Slide 1: Delivering in challenging markets. Investing for future growth.
Delivering in challenging markets. Investing for future growth. Results for the six months ended 30 June 2023 3 August 2023
Slide 2: Delivering in challenging markets. Investing for future growth.
Delivering in challenging markets. Investing for future growth. ● Underlying EBITDA of €680 million (H1 2022: €942 million) Strong delivery in ● Cash generated from operations of €554 million (H1 2022: €519 million) challenging ● Robust balance sheet at 0.8 times net debt to underlying EBITDA market
Slide 3: Financial Review (Continuing Operations)
FINANCIAL REVIEW (CONTINUING OPERATIONS)
Slide 4: Strong delivery in challenging markets
Strong delivery in challenging markets Cash generated Underlying EBITDA Basic underlying EPS from operations ROCE € million € cents per share € million % 566 942 680 53.4 98.7 67.0 407 519 554 12.8 19.2 19.1 H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2
Slide 5: Softer volume and higher average prices compared to H1 2022
Softer volume and higher average prices compared to H1 2022… Underlying EBITDA development € million (122) 86 (305) 56 23 942 680 H1 2022 Sales Sales Costs Forestry Currency H1 2023 volumes prices fair value gain and other 5
Slide 6: Volume declines and lower pricing compared to H2 2022
… with volume declines and lower pricing compared to H2 2022 Underlying EBITDA development € million (80) (236) 147 (53) (4) 906 680 H2 2022 Sales Sales Costs Forestry Currency H1 2023 volumes prices fair value gain and other 6
Slide 7: Strong cash generation and balance sheet
Strong cash generation and balance sheet Movement in net debt € million 0.5x 0.8x Net debt to underlying Net debt to underlying EBITDA EBITDA (1,011) (1,196) 680 (412) (159) (231) (93) 30 Net debt at Underlying Investment in Tax and Dividends Other Disposal of Net debt at 31 December EBITDA the busi
Slide 8: Investing through cycle for value accretive growth
Investing through cycle for value accretive growth Extending market leadership and scale Driving productivity improvements Pulp and Pulp and paper mills €0.4 bn €0.4 bn paper mills Enhancing €1.2 bn customer offering Leveraging cost advantaged asset base €0.2 bn €0.2 bn Converting Converting Improvi
Slide 9: Expansion projects on track and on budget
Expansion projects on track and on budget Kuopio modernisation (55ktpa) €0.1 billion Corrugated Świecie debottlenecking (55ktpa) €0.1 billion Packaging Duino conversion (420ktpa) €0.2 billion Converting network €0.2 billion Štětí kraft paper machine (210ktpa) €0.4 billion Flexible Packaging Converti
Slide 10: Disciplined capital allocation
Disciplined capital allocation Growing through selective capital investment opportunities Free cash flow Supporting payment of ordinary dividends to our shareholders priorities Evaluating growth opportunities through M&A and/or increased shareholder distributions While maintaining our strong and sta
Slide 11: Russian operations
Russian operations ● Reported as discontinued operations held for sale ● Completed the sale of converting operations to the Gotek Group with proceeds of €30 million ● The Board remains committed to divesting Syktyvkar mill o Sale process ongoing within an evolving political and regulatory environmen
Slide 12: 2023 Technical guidance
2023 Technical guidance 2023 Capital expenditure €800 – 850 million (no change) Depreciation and amortisation €400 – 425 million (no change) Estimated impact of planned mill maintenance shuts Similar to 2022 (no change) Working capital as a % of revenue 12 – 14% (no change) Effective tax rate 22 – 2
Slide 13: Business Unit Review
= = BUSINESS UNIT REVIEW
Slide 14: Corrugated Packaging
Corrugated Packaging % of Integration strength and cost competitiveness Group EBITDA Underlying EBITDA and margin € million and % ● Performance impacted by lower paper prices and generally softer demand 24.0% o Containerboard volumes were broadly flat in a market environment of declining demand, sup
Slide 15: Flexible Packaging
Flexible Packaging % of Resilient performance from unique platform Group EBITDA Underlying EBITDA and margin € million and % ● Lower volumes as a result of softer demand and the effects of customer destocking ● Across the kraft paper and paper bag value chain: 20.0% o Moderate volume declines in the
