Download - Mondi E&I company presentation March 2013
Europe & International
Presentation
Status March 2013
Stability
Europe & International Presentation March 2013 Page 1 SOLUTIONS. FOR YOUR SUCCESS.
A four pillar strategy is the key driver of our mutual success: achieving leading
market positions, maintaining high-quality, low-cost asset base, growing through
customer focused development and a continuous focus on performance.
SOLUTIONS. FOR YOUR SUCCESS.
Mondi Group
Europe & International Presentation March 2013 Page 2
Mondi is an international packaging
and paper Group, with production
operations across 30 countries and
25,700 employees.
Its key operations and interests are in
central Europe, Russia, South Africa
and emerging markets.
SOLUTIONS. FOR YOUR SUCCESS.
Mondi Group
Europe & International Presentation March 2013 Page 3
Key Figures Mondi Group
Mondi had revenues from continuing
operations of €5.8 billion in 2012 and
is a dual listed company at the
London Stock Exchange (LSE) and
Johannesburg Stock Exchange
(JSE).
1 The Group presents underlying EBITDA as measure which excludes special item in order to provide a more effective
comparison of the underlying financial performance between reporting periods 2 ROCE is underlying profit expressed as a percentage of the average capital employed for the year, adjusted for
impairments and spend on strategic projects which are not yet in operation.
SOLUTIONS. FOR YOUR SUCCESS.
Business structure Mondi Group
Europe & International Presentation March 2013 Page 4
Consumer Goods
Packaging
Advanced Films & Components
Corrugated Packaging Containerboard
Industrial Bags
South Africa Europe &
International (E&I)
Forests
Fibre Packaging Packaging Paper Consumer Packaging
Pulp
Uncoated Fine Paper
Kraft Paper
Extrusion Coatings
Release Liner
Uncoated Fine Paper
Containerboard
Newsprint
SOLUTIONS. FOR YOUR SUCCESS.
Integrated value chains
Europe & International Presentation March 2013 Page 5
SOLUTIONS. FOR YOUR SUCCESS.
Corporate history milestones
Europe & International Presentation March 2013 Page 6
1967 Founding of Mondi, South Africa
1997 Acquisition of Świecie,
one of Poland’s
largest paper mills
2000 Acquisition of majority of
Frantschach by Mondi
Acquisition of 50% of the
Ružomberok UFP & pulp mill,
Slovak Republic
Acquisition of the kraft paper,
industrial bags and extrusion
coatings businesses of
AssiDomän
Start-up of Extrusion Coatings,
Release Liner and
Consumer Packaging
2002 Increased ownership
of the Syktyvkar mill,
Russia, to over 90%
2004 Acquisition of
the Roman
Bauernfeind
group
2007 Demerger of the Mondi Group from
Anglo American plc and dual listing
on the London and Johannesburg
stock exchanges
Acquisition of 54% of the Turkish
corrugated packaging business
Tire Kutsan
2008 New corporate
structure
announced, Europe
& International
Division and South
Africa Division
created
2009 Completion of the
investments of
€285m in the new
lightweight recycled
containerboard
machine ECO7 and
€45m in the new
state-of-the-art
corrugated box plant
in Świecie, Poland
1793 Founding of the
Neusiedler paper
mill, Austria
1881 Founding of the pulp
and paper mill
Frantschach, Austria
2010 Acquisition of the Western
European industrial and
consumer bags businesses of
Smurfit Kappa
Completion of the €545m
investment in the extension
and modernisation of the
Syktyvkar mill, Russia
2012 Acquisition of the remaining shares
in Mondi Świecie S.A., Poland
Acquisition of NORDENIA INTERNATIONAL AG
Acquisition of Duropack operations in Germany
and Czech Republic
SOLUTIONS. FOR YOUR SUCCESS.
