mondi e&i company presentation september 2015
TRANSCRIPT
Europe & International
Presentation
Status: September 2015
IN TOUCH EVERY DAY
Our products touch the lives of millions,
every day.
September 2015 Europe & International presentation Page 1
September 2015 Europe & International presentation Page 2
International. Every day.
We act locally. At around 100 sites.
Worldwide.
Mondi Group
We are an international packaging and paper Group, employing around
25,000 people across more than 30 countries.
Our key operations are located in central Europe, Russia, North America and
South Africa.
September 2015 Europe & International presentation
Europe &
International (E&I)
Division
South Africa
Division
Corrugated
Packaging
Fibre Packaging
Industrial Bags
Extrusion
Coatings
Advanced
Materials
Consumer
Packaging
Consumer Goods
Packaging
Uncoated Fine
Paper
Uncoated Fine
Paper
Containerboard
Pulp
Containerboard
Packaging Paper
Sack Kraft
Paper
Speciality Kraft
Paper
Page 3
Mondi Group – Key figures
In 2014 Mondi had revenues of €6.4 billion and a ROCE of 17.2%. The Group is
listed on both the London Stock Exchange (LSE) and Johannesburg Stock
Exchange (JSE).
September 2015 Europe & International presentation Page 4
1 The Group presents underlying EBITDA and operating profit as measures which exclude special items in order to provide a more effective comparison of the underlying financial
performance of the Group between financial 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.
HY 1/2015 HY 1/2014 2014
Revenue €3,459m €3,148m €6,402m
Underlying EBITDA1 €671m €553m €1,126m
Underlying operating profit1 €490m €377m €767m
ROCE2 19.0% 16.0% 17.2%
Mondi Group
Mondi Group – Network
Mondi operates locally with more than 100 operations across more than
30 countries.
September 2015 Europe & International presentation Page 5
Our history
September 2015 Europe & International presentation Page 6
1967
Founding of Mondi
1793
• Founding of the Neusiedler paper
mill, Austria
1881
• Founding of the pulp and paper mill
Frantschach, Austria
1997
• Acquisition of Świecie, one of Poland’s
largest paper mills
2000
• Acquisition of majority of Frantschach
• 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%
2010
• Acquisition of the Western European
industrial and consumer bags businesses
of Smurfit Kappa
• Completion of the extension and
modernisation of Syktyvkar, Russia
2007
• Demerger of the Mondi Group from Anglo
American plc
• Acquisition of majority stake in
Tire Kutsan, Turkey
2009
• Start of new lightweight recycled
containerboard machine ECO7 and
corrugated box plant in Świecie, Poland
2012
• Acquisition of
NORDENIA INTERNATIONAL AG
• Acquisition of Duropack operations in
Germany and Czech Republic
2014
• Acquisition of the industrial bags and kraft
paper business of Graphic Packaging
International, USA
2013–2016
• Over €500 million allocated to major
strategic capital projects
To create solutions for our customers’ success,
delivering exceptional value in a sustainable way.
● Passion for performance
● Caring
● Acting with integrity
● Dynamic
● Respectful
● Responsible
● Entrepreneurial
● Empowered
● Transparent
● Operational excellence
● People development
● Sustainable development
● Cutting edge products
● Customer focus
● Leading market positions
● High-quality, low-cost asset base
● Customer focused development
● Focus on performance
Purpose
Values
The Mondi Way
September 2015 Europe & International presentation Page 7
Strategy
The Mondi Diamond
Culture
The Mondi Diamond
September 2015 Europe & International presentation Page 8
Operational Excellence Cutting Edge Products Sustainable Development
Customer Focus People Development
We focus on
● Listening to our customers
to deliver exceptional
value
● Creating competitive
advantages with high-
quality products and
brands
● Leveraging our global
expertise to create tailor-
made solutions
We focus on
● Maximising equipment and
process efficiencies
● Delivering on quality and
productivity expectations
● Improving cost
competitiveness
We focus on
● Achieving Zero Harm and
providing a healthy work
environment
● Practicing sustainable forestry
● Increasing resource efficiency
and minimising environmental
impacts
● Putting social responsibility into
practice
We focus on
● Understanding market and
customer needs
● Striving for flawless service
and on-time delivery
● Facilitating sustainable
partnerships and measuring
success
We focus on
● Shaping our culture and
embracing diversity and mobility
● Inspiring and developing our
people
● Promoting excellence in
leadership
Performance driven. Every day.
