Slide 1: Strong performance, sustainable growth: results for six months ended 30 June 2021
Strong performance Sustainable growth Results for the six months ended 30 June 2021 5 August 2021
Slide 2: 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
Slide 3: Highlights, financial review, operational review, strategy, summary, appendices
Highlights Financial review Operational review Delivering on our strategy Summary and Q&A Appendices 3
Slide 4: Highlights
HIGHLIGHTS
Slide 5: Delivering strongly – positioned for sustainable growth
Delivering strongly – positioned for sustainable growth ● Strong sales volumes and rising prices ● Effective cost control ● Results up sequentially ● Completed acquisition of Olmuksan ● Good progress made on capital investment projects ● Recently approved Corrugated Packaging expansions ● Mondi Acti
Slide 6: Financial review
FINANCIAL REVIEW
Slide 7: Strong financial performance
Strong financial performance % change % change € million H1 2020 H2 2020 H1 2021 vs H1 2020 vs H2 2020 Group revenue 3,452 3,211 3,627 5% 13% Underlying EBITDA 738 615 709 (4%) 15% % margin 21.4% 19.2% 19.5% Underlying operating profit 524 401 497 (5%) 24% % margin 15.2% 12.5% 13.7% Group ROCE 17.1%
Slide 8: Higher volumes and prices, rising input costs
Higher volumes and prices, rising input costs Underlying EBITDA development € million 162 (160) 55 (67) 738 (11) (8) 709 H1 2020 Sales Sales Costs Currency Forestry Other H1 2021 volumes prices effects fair value 8
Slide 9: Good cash generation continues
Good cash generation continues Movement in net debt € million 201 45 (709) 140 80 286 170 2,004 1,791 Investing in the business Net debt at Underlying Working Capital Acquisition of Tax and Dividends Other Net debt at 31 December EBITDA capital expenditure Olmuksan interest paid paid 30 June 2020 20
Slide 10: Strong financial position
Strong financial position Net debt € million (net debt) and ratio (net debt to underlying EBITDA) ● Signed €750 million revolving credit facility 1.5x o Aligning financing with MAP2030 1.3x 1.3x 1.3x 1.4x o Extending debt maturity profile ● Strong liquidity of around €1 billion ● Investment grade cr
Slide 11: Technical guidance
Technical guidance 2021 Guidance Incremental underlying EBITDA contribution from major capital investments ~ €50 million Unchanged Capital expenditure €600 – 700 million Unchanged Depreciation and amortisation €400 – 450 million Unchanged Estimated impact of planned mill maintenance shuts ~ €150 mil
Slide 12: Operational review
BEE SESE aT | ==
Slide 13: Corrugated Packaging: strong performance and momentum
Strong performance and momentum Corrugated Packaging Underlying EBITDA and margin € million and % ● Very strong demand – Corrugated Solutions volumes up 15%. Benefiting from: 27.6% 27.6% o eCommerce, consumer goods growth and recovery 24.2% in industrial o Innovation, strong customer offering and on
Slide 14: Flexible Packaging: leveraging unique platform, growing with customers
Leveraging unique platform, growing with customers Flexible Packaging Underlying EBITDA and margin € million and % ● Strong volume growth 20.3% 19.6% o Paper bags volumes up 11% – growth in all 18.5% regions o Consumer flexibles benefited from improved product mix and innovations ● Strong pricing mo
Slide 15: Engineered Materials: demand recovery, portfolio restructuring
Demand recovery, Engineered good progress on portfolio restructuring Materials Underlying EBITDA and margin € million and % ● Strong recovery in industrial and specialised end-uses for functional papers and films 10.6% 9.3% 8.9% ● Good progress made in personal care components in response to declini
Slide 16: Uncoated Fine Paper: improved trading, gaining market share
Improved trading, gaining market share Uncoated Fine Paper Underlying EBITDA and margin € million and % ● Higher uncoated fine paper volumes, good order books 21.2% 18.4% ● Market share gains across key regions 14.3% ● UFP price increases implemented in Q2 and early Q3 ● Significantly higher pulp pr
Slide 17: Delivering on our strategy
Slide 18: Our strategic framework
Our strategic framework We drive value accretive growth, SUSTAINABLY wha 18 ¢moneli
Slide 19: Sustainability targets to 2030
Driving value accretive growth sustainably Sustainability targets to 2030 Innovative packaging and paper An empowered and inclusive team Climate resilience through our solutions that keep materials in of colleagues who contribute to a forests and operations for the circulation and prevent waste bett
