Anglo American plc · LSE:AAL
Anglo American — Mondi South Africa — Investor Presentation (June 2003)
30 slides from Anglo American's investor presentation, Jun 18, 2003
Slide 1: Mondi South Africa
Mondi South Africa Mondi South Africa Chairman & CEO: Andrew Thompson 18 June 2003
Slide 2: Current Position, Competitive advantages, Relevant markets
Mondi South Africa Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth
Slide 3: Mondi SA's Current Position
Mondi South Africa MONDI SA’S CURRENT POSITION ° Businesses managed in three integrated value chains serving export and domestic markets - Eucalyptus fibre and woodfree papers - Packaging - Mechanical papers
Slide 4: Current Position, Competitive advantages, Relevant markets
Mondi South Africa Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth
Slide 5: Mondi SA's Competitive Advantages
Mondi South Africa MONDI SA’S COMPETITIVE ADVANTAGES ° Established sustainable low cost pulpwood plantations ° Economies of scale and sharp productivity focus ° $2 million per year forestry research, pursuing higher fibre yield ° Logistics planning
Slide 6: Mondi SA's Competitive Advantages
Mondi South Africa MONDI SA’S COMPETITIVE ADVANTAGES ° World class facilities at Richards Bay and Durban ° Scale, energy costs, established skilled workforce ° Provide platform for uncoated woodfree paper business
Slide 7: Mondi SA's Competitive Advantages
Mondi South Africa MONDI SA’S COMPETITIVE ADVANTAGES ° Integrated corrugated packaging ° Leader in SA corrugated market ° Whitetop kraftliner from Richards Bay globally competitive in cost and quality
Slide 8: Current Position, Competitive advantages, Relevant markets
Mondi South Africa Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth
Slide 9: Relevant Markets for Mondi SA
Mondi South Africa RELEVANT MARKETS FOR MONDI SA ° BEKP ° Uncoated woodfree papers – Europe and SA ° Whitetop kraftliner in Europe ° Domestic cartonboard, corrugated packaging and publications papers
Slide 10: Market Pulp Demand
Mondi South Africa MARKET PULP DEMAND Projected Growth 2002 - 2006 : 1% p.a Projected BEKP Growth 2002 - 2006 : 4% p.a. Million tonnes 50 40 30 20 10 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002F 2003F 2004F 2005F 2006F BEKP OTHER BHKP BSKP OTHER Source: Hawkins Wright
Slide 11: BKP Pulp Cost Curve
Mondi South Africa BKP PULP COST CURVE Q1/2003 600 Capital charges Delivery to Rotterdam 500 Other manuf. costs Personnel Energy 400 Chemicals Wood 300 200 100 0 lan d en s ruz el l Bay y er as co l s Musi bra rei s i i ri a Su K em Celb Aliza Kotla Lavo r saa Enoc Arau Jaca A nd a Arac Ceni st ards
Slide 12: BEKP Suppliers
Mondi South Africa BEKP SUPPLIERS AA Mondi Morocco Other Phoenix 3% 4% 5% 2% 3% Nordic Votarantim 2% 5% ENCE Riocell 13% 4% Celbi 4% Jarcel 5% Portucel 7% CMPC 3% Soporcel Cenibra 2% 12% Aracruz Bahia Sul Arauco 18% 6% 2% BEKP 2002 - Capacity : 7140mt Source: Hawkins Wright – Nov 2002
Slide 13: SA Uncoated Woodfree Market
Mondi South Africa SA UNCOATED WOODFREE MARKET ° SA market some 290 000 tonnes ° Cut sheet market 130 000 tonnes ° Volume growth has been 8% per year
Slide 14: Mondi in the SA Woodfree Paper Market
Mondi South Africa MONDI IN THE SA WOODFREE PAPER MARKET ° Largest market share ° Brand leader in Rotatrim ° Technologically superior ° Own distribution via Paperlink
Slide 15: European Whitetop Kraftliner Demand
Mondi South Africa EUROPEAN WHITETOP KRAFTLINER DEMAND Switzerland Benelux UK Spain France Italy Germany 0 50000 100000 150000 200000 TONNES Source: ECO Report January 2003 ° Total market 900 000 tonnes
