Half-yearly Report

5th Aug 2009 07:00

Mondi Limited(Incorporated in the Republic of South Africa)(Registration number: 1967/013038/06)JSE share code: MND ISIN: ZAE000097051 Mondi plc(Incorporated in England and Wales)(Registration 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 JSE listings requirements and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority.

5 August 2009

HALF-YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2009

Financial summary1

EUR million, except for percentages and Six months Six months

Half-yearper share measures June 2009 June 2008 change % Group revenue 2,614 3,263 -20 EBITDA 308 456 -32

Underlying operating profit 138 263

-48

Underlying profit before tax 81 210

-61

Reported (loss)/profit before tax (1) 171

-100

Basic (loss)/earnings per share (EUR cents

per share) (7.1) 17.1 -142

Underlying earnings per share (EUR cents

per share) 8.3 24.8 -67

Headline (loss)/earnings per share (EUR

cents per share) (0.8) 18.3 -104

Interim dividend per share (EUR cents per

share) 2.5 7.7 -68 Cash inflow from operations 392 310 26 Net debt 1,661 1,655 0 Group ROCE 7.4% 11.1% -33 Key points

Cash inflow from operations up 26% at EUR392 million

A strong performance from the European uncoated fine paper business

Successful execution of a number of restructuring initiatives

Well on track to deliver full-year cost savings target of EUR180 million - EUR109 million to date

Demonstrated excellent financial discipline with net debt at EUR1.66 billion (EUR29 million reduction since 31 December 2008)

Over EUR1 billion of undrawn committed facilities as at end of June

Major projects in Poland and Russia are on schedule and within budgeted capital cost

Interim dividend of 2.5 euro cents per share

David Hathorn, Mondi Group chief executive, said:

"This is a resilient performance in the face of a very challenging trading environment, supported by the strong performance of our European uncoated fine paper business.

Particularly pleasing is the strong cashflow generation, evidenced by the factthat we achieved a reduction in net debt for the period despite funding afurther circa EUR179 million investment in our two major projects in Poland andRussia. Similarly, we continue to make good progress in improving efficienciesand reducing costs, in part by exiting higher-cost operations that we believewill not prosper through the economic cycle. The benefits of the actions taken to restructure the cost base are expected tocontinue to flow through in the second half. Order inflows in most of our keyproduct areas have improved following a weak start to the year, albeit theyremain well down on the prior year. However, the full impact of the pricedeclines in our main products over the course of the first half is now beingfelt. This is likely to provide further challenges in the near term. Whileprices appear to be bottoming following some industry rationalisation, theimpact of new capacity expected to come on to the market in the second half

isuncertain.

We believe the decisive actions taken to reduce capacity, lower the overall cost base and optimise cash flows, coupled with our high-quality, low-cost asset base leave us well positioned to benefit when market conditions improve."

1 See glossary of financial terms

Contact detailsMondi Group David Hathorn +27 (0)11 994 5418 Andrew King +27 (0)11 994 5415 Lora Rossler +27 (0)31 451 2040 / +27 (0)83 627 0292 Financial Dynamics Sophie Kernon +44 20 7269 7225 Louise Brugman +27 (0)11 214 2415 / +27 (0)83 504 1186

Conference call dial-in and audio cast details

Please see below details of our dial-in conference call and audio cast that will be held at 10 00 (UK) and 11 00 (SA).

The conference call dial-in numbers are:

South Africa 0800 200 648 (toll-free)UK 0800 917 7042 (toll-free)Europe & Other 0800 246 78 700 (toll-free)

An online audio cast facility will be available via: www.mondigroup.com/ HYResults09

Password: HYResults09. The presentation will be available online via the abovewebsite address before the audio cast commences. Questions can be submitted viathe dial-in conference call or by e-mail via the audio cast.

Should you have any issues on the day with accessing the dial-in conference call, please call +27 (0)11 535 3600.

Should you have any issues on the day with accessing the audio cast, please e-mail [email protected] you will be contacted immediately.

An audio recording of the presentation will be available on Mondi's website during the afternoon of 5 August 2009.

Editors' notesMondi is an international paper and packaging group and in 2008 had revenues ofEUR6.3 billion. Its key operations and interests are in western Europe, emergingEurope, Russia and South Africa.

The Group is principally involved in the manufacture of packaging paper and converted packaging products; uncoated fine paper; and speciality products and processes, including coating, release liner and consumer flexibles.

Mondi is fully integrated across the paper and packaging process, from the growing of wood and manufacture of pulp and paper (including recycled paper) to the converting of packaging papers into corrugated packaging and industrial bags.

Mondi has production operations across 35 countries and had an average of 33,400 employees in 2008.

Forward-looking statementsThis document includes forward-looking statements. All statements other thanstatements of historical facts included herein, including, without limitation,those regarding Mondi's financial position, business strategy, plans andobjectives of management for future operations, are forward-looking statements.Such forward-looking statements involve known and unknown risks, uncertaintiesand other factors which may cause the actual results, performance orachievements of Mondi, or industry results, to be materially different from anyfuture results, performance or achievements expressed or implied by suchforward-looking statements. Such forward-looking statements are based onnumerous assumptions regarding Mondi's present and future business strategiesand the environment in which Mondi will operate in the future. Among theimportant factors that could cause Mondi's actual results, performance orachievements to differ materially from those in the forward-looking statementsinclude, but are not limited to, those discussed under Principal risks anduncertainties, below. These forward-looking statements speak only as of thedate on which they are made. Mondi expressly disclaims any obligation orundertaking to release publicly any updates or revisions to any forward-lookingstatement contained herein to reflect any change in Mondi's expectations withregard thereto or any change in events, conditions or circumstances on whichany such statement is based. Group performance overviewThe Group's underlying operating profit was 48% down on the comparable periodin the prior year, reflecting a continuation of the difficult tradingconditions brought on by the general economic slowdown. Order inflows for theGroup's major products have recovered from the lows reached in the December toJanuary period, albeit they remain well down on the prior year. Prices have,however, declined during the period. While the European businesses were the first to be impacted by the economicslowdown, with a sharp fall in profitability in the fourth quarter of 2008, theprofitability of the South African operations only began to decline during thecurrent period on the back of softer volumes and reduced export prices. The Group continues to make good progress on the various initiatives taken inresponse to the downturn, including delivering on the EUR180 million costreduction programme announced at the 2008 full-year results in February (EUR109million delivered year-to-date), exiting various higher-cost operations,focusing on working capital management and reducing capital expenditure. Theseefforts build on Mondi's competitive advantages, and ensure the Group remainswell positioned to benefit when market conditions improve. The Group remains in a sound financial position, with net debt at the end ofJune 2009 of EUR1.66 billion, a decrease of around EUR29 million on the position atthe end of December 2008. Taking into consideration a further circa EUR179million spent on the two major capital projects in Poland and Russia in theperiod, this outcome is testament to the strong focus on cash flowoptimisation. At the end of June 2009, the Group had just over EUR1 billion ofundrawn committed debt facilities.

Europe & International Division

Six months Six months Half-year change % EUR million June 2009 June 2008 Segment revenue 2,063 2,742 -25

- of which inter-segment revenue 53 81

-35 EBITDA 238 364 -35 Underlying operating profit 108 215 -50 Uncoated Fine Paper 71 69 +3 Corrugated 1 37 -97 Bags & Specialities 36 109 -67 Capital expenditure1 272 260 +5 Net segment assets 3,620 4,166 -13

Return on capital employed (%)2 7.3% 12.0%

-39

1Capital expenditure is cash payments and excludes business combinations

2 Return on capital employed (%) is calculated based on the trailing 12 months data

Underlying operating profit of EUR108 million was 50% lower than the comparableperiod last year, although the trend was up on a very weak fourth quarter of2008, driven by better performances from Bags & Specialities and Uncoated FinePaper. To balance weak demand across all businesses, around 163,000 tonnes ofmarket-related downtime was taken in the first half, representing around 8% ofcapacity in the period. Encouragingly, market-related downtime taken in thesecond quarter of 2009 was significantly below that of the first quarter(44,000 tonnes versus 119,000 tonnes), reflecting a steady pickup in orderinflows from the lows reached over the turn of the year. Disappointingly,selling prices declined in all major grades, under pressure from the slowdownin demand coupled with insufficient supply-side response. There has been someoffset from decreasing input costs, including wood, recovered paper, chemicalsand other variable costs, although many of these are now showing signs ofstabilising. Some input costs have increased since the beginning of the year,notably recovered paper. The restructuring actions the Group has taken inexiting higher cost-capacity are helping to offset the revenue pressures whilealso contributing to a more balanced market. Underlying operating profit in the Uncoated Fine Paper Business was up EUR2million on the comparable period at EUR71 million and up around EUR14 million onthe second half of 2008. This represents a very strong result in the currenteconomic environment and reinforces the strength of the Group's low-cost assetbase and favourable market positioning. While order inflows for Europeanproducers as a whole are down around 11% versus the comparable period, theGroup has been significantly less impacted due to its greater exposure to thecut-size product segment and, geographically, to emerging Europe, both marketsegments that have proved more resilient to the economic downturn. In Russia,where management estimates that overall demand is down by similar levels tothat seen in Europe, as a domestic producer the business has been able tomaintain volumes at the expense of importers. Results from the Russianoperation were particularly strong, with marginally improved domestic sellingprices supported by good cost control. Combined with decreasing pulp inputcosts at the non-integrated facilities and cost-reduction initiatives acrossthe business, this more than offset the impact of lower European selling prices(office paper down 4% since the year end). In the Corrugated Business trading remains extremely challenging. The businessdelivered a marginal underlying operating profit, significantly down on the EUR37million achieved in the comparable period. Weak demand coupled withinsufficient supply-side response put pressure on containerboard prices.Average recycled containerboard prices were down around 36% on the comparableperiod. At the end of June 2009 prices were down around 27% on those inDecember 2008. Similarly, virgin containerboard prices are down around 20%since the beginning of the year, driven downwards by the increased substitutionthreat caused by lower recycled containerboard prices. Results from ourimportant Polish operations continued to be impacted by the relatively strongPolish zloty as the business delivered into forward currency contracts takenout under the Group's rolling six month currency hedging programme. Under thisprogramme the weakening of the Polish zloty seen at the end of 2008 and intoearly 2009 only started to benefit the business late in the second quarter.Converted box prices have been impacted by the reduction in paper prices. In the Bags & Specialities Business underlying operating profit was sharplydown on a strong comparable period a year ago. Pleasingly, the trend inunderlying operating profit is up on a very weak fourth quarter of 2008 onbetter volumes, strong cost control and a good performance from the consumerflexibles segment. However, the business continued to be affected by weakyear-on-year demand in kraft paper and industrial bags, impacting both volumesand pricing. Significant market-related downtime of around 86,000 tonnes wastaken in the period to balance inventories, although encouragingly this waspredominantly in the first quarter as the market stabilised following the lowsreached over the December 2008-January 2009 period, when destocking appeared tobe at its height. The previously announced mothballing of the Dynas PM5 kraftpaper machine has been delayed until the end of the year due to stronger thananticipated seasonal demand. Mothballing of the Stambolijski kraft paper millbecame effective in May. The expected effect of these actions will be to reducethe Group's fixed cost base and ensure the business is well positioned to facethe challenges of a lower demand environment. Profitability in the SpecialitiesBusiness unit has improved since the second half of 2008 driven by resilientdemand, lower plastic resin input costs and stable pricing. South AfricaDivision Six months Six months Half-year change % EUR million June 2009 June 2008 Segment revenue 249 274 -9

