mondi e&i company presentation december 2013

Europe & International

Presentation

Status: December 2013

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Customer Focus

Europe & International Presentation December 2013 Page 1

Our commitment to excellent customer service is reflected in our strong

focus on tailor-made solutions.

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Mondi Group


Mondi is an international packaging

and paper Group, with production

operations across 30 countries and

25,700 employees.

Its key operations and interests are in

central Europe, Russia, the Americas

and South Africa.

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Mondi Group


Key figures Mondi Group

Mondi had revenues from continuing

operations of €5.8 billion in 2012 and

is a dual listed company at the

London Stock Exchange (LSE) and

Johannesburg Stock Exchange

(JSE).

* The Group has restated comparative information following the adoption of revised IFRS standards relating to

consolidations, joint ventures and employee benefits.

1 The Group presents underlying EBITDA as a measure which excludes special items in order to provide a more

effective comparison of the underlying financial performance between reporting periods.

2 ROCE is the 12-month rolling average underlying operating profit expressed as a percentage of the average rolling

12-month capital employed, adjusted for impairments and spend on strategic projects which are not yet in operation.

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Business structure Mondi Group


Consumer Goods

Packaging

Advanced Films &

Components

Corrugated Packaging Containerboard

Industrial Bags

South Africa Europe &

International (E&I)

Forests

Fibre Packaging Packaging Paper Consumer Packaging

Pulp

Uncoated Fine Paper

Kraft Paper

Release Liner

Extrusion Coatings

Uncoated Fine Paper

Containerboard

Newsprint

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Integrated value chain


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Corporate history milestones


1967 Founding of Mondi, South Africa

1997 Acquisition of Świecie,

one of Poland’s

largest paper mills

2000 Acquisition of majority of

Frantschach by Mondi

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%

2004 Acquisition of

the Roman

Bauernfeind

group

2007 Demerger of the Mondi Group from

Anglo American plc and dual listing

on the London and Johannesburg

stock exchanges

Acquisition of 54% of the Turkish

corrugated packaging business

Tire Kutsan

2008 New corporate

structure

announced, Europe

& International

Division and South

Africa Division

created

2009 Completion of the

investments of

€285m in the new

lightweight recycled

containerboard

machine ECO7 and

€45m in the new

state-of-the-art

corrugated box plant

in Świecie, Poland

1793 Founding of the

Neusiedler paper

mill, Austria

1881 Founding of the pulp

and paper mill

Frantschach, Austria

2010 Acquisition of the Western

European industrial and

consumer bags businesses of

Smurfit Kappa

Completion of the €545m

investment in the extension

and modernisation of the

Syktyvkar mill, Russia

2012 Acquisition of the remaining shares

in Mondi Świecie S.A., Poland

Acquisition of NORDENIA INTERNATIONAL AG

Acquisition of Duropack operations in Germany

and Czech Republic

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The Mondi Way


To create solutions for our customers’ success,

delivering exceptional value in a sustainable way

Purpose

Passion for performance

Caring

Acting with integrity

Values

Leading market positions

High-quality, low-cost asset base

Customer focused development

Focus on performance

Strategy

Operational Excellence

People Development

Sustainable Development

Cutting Edge

Products

Customer

Focus

Mondi Diamond

Dynamic

Respectful

Responsible

Entrepreneurial

Empowered

Transparent

Culture

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The Mondi Diamond


People Development

● Inspire and develop

people

● Promote excellence in

leadership

● Shape our culture and

embrace diversity

Sustainable Development

● Care about health and

safety

● Reduce environmental

impacts and engage in

sustainable forestry

● Put social responsibility

into practice

Cutting Edge Products

● Ensure shared product development

and success with customers

● Create competitive advantages with

leading high-quality products and brands

● Leverage expertise and create tailor-

made solutions

Operational Excellence

● Maximise equipment and

process efficiencies

● Focus on quality and

productivity

● Improve cost competi-

tiveness and operational

activities

Customer Focus

● Understand market and

customer needs

● Strive for flawless service

and on-time delivery

● Facilitate sustainable

partnerships and measure

success

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Mondi Europe & International


Key figures

The Europe & International Division (E&I), headquartered in

Vienna, has 96 production sites in 29 countries and about

24,000 employees.

Our division consists of the Packaging Paper, Fibre Packaging,

Consumer Packaging and Uncoated Fine Paper business units.