Slide 16: Uncoated Fine Paper
Uncoated Fine Paper % of Supplier of choice Group EBITDA Underlying EBITDA and margin € million and % ● Lower European uncoated fine paper volumes offsetting higher pulp volumes in South Africa ● Benefited from higher average uncoated fine paper selling prices 24.3% o Declining European prices and s
Slide 17: Delivering Our Strategy
DELIVERING OUR STRATEGY
Slide 18: Mondi kraft paper – global market leader
Mondi kraft paper – The global market leader supplying customers from our European mills Mondi Dynäs, Sweden ● 1.3 million tonnes (mt) of kraft paper for packaging applications o 0.9mt of sack kraft paper largely converted by Mondi for bags o 0.4mt of speciality kraft paper largely sold direct to cu
Slide 19: Largest integrated sack kraft paper and paper bags supplier
Largest integrated sack kraft paper and paper bags supplier Global capacity of 5 million tonnes Top 20 accounting for ~75% of capacity Global top 20 sack kraft paper Mix of integrated and unintegrated players producers (by capacity in kt) 900 Europe North America 600 Latin America Asia-Pacific Mondi
Slide 20: Mondi paper bags – global market leader producing 6bn bags per annum
Mondi paper bags – Global market leader producing 6bn bags per annum Europe Americas 22 plants 10 plants MENA & Asia 11 plants Drivers of growth ● Demand in traditional end-uses (building materials, cement, food and dairy products) ● Transition to 25kg cement bags (from 50kg) ● eCommerce – transitio
Slide 21: Strategically compelling acquisition of Hinton Pulp mill
Strategically compelling acquisition of Hinton Pulp mill1 ● Kraft paper – global market leader, cost competitiveness ● Paper bags – global operations, security of supply and Mondi’s close to our customers strategic position ● Integration across the value chain brings competitive advantage and high b
Slide 22: Good progress delivering MAP2030 sustainability commitments
Good progress delivering MAP2030 sustainability commitments Created by Taking action Circular driven solutions empowered people on climate ● Launched paper band to hold ● Biennial employee survey ● Approved investment in Dynäs individual products completed to reduce GHG emissions ● PPI Award for Hug
Slide 23: Delivering in challenging markets. Investing for future growth.
Delivering in challenging markets. Investing for future growth. Strong delivery in challenging markets Delivering value accretive growth, sustainably 23
Slide 24: Appendices
Slide 25: Mondi at a glance (H1 2023)
Mondi at a glance (H1 2023) Products Segment Underlying ROCE End uses revenue1 EBITDA (12-month & margin rolling) Corrugated €1,187m €188m 15.8% Packaging (30%) 15.8% Flexible €2,062m €343m Packaging 17.2% (52%) 16.6% Uncoated Fine €690m €168m Paper 33.2% (18%) 24.3% Consumer and retail2 Paper for p
Slide 26: Integrated value chain (2022)
Integrated value chain (2022) Pulp1 0.2 mt Wood Pulp 14.5 million m3 3.6 mt Containerboard1 1.4 mt Corrugated solutions 1.9 bn m2 Paper for Containerboard 2.4 mt Box plants recycling 1.3 mt Kraft paper1 0.4 mt Kraft paper 1.3 mt Paper bags 6.0 bn bags Consumer flexibles 2.0 bn m2 Functional paper an
Slide 27: Sustainability leadership in our industry
Sustainability leadership in our industry Sustainalytics Double A score for forestry The best possible score in Top score out of 82 Top rating score achieved for and water security, and A- for the Paper & Forest Products companies in paper and seven consecutive years climate change industry for five
Slide 28: Investment pipeline: Corrugated Packaging
Investment pipeline: Corrugated Packaging • Investment of €125 million for • Investment of €95 million for • Investing €200 million to convert • Investing across our central and 55,000 tonnes of additional 55,000 tonnes additional capacity existing paper machine into a eastern European network semi-
Slide 29: Investment pipeline: Flexible Packaging
Investment pipeline: Flexible Packaging • Investing €400 million in a new • Acquisition and intended • Ramping up investments in • Consolidating our leading position 210,000 tonne kraft paper €400 million investment including Colombia and Morocco in the European pet food machine a new 200,000 tonne
Slide 30: Forward-looking statements disclaimer
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, expe