mondi e&i company presentation april 2016

Europe & International Presentation Status: April 2016

IN TOUCH EVERY DAY

Our products touch the lives of millions, every day.

April 2016 2 Europe & International presentation

https://www.youtube.com/watch?v=YHodQ4NZmGM&list=PLLTVVPElXUIZOy6SMcZI3DCHZJw9K5JRz&index=1

https://www.youtube.com/watch?v=jRJWnev7q4w&list=PLLTVVPElXUIZOy6SMcZI3DCHZJw9K5JRz&index=31

International. Every day. We act locally. At around 100 sites. Worldwide.

Europe & International presentation 3 April 2016

We are an international packaging and paper Group, employing around 25,000 people across more than 30 countries.

Our key operations are located in central Europe, Russia, North America and South Africa.


Mondi Group

Containerboard

Packaging Paper

Europe & International Division South Africa Division

Sack Kraft Paper

Speciality Kraft Paper

Fibre Packaging

Corrugated Packaging

Industrial Bags

Extrusion Coatings

Consumer Packaging

Advanced Materials

Consumer Goods Packaging

Uncoated Fine Paper

Pulp

Uncoated Fine Paper

Containerboard

In 2015, Mondi had revenues of €6.8 billion and a ROCE of 20.5%. Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited and a premium listing on the London Stock Exchange for Mondi plc.

Mondi Group 2015 2014 Change (2015 vs 2014) Revenue €6,819m €6,402m 7%

Underlying EBITDA1 €1,325m €1,126m 18%

Underlying operating profit1 €957m €767m 25%

ROCE2 20.5% 17.2% -


Mondi Group – Key figures

1 The Group presents underlying EBITDA and operating profit as measures which exclude special items in order to provide a more effective comparison of the underlying financial performance of the Group.

2 ROCE is underlying profit expressed as a percentage of the average capital employed for the year, adjusted for impairments and spend on strategic projects which are not yet in operation.

Africa

Mondi operates locally with more than 100 operations across more than 30 countries.


Mondi Group – Network

Europe Asia

North America


Our history

1967 Founding of Mondi

Over €500 million allocated to major strategic capital projects

Acquisition of NORDENIA INTERNATIONAL AG Acquisition of Duropack operations in Germany and Czech

Republic

Start of new lightweight recycled containerboard machine ECO7 and corrugated box plant in Świecie, Poland

Increased ownership of the Syktyvkar mill, Russia, to over 90%

Acquisition of Świecie, one of Poland’s largest paper mills

1881 Founding of the pulp and paper mill Frantschach, Austria

Acquisition of the industrial bags and kraft paper business of Graphic Packaging International, USA

Acquisition of the Western European industrial and consumer bags businesses of Smurfit Kappa Completion of the extension and modernisation of Syktyvkar, Russia Demerger of the Mondi Group from Anglo American plc Acquisition of majority stake in Tire Kutsan, Turkey

Acquisition of majority of Frantschach and Acquisition of 50% of the Ružomberok UFP and pulp mill, Slovak Republic Acquisition of the kraft paper, industrial bags and extrusion coatings businesses of AssiDomän Start-up of Extrusion Coatings, Release Liner and Consumer Packaging

1793 Founding of the Neusiedler paper mill, Austria

2013–2016

2012

2009

2002

1997

2014

2010

2007

2000


The Mondi Way

To create solutions for our customers’ success, delivering exceptional value in a sustainable way. Purpose

Our clear strategic focus is on growth in packaging ● We invest in our high-quality, low-cost assets ● We are passionate about performance ● We work with our customers to find innovative solutions

● Operational Excellence ● People Development ● Sustainable Development

● Cutting Edge Products ● Customer Focus

● Dynamic ● Respectful ● Responsible

● Entrepreneurial ● Empowered ● Transparent

● Passion for performance ● Caring ● Acting with integrity

Strategy

The Mondi Diamond

Culture

Values


The Mondi Diamond

Operational Excellence Focus on ●Maximising equipment and process

efficiencies ●Delivering on quality and productivity

expectations ● Improving cost competitiveness

Customer Focus Focus on ●Understanding market and customer needs ●Striving for flawless service and on-time delivery ●Facilitating sustainable partnerships

and measuring success

Cutting Edge Products Sustainable Development Focus on ● Listening to our customers to deliver

exceptional value ● Creating competitive advantages with

high-quality products and brands ● Leveraging our global expertise to

create tailor-made solutions

Focus on ● Achieving Zero Harm and providing a healthy work environment ● Practicing sustainable forestry ● Increasing resource efficiency and

minimising environmental impacts ● Putting social responsibility into

practice

People Development Focus on ●Shaping our culture and embracing

diversity and mobility ● Inspiring and developing our people ●Promoting excellence in leadership


