Mondi is an international packaging and paper Group, employing around 26,000 people in production facilities across 31 countries. In 2013, Mondi had revenues of €6.5 billion and a return on capital employed (ROCE) of 15.3%. The Group’s key operations are located in central Europe, Russia, the Americas and South Africa. It is fully integrated across the paper and packaging process – from growing of wood and the manufacture of pulp and paper (including recycled grades), to the conversion of packaging papers into corrugated packaging and industrial bags. It has primary listings on the Johannesburg Stock Exchange and the London Stock Exchange. It is a constituent of the FTSE 250 Index


Wood
Wood is Mondi’s most important raw material. It is therefore in our interest to ensure that we meet and support the requirements of sustainable forestry practices, from the management of our own forests right through to the procurement of our wood and fibre through the supply chain.


--------------------------------------------------------------------------------

Forestry
As a significant holder and manager of land, particularly in developing countries, and as an operator in an industry that potentially has a high impact on the natural environment, we recognise our stewardship role and responsibility in using natural forestry resources in a sustainable way.

Forests provide a range of goods and services. They serve as habitats for two-thirds of terrestrial animal and plant species; prevent soil erosion and water run-off; maintain the chemical balance of soil, air and water; recycle nutrients; break down pollutants; clean the air and water; are vital to watershed protection and soil formation; and play a major role in regulating climate.

The main factors contributing to deforestation and forest degradation are increased agriculture, illegal logging, population growth, poverty and urbanisation. Primary concerns include deforestation resulting from illegal logging in protected or high conservation value (HCV) areas, and timber obtained from controversial sources.

Although Mondi is involved in the felling of trees, we are not party to deforestation. For every tree felled in our plantation forests, at least one more tree is planted. In our natural forests, felled areas are left to regenerate naturally and poor regeneration is supplemented with plantings. Mondi is not involved in illegal logging, or logging in tropical rainforests, and has strict fibre sourcing controls.

Pulp
Wood is an essential raw material for all of our virgin fibre-based products. From wood fibre we produce pulp, the basic ingredient of all paper and paper-based packaging. We use pulp in our own production and also sell it wholesale to third parties. The pulp for paper-making may be produced from virgin fibre by either chemical or mechanical means, or it may be produced by the re-pulping of recovered paper. In the pulping process, the raw cellulose-bearing material is broken down into its individual fibres. In chemical pulping, chemicals are used to dissolve the lignin and free the fibres.

Recovered paper has become an indispensable raw material for our business and, in 2011, we consumed 1.5 million tonnes of recovered fibre, amounting to 30% of our total pulp consumed.

The pulp and paper manufacturing process also requires a large amount of process water and energy (in the form of steam and electrical power), which makes it an energy- and natural resource-intensive one.


http://www.mondigroup.com/desktopdefault.aspx

8 Oct Davy Research N/A Outperform
8 Oct Goodbody N/A Hold
8 Oct Deutsche Bank 1,750.00 Buy

Questor-share-tip-Hold-Mondi-after-strong-third-quarter.

Market Buzz

Friday newspaper share tips: Looking inside Mondi's packaging

Fri, 09 October 2015



(ShareCast News) - After Mondi released its third quarter results on Thursday, the newspaper pundits have opened the packaging and had a look inside to offer their insight.
Yesterday The Telegraph's Questor noted that shares in the FTSE 100 packaging and paper giant have drifted down since August after fears Europe is slowing down as well as a note from Goldman Sachs in September advising traders to sell.

Despite the shares being exposed to the rollercoaster of the business cycle due to the company's fixed cost-base, Questor thinks it should be able to negotiate a tougher trading environment.

It said Mondi has more than doubled its profits and dividend in the last four years, but the problem now is it's looking expensive.

"In the year to date the shares have gained 38pc compared to the FTSE 100 down 3pc, and are now trading on 15 times forecast earnings per share."

Questor thought it was a solid company but the rating feels too high for a "cyclical industry play". It is sticking with its hold recommendation which it advised in August.

The Times' Tempus is taking a slightly more optimistic view, saying the company defied fears after it posted a 27% rise in underlying third quarter profit and highlighted a good performance from all its business units. It noted input prices are stable, paper prices across the range are stable to rising, and volumes are up.

