Mondi is an international packaging and paper Group, with production operations across 29 countries and revenues of EUR5.7 billion in 2011. The Group's key operations are located in central Europe, Russia and South Africa and as at the end of 2011, Mondi Group employed 23,400 people.
Mondi Group is fully integrated across the paper and packaging process, from the growing of wood and the manufacture of pulp and paper (including recycled paper), to the conversion of packaging paper into corrugated packaging, industrial bags and coatings.
The Group is principally involved in the manufacture of packaging paper, converted packaging products and uncoated fine paper (UFP).
Mondi Group has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. The Group has been recognised for its sustainability through its inclusion in the FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's Socially Responsible Investment (SRI) Index since 2007. The Group was also included in the FTSE350 Carbon Disclosure Leadership Index for the second year.
2. Stability
Leading market positions and a strong focus on performance
are the key drivers of our shared success.
SOLUTIONS. FOR YOUR SUCCESS. Europe & International Presentation October 2012 Page 1
3. Mondi Group
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.
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4. 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.
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5. Business Structure Mondi Group
Merebank
Europe &
South Africa Richards Bay
International (E&I)
Forests
Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper
Consumer Goods
Containerboard Corrugated Packaging
Packaging
Advanced Films &
Kraft Paper Industrial Bags Components
Extrusion Coatings
50% Mondi
Shanduka
Newsprint
Release Liner
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7. Corporate History Milestones
2004 2007
2002 2008
2000 Acquisition of Demerger of the Mondi Group from
Increased ownership New corporate
Acquisition of majority of the Roman Anglo American plc and dual listing
of the Syktyvkar mill, structure
Frantschach by Mondi Bauernfeind on the London and Johannesburg
Russia, to over 90% announced, Europe
group stock exchanges
Acquisition of 50% of the & International
Ružomberok UFP & pulp mill, Acquisition of 54% of the Turkish Division and South
Slovak Republic corrugated packaging business Africa Division
Tire Kutsan created
Acquisition of the kraft paper,
industrial bags and extrusion
coatings businesses of
AssiDomän
2009
Start-up of Extrusion Coatings,
Completion of the
Release Liner and
investments of
Consumer Packaging
€285m in the new
lightweight recycled
containerboard
1967 machine ECO7 and
Founding of Mondi, South Africa €45m in the new
state-of-the-art
corrugated box plant
1997 in Świecie, Poland
Acquisition of Świecie,
one of Poland’s 2010
largest paper mills Acquisition of the Western
European industrial and
2012 consumer bags businesses of
Acquisition of the remaining shares Smurfit Kappa
1881 1793 in Mondi Świecie S.A., Poland
Founding of the pulp Founding of the Completion of the €545m
Acquisition of NORDENIA INTERNATIONAL AG, investment in the extension
and paper mill Neusiedler paper a leading producer of consumer goods packaging
Frantschach, Austria mill, Austria and modernisation of the
and advanced films & components Syktyvkar mill, Russia
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8. The Mondi Way
To create solutions for our customers’ success,
delivering exceptional value in a sustainable way
Purpose
Leading market positions
High quality, low cost asset base
Strategy
Customer focused development
Focus on performance
Operational Excellence Cutting Edge
People Development Products
Mondi Diamond
Sustainable Development Customer
Focus
Dynamic Entrepreneurial
Respectful Empowered Culture
Responsible Transparent
Passion for performance
Caring Values
Acting with integrity
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9. The Mondi Diamond
Cutting Edge Products
Operational Excellence ● Ensure shared product development Sustainable Development
● Maximise equipment and and success with customers ● Care about health and
process efficiencies ● Create competitive advantages with safety
● Focus on quality and leading high-quality products and brands ● Reduce environmental
productivity ● Leverage expertise and create tailor- impacts and engage in
● Improve cost competi- made solutions sustainable forestry
tiveness and all ● Put social responsibility
operational activities into practice
Customer Focus People Development
● Understand market and ● Inspire and develop
customer needs people
● Strive for flawless service ● Promote excellence in
and on-time delivery leadership
● Facilitate sustainable ● Shape our culture and
partnerships and measure embrace diversity
success
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10. 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.
Half-year Half-year
Mondi E&I** 2011
We are specialists in: 1/2012 1/2011
Revenue1 €2,528m €2,684m €5,162m
● Containerboard
● Kraft paper Packaging Paper €960m €1,063m €2,006m
● Corrugated packaging Fibre Packaging €946m €972m €1,881m
● Industrial bags Consumer Packaging €151m €207m €372m
● Extrusion coatings Uncoated Fine Paper €749m €734m €1429m
● Release liner Underlying operating profit
2
€261m 351m €611m
● Consumer goods packaging Packaging Paper €103m €173m €295m
● Advanced films & components
Fibre Packaging €48m €46m €86m
● Office and professional
* Including NORDENIA employees. Consumer Packaging €10m €14m €25m
printing paper ** Excluding NORDENIA .
1 Including intra-segment revenue.
2 Operating profit of subsidiaries Uncoated Fine Paper €100m €118m €205m
and joint ventures before special items.
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11. Mondi Europe & International Network
99 operations in 28 countries*
**
* Including NORDENIA, status October 2012. ** Operational by early 2014
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12. Mondi Europe & International
Production Statistics 2011*
Containerboard 2,010 ktonnes
Corrugated
Kraft paper 956 ktonnes board & boxes 1,213 million m2
Industrial
Uncoated fine paper 1,401 ktonnes bags 3,958 million units
Market pulp 213 ktonnes Extrusion coatings
& release liner 3,357 million m2
Newsprint 199 ktonnes
Consumer
packaging 1,246 million units
Total Pulp & Paper 4,779 ktonnes
* Excluding NORDENIA
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13. A Top Player in Europe
Market Shares in Europe No. 1 No. 2 No. 3
Packaging Virgin containerboard1 12% * Europe including Russia and Turkey.
