Slide 1: 2021 Full Year Results Presentation
2021 Full Year Results Presentation 3 March 2022
Slide 2: Delivering strongly, accelerating growth in sustainable packaging
Delivering strongly, accelerating growth in sustainable packaging ● Integration, agility and collaboration – ● Successful execution of investment ● Recognised leader in sustainability delivering for customers projects ● Unique portfolio of innovative ● Growing volumes, increasing prices ● Ambitious
Slide 3: Delivering on our strategy
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Slide 4: Strong financial performance
Strong financial performance Group revenue Underlying EBITDA ROCE Dividend € million € million % € cents per share +170 bps +16% +8% +11% 6,663 7,723 1,353 1,503 15.2 16.9 60 65 2020 2021 2020 2021 2020 2021 2020 2021 Underlying EBITDA up €150 million, second half up 29% 4
Slide 5: Volume growth and higher prices outpacing cost pressures
Volume growth and higher prices outpacing cost pressures Underlying EBITDA development € million 804 (668) (63) (34) 111 1,503 1,353 2020 Sales Sales Costs Currency Forestry 2021 volumes prices effects fair value movement 5
Slide 6: Good cash generation while investing for growth
Good cash generation while investing for growth Movement in net debt € million (1,503) 48 298 268 83 573 1,791 1,763 205 Net debt at Underlying Working Capital Acquisition of Tax and Dividends Other Net debt at 31 December EBITDA capital expenditure Olmuksan interest 31 December 2020 2021 Supporting
Slide 7: Robust financial position providing strategic flexibility
Robust financial position providing strategic flexibility Net debt € million and ratio 1.3x 1.3x 1.3x 1.2x 1.0x ● Signed €750 million Sustainability-Linked Loan ● Liquidity of around €1.3 billion 1,532 2,220 2,207 1,791 1,763 1 2017 2018 2019 2020 2021 Net debt to underlying EBITDA ● Average maturit
Slide 8: Sale of Personal Care Components business (PCC)
Sale of Personal Care Components business (PCC) ● Agreed sale of PCC, part of Engineered Materials (EM), in February 2022 for enterprise value of €615 million ● Completion expected in H2 2022 ● Decision regarding use of net cash proceeds from sale to be taken post completion ● Functional Paper and F
Slide 9: Disciplined capital allocation
Disciplined capital allocation Growing in packaging 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 s
Slide 10: Operational review
Operational review divider 10
Slide 11: Corrugated Packaging: Industry-leading performance, margins and returns
Corrugated Packaging % of Group Industry-leading performance, margins and returns EBITDA Underlying EBITDA and ROCE € million and % 26.1% ● Strong sales volume growth – Corrugated Solutions volumes up 13% 22.5% 670 o Growth across all end-uses, notably eCommerce and FMCG o Underpinned by our innovat
Slide 12: Flexible Packaging: Leveraging unique platform to drive growth
Flexible Packaging % of Group Leveraging unique platform to drive growth EBITDA Underlying EBITDA and ROCE € million and % 15.0% ● Strong volume growth across end uses 14.5% o Kraft paper volumes up, notably speciality grades o Paper bags volumes up 9%. eCommerce bags 3% 519 526 of total volumes ● S
Slide 13: Engineered Materials: Performance stabilised
Engineered Materials % of Group Performance stabilised EBITDA Underlying EBITDA and ROCE € million and % ● Performance stabilised in line with our expectations 7.5% ● Completed transformation of Personal Care Components 7.4% (PCC) in response to declining volumes as a key product matures 80 o Realig
Slide 14: Uncoated Fine Paper: Improved trading, supplier of choice
Uncoated Fine Paper % of Group Improved trading, supplier of choice EBITDA Underlying EBITDA and ROCE € million and % 11.9% ● Market share gains across all three core regions 11.3% ● Strong underlying performance with higher volumes and prices offsetting input costs 266 270 ● Price increases impleme
Slide 15: Delivering on our strategy
Slide 16: We have delivered strong value accretion…
We have delivered strong value accretion… Underlying EBITDA ROCE Underlying EPS Cash flow generation € million % € cents per share € million +56% +190 bps +126% +56% 964 1,503 15.0 16.9 68.1 154.0 648 1,011 2011 2021 2011 2021 2011 2021 2011 2021 16
Slide 17: … balancing investing for growth and distributing returns