Performance driven. Every day. We’re passionate about performance. It’s in our DNA.

The Europe & International Division (E&I), with its corporate office in Vienna, Austria, consists of the 4 business units: Packaging Paper, Fibre Packaging, Consumer Packaging and Uncoated Fine Paper.


Mondi Europe & International

Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper

Containerboard Corrugated Packaging Advanced Materials

Sack Kraft Paper

Speciality Kraft Paper

Industrial Bags Consumer Goods Packaging

Extrusion Coatings

Today packaging represents more than 70% of the Mondi Group’s product mix.

1 The Group presents the underlying operating profit as a measure which excludes special items in order to provide a more effective comparison of the underlying financial performance of the Group.


Mondi Europe & International – Key figures

Mondi Europe & International 2015 2014 Change Revenue

Packaging Paper €2,156m €2,043m 6% Fibre Packaging €2,031m €1,852m 10% Consumer Packaging €1,469m €1,379m 7% Uncoated Fine Paper €1,233m €1,240m (1%) Underlying operating profit1

Packaging Paper €391m €342m 14% Fibre Packaging €120m €102m 18% Consumer Packaging €108m €96m 13% Uncoated Fine Paper €212m €148m 43%


Production statistics 2015

Containerboard 2,138 k tonnes

Kraft paper 1,162 k tonnes

Uncoated fine paper 1,379 k tonnes

Market pulp 256 k tonnes

Newsprint 197 k tonnes

Corrugated board and boxes 1,350 million m2

Industrial bags 4,925 million units

Extrusion coatings 1,389 million m2

Consumer packaging 6,594 million m2

Total pulp and paper = 5,132 k tonnes

We develop and maintain leading positions* in our core packaging and uncoated fine paper markets.


A top player in Europe

Europe1 Emerging Europe2

1 Europe including Russia and Turkey 2 Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Macedonia, Malta, Moldova, Montenegro,

Poland, Romania, Serbia, Slovakia, Slovenia, Turkey, Ukraine * This document includes market share estimates prepared by the Group based on industry publications and management estimates. Main industry publication sources are: RISI, PÖYRY, PCI, Eurosac,

Henry Poole Consulting, Freedonia, EMGE, Eurograph delivery statistics, Pyrabelisk and Alexander Watson Associates.

North America

#2 Virgin

containerboard

#1 Kraft paper

#1 Industrial

bags

#2 Extrusion coatings

#1 Commercial

release liner

#3 Consumer

goods packaging

#1 Uncoated fine paper

#1 Office paper

#1 Container-

board

#3 Corrugated packaging

#1 Industrial

bags


Integrated value chain

Forest Pulp mill Pulp

Paper for recycling

Paper mill Recycled and virgin containerboard

Box plant

Corrugated packaging

Forest Pulp mill Pulp Paper mill Uncoated fine paper Finishing

Office and professional printing paper

Pulp mill Pulp Paper mill Sack kraft paper and speciality kraft paper

Converting plant

Industrial bags

Extrusion coatings

Paper

Resins

Nonwoven plant

Film extrusion plant

Nonwovens

Films Converting plant

Advanced materials: films and hygiene components

Advanced materials: release liner

Consumer goods packaging


Packaging and paper. Every day. We create brilliant packaging and paper solutions that help our customers succeed. And help their customers live their lives.

