mondi group fixed income investor …...this presentation is only addressed to, made available to...

MONDI GROUPFIXED INCOME INVESTOR PRESENTATION

September 2012

Disclaimer

This presentation has been prepared by Mondi plc (the “Company”) for information purposes only. It is not be used for any other purpose.This presentation has been prepared by Mondi plc (the Company ) for information purposes only. It is not be used for any other purpose.

This presentation and its contents are confidential and are being provided to you solely for your information and may not be retransmitted, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

This presentation is only addressed to, made available to and directed at persons who are “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) and who have professional experience in matters relating to investments falling within Article 19(5) or Article 49(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (all such persons together being referred to as “Relevant Persons”). This presentation must not be acted on or relied upon in the United Kingdom, by persons who are not Relevant Persons.

The information contained in this presentation has not been independently verified and no responsibility is accepted and no representation undertaking or warrantyThe information contained in this presentation has not been independently verified and no responsibility is accepted, and no representation, undertaking or warranty is made or given, in either case, expressly or impliedly, by the Company or any of its respective affiliates, officers or advisers as to the accuracy, reliability or completeness of the information contained herein or as to the reasonableness of any assumptions on which any of the same is based or the use of any of the same. Accordingly, no such person will be liable for any direct, indirect or consequential loss or damage suggested by any person resulting from the use of the information contained herein, or for any opinions expressed by any such person, or any errors, omissions or misstatements made by any of them. The statements contained in this presentation are made as at the date of this presentation, unless another time is specified in relation to them, and delivery of this presentation shall not give rise to any implication that there has been no change in the facts set forth in this document since that date. Save as otherwise expressly agreed, none of the above y p g p y gpersons should be treated as being under any obligation to update or correct any inaccuracy contained herein or be otherwise liable to you or any other person in respect of any such information. No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness.

Nothing contained in this presentation shall be deemed to be a forecast, projection or estimate of the Company's future financial performance. This presentation may contain statements, statistics and projections that include words such as "intends", "expects", "anticipates", "estimates" and words of similar import. By their nature, such statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No assurances can be given that such expectations will prove to be correct and actual results may differ materially from those projected because such statements are based on assumptions as to future economic performance and are not statements of fact. There is no obligation to update these forecasts, projections or estimates to reflect events or circumstances after the date hereof, nor is there any assurance that the policies, strategies or approaches discussed herein will not change.

By accepting these materials, you will be deemed to acknowledge and agree to the matters set forth above.

2

Agenda

Group overview and strategyIndustry FundamentalsyJune 2012 financial resultsNordenia acquisitionCapital structure and financial policiesSummaryAppendices

PresentersPresentersAndrew King CFOJames Paterson Group TreasurerJames Paterson Group Treasurer

3

Group overview

Mondi is an integrated paper and packaging group, with production operations across 28 countries and revenues of €5.7bn in 2011

The Group’s key operations are located in central Europe, Russia and South Africa and employees as at the end of 2011 of 23,400 people

Leading market positions, well invested low cost asset base, customer focused development and a consistent focus on operating efficiency

6 month results for H1 2012 Revenue €2 8bn Revenue €2.8bn EBITDA €436m Operating profit €269m Net debt €1.3bn

Listed on LSE (FTSE 250) and JSE (JSE Top 40) with a market cap of £2.7bn Credit ratingsg Baa3, stable (Moody’s) BBB-, stable (Standard & Poor’s)

4

Mondi at a glance

Packaging Paper

Fibre Packaging

Consumer Packaging3 UFP South Africa Newsprint

H1 2012R 1

27%21%

8%2%

€960m €946m €590m €749m €287m €83m

Revenue1

26% 16%

H1 2012 EBIT %2 10.8% 5.0% 7.9% 13.4% 10.1% (3.6%)

Products

5

1 Segment revenues, including inter-segment revenues. 2 EBIT % is before special items3 Includes Nordenia H1 2012 results on a pro-forma basis

