Mondi Group Full year results for the year ended 31 December February 2016

Transcription

1 Mondi Group Full year results for the year ended 31 December February 2016

2 Agenda Highlights Financial overview Operational overview Delivering on our strategy Outlook Appendices 2

3 Highlights million 15.0% Euro cents per share Underlying operating profit and ROCE 13.6% 15.3% 17.2% 20.5% ROCE Underlying earnings per share CAGR 18.4% % 20.0% 15.0% 10.0% 5.0% 0.0% Excellent results achieved Underlying operating profit up 25% Underlying earnings up 25% ROCE of 20.5% Significant profit improvement across all business units Capital projects delivering growth 50 million incremental contribution to underlying operating profit in 2015 from completed investments Strong capital investment pipeline 94 million in acquisitions to enhance product offering in Consumer Packaging Recommended full year dividend of 52 euro cents per share, up 24% on prior year Strong results on all key metrics 3

4 Agenda Highlights Financial overview Operational overview Delivering on our strategy Outlook Appendices 4

5 Operating financial highlights million % change Group Revenue 6,402 6,819 7% 3,254 3,459 3,360 Underlying EBITDA 1,126 1,325 18% % Margin 17.6% 19.4% 17.6% 19.4% 19.5% Underlying operating profit % % Margin 12.0% 14.0% 12.0% 14.2% 13.9% Group ROCE 17.2% 20.5% 17.2% 19.0% 20.5% H H H % increase in operating profit and ROCE of 20.5% 5

6 Underlying operating profit development million (77) 0 (7) Volume Price Variable costs Fixed costs Currency effects Acquisitions and disposals Fair value gains and other 2015 Price, volume and input costs driving profitability 6

7 Divisional operating profit contribution EBIT contribution by segment¹ % 148m 14% 112m 212 million 43% 342m 14 8 milli on 11 2 milli on 21% 212m 16% 161m 40% 391m 12% 96m 13% 102m 96 milli on 102 million 11% 108m 12% 120m Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division Packaging Paper remains the largest contributor 1 Excludes Corporate costs of 35 million (2014: 33 million) 7

8 Divisional operating profit development million (2) (5) H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division Corporate 2015 Strong contributions from all business units 8

9 Financial review million % change Underlying operating profit % Net underlying finance costs (97) (105) (8%) (47) (59) (46) Net profit from associates Underlying profit before tax % Tax before special items (126) (161) (28%) (64) (82) (79) Total non-controlling interests (26) (45) (73%) (11) (21) (24) Underlying earnings % Special items (after tax and non-controlling interests) (48) (47) 2% (32) (36) (11) Reported profit after tax and non-controlling interests % Basic earnings per share (euro cents) % Underlying earnings per share (euro cents) % H H H Underlying earnings per share up 25% 9

10 Finance costs and net debt million % change Net debt 1,613 1,498 7% Average net debt 1,675 1,650 2% Net underlying finance costs (8%) Effective interest rate (before capitalised interest) 5.4% 6.3% Committed facilities 2,134 2,002 (6%) Of which undrawn Net debt/12-month trailing EBITDA (times) Currency split of net debt 1,498 million Sharply higher Russian interest rates in H1 and one-off effects increase effective interest rate Net debt down despite increasing capex spend Strong balance sheet provides strategic flexibility Public credit ratings Moody s Investor Services at Baa2 (stable outlook) Standard & Poor s at BBB (stable outlook) upgraded in May % 14% 2% 4% 14% 19% 46% Euro Polish zloty Czech koruna Russian rouble Rand Pounds sterling Other A robust financial position 10

11 Taxation million % change Tax charge (28%) Cash tax paid (51%) Effective tax rate 19% 19% Effective tax rate reflects underlying profit mix of Group plus Benefits of tax incentives related to our capital investments in Slovakia, Poland and Russia Recognition of deferred tax assets on tax losses Expect tax rate to move towards 22% over next three years Based on current geographic profit mix, prevailing tax rates and In the absence of further investment related tax incentives Stable tax rate 11

12 Cash flow effects - movement in net debt million 1,613 (1,279) , Net debt at 31 Dec 2014 Cash generated from operations Currency effects (including derivatives) Tax and financing costs paid Capex investment Dividends paid to equity holders Acquisitions and disposals Other Net debt at 31 Dec 2015 Significant cash generation 12