It also highlighted that the company has some ambitious spending plans, with €1.15bn a year for the next two years covered by cashflow.

"The question is when it will have excess capital to hand back to investors, and this will depend on spending plans in 2017 and 2018, to be decided next year and themselves dependent on the state of the market."

Tempus said the shares have come up a long way and aren't cheap, but recommends it's a long term buy.

28 Oct Davy Research N/A Outperform

12 Feb Deutsche Bank 1,650.00 Buy
11 Feb Investec 1,700.00 Buy

Trading Statement
PRN
Mondi Limited

(Incorporated in the Republic of South Africa)

(Registration number: 1967/013038/06)

JSE share code: MND ISIN: ZAE000156550

Mondi plc

(Incorporated in England and Wales)

(Registered number: 6209386)

JSE share code: MNP ISIN: GB00B1CRLC47

LSE share code: MNDI

As part of the dual listed company structure, Mondi Limited and Mondi plc (together 'Mondi Group') notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority.

16 February 2016

Mondi Group: Trading Statement

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.

Mondi is currently finalising its results for the year ended 31 December 2015 which will be released on 25 February 2016. As indicated in Mondis Interim Management Statement released on 8 October 2015, the Groups underlying operating profit for the first nine months of 2015 of EUR711 million was 29% above that of the comparable prior year period of EUR551 million. It can now be confirmed that underlying operating profit for the year ended 31 December 2015 is expected to be above that achieved in 2014 (EUR767 million).

In the prior year, the Group recognised a net special item charge after tax of EUR48 million. The equivalent special item charge for the year ended 31 December 2015 is expected to be around EUR47 million, of which EUR36 million was recognised in the first half. In the second half of the year, additional restructuring and closure costs and related impairments as well as provision for settlement of a legal case relating to the 2012 acquisition of Nordenia were recognised.

Accordingly, Mondi advises that it expects earnings per share (EPS) for the year ended 31 December 2015 to be within the ranges shown below:

basic earnings per share (euro cents) 121-126 (2014 97.4), increasing between 24% and 29%

basic headline earnings per share (euro cents) 121-126 (2014 99.5), increasing between 22% and 27%

basic underlying earnings per share (euro cents) 131 - 136 (2014 107.3), increasing between 22% and 27%

Mondi has disclosed basic underlying EPS, which is defined as basic EPS excluding the impact of special items, as the directors believe this provides a useful additional measure of the Groups underlying performance. Special items are those items of financial performance that the Group believes should be separately disclosed to assist in the understanding of the underlying financial performance achieved by the Group. Mondi has disclosed basic EPS which includes the effect of special items. The disclosure of basic headline EPS is required under the Listings Requirements of the JSE Limited and has been calculated in accordance with Circular 2/2015 as issued by the South African Institute of Chartered Accountants.

The above information has neither been reviewed nor audited by Mondis auditors.

End

17 Feb Deutsche Bank 1,650.00 Buy

Final Results

Full year results for the year ended 31 December 2015

Highlights

Excellent financial performance
Significant profit improvements across all business units
Underlying operating profit of �957 million, up 25%
Underlying earnings of 133.7 euro cents per share, up 25%
Cash generated from operations of �1,279 million, up 24%
Return on capital employed of 20.5%
Capital projects delivering growth
Completed major projects delivering to plan, contributing incremental �50 million to underlying operating profit in 2015
Strong capital investment pipeline: �450 million in major projects approved and in progress
Ongoing portfolio optimisation and refinement
Acquisitions totalling �94 million to enhance product offering in Consumer Packaging
Closure of six operations and sale of a further four operations to optimise cost structures and refine product mix
Significant progress made against our five-year sustainable development commitments
Recommended full year dividend of 52.0 euro cents per share, up 24%

Trading Update

PRN


Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

As part of the dual listed company structure, Mondi Limited and Mondi plc (together Mondi Group) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority.

Mondi Group: Trading update 12 May 2016

This trading update provides an overview of our financial performance and financial position since the year ended 31 December 2015, based on management information up to 31 March 2016 and estimated results for April 2016. These results have not been audited or reviewed by Mondis external auditors.

Reviewed results for the half-year ending 30 June 2016 will be published on or around 4 August 2016.

Except as discussed in this update, there have been no significant events or transactions impacting either the financial performance or financial position of the Group since 31 December 2015 up to the date of this statement.