Key financials

154 55 436 € million

2012 H1 EBITDA

601

750 € millionHY1 HY2

HISTORIC OPERATING CASH FLOWS

150 80 15

230

208 229

356 310

392

269

403 353 343

428485 475 509 513

250

500

(18)-20

Corp/ Other

Packaging paper

Fibre packaging

Consumer packaging

UFP SA Total Mondi

-2005 2006 2007 2008 2009 2010 2011 2012

2.352.90

2 2502,500

NET DEBT / EBITDA

18 0020.00 1,500

EBITDA AND ROCE

1 690

1.732.08

2.35

1.71

0.860 90

1.40

1.90

2.40

1,000 1,250 1,500 1,750 2,000 2,250

964

10.609.50

7.60

12.30

15.00

8.00 10.00 12.00 14.00 16.00 18.00

500

750

1,000

1,250

1,507 1,690 1,517 1,363 830

-0.10

0.40

0.90

-250 500 750

2007 2008 2009 2010 2011

Net Debt (€ million) Net Debt/EBITDA

871 813 644

798 964

-2.00 4.00 6.00

-

250

500

2007 2008 2009 2010 2011

EBITDA (€ mllion) ROCE%

6

Source: Mondi

Net Debt (€ million) Net Debt/EBITDA EBITDA (€ mllion) ROCE%

Key pillars of our strategy

Maintain and/or develop leading positions in Packaging (corrugated, industrial bags, consumer packaging and coatings) and UFP, particularly in high-growth markets

Leading market positions

Maintain our low-cost, high-quality asset base by selectively investing in production capacity enjoying sustainable cost advantages, particularly for standard products

High-quality, low-cost

asset base

Customer focused

Develop markets and products aligned to our customer needs by:o Focused, customer lead product developmento Increased exposure to more value added innovative technologically advanced productsfocused

developmento Increased exposure to more value added, innovative, technologically advanced products o Follow customers into high growth emerging consumer markets particularly for differentiated

products

Focus on performance through continuous productivity improvement and cost reduction, delivered through business excellence programmes and rigorous asset management

Focus on performance

7

Focus on Packaging and UFP in emerging markets1

Revenue by destination

Revenue by origin

Net operating assets

Revenue by product

Emerging markets

52%48%

57%43% 29%

15%

62%24%

14%26%

57%40%52%40%Maturemarkets

52% 57% 71% 85%62%24%

Packaging

PIIGS

71%3%57%

3%

52%

8%

Packaging

Uncoated fine paper

Other

8

1 Mondi June 2012 data

Market positions

Packaging Paper

Fibre Packaging

Consumer Packaging UFP South Africa NewsprintLeading market

positionspositions

No. 1 Recycled containerboard in Emerging Europe1

N 2 Vi i

No. 1 Corrugated Packaging in Emerging Europe3

N 1 i I d t i l

No. 1 in Office Paper in SA1

No. 1 in White Top Kraftliner in SA1

No. 1 in Newsprint in South Africa1

No. 1 in Office Paper and UFP in Europe 2

Mondi and Nordenia will together be No.3 in consumer packaging in No. 2 Virgin

containerboard in Europe1

No. 1 in Kraft Paper in Europe1

No. 1 in Industrial Bags in Europe2

No. 1 in Commercial release liner in Europe2

SA1packaging in Europe4

9

1. Based on production capacity. 2. Based on sales volume. 3. Based on production. 4. Based on turnoverSources: RISI, Pöyry Forest Industry Consulting, Freedonia, BMI Foodpack, PAMSA, Mondi, PCI, Nordenia

High quality low cost asset base

Percentage of Mondi's capacity in overall cost curve at Q1 2012

QuartileHigh-quality,

low-cost Quartile

Delivered cost¹ 1st 2nd 3rd 4th

Unbleached Sack Kraft Paper 24% 15% 43% 18% Emerging market asset

asset base

NSSC Fluting 100% - - -

Unbleached Kraftliner 100% - - -

White Top Kraftliner 100%

market asset base leads to low cost positions across the group’s main White Top Kraftliner 100% - - -

