Mayr-Melnhof Karton AG · VIE:MMK
Mayr-Melnhof Karton — FY2007 Earnings Presentation
29 slides from Mayr-Melnhof Karton's earnings presentation, Mar 13, 2008
Slide 1: Mayr-Melnhof Karton AG Results 2007
Mayr-Melnhof Karton AG Results 2007 March 13, 2008 Page 1
Slide 2: Highlights 2007
Highlights 2007 Group • A further record year Key Indicators MM Karton MM Packaging • Expansion continued • Sales and earnings increase in both segments • At EUR 116.6 million, profit for the year was up + 8,7 % • Dividend increase from EUR 1.40 to EUR 1.70 per share Page 2
Slide 3: Mayr-Melnhof Group
Mayr-Melnhof Group 36 plants in 15 countries, ~8,657 employees Group Key Indicators MM Karton MM Packaging MM Karton MM Packaging • The worldwide leading • Europe‘s largest producer of recycled fiber manufacturer of folding based cartonboard cartons Page 3
Slide 4: Strategic Position
Strategic Position Group Key Indicators MM Karton 9 Concentration on core competences MM Packaging Cartonboard and Folding Carton production 9 Market AND cost leadership 9 Long-term profit orientation 9 Expansion Page 4
Slide 5: Group Results 2007
MM KARTON AG Group Results 2007 Page
Slide 6: Consolidated Results 2007
Consolidated Results 2007 consolidated in millions of EUR, IFRS 2007 2006 +/- Group Key Indicators Sales 1,737.0 1,512.5 +14.8% MM Karton Operating profit 169.4 158.6 +6.8% MM Packaging Operating margin 9.8% 10.5% Profit before tax 170.9 159.2 +7.3% Income tax expense (54.3) (51.9) Profit for the ye
Slide 7: MM Group – Quarters
MM Group – Quarters Sales Operating margin % Group 500 Key Indicators 450 16% MM Karton 14% 400 MM Packaging 350 12% 300 10% 250 8% 200 6% 150 4% 100 50 2% 0 0% 4 05 6 7 04 5 06 07 4 5 6 7 4 05 6 7 /0 /0 /0 0 I/0 I/0 I/0 I/0 /0 /0 /0 / II/ II/ II/ II/ / III III III III IV IV IV IV in millions of EUR
Slide 8: Sales by Region
Sales by Region Group Western Key Indicators Europe MM Karton 69% MM Packaging Eastern Europe 24% Other Asia overseas 3% 4% (2007) Page 8
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets Dec. 31, 2007 Dec. 31,2006 consolidated in millions of EUR, IFRS Group Key Indicators Non-current assets 675.8 750.5 MM Karton 857.7 Current assets 745.5 MM Packaging Total assets 1,533.5 1,496.0 Equity 933.9 851.5 Liabilities 599.6 644.5 Total equity and liabilities 1, 5
Slide 10: MM Group: Return on Equity
MM Group: Return on Equity Group 16,0% 15.8% 15.0% Key Indicators MM Karton 14,0% 13.3% 13.0% 12.8% MM Packaging 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 2003 2004 2005 2006 2007 US GAAP IFRS Page 10
Slide 11: MM Group: ROCE
MM Group: ROCE Group 26,0% Key Indicators 24,0% 21.6% 22.0% MM Karton 22,0% MM Packaging 20,0% 19.5% 19.3% 18.7% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 2003 2004 2005 2006 2007 US GAAP IFRS Page 11
Slide 12: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Group Key Indicators consolidated in millions of EUR, IFRS 2007 2006 MM Karton Cash Flow from operating activities 138.8 154.7 MM Packaging Cash Flow from investing activities (4.7) (127.4) Cash Flow from financing activities (75.2) 2.3 Cash and cash equivalents beg.