We are specialists in:

● Containerboard

● Kraft paper

● Corrugated packaging

● Industrial bags

● Release liner

● Extrusion coatings

● Consumer goods packaging

● Advanced films and components

● Office and professional printing paper

Underlying operating profit €337m €261m €538m

Packaging Paper €148m €104m €227m

Fibre Packaging €48m €47m €101m

Consumer Packaging €39m €10m €19m

Uncoated Fine Paper €102m €100m €191m

External revenue €3,073m €2,528m €5,196m

Packaging Paper €1,043m €960m €1,896m

Fibre Packaging €1,002m €946m €1,860m

Consumer Packaging €582m €150m €502m

Uncoated Fine Paper €740m €749m €1,466m

Mondi E&I HY 1/2013 HY 1/2012 2012

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Mondi Europe & International network


96 operations in 29 countries

*

* Operational by early 2014

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Mondi Europe & International


1,213 million m2

3,352 million m2

121 ktonnes

3,829 million units

Production statistics 2012

Containerboard

Kraft paper

Uncoated fine paper

Market pulp

Newsprint

Total pulp and paper

2,079 ktonnes

981 ktonnes

1,418 ktonnes

239 ktonnes

201 ktonnes

4,918 ktonnes

Corrugated

board and boxes

Industrial

bags

Release liner and

extrusion coatings

Consumer

packaging

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Market shares in Europe* No. 1 No. 2 No. 3

Packaging Paper Virgin containerboard1

Kraft paper2

Fibre Packaging

Industrial bags3

Release Liner4

Extrusion coatings5

Uncoated

Fine Paper

Uncoated fine paper6

Office paper6

Emerging Europe** No. 1 No. 2 No. 3

Packaging Paper Containerboard1

Fibre Packaging Corrugated packaging7

A top player in 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 2013,

and management estimates.

2) Based on capacity. Source: Pöyry World of

Paper Market up to 2025, RISI Mill Asset

Database, Pöyry Smart Terminal Service and

management estimates.

3) Based on sales volume. Source: Eurosac,

Freedonia World Industrial Bags 2011 study, AMI

2012 study prepared for Mondi and management

estimates.

4) Based on sales volume in the commercial

market. Source: AWA Release Liner Markets

Global Review 2012 & AWA Industry Survey,

September 2012 report and management

estimates.

5) Based on sales. Source: AWA Extrusion

Coated Material European Market Study 2008,

Dun & Bradstreet and management estimates.

6)Based on sales volume. Source: EMGE

Woodfree Report, December 2012, Eurograph

delivery statistics 2012, Pyrabelisk and

management estimates.

7) Based on sales. Source: Henry Poole

Consulting 2013 and management estimates.

15%

20%

16%

22%

24%

7%

13%

25%

9%

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Business structure Europe & International


Packaging Paper Fibre Packaging Consumer Packaging

Consumer Goods

Packaging

Advanced Films &

Components

Containerboard Corrugated

Packaging

Industrial Bags

Uncoated Fine Paper

Release Liner

Extrusion Coatings

Kraft Paper

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Innovation


Our goal is to create packaging and paper products that meet your current and

future needs. You can experience these solutions by getting in touch.

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Packaging Paper – Containerboard


5 mills

11 sales offices

Solutions for raw material savings.

Major European supplier of virgin and recycled

containerboard

High-speed lightweight recycled containerboard

machine ECO7, located in Central Europe at

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

Appearance Kraft Semi Chem Recycled

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Packaging Paper – Kraft paper


Solutions. Economical and environmental.

Broad range of high-quality sack kraft and

speciality kraft papers

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 Sack kraft paper Market pulp

6 mills

11 sales offices

2 representative offices

3 R&D centres

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Fibre Packaging – Corrugated packaging


Experts in tailor-made corrugated packaging solutions.

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

Heavy-duty

packaging

Top & bottom

solutions

Fruit & vegetable

trays

Shelf-ready

packaging

1 paper mill

16 plants

6 sales offices

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Fibre Packaging – Industrial bags


Bag expertise at your service.

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

Product security High-speed filling Food safety

36 plants

7 sales offices

1 R&D centre Easy handling

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Fibre Packaging – Release liner


Solutions for your self-adhesive products.

