Mondi E&I company presentation October 2016
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Transcript of Mondi E&I company presentation October 2016
Europe & International
Presentation
Status: October 2016
IN TOUCH EVERY DAY
Our products touch the lives of
millions, every day.
October 2016 2Europe & International presentation
International.
Every day.
We act locally.
At around 100 sites.
Worldwide.
Europe & International presentation 3October 2016
We are an international packaging and paper Group, employing around 25,000 people across
more than 30 countries.
Our key operations are located in central Europe, Russia, North America and South Africa.
Europe & International presentation 4October 2016
Mondi Group
Containerboard
Packaging Paper
Europe & International
DivisionSouth Africa Division
Sack Kraft Paper
Speciality Kraft Paper
Fibre Packaging
Corrugated Packaging
Industrial Bags
Extrusion Coatings
Consumer Packaging
Advanced Materials
Consumer Goods
Packaging
Uncoated Fine Paper
Pulp
Uncoated Fine Paper
Containerboard
In 2015, Mondi had revenues of €6.8 billion and a ROCE of 20.5%. Mondi has a dual listed company structure,
with a primary listing on the JSE Limited for Mondi Limited and a premium listing on the London Stock Exchange
for Mondi plc.
Mondi Group HY 1/2016 HY 1/2015 2015
Revenue €3,312m €3,459m €6,819m
Underlying EBITDA1 €714m €671m €1,325m
Underlying operating profit1 €529m €490m €957m
ROCE2 21.2% 19.0% 20.5%
Europe & International presentation 5October 2016
Mondi Group – Key figures
1 The Group presents underlying EBITDA and operating profit as measures which exclude special items in order to provide a more effective comparison of the underlying financial performance
of the Group.
2 ROCE is underlying profit expressed as a percentage of the average capital employed for the year, adjusted for impairments and spend on strategic projects which are not yet in operation.
Africa
Mondi operates locally with more than 100 operations across more than 30 countries.
6
Mondi Group – Network
Europe Asia
North America
Europe & International presentation October 2016
Europe & International presentation 7October 2016
Our history
1967 Founding of Mondi
Over €500 million allocated to major strategic
capital projects
Acquisition of NORDENIA INTERNATIONAL AG
Acquisition of Duropack operations in Germany and Czech
Republic
Start of new lightweight recycled containerboard machine
ECO7 and corrugated box plant in Świecie, Poland
Increased ownership of the Syktyvkar mill, Russia,
to over 90%
Acquisition of Świecie, one of Poland’s largest paper mills
1881
Founding of the pulp and paper mill Frantschach, Austria
Acquisition of the industrial bags and kraft paper business of
Graphic Packaging International, USA
Acquisition of the Western European industrial and consumer
bags businesses of Smurfit Kappa
Completion of the extension and modernisation of Syktyvkar,
Russia
Demerger of the Mondi Group from Anglo American plc
Acquisition of majority stake in Tire Kutsan, Turkey
Acquisition of majority of Frantschach and Acquisition of 50% of
the Ružomberok UFP and pulp mill, Slovak Republic
Acquisition of the kraft paper, industrial bags
and extrusion coatings businesses of AssiDomän
Start-up of Extrusion Coatings, Release Liner
and Consumer Packaging
1793
Founding of the Neusiedler paper mill, Austria
2013–2016
2012
2009
2002
1997
2014
2010
2007
2000
Europe & International presentation 8October 2016
The Mondi Way
To create solutions for our customers’ success,
delivering exceptional value in a sustainable way. Purpose
Our clear strategic focus is on growth in packaging● We invest in our high-quality, low-cost assets
● We are passionate about performance
● We work with our customers to find innovative solutions
● Operational Excellence
● People Development
● Sustainable Development
● Cutting Edge Products
● Customer Focus
● Dynamic
● Respectful
● Responsible
● Entrepreneurial
● Empowered
● Transparent
● Passion for performance
● Caring
● Acting with integrity
Strategy
The Mondi Diamond
Culture
Values
Europe & International presentation 9October 2016
The Mondi Diamond
Operational Excellence
Focus on
●Maximising equipment and process
efficiencies
●Delivering on quality and productivity
expectations
● Improving cost competitiveness
Customer Focus
Focus on
●Understanding market and
customer needs
●Striving for flawless service and
on-time delivery
●Facilitating sustainable partnerships
and measuring success
Cutting Edge Products Sustainable Development
Focus on
● Listening to our customers to deliver
exceptional value
● Creating competitive advantages with
high-quality products and brands
● Leveraging our global expertise to
create tailor-made solutions
Focus on
● Achieving Zero Harm and providing
a healthy work environment
● Practicing sustainable forestry
● Increasing resource efficiency and
minimising environmental impacts
● Putting social responsibility into
practice
People Development
Focus on
●Shaping our culture and embracing
diversity and mobility
● Inspiring and developing our people
●Promoting excellence in leadership
Europe & International presentation 10October 2016
Performance driven.