… balancing investing for growth and distributing returns Cash flow deployment in the last 10 years € billion (2012 – 2021) Strong cash Consistently Seizing Shareholder generation investing opportunities distributions at the right value (5.6) 9.8 (2.2) (2.9) 0.9 Cash flow Capital Acquisitions Divide
Slide 18: Cost-advantaged assets and high-performance culture
Cost-advantaged assets and high-performance culture Mondi capacity by quartile of relevant industry cost curve1 Productivity increases2 (%) 10 years (2012 – 2021) 1st quartile 2nd quartile 40% 22% 10% Pulp & paper Paper bags Corrugated solutions in the 1st or 2nd cost quartile 1 Source RISI 2Product
Slide 19: Our long-standing focus on sustainability over two decades
Our long-standing focus on sustainability over two decades reduction since 20051 reduction since 20051 reduction since 20041 kg per tonne of saleable production TRCR2 (per 200,000 hours worked) tonne per tonne of saleable production Circular driven solutions Created by empowered people Taking action
Slide 20: Leadership widely recognised and valued by our customers
Leadership widely recognised and valued by our customers Top 1 Top #1 1% of only 14 quartile in the paper & forestry in our sector companies in the for 5 consecutive paper & forest industry globally with years a CDP products industry Triple A rating Sustainalytics 20
Slide 21: And taking action for the future
And taking action for the future ● Mondi Action Plan 2030 – our sustainability framework for the next decade ● Committed to Net-Zero by 2050, in line with the new Science Based Targets initiative Net-Zero standard (1.5°C scenario) 21
Slide 22: A strong track record of growth
A strong track record of growth Five-year production volume CAGR1 Y-o-y production volume growth (like-for-like) 2017 – 2021 2020 – 2021 13% 9% 9% 9% 8% 6% 4% 4% 3% 2% Corrugated Containerboard Kraft paper Paper bags Consumer Corrugated Containerboard Kraft paper Paper bags Consumer solutions flexib
Slide 23: And our packaging markets continue to grow
And our packaging markets continue to grow ~2-4% expected medium-term European market growth Underpinned by structural growth drivers of eCommerce and demand for sustainable packaging 23
Slide 24: Growth in eCommerce expected to continue
Growth in eCommerce expected to continue Appendix? European eCommerce packaging market € billion +5% CAGR +15% CAGR 10 8 6 2019 2021E 2025E Source: Statista, Smithers Pira, Mondi estimate 24
Slide 25: Demand for sustainable packaging is here to stay
Demand for sustainable packaging is here to stay ● Increased awareness ● FMCGs’ and retailers’ public pledges ● 50% of global consumers willing to pay a on sustainable packaging. premium for sustainable packaging1 Committing to: ● Over 70% of global consumers look for less o Eliminate unnecessary pa
Slide 26: Currently €1 billion of expansionary capital projects
Currently €1 billion of expansionary capital projects approved or under advanced evaluation across packaging ● Modernisation and expansion of Kuopio mill - 55,000 ● Advanced evaluation of 200,000 tonne kraft paper tonnes extra saleable production (€125 million) machine, decision in 2022 (around €350
Slide 27: Accelerating growth in packaging through expansionary capital investment programme
Accelerating growth in packaging through expansionary capital investment programme Capital expenditure and % depreciation € million and % ● Track record of consistently investing: 900-1,000 o Driving organic growth Average capex as % of depreciation 160% 700-800 o Enhancing product offering o Streng
Slide 28: Our customer-centric approach to sustainable packaging
Our customer-centric approach to sustainable packaging 28
Slide 29: Innovating to replace plastic with functional papers for our customers
Innovating to replace plastic with functional papers for our customers ● Fully recyclable paper-based solutions ● Using customers’ existing machinery and supporting their sustainability goals ● Comparable shelf life performance ● Applications include dry, frozen and fresh food, confectionery and oth
Slide 30: Innovating to develop sustainable, cost-effective solutions for eCommerce
Innovating to develop sustainable, cost-effective solutions for eCommerce ● Collaborating with high-growth customers ● Reducing packaging ● Increasing recyclability ● Optimising material usage ● Minimising logistics costs ● Novel temperature delivery solution – ● 100% paper-based, letterbox-sized, ●
