mondi group presentation august 2017

Mondi

Group presentation

Status: August 2017

Group presentation 2August 2017

Mondi at a glance

IN TOUCH EVERY DAY

Our products touch millions

of lives, every day.

International

packaging and paper

group, employing

around 25,000 people.

Over 100

operations

across more than

30 countries.

Primary listing on

the JSE Limited for

Mondi Limited.

Premium listing on the

London Stock

Exchange for Mondi plc.

https://youtu.be/YHodQ4NZmGM

https://youtu.be/cIzOcUNtbtM

https://youtu.be/cIzOcUNtbtM

https://youtu.be/YHodQ4NZmGM


International.

Every day.

We act locally.

At around 100 sites.

Worldwide.

Our Group consists of 4 business units which produce over 100 products

customised into more than 100,000 solutions.

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

South Africa.


Mondi Group

Containerboard

Packaging Paper

Sack Kraft Paper

Speciality Kraft

Paper

Fibre Packaging

Corrugated

Packaging

Industrial Bags

Extrusion Coatings

Consumer

Packaging

Uncoated Fine

Paper

Personal Care

Components

Consumer Goods

Packaging

Technical Films

Release Liner

* As of 1 October 2017

*

Mondi network

Mondi operates locally with more than 100 operations across more than

30 countries.


Europe North America

Asia

Europe

Africa


Our history – key developments

1967: Founding of Mondi

Completion of a €770 million investment for major

strategic capital projects

New lightweight recycled containerboard machine

and corrugated box plant, Świecie, Poland

Over 90% ownership Syktyvkar mill, Russia

Majority ownership Świecie mill, Poland

1881

Founding of Frantschach pulp and paper mill, Austria

Acquisition of Pine Bluff kraft paper mill and

9 industrial bags plants, USA

Syktyvkar mill extension and modernisation, Russia

Demerger of Mondi Packaging South Africa

Demerger of the Mondi Group from Anglo American plc

Acquisition of majority stake in Tire Kutsan, Turkey

Acquisitions:

Majority Frantschach mill, Austria

50% Ružomberok UFP and pulp mill, Slovakia

Kraft paper, industrial bags and extrusion coatings

businesses of AssiDomän

1793

Founding of the Neusiedler paper mill, Austria

2013–2016

2012

2009

2002

1997

2014

2010–2011

2007

2000

Acquisitions:

Ascania (nonwoven hygiene components), Germany

KSP (consumer goods packaging), South Korea and

Thailand

2015

Acquisitions:

Uralplastic, Russia, and Kalenobel, Turkey (flexible

consumer packaging)

SIMET, Poland, and Lebedyan, Russia

(corrugated packaging)

Approval of €310 million kraft top white containerboard

machine, Ružomberok, Slovakia

2016

Acquisition of Excelsior Technologies, UK

Approval of €470 million Štětí mill modernisation and

expansion, Czech Republic

2017

Acquisitions:

Nordenia (consumer packaging), Europe and USA

Duropack operations, Germany and Czech Republic

Świecie minorities, Poland

The Mondi Way


Purpose

Strategy

Operating Framework

Culture & Values

We delight you with innovative and sustainable

packaging and paper solutions. Every day.

To deliver sustainable value by providing high-quality

packaging and paper solutions through:

● Driving performance

● Investing in our high-quality, low-cost assets

● Innovating through customer partnerships

● Growing responsibly and inspiring our people

The Mondi Diamond

● Operational Excellence

● Successful Customers

● Sustainable Development

● Cutting-edge

Solutions

● Inspired People

We are dynamic, entrepreneurial and empowered

● Passion for performance

We are respectful and responsible

● Caring

We encourage honesty and transparency

● Acting with integrity


The Mondi Diamond

● Target zero harm through an

uncompromising commitment to

safety and promote a healthy work

environment

● Manage our resources responsibly,

reduce environmental impacts,

and enhance social value

Sustainable Development

● Listen to our customers and work

in partnership to create innovative,

high-quality and sustainable solutions

● Collaborative across our businesses,

leveraging our global network and

expertise to create value for our

customers

Cutting-edge Solutions

● Continuously improve our processes

to optimise costs, productivity,

efficiency and margins

● Deliver on quality and service

expectations

Operational Excellence

● Understanding market and customer

needs to develop long-term

partnerships

● Offer exceptional value with products

and services that our customers

recognise as top quality

Successful Customers

● Embrace diversity and employee

integration, valuing our differences

and respecting each other

● Create a collaborative, inspiring work

environment and enable our people

by offering a wide range of learning

experiences

Inspired People


Performance driven.