Every day.
We’re passionate about
performance.
It’s in our DNA.
The Europe & International Division (E&I), with its corporate office in Vienna, Austria, consists of the 4 business
units: Packaging Paper, Fibre Packaging, Consumer Packaging and Uncoated Fine Paper.
Europe & International presentation 11October 2016
Mondi Europe & International
Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper
Containerboard Corrugated Packaging Advanced Materials
Sack Kraft Paper
Speciality Kraft Paper
Industrial BagsConsumer Goods
Packaging
Extrusion Coatings
Today packaging represents more than 70% of the Mondi Group’s product mix.
1 The Group presents the underlying operating profit as a measure which excludes special items in order to provide a more effective comparison of the underlying financial
performance of the Group.
Europe & International presentation 12October 2016
Mondi Europe & International – Key figures
Mondi Europe & International HY 1/2016 HY 1/2015 2015
Revenue
Packaging Paper €1,045m €1,122m €2,156m
Fibre Packaging €968m €1,046m €2,031m
Consumer Packaging €765m €730m €1,469m
Uncoated Fine Paper €625m €626m €1,233m
Underlying operating profit1
Packaging Paper €192m €211m €391m
Fibre Packaging €59m €68m €120m
Consumer Packaging €64m €49m €108m
Uncoated Fine Paper €133m €113m €212m
Europe & International presentation 13October 2016
Production statistics 2015
Containerboard
2,138 k tonnes
Kraft paper
1,162 k tonnes
Uncoated fine paper
1,379 k tonnes
Market pulp
256 k tonnes
Newsprint
197 k tonnes
Corrugated board and boxes
1,350 million m2
Industrial bags
4,925 million units
Extrusion coatings
1,389 million m2
Consumer packaging
6,594 million m2
Total pulp and paper = 5,132 k tonnes
We develop and maintain leading positions* in our core packaging and uncoated fine paper markets.
Europe & International presentation 14October 2016
A top player in Europe
Europe1 Emerging Europe2
1 Europe including Russia and Turkey
2 Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Macedonia, Malta, Moldova, Montenegro,
Poland, Romania, Serbia, Slovakia, Slovenia, Turkey, Ukraine
* This document includes market share estimates prepared by the Group based on industry publications and management estimates. Main industry publication sources are: RISI, PÖYRY, PCI, Eurosac,
Henry Poole Consulting, Freedonia, EMGE, Eurograph delivery statistics, Pyrabelisk and Alexander Watson Associates.
North America
#2Virgin
container-
board
#1Kraft
paper
#1Industrial
bags
#2Extrusion
coatings
#1Commercial
release
liner
#3Consumer
goods
packaging
#1Uncoated
fine paper
#1Office
paper
#1Container-
board
#3Corrugated
packaging
#1Industrial
bags
15
Value chain
Forest Pulp mill Pulp
Paper
for recycling
Paper mill Recycled and virgin
containerboard
Box plant
Corrugated
packaging
Forest Pulp mill Pulp Paper mill Uncoated fine paper Finishing
Office and professional
printing paper
Pulp mill Pulp Paper mill Sack kraft paper and
speciality kraft paper
Converting plant
Industrial bags
Extrusion coatings
Resins
Nonwoven plant
Film extrusion plant
Nonwovens
Films
Advanced materials:
films and hygiene components
Advanced materials:
release liner
Consumer goods
packagingConverting plant
Europe & International presentation October 2016
Europe & International presentation 16October 2016
Packaging and paper.
Every day.
We create brilliant packaging
and paper solutions that help
our customers succeed.
And help their customers live
their lives.
