Interim Management Statement

Mondi Limited(Incorporated in the Republic of South Africa)(Registration number: 1967/013038/06)JSE share code: MND ISIN: ZAE000156550 Mondi plc(Incorporated in England and Wales)(Registered number: 6209386)JSE share code: MNP ISIN: GB00B1CRLC47LSE 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 StockExchange of matters required to be disclosed under the JSE ListingsRequirements and/or the Disclosure and Transparency and Listing Rules of theUnited Kingdom Listing Authority. Mondi Group: Interim Management Statement 6 November 2013 This interim management statement provides an update on the financialperformance and financial position of the Group since the half-year ended 30June 2013, based on management accounts up to 30 September 2013 and estimatedresults for October 2013. These results have not been audited or reviewed byMondi's external auditors. Audited results for the year ending 31 December 2013 will be published on oraround 28 February 2014. Except as discussed in this interim management statement, there have been nosignificant events or transactions impacting either the financial performanceor financial position of Mondi Group since 30 June 2013 up to the date of thisstatement. Group Performance Overview Underlying operating profit of EUR172 million for the third quarter ended 30September 2013 was 25% above the comparable prior year period (EUR138 million),the result of improved market conditions in Packaging Paper and the SouthAfrica Division and the benefits from the acquisitions completed towards theend of 2012. As previously announced, the performance for the quarter was impacted by theplanned annual maintenance shuts at a number of the Group's larger operatingsites. During the quarter, around half of the maintenance shuts scheduled forthe second half of the year were completed, primarily at the Group's largeEuropean containerboard and uncoated fine paper mills. The balance of theplanned shuts will take place during the fourth quarter. As previouslyindicated, the negative impact of these shuts on the second half 2013underlying operating profit when compared to the first half is estimated ataround EUR50 million to EUR60 million. Sales volumes were broadly in line with the comparable prior year period(adjusted for acquisitions), but below the previous quarter due to thescheduled maintenance shuts and seasonally weaker demand for uncoated finepaper. The business benefited from increased recycled containerboard pricesduring the period, with other key packaging and uncoated fine paper pricesremaining at similar levels to the previous quarter. Towards the end of thequarter, modest price declines were seen, particularly in virgin containerboardgrades, uncoated fine paper and hardwood pulp. The net impact of currency movements on underlying operating profit in thethird quarter was limited. The Group generally benefited from weaker emergingmarket production currencies to which it is exposed. These gains were largelyoffset by the effects of a stronger euro versus the US dollar impactingprofitability of US dollar denominated exports. Divisional Overview Europe & International As anticipated, profitability of Packaging Paper was impacted by the effects ofthe planned annual maintenance shuts at the Group's key containerboard millsduring the period. Selling price increases were achieved in recycled containerboard grades duringthe quarter and further price increases have been announced to take effect inthe final quarter of the year. European virgin containerboard prices weresimilar to the previous quarter but have come under modest pressure fromincreased imports on the back of the weaker US dollar and substitution by lowerpriced recycled grades. In kraft paper, European pricing and sales volumes remained relatively stablethroughout the quarter. While the important export markets also continued toperform well, the combined effects of increasing competition from otherexporters to these regions and softer demand, caused by political unrest incertain of the important Middle-East and north African markets, is a concerngoing into 2014. In the Fibre Packaging business unit, corrugated packaging remains underpressure from rising paper input costs. We expect to recover these input costincreases with the usual lag. In industrial bags, good cost control largelyoffset moderate selling price pressure in the third quarter. The fourth quarterwill be impacted by the usual seasonal slowdown. The coatings business remainschallenged by increased competitor capacity and weak demand, particularly inindustrial applications. Consumer Packaging is benefiting from further realisation of planned synergiesrelated to the Nordenia acquisition in late 2012 and other cost reductioninitiatives. We are however experiencing some volume and margin pressure inwestern Europe. Uncoated Fine Paper was impacted during the third quarter by the plannedmaintenance shuts at the Syktyvkar and