** Europe including Russia and excluding Turkey.
*** Albania, Armenia, Azerbaijan, Belarus, Bosnia
Paper* Kraft paper2 24%
and Herzegovina, Bulgaria, Croatia, Cyprus,
Czech Republic, Estonia, Georgia, Hungary,
Latvia, Lithuania, Macedonia, Malta, Moldova,
Montenegro, Poland, Romania, Serbia, Slovakia,
Slovenia, Turkey, Ukraine..
Industrial bags3 23% 1) Based on capacity. Source: RISI Capacity
Report 2011 and management estimates.
2) Based on capacity. Source: Pöyry July 2011
Fibre Packaging* Extrusion coatings4 7% report, RISI Lockwood-Post Mill Database 2011,
Pöyry Smart Terminal Service and management
estimates.
Release liner5 11% 3) Based on sales volume. Source: Eurosac,
Freedonia World Industrial Bags 2011 study, AMI
2011 study prepared for Mondi and management
estimates.
Uncoated Uncoated fine paper6 15% 4) Based on sales. Source: AWA Extrusion
Coated Material European Market Study 2008 and
management estimates.
Fine Paper** Office paper6 20% 5) Based on sales volumes. Source: AWA
European Release Liner outlook 2010 and
management estimates.
Emerging Europe*** No. 1 No. 2 No. 3 6) Based on sales volume. Source: EMGE
Woodfree Report, December 2011, Eurograph
delivery statistics 2011, Pyrabelisk and
management estimates.
Packaging Paper Recycled containerboard7 16% 7) Based on capacity. Source: RISI Capacity
Report 2011 and management estimates.
Fibre Packaging Corrugated packaging8 8% 8) Based on production. Source: Henry Poole
Consulting 2012 and management estimates.
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14. Business Structure Europe & International
Packaging Paper Fibre Packaging Consumer Packaging Uncoated Fine Paper
Corrugated Consumer Goods
Containerboard
Packaging Packaging
Advanced Films &
Kraft Paper Industrial Bags
Components
Extrusion Coatings
Release Liner
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15. Customer Focus
Our commitment to excellent customer service is reflected
in our strong focus on tailor-made and innovative solutions.
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16. Packaging Paper – Containerboard
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
4 mills
11 sales offices
Appearance Kraft Semi Chem Recycled
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17. 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
6 mills
9 sales offices
Sack kraft Speciality kraft Market
paper paper pulp
3 R&D centres
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18. 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
1 paper mill
15 plants
Shelf-ready Fruit & Top & bottom Heavy-duty
packaging vegetable trays solutions packaging 6 sales offices
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19. 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
37 plants
8 sales offices
High-speed filling Food safety Product security Easy handling 1 R&D centre
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20. 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
Building Insulation Dehydrated Medical 5 plants
membranes facers food packaging packaging
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21. 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
11 plants
Tapes Labels Hygiene Graphic arts 2 converting terminals
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22. 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
16 plants
6 sales offices
(Retort) stand-up Reclosable Paper-based Printed laminates
pouches plastic bags bags and films
2 R&D centres
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23. Consumer Packaging – Advanced Films & Components
Advanced technology. Advanced solutions.
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
3 plants
Hygiene Label Converter Surface protection 1 R&D centre
components films (barrier) films films
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24. Uncoated Fine Paper – Office Paper
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
4 mills
IQ color/ 13 sales offices
Color Copy IQ/MAESTRO® Snegurochka
MAESTRO® color
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25. Uncoated Fine Paper – Professional Printing Paper
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
4 mills
13 sales offices
Color Copy DNS® BIO TOP 3® next Converting
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26. Sustainability
By ensuring our operations are based on sustainable
principles, we deliver long-term value for our customers.
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27. Our Approach to Sustainability
Climate Change
26% reduction in specific CO2e emissions (per tonne of saleable product) since 2004
57% of energy generation from renewable sources
4.3 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™-certified
Some 32 million seedlings planted yearly
61% of wood and fibre procured is FSC™- or PEFC™-certified
572,023 hectares of our leased or owned forestry land (about 25% of our landholding)
are set aside for conservation
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28. Our Approach to Sustainability
Water
Calculation of our water footprint at operational level
Processed water is recycled at wastewater treatment plants
More than 19,500 hectares of wetlands in South Africa are assessed and
rehabilitation is initiated
Products
Lightweight solutions with up to 20% material savings
Biodegradable paper- and plastic-based solutions
Innovative features for extended product and shelf life
30% of pulp consumed is from recovered fibre
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29. Our Approach to Sustainability
Employees
The Mondi Academy offers around 40 technical, business and management
seminars in nine languages
Mondi carried out a global employee survey in 2011 with a response rate of 81%
Communities
Corporate social investment of €17.3 million in 2011
Community engagement plans in place at all mills and
forestry operations
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30. Our Website
For more information about Mondi please visit our website
www.mondigroup.com
Corporate Products
About us Served industries
Locations Our services
Investor relations Product news & events
www.mondigroup.com www.mondigroup.com/products
Careers Sustainability
Why talented people work Climate change & forestry
with Mondi
Social performance
Meet some of our people
Environmental performance
Career opportunities
www.mondigroup.com/careers www.mondigroup.com/sustainability
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31. 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 herein
b) 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.
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