The Mondi Way
Europe & International Presentation March 2013 Page 7
To create solutions for our customers’ success,
delivering exceptional value in a sustainable way
Purpose
Passion for performance
Caring
Acting with integrity
Values
Leading market positions
High-quality, low-cost asset base
Customer focused development
Focus on performance
Strategy
Operational Excellence
People Development
Sustainable Development
Cutting Edge
Products
Customer
Focus
Mondi Diamond
Dynamic
Respectful
Responsible
Entrepreneurial
Empowered
Transparent
Culture
SOLUTIONS. FOR YOUR SUCCESS.
The Mondi Diamond
Europe & International Presentation March 2013 Page 8
People Development
● Inspire and develop
people
● Promote excellence in
leadership
● Shape our culture and
embrace diversity
Sustainable Development
● Care about health and
safety
● Reduce environmental
impacts and engage in
sustainable forestry
● Put social responsibility
into practice
Cutting Edge Products
● Ensure shared product development
and success with customers
● Create competitive advantages with
leading high-quality products and brands
● Leverage expertise and create tailor-
made solutions
Operational Excellence
● Maximise equipment and
process efficiencies
● Focus on quality and
productivity
● Improve cost competi-
tiveness and operational
activities
Customer Focus
● Understand market and
customer needs
● Strive for flawless service
and on-time delivery
● Facilitate sustainable
partnerships and measure
success
SOLUTIONS. FOR YOUR SUCCESS.
Mondi Europe & International
Europe & International Presentation March 2013 Page 9
Key Figures
The Europe & International Division (E&I), headquartered in
Vienna, has 100 production sites in 29 countries and about
24,000 employees.
Our division consists of the Packaging Paper, Fibre Packaging,
Consumer Packaging and Uncoated Fine Paper businesses.
We are specialists in:
● Containerboard
● Kraft paper
● Corrugated packaging
● Industrial bags
● Extrusion coatings
● Release liner
● Consumer goods packaging
● Advanced films and components
● Office and professional printing paper
1 Excluding E&I intra-business unit revenue. 2 Operating profit from continuing operations before special items.
Underlying operating profit2 €538m €611m (11.9%)
Packaging Paper €227m €295m (23.1%)
Fibre Packaging €101m €86m 17.4%
Consumer Packaging €19m €25m (24.0%)
Uncoated Fine Paper €191m €205m (6.8%)
Revenue1 €5,196m €5,162m 0.7%
Packaging Paper €1,896m €2,006m (5.5%)
Fibre Packaging €1,860m €1,881m (1.1%)
Consumer Packaging €502m €372m 34.9%
Uncoated Fine Paper €1,466m €1,429m 2.6%
Mondi E&I 2012 2011 Change
SOLUTIONS. FOR YOUR SUCCESS.
Mondi Europe & International network
Europe & International Presentation March 2013 Page 10
100 operations in 29 countries
*
* Operational by early 2014
SOLUTIONS. FOR YOUR SUCCESS.
Mondi Europe & International
Europe & International Presentation March 2013 Page 11
1,213 million m2
3,352 million m2
121 ktonnes
3,829 million units
Production Statistics 2012
Corrugated
board and boxes
Industrial
bags
Extrusion coatings
and release liner
Consumer
packaging
Containerboard
Kraft paper
Uncoated fine paper
Market pulp
Newsprint
Total pulp an paper
2,079 ktonnes
981 ktonnes
1,418 ktonnes
239 ktonnes
201 ktonnes
4,918 ktonnes
SOLUTIONS. FOR YOUR SUCCESS.
Market Shares in Europe* No. 1 No. 2 No. 3
Packaging Paper Virgin containerboard1
Kraft paper2
Fibre Packaging
Industrial bags3
Extrusion coatings4
Release liner5
Uncoated
Fine Paper
Uncoated fine paper6
Office paper6
Emerging Europe** No. 1 No. 2 No. 3
Packaging Paper Recycled containerboard1
Fibre Packaging Corrugated packaging7
A top player in Europe
Europe & International Presentation March 2013 Page 12
* Europe including Russia and Turkey.
