28 november, 2007 ružomberok, slovakia...sources: emge woodfree forecast report; october 2007 for...

MONDI INVESTOR AND ANALYST PRESENTATION

28 November, 2007 Ružomberok, Slovakia

Agenda

Overview Adrian Fowler

Strategic drivers Adrian Fowler

Market overview Michael Sablatnig

Productive capability Michael Sablatnig

Summary Michael Sablatnig

Wood dynamics Rinat Starkov

Step project Rinat Starkov

OVERVIEW

UNCOATED FINE PAPER HISTORY

1995

2007

Pre 1995Mondi

companies in Austria and

South Africa

1995 96 97 98 99 2000 01 02 03 04 05 06 07

2006Disposal of

Dunaújváros / Hungary

1995Acquisition of Szolnok / Hungary

1997Acquisition of Dunaújváros / Hungary

2000

Acquisition of Ružomberok / Slovakia

1999Acquisition of Hadera Paper / Israel

2002Acquisition of Syktyvkar / Russia

UNCOATED FINE PAPER – OVERVIEW

Total paper production capacity 2.3 m tons15 PMs at 7 sites in 6 countries

Total pulp production capacity 1.9 m tons 4 sites in 4 countries

Number of employees YE 2006 14,077

Turnover 2006 € 1,889 M

EBITDA & Margin 2006 € 237 M / 13%

Turnover HY 2007 € 966 M

EBITDA & Margin HY 2007 € 149 M / 15%

PRODUCTS AND MARKET POSITIONS

1 Based on production capacity (Pöyry Forest Industry Consulting)Sources: Pöyry Forest Industry Consulting, Mondi

No. 2 in Uncoated Woodfree (UCWF) in Europe1

No. 1 in Office Paper in Europe & Africa1

No. 1 in UCWF in Africa1

Universal Segment

~ 82% of paper salesUniversal products

Office Paper – Multifunctional office paperOffset– Folio/reel

Speciality Segment

~ 18% of paper salesSpeciality products

Office Paper– Colour laser paper– Tinted paper– Recycled paperOffset– Recycled folio/reel

Products Positions

TOTAL PRODUCTION CAPACITIES (per mill)

Paper Pulp

Total production: 2.3 m tons Total production: 1.9 m tons

16.7%

22.4% 24.4%

Israel(PM7)Hungary

(PM8)

Austria(PM3, PM4PM5, PM6)

5.8%5.4%

Slovakia(PM16, PM17,

PM18)

South Africa(PM31, PM32,PM33)

Russia(PM11, PM14, PM15)

25.3% 22.5%

38.5%

36.4%Russia

South Africa

Slovakia

2.6%Austria

EXPERIENCED MANAGEMENT TEAM

CFO (from Jan 1, 2008)Gerhard Kornfeld

38 years old

1 year of paper industry experienceFD MP Paper (since 1.10.2006)CEO (6 y.) and CFO (2y.) VATECH CZ Controller (3y.) and FD (3y.) ABB

Director wood & pulp procurement, Logistics, Hungary & Israel

Rinat Starkov 38 years old

5 years of paper industry experienceMD Mondi Russia -SyktyvkarDirector Martin Bauer (AO ‘Krasnogorskleksredstva’)

Technical Director –Uncoated Fine Paper

Thomas Reibelt49 years old

22 years of paper industry experienceMill Managing Director Stora EnsoMill Manager Koehler KehlVP of Manufacturing PWA Decor Process Engineer Feldmühle

Marketing & Sales Director –Uncoated Fine Paper

Michael Sablatnig50 years old

22 years of paper industry experienceVarious positions in Marketing & Sales - MondiController ElinSales Representative Bizerba

CEO Peter Machacek

55 years old

28 years of paper and packaging experienceCEO Mondi Packaging PaperSales Director Paper Mill FrantschachSales & Marketing Manager Tetra Pak Austria

CFO (until Dec 31,2007)Adrian Fowler

39 years old

2 years of paper industry experienceCFO Anglo Coal South AfricaGroup OptimisationMgr Anglo Platinum Mgmt. Consultant (co-owner)

FINANCIAL INDICATORS

Note: ROCE for the year 2004 not available (change of accounting principles from 2003 to 2004).