An international player in virgin and recycled containerboard
● Major European supplier of virgin and recycled containerboard
● High-speed lightweight recycled containerboard machine ECO7, located in central
Europe at the Świecie mill in Poland
● White top kraftliner quality that meets increased customer expectations
● Green Containerboard promotes environmentally preferable purchasing and
supports our customers in going green
Europe & International presentation 17October 2016
Containerboard
Appearance Semi ChemKraft Recycled
5 mills
6 sales offices
1 R&D centre
More than 100 years of expertise in papermaking
● Strong commitment to high-quality sack kraft papers
● Based on virgin fibre sourced in accordance with international forestry certification
schemes
● Advantage product portfolio includes brown, white as well as PE-coated paper
grades, ideally suited for various types of industrial bags
Europe & International presentation 18October 2016
Sack kraft paper
FoodChemicals Other industries
5 mills
7 sales offices
2 R&D centres
Cement & building
The one-stop shop for your paper-based packaging needs
● Broad range of speciality kraft papers designed for special needs and customised
applications
● Based on virgin fibre sourced in accordance with international forestry certification
schemes
● Experts in translating customer requirements into tailored packaging solutions
Europe & International presentation 19October 2016
Speciality kraft paper
Bags and shoppers Release baseCoating and laminates
4 mills
7 sales offices
2 R&D centres
Creating high-performance corrugated solutions for your needs
● We are a leading supplier of corrugated packaging in Europe,
with strong focus on central and south-east Europe
● Full range of standard and tailor-made corrugated packaging
solutions for a variety of industries, including the food, consumer
goods, e-commerce and automotive sectors
● Network of product innovation managers, R&D-dedicated infrastructure and
optimisation tools
Europe & International presentation 20October 2016
Corrugated packaging
15 plants
4 sales offices
Heavy-duty
packaging
Fruit and vegetable
trays
Shelf-ready
packaging
E-commerce
solutions
Your competent and reliable partner for industrial bags
● A trusted leader with operations in 28 countries, ensuring international presence and
local service across an integrated value chain
● Development of improved processes and tailor-made solutions together with our
customers
● Technical bag expertise at its best through extensive know-how in paper, bag
converting and filling equipment
● Bag to nature – sustainable industrial bag solutions from the Mondi Green Range
Europe & International presentation 21October 2016
Industrial bags
High-speed filling Product security Easy handlingFood safety
42 plants
7 sales offices
1 R&D centre
We protect against wind, water, fire and earth
● High-quality, cost- and energy-efficient technical solutions for various industries,
including the automotive, building, food, industrial paper and packaging, medical and
pharmaceutical as well as graphical sectors
● Extrusion coating and laminating for functional enhancement of various substrates,
such as paper, board, films, nonwovens and scrims
Europe & International presentation 22October 2016
Extrusion coatings
Foam
papersFoam facersConsumer
barrier solutions
Transport
packaging
5 plants
Hygiene components and film solutions for individual needs
● Specialist in blown and cast film extrusion with in-depth knowledge of film-based
solutions
● Leading supplier of innovative diaper components and siliconised films and papers
for the hygiene industry
● Nonwovens, e.g. for hygiene, medical or household applications
● Trusted partner for international label stock producers
● Full range supplier of laminating films and specialist in automotive, technical and
industrial applications
Europe & International presentation 23October 2016
Advanced materials: films and hygiene components
5 plants
1 R&D centre
Hygiene components
and nonwovens
Converter
(barrier) films
Label
films
Surface
protection films
In touch with your self-adhesive products
● Tailor-made, silicone-coated and speciality release liners, specifically designed for
your self-adhesive or pressure-sensitive applications
● Applications served include graphic arts, tapes, fibre composites, labels, envelopes,
medical and many more
● With our transatlantic operations, we offer high-quality and competitive product and
service solutions as well as a stable and reliable supply chain
Europe & International presentation 24October 2016
Advanced materials: release liner
9 plants
1 logistics office
1 sales office
1 R&D centreGraphic arts Fibre compositesTapes Labels
Attractive and convenient packaging for the consumer industry
● High-quality laminates and barrier materials are converted into a broad range of
flexible packaging solutions, such as (retortable) stand-up pouches and reclosable
plastic-based bags with diverse add-on features and special packaging for
ice cream and confectionery
● The majority of production sites are BRC/IoP- and ISO 9001:2008-certified, ensuring
highest quality and hygiene standards
Europe & International presentation 25October 2016
Consumer goods packaging
17 plants
4 sales offices
1 R&D centre
Premade and versatile
stand-up pouches and bags
Customised
reel stock
PACK BAG POUCH SLEEVES, TUBES & LIDS
Special packaging for
ice cream/confectionery
Leading office and printing paper producer in Europe
● A complete office portfolio: premium, everyday paper and a full tinted range
● Wide range of whiteness levels, textures, grammages and recycled grades for all
your office applications
● Achieves optimal results on laser, inkjet and copy machines
● Green Range = a symbol for sustainably produced papers for office users
Europe & International presentation 26October 2016
Office paper
Color CopyIQ color/
MAESTRO® color
IQ/MAESTRO®
4 mills
13 sales offices
1 R&D centre
NAUTILUS®
One-stop paper manufacturer for graphic printing needs
● Full range of digital printing papers: Color Copy, DNS®, BIO TOP 3®, NAUTILUS®,
PERGRAPHICA®
● Wide portfolio of smooth, high-white/white, off-white, recycled, coloured and coated
papers for digital, hybrid, HP Indigo, high-speed inkjet or offset presses
● Converting solutions for specialised products
● With the NEUJET® portfolio, high-speed inkjet printers enjoy excellent image
reproduction with deep and rich colours at unprecedented speed and cost
effectiveness
Europe & International presentation 27October 2016
Professional printing paper
ConvertingNEUJET®Color Copy DNS® Design papers
4 mills
13 sales offices
1 R&D centre
Europe & International presentation 28October 2016
Customer focused.