BHKP (Pulp)² - 100% - -

Recycled fluting 75% 25% - -

g pgrades

UFP (all - RISI) 35% 38% 25%3 2%3

10

1 Delivered to Frankfurt except where noted2 Delivered to Rotterdam3 Includes specialtiesSource: RISI and Mondi estimates

Integrated across the value chain1

Millionsof tonnes

Millionsof tonnes

Kraft PaperPulpHigh-quality,

low-cost Europe & International Europe & International

0.3 0 20.30.40.50.6

1 5 1 7

0.4 0.1

0 30 51.0 1.5 2.0 2.5 asset base

Upstream

SA Division

0.5 0.2 0.00.10.2

Production Consumption Net long position

1.5 1.7

(0.2)

0.3

(0.5)0.0 0.5

Production Consumption Net long/(short) position

pproduction cost advantages

0 6

Millionsof tonnes

0 7

Millionsof tonnes

Virgin Containerboard Recycled Containerboard

Europe & InternationalEurope & International

SA Division

0.3

0 10.20.30.40.50.6

0.1 0.1 0.1

0.20.30.40.50.60.7 SA Division

0.6 0.3 0.00.1


0.5 0.4 0.00.1


11

1 Based on H1 2012 production volumes

Customer focused development

Customer focused

Develop markets and products aligned to our customer needs by:

Focused customer lead product developmentdevelopment Focused, customer lead product development

e.g. novel and innovative pet food packaging product development

Increased exposure to more value added, innovative, technologically advanced products

Speciality kraft paper investmentsy

Nordenia acquisition and recent release liner acquisitions in US

Follow customers into high growth emerging consumer markets

Continued ramp up of plants in Russia and China to service leading FMCG clients

12

Focus on performance

30%28%2 000

€ millionFixed costs composition

Focus on performance 28%

26% 25% 25% 26%23% 22%

20%

25%

30%

1,500

2,000 performance

10%

15%

500

1,000

0%

5%

-

500

2004 2005 2006 2007 2008 2009 2010 2011Personnel Depreciation and amortisation Maintenance and other indirect costs Other net operating expenses

Continued focus on cost management

Fixed costs as a % of revenue excluding depreciation

H1 2012 fixed costs only marginally up on 2011

13

Free cash flow priorities

Maintain investment grade credit metrics Ratings reaffirmed during period

Selective capital investment opportunities, mainly around cost optimisation

Good progress on energy projectsSyktyvkar pulp dryer on hold

Support dividends Interim dividend increase of 8%

ŚM&A and/or increased shareholder distributions, as appropriate

Świecie non-controlling interests acquiredSaturn energy power plant acquiredProposed acquisition of Nordenia

14

Agenda



15

Corrugated | industry fundamentals

Price indexed vs 2007 opening levelsDemand Sluggish short-term growth due to macro-

Selling prices - indexed

1.20 1.30 1.40 1.50 Kraftliner - indexed

White-top Kraftliner - indexedRCB / Recovered paper differential - indexed

economic slowdown Structural growth drivers in place

Supply

0.80 0.90 1.00 1.10

Supply Kraftliner Peterson bankruptcy - ±8% of European

Kraftliner capacity closed

0.50 0.60 0.70

2007 2008 2009 2010 2011 2012

Kraftliner capacity closed Production interruptions at key

competitorSt US d ll li iti i t Strong US dollar limiting imports

Recycled containerboard Net supply expansion (± 1.5 million

tonnes in 2012 to 2014)

16

Kraft Paper | industry fundamentals

€/tonne

Commercial downtime ended in Q1 with full production in Q2

L lli i th H1 d

Unbleached sack kraft prices

Lower average selling prices than H1 and H2 2011, although price increases announced to take effect in H2 2012

L d d l i t t2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Unbleached sack kraft Average

Lower wood and pulp input costs compared to H1 2011

European demand stable in northern and eastern Europe weak in southern Europe (17% of kraft

paper revenue) Export markets remain strong, driven by Underlying demand growth Supply contraction Supply contraction