- of which inter-segment revenue 113 174

-35 EBITDA 48 67 -28 Underlying operating profit 28 45 -38 Uncoated Fine Paper 13 30 -57 Containerboard 15 15 0 Capital expenditure1 13 23 -43 Net segment assets 868 789 10

Return on capital employed (%)2 13.5% 10.6%

27

1Capital expenditure is cash payments and excludes business combinations

2 Return on capital employed (%) is calculated based on the trailing 12 months data

First half underlying operating profit in the South Africa Division was 38%below the comparable period last year, impacted by lower pulp, woodchip anduncoated fine paper export prices together with lower woodchip and uncoatedfine paper volumes. Significant market-related downtime in uncoated fine paperproduction of 62,000 tonnes was taken in the period to balance inventories.This in turn led to an increase in sales of market pulp as the Richards Baypulp mill continued to run at full capacity. The domestic prices for uncoatedfine paper cut-size continue to hold up, although there are signs of softeningvolumes. Similarly, open market pulp prices appear to be increasing, albeit offlow levels (30% lower than last year). In response to the continued difficulttrading conditions, in particular the weak export sales margins on uncoatedfine paper due to a combination of the strong local currency and softeningexport prices, the proposed mothballing of the 120,000 tonnes per annum PM32 atMerebank in the second half was announced. This is expected to result inannualised cash cost savings of around EUR7 million while not significantlyaffecting production volumes from current levels. In April 2009 agreement was reached on the settlement of a further seven landclaims in South Africa. Structured around the initial Mondi land claims modelas a sale and leaseback agreement, Mondi retains ownership of the forests whilemeeting the needs of the land restitution process in South Africa.

A recent wage dispute that led to industry-wide strike action affecting all South African mills was settled on 29 July 2009. All sites have since returned to normal operations, with no significant impact to Group profitability.

Mondi Packaging South Africa (MPSA)

Six months Six months Half-year change % EUR million June 2009 June 2008 Segment revenue 227 223 2

- of which inter-segment revenue 13 14

-7 EBITDA 23 27 -15 Underlying operating profit 11 14 -21 Capital expenditure1 6 25 -76 Net segment assets 342 308 11

Return on capital employed (%)2 7.3% 11.1%

-34

1Capital expenditure is cash payments and excludes business combinations

2 Return on capital employed (%) is calculated based on the trailing 12 months data

Underlying operating profit is EUR3 million below the comparable period last yearas lower sales volumes and increasing input costs are only partially offset byhigher selling prices and additional cost savings. Sales volumes are downacross all business units although revenues are above the comparable period asbusinesses benefited from the price increases implemented in the fourth quarterof last year. The softening volumes are starting to lead to pressure for pricereductions. Market related downtime of 33,000 tonnes was taken in the period tobalance inventories. Merchant and Newsprint Six months Six months Half-year change % EUR million June 2009 June 2008 Segment revenue 254 293 -13

- of which inter-segment revenue - -

0 EBITDA 16 18 -11 Underlying operating profit 8 10 -20 Capital expenditure1 2 5 -60 Net segment assets 218 248 -13

Return on capital employed (%)2 2.9% 15.0%

-81

1Capital expenditure is cash payments and excludes business combinations

2 Return on capital employed (%) is calculated based on the trailing 12 months data

To date Europapier is performing well below the comparable period in the prioryear due to lower sales volumes and prices, exacerbated by the weakening ofcertain of the emerging European currencies in which it trades. Mondi ShandukaNewsprint continues to hold up well, although there is some evidence ofsoftening demand and pricing pressures in its domestic market. AylesfordNewsprint has benefited from improved pricing on its annual contract business(up around 20% in sterling terms), although demand weakness from significantlyreduced advertising spend and rising input costs remain a concern.

Restructuring

The restructuring actions previously announced in response to the economic downturn are on schedule. We have completed the divestment of the four remaining corrugated converting operations in France for total proceeds of approximately EUR51 million, thereby completing our withdrawal from this market.

Restructuring and impairment costs recorded as special items in the first halfof 2009 amounted to EUR79 million. The restructuring of the Turkish corrugatedbusiness, the coatings business in Finland and the UK, and the consumerflexibles business in Austria are well under way. Furthermore, we havecompleted the closure of a corrugated plant in the UK and will complete theclosure of four bag-converting plants across Europe by the end of the thirdquarter. As mentioned, the mothballing of the Stambolijski mill is nowcomplete, while the process to mothball the Dynas PM5 paper machine has beendelayed to the end of the year. The sale of the Italian recycled containerboardplant Cartonstrong (100,000 tonnes per annum capacity) and related sheet feederwas completed at the end of July.

After the period end we announced the proposed mothballing of the 120,000 tonnes per annum PM32 paper machine at Merebank as well as the reorganisation of its newsprint and paper production operations.

These closures will have seen Mondi exit around 700,000 tonnes of higher-costpaper capacity in Europe (around 16% of the Group's European paper productioncapacity) and around 8% (120,000 tonnes) of its South African paper productioncapacity in 2008/2009.

The above measures are expected to have the effect of adjusting the Group'sproduction capacity in light of the changing demand environment, lowering itsoverall cost base and streamlining its asset portfolio to focus on thosebusinesses that we believe provide Mondi with sustainable competitive advantagein its respective markets. Major projects

We have made good progress in the development of our two major projects inPoland and Russia, which will serve to further secure the Group's position as acost leader in its chosen markets. The construction of the new 470,000-tonnerecycled containerboard machine and related box plant at Swiecie in Poland, ata total cost of EUR350 million, is progressing well. Mondi remains on track forcompletion in the second half of 2009 within the budgeted cost. We anticipatethat this machine will have the lowest operating cost of its type, with up toaround 50% of its offtake secured by physical integration with the surroundingbox plant network. The project to modernise the Russian mill at a total cost ofEUR525 million is also making good progress and remains on track for completionwithin the budgeted cost in 2010. The key objectives of the project are tolower the Group's cost base in Russia, improve efficiency, increase energyproduction and revenue by selling surplus energy to the grid as well asproviding limited extra capacity (both pulp and paper) for the domestic market.As such, the market risk on the project is relatively limited.

The previously announced initiatives to curtail capital expenditure outside of the two major projects (new capital expenditure approvals limited to 40% of depreciation) are ongoing with benefits in cash flows already evident.

Input costs and currency

There has been easing of key input costs, notably wood, recovered paper, pulpand chemicals since the comparable period in the prior year. However, some keyinput costs have already risen since the beginning of this year. Recoveredpaper, while down around 60% on average since the comparable period last year,has risen around 40% since the start of the year. Importantly, results continueto benefit from Mondi's ongoing focus on cost reductions, restructuring andproductivity improvements, all of which help to mitigate the impact of theweaker markets. Mondi remains on track to achieve the cost savings target setfor the year of EUR180 million. EUR109 million of cost savings were delivered inthe first half. The weakening of the major eastern European currencies witnessed towards theend of 2008 and into early 2009, notably the Polish zloty and Czech koruna,will have a positive impact on the results of our eastern European productionbase, although the effect is delayed due to the Group's rolling six-monthcurrency hedging programme. Conversely, the recent strengthening of the SouthAfrican rand is putting pressure on margins on export sales from the South

Africa Division. FINANCIAL REVIEW

Special items (refer to note 5 of the condensed financial statements)

In aggregate, pre tax special items amounted to a charge of EUR82 million.

An operating special item charge of EUR79 million was recognised, principally comprising:

asset impairment costs of EUR36 million;

closure and restructuring costs of EUR40 million; and

charges related to arrangements put in place for senior executives following the demerger from Anglo American plc in July 2007 of EUR3 million.

The asset impairments relate primarily to the write-down of the PM32 papermachine at Merebank and converting operations in the Corrugated and Bags &Specialities business units that have been restructured or closed. Other costsrelated to the mothballing of PM32 will be recognised mainly in the second

halfof this year. Costs related to the mothballing of the Stambolijski mill and the closure orrestructuring of the various converting operations represent the bulk of the EUR40 million closure and restructuring charge. A non-operating special item charge of EUR3 million was recognised, which mainlycomprises the net profit on the sale of four corrugated operations in France (EUR5 million profit) and the impairment of the assets in corrugated operationsheld for sale (circa EUR8 million charge).

Finance costs

Net finance charges of EUR58 million were EUR3 million higher than the comparableperiod due mainly to higher average interest rates as the proportion of debtdenominated in higher-yielding currencies increased.