13 Dividends Dividends declared Euro cents per share Interim dividend Final dividend Dividend cover (times) Mondi s dividend policy aims to offer shareholders long term dividend growth within a target dividend cover range of two to three times underlying earnings on average over the cycle Given the Group s strong financial position and the Boards stated objective to increase distributions to shareholders through the ordinary dividend, the Boards have recommended an increase in the final dividend to euro cents per share Full year dividend of 52 euro cents per share, up 24% on prior year Compound annual growth rate in dividend over past 5 years of 19% 13

14 Agenda Highlights Financial overview Operational overview Delivering on our strategy Outlook Appendices Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 14

15 Packaging Paper million 24.5% Underlying operating profit, margin and ROCE 17.8% 14.6% 12.0% 21.7% 14.9% 23.7% 25.5% 16.7% 18.1% ROCE Underlying operating profit margin Production volumes Volumes indexed to VCB RCB Kraft paper Market pulp Another strong performance, ROCE of 25.5% and underlying profit up 14% on prior year Supported by Higher selling prices in Containerboard Benefits of completed capital investments - Higher sales volumes of kraft paper and pulp - Lower energy costs Positive currency effects Strong cost control through cost savings initiatives and lower average wood, chemicals and energy costs Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 15

16 Packaging Paper industry fundamentals /tonne Selling prices Virgin containerboard (VCB) European demand growth of 4.7% in 2015 Average 2015 European benchmark selling prices Kraftliner brown up 4.4% White-top kraftliner marginally up Recent downward pressure on prices due to European capacity increases and competition from emerging markets enjoying weaker currencies Average decline in unbleached kraftliner prices of around 20-25/tonne in early 2016 White-top kraftliner down 10-15/tonne VCB RCB White-top kraftliner Recycled containerboard (RCB) European demand growth of 3.9% in 2015 Average 2015 European benchmark selling prices up 0.9% Net capacity additions of ±800 ktpa in 2016, expected to be matched by demand growth Source: FOEX Indexes Ltd Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 16

17 Incremental containerboard supply expected to be absorbed by demand in the medium term 2016E-2018E demand and capacity growth estimates in Europe (in mt) Containerboard VCB RCB CAGR +2-3% +1-2% +2-3% Capacity Net capacity additions Demand growth 2015 Capacity Net capacity additions Demand growth 2015 Capacity Net capacity additions Demand growth Overall containerboard capacity expected to grow in line with demand In VCB grades, announced capacity increase likely to be compensated by grade substitution and/or reduction in net imports Net imports of 0.6 million tonnes estimated in 2015 US kraftliner can be sold domestically at /t higher than in Southern Europe Source: RISI and Mondi estimates Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 17

18 Packaging Paper industry fundamentals Price indexed to Selling prices Sack kraft paper European demand moderately weaker Softness in export markets Slowdown in construction activity in south east Asia Political instability in Middle East and North Africa Average selling prices down 5-6% in early Sack kraft paper - Europe Speciality kraft paper Good demand growth Higher average selling prices in 2015 Selling prices remain stable in early 2016 Source: Mondi Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 18

19 Fibre Packaging million 11.3% 4.6% Underlying operating profit, margin and ROCE 13.9% 5.9% 11.8% 13.4% 13.9% 5.1% 5.5% 5.9% ROCE Underlying operating profit margin Production volumes Volumes indexed to Corrugated packaging Industrial bags Extrusion coatings Corrugated Packaging 3.3% higher like-for-like sales volumes, good growth in Poland and Czech Republic Good cost control and benefits of restructuring in 2014 Turkey impacted by weaker Turkish lira, political instability and domestic inflation Capital investments contributed to improved performance Industrial Bags Sales volumes up 11% US acquisition Market share growth in MENA and Europe Higher average selling prices Benefits from stronger USD, product innovation, commercial excellence projects and productivity improvements Extrusion Coatings Gains from improved product portfolio Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 19