An international player in virgin and recycled containerboard

● Major European supplier of virgin and recycled containerboard

● High-speed lightweight recycled containerboard machine ECO7, located in central Europe at the Świecie mill in Poland

● White top kraftliner quality that meets increased customer expectations

● Green Containerboard promotes environmentally preferable purchasing and supports our customers in going green


Containerboard

Appearance Semi Chem Kraft Recycled

5 mills 6 sales offices 1 R&D centre

More than 100 years of expertise in papermaking

● Strong commitment to high-quality sack kraft papers

● Based on virgin fibre sourced in accordance with international forestry certification schemes

● Advantage product portfolio includes brown, white as well as PE-coated paper grades, ideally suited for various types of industrial bags


Sack kraft paper

Cement & building Food Chemicals Other industries

5 mills 7 sales offices 2 R&D centres

The one-stop shop for your paper-based packaging needs

● Broad range of speciality kraft papers designed for special needs and customised applications

● Based on virgin fibre sourced in accordance with international forestry certification schemes

● Experts in translating customer requirements into tailored packaging solutions


Speciality kraft paper

Bags and shoppers Release base Coating and laminates Hygiene and envelope release liner

4 mills 7 sales offices 2 R&D centres

Creating high-performance corrugated solutions for your needs

● A leading manufacturer of corrugated packaging in central and emerging Europe

● Full range of individual and tailor-made corrugated packaging solutions for a variety of industries, including the food, consumer goods and automotive sectors

● Network of product innovation managers, R&D-dedicated infrastructure and optimisation tools


Corrugated packaging

14 plants 4 sales offices

Heavy-duty packaging

Top and bottom solutions

Fruit and vegetable trays

Shelf-ready packaging

Your competent and reliable partner for industrial bags

● A trusted leader with operations in 28 countries, ensuring international presence and local service across an integrated value chain

● Development of improved processes and tailor-made solutions together with our customers

● Technical bag expertise at its best through extensive know-how in paper, bag converting and filling equipment

● Bag to nature – sustainable industrial bag solutions from the Mondi Green Range


Industrial bags

High-speed filling Product security Easy handling Food safety

43 plants 7 sales offices 1 R&D centre

We protect against wind, water, fire and earth

● High-quality, cost- and energy-efficient technical solutions for various industries, including the automotive, building, food, industrial paper and packaging, medical and pharmaceutical as well as graphical sectors

● Extrusion coating and laminating for functional enhancement of various substrates, such as paper, board, films, nonwovens and scrims


Extrusion coatings

Foam papers

Foam facers Consumer barrier solutions

Transport packaging

5 plants

Hygiene components and film solutions for individual needs

● Specialist for blown and cast film extrusion with in-depth knowledge about film-based solutions

● Leading supplier for innovative diaper components and siliconised films for the hygiene industry

● Nonwovens, e.g. for hygiene, medical or household applications

● Trusted partner for international label stock producers

● Full range supplier for laminating films and specialist for automotive, technical and industrial applications


Advanced materials: films and hygiene components

5 plants 1 R&D centre

Hygiene components and nonwovens

Converter (barrier) films

Label films

Surface protection films

In touch with your self-adhesive products

● Tailor-made, silicone-coated and speciality release liners, specifically designed for your self-adhesive or pressure-sensitive applications

● Applications served include graphic arts, tapes, fibre composites, labels, medical and many more

● With our transatlantic operations, we offer high-quality and competitive product and service solutions as well as a stable and reliable supply chain to our customers


Advanced materials: release liner

9 plants 1 logistics office 1 sales office

Graphic arts Fibre composites Tapes

Labels

Attractive and convenient packaging for the consumer industry

● High-quality laminates and barrier materials are converted into a broad range of flexible packaging solutions, such as (retortable) stand-up pouches and reclosable plastic-based bags with diverse add-on features

● The majority of production sites are BRC/IoP- and ISO 9001:2008-certified, ensuring highest quality and hygiene standards


Consumer goods packaging

BAG: top convenience and stability

PACK: customised on reel

POUCH: premade and versatile

14 plants 2 sales offices 1 R&D centre

Leading office and printing paper producer in Europe

● A complete office portfolio: premium, everyday paper and a full tinted range

● Wide range of whiteness levels, textures, grammages and recycled grades for all your office applications

