page 1 mayr-melnhof karton ag financial results 2002 april 23, 2003
TRANSCRIPT
Page 2
Group Key figures Karton Packaging Graphia
HIGHLIGHTS 2002
Previous year‘s record result outperformed once again Net income for the year increased 7% to EUR 83 million
Increase of dividend from 1.80 to 2.00 EUR / share
Successful expansion
Share price increased by 33 %
Page 3
Group Key figures Karton Packaging Graphia
MM SHARES
Relative Performance der MM-Aktie 2002 / 200328.12.2001=100
60,0
70,0
80,0
90,0
100,0
110,0
120,0
130,0
140,0
150,0
160,0
Jan Feb März April Mai Juni Juli Juli Aug Sep Okt Nov Dez Jan Feb Feb März
MM ATX MSCI (Europe/Forest Products and Paper)
MM
MM
MSCI
ATX
Relative Performance of MM Shares 2002 / 2003Dec. 28, 2001 =100
Page 4
Group Key figures Karton Packaging Graphia
MARKET POSITION - SEGMENTS
the worldwide leading producer of recycled fiber based cartonboard (1.6 million tons)
Europe’s largest manufacturer of folding cartons (330,000 t)
a leading European packaging
producer for cigarettes and confectionary (85,000 t)
Page 5
SITES
MM-Karton 9 Mills in 6 countries
MM-Packaging 15 Facilities in 7 countries
MM-Graphia 5 Facilities in 2 countries
Basis: 2003
Group Key figures Karton Packaging Graphia
Page 6
Concentration on core competences(Cartonboard production and processing)
Market AND Cost Leadership
Long-term profit orientation
• Expansion - Karton, Packaging und Graphia
- Focus: Southern- &. Eastern Europe, Asia (China)
Increase of customer utility Increase of the Company‘s value
STRATEGIC POSITION
Group Key figures Karton Packaging Graphia
Page 8
Consolidated in EUR millions, US GAAP 2002 2001 +/-
Sales 1,265.7 1,122.9 +12.7%
Operating profit 135.7 +12.9%Operating margin 10.7%
Income before taxes 132.8 +7.7%
Net income 83.3 +6.9%
% of sales 6.6%
Earnings per share (in EUR) 7.57
Cash earnings 174.7 +9.4%% of sales 13.8%
CONSOLIDATED RESULTS 2002
120.210.7%
123.2
77.9
6.9%
6.66
159.714.2%
Karton Packaging GraphiaGroup Key figures
Page 9
13.8%14.2%13.5%14.4%
10.7%10.7%9.7%8.9%
0
100
200
300
400
500
600
700
800
900
1.000
1.100
1.200
1.300
1999 2000 2001 20020%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Sales Cash earnings % Operating margin
In EUR millions % of sales
SALES AND MARGINS
Karton Packaging GraphiaGroup Key figures
Page 10
GROUP - QUARTERS
Karton Packaging Graphia
0
40
80
120
160
200
240
280
320
I/99 II/99 III/99 IV/99 I/00 II/00 III/00 IV/00 I/01 II/01 III/01 IV/01 I/02 II/02 III/02 IV/020%
2%
4%
6%
8%
10%
12%
14%
Sales Operating margin
in EUR millions, US GAAP % Sales
Group Key figures
Page 11
(2002)
Sales
56%
Operating profit
17%
PACKAGING
KARTON70%
SALES AND OPERATING PROFIT BY DIVISION
GRAPHIA13%
PACKAGING
KARTON
GRAPHIA
32%54%
14%
Karton Packaging GraphiaGroup Key figures
Page 12
56%
70%
DIVISIONAL SALES BY REGION
54%
Karton Packaging Graphia
EE; 14,2%
Oth.; 9,9%
Asia; 8,0%
EU; 67,9%EE.; 9,6%
Asia; 1,1%
Oth.: 0,4%
EU; 88,9%
EE; 34,8%
Asia; 6,5%
Oth.: 4,3%
EU; 54,4%
MM-KARTON MM-GRAPHIAMM-PACKAGING
Group Key figures
Page 13
Consolidated in EUR millions, US GAAP 31.12.2002
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Minority interests
Stockholders‘ equity
518,2
657,0
1.175,2
354,7
240,2
8,3
1.175,2
572,0
Total liabilities and stockholders‘ equity
GROUP BALANCE SHEETS
Cash and cash equivalents + available-for-sale securities 225,5 247,0
31.12.2001
498,6
577,3
1.075,9
315,2
233,5
3,7
1.075,9
523,5
Karton Packaging GraphiaGroup Key figures
Page 14
CONSOLIDATED STATEMENTSOF CASH FLOWS
Karton Packaging Graphia
in Mio. EUR, US GAAP 2002 2001
Net cash provided by operating activities 173.8 179.7
Net cash used in investing activities (119.1) (68.1)
(71.1) (112.8)Net cash used in financing activities
(0.5) 0.5Exchange rate changes
(17.5) (0.7)Net increase in cash and cash equivalents
149.1 166.6
Total resources available to the Group
Cash and cash equivalents at year-end
80.476.4
247,0247.0
„Available-for-sale securities“
225.5
Group Key figures
Page 15
13.4%
9.9%
15.2%14.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1999 2000 2001 2002
DEVELOPMENT - ROE
Karton Packaging GraphiaGroup Key figures
Defined: Net income / average stockholders‘ equity
Page 16
DEVELOPMENT - ROCE
Karton Packaging Graphia
