KARTON AG
M M
Page 1
Mayr-Melnhof Group Final Results 2001 April 23, 2002 http://www.mayr-melnhof.com
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 2
Best ever Group Results
- Net income for the year increased approximately 17 %
to EUR 78 million
Increase of Dividend from 1.65 to 1.80 EUR / Share
Satisfactory Share Price Development +13.2 %
Successful Expansion
Highlights 2001
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 3
MM Shares
Group Key figures Cartonboard Packaging
70
90
110
130
150
Jan Feb March Apr May June July Aug Sep Oct Nov Dec Jan Feb March
MM ATX
Relative Performance of MM Shares 2001/2002January 2, 2001 = 100
2001 2002
KARTON AG
M M
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# 1 in recycled cartonboard
Largest producer of folding cartons
Market Position in Europe
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 5
Concentration on core business(Cartonboard, Packaging)
Leadership- Market and cost leadership- Best Practice in all areas of the Company
Profit orientationProfit centers, ROCE, ROE, Dividend
Expansion
Increase the Company’s value Strengthening of market leadership
Strategic Position
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 6
Figures excl. Gray Board, LPB and CNK from the US Source: MM 2002e
Capacity in 000’s of tons 1980 2000Finnboard 430 Mayr-Melnhof 1,200Feldmühle 280 Stora Enso 1,150Saffa 230 Reno de Medici 760Mayr-Melnhof 220 M-real 560Kopparfors 220 Holmen 500Top 5 1,380 Top 5 4,170Total capacity 3,780 Total capacity 7,000Market share 36% Market share 60%
Concentration of the European Cartonboard Industry
2002e1,5001,1801,080
595535
4,8907,30067%
Group Key figures Cartonboard Packaging
KARTON AG
M M
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FCP/ECA 150 39095 Akerlund & Rausing 230
Van Genechten 75 Van Genechten 210Van Leer 65 Chesapeake 175Lawson Mardon 63 MY 155Top 5 448 Top 5 1,160Total tonnage 3,400 Total tonnage 3,500Market share 13% Market share 32%
1993 2002eMayr-Melnhof (incl. Graphia)
Mayr-Melnhof
Source: MM 2002e
Concentration of the European Folding Carton Industry
Tonnage processed in 000‘s of tons
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 8
in EUR millions, US GAAP 2001 2000 +/-
Sales 1,122.9 1,078.3 +4.1%
Operating profit 120.2 104.2 +15.4%Operating Margin 10.7% 9.7%
Income before taxes 123.2 99.2 +24.3%
Net income 77.9 66.7 +16.8%
% of sales 6.9% 6.2%
Earnings per share in EUR 6.66 5.56
Cash Earnings 159.7 145.1+10.1%% of sales 14.4% 13.5%
MM GROUP: Consolidated Results
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 9
in EUR millions % of sales
MM GROUP: Sales and Margins
Group Key figures Cartonboard Packaging
17.9%
16.0%
16.7%
14.2%
13.5%
14.4%
10.7%
9.7%
8.9%
0
100
200
300
400
500
600
700
800
900
1.000
1.100
1.200
1999 2000 20016%
8%
10%
12%
14%
16%
18%
Sales EBITDA % Cash earnings % Operating margin
KARTON AG
M M
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0
40
80
120
160
200
240
280
I /99 II /99 II I /99 IV/99 I/00 II /00 II I /00 IV/00 I/01 II /01 II I /01 IV/010%
2%
4%
6%
8%
10%
12%
14%
Sales Operating margin
in EUR millions, US GAAP % of sales
MM GROUP: Quarters
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 11
( 2001)
Sales
44%
Cartonboard
Packaging
56%
Operating profit
25%
Packaging
Cartonboard
75%
Sales & Operating Profit by Division
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 12
Eastern Europe12.6%
Asia6.6%
Others11.2%
EU69.6%
EU78.3%
Others1.5%
Asia 2.3%
Eastern Europe17.9%
CARTONBOARD PACKAGING
Divisional Sales by Region
(2001)
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 13
Group Key figures Cartonboard Packaging
consolidated in EUR millions, US GAAP Dec. 31, 2001 Dec. 31, 2000
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Minority interests
Cash and cash equivalents + available-for-sale securities
Stockholders‘ equity
498.6 485.8
577.3 564.7
1,075.9 1,050.5
315.2 280.0
233.5 246.9
3.7 3.4
520.2
1,075.9 1,050.5
523.5
247.0 235.9
Total liabilities and stockholders‘ equity
Group Balance Sheets
KARTON AG
M M
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Equity to total assets
Group Key figures Cartonboard Packaging
48.7%49.5%46.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
1999 2000 2001
KARTON AG
M M
