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 13 May 2015 This interim management statement provides an overview of the financialperformance and financial position of the Group since the year ended 31December 2014, based on management accounts up to 31 March 2015 and estimatedresults for April 2015. These results have not been audited or reviewed byMondi's external auditors. Reviewed results for the half-year ending 30 June 2015 will be published on oraround 6 August 2015. 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 2014 up to the date ofthis statement. Group Performance Overview First quarter underlying operating profit of EUR236 million was 29% above thecomparable prior year period (EUR183 million), on volume growth and lower inputcosts across most of the European businesses, good contributions from capitalprojects and acquisitions, and higher selling prices in Russia and SouthAfrica. The result was 9% above the fourth quarter of 2014 (EUR216 million). Average selling prices in Europe for all key paper grades were broadly in linewith those in the previous quarter and, with the exception of recycledcontainerboard, also in line with the comparable prior year period. Averagebenchmark recycled containerboard prices were around 6% lower than the firstquarter of 2014. On a like-for-like basis, sales volumes were up across most businesses on boththe comparable prior year period and the previous quarter. The Group benefited from generally lower input costs relative to the comparableprior year period, driven in part by currency impacts. Wood costs, paper forrecycling, resin, energy and chemicals costs were all lower than the comparableprior year period. Inflationary pressures in a number of the emerging marketsin which the Group operates are expected to increase going forward. Inaddition, the recent recovery in the oil price is expected to negatively affectthe cost of energy, resin and chemicals. The strengthening of the US dollar versus the Euro provided a net benefit tothe Group, both through translation of dollar-denominated sales and through thesupport provided to European selling prices for a number of the Group's keypaper grades. The weaker Russian rouble in the early part of the year had a netnegative impact on the domestically focused uncoated fine paper business offsetin part by the export-oriented Russian packaging paper operations. However,during the quarter, the rouble strengthened sharply from its lows. During the first quarter, the scheduled maintenance shut of the Richards Baymill in South Africa was completed. In 2014, this shut took place in the thirdquarter. Maintenance shuts are scheduled for the second quarter at the Swieciemill in Poland and at two of the Group's kraft paper mills. As previouslyindicated, the impact of maintenance shuts on annual operating profit in 2015is estimated to be around EUR80 million. Divisional Overview Europe & International Division Packaging Paper performance was supported by strong contributions from projectscommissioned over the past year, a positive contribution from the US operationsacquired in the previous year, generally lower input costs and currencybenefits. Selling prices were at similar levels to the comparable prior yearperiod and the previous quarter. Virgin containerboard price increases were implemented in southern Europetowards the end of the quarter and further increases of EUR40/tonne have sincebeen announced across Europe. Recycled containerboard price increases have alsobeen announced for implementation in the second quarter. In Kraft Paper, average selling prices during the quarter were higher thanthose in the comparable prior year period and similar to the previous quarter.Price increases for sack kraft paper have been announced in Europe forimplementation in June, although the impact is expected to be muted as a resultof the high levels of integration into Fibre Packaging. The business benefited from the ramp-up of projects completed during the prioryear, most notably the 155,000 tonne per annum bleached kraft paper machine inSteti, Czech Republic, and the 100,000 tonne per annum pulp dryer in Syktyvkar,Russia, producing softwood pulp for the open market. The Fibre Packaging business benefited from margin expansion versus thecomparable prior year period on better pricing and improved product mix due tovarious commercial excellence initiatives, supported by volume growth. Thebusiness also benefited from an improving performance from the recentlyacquired US Bags business, with the turnaround progressing according to plan. Consumer Packaging continues to show good progress with higher sales volumesand stronger margins than the comparable prior year period. Volume growth wassupported by qualification of a number of new customer projects, together withthe successful ramp-up of the plant opened in the first quarter of 2014 inChina. Margin improvement was achieved through the ongoing focus on growth inhigher margin products, in line with the business unit's strategy. Lower resinprices in the early part of the year also supported margins, although the sharpincrease in resin prices since early March will negatively impact margins inthe second quarter as product pricing adjusts with the usual three month lag. Uncoated Fine Paper benefited from higher sales volumes, higher domesticRussian prices, and lower input costs, supported by a strong contribution fromthe recently completed recovery boiler investment in Ruzomberok, Slovakia. Thiswas partially offset by lower average selling prices in Europe and negativecurrency impacts. In Russia, price increases were successfully implemented inthe early part of the year in response to rising domestic inflationarypressures driven by the sharp rouble devaluation. A partial reduction of theseincreases was implemented in April following the subsequent revaluation of therouble. In Europe, prices have stabilised, with price increases of between 2%and 3% implemented from the beginning of the second quarter. South Africa Division The South Africa Division benefited from higher average domestic sellingprices, the benefits of the stronger US dollar, gains from land sales, and ahigher than anticipated forestry revaluation gain versus the comparable prioryear period. Domestic demand for the Division's key grades was lower than theprevious quarter due to seasonal effects in uncoated fine paper and the weakerindustrial sector affecting demand for pulp and containerboard. Special items The Group continues to review and refine its portfolio. Since 31 December 2014,the intention to close a consumer packaging plant in Spain and a small kraftpaper mill in Finland was announced. In addition, restructuring of the recentlyacquired US Bags business continued. As a result, special item charges ofEUR35 million were recognised. 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. Cash flow and financing activities Cash generated by operations more than offset the cash outflows for the Group'scapital expenditure programme. Finance charges were higher than that of the preceding quarter and thecomparable prior year period, primarily due to higher Russian interest rates,while average net debt levels were broadly unchanged from those of the previousquarter. There have been no significant changes in the Group's borrowing facilitiessince 31 December 2014. On 11 May 2015, Standard & Poor's announced that it had upgraded the Group'scredit rating from BBB- to BBB stable outlook. This follows the upgrade fromMoody's Investors Service to Baa2, announced in October 2014. Summary Much depends on the macroeconomic environment. However, given the Group'srobust business model and clear strategic focus, management remains confidentof continuing to deliver industry leading performance and making good progressfor the year. Contact details: Mondi GroupDavid Hathorn +27 11 994 5418Andrew King +27 11 994 5415Lora Rossler +27 83 627 0292 FTI ConsultingRichard Mountain +44 7909 684 466Sue I Ong +44 20 3727 1340 Editors' notes We are Mondi: In touch every day Mondi is an international packaging and paper Group, employing around 25,000people across more than 30 countries. Our key operations are located in centralEurope, Russia, North America and South Africa. We offer over 100 packaging andpaper products, customised into more than 100,000 different solutions forcustomers and end consumers. In 2014, Mondi had revenues of EUR6.4 billion anda return on capital employed of 17.2%. The Mondi Group is fully integrated across the packaging and paper value chain- from managing forests and producing pulp, paper and compound plastics, todeveloping effective and innovative industrial and consumer packagingsolutions. Our innovative technologies and products can be found in a varietyof applications including hygiene components, stand-up pouches, super-strongcement bags, clever retail boxes and office paper. Our key customers are inindustries such as automotive; building and construction; chemicals; food andbeverage; home and personal care; medical and pharmaceutical; packaging andpaper converting; pet care; and office and professional printing. 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. For us, acting sustainably makes good business sense. We don't just talk aboutsustainability; we make it part of the way we work every day. We have beenincluded in the FTSE4Good Index Series since 2008 and the JSE's SociallyResponsible Investment (SRI) Index since 2007.

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