20 Consumer Packaging million 11.6% Underlying operating profit, margin and ROCE 5.1% 4.8% 9.0% 8.7% 5.6% 10.4% 10.7% 7.0% 7.4% ¹ ROCE Underlying operating profit margin Underlying operating profit up 13% on prior year Margins supported by Strong volume growth in higher value-added segments Commercial excellence initiatives - Improved sales infrastructure - Material usage and efficiency - Improving productivity - Streamlining innovation process Good progress in repositioning business Exposure to lower value-added products reduced - Closure of Spanish and Italian operations - Sale of Malaysian and German plants Ramp-up of Chinese plant and 2014 Polish acquisition Acquisitions of Ascania (Germany) and KSP (South Korea and Thailand) - Increase exposure to high-growth, high value-added segments 1 Excludes 14 million one-off costs relating to Nordenia acquisition Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 20

21 Uncoated Fine Paper million Underlying operating profit, margin and ROCE 25.6% 16.7% 16.7% 16.0% 16.1% 14.3% 13.1% 12.3% 11.9% 17.2% Strong performance with ROCE of 25.6% and 43% increase in underlying operating profit Selling price increases in Europe and Russia Sales volumes up 1.7% ROCE Underlying operating profit margin Volumes indexed to Production volumes Uncoated fine paper Good cost control through commercial excellence initiatives Lower wood, energy and chemical costs Higher euro pulp costs (up 26%) impact Neusiedler operations Full realisation of benefits from new recovery boiler at the Ružomberok mill providing energy efficiencies and increased pulp production Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 21

22 Uncoated Fine Paper industry fundamentals /tonne Pulp and A4 B-copy prices A4 B-copy Pulp (BHKP) Demand Europe stable Decline in CIS of approximately 4% Supply Significant capacity rationalisation through closures and conversions - ±720 ktpa over 2015/2016 Prices Average benchmark pricing in Europe down 0.7% on prior year, but up 1.9% in second half Price increase in Europe of up to 4% implemented effective February 2016 Price increases in Russia announced for implementation during Q Source: FOEX Indexes Ltd Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 22

23 South Africa Division million 16.0% 21.9% 30.1% 24.7% 8.7% 9.6% 18.8% 14.9% 9.8% 9.8% ROCE Underlying operating profit margin Volumes indexed to Underlying operating profit, margin and ROCE Production volumes Strong performance, underlying profit up 44% and ROCE of 30.1% Benefited from Higher average selling prices in pulp and white-top kraftliner Good cost control - Focus on improving productivity, driving efficiencies and reducing waste Significant currency gains on export volumes Sales volumes marginally lower, impacted by extended Richards Bay shut Productivity improved by 90% over last three years Uncoated fine paper White-top kraftliner Market pulp Comparatives for 2011 have not been restated to include 100% of Mondi Shanduka Newsprint in South Africa Division and consequently reflect a 58% portion Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa Division 23

24 Agenda Highlights Financial overview Operational overview Delivering on our strategy Outlook Appendices 24

25 Consistent, clear strategic focus growing our packaging business Development of Capital Employed per business as a % of total 21% 29% 26% 31% 41% 36% 34% 34% 32% 33% 19% 15% 16% 18% 17% 19% 20% 21% 23% 6% Consumer packaging Fibre based packaging Upstream packaging Uncoated fine paper Other Capital expenditure in packaging business between represents 75% of total Group expenditure over period 1.4 billion spent on packaging acquisitions over the last 5 years Świecie minorities and power plant (Containerboard) 2 Duropack plants (Corrugated) Industrial bags and kraft paper business of Graphic Packaging in the US and industrial bags business Intercell (Kraft Paper and Industrial Bags) Nordenia, Kutno, Ascania and KSP (Consumer packaging) Organic growth in our consumer exposed packaging businesses exceeds GDP growth 25

26 Continuing to strengthen our cost leadership position by investing in our low-cost, high-quality asset base Packaging Paper Cost per tonne produced ( /t) -6% -22% -16% Uncoated Fine Paper South Africa Division Cost reductions driven by Capital investment programme - In excess of 650 million invested over past 5 years in major projects delivering cost and volume benefits Rationalisation of high-cost capacity 4 mills closed or sold Ongoing focus on operational efficiency - Exceeded target of 2% reduction in cash cost base per annum, offsetting inflationary pressures Currency benefits due to emerging market currency weakness mainly in Uncoated Fine Paper and South Africa Division Structural improvements in cost base driving profit growth 26