Taxation

The effective tax rate before special items of 34% is significantly higher thanthe prior period (29%) due primarily to an increase in non-recognised assessedlosses as a consequence of the decline in profitability. There is only minortax relief on special items. Minority interestsMinority interests for the period were EUR11 million lower than the comparableperiod, as earnings were down at the significant operations where there arenon-controlling interests, particularly at Swiecie in Poland within the Europe& International Division. Cash flow and borrowingsEBITDA of EUR308 million in the period was 32%, or EUR148 million, lower than 2008,reflecting the more difficult trading environment. Cash inflows from operationsof EUR392 million were EUR82 million up on the comparable period, mainly due toworking capital inflows of EUR99 million versus an outflow of EUR126 million in thecomparable period. Capital expenditure of EUR116 million (excluding spend on the two major strategicprojects of EUR179 million) was lower than depreciation of EUR170 million,reflecting the decision taken in the fourth quarter of 2008 to limit 2009capital expenditure approvals to below 40% of depreciation. The remainingexpenditure on the two major projects is estimated at EUR332 million. Whilephasing of the capital expenditure outflows on the projects has been adjustedsuch that more than originally planned will be spent in 2010 with some flowthrough to 2011, the bulk will still be spent in 2009.

Treasury and borrowings

Net debt of EUR1,661 million at 30 June 2009 was EUR29 million lower than 31December 2008 and EUR6 million higher than 30 June 2008. Gearing as at 30 June2009 was 37.9% and the net debt to trailing 12 months EBITDA ratio was 2.5. Group liquidity is provided through various committed debt facilities totallingEUR2.8 billion, of which, circa EUR1 billion is currently undrawn. The principaldebt facility is a EUR1.55 billion, syndicated revolving credit facility maturingin June 2012. Despite the unfavourable banking environment the Group has beensuccessful in maintaining the quantum of committed debt facilities available toit since the prior year end through securing an additional R500 million (EUR46million) of committed 3 year amortising term loan facilities and successfullyrolling over most of the smaller facilities maturing in the period. The average maturity of the committed debt facilities is 2.9 years (3.4 yearsat December 2008). Drawn facilities maturing over the next 12 months amount toEUR343 million, the majority of which are expected to be renewed; however, to theextent they are not renewed they can be financed out of existing undrawncommitted facilities (in excess of EUR1 billion at 30 June 2009).

Reclassification of Mondi plc shares

During the period we announced after a constructive dialogue with the SouthAfrican Reserve Bank and Treasury that the Minister of Finance had decided toreclassify the secondary listing of Mondi plc ordinary shares on the JSELimited as domestic assets in the hands of South African investors. It ispleasing to note the subsequent significant narrowing of the price differentialthat had existed between the Mondi plc and Mondi Limited ordinary shares.

Related party transactions

Related party transactions are disclosed in note 17 of the condensed financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

It is in the nature of our business that Mondi is exposed to risks anduncertainties that may have an impact on future performance and financialresults, as well as upon our ability to meet certain social and environmentalobjectives. The Group believes that it has effective systems and controls inplace to manage the key risks identified below. The key risks identified havenot changed significantly from those discussed on pages 22 and 23 of the 2008annual report.

Mondi operates in a highly competitive environment

The markets for paper and packaging products are highly competitive. Similarly,prices of Mondi's key paper grades have experienced substantial fluctuations inthe past. However, Mondi is flexible and responsive to changing market andoperating conditions and the Group's geographic and product diversificationprovides some measure of protection. Uncertain future trading conditions mayhave an impact on the carrying value of goodwill and tangible assets and mayresult in further restructuring activities.

Input costs are subject to significant fluctuations

Materials, energy and consumables used by Mondi include significant amounts ofwood, pulp, recovered paper, packaging papers and chemicals. Increases in thecosts of any of these raw materials, or any difficulties in procuring wood incertain countries, could have an adverse effect on Mondi's business,operational performance or financial condition. However, Mondi's focus onoperational performance and relatively high level of integration and access toits own fibre in Russia and South Africa act to mitigate these risks. It isalso anticipated that the recent successful settlements of land claims in SouthAfrica will provide a framework for settling future forestry land claims withMondi.

Significant capital investments, including acquisitions carry project riskMondi is in the process of completing two significant capital investments toexpand and upgrade existing facilities in Poland and Russia. These projectscarry risks and Mondi has put in place dedicated teams to ensure delivery ofthe projects on time and within budget.

Going concern

The current economic conditions will impact short-term demand growth for ourproducts, as well as place pressure on both customers and suppliers who mayface liquidity issues, and could have an adverse impact on Mondi'sbusiness. Furthermore, the lack of credit availability could impact the Group'sability to effectively execute its strategy. However, Mondi's geographicspread, product diversity and large customer base mitigate these risks. Theproactive initiatives by management in rationalising the business throughcost-cutting, asset closures and divestitures have improved the Group's costposition in its chosen markets. Strong working capital management has resultedin a significant net cash inflow from working capital over the period, whilecapital expenditure programmes have been reduced. The Group meets its funding requirements through a number of loan facilities,the principal one being a EUR1.55 billion, 5 five-year syndicated revolvingcredit facility expiring in June 2012. The availability of these facilities isdependent upon the Group meeting certain financing covenants, mostsignificantly an EBITDA to net debt ratio of 3.5. At the period end this ratiowas 2.5. Mondi had in excess of EUR1 billion of committed debt facilities as at30 June 2009 with an average maturity of 2.9 years. The Group's forecasts and projections, taking account of reasonable possiblechanges in trading performance, show that the Group should be able to operatewithin the level of its current facility and the related covenants.

As a consequence, the directors believe that the Group is well placed to manage its business risks successfully, despite the current uncertain economic outlook.

After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

Accordingly, they continue to adopt the going concern basis in preparing the Half-yearly report and accounts.

DIVIDEND

An interim dividend of 2.5 euro cents per share will be paid on 15 September 2009 to those shareholders on the register of Mondi plc on 28 August 2009.

An equivalent interim dividend will be paid in South African rand on 15 September 2009 to shareholders on the register of Mondi Limited on 28 August 2009.

CURRENT YEAR OUTLOOKThe benefits of the actions taken to restructure the cost base are expected tocontinue to flow through in the second half. Order inflows in most of our keyproduct areas have improved following a weak start to the year, albeit theyremain well down on the prior year. However, the full impact of the pricedeclines in our main products over the course of the first half is now beingfelt. This is likely to provide further challenges in the near term. Whileprices appear to be bottoming following some industry rationalisation, theimpact of new capacity expected to come onto the market in the second half

isuncertain.

We believe the decisive actions taken to reduce capacity, lower the overall cost base and optimise cash flows, coupled with our high-quality, low-cost asset base leave us well positioned to benefit when market conditions improve.

Directors' responsibilitystatement

The directors confirm that to the best of their knowledge:

The condensed set of combined and consolidated financial statements has been prepared in accordance with IAS 34, 'Interim Financial Reporting';

The Half-yearly report includes a fair review of the important events duringthe six months ended 30 June 2009 and a description of the principal risks anduncertainties for the remaining six months of the year ending 31 December 2009;

There have been no changes in the Group's related party relationships from those reported in the Group's annual financial statements for the year ended 31 December 2008; and

The Half-yearly report includes a fair review of the Group's related partytransactions.By order of the Boards, David Hathorn Andrew KingDirector Director 4 August 2009

Independent review report to the members of Mondi Limited

Introduction

We have reviewed the accompanying condensed combined and consolidated statementof financial position of Mondi Limited as at 30 June 2009 and the relatedcondensed combined and consolidated statements of income, comprehensive income,changes in equity and cash flows for the six-month period then ended, and asummary of significant accounting policies and other explanatory notes. Thecompany's directors are responsible for the preparation and fair presentationof this interim financial information in accordance with the internationalaccounting standard applicable to interim financial reporting and in the mannerrequired by the Companies Act of South Africa. Our responsibility is to expressa conclusion on this interim financial information based on our review.Scope of reviewWe conducted our review in accordance with International Standard on ReviewEngagements 2410, 'Review of Interim Financial Information Performed by theIndependent Auditor of the Entity'. A review of interim financial informationconsists of making enquiries, primarily of persons responsible for financialand accounting matters, and applying analytical and other review procedures. Areview is substantially less in scope than an audit conducted in accordancewith International Standards on Auditing and consequently does not enable us toobtain assurance that we would become aware of all significant matters thatmight be identified in an audit. Accordingly, we do not express an auditopinion.

Conclusion

Based on our review, nothing has come to our attention that causes us tobelieve that the accompanying interim financial information does not presentfairly, in all material respects, the financial position of Mondi Limited as at30 June 2009, and of its financial performance and its cash flows for thesix-month period then ended in accordance with the International AccountingStandard applicable to interim financial reporting (IAS34) and in the mannerrequired by the Companies Act of South Africa. B NosworthyPartnerSandton4 August 2009 Deloitte & ToucheRegistered Auditors

Buildings 1 and 2, Deloitte Place, The Woodlands

Woodlands Drive, Woodmead, Sandton

National Executive: G G Gelink Chief Executive A E Swiegers Chief Operating Officer G M Pinnock Audit DL Kennedy Tax and Legal and Risk Advisory L Geeringh Consulting L Bam Corporate Finance CR Beukman Finance T J Brown Clients & Markets N T Mtoba Chairman of the Board CR Qually Deputy Chairman of the Board.

A full list of partners and directors is available on request.

Independent review report to the members of Mondi plc

We have been engaged by the company to review the condensed set of financialstatements in the Half-yearly report for the six months ended 30 June 2009,which comprises the condensed combined and consolidated income statement, thecondensed combined and consolidated statement of comprehensive income, thecondensed combined and consolidated statement of financial position, thecondensed combined and consolidated statement of cash flows, the condensedcombined and consolidated statement of changes in equity and related notes 1 to19. We have read the other information contained in the Half-yearly report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the information in the condensed set of financialstatements. This report is made solely to the company in accordance with InternationalStandard on Review Engagements (UK and Ireland) 2410 issued by the AuditingPractices Board. Our work has been undertaken so that we might state to thecompany those matters we are required to state to them in an independent reviewreport and for no other purpose. To the fullest extent permitted by law, we donot accept or assume responsibility to anyone other than the company, for ourreview work, for this report or for the conclusions we have formed.