Tailor-made silicone-coated and specialty release

liners, specifically designed for pressure-sensitive

applications

Applications served include graphic arts, medical,

hygiene, fibre composites, tapes, labels 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

Graphic arts Labels Tapes

10 plants

2 converting terminals Hygiene

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Fibre Packaging – Extrusion coatings


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

Medical

packaging

Insulation

facers

Building

membranes 5 plants Dehydrated

food packaging

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Consumer Packaging – Consumer goods packaging


Flexible packaging solutions for maximum performance.

Attractive and convenient packaging for the

consumer goods industry

High-quality laminates and barrier materials are

converted into a broad range of flexible packaging

solutions, such as (retortable) stand-up pouches,

reclosable plastic bags, paper-based bags and

microwaveable packaging

The majority of production sites are BRC/IoP- and

ISO 9001:2008-certified, ensuring highest quality

and hygiene standards

Printed laminates

and films

Paper-based

bags (Retort) stand-up

pouches

13 plants

2 sales offices

1 R&D centre (together with

Advanced Films & Components) Reclosable

plastic bags

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Consumer Packaging – Advanced films and components


Advanced technology. Advanced solutions.

Specialist for blown and cast film extrusion with

in-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

5 plants

1 R&D centre (together with

Consumer Goods Packaging) Surface

protection films

Converter

(barrier) films Hygiene

components

Label

films

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Uncoated Fine Paper – Office paper


4 mills

13 sales offices

Solutions for successful communication.

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

NAUTILUS® IQ color/

MAESTRO® color

Color Copy IQ/MAESTRO®

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Uncoated Fine Paper – Professional printing paper


4 mills

13 sales offices

Solutions for successful communication.

Full range of digital printing papers: Color Copy,

DNS®, BIO TOP 3®, NAUTILUS®

Wide portfolio of smooth, high-white/white, off-white,

recycled, colored and coated papers

Green Range = the highest ecological standards

for professional printers on digital, hybrid,

HP Indigo, high-speed inkjet or offset presses

Converting solutions for specialised products

YBBS® premium board provides a natural uncoated

feeling for premium packaging applications

Converting DNS® Color Copy YBBS®

premium board

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Sustainability


Our packaging and paper products are constantly evolving to meet the

changing needs of society and the environment in which we operate.

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Our approach to sustainability


Climate change

25% reduction in specific CO2e emissions (per tonne of saleable product) since 2004

58% of energy generation from renewable sources

4.3 million tonnes of CO2e emissions avoided by carbon sequestration of our plantations

and by selling green electricity, heat and fuels; using recovered paper as a raw material;

and substituting natural gas with biogas

Forestry

100% of managed forests are FSC™-certified

Some 31 million seedlings planted yearly

65% of wood procured is FSC- or PEFC™-certified

598,658 hectares of our leased or owned forestry land (about 25% of our landholding)

are set aside for conservation

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Water

Calculation of our water footprint at operational level

Processed water is treated at wastewater treatment plants

More than 19,500 hectares of wetlands in South Africa are assessed and rehabilitation is

initiated

Products

Lightweight solutions with up to 20% material savings

Biodegradable paper- and plastic-based solutions

Innovative features for extended product and shelf life

Roughly a third of pulp consumed is from paper for recycling

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Employees

The Mondi Academy offers around 40 technical, business and management seminars

in 9 languages

Mondi carries out a global employee survey every two years

Communities

Corporate social investment of €14.3 million in 2012

Community engagement plans in place at all mills and forestry operations

Mondi won five awards in 2012 for its sustainability work, including two WWF Environmental Paper

Awards and the PPI Environmental Strategy of the Year Award 2012.

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Our website


For more information about Mondi please visit our website

www.mondigroup.com

Corporate

About us

Locations

Investor relations

www.mondigroup.com

Products

Served industries

Green Range

Product news and events

www.mondigroup.com/products

Careers

Why talented people work

with Mondi

Meet some of our people

Career opportunities

www.mondigroup.com/careers

Sustainability

Policy and practice

Case studies

Online sustainable development report

www.mondigroup.com/sustainability

IN TOUCH EVERY DAY Europe & International Presentation December 2013 Page 30

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.

mondi e&i company presentation december 2013

Business

international packaging

mondi europe international

mondi wiecie

paper group

mondi wayto

poland2010 acquisition

mondi2004 acquisition

acquisition of majority