Group performance overview

Underlying operating profit for the first quarter of 2016 of EUR269 million was 14% above the comparable prior year period (EUR236 million). Strong contributions from Consumer Packaging, Uncoated Fine Paper and the South Africa Division more than offset the impact of lower selling prices in certain Packaging Paper segments and margin pressure in Fibre Packaging. Underlying operating profit was up 9% on the fourth quarter of 2015 (EUR246 million).

On a like-for-like basis, sales volumes were in line with the comparable prior year period, with lower volumes in the industrial bags segment offset by good growth in Consumer Packaging.

Selling prices for the Groups main paper grades were, on average, up on the comparable prior year period, with strong gains in Uncoated Fine Paper, and more modest gains in the South Africa Division and containerboard, partly offset by lower kraft paper prices.

Wood and chemical input costs were at similar levels to the comparable prior year period while paper for recycling costs were up 15%, but broadly unchanged from the fourth quarter of 2015. Energy costs were lower, driven by generally lower raw material input costs and the benefits from the green energy investments at Swiecie, Poland, completed in the second half of 2015.

Currency movements had a net negative impact versus the comparable prior year period, with the benefits of weaker emerging market currencies in our export oriented businesses more than offset by the impact of the weaker rouble on our domestically focused uncoated fine paper operations in Russia.

There were no significant planned maintenance shuts during the first quarter. In the comparable prior year period the impact of maintenance shuts on operating profit was estimated at around EUR17 million. Based on prevailing market prices, we continue to estimate that the impact of planned maintenance shuts on operating profit for 2016 will be around EUR70 million, of which around EUR25 million will be incurred in the first half of the year (EUR35 million in the first half of 2015).

Divisional overview

In Packaging Paper, selling prices for the containerboard grades were marginally up on average over the comparable prior year period but down on the prior quarter. While demand remains solid, increased supply from new capacity in Europe and competition from importers benefiting from weak emerging market currencies resulted in lower selling prices for unbleached kraftliner. Average benchmark European kraftliner prices were down 3.4% on the previous quarter, and at similar levels to the comparable prior year period. Benchmark selling prices for white-top kraftliner were marginally down on the previous quarter, while recycled containerboard prices were down 1.8% on the previous quarter, but 5.2% above the comparable prior year period. Given sustained good demand and a strong order position, we have announced a price increase of EUR40/tonne for all kraftliner and kraft-top liner grades from 6 June 2016.

Sales volumes for sack kraft paper remained at similar levels to the comparable prior year period. As previously indicated, demand softness in a number of export markets and seasonal weakness in European markets towards the end of the prior year lead to average selling prices for sack kraft paper produced in Europe declining by 5-6% in the early part of 2016. Demand has since improved in the important export markets of south east Asia and the Middle East and pricing remains stable.

In Fibre Packaging, continued strong cost management, the benefits of restructuring and rationalisation activities and contributions from capital investments provided some offset to negative currency effects and lower sales volumes in Industrial Bags, which has been impacted by capacity rationalisation and challenging market conditions in the US.

On 26 April 2016, the acquisition of SIMET S.A., a corrugated plant in Poland, was completed. The plant will be upgraded to a high-efficiency box plant, improving our customer offering and supporting the strong growth in the region.

The Consumer Packaging business continued to make good progress. Good volume growth, coupled with incremental improvements in fixed costs and the benefits from acquisitions completed at the end of 2015 contributed to the improved performance.

Uncoated Fine Paper performed strongly with higher average selling prices and stable volumes versus the comparable prior year period offsetting the negative impact of the weaker rouble. European prices have stabilised following the increases seen in the second half of 2015, with the benefits of industry capacity rationalisation in the prior year offset by subdued demand in the first quarter. Average benchmark selling prices in Europe were up 2.8% on the comparable prior year period and in line with prices in the fourth quarter of 2015.

The South Africa Division benefited from higher average selling prices for uncoated fine paper, pulp and white-top kraftliner, currency gains and higher fair value gains on forestry than the comparable prior year period. Pulp prices have shown some softness from the highs seen in the prior year, with the average US dollar benchmark price down 5% on the previous quarter. In 2015, the Richards Bay maintenance shut took place in the first quarter of the year, while in 2016 the shut is planned for the final quarter.