Directors' responsibilities

The Half-yearly report is the responsibility of, and has been approved by, thedirectors. The directors are responsible for preparing the Half-yearly reportin accordance with the Disclosure and Transparency Rules of the UnitedKingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this Half-yearly report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the Half-yearly report based on our review.

Scope of review

We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, 'Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity' issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us tobelieve that the condensed set of financial statements in the Half-yearlyreport for the six months ended 30 June 2009 is not prepared, in all materialrespects, in accordance with International Accounting Standard 34 as adopted bythe European Union and the Disclosure and Transparency Rules of the UnitedKingdom''s Financial Services Authority.

Deloitte LLP

Chartered Accountants and Statutory Auditors

London 4 August 2009

Note: A review does not provide assurance on the maintenance and integrity ofthe website, including controls used to achieve this, and in particular onwhether any changes may have occurred to the financial information since firstpublished. These matters are the responsibility of the directors but no controlprocedures can provide absolute assurance in this area.

Condensed combined and consolidated income statement for the six months ended 30 June 2009

(Reviewed) (Reviewed) (Audited) Year Six months Six months ended 31 ended 30 ended 30 December June 2009 June 2008 2008 Before After Before After Before After special Special special special Special special special Special special items items items

EUR million Notes items (note 5) items items (note 5) items

items (note 5) items Group revenue 4 2,614 - 2,614 3,263 - 3,263 6,345 - 6,345 Materials, energy and consumables used (1,387) - (1,387) (1,729) - (1,729) (3,384) - (3,384) Variable selling expenses (225) - (225) (281) - (281) (542) - (542) Gross margin 1,002 - 1,002 1,253 - 1,253 2,419 - 2,419 Maintenance and other indirect expenses (111) - (111) (143) - (143) (300) - (300) Personnel costs (430) (11) (441) (470) (17) (487) (926) (41) (967) Other net operating expenses (153) (32) (185) (184) (16) (200) (379) (24) (403) Depreciation, amortisation and impairments (170) (36) (206) (193) (3) (196) (373) (293) (666) Operating profit/(loss) 4 138 (79) 59 263 (36) 227 441 (358) 83 Net profit/ (loss) on disposals 5 - 5 5 - (3) (3) - (27) (27) Impairment of assets held for sale 5 - (8) (8) - - - - (2) (2) Net income from associates 1 - 1 2 - 2 2 - 2 Total profit/ (loss) from operations and associates 139 (82) 57 265 (39) 226 443 (387) 56 Investment income 13 - 13 19 - 19 15 - 15 Interest expense (71) - (71) (74) - (74) (174) - (174) Net finance costs 6 (58) - (58) (55) - (55) (159) - (159) Profit/(loss) before tax 81 (82) (1) 210 (39) 171 284 (387) (103) Taxation (charge)/ credit 7 (27) 4 (23) (61) - (61) (82) 4 (78) Profit/(loss) from continuing operations 54 (78) (24) 149 (39) 110 202 (383) (181) Attributable to: Minority interests 12 - 12 23 - 23 30 - 30 Equity holders of the parent companies 42 (78) (36) 126 (39) 87 172 (383) (211) Earnings per share ("EPS") for (loss)/ profit attributable to equity holders of the parent companies Basic EPS (EUR cents) 8 (7.1) 17.1 (41.6) Diluted EPS (EUR cents) 8 (7.1) 16.9 (41.6) Basic underlying EPS (EUR cents) 8 8.3 24.8 33.9 Diluted underlying EPS (EUR cents) 8 8.1 24.4 33.4 Basic headline EPS (EUR cents) 8 (0.8) 18.3 20.3 Diluted headline EPS (EUR cents) 8 (0.8) 18.0

20.0

There were no discontinued operations in any of the periods presented.

Condensed combined and consolidated statement of comprehensive income for the six months ended 30 June 2009

(Reviewed) (Reviewed) (Audited) As at 30 As at 30 As at 31 EUR million June 2009 June 2008 December 2008

(Loss)/profit for the financial period/year (24) 110

(181) Other comprehensive income:

Fair value gains/(losses) on cash flow hedges 14 8

(61)

Actuarial gains/(losses) and surplus restriction on post-retirement benefit schemes 1 2

(17)

Fair value losses on available for sale

investments - - (1)

Exchange gains/(losses) on translation of

foreign operations 72 (64) (246)

Share of other comprehensive income of

associates 1 (1) (1)

Taxation relating to components of other

comprehensive income (1) (2) 17

Other comprehensive income for the financial

period/year, net of tax 87 (57) (309)

Total comprehensive income for the financial

period/year 63 53 (490) Attributable to: Minority interests 14 45 23

Equity holders of the parent companies 49 8

(513) Condensed combined and consolidated statement of financial positionas at 30 June 2009 (Reviewed) (Reviewed) (Audited) As at 30 As at 30 As at 31 EUR million Notes June 2009 June 2008 December 2008 Intangible assets 321 524 323 Property, plant and equipment 3,769 3,750 3,611 Forestry assets 268 206 214 Investments in associates 8 7 5 Financial asset investments 24 25 19 Deferred tax assets 43 39 36 Retirement benefits surplus - 15 -

Derivative financial instruments - 5

- Total non-current assets 4,433 4,571 4,208 Inventories 611 759 684 Trade and other receivables 1,075 1,349 1,104 Current tax assets 23 24 32 Cash and cash equivalents 10 171 152 155

Derivative financial instruments 15 19

73 Total current assets 1,895 2,303 2,048 Assets held for sale 22 - 5 Total assets 6,350 6,874 6,261 Short-term borrowings 10 (435) (406) (378) Trade and other payables (1,013) (1,095) (1,035) Current tax liabilities (46) (87) (53) Provisions (47) (14) (25)

Derivative financial instruments (40) (14)

(38) Total current liabilities (1,581) (1,616) (1,529)

Medium and long-term borrowings 10 (1,397) (1,401)

(1,467)

Retirement benefits obligation (184) (190)

(182) Deferred tax liabilities (329) (313) (292) Provisions (48) (46) (39)

Other non-current liabilities (14) (16)

(14)

Derivative financial instruments (47) -

(39) Total non-current liabilities (2,019) (1,966) (2,033)

Liabilities directly associated with assets classified as held for sale (3) -

(3) Total liabilities (3,603) (3,582) (3,565) Net assets 2,747 3,292 2,696 Equity Ordinary share capital 114 114 114 Share premium 532 532 532

Retained earnings and other reserves 1,707 2,239

1,677

Total equity attributable to equity holders of the parent companies 2,353 2,885

2,323 Minority interests in equity 394 407 373 Total equity 2,747 3,292 2,696

Condensed combined and consolidated statement of cash flows for the six months ended 30 June 2009

(Reviewed) (Reviewed) (Audited) Six months Six months ended 30 June ended 30 June Year ended 31EUR million Notes 2009 2008 December 2008 Cash inflows from operations 12 392 310 795 Dividends from associates - - 2 Income tax paid (18) (27) (71)

Net cash inflows generated from

operating activities 374 283 726 Cash flows from investing activities

Acquisition of subsidiaries, net of

cash and cash equivalents (2) (35) (49) Proceeds from disposal of

subsidiaries, net of cash and cash

equivalents 47 2 17

Purchases of property, plant and

equipment 11 (293) (313) (693) Proceeds from the disposal of property, plant and equipment 7 7 29 Investment in forestry assets (20) (22) (43) Purchases of financial asset investments - - (2) Purchase of intangible assets (2) (4) (7)

Proceeds from the sale of financial

asset investments - 2 1

Loan (advances to)/repayments from

related parties (1) (2) 1 Interest received 4 9 28 Other investing activities - 1 8 Net cash used in investing activities (260) (355) (710) Cash flows from financing activities

Repayment of short-term borrowings 10 (81) (143)

(214)

(Repayment of)/Proceeds from medium

and long-term borrowings 10 (6) 285 543 Interest paid (93) (69) (169) Dividends paid to minority interests - (9) (20)

Dividends paid to equity holders 9 (26) (80)

(118) Purchase of treasury shares (1) (15) (15) Injection by minorities 10 - -

Net realised gain on cash and asset

management swaps 84 12 4 Other financing activities (1) 1 (3)

Net cash (used in)/generated from

financing activities (114) (18) 8

Net increase/(decrease) in cash and

cash equivalents - (90) 24

Cash and cash equivalents at start

of financial period/year1 10 75 59 59

Cash movement in the financial

period/year 10 - (90) 24

Cash acquired through business

combinations 10 - - 3 Reclassifications 10 - - (2)

Effects of changes in foreign

exchange rates 10 4 1 (9)

Cash and cash equivalents at end of

financial period/year1 79 (30) 75 Note: 1 'Cash and cash equivalents' includes overdrafts.