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Group Key figures Cartonboard Packaging
in EUR millions, US GAAP 2001 2000
Net cash provided by operating activities 179.7 117.5
Net cash used in investing activities (68.1) (25.3)
(112.8) (33.9)Net cash used in financing activities
0.5 0.2Exchange rate changes
(0.7) 58.5Net increase in cash and cash equivalents
166.6 167.4
Total resources available to the Group
Cash and cash equivalents at the end of the year
68.580.4
247.0 235.9
Available-for-sale securities
Consolidated Statements of Cash Flows
KARTON AG
M M
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Defined: Net income / average stockholders‘ equity
Development ROE
Group Key figures Cartonboard Packaging
13.4%
9.9%
14.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1999 2000 2001
Ø 12.7 %
KARTON AG
M M
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24.8%
15.2%
19.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
1999 2000 2001
Defined: Net income before minority interests, income taxes and net interest expense / average stockholders‘ equity, minority interests and net debt
Development ROCE
Group Key figures Cartonboard Packaging
Ø 19.8 %
KARTON AG
M M
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CARTONBOARD - Overview 2001
• Customers planned on a cautious and short-term basis
• Cartonboard production was adjusted to decrease in sales by taking downtime
- Capacity utilization decreased from 97% in 2000 to 89% 2001
• Generally stable raw materials prices allowed for stable European cartonboard prices
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 19
CARTONBOARD Overview 2001
• Acquisition of the German board mill, Gruber+Weber Karton
• Acquisition and shutdown of the Swiss cartonboard
producer Christ - Concentration of production and sales at the MM Deisswil mill
• E-commerce - MM-Community®
- available to all customers as of June 2001
Group Key figures Cartonboard Packaging
KARTON AG
M M
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in EUR millions, US GAAP 2001 1999 +/-
Sales 724.1 701.3 +3.3%
Operating profit 90.4 72.4 +24.9%
Operating margin 12.5% 10.3%
Tonnage produced(in 000‘s of tons) 1,275 1,250 +0.8%
CARTONBOARD : Results 2001
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 21
0
30
60
90
120
150
180
210
I /99 II /99 II I /99 IV/99 I/00 II /00 II I /00 IV/00 I/01 II /01 II I /01 IV/010%
2%
4%
6%
8%
10%
12%
14%
16%
Sales Operating margin
in EUR millions, US GAAP % of sales
CARTONBOARD: Quarters
Group Key figures Cartonboard Packaging
KARTON AG
M M
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0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1994 1995 1996 1997 1998 1999 2000 2001
Europe Overseas
CARTONBOARD: Sales
Tons
70% 75% 77% 83%
87% 83%
85% 81% 30%
25% 23% 17%
13% 17% 15% 19%
Group Key figures Cartonboard Packaging
KARTON AG
M M
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Source: EUWID
Development of board price
300
350
400
450
500
550
600
650
700
750
800
850
900GD II in EUR/ ton
2000 2001 2002
Group Key figures Cartonboard Packaging
KARTON AG
M M
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Source: EUWID
Development of waste paper price
0102030405060708090
100110120130140
Mixed waste paper in EUR / ton 2000 2001 2002
Group Key figures Cartonboard Packaging
KARTON AG
M M
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• 8 Mills in 5 countries
• 13 Machines
• Capacity: 1.5 million tons
• 91% Recycled board
• World-wide selling organization
• 2,453 Employees
Basis: 2002
CARTONBOARD: Mills
Group Key figures Cartonboard Packaging
- Acquisition Gruber+Weber Karton
- Acquisition and closure of Emil Christ AG
KARTON AG
M M
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0
200000
400000
600000
800000
1000000
1200000
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 20010
2
4
6
8
10
12
14
16# of machinesTons
CARTONBOARD: Production
1 Board machine built 14 Board machines acquired 7 Board machines closed
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 27
MM PACKAGING - Overview 2001
• Good demand in Western and Eastern Europe results in a generally satisfactory utilization of capacities
- Despite the slow-down in the European economy, positive development during 2001
• Site optimization continued
