Slide 1: UBS basic materials conference
UBS basic materials conference June 2010
Slide 2: Group overview and strategy
Group overview and strategy Financial results Summary Appendices Presenter James Paterson Group Treasurer Page 2
Slide 3: Mondi at a glance
Mondi at a glance Bags & Newsprint and UFP Specialities Corrugated South Africa MPSA merchant €1.4B €1.8B €1.0B €0.5B €0.5B €0.5B 9% 2009 9% Sales 24% (1) 8% 32% 18% 2009 EBIT % 10.8% 4.5% 2.3% 6.7% 7.2% 2.1% Products Europe South Africa Europe/SA Positions l No. 1 in Office l No. 1 in Kraft Paperl
Slide 4: Three key pillars to our strategy
Three key pillars to our strategy Leading market Build on leading positions in packaging and uncoated fine paper positions (UFP), particularly in emerging markets + Maintain position as lowest cost producer in our markets: High quality, low l Selectively investing in production capacity in lower cos
Slide 5: Significant exposure to good growth emerging markets supported by strong asset base
Significant exposure to good growth emerging markets supported by strong asset base Leading market Revenue by destination Revenue by origin positions l Leading market 47% 42% 53% 58% positions l High exposure to good growth geographies Emerging markets Mature markets Virgin based production Net oper
Slide 6: Emerging market asset base leads to low cost positions across the group's main grades
Emerging market asset base leads to low cost positions across the group’s main grades… Leading market Percentage of Mondi's capacity in overall cost curve at Feb 2010 1 positions st nd rd th Grade 1 Quartile 2 Quartile 3 Quartile 4 Quartile + Unbleached Sack Paper 24% 4% 53% 19% High quality, low NS
Slide 7: Integrated value chain
Integrated value chain Leading market Pulp Virgin Containerboard positions 4.0 1.2 3.5 0.4 1 3.0 0.7 0.3 0.3 + 2.5 0.8 Millions 2.0 Millions 0.3 0.6 High quality, low of tonnes 1.5 1.0 2.7 3.1 of tonnes 0.4 0.8 cost asset base 0.5 0.2 0.2 0.5 0.0 (0.4) (0.5) Production Consumption Net long/(short) 0
Slide 8: Profitability improvements
Profitability improvements Leading market Cost savings COSTand % of -prior SAVINGS year cash €251 MILLION YTD cost base Cost structure 2009 positions Depreciation 275 3.1% 2.4% 5.4% Other net and amortisation operating + 250 225 251 expenses 6% 7% Wood, pulp Other and fibre 200 High quality, low Mai
Slide 9: Major mills' modernisation programme
Major mills’ modernisation programme Leading market Expansionary capital spend 2004 to 2009 Coming to the end of 10 year programme of modernising its asset positions South Africa base 7% Almost €3 billion spent on + 29% Emerging Europe, incl Russia expansionary projects Rest of world (mainly Western
Slide 10: Rigorous asset management
Rigorous asset management Leading market Closures and Divestitures1 positions ~950,000 tonnes annual capacity of high cost paper removed in just over + + sale of 5 European two years High quality, low paper Europe & International 6 merchant, cost asset base 5 Europapier ~700,000 tonnes South Africa
Slide 11: Corrugated restructuring
Corrugated restructuring European Recycled Fluting Supply Delivered costs to Frankfurt Corrugated Business EU footprint 500 EUR/t Before: After: (CEE focus) 450 400 350 New Mondi PM7 300 Weighted av. cost Pre restructuring 250 and investment in CEE Light Weighted av. cost 200 Post restructuring and
Slide 12: Group overview and strategy
Group overview and strategy Financial results Summary Appendices Page 12
Slide 13: Trading highlights from May IMS
Trading highlights from May IMS Continued improvement in European trading environment Volumes continue to recover in most areas upward selling price momentum in key grades ongoing positive impact from restructured cost base In part, mitigated by commodity input cost pressures South Africa Division b
Slide 14: Group overview and strategy
Group overview and strategy Financial results Summary Appendices Page 14
Slide 15: Summary
Summary 2009 characterised by a resilient performance in challenging conditions Focus on cash and costs helped offset revenue pressures and provided substantial cash inflow from operations Restructuring initiatives enhancing the Group’s overall cost competitiveness and consolidating a leading cost p
Slide 16: Appendices
Group overview and strategy Financial results Summary Appendices Page 16
Slide 17: Mondi's operating sites
Mondi’s operating sites Mondi employs 30,000 people with production facilities in 31 countries Page 17
Slide 18: Superior access to low cost wood
Superior access to low cost wood Leading market Average Hardwood and Softwood costs (€/m3, Q4 2009) positions Russian wood regenerates + naturally; South African wood is High quality, low farmed, maturing in 8 years cost asset base Russian and South African costs l low cost asset are largely under o
Slide 19: Sharp focus on working capital
Sharp focus on working capital Leading market positions Working capital management + €248 million working capital cash 1,200 20% High quality, low 1,100 15.5% 18% inflow in 2009 cost asset base 1,000 14.6% 12.9% 16% Lower working capital levels 14% 11.9% + 900 12% despite Euro weakness versus € Mill
Slide 20: 2009 Key financial highlights
2009 Key financial highlights Group Revenue €6,345m Substantial cash inflow from operations of €867 million, 9% €5,257m above prior period H2 €3,082m H2 €2,643m Earnings down versus 2008 EBITDA1 down 21% at €645 million H1 H1 Underlying operating profit 2 down 33% at €294 million €3,263m €2,614m Und
Slide 21: Segment financials
Segment financials €m Segmental revenue €m Segmental EBIT EBIT % 4,000 300 9.0% 3,500 8.0% 250 3,000 7.0% 200 2,500 6.0% 2,000 150 5.0% 1,500 4.0% 100 1,000 3.0% 50 500 2.0% 1.0% HY1 2008 HY2 2008 HY1 2009 HY2 2009 HY1 2008 HY2 2008 HY1 2009 HY2 2009 (50) 0.0% Uncoated Fine Paper Corrugated Uncoated
Slide 22: Adequate debt facilities available
Adequate debt facilities available H2 H1 H2 € Millions 2008 2009 2009 Net debt 1,690 1,661 1,517 Committed facilities 2,752 2,838 2,542 Of which undrawn 1,062 1,073 990 Gearing (Net debt / Trading capital employed) 39% 38% 35% Trading capital employed 4,368 4,384 4,356 Net Debt / 12 month EBITDA (ti
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