Mayr-Melnhof Karton AG · VIE:MMK
Mayr-Melnhof Karton — FY2009 Earnings Presentation
30 slides from Mayr-Melnhof Karton's earnings presentation, Mar 17, 2010
Slide 1: Mayr-Melnhof Gruppe Annual Results 2009
Mayr-Melnhof Gruppe Annual Results 2009 March 17, 2010
Slide 2: Mayr-Melnhof Group
Mayr-Melnhof Group - The worldwide largest producer of coated recycled cartonboard with a rising position in virgin fiber based board - Europe‘s largest manufacturer of folding cartons
Slide 3: 37 Production Sites
37 Production Sites Cartonboard Mills (8) Packaging Sites (29) ~ 8,100 Employees
Slide 4: Highlights 2009
Highlights 2009 • Improved profitability • Market shares defended • Business volume slightly below previous year • Operating profit +9.5 % • Profit for the period at EUR 97.4 million above last year despite exceptional provision (approx. EUR 14 million) for Swiss board mill Deisswil due to triplicat
Slide 5: Strategic orientation
Strategic orientation Responsible - Sustainable • Concentration on core competencies Cartonboard and Folding Carton production • Market- AND cost leadership • Long-term profit orientation • Expansion
Slide 6: Group Results 2009
Group Results 2009
Slide 7: Consolidated Results 2009
Consolidated Results 2009 consolidated in millions of EUR, IFRS 2009 2008 +/- Sales 1,601.5 1,731.2 -7.5 % Operating profit 149.9 136.9 +9.5 % Operating margin 9.4 % 7.9 % Profit before tax 132.4 138.0 -4.1 % Income tax expense (35.0) (41.1) Profit for the year 97.4 96.9 +0.5 % Net profit margin 6.1
Slide 8: MM Group: Quarters
MM Group: Quarters Sales Operating Margin % 500 16% 450 14% 400 350 12% 300 10% 250 8% 200 6% 150 4% 100 50 2% 0 0% in millions of EUR I/07 II/07 III/07 IV/07 I/08 II/08 III/08 IV/08 I/09 II/09 III/09 IV/09
Slide 9: MM Group: Financial Ratios 2009
MM Group: Financial Ratios 2009 • Total equity to total assets: 69 % • Return on Capital Employed: 16,9 %
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet consolidated in millions of EUR, IFRS Dec. 31, 2009 Dec. 31, 2008 Non-current assets 606.1 641.8 Current assets 785.7 784.1 Total assets 1,391.8 1,425.9 Equity 964.3 913.7 Liabilities 427.5 512.2 Total equity and liabilities 1,391.8 1,425.9 Total funds available to the Gro
Slide 11: Consolidated Cash-Flow Statement
Consolidated Cash-Flow Statement consolidated in millions of EUR, IFRS 2009 2008 Cash flow from operating activities 200.5 176.6 Cash flow from investing activities 102.3 (220.2) Cash flow from financing activities (139.1) (115.2) Cash and cash equivalents beg. of the year 189.8 350.5 Net change in
Slide 12: Mayr-Melnhof Karton
MAYR-MELNHOF KARTON
Slide 13: MM Karton: 8 Mills
MM Karton Mill MM Karton Sales Office MM Karton: 8 Mills •Capacity: approx.1.7 Mio. tons / year •12 cartonboard machines •Sales in more than 100 countries •Employees: 2,530
Slide 14: MM Karton: Overview 2009
MM Karton: Overview 2009 • Sales 1.48 million tons • Gain of market shares • Average capacity utilization 88 % (2008: 86%) • Reduction of raw material prices Trend reversal at year-end • Operating profit significantly above previous year (+32 %) • Margin improvement
Slide 15: MM Karton: Results 2009
