Corporate Investor Presentation
Total Page:16
File Type:pdf, Size:1020Kb
Corporate investor presentation November 2019 ForwardMondi: -Forwardlooking statements-looking statements disclaimer 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 Thisand developments,document includes expectations forward- lookingof growth statements. and profitability All statements and plans other and thanobjectives statements of management of historical for facts future included operations, herein, are inc forluding,ward -withoutlooking limitation,statements. those Forward regarding-looking Mondi’s statements financial are position, sometimes business identified strategy, by the market use of growthforward and- developments, expectationslooking terminology of growth such and as profitability ‘believe’, ‘expects’, and plans ‘may’, and objectives ‘will’, ‘could’, of management‘should’, ‘shall’, for ‘risk’, future ‘intends’, operations, ‘estimates’, are forward ‘aims’,-looking ‘plans’, state ‘predicts’,ments. Forward‘continues’,-looking ‘assumes’, statements ‘positioned’ are sometimes or ‘anticipates’ identified or theby thenegative use of thereof, forward other-looking variations terminology such as “believe”, “expects”,thereon or “may”,comparable “will”, “could”,terminology. “should”, Such “shall”, forward “risk”,-looking “intends”, statements “estimates”, involve “aims”, known “plans”,and unknown “predicts”, risks, “continues uncertainties”, “assumes”, and other “positioned” factors which or may“anticipates” cause the or actualthe negative results, thereof, performance other variationsor achievements thereon of or Mondi, comparable or industry terminology. results, Such forward-looking statementsto be materially involve different known from and any unknown future risks,results, uncertainties performance and or otherachievements factors which expressed may cause or implied the actual by such results, forward performance-looking sta otements.r achievements Such forward of Mondi,-looking or industry statements results, and to otherbe materially statements different contained from anyin this future document results, regarding performance or achievements 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 expressedforward-looking or implied statements by such speak forward only-looking as of the statements. date on which Such they forward are -made.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 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 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 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, patentsprevailing and and other future intellectual global market property prices rights for and Mondi’s the availability products and of capital raw materials on acceptable and the terms pricing; (2 pressures) industry conditions,thereto, financia such las condition strength of of the product customers, demand, suppliers intensity and of the competition, competitors prevailing of Mondi and and future potential global introduction market pric ofes competing for Mondi’s products and raw materialsproducts andand technologiesthe pricing pressures by competitors; thereto, and financial (3) general condition economic of the customers,conditions, supplierssuch as rates and theof economic competitors growth of Mondi in Mondi’s and po principaltential introduction geographical of marketscompeting or productsfluctuations and of technologies exchange rates by competitors; and interest andrates. (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 expressly disclaims disclaims a) any warranty or liability as to accuracy or completeness of the information provided herein; and 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 b) anyor obligation any events or thatundertaking occur or tocircumstances review or confirm that arise analysts’ after expectationsthe date of making or estimates any forward or to update-looking any statements, 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. unless required to do so by applicable law or any regulatory body applicable to Mondi, including the JSE Limited and the LSE. 2 Mondi’s key takeaways ● A leading global packaging and paper company ● Innovative and sustainable packaging and paper solutions o Leveraging global industry trends of sustainability, e-commerce and enhancing brand value ● Integrated across the value chain leveraging our cost advantaged asset base ● Continuous focus on driving performance ● Clear and consistent strategy, delivering industry leading returns ● Disciplined capital allocation o Focused capital investment project pipeline in progress, securing future growth ● Growing responsibly: o Delivering against our sustainable development commitments ● Robust financial position providing strategic flexibility 3 Our global footprint Key Corrugated Packaging Paper mills Converting operations Flexible Packaging Paper mills Converting operations Engineered Materials Uncoated Fine Paper Group offices Johannesburg London Vienna Productionsites Austria Morocco Belgium Netherlands Bulgaria Oman China Poland Côte d’Ivoire Russia CzechRepublic Serbia Egypt Slovakia Finland SouthAfrica France SouthKorea Germany Spain Hungary Sweden Iraq Thailand Italy Turkey Jordan Ukraine Lebanon UK Malaysia US Mexico 4 Mondi at a glance Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper Containerboard Kraft paper Personal care components Corrugated solutions1 Paper bags2 Extrusion solutions4 Consumer flexibles3 Release liner 1. Previously corrugated packaging 2. Previously industrial bags 3. Previously consumer goods packaging 5 4. Previously technical films and extrusion coatings Leading market positions Global Europe Emerging Europe South Africa Kraft paper Virgin Uncoated Containerboard Uncoated fine containerboard fine paper paper Industrial bags Commercial release liner Consumer flexible Corrugated packaging packaging 6 Please see sources and definitions at the end of this document Consistent strategy delivering industry leading returns Underlying EBITDA and margin Basic underlying earnings per share € million and % € cents per share 23.6% 23.2% 20.5% 20.3% 19.3% 17.2% 1,126 1,325 1,366 1,482 1,764 894 107.3 133.7 137.8 148.9 189.1 96.2 2014 2015 2016 2017 2018 H1 2019 2014 2015 2016 2017 2018 H1 2019 Underlying EBITDA ROCE 7 Strong cash flow generation Cash flow generation1 € million 796 1,039 1,061 972 1,226 488 2014 2015 2016 2017 2018 H1 2019 €5.6 billion cash generated 2014 – H1 2019 8 1 Cash flow generation based on net cash generated before capital expenditure, acquisitions and disposals of businesses, investment in equity accounted investees and payment of dividends to shareholders Strong track record of acquisitions Ṥwiecie minorities Containerboard Nordenia KSP Consumer flexibles Consumer flexibles 2 Duropack plants Ascania Excelsior Technologies Corrugated solutions Engineered Materials Consumer flexibles 2012 2015 2017 2014 2016 2018 Intercell Uralplastic Powerflute Paper bags Consumer flexibles Containerboard Graphic Packaging plants Kalenobel NPP Paper bags Consumer flexibles Paper bags SIMET Suez Bags Corrugated solutions ● Corrugated Packaging Paper bags ● Flexible Packaging Lebedyan ● Engineered Materials Corrugated solutions 9 Strategy driving industry leading performance 10 Driving performance along the entire value chain Culture of continuous improvement in all elements of value chain Productivity (saleable output) Tonnes/employee, indexed Lean processes Operational 188 excellence Commercial Efficient logistics 88 excellence