1 Sales figures include inter-segment revenues.2 ROCE is an annualised measure based on operating profit before special items plus net profit from associates divided by average trading capital employed for the period.3 EBITDA is operating profit of subsidiaries and joint ventures before special items, interests, taxes, depreciation and amortisationSource: Mondi

Profitability (HY 2007)

EBITDA3

EBITDAMargin

ROCE2

Capital Employed

Sales1 (EUR B) / ROCE2 (in %)

€149M €114M +31%

15% 12% +29%

€1.9B €1.9B +1%

7,3% 5,7% +28%

7

65

6

0

1

2

3

4

5

6

7

8

1,77

2004

1,75

2005

1,89

2006

0,96

2006 HY

0,97

1,0

0,0

1,5

2,0

0,5

Sales(EUR B)

ROCE(%)

2007 HY

2007 2006

STRATEGIC DRIVERS

UNCOATED FINE PAPER STRATEGIC DRIVERS

Integrated value chainLow-cost upstream paper production in Russia, Slovakia and South Africa

Comprehensive Business Excellence programmesProven M&A/integration track record

Contributes to Mondi Group’s outperformance of peers measured by ROCE

Continued focus on performance and low-cost positionDisciplined approach to capital allocation

Leading market positions in European UCWF marketHigh exposure to fastest growing product segments and geographies

Strong asset base

Focus on performance

Outperforming its peers

Value creation

Strong market position

MARKET SHARES IN EUROPE AND EMERGINGEUROPE PER SEGMENT

Leading market position in European UCWF market


Notes: Market share is based on European 2007 capacities (Pöyry Forest Industry Consulting) and forecast of 2007 market capacity (EMGE).Sources: Pöyry World Market Analysis for Uncoated Woodfree Paper - 2007 update; EMGE Western European Woodfree Forecast Report December 2006

Top 5 Uncoated Woodfree Top 5 Office Paper

Stora Enso

M-Real

Mondi

IP

Portucel

Mondi

IP

Stora Enso

M-Real

Portucel

16%

11%

13%

10%

10%

17%

14%

16%

13%

11%

Mondi Uncoated Fine Paper generates approximately 65% of UCWF sales in faster

growing Office Paper segment

Integrated value chain

Strong asset base


BENEFITING FROM INTEGRATED VALUE CHAIN

1 Regardless of whether sold externally or used for internal demand. 2 Forestry figures are based on total annual allowable cut without firewood (theoretical capacity). 3 2.3mt including newsprint.Note: Own supply figures do not include 1.9 mm³ wood and 0.5Mt pulp that are supplied internally to other Mondi businesses, mainly to MP.Source: Mondi

Mondi’s Own Availability1

Mondi’s Own Demand

Potential Self Sufficiency

PaperPulpForestry

89%

5.4 Mm3 2)

6.0 Mm3

77%

1.4 M tons

1.8 M tons

2.1 M tons3

UCWF

Integrated value chainLow-cost upstream paper production (I)

Strong asset base


LOW-COST POSITION

1 Not totally focused on universal segment. Notes: The supply curve covers only MBP sites that are focused on universal segment.