Condensed combined and consolidated statement of changes in equity for the six months ended 30 June 2009

Share capital Combined share Mondi Mondi Mondi capital Limited Limited plc and share share share share Retained Other Minority Total EUR million capital premium capital premium earnings reserves1 Total interests equity At 1 January 2008 11 532 103 646 2,154 163 2,963 373 3,336 Dividends paid - - - - (80) - (80) (9) (89) Total comprehensive income for the financial period /year - - - - 87 (79) 8 45 53 Issue of shares under employee share schemes - - - - 1 (1) - - - Purchase of treasury shares2 - - - - (15) - (15) - (15) Share options exercised - Anglo American share scheme - - - - (3) - (3) - (3) Adjustments to minority share in the net asset values of business acquisitions - - - - - - - (2) (2) Other - - - - - 12 12 - 12 At 30 June 2008 11 532 103 646 2,144 95 2,885 407 3,292 Dividends paid - - - - (38) - (38) (11) (49) Total comprehensive income for the financial period /year - - - - (298) (223) (521) (22) (543) Issue of shares under employee share schemes - - - - 6 (6) - - - Disposal of business - - - - (1) - (1) - (1) Minority share dilution - - - - (4) - (4) 4 - Adjustments to minority share in the net asset values of business acquisitions - - - - - - - (1) (1) Minorities bought out - - - - - - - (3) (3) Other - - - - - 2 2 (1) 1 At 31 December 2008 11 532 103 646 1,809 (132) 2,323 373 2,696 Dividends paid - - - - (26) - (26) - (26) Total comprehensive income for the financial period /year - - - - (36) 85 49 14 63 Issue of shares under employee share schemes - - - - 2 (2) - - - Purchase of treasury shares2 - - - - (1) - (1) - (1) Reclassification - - - - (14) 14 - - - Minorities buy in - - - - - - - 10 10 Minorities bought out - - - - - - - (3) (3) Other - - - - - 8 8 - 8 At 30 June 2009 11 532 103 646 1,734 (27) 2,353 394 2,747 Notes:

1 Other reserves include the share-based payments, cumulative translation adjustment, available-for-sale, cash flow hedge, post-retirement benefit obligation, merger and other sundry reserves.

2 The treasury shares purchased represents the cost of shares in Mondi plcand Mondi Limited purchased in the market and held by the Mondi Employee ShareTrust and the Mondi Incentive Schemes Trust, respectively, to satisfy optionsunder the Group's share options schemes. The number of ordinary shares held bythe Mondi Employee Share Trust and the Mondi Incentive Schemes Trust at 30 June2009 was 7,113,962 and 259,334 shares respectively (at 30 June 2008: 8,417,103and nil respectively, at 31 December 2008: 7,943,115 and 115,000 respectively)at an average price of 4.03 and R33.24 per share, respectively (at 30 June2008: 4.07 and Rnil per share respectively, at 31 December 2008: 3.95 andR47.51 per share, respectively).

Notes to the condensed combined and consolidated financial information

1 Basis of preparation

The Group has two separate legal parent entities, Mondi Limited and Mondi plc,which operate under a dual listed company (DLC) structure. The substance of theDLC structure is such that Mondi Limited, and its subsidiaries, and Mondi plc,and its subsidiaries, operate together as a single economic entity through asharing agreement, with neither parent entity assuming a dominant role.Accordingly, Mondi Limited and Mondi plc are reported on a combined andconsolidated basis as a single reporting entity under International FinancialReporting Standards (IFRSs). The condensed combined and consolidated Half-yearly financial information forthe six months ended 30 June 2009 has been prepared in accordance with IAS34,'Interim Financial Reporting'. It should be read in conjunction with theGroup's annual financial statements for the year ended 31 December 2008, whichhave been prepared in accordance with all applicable IFRSs. There are nodifferences for the Group in applying IFRSs as issued by the InternationalAccounting Standards Board and as endorsed by the European Union (EU).Consequently, the Group's annual financial statements for the year ended 31December 2008 are also compliant with IFRSs as endorsed by the EU. Thefinancial statements have been prepared on a going concern basis. This isdiscussed in the Group performance overview under the heading 'Going concern'. The information for the year ended 31 December 2008 does not constitutestatutory accounts as defined by section 240 of the Companies Act 1985 of theUnited Kingdom. A copy of the statutory accounts for that year has beendelivered to the Registrar of Companies. The auditors' report was not qualifiedand did not contain statements under Section 237(2) or (3) of the Companies

Act1985. 2 Accounting policies

The same accounting policies, methods of computation and presentation have beenfollowed in the preparation of the condensed combined and consolidatedfinancial statements as were applied in the preparation of the Group's annualfinancial statements for the year ended 31 December 2008. In addition the Grouphas implemented the revised IAS 1 'Presentation of Financial Statements' andIFRS 8 'Operating Segments' for its interim reporting. Both standards becameeffective on 1 January 2009.

The impacts of the changes to IAS 1 are of a presentation and disclosure nature only, with the most significant changes being:

The replacement of the 'statement of recognised income and expense' with a 'statement of comprehensive income' which discloses information on a gross rather than a net basis and also reconciles the profit or loss for the period to the total comprehensive income for the period.

The presentation of a complete statement of changes in equity as a primary statement rather than a note to the financial statements.

There is no impact on the financial results disclosed.

IFRS 8 results in additional disclosure of segmental information, but the reportable segments remain unchanged.

3 Seasonality

The seasonality of the Group's operations does not impact significantly on the condensed combined and consolidated financial statements.

4 Operating segments

Identification of the Group's externally reportable operating segments

The Group's externally reportable segments reflect the internal reportingstructure of the Group, which is the basis on which resource allocationdecisions are made by management in the attainment of strategic objectives. TheGroup operates under two primary geographic regions reflecting its SouthAfrican activities and assets, and its international, principally European,activities and assets. These broad geographic regions are further split byproduct segments reflecting the management of the Group. In addition the Groupmanages Mondi Packaging South Africa and the Merchant and Newsprint businessesseparately and therefore these have been presented as separate segments. Operating segment revenues Internal and external segment revenues are presented, and reconciled to Grouprevenue, as follows: (Reviewed) (Reviewed) (Audited) Year Six months Six months ended 31 ended 30 ended 30 December June 2009 June 2008 2008 Segment Internal External Segment Internal External Segment Internal ExternalEUR million revenue revenue revenue revenue revenue revenue

revenue revenue revenue Europe & International Uncoated Fine Paper 680 (62) 618 846 (92) 754 1,565 (174) 1,391 Corrugated 527 (16) 511 830 (34) 796 1,555 (58) 1,497 Bags & Specialities 893 (12) 881 1,121 (10) 1,111 2,138 (22) 2,116 Intra-segment elimination (37) 37 - (55) 55 - (99) 99 - Total Europe & International 2,063 (53) 2,010 2,742 (81) 2,661 5,159 (155) 5,004 South Africa Uncoated Fine Paper 197 (64) 133 221 (122) 99 474 (174) 300 Containerboard 66 (63) 3 63 (62) 1 134 (132) 2 Intra-segment elimination (14) 14 - (10) 10 - (21) 21 - Total South Africa 249 (113) 136 274 (174) 100 587 (285) 302 Mondi Packaging South Africa 227 (13) 214 223 (14) 209 474 (27) 447 Merchant and Newsprint 254 - 254 293 - 293 593 (1) 592 Corporate and other businesses - - - - - - - - - Segments total 2,793 (179) 2,614 3,532 (269) 3,263 6,813 (468) 6,345 Inter-segment elimination (179) 179 - (269) 269 - (468) 468 - Group total 2,614 - 2,614 3,263 - 3,263 6,345 - 6,345 4 Operating segments (continued)

Operating segment operating profit

Segment operating profitsare presented, and reconciled to Group profit/(loss)before tax, as follows: Segment operating Segment profit operating before profit/(loss) special after special items1 items1/2 (Reviewed) (Reviewed) (Audited) (Reviewed) (Reviewed) (Audited) Year Year Six months Six months ended 31 Six months Six months ended 31 ended 30 ended 30 December ended 30 ended 30 June December EUR million June 2009 June 2008 2008 June 2009 2008 2008 Europe & International Uncoated Fine Paper 71 69 126 71 42 98 Corrugated 1 37 49 (10) 35 (62) Bags & Specialities 36 109 159 (13) 103 (58) Total Europe & International 108 215 334 48 180 (22) South Africa Uncoated Fine Paper 13 30 75 (6) 30 75 Containerboard 15 15 36 15 15 36 Total South Africa 28 45 111 9 45 111 Mondi Packaging South Africa 11 14 28 11 14 28 Merchant and Newsprint 8 10 7 8 10 7 Corporate and other businesses (17) (21) (39) (17) (22) (41) Segments total 138 263 441 59 227 83 Net profit/(loss) on disposals (see note 5) - - - 5 (3) (27) Impairment of assets held for sale (see note 5) - - - (8) - (2) Net income from associates 1 2 2 1 2 2 Net finance costs (see note 6) (58) (55) (159) (58) (55) (159) Group profit/ (loss) before tax and discontinued operations 81 210 284 (1) 171 (103) Notes: 1 Management reviews underlying segment operating profit on a regular basisas part of the resource allocation decision making process and the ongoingassessment of segment performance. Accordingly, segment underlying operatingprofits are presented here. Segment profits stated after operating specialitems are also presented since the Group believes that this provides usefuladditional information for the user of the Group's condensed combined andconsolidated financial statements.2 Special items are disclosed per operating segment in note 5.4 Operating segments (continued)

Balance sheet

Segment assets, liabilities and net assets are presented, and reconciled to their respective Group totals, as follows:

(Reviewed) (Reviewed) (Audited) As at 31 As at 30 As at 30 December June 2009 June 2008 2008 Net Net Net Segment Segment segment Segment Segment segment Segment Segment segmentEUR million assets1 liabilities2 assets assets1 liabilities2 assets assets1 liabilities2 assets Europe & International Uncoated Fine Paper 1,640 (174) 1,466 1,605 (200) 1,405 1,589 (177) 1,412 Corrugated 1,044 (207) 837 1,356 (247) 1,109 1,171 (241) 930 Bags & Specialities 1,585 (268) 1,317 1,965 (313) 1,652 1,632 (315) 1,317 Intra-segment elimination (25) 25 - (30) 30 - (76) 76 - Total Europe & International 4,244 (624) 3,620 4,896 (730) 4,166 4,316 (657) 3,659 South Africa Uncoated Fine Paper 834 (100) 734 765 (99) 666 720 (80) 640 Containerboard 152 (18) 134 138 (15) 123 139 (19) 120 Intra-segment elimination (3) 3 - (2) 2 - (2) 2 - Total South Africa 983 (115) 868 901 (112) 789 857 (97) 760 Mondi Packaging South Africa 438 (96) 342 385 (77) 308 371 (70) 301 Merchant and Newsprint 290 (72) 218 330 (82) 248 283 (87) 196 Corporate and other businesses 7 (1) 6 5 (2) 3 13 (3) 10 Inter-segment elimination (97) 97 - (110) 110 - (101) 101 - Segments total 3 5,865 (811) 5,054 6,407 (893) 5,514 5,739 (813) 4,926 Unallocated: Investment in associates 8 - 8 7 - 7 5 - 5 Deferred tax assets/ (liabilities) 43 (329) (286) 39 (313) (274) 36 (292) (256) Other non-operating assets/ (liabilities)4 239 (631) (392) 244 (569) (325) 307 (615) (308) Group trading capital

employed 6,155 (1,771) 4,384 6,697 (1,775) 4,922 6,087 (1,720) 4,367 Financial asset investments 24 - 24 25 - 25 19 - 19 Net debt5 171 (1,832) (1,661) 152 (1,807) (1,655) 155 (1,845) (1,690) Group net assets 6,350 (3,603) 2,747 6,874 (3,582) 3,292

6,261 (3,565) 2,696 Notes:

1 Segment assets are operating assets and consist of property, plant and equipment, intangible assets, forestry assets, retirement benefits surplus, inventories and operating receivables.

