mondi e&i company presentation april 2014

Europe & International

Presentation

Status: April 2014

IN TOUCH EVERY DAY

Our products touch the lives of millions,

every day.

April 2014 Europe & International Presentation Page 1

http://youtu.be/04a_YkJ0Ss4




International. Every day.

We act locally. At around 100 sites. Worldwide.


Mondi Group

We are an international packaging and paper Group, employing around

24,000 people in production facilities across more than 30 countries.

Our key operations are located in central Europe, Russia, the Americas and

South Africa.

April 2014 Europe & International Presentation

Europe &

International (E&I)

Division

South Africa

Division

Corrugated

Packaging

Fibre Packaging

Industrial Bags

Coatings

Consumer Goods

Packaging

Consumer

Packaging

Advanced Films

& Components

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).


* The Group has restated comparative information following the adoption of revised IFRS standards. 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 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.

2013 2012* Change

Revenue €6,476m €5,790m 12%

Underlying EBITDA1 €1,068m €927m 15%

Underlying operating profit1 €699m €574m 22%

ROCE2 15.3% 13.6% -

Mondi Group

* Under construction

Mondi Group – Network

Mondi operates locally with around 100 operations in more than 30 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%

2004

• Acquisition of the Roman Bauernfeind group

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

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

Consumer Goods

Packaging

Advanced Films &

Components

Containerboard Corrugated

Packaging

Industrial Bags

Uncoated Fine

Paper

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

Revenue 2013 2012 Change

Packaging Paper €2,000m €1,896m 5%

Fibre Packaging €1,967m €1,860m 6%

Consumer Packaging €1,153m €502m -

Uncoated Fine Paper €1,388m €1,466m (5%)

Underlying operating profit1 2013 2012 Change

Packaging Paper €298m €227m 31%

Fibre Packaging €93m €101m (8%)

Consumer Packaging €74m €19m -

Uncoated Fine Paper €172m €191m (10%)

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.

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 #1 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 2013, and management estimates

2 Based on capacity. Source: Pöyry World Paper Markets up to 2025, RISI Mill Asset Database, Pöyry Smart Terminal Service and management estimates

3 Based on sales volume. Source: Eurosac, Freedonia World Industrial Bags 2011 study and management estimates

4 Based on sales volume. Source: AWA European Release Liner Market Update Study 2013, October 2013 report and management estimates

5 Based on sales. Source: AWA Extrusion Coated Material European Market Study 2008 and management estimates

6 Based on sales volume. Source: EMGE Woodfree Report, December 2012, Eurograph delivery statistics 2012, Pyrabelisk and management estimates

7 Based on sales. Source: Henry Poole Consulting 2013 and management estimates

Page 13

Integrated value chain


Paper for recycling

Pulp mill Forest Pulp

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

Film extrusion plant Films

Converting plant

Consumer goods

packaging

Advanced films

and components

Pulp mill Pulp Paper mill Sack kraft paper and

speciality kraft paper Converting plant

Industrial

bags

Coatings

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

● 5 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

● 4 mills


● 2 representative offices

● 3 R&D centres

Sack kraft paper


Cement & Building Chemicals Food Other industries

● 5 mills

● 1 converting terminal


● 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

● 1 mill

● 15 plants

● 6 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


● 36 plants

● 7 sales offices

● 1 R&D centre Product security High-speed filling Food safety Easy handling

Solutions for your self-adhesive products

● Tailor-made silicone-coated and speciality release liners,

specifically designed for pressure-sensitive applications

● Applications served include graphic arts, tapes, fibre

composites, labels, 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 to our customers

● 10 plants

● 1 converting terminal

Release liner


Graphic arts Labels Tapes Fibre composites

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


Medical

packaging

Insulation

facers

Building

membranes

Dehydrated

food packaging

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 (with AFC)

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 films and components


Surface

protection films

Converter

(barrier) films

Hygiene

components

Label

films

● 6 plants

● 1 R&D centre (with CGP)

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 sustainabilty 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 sustainabilty 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:

● minimising the impacts of our

operations on forests, climate

and water

● encouraging sustainable

practices in our industry

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

Product news and events

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 and

experience Mondi in action by watching our latest videos

on 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 april 2014

Business

mondi europe international

international packaging

paper group

central europe

founding of mondi

mondi way

neusiedler paper

mondi group key figures