We’re passionate about performance.
It’s in our DNA.
September 2015 Europe & International presentation Page 9
Mondi Europe & International
The Europe & International Division (E&I), headquartered in Vienna, consists of the
4 business units: Packaging Paper, Fibre Packaging, Consumer Packaging and
Uncoated Fine Paper.
September 2015 Europe & International presentation
Packaging Paper Fibre Packaging Consumer
Packaging
Advanced
Materials
Consumer Goods
Packaging
Containerboard Corrugated
Packaging
Industrial Bags
Uncoated Fine
Paper
Extrusion
Coatings
Sack Kraft Paper
Speciality Kraft
Paper
Page 10
Mondi Europe & International – Key figures
Today packaging represents more than 70% of the Mondi Group’s product mix.
September 2015 Europe & International presentation Page 11
Mondi E&I
Revenue €3,192m €2,912m €5,903m
Packaging Paper €1,122m €1,022m €2,043m
Fibre Packaging €1,046m €868m €1,852m
Consumer Packaging €730m €685m €1,379m
Uncoated Fine Paper €626m €646m €1,240m
Underlying operating profit1 €441m €334m €688m
Packaging Paper €211m €167m €342m
Fibre Packaging €68m €48m €102m
Consumer Packaging €49m €39m €96m
Uncoated Fine Paper €113m €80m €148m
Mondi Europe & International
1 The Group presents the underlying operating profit as a measure which excludes special items in order to provide a more effective comparison of the underlying
financial performance of the Group between financial reporting periods.
HY 1/2015 HY 1/2014 2014
Production statistics 2014
September 2015 Europe & International presentation
Total pulp and paper = 5,054 ktonnes
Containerboard
2,160 ktonnes
Kraft paper
1,130 ktonnes
Uncoated fine paper
1,361 ktonnes
Market pulp
201 ktonnes
Newsprint
202 ktonnes
Corrugated board and boxes
1,343 million m2
Industrial bags
4,446 million units
Extrusion coatings
1,401 million m2
Consumer packaging
6,397 million m2
Page 12
A top player in Europe
We develop and maintain leading positions in our core packaging and
uncoated fine paper markets.
September 2015 Europe & International presentation
#2 #
Virgin
container-
board1
Kraft
paper2
Industrial
bags3
Release
liner4
Extrusion
coatings5
Uncoated
fine
paper6
Office
paper7 Container-
board1
Corrugated
packaging8
Europe* Emerging Europe**
* 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 European Paper Packaging Capacity Report, January 2014, and management estimates 2 Based on capacity. Source: RISI European Paper Packaging Capacity Report, RISI Mill Asset Database, Pöyry Smart Terminal Service and management estimates 3 Based on sales volume. Source: Eurosac, Freedonia World Industrial Bags 2011 study (revised in 2013) and management estimates 4 Based on sales. Source: AWA European Extrusion Coated Materials Market Study, draft version 2012, and management estimates
5 Based on sales. Source: AWA Global Release Liner Market Study 2014 and management estimates 6 Based on sales. Source: PCI – The European Flexible Packaging Market to 2019 (15th Edition) 7 Based on sales volume. llim JV considered separate from IP. Source: Euro-Graph delivery statistics 2014; EMGE Woodfree Forecast, May 2015; EMGE World Graphic Paper Report,
April 2015; Pyrabelisk/Eastconsult and management estimates
8 Based on production. Source: Henry Poole Consulting 2015 (data for 2014) and management estimates
Page 13
#1 Kraft
paper2
#1 Industrial
bags3
#2 Extrusion
coatings4
#3 Release
liner5
#3 Consumer
goods
packaging6
#1 Uncoated
fine paper7
#1 Office
paper7
#1 Container-
board1
#3 Corrugated
packaging8
Integrated value chain
September 2015 Europe & International presentation Page 14
Paper mill Uncoated fine paper Finishing
Office and professional
printing paper Forest Pulp mill Pulp
Paper mill
Forest Pulp mill Pulp
Recycled and virgin
containerboard
Box plant
Corrugated
packaging
Paper for recycling
Pulp mill Pulp Paper mill Sack kraft paper and
speciality kraft paper
Converting
plant
Industrial bags
Extrusion coatings
Advanced materials:
release liner
Converting
plant
Film extrusion plant Films
Advanced materials:
films and hygiene
components
Consumer goods
packaging
Advanced materials:
release liner
Packaging and paper. Every day.
