Mondi E&I company presentation October 2014

Europe & International Presentation Status: October 2014

IN TOUCH EVERY DAY

Our products touch the lives of millions, every day.

October 2014 Europe & International Presentation Page 1

http://youtu.be/04a_YkJ0Ss4





International. Every day.

We act locally. At more than 100 sites. Worldwide.

Mondi Group

We are an international packaging and paper Group, employing 26,000 people in production facilities across 31 countries. Our key operations are located in central Europe, Russia, the Americas and South Africa.

October 2014 Europe & International Presentation

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

Page 3

Mondi Group – Key figures

In 2013, Mondi had revenues of €6.5 billion and a ROCE of 15.3%. The Group is listed on both the London Stock Exchange (LSE) and Johannesburg Stock Exchange (JSE).


1The 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.

HY 1/2014 HY 1/2013 2013

Revenue €3,148m €3,342m €6,476m

Underlying EBITDA1 €553m €554m €1,068m

Underlying operating profit1 €377m €366m €699m

ROCE2 16.0% 14.8% 15.3%

Mondi Group

* Under construction

Mondi Group – Network

Mondi operates locally with more than 100 operations across 31 countries.


*

Our history


1967 Founding 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 • 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, in the US

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. Purpose

● Passion for performance ● Caring ● Acting with integrity

Values

● Operational excellence ● People development ● Sustainable development

● Cutting edge products ● Customer focus

The Mondi Way


● Dynamic ● Respectful ● Responsible

● Entrepreneurial ● Empowered ● Transparent

Strategy

The Mondi Diamond

Culture

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

Strategy

The Mondi Diamond


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 leading, high-quality products and brands

● Leveraging expertise and creating tailor-made solutions

We focus on ●Maximising equipment and

process efficiencies ●Delivering on quality and

productivity ● Improve cost

competitiveness

We focus on ●Achieving zero harm and

providing a healthy work environment

●Minimising environmental impacts and engaging in sustainable forestry

●Putting social responsibility into practice

We focus on ●Understanding market and

customer needs ●Flawless service and on-

time delivery ●Sustainable partnerships

and measurable success

We focus on ● Inspiring and developing

people ●Promoting excellence in

leadership ●Shaping our culture and

embracing diversity

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.


Packaging Paper Fibre Packaging Consumer Packaging

Advanced Materials

Consumer Goods Packaging

Containerboard Corrugated Packaging

Industrial Bags

Uncoated Fine Paper

Extrusion Coatings

Sack Kraft Paper

Speciality Kraft Paper

Page 10

Mondi Europe & International – Key figures

Today packaging represents more than two-thirds of our product mix.


Mondi E&I

External revenue €2,913m €3,073m €5,953m

Packaging Paper €982m €1,043m €2,000m

Fibre Packaging €1,003m €1,002m €1,967m

Consumer Packaging €550m €582m €1,153m

Uncoated Fine Paper €674m €740m €1,388m

Underlying operating profit1 €333m €337m €637m

Packaging Paper €162m €148m €298m

Fibre Packaging €53m €48m €93m

Consumer Packaging €34m €39m €74m

Uncoated Fine Paper €85m €102m €172m

Mondi Europe & International

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.

HY 1/2013 2013 HY 1/2014

Production statistics 2013


Total pulp and paper = 4,960 ktonnes

Containerboard 2,139 ktonnes

Kraft paper 1,011 ktonnes

Uncoated fine paper 1,381 ktonnes

Market pulp 222 ktonnes

Newsprint 207 ktonnes

Corrugated board and boxes 1,344 million m2

Industrial bags 3,997 million units

Coating and release liners 3,348 million m2

Consumer packaging 283 ktonnes

Page 12

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 #2 Virgin

container- board1

Kraft paper2

Industrial bags3

Release liner4

Extrusion coatings5

Uncoated fine

paper6

Office paper6

Container- board1

Corrugated packaging7

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 estimates 2 Based on capacity. Source: Pöyry World of Paper Market 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 estimates 4 Based on sales volume. Source: AWA Global Release Liner Market Study 2014 and management estimates 5 Based on sales. Source: AWA Extrusion Coated Materials European Market Study Draft version 2012 and management estimates 6 Based on sales volume, llim JV considered separate from IP. Source: EMGE World Graphic Report 2013, Eurograph delivery statistics 2013, Pyrabelisk and management estimates

7 Based on sales volume. Source: Henry Poole Consulting 2014 (data for 2013) and management estimates

Page 13

Integrated value chain


Paper mill Uncoated fine paper Finishing

Office and professional printing paper

Forest Pulp mill Pulp

Paper mill

Forest Pulp mill Pulp

Recycled and virgin containerboard

Box plant

Corrugated packaging

Paper for recycling

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


Packaging and paper. Every day.