Every day.

We’re passionate about

performance.

It’s in our DNA.

In 2016, Mondi had revenues of €6.7 billion and a ROCE of 20.3%. 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 – 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.

Mondi Group HY 1/2017 HY 1/2016 2016

Revenue €3,582m €3,312m €6,662m

Underlying EBITDA1 €710m €714m €1,366m

Underlying operating profit1 €497m €529m €981m

ROCE2 18.7% 21.2% 20.3%


Mondi Group – key figures

1 South Africa is currently a separately reported segment, but will be merged partly with Packaging Paper and partly with Uncoated Fine Paper from 1 October 2017.

Mondi Group HY 1/2017 HY 1/2016 2016

Revenue

Packaging Paper €1,113m €1,045m €2,056m

Fibre Packaging €1,031m €968m €1,929m

Consumer Packaging €839m €765m €1,562m

Uncoated Fine Paper €679m €625m €1,246m

South Africa1 €337m €290m €594m

Underlying operating profit2

Packaging Paper €207m €192m €361m

Fibre Packaging €60m €59m €123m

Consumer Packaging €63m €64m €121m

Uncoated Fine Paper €135m €133m €264m

South Africa €55m €98m €147m

2 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.


Production statistics 2016

Containerboard

2,253 k tonnes

Kraft paper

1,204 k tonnes

Uncoated fine paper

1,666 k tonnes

Market pulp

547 k tonnes

Newsprint

313 k tonnes

Corrugated board and boxes

1,448 million m2

Industrial bags

4,881 million units

Extrusion coatings

1,249 million m2

Consumer packaging

7,156 million m2

Total market pulp and paper = 5,983 k tonnes

1 Europe including Russia and Turkey2 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,

Alexander Watson Associates and management estimates.

13

A top player in our markets

We develop and maintain leading positions* in our core packaging and

uncoated fine paper markets.

Euro

pe

1 #2Virgin

container-

board

#1Kraft

paper

#1Industrial

bags

#2Extrusion

coatings

#1Commercial

release

liner

#1Uncoated

fine paper

#1Office

paper

#3Consumer

goods

packaging

Em

erg

ing E

uro

pe

2

#1Container-

board

#3Corrugated

packaging

#1Industrial

bags

Nort

h A

merica

South

Afr

ica

#1White-top

kraftliner

#1Uncoated

fine paper

#1Hardwood

pulp

Group presentation August 2017


Value chain

Forest

Forest

Resins

Pulp mill

Paper for

recycling

Pulp mill

Pulp mill

Pulp

Pulp

Pulp

Nonwoven plant

Paper mill

Film extrusion plant

Paper mill

Paper mill

Films

Recycled and virgin

containerboard

Uncoated fine paper

Sack kraft paper and

speciality kraft paper

Box plant

Finishing

Converting plant

Converting plant

Corrugated

packaging

Office and

professional

printing paper

Industrial bags

Barrier coatings

Release liners

Flexible packaging,

bags & pouches

Nonwovens

Technical films

Personal care

components


Packaging and paper.

Every day.

We create brilliant packaging

and paper solutions that help

our customers succeed.

And help their customers live

their lives.

Quality, partnership and experience at your service. Every day.

