mondi e&i company presentation march 2015

Europe & InternationalPresentation

Status: March 2015

IN TOUCH EVERY DAY

Our products touch the lives of millions, every day.

March 2015Europe & International presentation

https://www.youtube.com/watch?v=jRJWnev7q4w

https://www.youtube.com/watch?v=jRJWnev7q4w


International. Every day.

We act locally. At around 100 sites. Worldwide.

Mondi Group

We are an international packaging and paper Group, employing around25,000 people across more than 30 countries.

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


Europe & International (E&I)

Division

South Africa Division

Corrugated Packaging

Fibre Packaging

Industrial Bags

Extrusion Coatings

Advanced Materials

Consumer Packaging

Consumer Goods Packaging

Uncoated Fine Paper

Uncoated Fine Paper

Containerboard

Pulp

Containerboard

Packaging Paper

Sack Kraft Paper

Speciality Kraft Paper

Mondi Group – Key figures

In 2014 Mondi had revenues of €6.4 billion and a ROCE of 17.2%. The Group is listed on both the London Stock Exchange (LSE) and Johannesburg Stock Exchange (JSE).


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 between financial reporting periods.

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.

2014 2013 Change

Revenue €6,402m €6,476m (1%)

Underlying EBITDA1 €1,126m €1,068m 5%

Underlying operating profit1 €767m €699m 10%

ROCE2 17.2% 15.3% -

Mondi Group

* Under construction

Mondi Group – Network

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


*

Our history


1967Founding of Mondi

1793• Founding of the Neusiedler paper

mill, Austria

1881• Founding of the pulp and paper mill

Frantschach, Austria

1997• Acquisition of Świecie, one of Poland’s

largest paper mills

2000 • Acquisition of majority of Frantschach• Acquisition of 50% of the Ružomberok UFP &

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

2002 • Increased ownership of the Syktyvkar

mill, Russia, to over 90%

2010• Acquisition of the Western European

industrial and consumer bags businesses of Smurfit Kappa

• Completion of the extension and modernisation of Syktyvkar, Russia

2007• Demerger of the Mondi Group from Anglo

American plc• Acquisition of majority stake in

Tire Kutsan, Turkey

2009• Start of new lightweight recycled containerboard machine ECO7 and

corrugated box plant in Świecie, Poland

2012• Acquisition of

NORDENIA INTERNATIONAL AG• Acquisition of Duropack operations in

Germany and Czech Republic

2014• Acquisition of the industrial bags and kraft

paper business of Graphic Packaging International, USA

2013–2016• Over €500 million allocated to major

strategic capital projects

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

● Passion for performance● Caring● Acting with integrity

● Dynamic● Respectful● Responsible

● Entrepreneurial● Empowered● Transparent

● Operational excellence● People development● Sustainable development

● Cutting edge products● Customer focus

● Leading market positions● High-quality, low-cost asset base● Customer focused development● Focus on performance

Purpose

Values

The Mondi Way


Strategy

The Mondi Diamond

Culture

Europe & International presentation

The Mondi Diamond

March 2015

Operational Excellence Cutting Edge Products Sustainable Development

Customer Focus People Development

We 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

We focus on● Maximising equipment and

process efficiencies● Delivering on quality and

productivity expectations● Improving cost

competitiveness

We 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

We focus on● Understanding market and

customer needs● Striving for flawless service

and on-time delivery● Facilitating sustainable

partnerships and measuring success

We 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.



Mondi Europe & International

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

March 2015

Packaging Paper Fibre PackagingConsumer Packaging

Advanced Materials

Consumer Goods Packaging

ContainerboardCorrugated Packaging

Industrial Bags

Uncoated Fine Paper

Extrusion Coatings

Sack Kraft Paper

Speciality Kraft Paper


Mondi Europe & International – Key figures

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

March 2015 Page 11

Mondi E&I

Revenue 2014 2013* Change

Packaging Paper €2,043m €2,073m (1%)

Fibre Packaging €1,852m €1,690m 10%

Consumer Packaging €1,379m €1,414m (2%)

Uncoated Fine Paper €1,240m €1,335m (7%)

Underlying operating profit1 2014 2013* Change

Packaging Paper €342m €308m 11%

Fibre Packaging €102m €86m 19%

Consumer Packaging €96m €79m 22%

Uncoated Fine Paper €148m €164m (10%)

Mondi Europe & International

* The Group has restated comparative information following the refinement of its organisational structure, resulting in several changes to segmental reporting. The reorganisation had no impact on the overall Group result.