Capital investment projects

Good progress is being made on our previously announced major capital investment projects at our high-quality, low-cost operations in central Europe and South Africa. These projects remain on schedule and on budget.

Capital expenditure for the year is expected to remain in line with previous guidance of between EUR400 million and EUR450 million.

Cash flow and financing activities

On 14 April 2016 we issued a 1.5% EUR500 million Eurobond with an 8 year term under our European Medium Term Note Programme, thereby extending the Groups maturity profile and ensuring ample liquidity.

Strong cash generation from operating activities more than offset the cash outflows related to our capital expenditure programme and financing activities, resulting in a reduction in net debt during the quarter.

Finance charges were lower than those of the previous quarter and the comparable prior year period, mainly due to lower average net debt levels and mix effects.

There have been no other significant changes in the Groups borrowing facilities since 31 December 2015.

Outlook

As anticipated, we have seen some price weakness in certain of our packaging paper grades. However, demand for these products remains strong and we believe the fundamentals remain robust. Furthermore, we continue to benefit from higher uncoated fine paper prices, lower energy and related input costs and the incremental contributions from our recently completed capital investment projects, together with the stability afforded by our downstream converting businesses.

Our outlook remains positive and we are confident of delivering in line with our expectations

Acquisition(s)

PRN


Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

2 June 2016

As part of the dual listed company structure, Mondi Limited and Mondi plc (together Mondi Group or Mondi) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure Rules and Transparency Rules and/or the Listing Rules of the United Kingdom Listing Authority.

Mondi Group signs agreement to acquire Kalenobel

Mondi Group has signed an agreement for the acquisition of 90% of the outstanding share capital in Kalenobel* from ARGUS Capital, a CEE focused private equity group, and M. Olcay Hephiz, one of the companys founders, for a consideration of around EUR90 million on a debt-and-cash-free basis (consideration for 90% of the business).

Established in 1955, Kalenobel is a Turkish consumer packaging company focused on the manufacture of flexible consumer packaging for ice cream and other applications as well as aseptic cartons. The company is headquartered in Istanbul and operates two manufacturing sites northwest of the city.

Kalenobel serves both international FMCG companies as well as regional food and beverage producers. The company exports approximately half of its production, mainly to Western Europe, the Middle East and North Africa.

Commenting on the acquisition, David Hathorn, Chief executive of Mondi Group, said: The acquisition of Kalenobel supports the growth of our Consumer Packaging business, broadening our product portfolio and geographic reach to better serve our customers in high-growth markets.

The transaction remains subject to competition clearance and other customary closing conditions and is expected to complete during the second half of 2016.

* Kale Nobel Ambalaj Sanayi ve Ticaret Anonim Sirketi.

Acquisition(s)

PRN


Mondi Limited
Incorporated in the Republic of South Africa
Registration number: 1967/013038/06
JSE share code: MND ISIN: ZAE000156550

Mondi plc
Incorporated in England and Wales
Registered number: 6209386
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

11 July 2016

As part of the dual listed company structure, Mondi Limited and Mondi plc (together Mondi Group or Mondi) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure Guidance and Transparency Rules and the Listing Rules of the United Kingdom Listing Authority.

Mondi Group signs an agreement to acquire Uralplastic

Mondi Group has signed an agreement to acquire 100% of the outstanding share capital of ZAO Uralplastic-N (Uralplastic) from Joint Stock Company Rusnano and a private investor.

Uralplastic operates one plant near Ekaterinburg, in the Ural region of Russia and manufactures a range of consumer flexible packaging products for food, hygiene, homecare and other applications. The company serves both local and international customers. For the year ended 31 December 2015 Uralplastic generated revenues of RUB1,988 million (EUR 29.2 million) and adjusted EBITDA of RUB318 million (EUR 4.7 million).

Commenting on the acquisition, David Hathorn, Chief executive of Mondi Group, said: The acquisition of Uralplastic supports the development of our Consumer Packaging business and strengthens our presence in the Russian consumer packaging market, complementing our existing plant in Pereslavl, near Moscow and allowing us to improve our offering to customers in this growing market.

The transaction is expected to complete in July 2016.

