Mondi E&I company presentation October 2016

Europe & International

Presentation

Status: October 2016

IN TOUCH EVERY DAY

Our products touch the lives of

millions, every day.

October 2016 2Europe & International presentation

https://www.youtube.com/watch?v=YHodQ4NZmGM&list=PLLTVVPElXUIZOy6SMcZI3DCHZJw9K5JRz&index=1

https://www.youtube.com/watch?v=jRJWnev7q4w&list=PLLTVVPElXUIZOy6SMcZI3DCHZJw9K5JRz&index=31

International.

Every day.

We act locally.

At around 100 sites.

Worldwide.

Europe & International presentation 3October 2016

We are an international packaging and paper Group, employing around 25,000 people across

more than 30 countries.

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


Mondi Group

Containerboard

Packaging Paper

Europe & International

DivisionSouth Africa Division

Sack Kraft Paper

Speciality Kraft Paper

Fibre Packaging

Corrugated Packaging

Industrial Bags

Extrusion Coatings

Consumer Packaging

Advanced Materials

Consumer Goods

Packaging

Uncoated Fine Paper

Pulp

Uncoated Fine Paper

Containerboard

In 2015, Mondi had revenues of €6.8 billion and a ROCE of 20.5%. 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 HY 1/2016 HY 1/2015 2015

Revenue €3,312m €3,459m €6,819m

Underlying EBITDA1 €714m €671m €1,325m

Underlying operating profit1 €529m €490m €957m

ROCE2 21.2% 19.0% 20.5%


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.

Africa

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

6

Mondi Group – Network

Europe Asia

North America

Europe & International presentation October 2016


Our history

1967 Founding of Mondi

Over €500 million allocated to major strategic

capital projects

Acquisition of NORDENIA INTERNATIONAL AG

Acquisition of Duropack operations in Germany and Czech

Republic

Start of new lightweight recycled containerboard machine

ECO7 and corrugated box plant in Świecie, Poland

Increased ownership of the Syktyvkar mill, Russia,

to over 90%

Acquisition of Świecie, one of Poland’s largest paper mills

1881

Founding of the pulp and paper mill Frantschach, Austria

Acquisition of the industrial bags and kraft paper business of

Graphic Packaging International, USA

Acquisition of the Western European industrial and consumer

bags businesses of Smurfit Kappa

Completion of the extension and modernisation of Syktyvkar,

Russia

Demerger of the Mondi Group from Anglo American plc

Acquisition of majority stake in Tire Kutsan, Turkey

Acquisition of majority of Frantschach and Acquisition of 50% of

the Ružomberok UFP and 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

1793

Founding of the Neusiedler paper mill, Austria

2013–2016

2012

2009

2002

1997

2014

2010

2007

2000


The Mondi Way

To create solutions for our customers’ success,

delivering exceptional value in a sustainable way. Purpose

Our clear strategic focus is on growth in packaging● We invest in our high-quality, low-cost assets

● We are passionate about performance

● We work with our customers to find innovative solutions

● Operational Excellence

● People Development

● Sustainable Development

● Cutting Edge Products

● Customer Focus

● Dynamic

● Respectful

● Responsible

● Entrepreneurial

● Empowered

● Transparent

● Passion for performance

● Caring

● Acting with integrity

Strategy

The Mondi Diamond

Culture

Values


The Mondi Diamond

Operational Excellence

Focus on

●Maximising equipment and process

efficiencies

●Delivering on quality and productivity

expectations

● Improving cost competitiveness

Customer Focus

Focus on

●Understanding market and

customer needs

●Striving for flawless service and

on-time delivery

●Facilitating sustainable partnerships

and measuring success

Cutting Edge Products Sustainable Development

Focus on

● Listening to our customers to deliver

exceptional value

● Creating competitive advantages with

high-quality products and brands

● Leveraging our global expertise to

create tailor-made solutions

Focus on

● Achieving Zero Harm and providing

a healthy work environment

● Practicing sustainable forestry

● Increasing resource efficiency and

minimising environmental impacts

● Putting social responsibility into

practice

People Development

Focus on

●Shaping our culture and embracing

diversity and mobility

● Inspiring and developing our people

●Promoting excellence in leadership


Performance driven.

Every day.

We’re passionate about

performance.

It’s in our DNA.

The Europe & International Division (E&I), with its corporate office in Vienna, Austria, consists of the 4 business

units: Packaging Paper, Fibre Packaging, Consumer Packaging and Uncoated Fine Paper.


Mondi Europe & International

Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper

Containerboard Corrugated Packaging Advanced Materials

Sack Kraft Paper

Speciality Kraft Paper

Industrial BagsConsumer Goods

Packaging

Extrusion Coatings

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

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.