We create brilliant packaging and paper
solutions that help our customers succeed.
And help their customers live their lives.
September 2015 Europe & International presentation Page 15
An international player in virgin and recycled containerboard
● Major European supplier of virgin and recycled containerboard
● High-speed lightweight recycled containerboard machine
ECO7, located in central Europe at the Świecie mill in Poland
● White top kraftliner quality that meets increased customer
expectations
● Green Containerboard promotes environmentally preferable
purchasing and supports our customers in going green
● 6 mills
● 11 sales offices
● 1 R&D centre
Containerboard
September 2015 Europe & International presentation Page 16
Appearance Kraft Semi Chem Recycled
More than 100 years of expertise in papermaking
● Strong commitment to high-quality sack kraft papers
● Based on virgin fibre sourced in accordance with international
forestry certification schemes
● Advantage product portfolio includes brown, white as well as
PE-coated paper grades, ideally suited for various types of
industrial bags
● Ecologically sound products from the Mondi Green Range
● 5 mills
● 11 sales offices
● 2 representative offices
● 2 R&D centres
Sack kraft paper
September 2015 Europe & International presentation Page 17
Cement & building Chemicals Food Other industries
● 4 mills
● 2 converting terminals
● 9 sales offices
● 2 R&D centres
The one-stop shop for your paper-based packaging needs
● Broad range of speciality kraft papers designed for special
needs and customised applications
● 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
September 2015 Europe & International presentation Page 18
Bags &
shoppers
Coating &
laminates
Release base &
medical
Hygiene & envelope
release liner
Creating high-performance corrugated solutions for your needs
● A leading manufacturer of corrugated packaging
in central and south-eastern 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,
R&D-dedicated infrastructure and optimisation tools
Corrugated packaging
September 2015 Europe & International presentation Page 19
Heavy-duty
packaging
Top & bottom
solutions
Fruit & vegetable
trays
Shelf-ready
packaging
● 14 plants
● 4 sales offices
Your competent and reliable partner for industrial bags
● 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
Industrial bags
September 2015 Europe & International presentation Page 20
● 45 plants
● 7 sales offices
● 1 R&D centre Product security High-speed filling Food safety Easy handling
We protect against wind, water, fire and earth
● 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
● 5 plants
Extrusion coatings
September 2015 Europe & International presentation Page 21
Foam
papers Foam facers
Consumer barrier
solutions
Transport
packaging
Hygiene components and film solutions for individual needs
● 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
Advanced materials:
films and hygiene components
September 2015 Europe & International presentation Page 22
Surface
protection films
Converter
(barrier) films
Hygiene
components
Label
films
● 4 plants
● 1 R&D centre
In touch with your self-adhesive products
● Tailor-made, silicone-coated and speciality release liners,
specifically designed for your self-adhesive or pressure-sensitive
applications
● Applications served include graphic arts, tapes, fibre composites,
labels, medical and many more
● With our transatlantic operations, we offer high-quality and
competitive product and service solutions as well as a stable and
reliable supply chain to our customers
● 8 plants
● 1 logistics office
● 1 R&D centre
Advanced materials: release liner
September 2015 Europe & International presentation Page 23
Graphic arts Labels Tapes Fibre composites
Attractive and convenient packaging for the consumer industry
● High-quality laminates and barrier materials are converted into