Contact:

Mondi Group
Lora Rossler
Group Head of Communications
Tel: +27 (0)31 451 2111 or +27 (0)83 627 0292
E-mail:lora.rossler@mondigroup.co.za


Andrew King
Group CFO
Tel: +27 (0)11 994 5415
E-mail:andrew.king@mondigroup.com

We are Mondi: In touch every day

At Mondi, our products protect and preserve the things that matter.

Mondi is an international packaging and paper Group, employing around 25,000 people across more than 30 countries. Our key operations are located in central Europe, Russia, North America and South Africa. We offer over 100 packaging and paper products, customised into more than 100,000 different solutions for customers, end consumers and industrial end uses - touching the lives of millions of people every day. In 2015, Mondi had revenues of 6.8 billion and a return on capital employed of 20.5%.

The Mondi Group is fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions. Our innovative technologies and products can be found in a variety of applications including hygiene components, stand-up pouches, super-strong cement bags, clever retail boxes and office paper. Our key customers are in industries such as automotive; building and construction; chemicals; food and beverage; home and personal care; medical and pharmaceutical; packaging and paper converting; pet care; and office and professional printing.

Mondi 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.

For us, acting sustainably makes good business sense and is part of the way we work every day. We have been included in the FTSE4Good Index Series since 2008 and the JSE's Socially Responsible Investment (SRI) Index since 2007.

Sponsor in South Africa: UBS South Africa (Pty) Ltd

Trading Statement

PRN


Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

As part of the dual listed company structure, Mondi Limited and Mondi plc (together 'Mondi Group') notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure Guidance and Transparency and Listing Rules of the United Kingdom Listing Authority.

26 July 2016

Mondi Group: Trading Statement

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.

Mondi is currently finalising its results for the half year ended 30 June 2016, which will be released on 4 August 2016. It can now be confirmed that underlying operating profit for the half year ended 30 June 2016 is expected to be above that of the comparable prior year period of EUR490 million.

There have been no special items in the six months ended 30 June 2016. In the six months ended 30 June 2015, the Group recognised a net special item charge after tax of EUR36 million.

Accordingly, Mondi advises that it expects earnings per share (EPS) for the half year ended 30 June 2016 to be within the ranges shown below:

•basic underlying EPS (euro cents) 73 to 77 (2015: 67.8), an increase of between 8% and 14%


•basic EPS (euro cents) 73 to 77 (2015: 60.3), an increase of between 21% and 28%


•basic headline EPS (euro cents) 73 to 77 (2015: 60.1), an increase of between 21% and 28%


Mondi has disclosed basic underlying EPS, which is defined as basic EPS excluding the impact of special items, as the directors believe this provides a useful additional measure of the Groups underlying performance. Mondi has disclosed basic EPS which includes the effect of special items. The disclosure of basic headline EPS is required under the Listings Requirements of the JSE Limited and has been calculated in accordance with Circular 2/2015 as issued by the South African Institute of Chartered Accountants.

Interim Result
04 Aug 16 Mondi PLC [MNDI]

Half year report

Half-yearly results for the six months ended 30 June 2016

Highlights

" Continued strong financial performance on all key metrics
• Underlying operating profit of �529 million, up 8%
• Underlying earnings of 75.0 euro cents per share, up 11%
•Cash generated from operations of �620 million, up 15%
•Return on capital employed of 21.2%

" Capital projects continue to deliver growth

" Strategic acquisitions enhance packaging portfolio

" Interim dividend declared of 18.81 euro cents per share

4 Aug Davy Research N/A Outperform
4 Aug Goodbody N/A Buy

Ex dividend Wed 17 Aug 0.19 euro

2016 Interim Dividend euro/sterling Exchange Rate

PRN


Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

As part of the dual listed company structure, Mondi Limited and Mondi plc (together Mondi Group) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE and/or the Disclosure Guidance and Transparency Rules and Listing Rules of the United Kingdom Listing Authority.

26 August 2016

Mondi Group 2016 Interim Dividend euro/sterling Exchange Rate

Mondi announced on 4 August 2016 that Mondi Limited and Mondi plc will pay their respective dividends on 13 September 2016 as follows:

Mondi Limited

Mondi Limited will pay its dividend in South African rand cents. The applicable exchange rate is EUR 1 to ZAR 15.35580.

Therefore, the equivalent gross interim dividend in rand cents per ordinary share will be 288.84260.

