Mayr-Melnhof Karton AG · VIE:MMK
Mayr-Melnhof Karton — H1 2005 Earnings Presentation
22 slides from Mayr-Melnhof Karton's earnings presentation, Aug 24, 2005
Slide 1: Mayr-Melnhof Karton AG 1st Half-Year 2005
Mayr-Melnhof Karton AG 1st Half-Year 2005 August 24, 2005 Page 1
Slide 2: Segments (since 1.1. 2005)
Segments (since 1.1. 2005) Group Indicators • The worldwide leading producer of Karton recycled fiber based cartonboard Packaging • Europe‘s largest manufacturer of folding cartons Page 2
Slide 3: Highlights: 1st Half-year 2005
Highlights: 1st Half-year 2005 Group • Results for the period slightly below last year Indicators Karton EUR 49.3 million after EUR 52.3 million Packaging • Increased price competition as a result of persistently weak consumer confidence • Market-related downtime at MM Karton in 2nd quarter • Positi
Slide 4: Production Sites
Production Sites MM Karton 9 mills in 6 countries MM Packaging 22 facilities in 10 countries Group + a worldwide distribution network Indicators 7.450 employees Karton Packaging Closure in 2005 – Volume transferred to other MMP plants Page 4
Slide 5: Group Results 1st Half-year 2005
Group Results 1st Half-year 2005 Consolidated in millions of EUR, IFRS HY 1 / 2005 HY 1 / 2004 +/- Group Indicators Sales 715.4 709.0 +0.9% Karton Operating profit 70.6 75.9 -7.0% Packaging Operating margin (%) 9.9% 10.7% Net interest 0.0 0.1 Other - net 2.4 (0.1) Profit before tax 73.0 75.9 -3.8% I
Slide 6: MM Group – Quarters
MM Group – Quarters Group 16% Indicators 350 Karton 14% Packaging 300 12% 250 10% 200 8% 150 6% 100 4% 50 2% 0 0% I/03 II/03 III/03 IV/03 I/04 II/04 III/04 IV/04 I/05 II/05 In EUR millions Sales Operating margin % Page 6
Slide 7: Group Balance Sheet
Group Balance Sheet Consolidated in EUR millions, IFRS 06/30/2005 12/31/2004 Group Indicators Current assets 597.6 597.0 Karton Non-current assets 683.7 682.4 Packaging Total assets 1,281.3 1,279.4 Current liabilities 340.6 339.9 Non-current liabilities 214.5 223.5 Total equity 726.2 716.0 Total equ
Slide 8: Group Cash Flow
Group Cash Flow Group Indicators Consolidated in EUR millions, IFRS HY 1 / 2005 HY 1 / 2004 Karton Cash flow from operating activities 48.4 81.2 Packaging Cash flow from investing activities (43.3) (54.9) Cash flow from financing activities (48.2) (37.7) Net change in cash and cash equivalents (42.2
Slide 9: Sales by Region
Sales by Region Group Western Indicators Europe Karton 72% Packaging (72%) Eastern Europe Other 21% overseas Asia (19%) 4% 3% (4%) (5%) (HY 1, 2005/ 2004) Page 9
Slide 10: Sales and Operating Profit by Divisions
Sales and Operating Profit by Divisions Group Indicators Karton PACKAGING PACKAGING Packaging KARTON 56% 53% 44% KARTON 47% Sales Operating Profit (HY 1, 2005) Page 10
Slide 11: Mayr-Melnhof Karton
MM KARTON AG Mayr-Melnhof KARTON Page 11
Slide 12: MM Karton – 1st Half-year 2005
MM Karton – 1st Half-year 2005 Group • Lack of demand stimulation from Western Europe, Indicators increasing volume pressure on markets outside Europe Karton Packaging • Price competition has significantly intensified • Selective downtime according to strategy Capacity utilization HY 1, 05: 94% / HY
Slide 13: Cartonboard Sold
Cartonboard Sold 1.600.000 Group Indicators 1.400.000 20% Karton 22% 1.200.000 15% 19% Packaging 1.000.000 17% 13% 17% -5% 800.000 25% 23% 24% 22% 600.000 400.000 200.000 0 4 5 95 96 97 98 99 00 01 02 03 /0 /0 19 19 19 19 19 20 20 20 20 1 1 HJ HJ Europa Rest of world Page 13
Slide 14: MM-Karton: 1st Half-year 2005
MM-Karton: 1st Half-year 2005 Group in millions of EUR, IFRS HY 1 / 2005 HY 1 / 2004 +/- Indicators Karton Sales 375.9 399.4 -5.9% Packaging Operating profit 33.4 41.7 -19.9% Operating Margin (%) 8.9% 10.4% Tonnage produced 762 790 -3.6% (in thousands of tons) Page 14
Slide 15: MM-Karton – Quarters
MM-Karton – Quarters Group 16% Indicators 200 C Karton 14% Packaging 160 12% 10% 120 8% 80 6% 4% 40 2% 0 0% I/03 II/03 III/03 IV/03 I/04 II/04 III/04 IV/04 I/05 II/05 in millions of EUR Sales Operating Margin % Page 15
Slide 16: Mayr-Melnhof Packaging
Mayr-Melnhof PACKAGING Page 16
Slide 17: MM Packaging – 1st Half-year 2005
MM Packaging – 1st Half-year 2005 Group • Growth in volume and earnings Indicators Karton • Despite weak demand and overcapacities in the industry, Packaging MMP was able to stand its grounds very well • Concentration on high performance plants continued • Increase of productivity – top priority • I
Slide 18: MM Packaging: 1st Half-year 2005
MM Packaging: 1st Half-year 2005 Group in million of EUR, IFRS HY 1 / 2005 HY 1 / 2004 +/- Indicators Karton Sales 397.4 366.7 +8.4% Packaging Operating profit 37.2 34.2 +8.8% Operating Margin (%) 9.4% 9.3% Tonnage processed 250 219 +14.2% (in thousands of tons) Page 18
Slide 19: MM Packaging – Quarters
MM Packaging – Quarters Group 120 12% Indicators Karton 100 10% Packaging 80 8% 60 6% 40 4% 20 2% 0 0% I/04 II/04 III/04 IV/04 I/05 II/05 in millions of EUR Sales Operating Margin % Page 19
Slide 20: Tonnage processed
Tonnage processed Group 450 Indicators 400 Karton 350 Packaging 300 + 14 % 250 200 150 100 50 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 HJ1 HJ1 04 05 in 1.000 t / year Page 20
Slide 21: Outlook
Outlook Group • No pick up in the main Western European markets to be Indicators expected in the near future Karton Packaging • MM Group remains solid • MM Karton: - Retain market shares - Highest price discipline possible - Selective production downtime • MM Packaging - Further market penetration -
Slide 22: Outlook
Outlook Group • Recovered paper prices fairly stable, price increase of Indicators input factors dependent on the crude-oil price will continue Karton Packaging • Focus on further cost-cutting • Continuous investment activity • Forecast horizon remains short-term • Expectation for 3rd quarter 2005 a