a broad range of flexible packaging solutions, such as (retortable)
stand-up pouches and reclosable plastic-based bags with diverse
add-on features
● The majority of production sites are BRC/IoP- and
ISO 9001:2008-certified, ensuring highest quality
and hygiene standards
Consumer goods packaging
September 2015 Europe & International presentation Page 24
Printed and unprinted films
and multilayer laminates
Stand-up pouches Reclosable plastic-
based bags
● 12 plants
● 2 sales offices
● 1 R&D centre
Leading office and printing paper producer in Europe
● 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 = a symbol for sustainably produced papers for
office users
● 4 mills
● 13 sales offices
● 1 R&D centre
Office paper
September 2015 Europe & International presentation Page 25
NAUTILUS®
IQ color/
MAESTRO® color Color Copy IQ/MAESTRO®
One-stop paper manufacturer for graphic printing needs
● Full range of digital printing papers: Color Copy, DNS®,
BIO TOP 3®, NAUTILUS®, PERGRAPHICA®
● Wide portfolio of smooth, high-white/white, off-white, recycled,
coloured and coated papers for digital, hybrid, HP Indigo,
high-speed inkjet or offset presses
● Green Range = a symbol for sustainably produced papers for
professional printers
● Converting solutions for specialised products
● YBBS® premium board provides a natural uncoated feeling for
premium packaging applications
Converting
YBBS®
premium board Color Copy DNS®
● 4 mills
● 13 sales offices
● 1 R&D centre
Professional printing paper
September 2015 Europe & International presentation Page 26
Design papers
Customer focused. Every day.
We’re reliable. Every day we keep the
promises we make.
September 2015 Europe & International presentation Page 27
Expertise across markets
September 2015 Europe & International presentation Page 28
Food &
beverages
Building &
construction
Home &
personal care
Office &
professional
printing paper
Expertise across markets
September 2015 Europe & International presentation Page 29
Medical &
pharmaceutical
Automotive
Pet care
Paper &
packaging
converting
Expertise across markets
September 2015 Europe & International presentation Page 30
Chemicals &
dangerous
goods
Graphic &
photographic
Multiple other
industries
Farming &
agriculture
Green Range
September 2015 Europe & International presentation Page 31
Packaging and paper solutions that are: optimised to save natural resources and reduce waste,
certified for their sustainability by internationally recognised bodies.
EcoVantage
Kraft Top X ONE and ONEPlus
A resource-effective
packaging solution.
Lower weight means
less packaging weight
and a corresponding
reduction in waste
and costs.
A lightweight
containerboard
starting at 70 g/m² –
made mainly of
recycled fibre and
100% recyclable.
Uncoated fine
paper Modulo
A modular packaging
system with three
separate components
and a smaller unit
surface than standard
packaging.
All our branded
papers are
FSC™/PEFC™
certified or totally
chlorine-free (TCF)
or 100% recycled
Innovative. Every day.
We’re innovators, creators, pioneers – listeners.
We love to find smarter ways to help our
customers do it better.
September 2015 Europe & International presentation Page 32
Research & Development
September 2015 Europe & International presentation Page 33
Designing smart, customised
solutions for packaging food,
helping customers meet
increasingly stringent
regulations.
Specialising in developing high-
performance kraft papers with
excellent technical properties
and printability to meet the
highest ecological standards.
Applying our industrial
techniques and processes
to meet our customers‘
challenges.
Developing innovative and
flexible film solutions with
state-of-the-art analytical
and pilot-line equipment.
Food Safety Laboratory
Focusing on cutting edge
products with flawless
runnability and outstanding print
quality in office and professional
printing environments.
