Good morning, ladies and gentlemen, and welcome to the Mayr-Melnhof Karton AG regarding annual results 2023. If you would like to ask questions, please press 9 and star on your phone. If you would like to withdraw your questions, please press 9 and star a second time. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentations. Let me now turn the floor over to your host, Mr. Sweerts-Sporck. Good morning and welcome on behalf of the Group. My name is Stephan Sweerts-Sporck, heading investor relations and corporate communication. It's a great pleasure to have you joining this Q&A conference on our 2023 annual results, which we released this morning. Besides the press release, a video statement from our management board has been published on our website, mm.group. In this call now, we want to provide you with the possibility to direct questions on today's communication to our CEO, Peter Oswald, and our CFO, Franz Hiesinger. Since this call addresses an international audience, we would very much appreciate your questions to be asked in English in the following Q&A session. Before we go for that, Peter, may I ask you to start off with a short summary of our key messages? Yeah. Thank you, Stephan. Good morning, everyone, also from my side. I'm not going to repeat our announcement, but let me just try to get to the main point. The main point was that in 2023, experienced two very contrasting developments. For Packaging, it was a record year with a strong performance. Our operating margin cracked the 10% hurdle. Despite the slow market, we strongly improved results thanks to our innovative products, our superb sales team, our superior logistics network, and last but not least, our great cost position. We've improved costs recently very much. Our organization focusing on distinct market segments has been crucial, as well as our CapEx program in 2021 and in 2022, which improved mainly our operating costs. Our acquisitions of Eson Pac and Essentra have developed beyond expectations. And while pharma, coming from a very low profitability, is still below our average operating margin, we are confident about our progress in the coming years. And while we expect headwinds in 2024 in Packaging, first from increasing cardboard prices, secondly from rather low volumes, our market leadership gives us a very strong position. And we have a lot of possibilities for self-help. Now, this stands in contrast to Board & Paper, where we had to take significant market downtimes because of a very weak market, which was roughly 18%-19% down last year. And on top, we shouldn't forget that we were rebuilding three machines, which were requesting significant downtimes of three of our mills. Now, looking where we stand now, I think we have to face the fact that the industry has significant overcapacities, also after a rebound in volume. We have done our homework by selling 2 mills and closing 3 less competitive machines. On top of taking out higher-cost machines, which is one way to improve your results, our response has been reducing costs, mainly energy and personnel costs via CapEx and also organizational changes, and to improve product quality via innovation and our CapEx as well. While it will take some time until our new and improved products go through the approval process with our customers, our pipeline makes us very confident that we will get additional business and can therefore improve our results in the course of 2024. Yeah. I want to leave it with this. Now, our CFO, Franz Hiesinger, and I are happy to take your questions. Ladies and gentlemen, if you would like to ask questions, please press 9 and star on your phone. If you would like to withdraw your questions, please press 9 and star a second time. Now, press 9 and star to register your question. There are currently no questions. If you would like to ask questions, please press 9 and star on your phone. Seems that I've been so confusing that there are no questions anymore. Here come the first questions from Michael Marschallinger from Erste Group. Mr. Marschallinger? Good morning and welcome. Yeah. Thank you for taking my questions. I would have three on the Board & Paper division. First one, in the outlook, you mentioned that you expect the capacity utilization in Europe to remain dampened. Can you maybe give us a hint now where was the capacity utilization in the fourth quarter for Board & Paper? And you said in the first two months that the volumes are picking up now. Where it is now at the moment. Should I take them one by one? Yeah. Yeah. Please. Please. Okay. Okay. Yeah. So I mean, it's always very confusing, so to say, what different people mean by capacity utilization. But let's say compared to if we ran full speed, our capacity utilization was somewhere around 80%. And that was more or less so 75%-80% throughout the year, so the same or no improvement in Q4. What we've seen now for we don't have significant industry data, only for January. And therefore, we have to see how this develops. But for our group, it has improved to above 90%. Okay. Above 90%. Okay. Also in this respect, my second question because when the fourth quarter your sales were up slightly in comparison to the first quarter, however, your results adjusted EBIT was down 60%. Now, with volumes picking up, capacity utilization above 90%, as you said, so can we expect an EBIT to go to the positive region again