2 Segment liabilities are operating liabilities and consist of non-interest bearing current liabilities, provisions and provisions for post-retirement benefits.

3 Management reviews net segment assets on a regular basis as part of theresource allocation decision making process and the ongoing assessment ofsegment performance. Accordingly, net segment assets are presented here,together with segment assets, as required by IFRS 8. Segment liabilities arealso presented since the Group believes that this provides useful additionalinformation to the user of the Group's condensed combined and consolidatedfinancial statements.4 Other non-operating assets consist of derivative assets, current income taxreceivables, other non-operating receivables, assets held for sale. Othernon-operating liabilities consist of derivative liabilities, non-operatingprovisions, current income tax liabilities, other non-operating liabilities andliabilities directly associated with assets held for sale.

5 Overdrafts are included in borrowings.

4 Operating segments (continued)

An analysis of the Group's external revenues attributed to the countries, where material, and the continents in which external customers are located, is presented as follows:

(Reviewed) (Reviewed) (Audited) Six months ended 30 Six months ended 30 Year ended 31 DecemberEUR million June 2009 June 2008 2008 Revenues South Africa 291 284 616 Rest of Africa 103 133 251 Western Europe 1,185 1,552 2,932 Emerging Europe 526 688 1,326 Russia 188 224 430 North America 79 97 183 South America 9 15 31 Asia and Australia 233 270 576 Group total 2,614 3,263 6,345 An analysis of the Group's external revenues attributed to the countries, wherematerial, and the continents from which revenues are derived, is presented

asfollows: (Reviewed) (Reviewed) (Audited) Six months ended 30 Six months ended 30 Year ended 31 DecemberEUR million June 2009 June 2008 2008 Revenues South Africa 467 470 1,015 Rest of Africa 5 6 15 Western Europe 1,071 1,475 2,772 Emerging Europe 687 895 1,691 Russia 251 282 569 North America 54 58 120 Asia and Australia 79 77 163 Group total 2,614 3,263 6,345

An analysis of the Group's segment assets, liabilities and net assets attributed to the countries, where material, and the continents in which assets and liabilities are located, is presented as follows:

(Reviewed) (Reviewed) (Audited) As at 30 June 2009 As at 30 June 2008 As at

31 December 2008 Net Net Net Segment Segment segment Segment Segment segment Segment Segment segmentEUR million assets liabilities assets assets liabilities assets assets liabilities assets South Africa 1,388 (189) 1,199 1,266 (141) 1,125 1,195 (152) 1,043 Rest of Africa 14 (4) 10 12 (4) 8 11 (1) 10 Western Europe total 1,814 (359) 1,455 2,204 (374) 1,830 1,993 (392) 1,601 Emerging Europe total 1,707 (179) 1,528 2,132 (282) 1,850 1,700 (190) 1,510 Russia 736 (41) 695 576 (40) 536 618 (33) 585 North America 78 (9) 69 97 (12) 85 86 (11) 75 South America - - - - - - - - - Asia and Australia 128 (30) 98 120 (40) 80 136 (34) 102 Group total 5,865 (811) 5,054 6,407 (893) 5,514 5,739 (813) 4,926 5 Special items (Reviewed) (Reviewed) (Audited) Six months ended Six months ended Year ended 31 EUR million 30 June 2009 30 June 2008 December 2008 Operating special items Asset impairments Uncoated Fine Paper (Europe & International) - - (1)

Corrugated (Europe & International) (3) -

(28) Bags & Specialities (Europe & International) (14) - (70)

Uncoated Fine Paper (South Africa) (19) -

- Total asset impairments (36) - (99)

Restructuring and closure costs Restructuring and closure costs excluding related personnel costs

Uncoated Fine Paper (Europe & International) - (18) (15)

Corrugated (Europe & International) (3) -

(1) Bags & Specialities (Europe & International) (26) (3) (8) Personnel costs relating to restructuring Uncoated Fine Paper (Europe & International) - (8) (8)

Corrugated (Europe & International) (3) -

(6) Bags & Specialities (Europe & International) (8) (2) (18)

Total restructuring and closure

costs (40) (31) (56) Goodwill impairments

Corrugated (Europe & International) - -

(74) Bags & Specialities (Europe & International) - - (120) Total goodwill impairments - - (194) Demerger arrangements Uncoated Fine Paper (Europe & International) - (1) (4)

Corrugated (Europe & International) (2) (2)

(2)

Bags & Specialities (Europe &

International) (1) (1) (1)

Corporate and other businesses - (1)

(2) Total demerger arrangements (3) (5) (9)

Total operating special items (79) (36)

(358) Profit/(loss) on disposals

Corrugated (Europe & International) 5 (3)

(11) Bags & Specialities (Europe & International) - - (16) Net profit/(loss) on disposal 5 (3) (27)

Asset impairment of assets held for

sale

Corrugated (Europe & International) (8) -

(2)

Total non-operating special items (3) (3)

(29)

Total special items before tax and

minority interests (82) (39) (387) Taxation 4 - 4

Total special items attributable to

equity holders (78) (39) (383) 5 Special items (continued)

Operating special items

The sharp decline in demand experienced in a number of markets, together with the recognition that we are in a prolonged global economic downturn has resulted in management taking a number of actions.

Uncoated Fine Paper (South Africa)

In response to the continued difficult trading conditions, in particular theweak export sales margins on uncoated fine paper due to a combination of thestrong local currency and softening export prices, the proposed mothballing ofthe 12,000 tonnes per annum PM32 paper machine at Merebank has been announcedresulting in an impairment of EUR19 million. Corrugated

Given the continued difficult trading conditions in the Corrugated Packaging sector Mondi responded by closing, or restructuring, certain high cost operations. This has resulted in closure costs of EUR6 million and asset impairment costs of EUR3 million.

Bags & Specialities Significant market related down time has been taken due to overcapacity createdby a significant slowdown in demand. Various restructuring initiatives havebeen implemented in response to the lower demand environment. As a result theGroup has incurred restructuring and closure costs of EUR34 million, and assetimpairment costs of EUR14 million. Demerger arrangements

Equity settled demerger arrangements for senior management have also resulted in additional share based payments of EUR3 million

Non-operating special items

The Group disposed of its interest in four corrugated operations in France fora consideration of EUR51 million at a profit of EUR5 million. The Group hasimpaired the EUR8 million assets of the Cartonstrong corrugated plant in Italythat is reflected as held for sale in the balance sheet. 6 Net finance costs (Reviewed) (Reviewed) (Audited) Six months Six months ended 30 June ended 30 June Year ended 31EUR million 2009 2008 December 2008 Investment income

Interest and other financial income 5 8

24

Expected return on defined benefit

arrangements 8 10 20

Foreign currency (losses)/gains1 (2) 1

(28)

Impairment reversal/(charge) of financial assets (excluding trade

receivables) 2 - (1) Total investment income 13 19 15 Financing costs

Interest on bank loans, overdrafts and

finance leases2 (90) (67) (170) Interest on defined benefit arrangements (12) (13) (28) Total interest expense (102) (80) (198) Less: interest capitalised 31 6 24 Total financing costs (71) (74) (174) Net finance costs (58) (55) (159) Notes:

1 Net of fair value movements attributable to forward foreign exchange contracts.

2 Net of fair value movements attributable to interest rate swap contracts. 7 Taxation charge (Reviewed) (Reviewed) (Audited) Six months ended Six months ended Year ended 31 EUR million 30 June 2009 30 June 2008 December 2008 United Kingdom taxation - - (5) Overseas taxation 23 55 64 Current tax (including tax on special items) 23 55 59 Deferred taxation - 6 19 Total tax charge 23 61 78 The Group's estimated effective annual rate of taxation before special itemsfor the six months ended 30 June 2009 is 34% (six months ended 30 June 2008:29%). IAS 1 requires income from associates to be presented net of tax on the face ofthe condensed combined and consolidated income statement. The Group's share ofits associates' tax charge is therefore not presented within the Group's totaltax charge.The associates' tax charge included within 'Net income fromassociates' for the six months ended 30 June 2009 is EUR0.5 million (six monthsended 30 June 2008: EUR0.5 million, year ended 31 December 2008: EUR1 million). 8 Earnings per share (Reviewed) (Reviewed) (Audited) Six months Six months ended 30 June ended 30 June Year ended 31 EUR million 2009 2008 December 2008

(Loss)/profit for the financial period /year attributable to equity holders

Basic EPS (7.1) 17.1 (41.6) Diluted EPS (7.1)3 16.9 (41.6)3

Underlying earnings for the financial

period/year1 Basic EPS 8.3 24.8 33.9 Diluted EPS 8.1 24.4 33.4

Headline (loss)/earnings for the

financial period/year2 Basic EPS (0.8) 18.3 20.3 Diluted EPS (0.8) 18.0 20.0 Notes:

1 The Boards believe that underlying EPS provides a useful additional non-GAAP measure of the Group's underlying performance. Underlying EPS excludes the impact of special items.