R&D Innovation Centre
Bag Application Centre
UFP Product & Process Development Centre
Consumer Packaging R&D Centre
Print Competence Centre
Conducting numerous tests and
trials to produce the best
possible print quality from a
variety of inks, paper and
containerboard grades.
Cutting edge products
September 2015 Europe & International presentation Page 34
FIBROMER®
Revolutionary and
sustainable polymer
reinforced with cellulose
fibre for various injection
moulding applications.
pak-(k)it®
The 3-in-1 pak-(k)it®
simplifies handling and
saves space in every step
from storage and
packaging to dispatch.
ColdSealPack®
A self-sealing packaging
solution allowing easy
wrapping without tape or
glue.
Unfold (y)our true potential.
Every day.
We want to be a place where everyone can
grow. Careers can be made. And opportunities
unfold.
September 2015 Europe & International presentation Page 35
An inspiring place to work
Working at Mondi is exciting and challenging!
September 2015 Europe & International presentation Page 36
It’s a place where careers and opportunities
can flourish. That’s why we say,
“Unfold your and our true potential.”
The Mondi Academy
The Mondi Academy offers 40 courses covering Mondi technologies, business tools
as well as personal and leadership skills.
September 2015 Europe & International presentation
Technical
Excellence
Business
Excellence
Personal
Excellence
Leadership
Excellence
Customised
programmes for
● Mondi
products
● Processes
● Technologies
● Markets
● Finance
● Project
management
● Business
English
● Change
● Innovation
● Presentation
techniques
● Negotiation
skills
● Conflict
management
● Intercultural
diversity
● Management
techniques
● Leadership
styles
● Motivation
● Delegation
● Target setting
● Sales
● Procurement
● Shift leaders
● Finance
managers
● Many more
Page 37
Sustainable. Every day.
When we think about today, we never forget
tomorrow.
September 2015 Europe & International presentation Page 38
Our key sustainability focus areas
September 2015 Europe & International presentation Page 39
Forestry Climate change Water
Climate change represents
one of the greatest threats to
our environment, society and
economy. Our climate change
programme is mainly focused
on:
● more efficient use of energy
● increasing our use of
renewable energy
Forests are essential for our
business and for the
communities in which we
operate, and wood is one of
our primary raw materials.
We are committed to:
● responsible, sustainable
management of forests and
associated ecosystems
● the responsible sourcing of
wood, fibre and biomass
Water is a critical resource and
a key ecosystem service for our
business throughout our value
chain. We continue to manage
our water footprint through:
● conducting water impact
assessments at all our mills and
forest operations
● recycling and reusing water
where possible, and treatment
of our discharged water
Our key sustainability focus areas
September 2015 Europe & International presentation Page 40
Communities Employees Partnership
Our people, and the care they
take in their work, make it
possible for us to achieve our
sustainable development goals.
So it’s vital that we
communicate effectively with
them every day and make sure
we protect their health and
safety at all times.
The future prospects of our
business lie in the health and
stability of the communities we
live and work in.
We aim to make a real and
lasting contribution to our
communities both through
direct and indirect economic
contributions and through
community engagement plans.
In the second year of our 3-year
partnership with WWF
International, we continue to
work together to increase
environmental stewardship in
the packaging and paper
sectors.
Get in touch with Mondi!
Learn more through our website and follow us on social media.
September 2015 Europe & International presentation Page 41
Corporate
About us
Locations
Investor relations
www.mondigroup.com
Products
Served industries
Green Range
Research & Development
www.mondigroup.com/products
Careers
Meet some of our people
Career opportunities
www.mondigroup.com/careers
Sustainability
Case studies
Online sustainable development report
www.mondigroup.com/sustainability
Facebook: www.facebook.com/Mondigroup
LinkedIn: www.linkedin.com/company/mondi-group
YouTube: www.youtube.com/MondiCom
September 2015 Europe & International presentation Page 42
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.