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 between financial reporting periods.

Production statistics 2014


Total pulp and paper = 5,054 ktonnes

Containerboard

2,160 ktonnes

Kraft paper

1,130 ktonnes

Uncoated fine paper

1,361 ktonnes

Market pulp

201 ktonnes

Newsprint

202 ktonnes

Corrugated board and boxes

1,343 million m2

Industrial bags

4,446 million units

Extrusion coatings

1,401 million m2

Consumer packaging

6,397 million m2

A top player in Europe

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


#2 #1 #1 #3 #2 #1 #1 #1 #2Virgin

container-board1

Kraft paper2

Industrial bags3

Release liner4

Extrusion coatings5

Uncoatedfine

paper6

Office paper7

Container- board1

Corrugated packaging8

Europe* Emerging Europe**

* Europe including Russia and Turkey

**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

1 Based on capacity. Source: RISI European Paper Packaging Capacity Report, January 2014, and management estimates2 Based on capacity. Source: Pöyry World Paper Markets up to 2025, RISI European Paper Packaging Capacity Report, RISI Mill Asset Database, Pöyry Smart Terminal Service and

management estimates 3 Based on sales volume. Source: Eurosac, Freedonia World Industrial Bags 2011 study (revised in 2013) and management estimates4 Based on sales. Source: AWA Global Release Liner Market Update 2014 and management estimates5 Based on sales. Source: AWA European Extrusion Coated Materials Market Study, draft version 2012, and management estimates6 Based on sales volume. llim JV considered separate from IP. Source: EMGE World Graphic Paper Report 2013, Eurograph delivery statistics 2013, Pyrabelisk and management estimates

7 Based on sales volume. Source: EMGE World Graphic Paper Report 2013, Eurograph delivery statistics 2013, Pyrabelisk and management estimates8 Based on production. Source: Henry Poole Consulting 2014 (data for 2013) and management estimates


Integrated value chain

March 2015

Paper mill Uncoated fine paper Finishing

Office and professionalprinting paper

Forest Pulp mill Pulp

Paper mill

Forest Pulp mill Pulp

Recycled and virgin containerboard

Box plant

Corrugatedpackaging

Paper for recycling

Pulp mill Pulp Paper mill Sack kraft paper andspeciality kraft paper

Converting plant

Industrial bags

Extrusion coatings

Advanced materials: release liner

Converting plant

Film extrusion plant Films

Advanced materials: films and hygiene components

Consumer goodspackaging


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

● 6 mills

● 11 sales offices

Containerboard

March 2015

Appearance Kraft Semi Chem Recycled


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

●Ecologically sound products from the Mondi Green Range

● 5 mills


● 2 representative offices

● 4 R&D centres

Sack kraft paper

March 2015

Cement & building Chemicals Food Other industries


● 4 mills

● 2 converting terminals

● 9 sales offices

● 4 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

●Ecologically sound products from the Mondi Green Range

Speciality kraft paper

March 2015

Bags &shoppers

Coating & laminates

Release base & medical

Hygiene & enveloperelease liner

Creating high-performance corrugated solutions for your needs

●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 and R&D-dedicated infrastructure and tools

Corrugated packaging


Heavy-duty packaging

Top & bottom solutions

Fruit & vegetable trays

Shelf-ready packaging

● 14 plants

● 4 sales offices

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


● 45 plants

● 7 sales offices

● 1 R&D centre Product securityHigh-speed filling Food safety Easy handling


Tailor-made barrier solutions for our customers’ needs

●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

● 5 plants

Extrusion coatings

March 2015

Foam papers

Foam facersConsumer barrier solutions

Transport packaging


Hygiene components and film solutions for individual needs

●Specialist for blown and cast film extrusion within-depth knowledge about the development and production of film-based solutions