Not included are sites that serve only domestic markets. Source: Pöyry Forest Industry Consulting

0

200

400

600

800

1.000

1.200

1.400

0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000

Universal Grades (Office Paper) Delivered Cash Cost

Mondi Paper Machines Cumulative capacity (K tons/a)

1

EUR/tons

91% of Mondi Universal Office Paper Capacity

Integrated value chainLow-cost upstream paper production (II)

Strong asset base


SUPERIOR ACCESS TO LOW-COST WOOD

Note: The numbers are based on the Pöyry Forest Industry Consulting Q2 2007 wood cost comparison. Sources: Pöyry Forest Industry Consulting

Average Hardwood and Softwood Costs (EUR/m3, Q2 2007)

~ 68% of Mondi Uncoated Fine Paper wood consumption from Russia and South Africa

Russian and South African costs are largely under our own control. Therefore, future wood costs are largely controllable

47

3030

25

3942

3733

2625

Brazil

Russia

South

Africa

Chile

Austra

liaPola

ndPort

ugal

Sweden

Finlan

dFran

ce

90%

95%

85%2006

90.3% 90.6%

2004

91.1% 91.5%

2005

91.2%

89.9%

CONTINUOUS PROFITABILITY IMPROVEMENTS (I)

Strong asset base


Leading market position

Strong asset base



ComprehensiveBusinessExcellenceprogrammes

∆ 0.4%∆ 0.6%

∆ 0.4%

Benchmark Mondi

Mondi exceeds benchmark –despite rebuilds in these years (2006 efficiency excluding PM31 rebuild project = 92.8%)

Technological challenges in emerging markets well managed

Example: Time Efficiency

Sources: Metso Benchmark Study; Mondi

PERFORMANCE IMPROVEMENTSIN ACQUIRED COMPANIES

Strong asset base



ComprehensiveBusinessExcellenceprogrammesProven M&A/ integration track record

Site acquired in 2000

Integrated operations

PM18 is world class leader in productivity3

Ruzomberok (Slovakia)

1 CAGR 2 Forestry workers included 3 Metso Benchmark on paper machine net production measured as km²/meter deckle width Note: Tons per capita based on employees year average.Source: Mondi

Syktyvkar (Russia)²

100150200250300350

2000 2001 2002 2003 2004 2005 2006

%

Volume per capita

20% p.a.¹

13% p.a.( ¹)

100

120

140

160

180

2002 2003 2004 2005 2006

%

Volume per capita Management control

acquired in 2002


INNOVATION – A WAY OF LIFE

1967

2007

67 68 69

197072 73 74 75 76 77 78 7971

198081 82 83 84 85 86 87 88 89

199091 92 93 94 95 96 97 98 99

200001 02 03 04 05 06 07

1967World's first copy paper for dry toner machines

1978World's first small-format cutter installed at MONDI

1989World's firstchlorine-free bleached copy paper BIO TOP 3

1995World's first and onlythree-layer copy paper TRIOTEC

2000World's first FSC-certified copy paper ROTA-TRIM

2005

2007World's firstnano-hybrid paper neox

World's firstbiodegradable ream packaging

World's firstFSC-certified laser copy paper COLOR COPY

Products ProcessMethodsProducts ProcessMethods

Mona Lisa 2

Mona Lisa 1

Color NanoTech

OPTONAN

Crystallinity

Nano Coated Fillers

OWL

neox offset

neox laser

HANS

Fun Fibres

NILE EMILIE

Fun Fillers

ADF

SurFunC ell

Until 2012

Until 2009

Implemented 2007

NOA/DigiQ

EMR

LaBaCuS

Nano Dust Tester

Fall Flat

Innovation Road-map for the future secures Innovation leadership in the future

MARKET OVERVIEW

UNCOATED FINE PAPER

Merchants Office Suppliers and Retailers

Original Equipment Manufacturers

Note: Mondi estimate based on sales data.Source: Mondi

~14%~78% ~8%

STRONG DISTRIBUTION NETWORK ACROSS ALL SALES CHANNELS

EUROPEAN UCWF MARKET AROUND € 9 bn –OFFICE PAPER SEGMENT EXPERIENCED GOOD GROWTH

European UCWF Market 2000–20061 European Office Paper Market 2000–20061

100%€ 9 B

Office Paper

Other UCWF(e.g. Offset)