27 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% Growth options Organic capital investments Capital expenditure 770 million committed to major projects over million 78% 86% 113% 159% 164% Completed major capital investments already contributing meaningfully - Delivered incremental operating profit of around 100 million over past two years - Incremental operating profit of around 60 million expected in 2016 Approved new 300 ktpa kraft top white machine at Ružomberok mill in Slovakia: 310 million Subject to tax incentives and permitting Capex as a % of depreciation, amortisation and impairments Strong pipeline of projects under consideration Centred around our high-quality, low-cost packaging paper assets in central Europe Capital expenditure expected to be in the range of million per annum over next two years 27

28 New 310 million, 300 ktpa kraft top white machine investment Ružomberok mill, Slovakia Project description Benefits ROCE % 300,000 tonne per annum kraft top white machine Debottlenecking pulp mill increasing capacity by 100,000 tonnes per annum Unique product offering o targeted at fast growing white-top testliner and white-top kraftliner end uses o virgin top layer provides higher brightness, printability and stability while recycled layer provides a cost advantage for customer o based on Mondi s proven concept of unbleached kraft top liner grades Improves pulp production costs and the mill s energy balance further benefiting Ružomberok s overall cost position In excess of Group s 13% hurdle rate for new investments within 3 years of start-up Expected Start-up Mid 2019 Conditions Tax incentives Necessary permitting 28

29 Major project pipeline delivering strongly m Frantschach recovery boiler 16m Syktyvkar bark boiler 13m Stambolijski steam turbine and economiser 32m Richards Bay steam turbine 70m Štĕti bleached kraft 128m Ružomberok recovery boiler 30m Syktyvkar pulp dryer 166m Świecie recovery boiler, turbine and biomass boiler 106m Packaging Paper 24m Fibre Packaging 94m Świecie phase II 30m South Africa Division woodyard upgrade 310 million 300 ktpa kraft top white machine at Ružomberok mill Replacement of the recovery boiler at Štĕti mill Installation of a 90 ktpa kraft paper machine at one of our central European operations Approved Under consideration Other 121m 228m 296m 124m > 500m 100 million incremental operating profit delivered from major projects in 2014/ million incremental operating profit benefit expected in

30 Further integrating sustainable development into our strategy Progress against our 2015 commitments: 29 out of 35 commitments* achieved Securing access to sustainable fibre Highlight: 100% of owned and leased land is FSC -certified Contributing to our communities Highlight: Community engagement plans at all key operations Minimising our contribution to climate change Highlight: 103% electrical self-sufficiency across our pulp and paper mills Operating in a world of constrained resources Highlight: 25% of managed land set aside for conservation Focusing on safety & health and securing talent Highlight: Industry-leading safety performance Increasing the eco-efficiency of our products Highlight: 22% reduction of waste to landfill Looking ahead to 2020: 16 commitments across 10 action areas Employee and contractor safety A skilled and committed workforce Fairness and diversity in the workplace Sustainable fibre Climate change Constrained resources and environmental impacts Biodiversity and ecosystems Supplier conduct and responsible procurement Relationships with communities Solutions that create value for our customers *excluding two climate-related commitments for the period

31 Agenda Highlights Financial overview Operational overview Delivering on our strategy Outlook Appendices 31

32 Outlook Our outlook for the business remains positive. While we are currently seeing some softness in certain of our packaging paper grades, we are also seeing firmer prices in the European uncoated fine paper markets following recent industry capacity rationalisation. In addition, lower energy and related input costs, the generally positive impact of weaker emerging market currencies and the incremental contribution from recently completed major capital projects are expected to benefit the Group's performance in the near term. Underpinned by the Group's robust business model, centred around our high-quality, low-cost asset base, clear strategic focus and culture of continuous improvement, we remain confident of continuing to deliver an industryleading performance. 32