Mondi Europe & International – Key figures

Mondi Europe & International HY 1/2016 HY 1/2015 2015

Revenue

Packaging Paper €1,045m €1,122m €2,156m

Fibre Packaging €968m €1,046m €2,031m

Consumer Packaging €765m €730m €1,469m

Uncoated Fine Paper €625m €626m €1,233m

Underlying operating profit1

Packaging Paper €192m €211m €391m

Fibre Packaging €59m €68m €120m

Consumer Packaging €64m €49m €108m

Uncoated Fine Paper €133m €113m €212m


Production statistics 2015

Containerboard

2,138 k tonnes

Kraft paper

1,162 k tonnes

Uncoated fine paper

1,379 k tonnes

Market pulp

256 k tonnes

Newsprint

197 k tonnes

Corrugated board and boxes

1,350 million m2

Industrial bags

4,925 million units

Extrusion coatings

1,389 million m2

Consumer packaging

6,594 million m2

Total pulp and paper = 5,132 k tonnes

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


A top player in Europe

Europe1 Emerging Europe2

1 Europe including Russia and Turkey

2 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 and Alexander Watson Associates.

North America

#2Virgin

container-

board

#1Kraft

paper

#1Industrial

bags

#2Extrusion

coatings

#1Commercial

release

liner

#3Consumer

goods

packaging

#1Uncoated

fine paper

#1Office

paper

#1Container-

board

#3Corrugated

packaging

#1Industrial

bags

15

Value chain

Forest Pulp mill Pulp

Paper

for recycling

Paper mill Recycled and virgin

containerboard

Box plant

Corrugated

packaging

Forest Pulp mill Pulp Paper mill Uncoated fine paper Finishing

Office and professional

printing paper

Pulp mill Pulp Paper mill Sack kraft paper and

speciality kraft paper

Converting plant

Industrial bags

Extrusion coatings

Resins

Nonwoven plant

Film extrusion plant

Nonwovens

Films

Advanced materials:

films and hygiene components

Advanced materials:

release liner

Consumer goods

packagingConverting plant

Europe & International presentation October 2016


Packaging and paper.

Every day.

We create brilliant packaging

and paper solutions that help

our customers succeed.

And help their customers live

their lives.

An international player in virgin and recycled containerboard

● Major European supplier of virgin and recycled containerboard

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

Europe at the Świecie mill in Poland

● White top kraftliner quality that meets increased customer expectations

● Green Containerboard promotes environmentally preferable purchasing and

supports our customers in going green


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


Sack kraft paper

FoodChemicals Other industries

5 mills

7 sales offices

2 R&D centres

Cement & building

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


Speciality kraft paper

Bags and shoppers Release baseCoating and laminates

4 mills

7 sales offices

2 R&D centres

Creating high-performance corrugated solutions for your needs

● 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


Corrugated packaging

15 plants

4 sales offices

Heavy-duty

packaging

Fruit and vegetable

trays

Shelf-ready

packaging

E-commerce

solutions

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

High-speed filling Product security Easy handlingFood safety

42 plants

7 sales offices

1 R&D centre

We protect against wind, water, fire and earth

● 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


Extrusion coatings

Foam

papersFoam facersConsumer

barrier solutions

Transport

packaging

5 plants

Hygiene components and film solutions for individual needs

● Specialist in blown and cast film extrusion with in-depth knowledge of film-based

solutions

● Leading supplier of innovative diaper components and siliconised films and papers

for the hygiene industry

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

● Trusted partner for international label stock producers

● Full range supplier of laminating films and specialist in automotive, technical and

industrial applications


Advanced materials: films and hygiene components

5 plants

1 R&D centre

Hygiene components

and nonwovens

Converter

(barrier) films

Label

films

Surface

protection films

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, 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


Advanced materials: release liner

9 plants

1 logistics office

1 sales office

1 R&D centreGraphic arts Fibre compositesTapes Labels

Attractive and convenient packaging for the consumer industry

● High-quality laminates and barrier materials are converted into a broad range of

flexible packaging solutions, such as (retortable) stand-up pouches and reclosable

plastic-based bags with diverse add-on features and special packaging for

ice cream and confectionery

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

highest quality and hygiene standards


Consumer goods packaging

17 plants

4 sales offices

1 R&D centre

Premade and versatile

stand-up pouches and bags

Customised

reel stock

PACK BAG POUCH SLEEVES, TUBES & LIDS

Special packaging for

ice cream/confectionery

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 = a symbol for sustainably produced papers for office users


Office paper

Color CopyIQ color/

MAESTRO® color

IQ/MAESTRO®

4 mills

13 sales offices

1 R&D centre

NAUTILUS®

One-stop paper manufacturer for graphic printing needs

● 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


Professional printing paper

ConvertingNEUJET®Color Copy DNS® Design papers

4 mills

13 sales offices

1 R&D centre


Customer focused.

Every day.

We’re reliable.

Every day we keep the

promises we make.