- Concentration of the folding carton production on the most efficient sites
Closure of the German printing plant Schött
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 28
MM PACKAGING - Overview 2001
• Expansion in micro-flute packaging
Acquisition of the special printing plant Schilling
• Disposal of ”Wall- Shareholdings”
- Target of further developing the “Cigarette Packaging” business has not changed
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 29
in EUR millions, US GAAP 2001 2000 +/-
Sales 494.7 477.1 +3.7%
Operating profit 29.8 31.8 -6.3%
Operating margin 6.0% 6.7%
Tonnage processed(in 000‘s of tons)
320 320 +0.0%
MM PACKAGING: Results 2001
Group Key figures Cartonboard Packaging
KARTON AG
M M
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0
20
40
60
80
100
120
140
I /99 II /99 II I /99 IV/99 I/00 II /00 II I /00 IV/00 I/01 II /01 II I /01 IV/010%
2%
4%
6%
8%
10%
12%
Sales Operating margin
in EUR millions, US GAAP % of sales
MM PACKAGING: Quarters
Group Key figures Cartonboard Packaging
KARTON AG
M M
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0
50
100
150
200
250
300
1993 1994 1995 1996 1997 1998 1999 2000 2001
MM PACKAGING: Tonnage processedin 000’s of tons
320,000
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 32
• 21 facilities in 8 countries
• 390,000 tons processed
• ~ 4,000 employees
MM PACKAGING: Facilities
Basis: 2001
Group Key figures Cartonboard Packaging
- Schött printing plant was closed
- Acquisition of Schilling plant (detergent & micro-flute packaging)
Graphia
KARTON AG
M M
Page 33
• A renowned producer of cigarette packaging, specializing in rotogravure, offset and flexo printing technologies
• 3 facilities in Germany, 1 facility in the Ukraine
• Customers: International cigarette producers such as Reemtsma, Philip Morris and BAT
• Staff: ~ 1,000 people
• Consolidated sales in 2001 ~ EUR 150 million
Acquisition of Graphia Group
“Perfect fit”
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 34
• Combination of Mayr-Melnhof’s existing cigarette packaging business in offset printing, with Graphia’s rotogravure and flexo printing technology- an ideal strategic expansion.
• Expansion of the "Cigarette Packaging“ Segment- Share of Group sales to rise from 10 to 20%
• Strengthening of position in Eastern Europe
Mayr-Melnhof, a leading European producer of
cigarette packaging
Acquisition of Graphia Group
“Perfect fit”
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 35
Divisionalization: Consumer and Cigarette Packaging
16 Facilities A,GER,GB,F,PL,HUN,RO ~ 2,700 Employees Sales: ~EUR 430 million
5 Facilities (incl. Graphia) 4 GER, 1 UKR ~ 1,300 Employees Sales: ~ EUR 220 million (incl. Graphia)
Consumer Packaging Cigarette Packaging
Basis: 2002e
S e p a r a t e M a n a g e m e n t
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 36
Outlook
• Positive Development in the 1st Quarter of 2002
High capacity utilization in the Cartonboard Division
- Expansion of cartonboard sales in overseas markets
- European demand better than expected
Decrease in average cartonboard price- Stable prices in Europe - Significantly lower price level on the overseas markets
Stable development of business in the Packaging Division
Profit for period exceeds expectations, however below last
year‘s record level
Group Key figures Cartonboard Packaging
KARTON AG
M M
Page 37
0
20000
40000
60000
80000
100000
120000
140000
160000
Jul 9
7
Sep 9
7
Nov 9
7
Jan
98
Mar
98
May
98
Jul 9
8
Sep 9
8
Nov 9
8
Jan
99
Mar
99
May
99
Jul 9
9
Sep 9
9
Nov 9
9
Jan
00
Mar
00
May
00
Jul 0
0
Sep 0
0
Nov 0
0
Jan
01
Mar
01
May
01
July
01
Sep 0
1
Nov 0
1
Jan
02
Mar
01
Tons
CARTONBOARD: Order Backlog
Group Key figures Cartonboard Packaging
100,000 t
KARTON AG
M M
Page 38
Outlook
• Cartonboard and Packaging Divisions expected to register satisfactory capacity utilization in the 2nd quarter
• Negative: Increase of waste paper prices
• Increase of cartonboard price considered for 2nd quarter
• Result for the first half-year of 2002 expected below previous year’s level
-Lower profitability of the overseas business-Non-recurrent income in the previous year
• Course of expansion will be pursued
Group Key figures Cartonboard Packaging
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