2006

55%

45%

1 Translation of volume in t to value in EUR estimated. 2 Volume growth based on 2000-2006 demand estimates by Pöyry Forest Industry Consulting. 3 Volume growth based on 2005-2006 demand estimates by Pöyry Forest Industry Consulting.Source: Pöyry Forest Industry Consulting, Mondi

CAGR2

3%

2%

4%

100%€ 4B

West Europe

East Europe

2006

18%

82%

CAGR2

4%

7%3

2%

UCWF 2006 - 2011 demand growth (in %)1

FORECASTED EUROPEAN DEMAND AND OPERATING RATES

Sources: EMGE Woodfree Forecast Report; October 2007 for Western and Eastern Europe. World Paper markets, Pöyry 2005 Edition for CIS. CIS market growth from 2004 - 2010

9,8

6,6

1,3

WE EE CIS

West Europe 16

East Europe 14

7.8807.7057.5557.6457.4957.405

0

5.000

10.000

020406080100

2006 2007 2008 2009 2010 2011

1,3%Operating Rate (%)Demand (k tons)

Operating ratesDemand

1.1901.1101.035995915865

0500

1.0001.500

2.000

020406080100

2006 2007 2008 2009 2010 2011

6,6%Demand (k tons) Operating Rate (%)

PRODUCTIVE CAPABILITY

Uncoated Fine Paper

OVERVIEW OF MONDI UCWF PRODUCTION

1 Own wood availability include wood for pulp production attributed to Mondi Packaging and include wood for all usages (pulp/woodchips production, firewood,…).2 The Syktyvkar and Richards Bay pulp mill capacities include 185 kt and 270 kt of pulp attributed to Mondi Packaging

Non / Partly Integrated Mills Integrated Mills

30% of total UCWF capacity 70% of total UCWF capacity

Theresienthal/ Kematen(Austria)

Szolnok(Hungary)

Hadera(Israel)

Ruzomberok(Slovakia)

Syktyvkar(Russia)

Merebank/ Richards Bay(South Africa)

∑ 1 870 kt

∑ 2 102 kt(2 294 kt incl.

newsprint)

Pulp Capacity

Paper Capacity

MainProducts

• Tints• Color Laser• Recycled• A+ , B+

• B+• C+

• B+• C+• Offset

• C+• Offset

• C+• Offset

• B+• C+• Offset

49 kt

4 PMs384 kt

1 PM125 kt

1 PM132 kt

421 kt

3 PMs513 kt

680 kt2

2 PMs 388 kt1 PM 192 kt(newsptint)

720 kt2

3 PMs560 kt

Own Wood availability 3.2 mm³ 1 4.4 mm³ 1 ∑ 7.6 mm³ (1)

AUSTRIA

Mills Hausmening,Kematen

Management Board Karl Grill, Gerhard Schwiegk

Number of employees ~800 YE 2006

Paper production capacity 384,000 tons

Pulp production capacity 49,000 tons

HUNGARY

Mills Szolnok

Management Board Gábor Ferencz, Thomas Rost



ISRAEL

Mills Hadera

Management Board Avner Solel,Yehonatan Roash,David Muhlgay,Dror Cohen,Lior Peretz



SLOVAKIA

Mills Ružomberok

Management Board Eliaz Amar, Richard Zigmund, Dusan Simo, Franz Aigner

Number of employees ~1,800 YE 2006


Pulp production capacity 421,000 tons

RUSSIA

Mills Syktyvkar

Management Board Andrey Dribny, Maxim Smirnov

Number of employees ~8,4001

YE 2006

Paper production capacity 580,000 tons1

Pulp production capacity 680,000 tons2

Own wood availability 3.2 M m³(annual allowable cut)

1 Excludes the board business (PM 21), which is managed by Mondi Packaging, but legally incorporated in MBP Syktyvkar. Total number of employees including the board business amounted to ~10.600 employees .