Slide 16: Whitetop Liner Cost Curve
0 100 200 300 400 500 600 700 Ric har ds USD/t Bay PM 2 , mode Ric har l ds Bay PM 2 , actua l Ngod w ana PM 1 Svetog ors k PM 1 Ste ti P M1 Syktyv k ar P M 2 Sw iecie P M2 Ke mi P M1 Munk s und PM 1 West P oint PM 3 Tuge la PM2 Cell du Pin PM 5 La Tuq ue PM 3 Moss P M4 WHITETOP LINER COST CURVE Woo
Slide 17: Mondi Sales of Baywhite in Western Europe
Mondi South Africa MONDI SALES OF BAYWHITE IN WESTERN EUROPE ° Up 13% in 2002 to 123 000 tonnes ° Market share reached 17% ° Spain the largest market with 36 000 tons of sales ° Good growth also in Italy, Germany, UK and Benelux
Slide 18: SA Corrugated Market
Mondi South Africa SA CORRUGATED MARKET Sheet Board 11% Other non Food Stuffs 9% Agricultural 35% Clothing & Textiles 6% Cosmetics 8% Fresh Chicken/Meat/Fish Processed Food & Bev 10% 21% ° Total market 571 110 tonnes ° Industrial packaging growth has slowed to less than GDP ° Fruit exports have prov
Slide 19: SA Corrugated Market in 2002
Mondi South Africa SA CORRUGATED MARKET IN 2002 7.7% Mondipak 5.8% Nampak 31.7% 7.8% New Era 3.8% Sun Homes Corruseal 5.2% APL 8.2% Houers Independents 29.8% Total Market 571 110 tonnes
Slide 20: SA CCM Capacity vs Demand
Mondi South Africa SA CCM CAPACITY VS DEMAND Virgin Liner Testliners White Top Fluting 0 100 200 300 400 500 Mondi Sappi Nampak Swazi / Other Unicel Demand
Slide 21: Current Position, Competitive advantages, Relevant markets
Mondi South Africa Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth
Slide 22: Mondi SA Capacities
Mondi South Africa MONDI SA CAPACITIES BEKP 440 000 tonnes UKP 135 000 tonnes WTKLB 225 000 tonnes Brown liner 125 000 tonnes Fluting 100 000 tonnes Corrugated Board 400 million m2 Woodfree papers 270 000 tonnes Cut Paper Converting 262 000 tonnes
Slide 23: Current Position, Competitive advantages, Relevant markets
Mondi South Africa Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth
Slide 24: Mondi SA Operating Profit Trend
Mondi South Africa MONDI SA OPERATING PROFIT TREND $m 250 200 150 100 50 0 1998 1999 2000 2001 2002 Graphic paper Packaging Pulp Other
Slide 25: Mondi SA Five Year EBIT Margin Trend
Mondi South Africa MONDI SA FIVE YEAR EBIT MARGIN TREND 250 1200 Operating Earnings - US$m 200 1000 Turnover - US$m 22.2 150 19. 4 800 17. 0 13. 4 18. 9 100 13. 4 600 10. 2 11. 9 50 400 0 200 1995 1996 1997 1998 1999 2000 2001 2002 Operating Profit Turnover % EBIT Margin 4
Slide 26: Cost Reductions
Mondi South Africa COST REDUCTIONS US$m 1998 1999 2000 2001 2002 Total South Africa 13 27 24 10 10 84
Slide 27: Current Position, Competitive advantages, Relevant markets
Mondi South Africa Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth
Slide 28: Keys for the Future
Mondi South Africa KEYS FOR THE FUTURE ° South African inflation - currently 9% - target 6% ° R/$ exchange rate - 60% of revenues; 80% of costs in Rand ° SA economic performance - 2003 GDP growth projected at 2.0%
Slide 29: Keys for the Future
Mondi South Africa KEYS FOR THE FUTURE ° Export projects - RB720 - woodfree paper - packaging papers ° Empowerment ° Further efficiency gains
Slide 30: Summary
Mondi South Africa SUMMARY ° Highly competitive, sustainable FSC plantation base ° Low cost BEKP and uncoated woodfree paper production ° Leading global cost position for whitetop liner ° Substantial local and export market positions ° Record on expansionary capex and efficiency gains
Mondi South Africa — Investor Presentation (June 2003) on 6ix