVadis ISS ESG sector, with a 1 rating an
Slide 10: Strong financial performance provides strategic flexibility
Strong financial performance provides strategic flexibility 10 March 2024
Slide 11: Underlying EBITDA and ROCE
Underlying EBITDA and ROCE 2014 – 2023 results € million and % 40.0% 35.0% 30.0% 25.0% 23.6% 23.7% 20.0% 20.5% 20.3% 19.8% 19.3% 17.2% 15.0% 15.2% 13.9% 12.8% 10.0% 5.0% 1,126 1,325 1,366 1,482 1,764 1,658 1,353 1,157 1,848 1,201 0.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ROCE (%) Exclud
Slide 12: Disciplined capital allocation strategy
Disciplined capital allocation strategy Growing through selective capital investment opportunities Free cash flow Supporting payment of ordinary dividends to our shareholders priorities Evaluating growth opportunities through M&A and/or increased shareholder distributions While maintaining our stron
Slide 13: Strong value accretion balancing investing for growth and distributing returns
We have delivered strong value accretion balancing investing for growth and distributing returns Cash generated from operations over the last 10 years € billion Strong cash Investing in Taking Divesting Returning Change in net generation our cost advantage of non-core and capital to our debt and oth
Slide 14: Investing through cycle for value accretive growth
Investing through cycle for value accretive growth Expected to deliver through cycle mid-teen-returns when fully operational Corrugated Packaging Flexible packaging Pulp and paper Pulp and paper mills mills €0.4 bn €0.4 bn €1.2 bn €0.2 bn €0.2 bn Converting Converting network network 80% of investme
Slide 15: Capital structure and Financial policies
Capital structure and Financial policies 15
Slide 16: Capital structure & financial policies
Capital structure & financial policies Disciplined approach to leverage ● Capital structure to maintain investment grade credit metrics ● Articulated as a key strategic objective No financial covenants ● Net Debt/underlying EBITDA of 0.3x as at 31 December 2023 ● Adjusting for the special dividend p
Slide 17: Robust financial position
Robust financial position Net debt and net debt to 12-month trailing underlying EBITDA € million and times 1.9 1.5x 1.4x 1.3x 1.3x 1.3x 1.4 1.1x 1.0x 1.0x 1.0x 0.9 0.5x 0.4 Pro-forma -0.1 1,613 1,498 1,383 1,532 2,220 2,207 1,791 1,763 1,011 1,195 -0.6 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 18: Interest and net debt
Interest and net debt € million 2023 Net debt 419 ● Maintaining strong investment grade credit metrics Pro-forma net debt 1 1,195 ● Pro-forma net debt to EBITDA is 1.0x after adjusting for Net finance costs 73 the disposal of the Russian operations Committed facilities 2 2,624 ● Substantial availabl
Slide 19: Committed debt facilities
Committed debt facilities Committed facilities €2,124m Maturity profile of committed facilities € million Of which €1,370m is drawn 1,750 1,500 1,250 750 1,000 750 6 500 750 250 600 7 7 4 - 2024 150 2025 2026 2027 2028 > 2028 Bond RCF facility Other facilities Mondi Group at 30 April 2024, after rep
Slide 20: Credit ratings
Credit ratings Moody’s S&P Issuer Rating: Baa1 Long-Term Corporate Credit Rating: A- Outlook Stable Outlook Stable “ …One of Mondi's key credit strengths is its high “…Mondi PLC continues to generate strong earnings and profitability… which positions the company strongly in its operational cash flow
Slide 21: Appendix
Appendix 21
Slide 22: Integrated value chain
Integrated value chain Containerboard3 Corrugated Packaging 1.3 mt Wood Containerboard 12.8 million m3 2.3 mt Corrugated solutions 1.9 billion m2 Box plants Paper for recycling Pulp 1.3 million tonnes (mt) 3.2 mt Kraft paper3 Consumer Flexible Packaging 0.4 mt flexibles 1.8 billion m2 Kraft paper Ot
Slide 23: Resilient financial performance
Resilient financial performance Underlying Cash generated Basic underlying Ordinary EBITDA from operations ROCE EPS DPS € million € million % € cents € cents 1,157 1,848 1,201 1,001 1,292 1,312 13.9 23.7 12.8 110.1 195.6 107.8 65 70 70 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021
Slide 24: Financial review
Financial review € million 2023 2022 % change Underlying EBITDA 1,201 1,848 (35%) Depreciation, amortisation and impairments (411) (405) 1% Underlying operating profit 790 1,443 (45%) Other (8) 18 Underlying net finance costs (73) (143) (49%) Underlying profit before tax 709 1,318 (46%) Underlying t
Slide 25: Cash flow (reconciling to movement in net debt)
Cash flow (reconciling to movement in net debt) € million 2023 2022 % change Underlying EBITDA 1,201 1,848 (35%) Working capital movements 229 (419) Other operating cash flow items (118) (137) Cash generated from operations 1,312 1,292 2%) Cash generated from operating activities of discontinued ope
Slide 26: Statement of financial position
Statement of financial position December December € million 2023 2022 Property, plant and equipment 4,619 4,167 Goodwill 765 769 Working capital 1,084 1,282 Other assets 677 654 Other liabilities (630) (664) Net assets held for sale - 1,057 Net assets excluding net debt 6,515 7,265 Equity 5,655 5,79
Slide 27: Investment pipeline: Corrugated Packaging
Investment pipeline: Corrugated Packaging Kuopio Świecie Duino Corrugated Solutions (Finland) (Poland) (Italy) network • Investment of €125 million for • Investment of €95 million for • Investing €200 million to convert • Investing across our central and 55,000 tonnes of additional 55,000 tonnes add
Slide 28: Investment pipeline: Flexible Packaging
Investment pipeline: Flexible Packaging Štětí Expanding leading global Growing consumer offering (Czech Republic) paper bags network with innovative solutions • Investing €400 million in a new • Ramping up investments in • Consolidating our leading 210,000 tonne kraft paper Colombia and Morocco posi
Slide 29: Corrugated Packaging - Business unit overview
Corrugated Packaging - Business unit overview Business overview What we produce ● A leading producer of corrugated packaging Underlying EBITDA of with a cost-competitive asset base and strong customer offering focused on quality and €310 million1 reliability. Chart Title ● Integrated production netw
Slide 30: Flexible Packaging - Business segment overview
Flexible Packaging - Business segment overview Business overview What we produce ● Integrated across the value chain with a unique Underlying EBITDA of portfolio of solutions €637 million1 ● A global leader in the production of kraft paper and paper bags, our well-invested mills Chart Title produce
Slide 31: Uncoated Fine Paper - Business segment overview
Uncoated Fine Paper - Business segment overview Business overview What we produce ● Produces a wide range of home, office, Underlying EBITDA of converting and professional printing papers at €289 million1 our mills in central Europe and South Africa 2023 ● In South Africa, produces and sells market
Slide 32: Sources and definitions
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, Latvia, Lithuania, Macedonia, Malta, Moldova, Montenegro
Slide 33: Mondi: Forward-looking statements disclaimer
Mondi: Forward-looking statements disclaimer This document (along with any oral statements made in connection with it) includes forward-looking statements. All statements other than statements of historical facts included herein, including, without limitation, those regarding Mondi’s financial posit