** Albania, Armenia, Azerbaijan, Belarus, Bosnia
and Herzegovina, Bulgaria, Croatia, Cyprus,
Czech Republic, Estonia, Georgia, Hungary,
Latvia, Lithuania, Macedonia, Malta, Moldova,
Montenegro, Poland, Romania, Serbia, Slovakia,
Slovenia, Turkey, Ukraine.
1) Based on capacity. Source: RISI Top European
Paper Packaging Producers in 2012 and
management estimates.
2) Based on capacity. Source: Pöyry World of
Paper Market up to 2025, RISI Mill Asset
Database, Pöyry Smart Terminal Service and
management estimates.
3) Based on sales volume. Source: Eurosac,
Freedonia World Industrial Bags 2011 study, AMI
2012 study prepared for Mondi and management
estimates.
4) Based on sales. Source: AWA Extrusion
Coated Material European Market Study 2008,
Dun & Bradstreet and management estimates.
5) Based on sales volume in the commercial
market. Source: AWA Release Liner Markets
Global Review 2012 & AWA Industry Survey,
September 2012 report and management
estimates.
6) Based on sales volume. Source: EMGE
Woodfree Report, December 2011, Eurograph
delivery statistics 2012, Pyrabelisk and
management estimates.
7) Based on production. Source: Henry Poole
Consulting 2012 and management estimates.
15%
20%
12%
22%
24%
7%
14%
16%
9%
SOLUTIONS. FOR YOUR SUCCESS.
Business structure Europe & International
Europe & International Presentation March 2013 Page 13
Packaging Paper Fibre Packaging Consumer Packaging
Consumer Goods
Packaging
Advanced Films &
Components
Containerboard Corrugated
Packaging
Industrial Bags
Uncoated Fine Paper
Extrusion Coatings
Release Liner
Kraft Paper
Customer focus
Europe & International Presentation March 2013 Page 14 SOLUTIONS. FOR YOUR SUCCESS.
Our commitment to excellent customer service is reflected in our strong focus on
tailor-made and innovative solutions.
5 mills
11 sales offices
Solutions for raw material savings.
Major European supplier of virgin and recycled
containerboard
High-speed lightweight recycled containerboard
machine ECO7, located in Central Europe at
Świecie mill in Poland
New white top kraftliner quality that meets
increased customer expectations
High-quality containerboard grades for efficient
packaging solutions with minimum environmental
impact and maximum customer benefit
Packaging Paper – Containerboard
March 2013 Page 15
Appearance Kraft Semi Chem Recycled
SOLUTIONS. FOR YOUR SUCCESS. Europe & International Presentation
SOLUTIONS. FOR YOUR SUCCESS.
Packaging Paper – Kraft paper
Europe & International Presentation March 2013 Page 16
Solutions. Economical and environmental.
Broad range of high-quality sack kraft and
speciality kraft papers
Based on virgin fibre sourced in accordance with
international forestry certification schemes
Experts in translating customer requirements into
tailored packaging solutions
Ecologically sound products from the Mondi
Green Range
Speciality kraft
paper
Sack kraft
paper Market
pulp
6 mills
9 sales offices
3 R&D centres
SOLUTIONS. FOR YOUR SUCCESS.
Fibre Packaging – Corrugated packaging
Europe & International Presentation March 2013 Page 17
Experts in tailor-made corrugated packaging
solutions.
Leading manufacturer of corrugated packaging in
central and emerging Europe
Full range of individual and tailor-made
corrugated packaging solutions for a variety of
industries, including the food, consumer goods
and automotive sectors
Network of product innovation managers and
research & development-dedicated infrastructure
and tools
Heavy-duty
packaging
Top & bottom
solutions
Fruit &
vegetable trays
Shelf-ready
packaging
1 paper mill
17 plants
6 sales offices
SOLUTIONS. FOR YOUR SUCCESS.
Fibre Packaging – Industrial bags
Europe & International Presentation March 2013 Page 18
Bag expertise at your service.
