IN TOUCH EVERY DAY
Our products touch the lives of millions, every day.
April 2016 2 Europe & International presentation
International. Every day. We act locally. At around 100 sites. Worldwide.
Europe & International presentation 3 April 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 4 April 2016
Mondi Group
Containerboard
Packaging Paper
Europe & International Division South 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 2015 2014 Change (2015 vs 2014) Revenue €6,819m €6,402m 7%
Underlying EBITDA1 €1,325m €1,126m 18%
Underlying operating profit1 €957m €767m 25%
ROCE2 20.5% 17.2% -
Europe & International presentation 5 April 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.
Europe & International presentation 6 April 2016
Mondi Group – Network
Europe Asia
North America
Europe & International presentation 7 April 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 8 April 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 9 April 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 10 April 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 11 April 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 Bags Consumer 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 12 April 2016
Mondi Europe & International – Key figures
Mondi Europe & International 2015 2014 Change Revenue
Packaging Paper €2,156m €2,043m 6% Fibre Packaging €2,031m €1,852m 10% Consumer Packaging €1,469m €1,379m 7% Uncoated Fine Paper €1,233m €1,240m (1%) Underlying operating profit1
Packaging Paper €391m €342m 14% Fibre Packaging €120m €102m 18% Consumer Packaging €108m €96m 13% Uncoated Fine Paper €212m €148m 43%
Europe & International presentation 13 April 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 14 April 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
#2 Virgin
container- board
#1 Kraft paper
#1 Industrial
bags
#2 Extrusion coatings
#1 Commercial
release liner
#3 Consumer
goods packaging
#1 Uncoated fine paper
#1 Office paper
#1 Container-
board
#3 Corrugated packaging
#1 Industrial
bags
Europe & International presentation 15 April 2016
Integrated 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
Paper
Resins
Nonwoven plant
Film extrusion plant
Nonwovens
Films Converting plant
Advanced materials: films and hygiene components
Advanced materials: release liner
Consumer goods packaging
Europe & International presentation 16 April 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 17 April 2016
Containerboard
Appearance Semi Chem Kraft 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 18 April 2016
Sack kraft paper
Cement & building Food Chemicals Other industries
5 mills 7 sales offices 2 R&D centres
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 19 April 2016
Speciality kraft paper
Bags and shoppers Release base Coating and laminates Hygiene and envelope release liner
4 mills 7 sales offices 2 R&D centres
Creating high-performance corrugated solutions for your needs
● A leading manufacturer of corrugated packaging in central and emerging Europe
● Full range of individual and tailor-made corrugated packaging solutions for a variety of industries, including the food, consumer goods and automotive sectors
● Network of product innovation managers, R&D-dedicated infrastructure and optimisation tools
Europe & International presentation 20 April 2016
Corrugated packaging
14 plants 4 sales offices
Heavy-duty packaging
Top and bottom solutions
Fruit and vegetable trays
Shelf-ready packaging
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 21 April 2016
Industrial bags
High-speed filling Product security Easy handling Food safety
43 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 22 April 2016
Extrusion coatings
Foam papers
Foam facers Consumer barrier solutions
Transport packaging
5 plants
Hygiene components and film solutions for individual needs
● Specialist for blown and cast film extrusion with in-depth knowledge about film-based solutions
● Leading supplier for innovative diaper components and siliconised films for the hygiene industry
● Nonwovens, e.g. for hygiene, medical or household applications
● Trusted partner for international label stock producers
● Full range supplier for laminating films and specialist for automotive, technical and industrial applications
Europe & International presentation 23 April 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, 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 to our customers
Europe & International presentation 24 April 2016
Advanced materials: release liner
9 plants 1 logistics office 1 sales office
Graphic arts Fibre composites Tapes
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
● The majority of production sites are BRC/IoP- and ISO 9001:2008-certified, ensuring highest quality and hygiene standards
Europe & International presentation 25 April 2016
Consumer goods packaging
BAG: top convenience and stability
PACK: customised on reel
POUCH: premade and versatile
14 plants 2 sales offices 1 R&D centre
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 26 April 2016
Office paper
Color Copy IQ 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 27 April 2016
Professional printing paper
Converting NEUJET® Color Copy DNS® Design papers
4 mills 13 sales offices 1 R&D centre
Europe & International presentation 28 April 2016
Customer focused. Every day. We’re reliable. Every day we keep the promises we make.
Europe & International presentation 29 April 2016
Expertise across markets
Medical & pharmaceutical
Paper & packaging converting
Office & professional
printing paper
Home & personal care
Building & construction
Food & beverages
Europe & International presentation 30 April 2016
Expertise across markets
Multiple other industries
Farming & agriculture
Graphic & photographic
Chemicals & dangerous
goods Pet care Automotive
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 31 April 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 32 April 2016
Europe & International presentation 33 April 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 34 April 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 35 April 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 36 April 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 37 April 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 38 April 2016
Sustainable. Every day. When we think about today, we never forget tomorrow.
Europe & International presentation 39 April 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 million 66% FSC/PEFC
103% –5%
Europe & International presentation 40 April 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 41 April 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 42 April 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 43 April 2016
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