23.8%24.5%
15.2%
19.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
1999 2000 2001 2002
Group Key figures
Defined: Net income before minority interests, income taxes and net interest expense / average stockholders‘ equity, minority interests and net debt (only if the interest bearing liabilities are greater than cash and cash equivalents)
Page 18
• Strong demand in 1st half-year followed by weaker dynamics in the second half-year
• Successful increase of cartonboard prices after drastic surge of waste paper prices
• Capacity utilization clearly exceeded the previous year‘s level despite selective production curtailments during 2nd HY
- 93% in 2002 after 89% in 2001 - Significant increase in the non-European business
MM-KARTON - Overview 2002
Karton Packaging GraphiaGroup Key figures
Page 19
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
1994 1995 1996 1997 1998 1999 2000 2001 2002
Europe Rest of world
CARTONBOARD SOLD
Tons
70% 75%77%
83%
87% 83%
85% 81% 30%
25% 23%
17%
13% 17%
15% 19%
78%
22%
Karton Packaging GraphiaGroup Key figures
Page 20
In EUR millions, US GAAP 2002 2001 +/-
Sales 778.7 724.1 +7.5%
Operating profit 94.4 +4.4%Operating margin 12.1%
1,435 +12.5%
Employees 2,952
Capex 46.9
MM-KARTON: Results 2002
90.412.5%
1,275
2,453
42.5
Tonnage producedin 000‘s of tons
Karton Packaging GraphiaGroup Key figures
Page 21
COMPETENCE LEADER
• Taylor-made cartonboard solutions
• Co-operation with customers on the basis of state of the art
communications tools
• High flexibility in production planning
• Continuous exploitation of cost reduction potential
• Expansion of the own sales organization
„Best in Business“
Karton Packaging GraphiaGroup Key figures
Page 23
• 15 facilities in 7 countries
• Tonnage processed 324,000 tons
• > 55 % multinational customers
• Positive development of sales
MM-PACKAGING: Overview 2002
Karton Packaging GraphiaGroup Key figures
Page 24
In EUR millions, US GAAP 2002
Sales 421.3
Operating profit 23.7Operating margin 5.6%
Tonnage convertedin 000‘s of tons
324
Employees 2,652
Capex 12.7
MM-PACKAGING: Results 2002
Karton Packaging GraphiaGroup Key figures
Page 25
• Speed (“Time to Market“)
• Individualization
• Change of customer structure
• Buying decision increasingly made at “Point of Sale“ (POS)
DECESIVE FACTORS IN PACKAGING
Karton Packaging GraphiaGroup Key figures
Page 26
MMP – Solutions / Focus
• European innovation-network
• Creativity center
• Integrated processes (supplier – customer)
• Site optimization
Karton Packaging GraphiaGroup Key figures
Page 27
MMP - Specialization
Food
Pharma
Detergents
Display / POS
Display / P.O.S. Microflute
Pet Food
Multipack
Karton Packaging GraphiaGroup Key figures
Page 31
• Solid development of business
• Integration according to schedule
• Strong technological position
- Three technologies (Rotogravure, Offset, Flexo),
- Wide Know-how in high-grade finishing technologies
• International customer base
• Consequent further expansion
- Priority Eastern Europe
MM-GRAPHIA - Overview 2002
Karton Packaging GraphiaGroup Key figures
Page 32
In EUR millions, US GAAP 2002
Sales 177.1
Operating profit 17.6Operating margin 9.9%
Tonnage convertedin 000‘s of tons
59
Employees 1,182
Capex 8.3
MM-GRAPHIA: Results 2002
Karton Packaging GraphiaGroup Key figures
Page 33
1st QUARTER 2003
• High utilization of capacities
• MM-Karton continued to pursue best possible price stability
• Healthy development of business at MM-Packaging and MM-Graphia
Positive development of earnings
Results will be released by May 12, 2003
Karton Packaging GraphiaGroup Key figures
Page 34
OUTLOOK
• Cartonboard business remains short-term
• Pressures on cartonboard prices is increasing
- As in the past, MM-Karton will take selective downtime
• Increasing raw material costs
Karton Packaging GraphiaGroup Key figures
Page 35
MM-KARTON: Order Backlog
Karton Packaging Graphia
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
Okt
97
Dez 9
7
Feb 9
8
Apr 9
8
Jun
98
Aug 9
8
Okt
98
Dez 9
8
Feb 9
9
Apr 9
9
Jun
99
Aug 9
9
Okt
99
Dez 9
9
Feb 0
0
Apr 0
0
Jun
00
Aug 0
0
Okt
00
Dez 0
0
Feb 0
1
Apr 0
1
Jun.
01
Aug.0
1
Okt.
01
Dez.0
1
Feb.0
2
Apr.0
2
Jun.
02
Aug.0
2
Oct.
02
Dec.0
2
Feb.0
3
Apr.0
3
Tons 45,000
Group Key figures