A trusted leader with operations in 28 countries,
ensuring international presence and local service
across an integrated value chain
Development of improved processes and tailor-
made solutions together with our customers
Technical bag expertise at its best through
extensive know-how in paper, bag converting and
filling equipment
Bag to nature – Sustainable industrial bag
solutions from the Mondi Green Range
Product security High-speed filling Food safety
37 plants
7 sales offices
1 R&D centre Easy handling
SOLUTIONS. FOR YOUR SUCCESS.
Fibre Packaging – Extrusion coatings
Europe & International Presentation March 2013 Page 19
Tailor-made barrier solutions for our
customers’ needs.
High-quality, cost- and energy-efficient technical
solutions for various industries, including the
automotive, building, food, industrial paper and
packaging, medical and pharmaceutical as well
as graphical sectors
Extrusion coating and laminating for functional
enhancement of various substrates, such as
paper, board, films, nonwovens and scrims
Medical
packaging
Insulation
facers
Building
membranes
5 plants Dehydrated
food packaging
SOLUTIONS. FOR YOUR SUCCESS.
Fibre Packaging – Release liner
Europe & International Presentation March 2013 Page 20
Solutions for your self-adhesive products.
Tailor-made silicone-coated and specialty release
liners, specifically designed for pressure-sensitive
applications
Applications served include graphic arts, medical,
hygiene, fibre composites, tapes, labels and
many more
With our transatlantic operations, we offer high-
quality and competitive product and service
solutions as well as stable and reliable supply
chain to our customers
Graphic arts Labels Tapes
10 plants
2 converting terminals Hygiene
SOLUTIONS. FOR YOUR SUCCESS.
Consumer Packaging – Consumer goods packaging
Europe & International Presentation March 2013 Page 21
Flexible packaging solutions for maximum
performance.
Attractive and convenient packaging for the
consumer goods industry
High-quality laminates and barrier materials are
converted into a broad range of flexible packaging
solutions, such as (retortable) stand-up pouches,
reclosable plastic bags, paper-based bags and
microwaveable packaging
The majority of production sites are BRC/IoP and
ISO 9001:2008 certified, ensuring highest quality
and hygiene standards
Printed laminates
and films
Paper-based
bags (Retort) stand-up
pouches
16 plants
6 sales offices
2 R&D centres (together with
Advanced Films & Components) Reclosable
plastic bags
SOLUTIONS. FOR YOUR SUCCESS.
Consumer Packaging – Advanced films and components
Europe & International Presentation March 2013 Page 22
Advanced technology. Advanced solutions.
Specialist for blown and cast film extrusion with
in-depth-knowledge about the development and
production of film based solutions
Leading supplier for innovative diaper
components and siliconised films for the hygiene
industry
Trusted partner for international label stock
producers
Full range supplier for laminating films and
specialist for automotive, technical and industrial
applications
Surface protection
films
Converter
(barrier) films Hygiene
components
3 plants
2 R&D centre (together with
Consumer Goods Packaging) Label
films
SOLUTIONS. FOR YOUR SUCCESS.
Uncoated Fine Paper – Office paper
Europe & International Presentation March 2013 Page 23
4 mills
13 sales offices
Solutions for successful communication.
A complete office portfolio: premium,
everyday paper and a full tinted range
Wide range of whiteness levels, textures,
grammages and recycled grades for all your
office applications
Achieves optimal results on laser, inkjet and
copy machines
Green Range = the highest ecological standards
for office users
Snegurochka IQ color/
MAESTRO® color IQ/MAESTRO® Color Copy
SOLUTIONS. FOR YOUR SUCCESS.
Uncoated Fine Paper – Professional printing paper
Europe & International Presentation March 2013 Page 24
4 mills
13 sales offices
Solutions for successful communication.
Full range of digital printing papers: Color Copy,
DNS®, BIO TOP 3®, NAUTILUS®
Wide portfolio of smooth, high-white/white, off-
white, recycled, colored and coated papers
Green Range = the highest ecological standards
for professional printers (digital, offset & pre-
print papers)
Converting solutions for specialised products
Converting BIO TOP 3® next DNS® Color Copy
Sustainability
Europe & International Presentation March 2013 Page 25 SOLUTIONS. FOR YOUR SUCCESS.