already in first quarter? Yeah. I think we have two things. So the good news is that volumes are materially up. The other thing is that prices are down. So we had a constant slide of prices throughout last year. And this has, unfortunately, continued in Q1. So without making a concrete prediction, you should not expect it because prices are at a low level. We are out now with price increases for the second quarter. And if they go through, then we can see an improvement in the results. But let's say, compared to Q1 of this year to last year, it will be, yes, higher volumes, lower prices, significantly lower prices. And some costs obviously have come down, wood costs, for instance. But other costs, for instance, paper for recycling, are up. And also, personnel costs are up due to the high inflation. Okay. Then also coming to my third and last question. So you said price increased the second quarter. Then on top, you said in your video statement, you see then the benefits from strategic transformation. Is that already also in the second quarter or later? And what does that mean then for the full year and for the second half? Do you think this will be these two effects, price increases and strategic transformation, will bring margins in the second half back to normalized levels what we've seen in the past from 7%-8%? Or is that too early? Yeah. If you could give some comment on that, please. Yeah. Yeah. I don't have this crystal ball. I mean, what we see very clearly is thanks to our CapEx that we've improved cost structure. Secondly, we have better products, so higher-quality products, stiffness, surfaces, etc. And that is very, very well taken up by our customers. So this is encouraging. However, we should also not forget what I highlighted in my introduction that in our industry, a customer cannot just switch from one minute to the other. But we have to go through these quality approval processes and qualifications of products, the homologation. And that takes some time. So I think it will be very backloaded towards the second half to see the benefits flow through. Overall, will be mainly in the second half. For some cost items, obviously, it's already the first half. But the main effect will be in the second half. Okay. Understood. Thank you very much. The next question comes from Markus Remis from Raiffeisen Bank International. Yeah. Good morning, Franz. Also, I had a few issues with getting through. But here I am. First question relates to the cash flow development in the final quarter, which was absolutely stellar. So I'm struggling a bit to reconcile the drivers. Apparently, it was working capital. But I mean, doing the math, I don't think that this was an operational improvement only. So can you outline what has happened in Q4 with the working capital? Yes. I think you're absolutely right. So first of all, we did indeed do a lot operationally. And we shouldn't forget that the result is not as fantastic as I would like it because we built up working capital strongly the year before. So it was a natural reaction. And it was also carried by two things. One is obviously that our, let's say, inventory came down by volume in a significant way. But we shouldn't forget that prices play a huge role. And because prices declined throughout the year, obviously, it also means that the valuation of our both receivables and our stocks were much lower. But on top of that, we used what is quite common, more factoring. Okay. Can you give us a figure for the factoring level at year-end and where it was at the end of 2022? Yeah. Maybe I hand over here to Franz. Yes. Hello. Good morning. So we have basically increased our factoring volume by around EUR 200 million. 200 million. Okay. Yes. Overall, we had a working capital improvement in this year of EUR 470 million, including this EUR 200 million. Okay. Thank you. That's very helpful. Is that now a level that you consider kind of sustainable or stable going forward? Yeah. Generally, yes. It will obviously depend, so to say, I think in terms of volume reduction, we can do a bit of more work. However, depending on the price development, it might well be that our working capital is likely going up if prices go up. And obviously, that's something we would hope for. Okay. And the factoring in absolute levels, how much is it? It's above EUR 260 million. 260 million. Okay. Thank you. That's very helpful. Staying with the cash flow, you've invested or CapEx was EUR 425 million in 2023. I think the most recent guidance was a bit below EUR 400 million. Now, you're guiding for EUR 300 million in the current year, including carryovers. So I was wondering now that actually you've invested a bit more than guided in 2023, what the carryover would actually be. Yeah. The carryover is out of the open projects, which are still ongoing. It's not to a huge extent. As you correctly said, we are guiding now to EUR 300 million CapEx payments in 2024. That is also thanks to our Profit & Cash Protection Plan, which should help us in this regard. Okay. Then maybe coming to operational topics, I mean, what I found particularly striking in the fourth quarter was the performance of Packaging earnings-wise. I mean, a margin of 11% that's very strong. Is that kind of the result of the cost-cutting measures and all the restructuring that is done in this segment, meaning this is the level that also can be sustainable