Mayr-Melnhof Karton (MMK) investor relations material

Business Overview and Structure

• Operates in three divisions: Food & Premium Packaging, Pharma & Healthcare Packaging, and Board & Paper, with a strong European market presence and partial family ownership.

• Major acquisition in 2022 expanded the Pharma & Healthcare division, now running 20 plants in Europe and the U.S.

• Group operates 60 locations with 13,347 employees, serving over 3,500 customers in more than 130 countries.

• Board & Paper division produces cartonboard for packaging, not corrugated boxes, and is a market leader in Europe.

• Food & Premium Packaging is the most profitable segment, while Board & Paper and Pharma & Healthcare have smaller profit contributions.

Strategic Developments and Transformation

• Expanded into virgin fibre-based cartonboard and pharma packaging, while divesting low-performing and non-core assets, including the TANN Group in Q2 2025.

• Invested €1.2 billion in efficiency, quality, sustainability, and innovation from 2020–2025.

• Underwent significant reinvestment and efficiency upgrades from 2021 to 2023, resulting in a well-invested asset base and normalized CapEx.

• Maintained a balanced portfolio across all three divisions.

• Achieved CDP leadership ratings for climate, forests, and water security.

Financial Performance and Operational Highlights

• 2025 sales reached €3.9 billion, with adjusted EBITDA of €418 million and adjusted operating profit up 3%.

• Free cash flow dropped to €11.1 million, while capital expenditures increased to €232.7 million.

• Net profit margin declined to 2.0%, and earnings per share fell by 28.7% to €3.86.

• Dividend increased by 11% to €2.00 per share, aligning with a new payout policy of 40–60%.

• Continuous reduction of net debt and a strengthened balance sheet with a higher equity ratio.