WESTERN EUROPE IS CORE MARKET 1H 2015 Recycled Grades Sales Breakdown by Geography
38%
Italy France
Germany, Austria and Switzerland Rest of Western Europe Eastern Europe
8%
90% in Continental Europe
13%
Overseas
19% 10
16%
6%
STRONG MARKET POSITION WLC + FBB Capacity MAYR MELNHOF 1 METSÄBOARD RDM + CASCADES 2 STORA ENSO 3 KOTKAMILLS WEIG KARTON IP BUCHMANN SMURFIT KAPPA HOLMEN FISKEBY OTHERS
(‘000 m.t.) 0
#2 producer of recycled boxboard in Europe
300
WLC 11
600
900
1,200
FBB
Source: Based on public reports and Cascades’ estimates 1 Including the new folding boxboard machine at the Husum Mill with a total capacity of 400,000 m.t. starting up in Q1-2016 2 Excluding the Barcelona WLC Mill sold in Q2-2015 3 Including the conversion to FBB of paper machine #2 at the Kotka mill in Finland
1,500
1,800
WIDE END-USERS’ PORTFOLIO Breakdown of 2014 sales by end-user Others 18%
Merchant sales 13%
Non-Food 20%
12
Food & Food services 49%
VIRGIN BOXBOARD ACTIVITIES Italy 19%
France 47%
Spain 12% Germany 7% UK Others 5% 10%
Food/ Beverage 35% Others 10% Pharmacy 42%
● France is the main market ● Strong position in Italy and Spain as well ● Germany is continuously growing since the
closure of Djupafors 13
STRATEGIC FOCUS
GROWTH AREAS
PRODUCTIVITY INITIATIVES
14
•
Strengthen presence in growing markets (i.e. Eastern Europe)
•
Continue to reduce leverage to provide flexibility
•
Strategic investment to reduce costs and improve quality and margins (energy, automation and capacity creep)
•
Increase synergies between our recycled and virgin platforms
•
IT upgrades
INCREASE EASTERN EUROPE PRESENCE 1H 2015 Recycled Grades Sales Breakdown by Geography
73%
• Build on our established presence to grow in Eastern Europe
19%
• Continue to be less reliant on overseas sales
8%
Western Europe 15
Eastern Europe
Overseas
INCREASE SYNERGIES BETWEEN OUR TWO PLATFORMS • Continue to increase coordination undertaken over the last few years − Single sales organization for all Cascades and Reno De Medici cartonboard products − Optimize purchasing to capture economies of scale
16
REDUCE LEVERAGE TO MAINTAIN FLEXIBILITY (M€)
Net Financial Debt Reno De Medici
150
5.0x
120
4.0x
90
3.0x
60
2.0x
30
1.0x
0
0.0x
Net financial debt 17
1
Net debt/EBITDA multiple
1 2008-2010: as reported. 2011-LTM Q2-2015: excluding specific items and discontinued operations
REDUCE COSTS TO IMPROVE MARGINS EBITDA Margin1 (%)
2014
06/30/2015 YTD
Mayr-Melnhof (MM Karton Division)
11%
12%
Metsäboard (Cartonboard Division)
13%
NA
12%
8%
8%
9%
Average
Boxboard Europe Group
• Rationalization achieved in the asset portfolio • Investments in core assets to improve efficiency and reduce costs • Benefits expected over the coming years, especially in a context of lower energy costs • Will help to further increase operating margins 18