at least for the next quarters or whether some special effect I mean, I guess a good product mix. But anything else that we should consider? Yeah. So let's go back. What drove it? I think there were some self-help issues. So for instance, I mean, we had some product innovations. And so a number of customers allocated additional volumes to us because of our product quality, by the way, also because of our improved board qualities, which we have. That was one thing. Then we had the number of cost measures. One thing, and this will more or less continue, and this is absolutely sustainable, the additional tailwind which we benefited from in 2023 and also in the first quarter of 2024 is obviously decreasing cartonboard prices. And once this cycle reverses and we see it now reversing, so we will have increasing cartonboard prices, obviously, there is some delay. Now, unlike in the past when the delay was really very much delayed by up to a year or so, we have now contracts in place which allow for quicker adjustments to new prices. But still, there will be some lag of three, four months typically. And this will be a sort of headwind. On the other hand, a headwind which we like because it will be reflected then in better Board & Paper results. Sure. Okay. That's already the prelude for one question because you are flagging some price increases as of the second quarter in Board & Paper. I mean, given the trend that we're seeing now on the pricing side, I mean, how confident are you that this goes through? And related to that, is that across the board, or is it for specific product areas? We have already increased prices for uncoated fine paper. I'm very confident on recycled cartonboard, so WLC, that we will get a price increase. We are also the market leader in FPP. In virgin cartonboard, we are the number 3 in the market. Therefore, we are not taking any initiatives there. There seems to be no movement in prices for the second quarter. It's a mixed picture. Okay. So paper and recycled carton board but not for virgin fiber? Yes. Okay. Okay. And the final question would be on the restructuring and potential plant closures. I mean, of course, you can't or you won't give us concrete details. But can you just outline your general plans? Is this more of a how should I say? Of a small-scale plant closure that you're targeting, or is it more of a comprehensive program? So, I think over the years, we have done time and again these structural adjustments. And they might happen again this year. But let's say the focus is not on taking plants out simply because almost all our plants and all our paper mills are very competitive. And therefore, there is generally it wouldn't make sense to take them out. So we are not hesitating. We have a very simple philosophy. We invest well and structure companies well to be strongly positioned. And if we believe that we will not achieve a strong competitive position, then we close it. And at the moment, there is very little need. We do have some companies which are loss-making, which are mainly from the Essentra former Essentra business. But there, we have made good progress. So one should never exclude anything because the year has still 10 months to do. But it will not be a major lever, so to say. It's more on maybe taking some shifts out and other cost reduction programs. Okay. Okay. Very good. Well, thank you very much. Was a pleasure. Welcome. There are no further questions at the moment. If you would like to state your questions, please press 9 on your phone. Next questions come from Xavier Vandoorne from Homeport Family Services. Floor is yours. Yes. Hello. Good morning. Thank you for taking my question. I was wondering if you could comment on your hedging of the energy and the potential impact it might have had on volume declines and potential market share losses in Board & Paper. How is your hedging at the moment? And yeah, did you lose market share because of higher hedges than competitors, for example? And how do you see this going forward? Thank you. Yeah. So first of all, we haven't lost any market share. I think we are gaining everywhere market share. In hedging, we always have a continuous policy of hedging a part of our products. That also depends how efficient the respective markets are. And if we talk about hedging, I also have to add it doesn't necessarily mean that we use financial instruments. It's just that we agree with the seller on a fixed price for a certain percentage. So we do have some hedgings, if you call it, or fixed prices in place. And naturally, if market prices move up, you benefit from the hedging part. And if prices become cheaper, then you obviously lose out on it. Okay. Thank you. You're very confident you didn't lose market shares. That's good to hear. Yeah. So not that I know. I mean, I would not have to go through all I can't say for every small part of any business. But overall, we either held it or increased it. For the questions, please press 9 and star on your phone. There are no further questions at the moment. Since there are no more questions, it seems that everything seems to be quite clear as foreseeable, let's say so. We thank you very much for your participation, questions, and interest in the company. Our next results will be Q1 results on the 23rd of April. Having said this, we wish you a great day and say goodbye to you. Bye-bye. Goodbye.