● Leading international player in virgin and recycled containerboard

● Unique technical customer service offers

● Enhanced options in the lightweight kraftliner portfolio in the

light of changing customer needs

● Pioneer in the kraft top liner market and one of the world’s

leading suppliers of white top kraftliner

● Driving cutting-edge technology to offer products that

meet changing customer expectations: printability, strength

and moisture resistance


Containerboard

Appearance Semi ChemKraft 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

● Reliable, fast and global sack kraft paper supplier


Sack kraft paper

Cement & building

materials

FoodChemicals Other industries

5 mills

7 sales offices

2 R&D centres

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

● Broad speciality kraft paper portfolio designed for special

needs and customised applications: brown, white and brown

recycled grades

● Virgin fibre sourced in accordance with international forestry

certification schemes

● Experts in translating customer requirements into tailored

packaging solutions

● With our R&D centres we offer a unique technological

knowledge hub


Speciality kraft paper

Bags and

shoppers

Release baseCoating and

laminates

4 mills

7 sales offices

2 R&D centres

● We are a leading supplier of corrugated packaging in Europe,

with strong focus on central and south-east Europe

● Full range of standard and tailor-made corrugated packaging

solutions for a variety of industries, including the food, consumer

goods, e-commerce and automotive sectors

● Network of product innovation managers, R&D-dedicated

infrastructure and optimisation tools

Creating high-performance corrugated solutions for

your needs


Corrugated packaging

16 plants

4 sales offices

Barrier optionIndustrialE-retailRetail

Your competent and reliable partner for industrial bags

● A trusted leader with operations in 29 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

42 plants

7 sales offices

1 R&D centre

Protector

bags

Self-standing

open mouth bags

Pasted

valve bags

Pasted/sewn

open mouth bags

Pinch bottom

bags

● 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

We protect against wind, water, fire and earth


Barrier coatings

5 plants

AutomotiveSpecialitiesConsumer

goods

Foam papers Transport

packaging

● Our high-quality product range includes premade bags, versatile

stand-up pouches and high-performance barrier materials (any

combination of film and paper)

● The majority of production sites are BRC/IoP- and

ISO 9001:2008-certified, ensuring highest quality and hygiene

standards

Attractive and convenient packaging for the consumer

industry


19 plants

4 sales offices

1 R&D centre

Customised

reel stock

PACK

Premade bags

BAG POUCH

Premade

stand-up pouches

SLEEVES, TUBES & LIDS

Ice cream and

confectionary packaging

Flexible packaging, bags and pouches

● Leading supplier of innovative diaper components and

siliconised films and papers for the hygiene industry

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

● Various laminates for diaper closure applications and adult

incontinence products

● Elastic films used in waistband and side panel applications

● Siliconised, multicolour printed films used in femcare

applications

Hygiene components and film solutions for individual needs


Personal care components

Elastic materials NonwovensFrontal tapes Siliconised wrapper

films

4 plants

1 R&D centre

● 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, envelopes, 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

In touch with your self-adhesive products


Release liners

9 plants

1 logistics office

1 sales office

1 R&D centreMedical

liners

TapesGraphic

arts

Fibre

composites

Hygiene

● Specialists in blown and cast film extrusion

● Advanced high-barrier films meeting the needs of the food

industry

● Trusted partner for international label stock producers

● Full-range supplier of laminating films and specialised in

automotive, technical and industrial applications

● Customised product solutions for our customers and markets

Flexible building blocks for your products


Technical films

5 plants

2 sales offices

1 R&D centre

Converter (barrier)

filmsLabel filmsTechnical

specialities

Consumer

barrier films

● 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

Leading office and printing paper producer in Europe

and South Africa


Office paper

5 mills

13 sales offices

1 R&D centre

Color Copy IQ color/

MAESTRO® color

BIO TOP 3® /

NAUTILUS®

Snegurochka Rotatrim

● 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

One-stop paper manufacturer for graphic printing needs


Professional printing paper

5 mills

13 sales offices

1 R&D centre

BIO TOP 3®Color Copy NEUJET®PERGRAPHICA®


Customer focused.

Every day.

We’re reliable.

Every day we keep the

promises we make.


Full-range supplier

Agriculture Automotive Building and

construction

Chemicals and

dangerous goods

Graphic and

photographic

Home and

personal care

Durable

consumer goods

Food and

beverages


Full-range supplier

Retail and

e-commerce

Professional

printing

Pet carePaper and

packaging

converting

Office paper

Shipping and

transport

Medical and

pharmaceutical

Visit mondigroup.com/portfolio to explore solutions for your industry.

https://www.mondigroup.com/portfolio/


Innovative.

Every day.

We’re innovators, creators,

pioneers – listeners. We love

to find smarter ways to help

our customers do it better.

Research and Development

Developing creative and sustainable solutions for your success.