Ruzomberok mills and the usual seasonalslowdown in demand. The recent increases in capacity in both France and Russiain the face of the ongoing structural decline in demand in western Europe andcyclically softer demand in Russia remain a concern. Benchmark prices at theend of the quarter were around EUR10 per tonne lower than at the close of theprevious quarter. The business benefited from ongoing cost management,particularly in the Russian forestry operations, with average wood costscontinuing to decrease. During the quarter, unutilised assets amounting to EUR9 million in theSyktyvkar mill were written off, recorded as an operating special item. South Africa Division The Division has benefited from strong domestic demand, with both sales pricesand volumes increasing during the quarter, as well as the weaker South Africanrand. The business was, however, negatively affected by lower average benchmarkhardwood pulp prices towards the end of the quarter. The maintenance shut atthe Richards Bay mill took place during October. Capital investment projects Good progress is being made on the Group's major capital investment projects.The new recovery boiler at Frantschach was commissioned during the quarter,while the new steam turbine at Richards Bay and steam turbine and recoveryboiler economiser at Stambolijski are on track for completion by the end of theyear. The other major projects are on schedule for completion during 2014 and2015. In September the Boards approved a EUR166 million investment at the MondiSwiecie mill in Poland, bringing forward the planned replacement of therecovery boiler and the mill's coal fired boilers. Expected to be completedearly in 2016, the new recovery boiler and conversion of the existing recoveryboiler to a biofuel boiler will result in a reduction in ongoing maintenancecosts, an improvement in overall energy efficiency, a reduction in CO2emissions and provide the mill with future potential capacity expansionopportunities. Financial position Net debt of EUR1,761 million at the end of the quarter reflected a decrease ofEUR83 million from EUR1,844 million at 30 June 2013. The Group benefited fromstrong operating cash inflows, offset in part by the expected ramp-up incapital expenditure and outflows from financing activities, most notably theinterim dividend in September. Finance charges were similar to those of the previous quarter and above thecomparable prior year period, reflecting the higher average net debt as aconsequence of the acquisitions completed in the fourth quarter of 2012. The average maturity of the Group's committed debt facilities at 30 September2013 was 3.8 years. The Group had EUR797 million of committed, unutilisedborrowing facilities available at 30 September 2013. Summary Management remains confident of delivering in line with its expectations forthe full year. The current low-growth environment, coupled with increased competition incertain areas of the business presents some challenges going into the new year.However, this is balanced by the expected benefits from the capital expenditureprogramme currently underway, further synergies from the large acquisitionsmade in 2012, and ongoing cost containment initiatives. Ultimately, the outlookfor 2014 remains dependent on the nature and extent of the macroeconomicrecovery and related demand for the Group's key products. Contact details: Mondi GroupDavid Hathorn +27 11 994 5418Andrew King +27 11 994 5415Lora Rossler +27 83 627 0292 FTI ConsultingRichard Mountain +44 20 7269 7186Sophie McMillan +44 20 7909 684 466 Editors' notes Mondi is an international packaging and paper Group, with production operationsacross 30 countries and revenues of EUR5.8 billion in 2012. The Group's keyoperations are located in central Europe, Russia, the Americas and South Africaand as at the end of 2012, Mondi employed 25,700 people. Mondi Group is fully integrated across the packaging and paper value chain,from the growing of wood and the production of pulp and paper (packaging paperand uncoated fine paper), to the conversion of packaging paper into corrugatedpackaging, industrial bags, extrusion coatings and release liner. Mondi is alsoa supplier of innovative consumer packaging solutions, advanced films andhygiene products components. Mondi Group has a dual listed company structure, with a primary listing on theJSE Limited for Mondi Limited under the ticker code MND and a premium listingon the London Stock Exchange for Mondi plc, under the ticker code MNDI. TheGroup has been recognised for its sustainability through its inclusion in theFTSE4Good Global, European and UK Index Series (since 2008) and the JSE'sSocially Responsible Investment (SRI) Index since 2007. The Group was alsoincluded in the Carbon Disclosure Project's (CDP) Carbon Disclosure LeadershipIndex for the third year and in CDP's Carbon Performance Leadership Index(CPLI) for the first time in 2012.

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