Every day.
We’re reliable.
Every day we keep the
promises we make.
Europe & International presentation 29October 2016
Expertise across markets
Medical &
pharmaceutical
Paper &
packaging
converting
Office &
professional
printing paper
Home &
personal care
Building &
construction
Food &
beverages
Europe & International presentation 30October 2016
Expertise across markets
Multiple other
industries
Farming &
agriculture
Graphic &
photographic
Chemicals &
dangerous
goods
Pet careAutomotive
Packaging and paper solutions that are:
● optimised to save natural resources and reduce waste,
● certified for their sustainability by internationally recognised bodies.
Europe & International presentation 31October 2016
Green Range
Modulo ONE and ONEPlus ProVantage KraftTop Liner BIO TOP 3®
A modular packaging
system with three
separate components
and a smaller unit
surface than standard
packaging.
A resource-effective
packaging solution.
Lower weight means
less packaging weight and
a corresponding reduction
in waste and costs.
A twin-ply containerboard
with excellent strength values
and brilliant printability used
for corrugated board
production.
This off-white shade
paper is produced
totally chlorine-free and
offers a stylish and
sustainable look with all
printing technologies.
Innovative.
Every day.
We’re innovators, creators,
pioneers – listeners. We love
to find smarter ways to help
our customers do it better.
Europe & International presentation 32October 2016
Europe & International presentation 33October 2016
Research & Development
Designing smart, customised
solutions for packaging food, helping
customers meet increasingly stringent
regulations.
Food Safety Laboratory
Specialising in developing high-
performance kraft papers with
excellent technical properties and
printability to meet the highest
ecological standards.
R&D Innovation Centre
Applying our industrial techniques and
processes to meet our customers‘
challenges.
Bag Application Centre
Developing innovative and flexible
film solutions with state-of-the-art
analytical and pilot-line equipment.
Consumer Packaging R&D Centre
Focusing on cutting edge products
with flawless runnability and
outstanding print quality in office and
professional printing environments.
UFP Product & Process Development Centre
Conducting numerous tests and trials
to produce the best possible print
quality from a variety of inks, paper
and containerboard grades.
Print Competence Centre
Europe & International presentation 34October 2016
Cutting edge products
Advantage Print
grades*SquareBag iFoodbag pak-(k)it®
.
Our two new sack kraft
grades combine excellent
printability with the strength
of standard sack kraft
paper. Customers benefit
from new branding
possibilities and lower total
packaging costs.
*Advantage Kraft White Print and
Advantage Semi Extensible White Print
Innovative, lightweight, cost
effective, flexible yet
durable – this box-shaped
solution fulfils many
customer requirements. All
six panels are available for
graphics, making this bag
ideal for individual
branding.
Innovative packaging
solution in partnership with
iFoodbag: paper-based
composite material protects
chilled/frozen goods for up
to 24 hours.
The 3-in-1 pak-(k)it®
simplifies handling and
saves space in every step
from storage and
packaging to dispatch.
Europe & International presentation 35October 2016
Unfold (y)our
true potential.
Every day.
We want to be a place
where everyone can grow.