Slide 31: And innovating to develop recyclable, material-efficient packaging
And innovating to develop recyclable, material-efficient packaging Mono-material flexible packaging benefits: ● Helping reduce food waste ● Recyclable ● Low-carbon footprint ● High material efficiency; reducing plastic use compared to rigid packaging • Recyclable detergent solution • Recyclable, hig
Slide 32: Summary
Summary Delivering strongly, accelerating growth in sustainable packaging 32
Slide 33: Q&A
Slide 34: Appendices
Slide 35: Mondi at a glance (2021)
Mondi at a glance (2021) Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper Segment €2,510m €2,889m €876m €1,652m revenue1 (32%) (36%) (11%) (21%) Underlying €670m €526m €71m €270m EBITDA ROCE 26.1% 15.0% 7.4% 11.9% Products Consumer Consumer Consumer End uses and retai
Slide 36: 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 bags producer in extrusion coatings uncoated fine paper in emerging Euro
Slide 37: Technical guidance
Technical guidance 2022 Guidance Incremental underlying EBITDA contribution from major capital investments ~ €50 million Capital expenditure €700 – 800 million Depreciation and amortisation €450 – 500 million Estimated impact of planned mill maintenance shuts ~ €110 million Working capital as a % of
Slide 38: Our strategic framework
Our strategic framework continues to be at the centre of our strategy 38
Slide 39: Mondi Action Plan 2030, consolidated performance in 2021
Mondi Action Plan 2030, consolidated performance in 2021 39
Slide 40: Customer-centric approach
We offer unique solutions ranging from renewable paper to to sustainable solutions Customer-centric approach recyclable plastic High Renewable Low High Recyclable Low Low Barrier functionality High Moisture Grease Mineral Oil Gas Added Barrier Aluminium Paper barriers Material films foil 40
Slide 41: A few examples
– a few examples: ThermoFORMing A fully-recyclable mono-material EcoVantage high barrier film which has a Replacing plastic bags with significantly lower carbon sustainable and efficient paper footprint compared to existing alternatives solutions PerFORMing Monoloop MonoCorr Box Formable paper-based
Slide 42: Alternative to plastic pallet wrapping
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 10,000 tonnes of plastic for every 1% of
Slide 43: Integrated value chain (2021)
Integrated value chain (2021) Pulp3 0.2 mt Mondi managed forests Internally procured wood1 Pulp Annual allowable cut 3.7 million m3 4.4 mt Externally procured wood Containerboard3 9 million m3 13.6 million m3 1.5 mt Corrugated solutions 2.2 bn m2 Paper for Containerboard 2.7 mt Box plants recycling
Slide 44: Russia and Ukraine overview
Russia and Ukraine overview Russia • Around 12% of the Group’s revenue by location of production • Around 20% of the Group’s underlying EBITDA over the last three years • 5,300 colleagues. Four production locations: o Syktyvkar (Komi Republic) – high-margin, cost-competitive, integrated pulp, packag
Slide 45: Input costs
Input costs Input costs € million 4,000 3,000 2,000 1,000 0 2017 2018 2019 2020 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 2,500 24.5% 23.1% 23.4% 22.1% 22.2% 2,000 1,500 1,000 500 0 2017 2018 2019 2020 2021 Depreciation, amortisation and impairments Other net operating expenses Personnel costs Maintenance and other indirect expenses Fixed costs excluding depre
Slide 47: Production volumes
Production volumes 2021 2020 % change Containerboard '000 tonnes 2,724 2,525 8% Kraft paper '000 tonnes 1,253 1,145 9% Uncoated fine paper '000 tonnes 1,564 1,422 10% Newsprint '000 tonnes 164 169 (3%) Pulp '000 tonnes 4,432 4,484 (1%) Internal consumption '000 tonnes 3,953 3,767 5% Market pulp '000
Slide 48: Exchange rates
Exchange rates 2021 2020 % change1 Closing rates against the euro South African rand 18.06 18.02 - Czech koruna 24.86 26.24 5% Polish zloty 4.60 4.56 (1%) Pound sterling 0.84 0.90 7% Russian rouble 85.30 91.47 7% Turkish lira 15.23 9.11 (67%) US dollar 1.13 1.23 8% Average rates against the euro Sou
Slide 49: 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 December 2016 €/tonne 1,100 1.40 900 200 1,000 1.30 800 160 900 1.20 700 Containerboard 120 800 OCC 1.10 600 80 700 500 1.00 40 0.90 600 400 300 0 0.80 500 Dec Dec Dec Dec Dec De
Slide 50: 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 51: Mondi: 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 52: Emondi
Emondi