2 The Syktyvkar pulp mill capacity includes 185 kt of pulp attributed to Mondi Packaging

SOUTH AFRICA

Mills Merebank, Richards Bay

Management Board Ron Traill, Rory Sharp, Viv McMenamin

Number of employees ~2,200 YE 2006


Pulp production capacity 720,000 tons1

Own wood availability 4.4 M m³

1 The Richards Bay pulp mill capacity includes 270 kt of pulp attributed to Mondi Packaging

SUMMARY

HIGHLIGHTS OF THE LAST 18 MONTHS

Maintaining of strong positions of key brands & market positions in key markets

Top rating of Color Copy brand by EMGE2nd place ranking of Mondi in mill performance

Strengthenlow-cost position & market positioning

Improvements realized in industry operational efficiency benchmarksThe resolution of the PM31 technical issuesContinued focus on comprehensive Business Excellence programs

Awards received in the innovation & environmental arenasThe launch of Neox (Nano Technology Paper)

Efficiency Improvements & comprehensive Business Excellence programmes

Develop value-added growth options (e.g. modernisation and expansion project in Syktyvkar)

Disciplined approach to capital allocation

Strong asset base



Value creation


STEPSTEP

Panda-Award 2006

Panda-Award 2006

Source: Mondi

HIGHLIGHTS OF THE NEXT 18 MONTHS

Source: Mondi

Strengthening position in the fast growing office supply retail channelsMaintain strong market positions in key marketsDelivering on the targets of taking out complexity and costsConcluding the plans for the high complexity / high cost operationsStrengthening Mondi’s fibre position

Strengthenlow-cost position & market positioning

Continuing the safety path to Target 0 Continued focus on comprehensive Business Excellence programmes

Efficiency Improvements & comprehensive Business Excellence programmes

Delivering the Syktyvkar modernisation and expansion project to planContinue to evaluate value generating growth opportunities

Disciplined approach to capital allocation

Strong asset base



Value creation


STEPSTEP

YTD 2007

0.16

2006

0.19

2005

0.18

2004

0.35

2001 2002

2.30

0.71

2003

0.62

Lost time injury frequency ratein LTI / 200,000 working hrs employees + contractors

WOOD DYNAMICS

INTEGRATED VALUE CHAIN COMBINED WITH ACCESS TO LOW-COST WOOD

Control over wood resources due to the wood dynamics increasingly becoming a key competitive factor Mondi benefiting from an integrated value chain combined with access to low-cost wood with Russian and South African costs largely under our own control giving Mondi a competitive advantage

1 Regardless of whether sold externally or used for internal demand. 2 Forestry figures are based on total annual allowable cut without firewood (theoretical capacity). 3 2.3mt including newsprint.Note: Own supply figures do not include 1.9 mm³ wood and 0.5Mt pulp that are supplied internally to other Mondi businesses, mainly to MP.Source: Mondi

Mondi’s Own Availability1

Mondi’s Own Demand

Potential Self Sufficiency

PaperPulpForestry

89%

5.4 Mm3 2)

6.0 Mm3

77%

1.4m tons

1.8m tons

2.1 m tons3

UCWF


~ 68% of Mondi Uncoated fine Paper wood consumption from Russia and South AfricaRussian and South African costs are largely under our own control. Therefore, future wood costs are largely controllable.

47

3030

25

3942

3733

2625

Brazil

Russia

South

Africa

Chile

Austra

liaPola

ndPort

ugal

Sweden

Finlan

dFran

ce


WOOD DYNAMICS

Recently a number of studies have been conducted on wood availability and pulp wood prices in the European region.

The results show that the wood processing industry in Western Europe is under pressure from increased fibre demand and bio-mass burning for energy and is forecasted to experience increasing wood shortages.

Eastern European countries and Russia are less affected by this trend.

Russia is influencing the market via the introduction of potentially prohibitive customs duties.

The wood market is still a regional one, as transportation costsare high.