2 The presentation of Headline EPS is mandated under the JSE Listings Requirements. Headline earnings has been calculated in accordance with Circular8/2007, 'Headline Earnings', as issued by the South African Institute of Chartered Accountants. Please see the reconciliation presented below.

3 Diluted EPS is consistent with Basic EPS as the impact of potential ordinary shares is anti-dilutive.

The calculation of basic and diluted EPS, basic and diluted underlying EPS, and basic and diluted Headline EPS is based on the following data:

Earnings (Reviewed) (Reviewed) (Audited) Six months Six months ended 30 June ended 30 June Year ended 31 EUR million 2009 2008 December 2008

(Loss)/profit for the financial period /year attributable to equity holders (36) 87

(211) Special items: operating 79 36 358

Net (profit)/loss on disposals (5) 3

27

Impairment of assets held for sale 8 -

2 Related tax (4) - (4)

Underlying earnings for the financial

period/year 42 126 172

Profit on disposal of tangible fixed

assets (4) - (6)

Special items: demerger arrangements (3) (5)

(9)

Special items: restructuring and

closure cost (40) (28) (56) Related tax 1 - 2

Headline (loss)/earnings for the financial period/year (4) 93 103 8 Earnings per share (continued) Number of shares (Reviewed) (Reviewed) (Audited) Six months ended Six months ended Year ended 31 EUR million 30 June 2009 30 June 2008 December 2008 Basic number of ordinary shares outstanding1 507 508 507

Effect of dilutive potential

ordinary shares2 12 8 8 Diluted number of ordinary shares outstanding 519 516 515 Notes:

1 The basic number of ordinary shares outstanding represents the weighted average number in issue for Mondi Limited and Mondi plc for the year, as adjusted for the weighted average number of treasury shares held during the year.

2 Diluted EPS is calculated by adjusting the weighted average number of ordinary shares in issue, net of treasury shares, on the assumption of conversion of all potentially dilutive ordinary shares.

9 Dividends

Dividends paid to the equity holders of Mondi Limited and Mondi plc are presented on a combined basis.

(Reviewed) (Reviewed) (Audited) Six months ended Six months ended Year ended 31 EUR million 30 June 2009 30 June 2008 December 2008 Amounts recognised as

distributions to equity holders Final and interim dividends paid 26 80

38 Amounts proposed as

distributions to equity holders1

Proposed interim and final dividends 13 40 26 Full year dividend paid and proposed 64 (Reviewed) (Reviewed) (Audited) Six months ended Six months ended Year ended 31 EUR cents per share 30 June 2009 30 June 2008 December 2008 Amounts recognised as

distributions to equity holders Final and interim dividend paid 5.0 15.7

7.7 Amounts proposed as

distributions to equity holders

Interim and final dividends 2.5 7.7 5.0 Full year dividend paid and proposed 12.7

The interim dividend for the year ending 31 December 2009 of 2.5 euro cents perordinary share will be paid on 15 September 2009 to Mondi Limited and Mondi plcordinary shareholders on the relevant registers on 28 August 2009. The dividendwill be paid from distributable reserves of Mondi Limited and of Mondi plc, aspresented in the respective company annual financial statements for the yearended 31 December 2008.

9 Dividends (continued)

The interim dividend for the year ending 31 December 2009 will be paid in accordance with the following time table:

Mondi Limited Mondi plc

Last date to trade shares cum-dividend

21 August 21 August JSE Limited 2009 2009 Not 25 August London Stock Exchange applicable 2009

Shares commence trading ex-dividend

24 August 24 August JSE Limited 2009 2009 Not 26 August London Stock Exchange applicable 2009 Record date 28 August 28 August JSE Limited 2009 2009 Not 28 August London Stock Exchange applicable 2009 2 2

Last date for Dividend Reinvestment Plan (DRIP) elections by September September Central Securities Depository Participants 2009

2009

Last date for DRIP elections to UK Registrar and South African 3 3 Transfer Secretaries by shareholders of Mondi Limited and Mondi September

September plc 2009 2009 Payment date 15 15 September September South African Register 2009 2009 15 Not September UK Register applicable 2009 18 September Not

Depositary Interest holders (dematerialised DIs) 2009

applicable 22 September Not

Holders within the Equiniti Corporate Nominee 2009

applicable 22 18 September September

DRIP purchase settlement dates 2009

20091 Currency conversion dates 5 August 5 August ZAR/euro 2009 2009 7 Not September Euro/sterling applicable 2009 Note:

1 22 September 2009 for Mondi plc South African branch register shareholders.

Share certificates on the South African registers of Mondi Limited and Mondiplc may not be dematerialised or rematerialised between 24 August 2009 and 30August 2009, both dates inclusive, nor may transfers between the UK and SouthAfrican registers of Mondi plc take place between 19 August 2009 and 31 August2009, both dates inclusive. 10 Net debt

The Group's net debt position, excluding disposal groups is as follows:

Cash and Debt due Debt due cash within one after one Total net EUR million equivalents1 year2 year debt Balance at 1 January 2008 59 (332) (1,234) (1,507) Cash flow (90) 143 (285) (232) Business combinations - (3) (5) (8) Disposal of businesses - 4 16 20 Reclassifications - (42) 42 - Currency movements 1 6 65 72

Closing balance at 30 June 2008 (30) (224) (1,401)

(1,655) Cash flow 114 71 (258) (73) Business combinations 3 - (32) (29) Disposal of businesses - 1 4 5 Reclassifications (2) (173) 173 (2) Currency movements (10) 27 47 64

Closing balance at 31 December 2008 75 (298) (1,467)

(1,690) Cash flow - 81 6 87 Business combinations - - 2 2 Disposal of businesses - 8 - 8 Reclassifications - (112) 112 - Currency movements 4 (22) (50) (68)

Closing balance at 30 June 2009 79 (343) (1,397)

(1,661) Notes: 1 The Group operates in certain countries (principally South Africa) wherethe existence of exchange controls may restrict the use of certain cashbalances. These restrictions are not expected to have any material effect onthe Group's ability to meet its ongoing obligations.2 Excludes overdrafts, which are included as cash and cash equivalents. At30 June 2009, short-term borrowings on the condensed combined and consolidatedbalance sheet of EUR435million (at 30 June 2008: EUR406 million, at 31 December2008: EUR378 million) include EUR92million of overdrafts (at 30 June 2008: EUR182 million, at 31 December 2008: EUR80 million).

The following table shows the amounts available to draw down on the Group's committed loan facilities.

(Reviewed) (Reviewed) (Audited) Six months ended 30 Six months ended 30 Year ended 31 EUR million June 2009 June 2008 December 2008 Expiry date In one year or less 178 154 167 In more than one year 895 934 895 Total credit available 1,073 1,088 1,062 11 Capital expenditure cash payments (Reviewed) (Reviewed) (Audited) Six months ended 30 Six months ended 30 Year ended 31 EUR million June 2009 June 2008 December 2008 Europe & International Uncoated Fine Paper 122 130 266 Corrugated 108 83 199 Bags & Specialities 42 47 136 Sub-total 272 260 601 South Africa Uncoated Fine Paper 12 4 37 Containerboard 1 19 7 Sub-total 13 23 44 Mondi Packaging South Africa 6 25 38 Merchant and Newsprint 2 5 10 Total1 293 313 693 Note:

1 Excludes business combinations, interest capitalised and the purchase of intangible assets.

12 Earnings before interest, tax, depreciation and amortisation (EBITDA)

A reconciliation of cash inflows from operations to EBITDA is presented asfollows: (Reviewed) (Reviewed) (Audited) Six months ended Six months ended Year ended 31 EUR million 30 June 2009 30 June 2008 December 2008 Cash inflows from operations 392 310 795 Share option expense (4) (6) (9) Fair value gains on forestry assets 15 24 46 Cost of felling (26) (22) (43)

Decrease in provisions and post

employment benefits 9 11 21 (Decrease)/increase in inventories (81) 11 (26) (Decrease)/increase in operating receivables (19) 87 (106)

Decrease in operating payables 1 28

105 Profit on disposal of assets 4 - 6 Add back cash effect of operating special items 18 - 19 Other adjustments (1) 13 6 EBITDA1 308 456 814 Note:

1 EBITDA is operating profit before special items, depreciation and amortisation.

12 Earnings before interest, tax, depreciation and amortisation (EBITDA) (continued)

EBITDA by business segment is presented as follows:

(Reviewed) (Reviewed) (Audited) Six months ended 30 Six months ended 30 Year ended 31 EUR million June 2009 June 2008 December 2008 Europe & International Uncoated Fine Paper 117 122 221 Corrugated 32 78 131 Bags & Specialities 89 164 271 Sub-total 238 364 623 South Africa Uncoated Fine Paper 29 48 109 Containerboard 19 19 43 Sub-total 48 67 152 Mondi Packaging South Africa 23 27 52 Merchant and Newsprint 16 18 24 Corporate and other businesses (17) (20) (37) EBITDA 308 456 814

EBITDA is stated before special items and is reconciled to 'Total profit from operations and associates' as follows:

(Reviewed) (Reviewed) (Audited) Six months ended Six months ended Year ended 31 EUR million 30 June 2009 30 June 2008 December 2008

Total profit from operations and

associates 57 226 56 Operating special items (excluding associates) 79 36 358

Net (profit)/loss on disposals

(excluding associates) (5) 3 27

Impairment of assets held for

sale 8 - 2

Depreciation and amortisation 170 193

373

Share of associates' net income (1) (2)

(2) EBITDA 308 456 814 13 Business combinations

There are no material business combinations for the six months ended 30 June 2009.

14 Write-down of inventories to net realisable value

The write-downs of inventories to net realisable value, recognised as an expense for the six months ended 30 June 2009, total EUR11 million (2008: EUR9 million). The aggregate reversal of previous write-downs, recognised as a reduction in the amount of inventories expensed for the six months ended 30 June 2009, total EUR2 million (2008: EUR1 million).