Mondi plc

Mondi plc will pay its dividend in euro (18.81 euro cents per ordinary share).

However, ordinary shareholders resident in the United Kingdom will receive the dividend in sterling (unless shareholders have elected to receive their dividend in euro). The last date for euro currency elections was 19 August 2016. It was stated in the announcement on 4 August 2016 that the exchange rate for this payment would be set today. Accordingly, it is confirmed that sterling dividend payments will be converted at a rate of EUR 1 to GBP 0.85448. Therefore, the equivalent interim dividend in pence per ordinary share will be 16.07277.

Mondi plc South African branch register shareholders will receive the dividend in South African rand cents, converted at a rate of EUR 1 to ZAR 15.35580. Therefore, the equivalent gross interim dividend in rand cents per ordinary share will be 288.84260.

Information relating to the dividend tax applicable to Mondi Limited shareholders and Mondi plc South African branch register shareholders can be found in the ZAR/euro exchange rate announcement released by Mondi on 4 August 2016.

Sponsor in South Africa: UBS South Africa (Pty) Ltd

26 Aug Deutsche Bank 1,700.00 Buy

Acquisition(s)
PRN
Mondi Limited
Incorporated in the Republic of South Africa
Registration number: 1967/013038/06
JSE share code: MND ISIN: ZAE000156550
Mondi plc
Incorporated in England and Wales
Registered number: 6209386
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
10 October 2016
As part of the dual listed company structure, Mondi Limited and Mondi plc (together Mondi Group or Mondi) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure Guidance and Transparency Rules and the Listing Rules of the United Kingdom Listing Authority.
Mondi Group signs an agreement to acquire Beepack
Mondi Group has signed an agreement to acquire 100% of the outstanding share capital of LLC Beepack (Beepack) from a private investor for a consideration of RUB2,825 million (EUR41 million) on a debt-and-cash-free basis.
Beepacks plant in Lebedyan (Lipetsk region of Russia, around 400 km south of Moscow) makes a range of corrugated packaging trays and boxes for food and agricultural products including beverages, fruit and vegetables, poultry and dairy. Customers include local Russian and international producers. For the year ended 31 December 2015 Beepack generated revenues of RUB2,782 million (EUR41 million) and adjusted EBITDA of RUB462 million (EUR7 million).
David Hathorn, Chief executive of Mondi Group, said: The acquisition of Beepack supports the ongoing development of our Corrugated Packaging business in central and eastern Europe. It enables us to enter a market with strong growth potential while expanding our geographic reach to better serve our customers.
The transaction remains subject to customary closing conditions and is expected to complete in Q4 2016.