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


An international player in virgin and recycled containerboard ● Major European supplier of virgin and recycled containerboard

● High-speed lightweight recycled containerboard machine ECO7, located in central Europe at Swiecie 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


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 ● 11 sales offices ● 2 representative offices ● 3 R&D centres

Sack kraft paper


Cement & Building Chemicals Food Other industries

● 5 mills ● 1 converting terminal ● 11 sales offices ● 2 representative offices ● 3 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


Bags & Shoppers

Coating & Laminates

Release base & Medical

Hygiene Release 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 security High-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


Foam papers Foam facers Consumer

packaging solutions Transport packaging

Hygiene components and film solutions for individual needs ● 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

Advanced materials: films and hygiene components


Surface protection films

Converter (barrier) films

Hygiene components

Label films

● 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 ● Hygiene release liners, mainly for the femcare and light adult

incontinence markets, typified by excellent formation and low porosity*

● 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

● 11 plants

● 1 converting terminal

● 1 mill

● 1 R&D centre



Graphic arts Labels Tapes Fibre composites Hygiene

release liner *served by the Speciality Kraft Paper business segment

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 (retort) stand-up pouches, reclosable plastic bags and paper-based bags

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

Consumer goods packaging


Printed laminates and films

Paper-based bags

(Retort) stand-up pouches

Reclosable plastic 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


NAUTILUS® IQ color/

MAESTRO® color Color Copy IQ/MAESTRO®

One-stop paper manufacturer for graphic printing needs ● 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 YBBS®

premium board Color Copy DNS®

● 4 mills


Professional printing paper


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

Paper & Packaging Converting



Medical & Pharmaceutical

Automotive

Pet Care

Chemicals & Dangerous Goods

Graphic & Photographic



Multiple other industries

● Bags and shoppers ● Envelopes ● Fabricated metal products ● Fibre composites ● Foam ● Furniture films ● Glassware and ceramics ● Tapes ● Tobacco and cigarettes ● Transport and pallet protection ● White and brown goods ● …

Green Range


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

ProVantage Kraftliner Aqua Terra Bag® PerfoamPack

Sustainable alternative to wax-coated paper for packaging applications in very humid, cold and hot environments.

Paper-based bag with an optional biodegradable film for better humidity protection.

Physically foamed film that reduces packaging weight without decreasing rigidity or thickness.

All our branded papers meet the following criteria:

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

Uncoated fine paper

Innovative. Every day.

We’re inventors, 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

Cutting edge products


FIBROMER® Sheekan Bag with Easy Seal valve Miprotex PerfoamPack

Revolutionary polymer reinforced with cellulose fibre as the sustainable alternative for all injection moulding applications

Award winning bag for outstanding protection and filling speed

Efficient and safe barrier solution that prevents the migration of mineral oil

A physically foamed film that is lighter but maintains rigidity and thickness

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=TIuNovIZ-VQ




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

● Presentation techniques

● Negotiation skills

● Conflict management

● Management techniques

● Leadership styles

● Motivation ● Delegation ● Target setting

● Sales ● Procurement ● Shift leaders ● Finance

managers ● Many more

Page 37

Sustainable. Every day.

When we think about today, we never forget tomorrow.


Our key sustainability focus areas


Forestry Climate 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


Communities Employees 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.

Keep in touch

with Mondi on our website www.mondigroup.com …


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

… or on Facebook www.facebook/Mondigroup, LinkedIn www.linkedin.com/company/mondi-group and www.youtube.com/MondiCom


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 October 2014

Business

international packaging

paper group

neusiedler paper

acquisition of wiecie

frantschach acquisition

founding of mondi

mondi group key figures

central europe