Slide 13: MM Karton
MM KARTON AG MM KARTON Page 13
Slide 14: MM Karton: Mills
MM Karton: Mills Group Capacity: 1.7 million tons / year - 13 machines Key Indicators 3,010 employees MM Karton MM Packaging 9 mills in 6 countries Page 14
Slide 15: MM Karton: Sales
MM Karton: Sales 1.800.000 Group 17% Key Indicators 1.600.000 20% MM Karton 1.400.000 21% MM Packaging 1.200.000 17% 1.000.000 800.000 62% 600.000 63% 400.000 200.000 0 2000 2001 2002 2003 2004 2005 2006 2007 in tons Western Europe Eastern Europe Rest of world Page 15
Slide 16: MM Karton: Overview 2007
MM Karton: Overview 2007 Group • Good order situation Key Indicators MM Karton MM Packaging • Price increase compensates rise in recovered paper prices • New record production - 97 % capacity utilization (2006: 92 %) • Investment focus: Increase of energy efficiency Page 16
Slide 17: MM Karton: Results 2007
MM Karton: Results 2007 in millions of EUR, nach IFRS 2007 2006 +/- Group Key Indicators Sales 924.4 808.8 +14.3% MM Karton Operation profit 72.6 65.0 +11.7% MM Packaging Operating margin 7.9% 8.0% Return on capital employed 12.6% 12.3% Tonnage produced (in 1,000 t) 1,682 1,553 +8.3% Employees 3,010
Slide 18: MM Karton – Quarters
MM Karton – Quarters Sales Operating Margin % Group 250 Key Indicators 16% MM Karton 14% 200 MM Packaging 12% 150 10% 8% 100 6% 4% 50 2% 0 0% I/06 II/06 III/06 IV/06 I/07 II/07 III/07 IV/07 in millions of EUR Page 18
Slide 19: MM Karton: Start 2008
MM Karton: Start 2008 Group • Order Backlog on long-year level Key Indicators MM Karton - continuous flow of business MM Packaging • High costs remain challange Page 19
Slide 20: Price – Recovered Paper
Group MM Karton Key Indicators MM Packaging Ja 50 75 100 125 150 175 200 225 250 n. 0 Ap 2 r.0 2 Ju l.0 O 2 kt .0 2 Ja Source: EUWID n. 03 Ap Mixed waste in EUR/t r.0 3 Index: Jan 2002 = 100 Ju l.0 O 3 kt .0 3 Ja n. 04 Ap r.0 4 Ju l.0 O 4 kt .0 4 Ja n. 0 Ap 5 r.0 5 Ju l.0 O 5 kt .0 5 Ja n. 0 Ap 6 r.
Slide 21: MM Packaging
MM KARTON AG MM Packaging Page 21
Slide 22: MM Packaging: Sites
MM Packaging: Sites Group • Converted tonnage: 653.000 t Key Indicators 5.647 employees MM Karton MM Packaging 27 plants in 12 countries Page 22
Slide 23: MMP: Tonnage processed
MMP: Tonnage processed Group 700 653,000 t Key Indicators + 21 % MM Karton 600 MM Packaging 500 400 300 200 100 0 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 in 000’s of t / year Page 23
Slide 24: MMP Top Customers
MMP Top Customers Group Key Indicators MM Karton MM Packaging Page 24
Slide 25: MM Packaging: Overview 2007
MM Packaging: Overview 2007 Group • Important growth steps / gains in market share Key Indicators MM Karton • Capacity expansions: MM Packaging - Second rotogravure lines in Cherkassy (UA), Izmir (TK) - Expansion in Poland Acquisitions: - New sites: Amman (JO), Sfax (TN) and Bremen (DE) • MMP indust
Slide 26: MM Packaging: Results 2007
MM Packaging: Results 2007 in millions of EUR, IFRS 2007 2006 +/- Group Key Indicators Sales 958.6 821.6 +16.7% MM Karton Operation profit 96.8 93.6 +3.4% MM Packaging Operating margin 10.1% 11.4% Return on capital employed 23.6% 29.1% Tonnage processed (in 000’s of t) 653 538 +21.4% Employees 5,647
Slide 27: MM Packaging – Quarters
MM Packaging – Quarters Sales Operating Margin % Group 250 Key Indicators 16% MM Karton 14% 200 MM Packaging 12% 150 10% 8% 100 6% 4% 50 2% 0 0% I/06 II/06 III/06 IV/06 I/07 II/07 III/07 IV/07 in millions of EUR Page 27
Slide 28: MM Packaging: Start 2008
MM Packaging: Start 2008 Group • Positive order situation at the beginning of the year Key Indicators MM Karton MM Packaging • Further growth and gain in market share Page 28
Slide 29: Outlook
Outlook Group • Order intake at normal level Key Indicators MM Karton • First months 2008 – solid demand and cap.-utilization MM Packaging • Economic sentiment - clearly diminished - Inflation weighs on spending power - High raw material prices • High costs and demand driven price pressure to mark f