mondi e&i company presentation october 2012

Europe & InternationalPresentation

Status October 2012

Stability

Europe & International Presentation October 2012 SOLUTIONS. FOR YOUR SUCCESS.

Leading market positions and a strong focus on performance are the key drivers of our shared success.

SOLUTIONS. FOR YOUR SUCCESS.

Mondi Group

Europe & International Presentation October 2012

Mondi is an international packaging and paper Group, with production operations across 29 countries and about 26,400 employees*.

Its key operations and interests are in central Europe, Russia, South Africa and emerging markets.

The Group is involved in the manufacture of packaging paper, converted packaging products and uncoated fine paper.

* Including NORDENIA employees.


Mondi Group


Key Figures Mondi Group*

Mondi had revenues from continuing operations of €5.7 billion in 2011 and is a dual listed company at the London Stock Exchange (LSE) and Johannesburg Stock Exchange (JSE).

* Excluding NORDENIA, status August 2012.1 The Group presents underlying EBITDA as measure which excludes special item in order to provide a more effective comparison of the underlying financial performance between reporting periods. 2 ROCE is underlying operating 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 1/2012 HY 1/2011 2011

Revenue €2,840m €2,942m €5,739m

Underlying EBITDA1 €436m €526m €964m

EBITDA margin 15.4% 17.9% 16.8%

Capital employed €4,048m €4,435m €3,833m

ROCE2 13.3% 15.2% 15.0%


Business Structure Mondi Group


Consumer GoodsPackaging

Advanced Films & Components

Corrugated PackagingContainerboard

50%

Industrial Bags

South AfricaEurope &

International (E&I)

Merebank

Fibre PackagingPackaging Paper Consumer Packaging

Richards Bay

Forests

Kraft Paper

Extrusion Coatings

Release Liner

Mondi Shanduka Newsprint

Uncoated Fine Paper


Integrated Value Chains



Corporate History Milestones


1967Founding of Mondi, South Africa

1997Acquisition of Świecie, one of Poland’s largest paper mills

2000 Acquisition of majority of Frantschach by Mondi

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

2007Demerger of the Mondi Group from Anglo American plc and dual listing on the London and Johannesburg

stock exchanges

Acquisition of 54% of the Turkish corrugated packaging business

Tire Kutsan

2008New corporate

structure announced, Europe

& International Division and South

Africa Division created

2009Completion of the investments of €285m in the new

lightweight recycled containerboard

machine ECO7 and €45m in the new state-

of-the-art corrugated box plant in Świecie,

Poland

1793Founding of the Neusiedler paper mill, Austria

1881Founding of the pulp and paper mill Frantschach, Austria

2010 Acquisition of the Western

European industrial and consumer bags businesses of

Smurfit Kappa

Completion of the €545m investment in the extension and modernisation of the Syktyvkar

mill, Russia

2012 Acquisition of the remaining shares

in Mondi Świecie S.A., Poland

Acquisition of NORDENIA INTERNATIONAL AG, a leading producer of consumer goods packaging

and advanced films & components


The Mondi Way


To create solutions for our customers’ success,delivering exceptional value in a sustainable way

Purpose

Passion for performance

Caring

Acting with integrity

Values

Leading market positions

High quality, low cost asset base

Customer focused development

Focus on performance

Strategy

Operational Excellence People Development Sustainable Development

Cutting EdgeProducts

CustomerFocus

Mondi Diamond

Dynamic

Respectful

Responsible

Entrepreneurial

Empowered

Transparent

Culture


The Mondi Diamond


People Development● Inspire and develop

people● Promote excellence in

leadership● Shape our culture and

embrace diversity

Sustainable Development● Care about health and

safety● Reduce environmental

impacts and engage in sustainable forestry

● Put social responsibility into practice

Cutting Edge Products● Ensure shared product development

and success with customers● Create competitive advantages with

leading high-quality products and brands

● Leverage expertise and create tailor- made solutions

Operational Excellence● Maximise equipment and

process efficiencies● Focus on quality and

productivity● Improve cost competi-

tiveness and all operational activities

Customer Focus● Understand market and

customer needs● Strive for flawless service

and on-time delivery● Facilitate sustainable

partnerships and measuresuccess


Mondi Europe & International


Key Figures

The Europe & International Division (E&I), headquartered in Vienna, has 99 production sites in 28 countries and about 24,000 employees*.

Our division consists of the Packaging Paper, Fibre Packaging, Consumer Packaging and Uncoated Fine Paper businesses.