17

Uncoated Fine Paper | industry fundamentals

€/tonne€/tonneDemandWestern Europe impacted by both short-

Pulp and A4 B-copy prices

600

700

800

800

850

900p p y

term cyclical pressures and ongoingstructural decline

Emerging Europe and Russia softer in light

300

400

500

700

750

Emerging Europe and Russia softer in light of macroeconomic downturn, still enjoy structural growth

Supply

100

200

600

650 A4 B-copy €/ton

Pulp (BHKP) - EUR/tonne (RHS)

Supply Around 700 ktpa closures for 2012

Only new capacity expected in Russia (Ilim2007 2008 2009 2010 2011 2012

A4 B copy – €/tonne

Pulp (BHKP) – €/tonne (RHS)

Only new capacity expected in Russia (Ilimpulp ±150 ktpa UFP)

18

Agenda



19

HighlightsGood operating performance after a

challenging start to the year12.0%

€ millionUnderlying operating profit

Return on Capital Employed of 13.3%, above through-the-cycle target of 13%

Strong cash generation of €353 million

9.6% 9.5%

g g

Significant strategic acquisitions

Świecie minorities acquired for €296 illi

354 268 269

H1 2011 H2 2011 H1 2012EBIT margin %

€296 million

Świecie power plant acquired for€88 million€ million

Underlying earnings

€655 million acquisition of Nordenia agreed

195 145 149

H1 2011 H2 2011 H1 2012

20

Operating financial highlights

€ millionH1

2011H2

2011H1

2012

% change vs

H1 2011

% change vs

H2 2011

Group Revenue 2,942 2,797 2,840 -3% +2%

Underlying EBITDA1 526 438 436 -17% -

% Margin 17.9% 15.7% 15.4%

Underlying operating profit2 354 268 269 -24% -

% Margin 12.0% 9.6% 9.5%% Margin 12.0% 9.6% 9.5%

Working capital cash flows (143) 75 (102)

Cash generated from operations 403 514 353 -12% -31%

Net debt (1,200) (831) (1,273) -6% -53%

Group ROCE3 15.2% 15.0% 13.3%

21

1 Underlying EBITDA is operating profit of subsidiaries and joint ventures before special items, depreciation and amortisation, excluding Mpact2 Underlying operating profit is operating profit from continuing operations before special items3 Group return on capital employed (ROCE) is an annualised measure based on underlying operating profit plus share of associates net earnings divided by average trading capital employed before impairments and adjusted for major capital projects not yet commissioned

Agenda



22

Nordenia acquisition | highlights

Acquisition of 93.9% of Nordenia for implied enterprise value of €655m

C bi ti t l di k i b i Combination creates a leading consumer packaging business

Cost and revenue synergy opportunities of €15 million p.a. pre-tax by 2014

By 2014, double digit underlying EPS enhancing¹ and beats Mondi’s through-the-cycle ROCE target

Increases the Group’s product diversity

More stable earnings profile than paper businessMore stable earnings profile than paper business

Consumer product exposure > 90%

F k idi f i h h f i i Framework agreements providing for automatic pass-through of resin price movement covering over 80% of sales

Expected completion in Q4 2012

23

Expected completion in Q4 2012

1 Mondi’s 2011 underlying earnings used as basis for calculation and assumes all premium above book value allocated to goodwill.

An innovative consumer packaging solutions provider

Nordenia is an international supplier of innovative consumer packaging solutions and hygiene components

Production facilities

Nordenia plant Competitive advantage through proprietary

technology and customer-focused innovation International presence with 12 fully invested

operating facilities located in 7 countries across p gEurope, North America and Asia; plant in China under construction¹

Operations in Central Europe, Russia and Asia provide access to low-cost production and high-

4%Germany

p o de access to o cost p oduct o a d ggrowth emerging markets

Blue chip customer base and relationships of 19 years on average with top 10 customers

St t bl t ith t k

Serving customers worldwide³

32%

16%

12% Western Europe excl Germany

North America

Central and Eastern Europe

Strong, stable management with proven track record of successfully developing and expanding Nordenia’s operations