Careers can be made.
And opportunities unfold.
Working at Mondi is exciting and challenging!
Europe & International presentation 36October 2016
An inspiring place to work
It’s a place where careers and opportunities can flourish. That’s why we say:
“Unfold your and our true potential.”
The Mondi Academy offers 40 courses covering Mondi technologies, business tools as well as personal
and leadership skills.
Europe & International presentation 37October 2016
The Mondi Academy
Technical
Excellence
Business
Excellence
Personal
Excellence
Leadership
Excellence
Customised
programmes for
Mondi products
Processes
Technologies
Markets
● Finance
● Project management
● Business English
● Change
● Innovation
● Presentation
techniques
● Negotiation
skills
● Conflict
management
● Intercultural
diversity
● Management
techniques
● Leadership
styles
● Motivation
● Delegation
● Target setting
● Sales
● Procurement
● Shift leaders
● Finance managers
● Customer service
● Many more
Europe & International presentation 38October 2016
Sustainable.
Every day.
When we think about today,
we never forget tomorrow.
Europe & International presentation 39October 2016
Our sustainability performance
Energy efficiency, self-sufficiency and
renewable energy
Our carbon emission reduction (per unit of
saleable production) reached 28% in 2015
against a 2004 basis. The share of renewable
energy in the overall fuel consumption of our
mills was 59% in 2015. Our electrical self-
sufficiency reached 103% in 2015.
Water
In 2015 we reduced our contact
water consumption by 5%
against a 2010 basis.
Forestry
All the wood that we source is
Chain-of-Custody certified either to
FSC® or PEFC™ standards (66%
in 2015) or meets our company’s
minimum requirement that
complies with the standard for
Controlled Wood
Communities
Since 2010 we have invested around
€68 million in social projects and
community initiatives globally.
€68 million66% FSC/PEFC
103% –5%
Europe & International presentation 40October 2016
Our key sustainability performance
Climate change Water
Climate change is one of the most
pressing global challenges. Our
climate commitment focuses on
improving energy efficiency and
replacing fossil fuels with renewable
energy where feasible.
Forests are essential for our business
and for the communities in which we
operate, and wood is one of our
primary raw materials. We are
committed to:
responsible, sustainable manage-
ment of forests and associated
ecosystems
the responsible sourcing of wood,
fibre and biomass
Water is a critical resource and a key
ecosystem service for our business
throughout our value chain. We
continue to manage our water
footprint through:
conducting water impact assess-
ments at all our mills and forest
operations
recycling and reusing water where
possible, and treatment of our
discharged water
Forestry
Europe & International presentation 41October 2016
Our key sustainability performance
People Communities Partnership
The people who work at Mondi are
central to our success and future
development. We rely on a skilled,
committed and diverse workforce
who work under safe and fair
conditions to move our business
forward. We invest in training and
developing our people. We regularly
engage with our people to strengthen
and improve our culture.
The future prospects of our business
lie in the health and stability of the
communities we live and work in.
We invest in community projects that
address local priorities and needs in
line with our long-term business
objectives. Key focus areas are
education, health, employment and
enterprise support as well as
infrastructure and development.
In the third year of our 3-year
partnership with WWF International,
we continue to work together to
increase environmental stewardship
in the packaging and paper sectors.
Learn more through our website and follow us on social media.
Europe & International presentation 42October 2016
Get in touch with Mondi!
Corporate
• About us
• Locations
• Investor relations
www.mondigroup.com
Products
• Served industries
• Green Range
• Research &
Development
www.mondigroup.com/
products
Careers
• Meet some of our
people
• Career opportunities
www.mondigroup.com/
careers
Sustainability
• Case studies
• Online sustainable
development report
www.mondigroup.com/
sustainability
Forward-looking statements 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 and developments,
expectations of growth and profitability and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as ‘believe’,
‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘shall’, ‘risk’, ‘intends’, ‘estimates’, ‘aims’, ‘plans’, ‘predicts’, ‘continues’, ‘assumes’, ‘positioned’ or ‘anticipates’ or the negative thereof, other variations thereon or comparable terminology. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mondi, or industry results, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such forward-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
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 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, prevailing and future global market prices for Mondi’s products and raw materials and the pricing pressures thereto, financial condition of the customers, suppliers and the
competitors of Mondi and potential introduction of competing products and technologies by competitors; and (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 disclaims
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 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.
Europe & International presentation 43October 2016