Trading Update
PRN
Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND     ISIN: ZAE000156550
Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP     ISIN: GB00B1CRLC47
LSE share code: MNDI
As part of the dual listed company structure, Mondi Limited and Mondi plc (together Mondi Group) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure Guidance and Transparency and Listing Rules of the United Kingdom Listing Authority.
Mondi Group: Trading update 13 October 2016
This trading update provides an overview of our financial performance and financial position since the half year ended 30 June 2016. These results have not been audited or reviewed by our external auditors.
Except as discussed in this update, there have been no significant events or transactions impacting either the financial performance or financial position of the Group since 30 June 2016 up to the date of this statement.
Group performance overview
Underlying operating profit for the third quarter of 2016 of EUR227 million was 3% above the comparable prior year period (EUR221 million). As anticipated, generally lower average selling prices and a significantly lower fair value gain on forestry assets resulted in a 12% reduction in underlying operating profit from the second quarter of 2016 (EUR259 million).
On a like-for-like basis, sales volumes of our key paper grades were in line with the comparable prior year period.
Of our key input costs, wood and chemical costs remained stable during the period. Energy costs were down on the comparable prior year period due to lower energy prices and the benefits of various energy efficiency investments. While we continue to benefit from the energy investments completed in 2015 at Swiecie, prices achieved for green energy resulting from these investments were significantly lower than both the comparable prior year period and the second quarter and remain under pressure going into the fourth quarter. The average cost per tonne of paper for recycling was up 8% on the comparable prior year period and up 10% on the second quarter. Polyethylene prices were down on the comparable prior year period and stable on the second quarter.
While generally weaker compared to the third quarter of 2015, the emerging market currencies in which we operate were relatively stable to stronger versus the Euro when compared to the second quarter of 2016.
We completed planned maintenance shuts at our Swiecie (Poland) and Ruzomberok (Slovakia) mills during the quarter. The estimated impact on operating profit was around EUR20 million (EUR35 million in Q3 2015) and we continue to estimate that the full year impact of planned maintenance shuts will be around EUR70 million (2015: EUR90 million). In the fourth quarter, maintenance shuts are planned at the Richards Bay mill (South Africa) and at our kraft paper operations, with an estimated impact on operating profit of around EUR30 million (Q4 2015: EUR20 million). In 2015, the Richards Bay shut took place in the first quarter.
Divisional overview
In Packaging Paper, average benchmark European virgin containerboard prices were similar to the previous quarter but over 7% down on the comparable prior year period. Supported by sustained good demand and a strong order position, a price increase of EUR20/tonne was implemented in August across all European markets excluding southern Europe, partly offsetting the price erosion seen over the course of the first half of the year. Average benchmark recycled containerboard prices were down by around 3% versus the previous quarter and around 7% down on the comparable prior year period.
Average kraft paper prices were marginally down versus the previous quarter and around 8% down on the comparable prior year period. During the quarter we announced a EUR60/tonne increase in sack kraft paper for all European markets and an 8-12% increase in export markets.
In the Industrial Bags segment of Fibre Packaging, while European markets remain robust, the business continued to be negatively impacted by challenging market conditions in the US and CIS. The fourth quarter will be impacted by the usual seasonal slowdown in demand. Corrugated Packaging achieved good organic volume growth, supplemented by the acquisition of SIMET S.A. earlier in the year. On 10 October 2016, we announced the acquisition of a corrugated packaging facility in Russia (LLC Beepack) for a consideration of RUB2,825 million (EUR41 million) on a cash and debt free basis, supporting the ongoing development of our Corrugated Packaging business in central and eastern Europe.
During the third quarter, we concluded the acquisitions of Kalenobel (Turkey) and Uralplastic (Russia), supporting the growth of our Consumer Packaging business. While the integration of these businesses is progressing, a small net charge to operating profit in the second half of 2016 is expected from these acquisitions due to the effects of acquisition accounting and transaction costs.
Benchmark European uncoated fine paper prices were down by around 1% versus the previous quarter and marginally down on the comparable prior year period. In Europe, prices were under pressure through the quarter from a combination of seasonally weak demand and an increase in imports, but recent indications are that pricing has stabilised as order books strengthen into the seasonally stronger winter months. Pricing in the CIS markets remains stable. The marginal strengthening of the rouble in the quarter gave rise to translation gains for our domestically focused Russian uncoated fine paper operations.
In our South Africa Division, the notable strengthening of the rand in the quarter and the continued weakness of the USD pulp price (down 16% on the comparable prior year period and down 3% on the previous quarter) negatively impacted the profitability of the export oriented pulp and containerboard operations. Forestry gains of EUR8 million were significantly lower than those recognised in the first half of the year (EUR48 million).
Capital investment programme
We continue to make good progress on our previously announced major capital investment projects at our high-quality, low-cost operations in central Europe and South Africa.
At our Richards Bay mill (South Africa) the projects to upgrade the woodyard and provide capacity to produce unbleached kraftliner are nearing completion with planned project tie-ins to be completed during the maintenance shut in October.
As a result of lower prices for green energy in Poland and the slower than anticipated ramp-up of the paper and in-line coating machine at Steti (Czech Republic), the incremental operating profit contribution in 2016 from our capital investment programme is now estimated to be EUR50 million (previously EUR60 million).
Cash flow
Strong cash generation from operating activities largely offset the cash outflows related to our capital expenditure programme, acquisitions totalling EUR132 million and payment of the interim dividend. Net debt increased during the quarter to EUR1,560 million (30 June 2016: EUR1,491 million).
Outlook
We expect to benefit from stable to higher selling prices in a number of key product segments as we move into 2017 following the downward pressure seen over the course of 2016. Costs remain generally stable, albeit with near-term pressure in certain areas. Our ongoing capital investment programme continues to deliver strong returns. With our clear strategy, robust business model and culture of continuous improvement, we remain confident of continuing to deliver an industry leading performance.