We are specialists in: ● Containerboard● Kraft paper● Corrugated packaging● Industrial bags● Extrusion coatings● Release liner● Consumer goods packaging● Advanced films & components● Office and professional

printing paper* Including NORDENIA employees.** Excluding NORDENIA .1 Including intra-segment revenue.2 Operating profit of subsidiaries and joint ventures before special items.

Underlying operating profit2 €261m 351m €611m

Packaging Paper €103m €173m €295m

Fibre Packaging €48m €46m €86m

Consumer Packaging €10m €14m €25m

Uncoated Fine Paper €100m €118m €205m

Revenue1 €2,528m €2,684m €5,162m

Packaging Paper €960m €1,063m €2,006m

Fibre Packaging €946m €972m €1,881m

Consumer Packaging €151m €207m €372m

Uncoated Fine Paper €749m €734m €1429m

Mondi E&I** Half-year1/2012

Half-year1/2011 2011


Mondi Europe & International Network


99 operations in 28 countries*

* Including NORDENIA, status October 2012.

**

** Operational by early 2014


Mondi Europe & International


1,213 million m2

3,357 million m2

1,246 million units

3,958 million units

Production Statistics 2011*

Corrugated board & boxes

Industrialbags

Extrusion coatings & release liner

Consumer packaging

Containerboard

Kraft paper

Uncoated fine paper

Market pulp

Newsprint

Total Pulp & Paper

2,010 ktonnes

956 ktonnes

1,401 ktonnes

213 ktonnes

199 ktonnes

4,779 ktonnes

* Excluding NORDENIA


Market Shares in Europe No. 1 No. 2 No. 3

Packaging Paper*

Virgin containerboard1

Kraft paper2

Fibre Packaging*

Industrial bags3

Extrusion coatings4

Release liner5

UncoatedFine Paper**

Uncoated fine paper6

Office paper6

Emerging Europe*** No. 1 No. 2 No. 3

Packaging Paper Recycled containerboard7

Fibre Packaging Corrugated packaging8

A Top Player in Europe


* Europe including Russia and Turkey.** Europe including Russia and excluding 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 Capacity Report 2011 and management estimates.

2) Based on capacity. Source: Pöyry July 2011 report, RISI Lockwood-Post Mill Database 2011, Pöyry Smart Terminal Service and management estimates.

3) Based on sales volume. Source: Eurosac, Freedonia World Industrial Bags 2011 study, AMI 2011 study prepared for Mondi and management estimates.

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

5) Based on sales volumes. Source: AWA European Release Liner outlook 2010 and management estimates.

6) Based on sales volume. Source: EMGE Woodfree Report, December 2011, Eurograph delivery statistics 2011, Pyrabelisk and management estimates.

7) Based on capacity. Source: RISI Capacity Report 2011 and management estimates.

8) Based on production. Source: Henry Poole Consulting 2012 and management estimates.

15%

20%

12%

23%

24%

7%

11%

16%

8%


Business Structure Europe & International


Packaging Paper Fibre Packaging Consumer Packaging

Consumer Goods Packaging

Advanced Films & Components

ContainerboardCorrugated Packaging

Industrial Bags

Uncoated Fine Paper

Extrusion Coatings

Release Liner

Kraft Paper

Customer Focus


Our commitment to excellent customer service is reflected in our strong focus on tailor-made and innovative solutions.

4 mills

11 sales offices

Solutions for raw material savings.

Major European supplier of virgin and recycled containerboard

High-speed lightweight recycled containerboard machine ECO7, located in Central Europe at Świecie mill in Poland

New white top kraftliner quality that meets increased customer expectations

High quality containerboard grades for efficient packaging solutions with minimum environmental impact and maximum customer benefit

Packaging Paper – Containerboard

October 2012

Appearance Kraft Semi Chem Recycled

SOLUTIONS. FOR YOUR SUCCESS. Europe & International Presentation


Packaging Paper – Kraft Paper


Economically & environmentally sound solutions.

Broad range of high-quality sack kraft and speciality kraft papers

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

Sack kraft paper

Market pulp

6 mills

9 sales offices

3 R&D centres


Fibre Packaging – Corrugated Packaging


The power of packaging choice.

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 research & development-dedicated infrastructure and tools

Heavy-duty packaging

Top & bottom solutions

Fruit & vegetable trays

Shelf-ready packaging

1 paper mill

15 plants

6 sales offices


Fibre Packaging – Industrial Bags


Bag expertise at your service.