15 Retirement benefits

There were no significant curtailments, settlements, or other significant one-time events relating to the Group's defined benefit schemes, post-retirement medical plans or statutory retirement obligations during the six months ended 30 June 2009.

Material schemes The Group's material defined benefit scheme and post-retirement medical planliabilities were re-assessed for the half-year ended 30 June 2009. The netchange in assumptions from those applied as at 31 December 2008 resulted in animmaterial impact on the present value of the liabilities. The assets backingthe defined benefit scheme liabilities were updated to reflect their marketvalues as at 30 June 2009. Any difference between the expected return on assetsand the actual return on assets has been recognised as an actuarial experiencemovement within equity.

Remaining Group defined benefit schemes and unfunded statutory obligations The remaining Group defined benefit schemes and unfunded statutory retirementobligations are calculated on a year-to-date basis. The calculations performedmake use of the actuarial and financial assumptions published in the Group'sannual financial statements for the year ended 31 December 2008. Althoughcertain of these assumptions require adjustment to reflect market fluctuationsduring the half-year ended 30 June 2009, the net effect of applying theseadjustments would have been immaterial. 16 Capital commitments (Reviewed) (Reviewed) (Audited) As at 30 June As at 30 June As at 31 December EUR million 2009 2008 2008 Contracted for but not provided 258 421 405 Approved, not yet contracted for 136 436 219 17 Related party transactions The Group has a related party relationship with its associates and jointventures. Transactions between Mondi Limited, Mondi plc and their respectivesubsidiaries, which are related parties, have been eliminated on consolidationand are not disclosed in this note. The Group and its subsidiaries, in the ordinary course of business, enter intovarious sale, purchase and service transactions with joint ventures andassociates and others in which the Group has a material interest. Thesetransactions are under terms that are no less favourable than those arrangedwith third parties. These transactions, in total, are not considered to besignificant. 17 Related party transactions (continued) Joint EUR million Ventures Associates

Six months ended/as at 30 June 2009

Sales to related parties 5 -

Purchases from related parties -

(13) Loans to related parties 15 -

Receivables due from related parties 7

-

Payables due to related parties -

(2)

Six months ended/as at 30 June 2008

Sales to related parties 5 -

Purchases from related parties -

(18) Loans to related parties 13 -

Receivables due from related parties 5

-

Year ended/as at 31 December 2008

Sales to related parties 11 -

Purchases from related parties (1)

(32) Loans to related parties 10 -

Receivables due from related parties 7

1 Cyril Ramaphosa, joint chairman of Mondi, has a 29.82% (at 30 June 2008:39.96%, at 31 December 2008: 32.7%) stake in Shanduka Group (Pty) Limited, anentity that has controlling interests in Shanduka Advisors (Pty) Limited,Shanduka Resources (Pty) Limited, Shanduka Packaging (Pty) Limited and ShandukaNewsprint (Pty) Limited and participating interests in Mondi Shanduka Newsprint(Pty) Limited, Kangra Coal (Pty) Limited, Shanduka Coal (Pty) Limited and MondiPackaging South Africa (Pty) Limited. Fees of EUR178,285 (six months ended 30June 2008: EUR166,000, year ended 31 December 2008: EUR340,000) and EURnil (sixmonths ended 30 June 2008: EUR303,000, year ended 31 December 2008: EUR392,000)were paid to Shanduka Advisors (Pty) Limited and Shanduka Resources (Pty)Limited respectively for management services provided to the Group during thesix months ended 30 June 2009. Shanduka Packaging (Pty) Limited and ShandukaNewsprint (Pty) Limited have also provided a shareholder's loan to the Group.The balance outstanding at 30 June 2009 was EUR15.5 million (at 30 June 2008: EUR14million, at 31 December 2008: EUR12.9 million) and EUR8.5 million (at 30 June 2008:EUR7 million, at 31 December 2008: EUR7.1 million), respectively. In the normalcourse of business, and on an arm's length basis, the Group purchased suppliesfrom Kangra Coal (Pty) Limited totaling EUR4.2 million (six months ended 30 June2008: EUR6 million, year ended 31 December 2008: EUR12 million) and from ShandukaCoal (Pty) Limited totaling EUR0.5 million (six months ended 30 June 2008: EURnil,year ended 31 December 2008: EURnil) during the period. EUR0.5 million (at 30 June2008: EUR1 million, at 31 December 2008: EUR1 million) remains outstanding

on thesepurchases at 30 June 2009.

Dividends received from associates for the six months ended 30 June 2009 totalling EUR0.4 million (six months ended 30 June 2008: EURnil, year ended 31 December 2008: EUR2 million), as disclosed in the condensed combined and consolidated cash flow statement.

18 Asset values per share

Asset values per share are disclosed in accordance with the JSE ListingsRequirements. Net asset value per share is defined as net assets divided by thecombined number of shares in issue as at the reporting balance sheet date, lesstreasury shares held as at the same date. Tangible net asset value per share isdefined as the net assets less intangible assets divided by the combined numberof shares in issue as at the reporting balance sheet date, less treasury sharesheld as at the same date. (Reviewed) (Reviewed) (Audited) As at 30 June As at 30 June As at 31 December 2009 2008 2008

Net asset value per share (EUR) 5.42 6.51

5.34 Tangible net asset value per share (EUR) 4.79 5.47 4.70 19 Events occurring after 30 June 2009

With the exception of the proposed interim dividend for 2009, as disclosed in note 9, there have been no material reportable events since 30 June 2009.

Production statistics Six months ended Six months ended Year ended 31 30 June 2009 30 June 2008 December 2008 Europe & International Containerboard Tonnes 836,456 965,319 1,926,829 Kraft paper Tonnes 383,373 461,754 814,187 Corrugated board and Mm(2) boxes 924 1,143 2,104 Bag converting m units 1,655 1,902 3,536 Coating and release Mm(2) liners 1,258 1,414 2,667 Uncoated fine paper Tonnes 709,433 754,364 1,452,058 Newsprint Tonnes 99,390 97,821 192,921 Total hardwood pulp Tonnes 513,666 607,356 1,012,470 Total softwood pulp Tonnes 756,960 970,356 1,620,155

External hardwood pulp Tonnes 17,098 38,171

126,479

External softwood pulp Tonnes 98,880 105,299

200,676 South Africa Containerboard Tonnes 120,989 117,449 251,944 Uncoated fine paper Tonnes 179,325 229,938 416,509 Bone dry Wood chips tonnes 197,436 364,247 780,932 Total hardwood pulp Tonnes 305,763 264,003 595,449 Total softwood pulp Tonnes 55,394 50,321 106,390

External hardwood pulp Tonnes 101,287 13,214 139,235 Mondi Packaging South Africa Packaging papers Tonnes 139,170 146,179 388,199

Corrugated board and Mm(2)

boxes 177 183 381

Total hardwood pulp Tonnes 37,583 40,147

82,554

Total softwood pulp Tonnes 22,057 34,090 43,090 Newsprint Joint Ventures (attributable share) Newsprint Tonnes 158,483 163,753 331,929 Aylesford Tonnes 96,262 99,639 200,540 Shanduka Tonnes 62,221 64,114 131,389 Total softwood pulp Tonnes Shanduka 36,450 40,816 86,464 Exchange rates Six months ended Six months ended Year ended 31 30 June 2009 30 June 2008 December 2008 Closing rates against the euro South African rand 10.89 12.34 13.07 Pounds sterling 0.85 0.79 0.95 Polish zloty 4.45 3.35 4.15 Russian rouble 43.88 36.95 41.28 US dollar 1.41 1.58 1.39 Czech koruna 25.88 23.89 26.87 Average rates for the period against the euro South African rand 12.25 11.73 12.06 Pounds sterling 0.89 0.78 0.80 Polish zloty 4.47 3.49 3.52 Russian rouble 44.08 36.61 36.45 US dollar 1.33 1.53 1.47 Czech koruna 27.13 25.21 24.97 Glossary of financial termsEBITDA Operating profit of subsidiaries and joint ventures before special items, depreciation, and amortisation. EBITDA EBITDA divided by net debt finance charges (before special financing interest items). cover Gearing The ratio of net debt to total capital employed. Group revenue Total turnover of subsidiaries and proportionate share of joint venture turnover. Headline JSE listing measure, calculated in accordance with Circular 8/2007, earnings 'Headline Earnings', as issued by the South African Institute of Chartered Accountants.

Net debt A non-GAAP measure, comprising short and medium-term borrowings and

bank overdrafts less cash and cash equivalents and current financial asset investments. Net segment Net segment assets are segment assets, consisting of property, plant assets and equipment, intangibles, forestry assets, retirement benefit surplus, inventories and operating receivables less segment liabilities consisting of non-interest-bearing current liabilities,

restoration and

decommissioning provisions and provisions for post-retirement benefits. Operating Underlying operating profit divided by Group revenue. margin Reported Reported (loss)/profit before tax but after special items (loss)/profit before tax Return on This is trailing twelve month underlying operating profit, including capital share of associates' net earnings, divided by trailing twelve month (ROCE) average trading capital employed and for segments has been extracted from management reports. Capital employed is

adjusted for

impairments in the year end spend on the two strategic

projects in

Poland and Russia, which are not yet in production. Shareholders' Share capital, share premium, retained profits and other reserves funds attributable to equity holders of the parent companies.

Special items Those non-recurring financial items which the Group believes should be

separately disclosed on the face of the combined and

consolidated

income statement to assist in understanding the underlying financial performance achieved by the Group and its businesses.

Total equity Shareholders' funds and minority interests in equity.

Trading Net segment assets plus investment in associates, deferred tax, and capital other non-operating assets and liabilities excluding financial employed investments. Underlying Net profit after tax before special items attributable to equity earnings holders of the Group. Underlying Operating profit of subsidiaries and joint ventures before special operating items. profit Underlying Reported profit before tax and special items.

profit before

tax

vendor

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Related Shares:

Mondi