Expertise across markets

Medical &

pharmaceutical

Paper &

packaging

converting

Office &

professional

printing paper

Home &

personal care

Building &

construction

Food &

beverages


Expertise across markets

Multiple other

industries

Farming &

agriculture

Graphic &

photographic

Chemicals &

dangerous

goods

Pet careAutomotive

Packaging and paper solutions that are:

● optimised to save natural resources and reduce waste,

● certified for their sustainability by internationally recognised bodies.


Green Range

Modulo ONE and ONEPlus ProVantage KraftTop Liner BIO TOP 3®

A modular packaging

system with three

separate components

and a smaller unit

surface than standard

packaging.

A resource-effective

packaging solution.

Lower weight means

less packaging weight and

a corresponding reduction

in waste and costs.

A twin-ply containerboard

with excellent strength values

and brilliant printability used

for corrugated board

production.

This off-white shade

paper is produced

totally chlorine-free and

offers a stylish and

sustainable look with all

printing technologies.

Innovative.

Every day.

We’re innovators, creators,

pioneers – listeners. We love

to find smarter ways to help

our customers do it better.



Research & Development

Designing smart, customised

solutions for packaging food, helping

customers meet increasingly stringent

regulations.

Food Safety Laboratory

Specialising in developing high-

performance kraft papers with

excellent technical properties and

printability to meet the highest

ecological standards.

R&D Innovation Centre

Applying our industrial techniques and

processes to meet our customers‘

challenges.

Bag Application Centre

Developing innovative and flexible

film solutions with state-of-the-art

analytical and pilot-line equipment.

Consumer Packaging R&D Centre

Focusing on cutting edge products

with flawless runnability and

outstanding print quality in office and

professional printing environments.

UFP Product & Process Development Centre

Conducting numerous tests and trials

to produce the best possible print

quality from a variety of inks, paper

and containerboard grades.

Print Competence Centre


Cutting edge products

Advantage Print

grades*SquareBag iFoodbag pak-(k)it®

.

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.

*Advantage Kraft White Print and

Advantage Semi Extensible White Print

Innovative, lightweight, cost

effective, flexible yet

durable – this box-shaped

solution fulfils many

customer requirements. All

six panels are available for

graphics, making this bag

ideal for individual

branding.

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.


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!


An inspiring place to work

It’s a place where careers and opportunities can flourish. That’s why we say:

“Unfold your and our true potential.”

https://www.youtube.com/watch?v=06jtT3gCyTg&feature=youtu.be

The Mondi Academy offers 40 courses covering Mondi technologies, business tools as well as personal

and leadership skills.


The Mondi Academy

Technical

Excellence

Business

Excellence

Personal

Excellence

Leadership

Excellence

Customised

programmes for

Mondi products

Processes

Technologies

Markets

● Finance

● Project management

● Business English

● Change

● Innovation

● Presentation

techniques

● Negotiation

skills

● Conflict

management

● Intercultural

diversity

● Management

techniques

● Leadership

styles

● Motivation

● Delegation

● Target setting

● Sales

● Procurement

● Shift leaders

● Finance managers

● Customer service

● Many more


Sustainable.

Every day.

When we think about today,

we never forget tomorrow.


Our sustainability performance

Energy efficiency, self-sufficiency and

renewable energy

Our carbon emission reduction (per unit of

saleable production) reached 28% in 2015

against a 2004 basis. The share of renewable

energy in the overall fuel consumption of our

mills was 59% in 2015. Our electrical self-

sufficiency reached 103% in 2015.

Water

In 2015 we reduced our contact

water consumption by 5%

against a 2010 basis.

Forestry

All the wood that we source is

Chain-of-Custody certified either to

FSC® or PEFC™ standards (66%

in 2015) or meets our company’s

minimum requirement that

complies with the standard for

Controlled Wood

Communities

Since 2010 we have invested around

€68 million in social projects and

community initiatives globally.

€68 million66% FSC/PEFC

103% –5%


Our key sustainability performance

Climate change Water

Climate change is one of the most

pressing global challenges. Our

climate commitment focuses on

improving energy efficiency and

replacing fossil fuels with renewable

energy where feasible.

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 manage-

ment 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 assess-

ments at all our mills and forest

operations

recycling and reusing water where

possible, and treatment of our

discharged water

Forestry


Our key sustainability performance

People Communities Partnership

The people who work at Mondi are

central to our success and future

development. We rely on a skilled,

committed and diverse workforce

who work under safe and fair

conditions to move our business

forward. We invest in training and

developing our people. We regularly

engage with our people to strengthen

and improve our culture.

The future prospects of our business

lie in the health and stability of the

communities we live and work in.

We invest in community projects that

address local priorities and needs in

line with our long-term business

objectives. Key focus areas are

education, health, employment and

enterprise support as well as

infrastructure and development.

In the third year of our 3-year

partnership with WWF International,

we continue to work together to

increase environmental stewardship

in the packaging and paper sectors.

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


Get in touch with Mondi!

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

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

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

https://www.facebook.com/mondigroup

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.


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