Over 90% of revenues in FMCG, giving resilience i d

24%12%

p

Asia/Pacific

Other

in a downturn 2011 turnover of €881 million, EBITDA² of

€99m

24

1 Expected to be operational by early 20142 2011 EBITDA adjusted for implied factoring facility interest of €1 million3 Revenue by destination for 2011

A complementary product portfolioConsumer packaging Hygiene components

Advanced films Re-closable bags and stand-up pouches Lamination Diaper components Feminine hygiene

release liner

NordeniaAd d fil f l b l P d l bl P i t d l i t t Fil b d l ti Fil b d l li• Advanced films for labels, surface protection and lamination as well as high barrier films, predominantly for use in FMCG packaging

• Pre-made, re-closable bags for use in FMCG packaging

• NorSpout bag (an alternative to conventional bottles) for use in FMCG

• Printed laminates to improve shelf-life, convenience, freshness and sterility of FMCG for customers

• Film based elastic components (back ear laminates)

• Fastening systems

• Film based release liner for feminine hygiene products

p g g )packaging

Advanced films Re-closable bags and stand-up pouches Lamination P&G relationship Feminine hygiene

release liner

Mondi• Advanced films and high

barrier films for FMCG• Pre-made re-closable

bags and stand-up• Printed laminates and

barrier materials to• Mondi has a strong

existing relationship with• Paper based release liner

for feminine hygienebarrier films for FMCG packaging

• Complementary product: release liner for labels

bags and stand-up pouches for use in FMCG packaging

barrier materials to ensure long shelf-life and freshness of FMCG for customers

existing relationship with P&G, supplying release liner, consumer packaging and corrugated packaging

for feminine hygiene products

25

Acquisition and financing structure Acquisition EV of €655m (100% basis), including assumption of €280m bond and €118m

other debt and debt-like liabilities¹

€242m cash funding requirement for acquisition of 93.9% shareholding financed by a new two year €250m committed facility. Minorities squeeze out available

€280m Nordenia bond

Coupon of 9.75% and due 2017

Significant headroom on undrawn committed facilities if bond holders decide to exercise h f t l tichange of control option

Option to repay early subject to make-whole premium payable up to July 2014

Investment grade credit ratings reaffirmed by agencies post transactiong g y g p

Baa3 (stable) / BBB- (stable)

Pro forma 2011 net debt/EBITDA² of 1.7x

Post transaction, undrawn committed facilities in excess of €500m

26

1 Debt at book value. Debt-like liabilities include factoring debt, pension liabilities and certain other net financial liabilities2 Pro forma net debt / EBITDA based on 2011 reported financials adjusted for the full year effects of the acquisitions of Świecie minorities and Nordenia

Agenda



27

Capital structure & financial policies Conservative approach to leverage

Capital structure to maintain investment grade ratings Articulated as a key strategic objectivey g j

Bank facility covenant 3.5x Net Debt/EBITDA Significant headroom on current ratio

Net debt/EBITDA of 1.3x as at June 2012 Pro forma 2011 Net Debt/EBITDA of 1.7x adjusted for the full year effects of the acquisitions

of Świecie minorities and Nordenia

Rigorous asset management & capital deployment ROCE key internal and public management target: 13% over cycle Significant % of management performance indexed to ROCE

Group hedging policies Foreign exchange balance sheet positions hedged. No hedging of forecast FX positions and

no net investment hedging Interest rate policy allows between 20% and 100% of net debt to be at fixed rates of interest Interest rate policy allows between 20% and 100% of net debt to be at fixed rates of interest.

