Mondi SCP. Investor and Analyst Presentation 28 November, 2007

Transcription

1 Mondi SCP Investor and Analyst Presentation 28 November, 2007

2 TABLE OF CONTENTS Company History Management team Mill overview Products & Sales Productive capability Summary Site visit briefing PAGE 1

3 SLOVAKIA Bratislava High Tatras PAGE 2

4 SLOVAKIA Area: 49,035 km 2 Population: 5,4 mio Main industries: Automobile, chemical, iron ore processing, pulp and paper Forest land: 40.84% Austria Czech Republic Trnava Bratislava Zilina Trencin Piest any Nitra Martin Nove Zarnky Komarno Mondi SCP Ruzomberok Zvolen Banska Bystrica Slovakia Poland Poprad Roznava Hungary Presov Kosice Ukr. PAGE 3

5 MACROECONOMIC INDICATORS SLOVAKIA GDP growth (in %) Unemployment rate (in %) , CPI inflation (avg in %) SKK/EUR (avg) GDP/Capita (in EUR) 4,025 4,426 4,976 5,607 7,059 7,887 9,241 10,321 11, ,000 Direct foreign investment in EUR m ,000 8,000 6,000 4,000 2,000 1,419 4, , GDP/Capita in EUR GDP growth (in %) Unemployment rate in % CPI inflation (avg) in % PAGE 4

6 MONDI SCP PAGE 5

7 COMPANY HISTORY Handmade production of paper in town near Ružomberok 1880 Jakub Klein & Co. started industrial paper manufacture in Ružomberok SOLO 1906 Hungarian Paper Mill was established SUPRA 1958 New company organization - Supra and Solo, new name SCP 1996 National Property Fund of Slovak Republic (FNM SR) sold SCP Ružomberok shares to Slovak company ECO INVEST Zvolen. Acquisition of 50% of shares by Mondi increased subsequently to 51% IMPULS project EUR 241 million invested in pulp, paper, energy and environmental fields. PAGE 6

8 MANAGEMENT TEAM MD Eliaz Amar 41 years old 12 years of paper experience Chairman of BOD / Eco-Invest (49% Shareholder) Miloslav Čurilla 44 years old 5 years of paper industry experience Divisional Manager for Pulp production Dušan Šimo 52 years old Divisional Manager for Paper production Franz Aigner 48 years old Financial Director Richard Žigmund 34 years old Head of Quality Management Olga Šotolová 55 years old Head of Human Resources Peter Jakubik 55 years old With Mondi for 28 years With Mondi for 33 years With Mondi for 5 years With Mondi for 20 years With Mondi for 30 years PAGE 7

9 SALES PER PRODUCTS AND SALES Sales per products Sales per regions Offset 37% Central & East Europe 30% 63% Office 70% West Europe PAGE 8

10 SAFETY Lost time injury frequency rate Mondi SCP in LTI / 200,000 working hrs employees + contractors 1.86 Target 2009 is 0.00, 0Tolerance Target Target YTD PAGE 9

11 PULP PRODUCTION, k tons CAGR +11% SW a.d HW a.d PAGE 10

12 PAPER PRODUCTION, k tons CAGR +11% PM 16 (offset) PM 17 (offset) PM 18 (copy) PAGE 11

13 IMPULS PROJECT ( ) REBUILD TARGETS PM 18 Capacity Quality Service z Increase PM18 capacity up to 290,000 tons (achieved 329,000 tons) z Improved paper quality z New cut size line z New mother reel storage z New warehouse for finished products Better working conditions PAGE 12

14 IMPULS PROJECT ( ) New cut size line Capacity: tons/year 10 pockets 2 parallel lines for packaging of reams and boxes Possibility to pack transparent wrappers Mother reel storage Capacity: tons Fully automatic system Regulation of temperature and humidity Pallet warehouse Operational capacity: tons Fully automatic rack warehouse for pallets 8 loading places for trucks (LKW) 3 loading places for wagons Loading capacity 250 pallets/h PAGE 13

15 IMPULS PROJECT ( ) PROJECT TARGETS PULP MILL Capacity Increase the pulp mill capacity up to 375,000 tons (achieved 421,000tons) Improvement of environmental footprint Better working conditions for our employees PAGE 14

16 PRODUCTIVITY PM18 BEING WORLD LEADER IN PRODUCTIVITY 1 Headcount, average Adjustments in 2006: 1) Headcount does not include passive employees & shared services 2) Production includes non-core paper from Obaly Solo subsidiary 1 Metso Benchmark on paper machine net production measured as km²/meter deckle width CAGR +20% Increase due to bigger production Increase due to headcount reduction ADJ: ADJ: Productivity in tons per Headcount Headcount, average Productivity PAGE 15

17 COMPETITIVE ADVANTAGES Mondi SCP Quality assets base People Performance Modern Integrated pulp and paper producer Energy Pulp market exposure Other costs synergies Relatively low labour cost Wood availability and costs Geographical proximity to major markets Country risk profile Organisational culture Change management Innovations Continuous cost position improvements CAPEX allocations and project management Productivity PAGE 16

18 SITE VISIT BRIEFING

19 SITE VISIT BRIEFING We are here PAGE 18