33 Q&A 33

34 Agenda Highlights Financial overview Operational overview Delivering on our strategy Outlook Appendices 34

35 Mondi at a glance Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper South Africa 2015 Revenue 1 2,156m 29% 30% 2,031m 1,469m 1,233m 652m 10% 9% 23% 16% 27% 8% 19% 29% ROCE 25.5% 13.9% 10.7% 25.6% 30.1% Products 1 Segment revenues, before elimination of inter-segment revenues 35

36 Strong global presence Sales by location of customer 6,819 million Sales by location of production 6,819 million 40% 11% 20% 10% 8% 7% 4% Emerging Europe Asia & Australia Russia South Africa Other Western Europe North America 38% 1% 10% Emerging Europe 10% 31% 10% Emerging Markets Mature Markets Russia South Africa Other Western Europe North America Product mix Operating net segment assets by geography 5,219 million 18% 10% 24% 48% Packaging Consumer related packaging Industrial packaging Uncoated fine paper Other 34% 3% 6% Emerging Europe 9% 10% 38% Emerging Markets Mature Markets South Africa Russia Other Western Europe North America 36

37 Our strategic value drivers Our clear strategic focus is on growth in packaging We invest in our high-quality, low-cost assets keeping us competitive and giving us sustainable cost advantages Upstream We are passionate about performance driving productivity and efficiency / margin improvement We work with our customers to find innovative solutions growing Downstream our product range and geographic reach Upstream Downstream Pulp Mills Paper Mills Converting Operations Our passion for performance is important across all our businesses and we consistently focus on driving productivity, improving efficiencies and reducing costs Our value drivers of investing in our high-quality, low cost assets and working with our customers to find innovative solutions apply to all our operations, although the priorities differ across the value chain 37

38 Growing in line with our strategy Maintain our strong and stable financial position and investment grade credit metrics Free Cash Flow priorities Grow through selective capital investment opportunities Support payment of dividends to our shareholders As appropriate Evaluate growth opportunities through M&A and/or increased shareholder distributions A strong financial position allows us to pursue growth options through capital investment and/or M&A 38

39 Continuing to deliver on our strategy Packaging Paper Fibre Packaging Consumer Packaging 2015 Developments We are passionate about performance We invest in our high-quality, low-cost assets Completion of first phase of Świecie Green (Poland) Completion of various strategic capital projects mainly at our kraft paper operations Sale of Raubling (Germany) and closure of Lohja (Finland) Evaluating significant new packaging investments in We work with our customers to find innovative solutions integrated mills in central Europe Investment in various Corrugated Packaging operations Closure of 2 US bags plants and Sendenhorst (Germany) Acquisition of Ascania (Germany) Acquisition of KSP (South Korea and Thailand) Sale of Ipoh (Malaysia) and Osterburken (Germany) Closure of Iberica (Spain) and Silicart (Italy) 39

40 Input costs Variable costs million Pulp Paper Wood Paper for recycling Energy Chemicals Plastics Other variable costs Comparatives for 2011 have not been restated to include 100% of Mondi Shanduka Newsprint in South Africa Division and consequently reflect a 58% portion 40

41 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% Fixed costs Fixed costs composition million % 22.7% 23.1% 22.8% 23.0% Depreciation, amortisation and impairments Other net operating expenses Personnel costs Maintenance and other indirect expenses Fixed costs excluding depreciation, amortisation and impairments as a % of revenue Comparatives for 2011 have not been restated to include 100% of Mondi Shanduka Newsprint in South Africa Division and consequently reflect a 58% portion 41

42 Special items Operating special items 57 million charge Packaging Paper Closure of speciality kraft paper mill in Finland ( 14 million) Fibre Packaging Restructuring following the acquisition of the bags business from Graphic Packaging ( 10 million) Closure of plants in Germany and France in Industrial Bags ( 11 million) Consumer Packaging Closure of a plant in Spain ( 14 million) Write off of receivable and provision for settlement of a legal case relating to the 2012 Nordenia acquisition ( 8 million) 42

43 Working capital million Working capital management 14% Working capital as a percentage of revenue marginally below revised target range of 12%-14% at year end 11.9% 12.3% 11.6% 10.0% 11.0% % Target range increased to reflect increased contribution from more working capital intensive downstream businesses ¹ ¹ 2015 Working capital as a % of revenue Working capital cash flows million 9 (27) (68) (83) (87) Working capital as a % of revenue is based on annualised revenue from acquisitions 43