Minimal commodity hedging

Dividend cover of 2 to 3 times on average through the cycle

28

Debt facilities and net debt

€ millionH1

2011H2

2011H1

2012

Net debt (1,200) (831) (1,273)

Gearing (Net debt / Trading capital employed) 27% 22% 31%

Net debt / 12 month trailing EBITDA (times) 1.3 0.8 1.5

Committed facilities1 1,897 1,839 1,795

Of which undrawn1 781 889 584

Net debt increased by €442m from December 2011 mainly due to Seasonal working capital outflows

Of which undrawn 781 889 584

Seasonal working capital outflows Acquisition of non-controlling interest in Mondi Świecie S.A. of €296m Acquisition of Saturn Management of €88m Usual bias towards H1 of cash outflows from financing activities

Long-term investment grade credit ratings reaffirmed Baa3 (Moody’s Investor Services) BBB- (Standard & Poor’s)

29

1 Excludes €250m acquisition facility

In July, secured a new two-year €250m committed bank debt facility to fund the proposed acquisition of Nordenia International AG

Committed debt facilities

750

Maturity profile of committed facilities (€ million)

467

9500

Drawn Headroom Acquisition facility

182341

54326

9

467

73250 250

18246 45 55

9-

<1yr 1-2yrs 2-3yrs 3-4yrs 4-5yrs >5yrs

Largest facility is €750m syndicated revolver maturing in April 2016, €460m undrawn at June 2012

€500m 5.75% bond maturing in 2017

Additional €225m of uncommitted facilities of which €86m undrawn at June 2012

Approximately half of the €208m short term committed facilities maturing within one year are expected to be renewed as they support cash management operations

30

1 Mondi June 2012 data

Credit Ratings

Long-Term Corporate Credit Rating: BBB-Issuer Rating: Baa3

Moody’s S&P

Outlook StableOutlook Stable

“The Baa3 issuer rating with a stable outlook reflects Mondi’s well-diversified business profile by products and regions, underpinned by leading regional market

“Mondi will be able to sustain credit metrics commensurate with our rating, despite weakening operating conditions in Mondi's main markets.

positions…

…track record of relatively stable and strong margins compared to peers, which is supported by the majority of the

… "satisfactory" business riskprofile, underpinned by its low cost position, with a well-invested assetbase, a leading position in emergingwhich is supported by the majority of the

group's assets being located in higher-growth and lower-cost emerging markets, such as Poland and Russia…

t ti l i t ti i t t

base, a leading position in emerging markets, and meaningful geographic andend-market diversity.

The consolidated Mondi group's business i k fil ill b h t t th d…strong vertical integration into cost

competitive fibre and energy…

... balanced financial policy reflected in a moderate debt-load…”

risk profile will be somewhat strengthened following the Nordenia acquisition

S&P 11 July 2012

31

Moody’s 13 August 2012

Dividends

30

Dividends declared (€ cents per share)

20

25

30

23.020.0

26.0

15.7

5.0

7 0

16.5

17.75

10

15 12.79.5

7.3 7.7 2.5 3.5

8.3 8.9 7.0

-

5

2007 2008 2009 2010 2011 2012

Interim Dividend Final Dividend

Target dividend cover of 2 to 3 times on average through the cycle

Payout ratio will vary each year in accordance with the business cycle

Demonstrated willingness to cut the dividend significantly in 2008/2009 to remain within target cover range

32

Agenda



33

Summary Strong liquidity position supported by significant cash generation

Investment grade credit ratings reaffirmed following recent acquisitions

Conservative management committed to investment grade credit metrics g g

Robust business model with proven and clear strategy

34

Agenda


35

Abridged income statement

€ millionH1

2011H2

2011H1

2012

% change vs

H1 2011

% change vs

H2 2011Group Revenue 2,942 2,797 2,840 -3% +2% Materials, energy and consumables used (1,528) (1,470) (1,500)Variable selling expenses (257) (254) (264)G i 1 157 1 073 1 076 7%Gross margin 1,157 1,073 1,076 -7% -Maintenance and other indirect expenses (133) (139) (124)Personnel costs (417) (391) (413)Other net operating expenses (81) (105) (103)p g p ( ) ( ) ( )EBITDA 526 438 436 -17% -Depreciation and amortisation (172) (170) (167)Underlying operating profit 354 268 269 -24% -N t i f i t 2 (1) 1Net income from associates 2 (1) 1 Net finance charges (60) (51) (53)Profit before tax 296 216 217 -27% -Taxation charge (59) (43) (43)Taxation charge (59) (43) (43)Profit after tax 237 173 174 -27% -Total non-controlling interest (42) (28) (25)Underlying earnings 195 145 149 -24% +3%

