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 Listings Requirements ofthe JSE Limited and/or the Disclosure and Transparency and Listing Rules of theUnited Kingdom Listing Authority. Mondi Group: Interim Management Statement 14 May 2014 This interim management statement provides an update on the financialperformance and financial position of the Group since the year ended 31December 2013, based on management accounts up to 31 March 2014 and estimatedresults for April 2014. These results have not been audited or reviewed byMondi's external auditors. Reviewed results for the half-year ending 30 June 2014 will be published on oraround 7 August 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 31 December 2013 up to the date ofthis statement. Group Performance Overview First quarter underlying operating profit of EUR183 million was 13% above thecomparable prior year period (EUR162 million), 14% above the fourth quarter of2013 (EUR161 million), and in line with management's expectations. Sales volumes were broadly in line with the comparable prior year period, andabove the previous quarter, mainly due to the scheduling of maintenance shutsin the second half of the prior year. As expected, average selling prices in Europe for all key paper grades werelower than those in both the prior year comparable period and the previousquarter, with the exception of recycled containerboard. The corrugatedpackaging business benefited from further pass through of prior period recycledcontainerboard price increases, while pricing in the South African division washigher than the comparable prior year period in equivalent currency terms. There was some increase in key input costs over the quarter, with increases inwood costs and paper for recycling affecting the European operations.Offsetting these increases is the benefit from the various energy optimisationprojects and restructuring initiatives completed during the prior year.Furthermore, in the comparable prior year period, a write-down relating to thevalue of green energy credits on hand in Poland, amounting to EUR11 million wasrecognised. There were no significant maintenance shuts during the quarter. The majority ofthe planned maintenance shuts will take place towards the end of the secondquarter and into the second half of the year. The impact of maintenance shutson annual operating profit is estimated to be between EUR50 million and EUR60million. Although there has been significant volatility in the key currencies to whichthe Group is exposed, the overall weakening trend in the Group's key operatingcurrencies against the euro yielded a marginal net benefit. The businesses inPoland and South Africa were net beneficiaries, given their significant exportexposure, but this was partially offset by the impact of the weaker Russianrouble on the Group's more domestically focused Russian businesses. While the Group remains vigilant of the ongoing political developments in theUkraine, to date they have had no material impact on the Group's operations. Divisional Overview Europe & International As anticipated, profitability of Packaging Paper was impacted by lower averageselling prices in the quarter for virgin containerboard grades and sack kraftpaper, partly offset by higher average recycled containerboard prices. Supported by good demand, price increases were announced during the quarter forunbleached kraftliner in the European markets. Negotiations with customers areongoing, with a small increase already implemented. Recycled containerboard prices came under some pressure towards the end of thequarter and into April, impacted by new capacity entering the market andfalling costs of paper for recycling. In kraft paper, average selling prices during the quarter were around 3% downon the previous quarter. Selling price increases for unbleached sack kraftpaper have since been announced on the back of a strong pick-up in demand inthe first quarter, with price increases expected to be realised in the secondhalf of the year when a number of fixed price contracts come up for renewal. In the Fibre Packaging business unit, price increases in corrugated packaginghave been realised following the recycled containerboard price increases seenin the previous quarter. Sales volumes increased versus both the comparableprior year period and the prior quarter, reflecting improving demand incorrugated packaging whilst industrial bags benefited from the milder winterand earlier than usual start to the construction season. Sales volumes in thecoatings business improved versus the prior quarter, reflecting seasonaleffects and improving consumer demand. Consumer Packaging performance has improved from a weak fourth quarter of 2013benefiting from an improved product mix, despite constrained demand and thephasing out of mature products in the films and components segment. Tradingconditions, particularly in the core European markets, remain challenging. Uncoated Fine Paper was impacted by the anticipated price erosion in theEuropean markets in the first quarter. However, good demand and tighter supplyinto European markets following significant capacity closures in the UnitedStates has encouraged the business to announce price increases of approximately5% in all European markets. The weaker Russian rouble had a detrimental impact on the profitability of theGroup's Russian business. Demand remains stable and price increases have beenimplemented in the domestic market, effective from the second quarter. South Africa Division The Division continued to benefit from good domestic demand, with sellingprices rising in local currency terms during the quarter. Further benefits wererealised from the weaker South African rand and higher fair value gains onforestry assets. Benchmark hardwood pulp sales prices came under increasingpressure during the quarter, with average euro prices around 1% lower than theprior quarter. Capital investment projects Good progress is being made on the Group's major capital investment projects,with all projects proceeding on schedule and within budget. A recent highlight was the successful commercial production of bleached kraftpaper from the new 155,000 tonne paper machine at the Steti mill in the CzechRepublic in April, meeting a strong order book. Production will be ramped upover the course of the year. Financial position Net debt of EUR1,580 million at the end of the quarter was EUR41 million lowerthan the EUR1,621 million at 31 December 2013. Strong operating cash inflowswere offset by a seasonal increase in working capital and higher capitalinvestment cash flows as a number of the Group's strategic investments reachcompletion. Finance charges were lower than that of the preceding quarter and thecomparable prior year period, primarily as a result of the lower average netdebt. The average maturity of the Group's committed debt facilities at 31 March 2014was 3.5 years. The Group had EUR787 million of committed, unutilised borrowingfacilities available at 31 March 2014. Summary The trading environment remains mixed. As anticipated selling prices for anumber of the Group's key paper grades are currently below those of the prioryear. However, fundamentals in our core markets remain generally solid andprice increases in certain grades are under discussion. Furthermore, theongoing capital investment programme is already making an importantcontribution to the profitability of the Group, with further projects on trackfor completion over the course of this year. As such, we remain confident inthe Group's ability to continue delivering an industry-leading performance. Contact details: Mondi Group David Hathorn +27 11 994 5418 Andrew King +27 11 994 5415 Lora Rossler +27 83 627 0292 FTI Consulting Richard Mountain +44 7909 684 466 Sophie McMillan +44 20 3727 1359 Editors' notes Mondi is an international packaging and paper Group, employing around 24,000people in production facilities across 30 countries. In 2013, Mondi hadrevenues of EUR6.5 billion and a ROCE of 15.3%. The Group's key operations arelocated in central Europe, Russia, the Americas and South Africa. The Mondi Group is fully integrated across the packaging and paper value chain- from the management of its own forests and the production of pulp and paper(packaging paper and uncoated fine paper), to the conversion of packaging paperinto corrugated packaging, industrial bags, extrusion coatings and releaseliner. Mondi is also a supplier of innovative consumer packaging solutions,advanced films and hygiene products components. Mondi has a dual listed company structure, with a primary listing on the JSELimited for Mondi Limited under the ticker code MND and a premium listing onthe London Stock Exchange for Mondi plc, under the ticker code MNDI. TheGroup's performance, and the responsible approach it takes to good businesspractice, has been recognised by its inclusion in the FTSE4Good Global,European and UK Index Series (since 2008) and the JSE's Socially ResponsibleInvestment (SRI) Index since 2007.

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