Slide 20: Building on a successful track record
Driving value accretive growth sustainably Building on a successful track record 2020 performance – some key examples: TRCR (per 200,000 hours worked) tonne per tonne of saleable production kg per tonne of saleable production responsibly reduction vs 2015 reduction vs 2014 sourced fibre reduction vs
Slide 21: Investing for growth in structurally attractive packaging markets
Invest in assets with cost advantage Investing for growth in structurally attractive packaging markets Corrugated Flexible Net investment1 Underlying EBITDA2 Packaging Packaging 5-year history (H2 2016 – H1 2021) H1 2021 €0.2bn 21% 37% €0.9bn 5% €0.8bn Engineered Uncoated Materials Fine Paper 37% Co
Slide 22: Leveraging cost-advantaged pulp and paper production footprint
Invest in assets with cost advantage Leveraging cost-advantaged pulp and paper production footprint 8% increased capacity Lower production when in full operation costs Improved Enhanced environmental efficiencies footprint Current projects – more than €750 million 22
Slide 23: Investing in converting to support growth
Invest in assets with cost advantage Investing in converting to support growth in structurally attractive markets Mondi’s sales volume CAGR LTM to June 2021 vs LTM June 2016 5-year CAGR ● Enhancing our product and service offering +7% o eCommerce +3% o Sustainability +2% o Enhancing customer brand v
Slide 24: UFP: Strongly positioned
Invest in assets with cost advantage UFP: Strongly positioned Cost-advantaged Strong cash generation Leading player through-the-cycle asset base ● Leading market positions 2/3rds of portfolio in lowest Underlying EBITDA / capital expenditure industry cost quartiles o Europe o CIS o Southern Africa ~
Slide 25: Unique platform – partner of choice
Partner with customers for innovation Unique platform – partner of choice Mondi’s customer-centric approach to sustainable packaging 25
Slide 26: Alternative to plastic pallet wrapping
Partner with customers for innovation Alternative to plastic pallet wrapping Advantage StretchWrap ● Innovative paper-based pallet wrapping o Responsibly sourced renewable fibres o Recyclable ● Developed in cooperation with machinery supplier (ACMI) and customers ● Potential to replace more than 10,
Slide 27: eCommerce paper-based solution
Partner with customers for innovation eCommerce paper-based solution MailerBAG ● Innovative paper-based eCommerce mailer o Complementing corrugated packaging portfolio o Fully recyclable o Easy to open and convenient return features ● Investing to upscale production to 350 million bags per annum to
Slide 28: Eliminating polystyrene, optimising transport
Partner with customers for innovation Eliminating polystyrene, optimising transport MonoCorr Box ● 100% corrugated, 100% recyclable ● Solution for global shipping of Warmhaus boilers ● Eliminates polystyrene inserts ● Optimises transport o Corrugated inserts use 90% less space when sent to customer
Slide 29: Paper-based packets for Unilever's Colman's Meal Makers
Partner with customers for innovation Paper-based packets for Unilever’s Colman’s Meal Makers Close collaboration with blue chip customer Functional paper solution: 85% paper with ultra thin functional plastic layer Eliminates aluminium and reduces plastic content New recyclable solution replacing p
Slide 30: Fit-for-purpose recyclable flexible plastic packaging
Partner with customers for innovation Fit-for-purpose recyclable flexible plastic packaging Primary packaging weight Based on packaging 400 grams of pasta sauce1 Pouch 10 grams BarrierPack EnvelopeForm 54 Metal can grams ● Protect and preserve products 216 ● Extend shelf-life Glass jar grams ● Preve
Slide 31: Summary and Q&A
Slide 32: Delivering strongly – positioned for sustainable growth
Delivering strongly – positioned for sustainable growth 32
Slide 33: Appendices
Slide 34: Mondi at a glance (2020)
Mondi at a glance (2020) Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper Segment €1,879m €2,667m €801m €1,485m revenue1 (27%) (39%) (12%) (22%) Underlying €518 million €519 million €80 million €266 million EBITDA ROCE 22.5% 14.5% 7.5% 11.3% Products End uses Consumer
Slide 35: Leading market positions