36

Abridged cash flow

€ millionH1

2011H2

2011H1

2012

% change vs

H1 2011

% change vs

H2 2011Underlying EBITDA 526 438 436 -17% -Working capital movements (143) 75 (102)Other operating cash flow items1 20 1 19 p gCash generated from operations 403 514 353 -12% -31%Dividends from financial investments and associates - 2 -Taxes paid (45) (40) (45)p ( ) ( ) ( )Net cash inflow from operating activities 358 476 308 -14% -35%Capital expenditure (127) (141) (112)Investment in forestry assets (23) (19) (29)y ( ) ( ) ( )Proceeds on sale of fixed assets and other items 12 2 (1)

220 318 166 -25% -48%Acquisitions2 (16) (4) (384)q ( ) ( ) ( )Disposals3 14 216 1 Net cash flow after investing activities 218 530 (217)

37

1 Including Mpact cash flows2 Includes net debt assumed and the impact of the acquisition of non-controlling interests3 Includes net debt disposed of

Abridged balance sheet

€ millionJune2011

Dec2011

June2012

Non-current assets 4,231 3,971 4,068Current assets 2,226 1,674 1,672Total assets 6,457 5,645 5,740, , ,

Current liabilities (1,607) (1,306) (1,323)Non-current liabilities (1,584) (1,604) (1,602)( , ) ( , ) ( , )Total liabilities (3,191) (2,610) (2,925)

Net assets 3,266 3,035 2,815

Attributable to equity holders of parent companies 2,814 2,586 2,515Non-controlling interests in equity 452 449 300Total equity 3,266 3,035 2,815

38

Divisional underlying operating profit¹

€ millionH1 2011

105

128118

10087

96 100100120140

H1 2011

H2 2011

H1 2012

27

7387

35

65

29406080

27

(5)(13)

9

(3)-200

20

(13)-40

Corrugated Bags & Coatings Uncoated Fine Paper

South Africa division

Newsprint

Capital employed2 1,087 1,347 1,270 840 66

39

1 Underlying operating profit is operating profit of subsidiaries and joint ventures before special items2 Capital employed as at 30 June 2012

Key features of the DLC structure

Single Corporate Group MPLC d MLTD t

Mondi plc ordinary Mondi Ltd ordinary

Equalisation Ratio 1:1

MPLC and MLTD separate legal entities with separate stock exchange listings

Unified boards and

shareholders shareholders

Unified boards and management

Head office located in South Africa since December 2008

Mondi plc Mondi Ltd

sharing agreement

cross Shareholders of both

companies effectively vote together as a single decision making body

SINGLE CORPORATE GROUP

guarantees

Corporate guarantee making body

Cross guarantees between MPLC and MLTD

Any takeover offer must be

Mondi Finance plc

ymade to shareholders of both MPLC and MLTD

Non - African operations African operations

40

Production sites in 28 countries

41

New Europe & International management and reporting structure¹

Packaging Paper

Fibre Packaging

Consumer Packaging2 UFP

Containerboard Corrugated Packaging Consumer Bags UFPFormer Bags & Coatings business

Former Corrugated businessgKraft paper Industrial Bags Nordenia

Coatings

H2 H1 H2 H1 H2 H1 H2 H1

g

€ million 2011 2012 2011 2012 2011 2012 2011 2012

Sales 943 960 908 946 142 150 695 749

EBITDA 168 150 72 80 16 15 140 154

EBIT 122 104 40 47 10 10 87 100

Net Segment Assets 1,249 1,373 866 916 131 145 1,283 1,270

42

1 Subject to completion of Nordenia acquisition2 Excluding Unterland

Acronyms

DLC Dual listed company structurep yUFP Uncoated fine paperNSSC Neutral sulphite semi-chemicalBHKP Bleached hardwood kraft pulpRCB Recycled containerboardVCB Virgin containerboardVCB Virgin containerboardTRCR Total recordable case rate

43

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