Page 1 Mayr-Melnhof Group Final Results 2001 April 23, 2002 Group Key figuresCartonboardPackaging.

KARTON AG

M M

Mayr-Melnhof Group Final Results 2001 April 23, 2002 http://www.mayr-melnhof.com

Group Key figures Cartonboard Packaging

KARTON AG

M M

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


KARTON AG

M M

MM Shares


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

# 1 in recycled cartonboard

Largest producer of folding cartons

Market Position in Europe


KARTON AG

M M

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


KARTON AG

M M

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%


KARTON AG

M M

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


KARTON AG

M M

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


KARTON AG

M M

in EUR millions % of sales

MM GROUP: Sales and Margins


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

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


KARTON AG

M M

( 2001)

Sales

44%

Cartonboard

Packaging

56%

Operating profit

25%

Packaging

Cartonboard

75%

Sales & Operating Profit by Division


KARTON AG

M M

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)


KARTON AG

M M


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

Equity to total assets


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


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

Defined: Net income / average stockholders‘ equity

Development ROE


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

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


Ø 19.8 %

KARTON AG

M M

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


KARTON AG

M M

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


KARTON AG

M M


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


KARTON AG

M M

0

30

60

90

120

150

180

210


2%

4%

6%

8%

10%

12%

14%

16%



CARTONBOARD: Quarters


KARTON AG

M M

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%


KARTON AG

M M

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


KARTON AG

M M

Source: EUWID

Development of waste paper price

0102030405060708090

100110120130140

Mixed waste paper in EUR / ton 2000 2001 2002


KARTON AG

M M

• 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


- Acquisition Gruber+Weber Karton

- Acquisition and closure of Emil Christ AG

KARTON AG

M M

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


KARTON AG

M M

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


KARTON AG

M M

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


KARTON AG

M M


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


KARTON AG

M M

0

20

40

60

80

100

120

140


2%

4%

6%

8%

10%

12%



MM PACKAGING: Quarters


KARTON AG

M M

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


KARTON AG

M M

• 21 facilities in 8 countries

• 390,000 tons processed

• ~ 4,000 employees

MM PACKAGING: Facilities

Basis: 2001


- Schött printing plant was closed

- Acquisition of Schilling plant (detergent & micro-flute packaging)

Graphia

KARTON AG

M M

• 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”


KARTON AG

M M

• 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”


KARTON AG

M M

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


KARTON AG

M M

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


KARTON AG

M M

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


100,000 t

KARTON AG

M M

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


Page 1 Mayr-Melnhof Group Final Results 2001 April 23, 2002 Group Key figuresCartonboardPackaging.

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