MM Karton: Results 2009 in millions of EUR, IFRS 2009 2008 +/- Sales 766.0 876.7 -12.6 % Operating profit 51.5 39.1 +31.7 % Operating margin 6.7 % 4.5 % Return on capital employed 12.2 % 11.0 % Tonnage sold (in thousands of tons) 1,481 1,547 -4.3 % Tonnage produced (in thousands of tons) 1,499 1,527
Slide 16: MM Karton: Quarters
MM Karton: Quarters Sales Operating Margin % 250 16% 14% 200 12% 150 10% 8% 100 6% 4% 50 2% 0 0% In millions of EUR I/07 II/07 III/07 IV/07 I/08 II/08 III/08 IV/08 I/09 II/09 III/09 IV/09
Slide 17: MM Karton: Start 2010
MM Karton: Start 2010 • Good capacity utilization since the beginning of the year • Recovered paper prices continue to rise • Consolidation of market leader position
Slide 18: Mayr-Melnhof Packaging
L) ER oe MAYR-MELNHOF PACKAGING
Slide 19: MM Packaging
\ <5 “ACHVIA Darissino ee Wahine BYe MT El Woke = (d=) pect! -] ga > Ly ) >|
Slide 20: MM Packaging 29 Sites
MM Packaging 29 Sites •13 countries •5,585 employees •630.000 tons Tonnage processed 2009
Slide 21: MMP Top Customers
if \ MMP Top Customers €> Kimberly-Clark LLL oF) COLGATE-PALMOLIVE AG = HR Sess PHILIP MORRIS WRIGLEY a) ee
Slide 22: MM Packaging: Overview 2009
MM Packaging: Overview 2009 • Heterogeneous capacity utilization on folding carton market • Stronger than the market • Increase in profitability • Expansion continued - Set up of new site in Iran
Slide 23: MM Packaging: Quarters
MM Packaging: Quarters Sales Operating Margin % 250 16% 14% 200 12% 150 10% 8% 100 6% 4% 50 2% 0 0% in million of EUR I/07 II/07 III/07 IV/07 I/08 II/08 III/08 IV/08 I/09 II/09 III/09 IV/09
Slide 24: MM Packaging: Results 2009
MM Packaging: Results 2009 in millions of EUR, IFRS 2009 2008 +/- Sales 952.0 990.0 -3.8 % Operating profit 98.4 97.8 +0.6 % Operating margin 10.3 % 9.9 % Return on capital employed 20.0 % 19.8 % Tonnage processed (in thousands of tons) 630 652 -3.4 % Employees 5,585 5,681 Investments 28.4 55.2
Slide 25: MM Packaging: Start 2010
MM Packaging: Start 2010 • Satisfactory order intake • Pressure on sales prices intensifies • Target: Maintain and gain market share
Slide 26: Outlook
Outlook • Pressure on private consumption increases • Competition for market volume intensifies • Announced cartonboard price increase is slow-going • Rise of recovered paper prices • Currently healthy utilization – Sustainability uncertain • Sufficient liquidity • Capax: Projects with short-term Pa
Slide 27: Appendix
APPENDIX
Slide 28: MM Group - Quarters
MM Group - Quarters consolidated in millions of EUR 4Q/2008 1Q/2009 2Q/2009 3Q/2009 4Q/2009 Sales 392.4 384.0 385.4 417.1 415.0 Operating profit 26.0 35.7 34.5 39.9 39.8 Operating margin 6.6 % 9.3 % 9.0 % 9.6 % 9.6 % Profit before tax 24.3 36.2 34.5 39.5 22.2 Profit for the period 18.5 26.5 25.4 28.
Slide 29: MM Karton - Quarters
MM Karton - Quarters (in millions of EUR) 4Q/2008 1Q/2009 2Q/2009 3Q/2009 4Q/2009 Sales 189.5 182.7 185.2 197.7 200.4 Operating profit 4.3 11.6 14.5 14.0 11.4 Operating margin 2.3 % 6.3 % 7.8 % 7.1 % 5.7 % Tonnage sold (in thousands of tons) 307 334 365 391 391 Tonnage produced (in thousands of tons
Slide 30: MM Packaging: Quarters
MM Packaging: Quarters (in millions of EUR) 4Q/2008 1Q/2009 2Q/2009 3Q/2009 4Q/2009 Sales 234.7 236.0 227.5 247.7 240.8 Operating profit 21.7 24.1 20.0 25.9 28.4 Operating margin 9.2 % 10.2 % 8.8 % 10.5 % 11.8 % Tonnage processed (in thousands of tons) 147 163 147 161 159