TOTAL HARVESTING EASTERN EUROPE & WEST RUSSIA

Source: Pöyry: Wood availability outlook in Eastern Europe & Russia (Aug. '07)

Million m3 Million m3

0

5

10

15

20

0

30

60

90

120

150

Rom

ania

Ukr

aine

Latv

ia

Est

onia

Slo

vaki

a

Bel

arus

Lith

uani

a

Hun

gary

Bul

garia

Cro

atia

Bos

nia

Ser

bia

Slo

veni

a

W R

ussi

a0

5

10

15

20

0

30

60

90

120Fuelwood

Industrial wood

HW

SW

CEE1 (excl. Russia) demand / supply – 2020 (in Mm3)

EASTERN EUROPE (EXCL. RUSSIA): STABLE DEMAND/SUPPLY SITUATION

1 The following countries were analysed: Belarus, Bosnia, Bulgaria, Croatia, Estonia, Hungary, Latvia, Lithuania, Romania, Serbia, Slovakia, Slovenia, UkraineSource: Pöyry: Wood availability outlook in Eastern Europe & Russia (Aug. '07), BCG analysis

Currently, demand and supply balanced to a great extentFuture domestic demand and supply pushed by prospering economic growthLimited growth of exports (to WE), as

domestic prices expected to grow in line with WE pricesthus keeping price differential to WE more or less at current levelthus levelling incentive to export

CEE1 (excl. Russia) demand / supply – 2005 (in Mm3)

12

7

151

Local demand Net exports

33

163

Supply

Other

Pulpwood

Expected Wood Availability in CEE1 (excl. Russia)

8

5

Supply

Other

Pulpwood

110

Local demand Net exports

18

118

Increase of Russian demand / supply balance, as:Establishing of export duties, aiming to foster domestic value creation, causing decrease of exports High distances to WE potentially do not lead to an increase of exports

Potentially, Russia with large unutilised suppliesNot used due to export duties and high transport distances to WE

West Russian demand / supply – 2005 (in Mm3)

West Russian demand / supply – 2020 (in Mm3)

West Russian theoretical supply – 2020 (in Mm3)

Source: Pöyry: Wood availability outlook in Eastern Europe & Russia (Aug. '07), BCG analysis

26

21

96

Local demand

Supply

Other

122

Pulp-wood

Net exports

67

5

38

Local demand

Net exports

49

172

Other

167

Pulp-wood

Supply

112

172

Used supply

Unused supply

284

Theoretical supply

Expected Wood Availability in Western Russia

WEST RUSSIA: INCREASINGLY BALANCED DEMAND/ SUPPLY SITUATION, BUT STILL HOLDING A CONSIDERABLE RESERVE OF WOOD

MARKET WOOD PRICES INCREASED IN RECENT QUARTERS

Pressure from energy sector combined with warm winter and lack of infrastructure (e.g. in Russia) caused increases of wood market prices

Source: Wood Resources International LLC (WRI): Wood resource quarterly report, 2007

05

101520253035404550556065707580859095

100105

4q/2005

1q/2006

2q/2006

US South

4q/2006

1q/2007

2q/2007

3q/2007

US Northwest

Canada West

Finland

3q/2006

Sweden Germany NW Russia Brazil

1q/2005

2q/2005

3q/2005

US$/m³Delivered to local

Pulp mills

05

101520253035404550556065707580859095

100105

US$/m³Delivered to local

Pulp mills

US South US Northwest

Finland Sweden Germany NW Russia Brazil Indonesia

Market Softwood prices (USD/m³) Market Hardwood prices (USD/m³)

CONCLUSIONS FROM RECENT WOOD / BIO ENERGY STUDIES

General raw material demand, combined with bio-energy demand is increasing pressure on fibre supply.

Bio-energy subsidies do seem to be slowing.

Overall European fibre supply is considered to remain tight with further cost increases anticipated,

Eastern European demand and supply is balanced to a large extent,Only Western Russia holds considerable wood reserves, which duties are now confining to domestic producers.

Consequently wood prices are likely to increase further in the coming years.

As forests in Russia and South Africa are managed, future wood availability and costs are largely under our control.