Leading market positions virgin containerboard kraft paper producer commercial release liner uncoated fine paper supplier producer in Europe globally producer in Europe in Europe (including Russia) containerboard producer paper bag producer in extrusion coatings uncoated fine paper in emerging Europ
Slide 36: Mondi Action Plan 2030 commitments
Mondi Action Plan 2030 commitments 36 For more details please visit: www.mondigroup.com/MAP2030
Slide 37: Mondi recognised as a leader in sustainability
Mondi recognised as a leader in sustainability A few external benchmark examples: Top quartile in the Paper & Forest One of only 10 Products industry Top 1% companies globally with a in our sector for 5 CDP Triple A rating consecutive years Making a real contribution to the UN SDGs 37
Slide 38: A unique platform to deliver
A unique platform to deliver High Renewable Low High Recyclable Low Low Barrier functionality High 2 Moisture Grease Mineral Oil Gas Added Barrier Aluminium Paper barriers Material films foil 38
Slide 39: A few examples
– a few examples: A fully corrugated alternative to plastic fruit A 100% renewable, recyclable and highly punnets and plastic foil wrapping protective corrugated alternative to plastic mailers that use bubble foil protective padding A 100% recyclable paper rice bag that replaces A fully recyclable,
Slide 40: Pulp and paper capital investment programme
Pulp and paper capital investment programme Expected to increase pulp and paper production by around 8% when in full operation Ramping up new Ramping up speciality kraft Debottlenecking Modernisation of Kuopio debottlenecking containerboard machine at paper production in Štětí of Syktyvkar Richards
Slide 41: Integrated value chain (2020)
Integrated value chain (2020) Pulp3 0.5 mt Mondi managed forests Internally procured wood1 Pulp Annual allowable cut 4 million m3 4.5 mt Externally procured wood Containerboard3 9 million m3 14 million m3 1.6 mt Corrugated solutions 1.8 bn m2 Paper for Containerboard 2.5 mt Box plants recycling 1.3
Slide 42: Our cash flow priorities remain unchanged
Our cash flow priorities remain unchanged Maintain our strong and stable financial position and investment grade credit metrics Free cash Grow through selective capital investment opportunities flow priorities Support payment of dividends to our shareholders Evaluate growth opportunities through M&A
Slide 43: Dividends in line with our policy
Dividends in line with our policy Dividends declared euro cents per share 76 62 60 57 57 3.0x 2.5x 2.4x 2.4x 2.2x 19.00 20.00 2016 2017¹ 2018 2019 2020 2021 Interim dividend Final dividend Dividend cover 1. Excludes the 2017 special dividend of 100 euro cents per share Dividend policy unchanged Targ
Slide 44: Key paper and pulp European selling prices
Key paper and pulp European selling prices Containerboard and OCC Sack kraft paper Pulp and UFP €/tonne Prices indexed to June 2016 €/tonne 950 1.30 900 900 200 1.25 850 800 1.20 160 800 1.15 700 750 Containerboard 1.10 120 OCC 1.05 700 600 80 1.00 650 500 0.95 600 40 0.90 400 0.85 550 300 0 0.80 50
Slide 45: Input costs
Input costs Variable costs € million 2,100 1,400 700 0 H1 2020 H2 2020 H1 2021 Pulp Paper Wood Paper for recycling Energy Chemicals Plastics Other variable costs 45
Slide 46: Fixed costs
Fixed costs Fixed costs (excluding special items) € million 1,200 25.0% 24.0% 23.8% 900 600 300 0 H1 2020 H2 2020 H1 2021 Depreciation, amortisation and impairments Other net operating expenses Personnel costs Maintenance and other indirect expenses Fixed costs excluding depreciation, amortisation a
Slide 47: Production volumes
Production volumes % change % change H1 2020 H2 2020 H1 2021 vs H1 2020 vs H2 2020 Containerboard '000 tonnes 1,304 1,221 1,328 2% 9% Kraft paper '000 tonnes 595 550 627 5% 14% Uncoated fine paper '000 tonnes 706 716 789 12% 10% Newsprint '000 tonnes 86 83 95 10% 14% Pulp '000 tonnes 2,322 2,162 2,2
Slide 48: Exchange rates
Exchange rates % change % change H1 2020 H2 2020 H1 2021 vs H1 20201 vs H2 20201 Closing rates against the euro South African rand 19.44 18.02 17.01 13% 6% Czech koruna 26.74 26.24 25.49 5% 3% Polish zloty 4.46 4.56 4.52 (1%) 1% Pound sterling 0.91 0.90 0.86 5% 4% Russian rouble 79.63 91.47 86.77 (9
Slide 49: Sources and definitions
Sources and definitions Mondi region definitions Europe – Europe including Russia and Turkey Emerging Europe – Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Macedonia, Malta, Moldova, Montenegro
Slide 50: Emondi
Emondi