Our packaging and paper products are constantly evolving to meet the changing
needs of society and the environment in which we operate.
Our approach to sustainability
Climate change
25% reduction in specific CO2e emissions (per tonne of saleable product) since 2004
58% of energy generation from renewable sources
4.3 million tonnes of CO2e emissions avoided by carbon sequestration of our plantations
and by selling green electricity, heat and fuels; using recovered paper as a raw material;
and substituting natural gas with biogas
Forestry
100% of managed forests are FSC™-certified
Some 31 million seedlings planted yearly
65% of wood procured is FSC or PEFC™-certified
598,658 hectares of our leased or owned forestry land (about 25% of our landholding) are
set aside for conservation
Europe & International Presentation March 2013 Page 26
Our approach to sustainability
Water
Calculation of our water footprint at operational level
Processed water is treated at wastewater treatment plants
More than 19,500 hectares of wetlands in South Africa are assessed and rehabilitation is
initiated
Products
Lightweight solutions with up to 20% material savings
Biodegradable paper- and plastic-based solutions
Innovative features for extended product and shelf life
Roughly a third of pulp consumed is from paper for recycling
Europe & International Presentation March 2013 Page 27
Our approach to sustainability
Employees
The Mondi Academy offers around 40 technical, business and management seminars
in 9 languages
Mondi carries out a global employee survey every two years
Communities
Corporate social investment of €14.3 million in 2012
Community engagement plans in place at all mills and forestry operations
Europe & International Presentation March 2013 Page 28
Mondi won five awards in 2012 for its sustainability work, including two WWF Environmental
Paper Awards and the PPI Environmental Strategy of the Year Award 2012.
SOLUTIONS. FOR YOUR SUCCESS.
Our website
Europe & International Presentation March 2013 Page 29
For more information about Mondi please visit our website
www.mondigroup.com
Corporate
About us
Locations
Investor relations
www.mondigroup.com
Products
Served industries
Our services
Product news & events
www.mondigroup.com/products
Careers
Why talented people work
with Mondi
Meet some of our people
Career opportunities
www.mondigroup.com/careers
Sustainability
Climate change & forestry
Social performance
Environmental performance
www.mondigroup.com/sustainability
Europe & International Presentation March 2013 Page 30
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, expectations of growth and profitability and plans and objectives of management for future operations, are
forward-looking statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “believe”, “expects”, “may”, “will”, “could”, “should”,
“shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned” or “anticipates” or the negative thereof, other variations thereon or comparable
terminology. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of
Mondi, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-
looking statements and other statements contained in this document regarding matters that are not historical facts involve predictions and are based on numerous assumptions
regarding Mondi’s present and future business strategies and the environment in which Mondi will operate in the future. These forward-looking statements speak only as of the date on
which they are made.
No assurance can be given that such future results will be achieved; various factors could cause actual future results, performance or events to differ materially from those described
in these statements. Such factors include in particular but without any limitation: (1) operating factors, such as continued success of manufacturing activities and the achievement of
efficiencies therein, continued success of product development plans and targets, changes in the degree of protection created by Mondi’s patents and other intellectual property rights
and the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for
Mondi’s products and raw materials and the pricing pressures thereto, financial condition of the customers, suppliers and the competitors of Mondi and potential introduction of
competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in Mondi’s principal geographical markets or fluctuations
of exchange rates and interest rates.
Mondi expressly disclaims
a) any warranty or liability as to accuracy or completeness of the information provided herein; and
b) any obligation or undertaking to review or confirm analysts’ expectations or estimates or to update any forward-looking statements to reflect any change in Mondi’s expectations or
any events that occur or circumstances that arise after the date of making any forward-looking statements,
unless required to do so by applicable law or any regulatory body applicable to Mondi, including the JSE Limited and the LSE.
SOLUTIONS. FOR YOUR SUCCESS.