STEP PROJECT – RUSSIA

SYKTYVKAR MODERNISATION AND EXPANSION PROJECT

Modernisation and expansion of low-cost Pulp and paper millin Syktyvkar, RussiaCapex: EUR 525 m

WOOD RESOURCES

Annual Allowable Cut (in M m3)

Russia offers an abundant, high quality fibre resource that Mondi is well positioned to take advantage of, to supply the tight global market for wood products

The STEP Project will augment Mondi’s access to existing and future forestry rights in the Komi Republic

Actual cut in Komi Republic amounts to 27% of AAC

7

250

16

550

Russia

26

Rep. of Komi

Actual cutin Komi

3.2

Mondicontrolled

3.0

ActualMondi

demand

4.0

Mondidemand

incl. STEP

Totalvolume

Eco-nomical

viablevolume


Wood costs of Russia rank at the bottom of the international wood cost benchmark from Pöyry

Future wood costs largely depend on efficiency of our own operations

WOOD COSTS


47

3030

25

3942

3733

2625

Brazil

Russia

South

Africa

Chile

Austra

liaPola

ndPort

ugal

Sweden

Finlan

dFran

ce

Universal Business Paper Cost Curve

The Syktyvkar mill enjoys an excellent cost position on the cost curve.

The STEP Project will take Mondi further down the cost curve by expanding production in the lowest cost environment

COST POSITIONING

Note: The graph shows manufacturing cash cost.Source: Pöyry Forest Industry Consulting.

Syktyvkar PM14

EUR t Cost level 2006/III

200

400

600

800

1,000

1,200

0 1,000 2,000 3,000 4,000Cumulative capacity (1 000 t/a)

MARKET FORECAST

1 Based on Mondi ResearchSource: Pöyry (World Paper Markets up to 2020); Mondi Analysis

Source: Pöyry (White-top Kraftliner and White-top Testlinercost competitiveness and Market Outlook); February 2007

UCWF / Cut size Paper Demand Forecast

The STEP Project will enable Mondi to benefit from the strong growth in demand for UCWF and containerboard in the domestic Russian market

White-top liner Demand Forecast

3.1

2.6

1.7

2010 20152004

CAGR5.7%

CEE incl. Russia, M tons

0.80.7

0.70.6

20102008 20092007

CAGR8.7%

CIS cutsize (C+ Grade)1

275

195

115

2005 2010 2015

CAGR9.1%

Russia, k tons

SYKTYVKAR OPERATIONAL ACHIEVEMENTS

1 CAGR. 2 Forestry workers included.Note: Tons per capita based on employees year average.Source: Mondi

The Russian operation Syktyvkar has been a success story for Mondi, outperforming in the areas of safety, productivity, costs and environmental management

In the process Mondi has developed highly valued relationships with the local government and stakeholders, which in conjunction with the above, positions Mondi uniquely to fully utilize this attractive value creating opportunity

Syktyvkar (Russia)²

13% p.a.( ¹)

100

120

140

160

180

2002 2003 2004 2005 2006

%

Volume per capita Management control

acquired in 2002


STEP PROJECT – PROJECT SCOPE

Wood handling facilities

Recovery boiler and turbine

Evaporation of Black Liquor

Limekiln

New and expanded

Two chemical pulp lines

PM14 UCWF machine

PM21 containerboard machine

Upgraded / Rebuilt

Lower operating costs

Improved efficiencies

Expanded electricity generating capacity

190,000 tpa increase in pulp production capacity

52,000 tpa increase in UCWF production capacity

46,000 tpa increase in containerboard

Reduced environmental footprint

Benefits include

MILESTONES OF THE PROJECT

Q1Q4 Q1 Q4Q3 Q2Q2 Q1Q4Q3Q3 Q22010200920082007

Q3 Q4

Start construction

Main equipmentvendors chosen

July / August 2007

April 2008

Mid 2010Project completion

28 november, 2007 ružomberok, slovakia...sources: emge woodfree forecast report; october 2007 for...

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