44 Our integrated low-cost operations Cost quartile¹ Emerging market asset base leads to low cost positions across the Group s main grades Million tonnes Integrated value chain total production Q4 8% 12% 12% Q3 58% 11% 3.0 Q2 44% 100% 23% 100% Q1 100% 56% 100% 11% 77% 100% White-top kraftliner Unbleached kraftliner NSSC fluting Recycled fluting Unbleached sack kraft paper UFP² BHKP (pulp)³ Pulp Virgin containerboard Consumed internally Recycled containerboard Sold externally Kraft paper 1 Delivered to Frankfurt except where noted 2 Includes specialities 3 Delivered to Rotterdam Source: RISI and Mondi estimates 44

45 Five-year cumulative free cash flow billion (2.1) 3.7 (0.8) (1.4) 0.3 (0.3) Free cash flow generated Invested in asset base 1 Distributed to shareholders Spent on acquisitions Received from disposals and adjustments Change in net debt 1 Excludes dividend in specie of 205 million 45

46 Cash flow (reconciling to movement in net debt) million % change Underlying EBITDA 1,126 1,325 18% Working capital movements (87) 9 Other operating cash flow items (6) (55) Cash generated from operations 1,033 1,279 24% Dividends from financial investments and associates 2 - Taxes paid (106) (160) (51%) Net cash inflow from operating activities 929 1,119 20% Capital expenditure, excluding intangible assets (562) (595) (6%) Investment in intangibles and forestry assets (45) (50) (11%) Acquisitions¹ (104) (94) Disposals - 56 Financing costs (125) (93) 26% Dividends paid to shareholders (193) (209) (8%) Other investing and financing activities 94 (19) Net decrease/(increase) in net debt (6) On a cash and debt free basis 46

47 Statement of financial position million Property, plant and equipment 3,432 3,554 Goodwill Working capital Other assets Other liabilities (715) (675) Net assets excluding net debt 4,507 4,685 Equity 2,628 2,905 Non-controlling interests in equity Net debt 1,613 1,498 Capital employed 4,507 4,685 47

48 Production volumes Europe & International % change Containerboard '000 tonnes 2,160 2,138 (1%) Kraft paper '000 tonnes 1,130 1,162 3% Softwood pulp '000 tonnes 2,085 2,108 1% Corrugated board and boxes million m 2 1,343 1,350 1% Industrial bags million units 4,446 4,925 11% Extrusion coatings million m 2 1,401 1,389 (1%) Consumer packaging¹ million m 2 6,501 6,594 1% Uncoated fine paper '000 tonnes 1,361 1,379 1% Hardwood pulp '000 tonnes 1,127 1,161 3% Newsprint '000 tonnes (2%) South Africa Division Containerboard '000 tonnes (2%) Uncoated fine paper '000 tonnes (7%) Hardwood pulp '000 tonnes (5%) Newsprint '000 tonnes (3%) Softwood pulp '000 tonnes (1%) figure restated 48

49 Exchange rates Closing rates against the euro % change South African rand % Czech koruna (3%) Polish zloty Pounds sterling (6%) Russian rouble % Turkish lira % US dollar (10%) Average rates for the year against the euro South African rand (2%) Czech koruna (1%) Polish zloty Pounds sterling (10%) Russian rouble % Turkish lira % US dollar (17%) 49

50 Exchange rate development vs EUR Mature markets Emerging markets Aug 2013 Dec 2013 Apr 2014 GBP (LHS) Aug 2014 Dec 2014 Apr 2015 Aug 2015 USD (RHS) Dec Aug 2013 Dec 2013 Apr 2014 Aug 2014 Dec 2014 Apr 2015 Aug 2015 PLN (LHS) TRY (LHS) CZK (RHS) Dec 2015 South African rand Russian rouble Aug 2013 Dec 2013 Apr 2014 ZAR vs EUR Aug 2014 Dec 2014 Apr 2015 Aug 2015 ZAR vs USD Dec Aug 2013 Dec 2013 Apr 2014 Aug 2014 Dec 2014 RUB Apr 2015 Aug 2015 Dec

51 Mondi: 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. 51

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