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

●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

March 2015

Surface protection films

Converter (barrier) films

Hygiene components

Labelfilms

● 6 plants

● 1 R&D centre


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

● 7 plants

● 1 sales office


March 2015

Graphic arts LabelsTapes Fibre composites


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

March 2015

Printed and unprinted films and multilayer laminates

Stand-up pouches Reclosable plastic- based bags

● 13 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 = the highest ecological standards for office users

● 4 mills


Office paper

March 2015

NAUTILUS®

IQ color/MAESTRO® colorColor Copy IQ/MAESTRO®


One-stop paper manufacturer for graphic printing needs

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

●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

●Green Range = the highest ecological standards for professional printers

●Converting solutions for specialised products

●YBBS® premium board provides a natural uncoated feeling for premium packaging applications

ConvertingYBBS®

premium boardColor Copy DNS®

● 4 mills


Professional printing paper

March 2015

Design papers

Customer focused. Every day.

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


Expertise across markets


Food & beverages

Building & construction

Home & personal care

Office & professional printing paper



Medical & pharmaceutical Automotive Pet care

Paper & packaging converting



March 2015

Chemicals & dangerous goods

Graphic & photographic

Multiple other industries

Farming & agriculture


Green Range

March 2015

Packaging and paper solutions that are:optimised to save natural resources and reduce waste,certified for their sustainability by internationally recognised bodies.

EcoVantage Kraft Top XONE and ONEPlus

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

A lightweight containerboard starting at 70 g/m² – made mainly of recycled fibre and 100% recyclable.

Uncoated fine paperModulo

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

All our branded papers meet the following criteria:

FSC™/PEFC™ certified or totally chlorine-free (TCF) or 100% recycled

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.

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

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

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

Food Safety Laboratory

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

R&D Innovation Centre

Bag Application Centre

UFP Product & Process Development Centre

Consumer Packaging R&D Centre

Print Competence Centre

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


Cutting edge products

March 2015

FIBROMER®

Revolutionary and sustainable polymer reinforced with cellulose fibre for various injection moulding applications.

pak-(k)it®

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

ColdSealPack®

A self-sealing packaging solution allowing easy wrapping without tape or glue.

Unfold (y)our true potential. Every day.

We want to be a place where everyone can grow. Careers can be made. And opportunities unfold.


An inspiring place to work

Working at Mondi is exciting and challenging!


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

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


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

●Many more

Sustainable. Every day.

When we think about today, we never forget tomorrow.


Our key sustainability focus areas


ForestryClimate change Water

Climate change represents

one of the greatest threats to

our environment, society and

economy. Our climate change

programme is mainly focused

on:

● more efficient use of energy

● increasing our use of

renewable energy

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

management 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

assessments at all our mills and

forest operations

● recycling and reusing water

where possible, and treatment

of our discharged water

Our key sustainability focus areas


CommunitiesEmployees Partnership

Our people, and the care they

take in their work, make it

possible for us to achieve our

sustainable development goals.

So it’s vital that we

communicate effectively with

them every day and make sure

we protect their health and

safety at all times.

The future prospects of our

business lie in the health and

stability of the communities we

live and work in.

We aim to make a real and

lasting contribution to our

communities both through

direct and indirect economic

contributions and through

community engagement plans.

In February 2014, we entered a

3-year partnership with WWF

International, focusing on

increasing environmental

stewardship in the packaging

and paper sectors.


Get in touch with Mondi!

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

March 2015

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

Facebook: www.facebook.com/MondigroupLinkedIn: www.linkedin.com/company/mondi-groupYouTube: www.youtube.com/MondiCom

http://www.facebook/Mondigroup

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

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

Europe & International presentation March 2015

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; andb) 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.