A trusted leader with operations in 27 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

Product securityHigh-speed filling Food safety

37 plants

8 sales offices

1 R&D centreEasy handling


Fibre Packaging – Extrusion Coatings


Intelligent solutions for optimum protection.

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

Medical packaging

Insulation facers

Building membranes

5 plants Dehydrated food packaging


Fibre Packaging – Release Liner


Self-adhesive solutions.

Tailor-made silicone-coated and specialty release liners, specifically designed for pressure-sensitive applications

Applications served include graphic arts, medical, hygiene, fibre composites, tapes, labels and many more

With our transatlantic operations, we offer high-quality and competitive product and service solutions as well as stable and reliable supply chain to our customers

Graphic artsLabelsTapes

11 plants

2 converting terminalsHygiene


Consumer Packaging – Consumer Goods Packaging


Solutions for maximum performance.

Attractive and convenient packaging for the consumer goods industry

High-quality laminates and barrier materials are converted into a broad range of flexible packaging solutions, such as (retortable) stand-up pouches, reclosable plastic bags, paper-based bags and microwaveable packaging

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

Printed laminates and films

Paper-based bags

(Retort) stand-up pouches

16 plants

6 sales offices

2 R&D centresReclosable plastic bags


Consumer Packaging – Advanced Films & Components


Advanced technology. Advanced solutions.

Specialist for blown and cast film extrusion within-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

Surface protection films

Converter (barrier) films

Hygiene components

3 plants

1 R&D centreLabelfilms


Uncoated Fine Paper – Office Paper


4 mills

13 sales offices

Leading office 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

SnegurochkaIQ color/

MAESTRO® colorIQ/MAESTRO®Color Copy


Uncoated Fine Paper – Professional Printing Paper


4 mills

13 sales offices

Solutions for successful communication.

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 (digital, offset & pre-print papers)

Converting solutions for specialised products

ConvertingBIO TOP 3® nextDNS®Color Copy

Sustainability


By ensuring our operations are based on sustainable principles, we deliver long-term value for our customers.

Our Approach to Sustainability

Europe & International Presentation October 2012SOLUTIONS. FOR YOUR SUCCESS.

Climate Change

26% reduction in specific CO2e emissions (per tonne of saleable product) since 200457% of energy generation from renewable sources4.3 million tonnes of CO2e emissions avoided by carbon sequestration of our plantations and by selling green electricity, heat and fuels; using recovered paper as a raw material; and substituting natural gas with biogas

Forestry

100% of managed forests FSC™-certifiedSome 32 million seedlings planted yearly61% of wood and fibre procured is FSC™- or PEFC™-certified572,023 hectares of our leased or owned forestry land (about 25% of our landholding) are set aside for conservation



WaterCalculation of our water footprint at operational levelProcessed water is recycled at wastewater treatment plantsMore than 19,500 hectares of wetlands in South Africa are assessed and rehabilitation is initiated

Products

Lightweight solutions with up to 20% material savingsBiodegradable paper- and plastic-based solutionsInnovative features for extended product and shelf life 30% of pulp consumed is from recovered fibre



EmployeesThe Mondi Academy offers around 40 technical, business and management seminars in nine languagesMondi carried out a global employee survey in 2011 with a response rate of 81%

Communities

Corporate social investment of €17.3 million in 2011Community engagement plans in place at all mills and forestry operations


Our Website


For more information about Mondi please visit our website

www.mondigroup.com

Corporate

About us

Locations

Investor relations

www.mondigroup.com

Products

Served industries

Our services

Product news & events

www.mondigroup.com/products

Careers Why talented people work

with Mondi

Meet some of our people

Career opportunities

www.mondigroup.com/careers

Sustainability

Climate change & forestry

Social performance

Environmental performance

www.mondigroup.com/sustainability


FORWARD - LOOKING STATEMENTS

It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations of market growth and developments; expectations of growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, “may” or similar expressions, are forward-looking statements. Since these statements are based on current knowledge, plans, estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. 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 Group’s patents and other intellectual property rights, 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 the Group’s products and raw materials and the pricing pressures thereto, financial condition of the customers, suppliers and the competitors of the Group, potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group’s principal geographical markets or fluctuations of exchange rates and interest rates.

Mondi does not

a) assume any warranty or liability as to accuracy or completeness of the information provided hereinb) undertake to review or confirm analysts’ expectations or estimates or to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of making any forward-looking statements.


mondi e&i company presentation october 2012

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