Mayr-Melnhof Karton FollaCell Presentasjon Skognæringa Kyst 23.10.13

Folla historie

• 1901 Start sagbruk

• 1909 Start Sliperi

• 1919 Nord Trøndelag Fylke overtar bedriften

• 1983 Bjørn Lyng overtar virksomheten

• 1984 Oppstart ny CTMP fabrikk

• 1989 Norske Skog overtar bedriften

• 2000 Sødra Cell overtar bedriften

• 2012 Sødra Cell stopper virksomheten.

• 2013 Mayr-Melnhof overtar og starter produksjon.

FollaCell A.S i tall

Produksjonskapasitet:

130.000 tonn Vedforbruk:

320.000 m3

El.forbruk:

160 Gwh

Antall ansatte:

48 Ansatte på hvert skift:

4 Antall skift:

5

Mayr-Melnhof Group

The world’s leading producer of

recycled fibre based cartonboard

with a rising position in virgin fibre

based board

Leading manufacturer of folding

cartons in Europe, growing

presence outside of Europe

MM Karton MM Packaging

Business structure

~650,000 tons

of annual tonnage

processed

Market:

Folding carton

manufacturers

~470,000 tons of

recycled and virgin fiber

based cartonboard

sourced externally

~180,000 tons of

cartonboard from MMK

sourced internally Capacity of

~1.66 million tons

of cartonboard p.a.

Market:

Consumer goods

producers

~1.66 million tons

of fiber p.a.

(74% recovered)

values refer to 2012

Upgrade Kolicevo

• state-of-the-art

3 layer Fourdrinier aggregate

• advanced stock preparation

• new water circulations

2011

1903 First cylinder board

machine in Austria was

commissioned at

Hirschwang

Company history (extract)

Establishment

of the

Frohnleiten mill

1888

Start of the

“industrial

production“

of cartonboard

1950

1984 Start of

International production

Acquisition of the FS-Karton

mills Neuss &

Baiersbronn (GER)

Start-up

of BM 5 at Neuss,

Acquisition of the Dutch

Eerbeek mill

1990

1998 Acquisition of the

Slovenian mill

Kolicevo

Acquisition of the

Gernsbach mill (GER)

Expansion of the MMK

sales organization to

Eastern Europe and Asia

2001-2003

2010/2011 Worldwide

first curtain-coater

in Frohnleiten and

Gernsbach

2013 Acquisition of the

Norwegian pulp mill

MMK FollaCell A.S.

Ranking of European Cartonboard Producers 2013

Source: MM Karton/Marketing, 2013 (capacities in 1.000 to/p.a. excluding liquid packaging and cup stock)

Source: MM Packaging, 2013

Ranking of European Carton Converters

(in 1.000 tons/p.a. – Europe incl. Russia and Turkey)

Strategy of the Mayr-Melnhof Group

• Focus on core competence

• Production of cartonboard and folding cartons

• R&D projects to ensure our leading market position

• Market and Cost Leadership

• Ongoing Investment for improvements in quality, efficiency and environment

• Innovations – new technologies and products focused on differentiation

• Sustainability

• Long-term corporate strategy and targets

• Clear and future-oriented investment policy

• Responsible utilisation of resources

• Stable Shareholder structure and financial solidity

• Growth

• Organic and by acquisition

Key Indicators 2012

consolidated in millions of EUR, IFRS 2012 2011 +/ -

Sales 1,952.2 1,959.6 -0.4 %

Operating profit 166.1 170.9 -2.8 %

Operating margin (in %) 8.5 % 8.7 %

Return on capital employed (in %) 17.1 % 18.6 %

Profit before tax 160.2 161.8 -1.0 %

Income tax expense (40.7) (43.1)

Profit for the year 119.5 118.7 +0.7 %

Net profit margin (in %) 6.1 % 6.1 %

Cash earnings 203.7 195.2 +4.4 %

Cash earnings margin (in %) 10.4 % 10.0 %

Earnings per share (in EUR) 5.96 5.91 +0.8 %

Capital expenditures 102.7 125.2

Depreciation and amortization 85.8 84.2

MM Karton in figures

7 Mills in 4 Countries

1,66 mio. tons capacity p.a.

Sales in more than 100 countries

2.413 employees

9 Cartonboard machines

74% Recycled fiber

More than 20 Sales Offices

values refer to 2012

1 Pulp mill

MM Karton Mills and Sales Offices MM Karton Mill MM Karton Sales Office MM Karton Pulpmill

Standard Qualities MM Karton

FBB – Folding Box Board (GC)

WLC – Coated Triplex Board (GT)

WLC – Coated Duplex Board (GD)

Liner (LIN)

Greyboard (GK)

200 – 450 gsm

230 – 700 gsm

230 – 700 gsm

145 – 250 gsm

250 – 700 gsm

Product examples

Cartonboard Lifecycle

Climate protection: A positive balance for the

environment

• The Pro Carton Calculation Method of the Carbon

Footprint: Binding for the Mayr-Melnhof Group

• Lowest CO2 emissions per ton produced and converted

cartonboard compared to other packaging materials

• Reduction of Carbon Footprint by 9% in six years in the

European cartonboard industry

• Cradle to grave 348 kg CO2/ tonne

348kg

CO2/t

Source: ECMA, Pro Carton 2011

Hvorfor satser MM i Follafoss

• Satser mer på Virgin Fiber produkter. Brukes også som

midtsjikt i returbasert kartong.

• Follafoss en bra fabrikk med en god arbeidsstokk.

Alternativkostnadene er mange ganger høyere for en

ny fabrikk. Andre ”brukte” fabrikker dårligere.

• Havn og kai er viktig.

• Langsiktig vurdering av råvaretilgang.

• Energipriser i Norge bedre enn Europa.

Hva skal til for å lykkes

• Rett råvare til akseptabel pris, kan ikke bli drept på

skyhøye logistikkostnader.

• Lokal avvirkning Rasjonell utnyttelse av nye Kystskogressurser

• Langsiktig tenking for hele verdikjeden.

• Tilgang til og mulighet til å konkurrere om lokale råvarer,

• Opprettholdelse av et akseptabelt nivå på energipriser.

• Evne til å utnytte fabrikkens kapasitet. Øke

produksjonen med en bevist kostnadseffektiv

flaskehalsfjerning.

• Valutakurs og generell politiske forhold for basis

industri.

SCREENING AND REJECT TREATMENT TWO STAGE PEROXID BLEACING

MIXER

RETENTION BIN

PREHEATER

IMPREGNATOR

STORAGE TOWER

MC

HC

LATENCY CHEST

CHIP BIN

CHIP WASHING

ROLL PRESS

SAWMILL CHIPS

Den ”ideelle” råvaresituasjon for FollaCell i m3.

Vår bestilling!

2014 2019

Behov/Forbruk (alt FSC eller Controlled Wood)

Hvorav FSC sertifisert

320.000

75.000

500.000 125.000

Lokal gran/furu rundved (80/20) 135.000 290.000

Lokal sagbruksflis 75.000 75.000

Løvved. Bjørk/Osp 10.000 60.000

”Importert” Gran/Furu FSC flis 100.000 75.000

Avslutning

Sustainability A long tradition