● Achieves optimal results on laser, inkjet and copy machines

● Green Range = a symbol for sustainably produced papers for office users


Office paper

Color Copy IQ color/ MAESTRO® color

IQ/MAESTRO®


NAUTILUS®

One-stop paper manufacturer for graphic printing needs

● Full range of digital printing papers: Color Copy, DNS®, BIO TOP 3®, NAUTILUS®, PERGRAPHICA®

● Wide portfolio of smooth, high-white/white, off-white, recycled, coloured and coated papers for digital, hybrid, HP Indigo, high-speed inkjet or offset presses

● Converting solutions for specialised products

● With the NEUJET® portfolio, high-speed inkjet printers enjoy excellent image reproduction with deep and rich colours at unprecedented speed and cost effectiveness


Professional printing paper

Converting NEUJET® Color Copy DNS® Design papers



Customer focused. Every day. We’re reliable. Every day we keep the promises we make.


Expertise across markets

Medical & pharmaceutical

Paper & packaging converting

Office & professional

printing paper

Home & personal care

Building & construction

Food & beverages


Expertise across markets

Multiple other industries

Farming & agriculture

Graphic & photographic

Chemicals & dangerous

goods Pet care Automotive

Packaging and paper solutions that are:

● optimised to save natural resources and reduce waste,

● certified for their sustainability by internationally recognised bodies.


Green Range

Modulo

ONE and ONEPlus

ProVantage KraftTop Liner

BIO TOP 3®

A modular packaging system with three separate components and a smaller unit surface than standard packaging.

A resource-effective packaging solution. Lower weight means less packaging weight and a corresponding reduction in waste and costs.

A twin-ply containerboard with excellent strength values and brilliant printability used for corrugated board production.

This off-white shade paper is produced totally chlorine-free and offers a stylish and sustainable look with all printing technologies.

Innovative. Every day. We’re innovators, creators, pioneers – listeners. We love to find smarter ways to help our customers do it better.



Research & Development

Designing smart, customised solutions for packaging food, helping customers meet increasingly stringent regulations.

Food Safety Laboratory

Specialising in developing high-performance kraft papers with excellent technical properties and printability to meet the highest ecological standards.

R&D Innovation Centre

Applying our industrial techniques and processes to meet our customers‘ challenges.

Bag Application Centre

Developing innovative and flexible film solutions with state-of-the-art analytical and pilot-line equipment.

Consumer Packaging R&D Centre

Focusing on cutting edge products with flawless runnability and outstanding print quality in office and professional printing environments.

UFP Product & Process Development Centre

Conducting numerous tests and trials to produce the best possible print quality from a variety of inks, paper and containerboard grades.

Print Competence Centre


Cutting edge products

Advantage Print grades* SquareBag iFoodbag pak-(k)it®

. Our two new sack kraft grades combine excellent printability with the strength of standard sack kraft paper. Customers benefit from new branding possibilities and lower total packaging costs.

*Advantage Kraft White Print and Advantage Semi Extensible White Print

Innovative, lightweight, cost effective, flexible yet durable – this box-shaped solution fulfils many customer requirements. All six panels are available for graphics, making this bag ideal for individual branding.

Innovative packaging solution in partnership with iFoodbag: paper-based composite material protects chilled/frozen goods for up to 24 hours.

The 3-in-1 pak-(k)it® simplifies handling and saves space in every step from storage and packaging to dispatch.


Unfold (y)our true potential. Every day. We want to be a place where everyone can grow. Careers can be made. And opportunities unfold.

Working at Mondi is exciting and challenging!


An inspiring place to work

It’s a place where careers and opportunities can flourish. That’s why we say:

“Unfold your and our true potential.”

https://www.youtube.com/watch?v=06jtT3gCyTg&feature=youtu.be

The Mondi Academy offers 40 courses covering Mondi technologies, business tools as well as personal and leadership skills.


The Mondi Academy

Technical Excellence

Business Excellence

Personal Excellence

Leadership Excellence

Customised programmes for

Mondi products Processes Technologies Markets

● Finance ● Project management ● Business English ● Change ● Innovation

● Presentation techniques

● Negotiation skills

● Conflict management

● Intercultural diversity

● Management techniques

● Leadership styles

● Motivation ● Delegation ● Target setting

● Sales ● Procurement ● Shift leaders ● Finance managers ● Customer service ● Many more


Sustainable. Every day. When we think about today, we never forget tomorrow.