Print Competence Centre

Produces the very best possible print quality

with optimised ink consumption for a variety of

our sack kraft paper, speciality kraft paper and

containerboard grades

Consumer Packaging R&D Centre

Develops innovative flexible film

solutions with state-of-the-art

equipment in analytics and pilot plant,

taking into account the latest

developments in raw materials and

processing and conversion

technologies

Uncoated Fine Paper

Development Centre

Develops and improves office and

professional printing papers with

excellent offset and digital print

results

Packaging Paper

R&D Innovation Centre

Develops containerboard, speciality and

sack kraft paper products and optimises

processes

Food Safety Laboratory

Develops smart and customised packaging

solutions optimised for food contact and

supports our customers in meeting increasingly

stringent regulatory requirements

Bag Application Centre

Researches and tests our packaging solutions in

our customers’ own processes to ensure we fulfil

customer requirements for industrial bags


Cutting-edge products

Advantage Print

grades*PERGRAPHICA® iFoodbag® pak-(k)it®

With its look and

feel PERGRAPHICA®

reflects emotions that

bring your story to life.

Experience its

distinctive shades and

surfaces and you will

realise: with

PERGRAPHICA®

anything is possible,

even perfection.

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.

Advantage Kraft White Print and

Advantage Semi Extensible White Print

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.

*


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!

It’s a place where careers and opportunities can flourish.

That’s why we say:


An inspiring place to work

“Unfold your and our true potential.”

https://www.youtube.com/watch?v=1ei6NXWg_YY

The Mondi Academy offers 40 courses covering Mondi technologies,

business tools as well as personal and leadership skills.


The Mondi Academy

Technical

Excellence

Business

ExcellencePersonal

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.

38August 2017

Our sustainability performance in 2016

Refreshedand launchedSustainableDevelopmentPolicies

Rolled outour GrowingResponsiblymodel

25thanniversary of WWF-MondiWetlands Programme

Achieved CDP‘Leadership A’ Listfor Climate, Forestand Supply Chain

LaunchedWWF Boreal Forest Platform inRussia together with WWF 9%

reduction in specificCO2e since 2014

5%reduction in specificCOD emissions since 2015

11%reduction in specificwaste to landfill since 2015

67%of wood and

81%of external pulp procured

FSC

or PEFCTM

certified

790,000training hours for employees

Zerofatalities1 and life-alteringinjuries, and 0.66 TRCR

1 Regrettably in February 2017 we suffered a fatality in our South African forestry operations.

€7.9minvested in community projects

Group presentation


Sustainability

A skilled and

committed

workforce

●Engage with

our people to

create a better

workplace

Fairness and

diversity in the

workplace

●Promote

fair working

conditions in

the workplace

Sustainable fibre

●Maintain 100% FSC

certification of owned

and leased forestry

operations and

promote sustainable

forest management

●Procure a minimum

of 70% of wood from

FSC or PEFC CoC-

certified sources

Climate change

●By 2030, reduce

specific CO2e

emissions by 15%

Launched in 2015, our new Growing Responsibly model is one of our Group’s strategic value drivers. While growing

responsibly has long been our philosophy, the model will continue to maintain a focus on our 16 clearly defined

commitments up to 2020 and beyond across 10 actions areas.

Employee and

contractor safety

●Avoid work-related

employee and

contractor fatalities

●Prevent life-altering

injuries

●Reduce TRCR

by 5%


Sustainability

Solutions that

create value for

our customers

●Encourage

sustainable,

responsibly

produced

products

Constrained resources

and environmental

impacts

●Reduce specific

contact water

consumption (5%)

●Reduce specific waste

to landfill (7.5%)

●Reduce specific NOx

emissions (7.5%)

●Reduce specific

effluent load (chemical

oxygen demand,

COD) (5%)

Visit mondigroup.com/sustainability to see more

examples of our commitments to sustainability.

Supplier conduct

and responsible

procurement

●Encourage supply

chain transparency

and promote fair

working conditions

together with key

suppliers

Relationships with

communities

●Enhance social

value to our

communities

through effective

stakeholder

engagement and

meaningful social

investments

Biodiversity

and ecosystems

●Promote

ecosystem

stewardship in the

landscapes where

we operate

through continued

multi-stakeholder

collaboration

https://www.mondigroup.com/en/sustainability/

Visit our website and follow us on social media for the latest news, industry trends,

events and more.


Let’s stay in touch

youtube.com/MondiCom linkedin.com/company/mondi-group facebook.com/Mondigroup

www.mondigroup.com

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

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

https://www.facebook.com/mondigroup

http://www.youtube.com/MondiCom

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

http://www.facebook.com/Mondigroup

http://www.mondigroup.com/

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.
