MAYR-MELNHOF KARTON AG

Page 1

MAYR-MELNHOF KARTON AG

FINANCIAL RESULTS 2002April 23, 2003

Page 2

Group Key figures Karton Packaging Graphia

HIGHLIGHTS 2002

Previous year‘s record result outperformed once again Net income for the year increased 7% to EUR 83 million

Increase of dividend from 1.80 to 2.00 EUR / share

Successful expansion

Share price increased by 33 %

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MM SHARES

Relative Performance der MM-Aktie 2002 / 200328.12.2001=100

60,0

70,0

80,0

90,0

100,0

110,0

120,0

130,0

140,0

150,0

160,0

Jan Feb März April Mai Juni Juli Juli Aug Sep Okt Nov Dez Jan Feb Feb März

MM ATX MSCI (Europe/Forest Products and Paper)

MM

MM

MSCI

ATX

Relative Performance of MM Shares 2002 / 2003Dec. 28, 2001 =100

Page 4


MARKET POSITION - SEGMENTS

the worldwide leading producer of recycled fiber based cartonboard (1.6 million tons)

Europe’s largest manufacturer of folding cartons (330,000 t)

a leading European packaging

producer for cigarettes and confectionary (85,000 t)

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SITES

MM-Karton 9 Mills in 6 countries

MM-Packaging 15 Facilities in 7 countries

MM-Graphia 5 Facilities in 2 countries

Basis: 2003


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Concentration on core competences(Cartonboard production and processing)

Market AND Cost Leadership

Long-term profit orientation

• Expansion - Karton, Packaging und Graphia

- Focus: Southern- &. Eastern Europe, Asia (China)

Increase of customer utility Increase of the Company‘s value

STRATEGIC POSITION


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2002 FINANCIAL RESULTS


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Consolidated in EUR millions, US GAAP 2002 2001 +/-

Sales 1,265.7 1,122.9 +12.7%

Operating profit 135.7 +12.9%Operating margin 10.7%

Income before taxes 132.8 +7.7%

Net income 83.3 +6.9%

% of sales 6.6%

Earnings per share (in EUR) 7.57

Cash earnings 174.7 +9.4%% of sales 13.8%

CONSOLIDATED RESULTS 2002

120.210.7%

123.2

77.9

6.9%

6.66

159.714.2%

Karton Packaging GraphiaGroup Key figures

Page 9

13.8%14.2%13.5%14.4%

10.7%10.7%9.7%8.9%

0

100

200

300

400

500

600

700

800

900

1.000

1.100

1.200

1.300

1999 2000 2001 20020%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Sales Cash earnings % Operating margin

In EUR millions % of sales

SALES AND MARGINS


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GROUP - QUARTERS

Karton Packaging Graphia

0

40

80

120

160

200

240

280

320

I/99 II/99 III/99 IV/99 I/00 II/00 III/00 IV/00 I/01 II/01 III/01 IV/01 I/02 II/02 III/02 IV/020%

2%

4%

6%

8%

10%

12%

14%

Sales Operating margin

in EUR millions, US GAAP % Sales

Group Key figures

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(2002)

Sales

56%

Operating profit

17%

PACKAGING

KARTON70%

SALES AND OPERATING PROFIT BY DIVISION

GRAPHIA13%

PACKAGING

KARTON

GRAPHIA

32%54%

14%


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56%

70%

DIVISIONAL SALES BY REGION

54%


EE; 14,2%

Oth.; 9,9%

Asia; 8,0%

EU; 67,9%EE.; 9,6%

Asia; 1,1%

Oth.: 0,4%

EU; 88,9%

EE; 34,8%

Asia; 6,5%

Oth.: 4,3%

EU; 54,4%

MM-KARTON MM-GRAPHIAMM-PACKAGING

Group Key figures

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Consolidated in EUR millions, US GAAP 31.12.2002

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Minority interests

Stockholders‘ equity

518,2

657,0

1.175,2

354,7

240,2

8,3

1.175,2

572,0

Total liabilities and stockholders‘ equity

GROUP BALANCE SHEETS

Cash and cash equivalents + available-for-sale securities 225,5 247,0

31.12.2001

498,6

577,3

1.075,9

315,2

233,5

3,7

1.075,9

523,5


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CONSOLIDATED STATEMENTSOF CASH FLOWS


in Mio. EUR, US GAAP 2002 2001

Net cash provided by operating activities 173.8 179.7

Net cash used in investing activities (119.1) (68.1)

(71.1) (112.8)Net cash used in financing activities

(0.5) 0.5Exchange rate changes

(17.5) (0.7)Net increase in cash and cash equivalents

149.1 166.6

Total resources available to the Group

Cash and cash equivalents at year-end

80.476.4

247,0247.0

„Available-for-sale securities“

225.5

Group Key figures

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13.4%

9.9%

15.2%14.9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1999 2000 2001 2002