Our sustainability performance

Energy efficiency, self-sufficiency and renewable energy Our carbon emission reduction (per unit of saleable production) reached 28% in 2015 against a 2004 basis. The share of renewable energy in the overall fuel consumption of our mills was 59% in 2015. Our electrical self-sufficiency reached 103% in 2015.

Water In 2015 we reduced our contact water consumption by 5% against a 2010 basis.

Forestry All the wood that we source is Chain-of-Custody certified either to FSC® or PEFC™ standards (66% in 2015) or meets our company’s minimum requirement that complies with the standard for Controlled Wood

Communities Since 2010 we have invested around €68 million in social projects and community initiatives globally.

€68 million 66% FSC/PEFC

103% –5%


Our key sustainability performance

Climate change Water Climate change is one of the most pressing global challenges. Our climate commitment focuses on improving energy efficiency and replacing fossil fuels with renewable energy where feasible.

Forests are essential for our business and for the communities in which we operate, and wood is one of our primary raw materials. We are committed to: responsible, sustainable manage-

ment of forests and associated ecosystems

the responsible sourcing of wood, fibre and biomass

Water is a critical resource and a key ecosystem service for our business throughout our value chain. We continue to manage our water footprint through: conducting water impact assess-

ments at all our mills and forest operations

recycling and reusing water where possible, and treatment of our discharged water

Forestry


Our key sustainability performance

People Communities Partnership The people who work at Mondi are central to our success and future development. We rely on a skilled, committed and diverse workforce who work under safe and fair conditions to move our business forward. We invest in training and developing our people. We regularly engage with our people to strengthen and improve our culture.

The future prospects of our business lie in the health and stability of the communities we live and work in. We invest in community projects that address local priorities and needs in line with our long-term business objectives. Key focus areas are education, health, employment and enterprise support as well as infrastructure and development.

In the third year of our 3-year partnership with WWF International, we continue to work together to increase environmental stewardship in the packaging and paper sectors.

Learn more through our website and follow us on social media.


Get in touch with Mondi!

Corporate

• About us • Locations • Investor relations

www.mondigroup.com

Products

• Served industries • Green Range • Research &

Development www.mondigroup.com/ products

Careers

• Meet some of our

people • Career opportunities www.mondigroup.com/ careers

Sustainability

• Case studies • Online sustainable

development report www.mondigroup.com/ sustainability

https://www.youtube.com/user/MondiCom

https://www.linkedin.com/company/mondi-group

https://www.facebook.com/mondigroup

Forward-looking statements disclaimer This document includes forward-looking statements. All statements other than statements of historical facts included herein, including, without limitation, those regarding Mondi’s financial position, business strategy, market growth and developments, expectations of growth and profitability and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as ‘believe’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘shall’, ‘risk’, ‘intends’, ‘estimates’, ‘aims’, ‘plans’, ‘predicts’, ‘continues’, ‘assumes’, ‘positioned’ or ‘anticipates’ or the negative thereof, other variations thereon or comparable terminology. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mondi, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements and other statements contained in this document regarding matters that are not historical facts involve predictions and are based on numerous assumptions regarding Mondi’s present and future business strategies and the environment in which Mondi will operate in the future. These forward-looking statements speak only as of the date on which they are made. No assurance can be given that such future results will be achieved; various factors could cause actual future results, performance or events to differ materially from those described in these statements. Such factors include in particular but without any limitation: (1) operating factors, such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development plans and targets, changes in the degree of protection created by Mondi’s patents and other intellectual property rights and the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for Mondi’s products and raw materials and the pricing pressures thereto, financial condition of the customers, suppliers and the competitors of Mondi and potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in Mondi’s principal geographical markets or fluctuations of exchange rates and interest rates. Mondi expressly disclaims a) any warranty or liability as to accuracy or completeness of the information provided herein; and b) any obligation or undertaking to review or confirm analysts’ expectations or estimates or to update any forward-looking statements to reflect any change in Mondi’s expectations or any events that occur or circumstances that arise after the date of

making any forward-looking statements, unless required to do so by applicable law or any regulatory body applicable to Mondi, including the JSE Limited and the LSE.