DEVELOPMENT - ROE


Defined: Net income / average stockholders‘ equity

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DEVELOPMENT - ROCE


23.8%24.5%

15.2%

19.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

1999 2000 2001 2002

Group Key figures

Defined: Net income before minority interests, income taxes and net interest expense / average stockholders‘ equity, minority interests and net debt (only if the interest bearing liabilities are greater than cash and cash equivalents)

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MAYR-MELNHOF KARTON


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• Strong demand in 1st half-year followed by weaker dynamics in the second half-year

• Successful increase of cartonboard prices after drastic surge of waste paper prices

• Capacity utilization clearly exceeded the previous year‘s level despite selective production curtailments during 2nd HY

- 93% in 2002 after 89% in 2001 - Significant increase in the non-European business

MM-KARTON - Overview 2002


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0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1994 1995 1996 1997 1998 1999 2000 2001 2002

Europe Rest of world

CARTONBOARD SOLD

Tons

70% 75%77%

83%

87% 83%

85% 81% 30%

25% 23%

17%

13% 17%

15% 19%

78%

22%


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In EUR millions, US GAAP 2002 2001 +/-

Sales 778.7 724.1 +7.5%

Operating profit 94.4 +4.4%Operating margin 12.1%

1,435 +12.5%

Employees 2,952

Capex 46.9

MM-KARTON: Results 2002

90.412.5%

1,275

2,453

42.5

Tonnage producedin 000‘s of tons


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COMPETENCE LEADER

• Taylor-made cartonboard solutions

• Co-operation with customers on the basis of state of the art

communications tools

• High flexibility in production planning

• Continuous exploitation of cost reduction potential

• Expansion of the own sales organization

„Best in Business“


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MAYR-MELNHOF PACKAGING


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• 15 facilities in 7 countries

• Tonnage processed 324,000 tons

• > 55 % multinational customers

• Positive development of sales

MM-PACKAGING: Overview 2002


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In EUR millions, US GAAP 2002

Sales 421.3

Operating profit 23.7Operating margin 5.6%

Tonnage convertedin 000‘s of tons

324

Employees 2,652

Capex 12.7

MM-PACKAGING: Results 2002


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• Speed (“Time to Market“)

• Individualization

• Change of customer structure

• Buying decision increasingly made at “Point of Sale“ (POS)

DECESIVE FACTORS IN PACKAGING


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MMP – Solutions / Focus

• European innovation-network

• Creativity center

• Integrated processes (supplier – customer)

• Site optimization


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MMP - Specialization

Food

Pharma

Detergents

Display / POS

Display / P.O.S. Microflute

Pet Food

Multipack


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MAYR-MELNHOF GRAPHIA


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• Solid development of business

• Integration according to schedule

• Strong technological position

- Three technologies (Rotogravure, Offset, Flexo),

- Wide Know-how in high-grade finishing technologies

• International customer base

• Consequent further expansion

- Priority Eastern Europe

MM-GRAPHIA - Overview 2002


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In EUR millions, US GAAP 2002

Sales 177.1

Operating profit 17.6Operating margin 9.9%

Tonnage convertedin 000‘s of tons

59

Employees 1,182

Capex 8.3

MM-GRAPHIA: Results 2002


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1st QUARTER 2003

• High utilization of capacities

• MM-Karton continued to pursue best possible price stability

• Healthy development of business at MM-Packaging and MM-Graphia

Positive development of earnings

Results will be released by May 12, 2003


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OUTLOOK

• Cartonboard business remains short-term

• Pressures on cartonboard prices is increasing

- As in the past, MM-Karton will take selective downtime

• Increasing raw material costs


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MM-KARTON: Order Backlog


0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

Okt

97

Dez 9

7

Feb 9

8

Apr 9

8

Jun

98

Aug 9

8

Okt

98

Dez 9

8

Feb 9

9

Apr 9

9

Jun

99

Aug 9

9

Okt

99

Dez 9

9

Feb 0

0

Apr 0

0

Jun

00

Aug 0

0

Okt

00

Dez 0

0

Feb 0

1

Apr 0

1

Jun.

01

Aug.0

1

Okt.

01

Dez.0

1

Feb.0

2

Apr.0

2

Jun.

02

Aug.0

2

Oct.

02

Dec.0

2

Feb.0

3

Apr.0

3

Tons 45,000

Group Key figures

Page 36

OUTLOOK

• Consequent continuation of cost-cutting programs

• Sustained positive development at MM-Packaging

and MM-Graphia

• Unbroken investment activity


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MAYR-MELNHOF KARTON AG