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MONDI PLC - Half-yearly results for the six months ended 30 June 2012

Release Date: 07/08/2012 08:00
Code(s): MNP MND     PDF:  
Wrap Text
Half-yearly results for the six months ended 30 June 2012

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: GB00B1CRLC47
LSE share code: MNDI

7 August 2012

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 Rules and Transparency Rules and/or the Listing Rules of the United
Kingdom Listing Authority.

Half-yearly results for the six months ended 30 June 2012
Highlights
   ·   Good operating performance after a challenging start to the year
   ·   Return on Capital Employed of 13.3%, in excess of the Group's through-the-cycle target of 13%
   ·   Interim dividend of 8.9 euro cents per share, up 8%
   ·   Strong cash generation of EUR353 million
   ·   Significant strategic acquisitions:
           * Swiecie minorities acquired for EUR296 million
           * EUR655 million acquisition of Nordenia agreed

Financial summary
                                                                                           Six months
                                                                Six months    Six months    ended 31
                                                                  ended 30 ended 30 June    December
EUR million, except for percentages and per share measures       June 2012          2011        2011
From continuing operations
Group revenue                                                       2,840         2,942        2,797
Underlying EBITDA(1)                                                  436           526          438
Underlying operating profit(1)                                        269           354          268
Underlying profit before tax(1)                                       217           296          216
Profit before tax                                                     223           300          157
Per share measures 
Basic underlying earnings per share                                  30.9          38.2         29.9
Basic earnings per share  alternative measure(2)(EUR cents)         30.9          41.7         30.1
Basic earnings per share from continuing operations (EUR cents)      31.7          39.0         18.5
Basic earnings per share (EUR cents)                                 31.7          41.6         24.5
Interim dividend per share (EUR cents)                                8.9          8.25
Free cash flow per share3 (EUR cents)                                 9.3          19.6         59.2
Cash generated from operations                                        353           403          514
Net debt                                                            1,273         1,200          831
Group Return on Capital Employed (ROCE )(4)                         13.3%         15.2%        15.0%

Notes:
1 The Group presents underlying EBITDA, operating profit and profit before tax as measures which exclude special items in order to provide a
  more effective comparison of the underlying financial performance between reporting periods.
2 The directors have elected to present an alternative, non-IFRS measure of earnings per share from continuing operations. As more fully set out
  in note 11 of the half-yearly financial statements, the effects of the recapitalisation and the demerger of Mpact (formerly Mondi Packaging South
  Africa) and the Mondi Limited share consolidation have been adjusted in the 2011 comparative earnings per share figures to reflect the position
  as if the transaction had been completed on 1 January 2011. This is intended to enable a more useful comparison of earnings per share from
  continuing operations, based on the consolidated number of shares.
3 Free cash flow per share is net increase in cash and cash equivalents before the effects of acquisitions and disposals of businesses and
  changes in net debt and dividends paid divided by the net number of shares in issue at the end of the reporting period.
4 ROCE is the 12 month rolling average underlying operating profit expressed as a percentage of the average rolling 12 month capital employed,
  adjusted for impairments and spend on strategic projects which are not yet in operation.

David Hathorn, Mondi Group chief executive, said:

"We are pleased to announce good results following the anticipated pick-up in trading after a
challenging start to the year. Cash generation is robust and our return on capital employed remains
above our through-the-cycle target, reflecting the strength of our low-cost operating model.

We have made significant progress on a number of strategic initiatives, most notably the acquisition
of the remaining minority interest in Swiecie and the agreement to acquire a 93.9% interest in
Nordenia. These steps build on our position as a leading international packaging and paper company
with a strong platform for continued growth in emerging markets.

The macroeconomic environment remains a concern, with continued soft demand evident in certain
western European markets. Encouragingly, demand in a number of the emerging markets to which the
Group is exposed remains firm, and positive supply side fundamentals in various of our core grades
offer price support. As such, we remain confident of delivering against our expectations for the full
year."

Contact details
Mondi Group
David Hathorn                                             +27 (0)11 994 5418
Andrew King                                               +27 (0)11 994 5415
Lora Rossler                                              +27 (0)11 994 5400 / +27 (0)83 627 0292
FTI Consulting
Richard Mountain                                          +44 20 7269 7186 / +44 20 7909 684 466
Chloe Webb                                                +27 (0)11 214 2421

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          00800 246 78 700 (toll-free) or +27 (0)11 535 3600

An online audio cast facility will be available via: www.mondigroup.com/HYResults12.

The presentation will be available online via the above website address an hour before the audio cast
commences. Questions can be submitted via the 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 mondi@kraftwerk.co.at
and you will be contacted immediately.

An audio recording of the presentation will be available on Mondi's website during the afternoon of 7 August
2012.

Editors' notes
Mondi is an international packaging and paper Group, with production operations across 28 countries and
revenues of EUR5.7 billion in 2011. The Group's key operations are located in central Europe, Russia and South
Africa and as at the end of 2011, Mondi Group employed 23,400 people.

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

The Group is principally involved in the manufacture of packaging paper, converted packaging products and
uncoated fine paper (UFP).

Mondi Group has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited
under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the
ticker code MNDI. The Group has been recognised for its sustainability through its inclusion in the
FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's Socially Responsible
Investment (SRI) Index since 2007. The Group was also included in the FTSE350 Carbon Disclosure
Leadership Index for the second year.

Forward-looking statements
This document includes (or may include) certain forward-looking statements. All statements other than
statements of historical facts included herein, including, without limitation, those regarding Mondi's financial
position, business strategy, plans and objectives of management for future operations, are forward-looking
statements. Such forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of Mondi, or industry results, to be
materially different from any future results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding
Mondi's present and future business strategies and the environment in which Mondi will operate in the future.
Among the important factors that could cause Mondi's actual results, performance or achievements to differ
materially from those in the forward-looking statements include, but are not limited to, those discussed under
Principal risks and uncertainties', below. These forward-looking statements speak only as of the date on
which they are made. Mondi expressly disclaims any obligation or undertaking to release publicly any updates
or revisions to any forward-looking statement contained herein to reflect any change in Mondi's expectations

with regard thereto or any change in events, conditions or circumstances on which any such statement is
based.

Group performance review
The Group's underlying operating profit of EUR269 million was in line with that of the second half of 2011 and
24% below that of the comparable prior year period.

Average selling prices were lower across all grades compared to both the first and second half of the prior
year.

Sales volumes were above those of the second half of the prior year, reflecting improving demand, but were
still below the volumes achieved in the first half of 2011 in certain segments, most notably kraft paper and
industrial bags.

Input costs provided some benefit with recovered fibre and pulp prices, on average, below 2011 levels.

Finance charges for the period were lower than those of the comparable prior year period mainly as a result of
the lower average net debt.

The underlying effective tax rate of 20% is consistent with that of 2011 as the Group continued to benefit from
a favourable profit mix and investment incentives, most notably in Poland.

Underlying earnings per share in the six months ended 30 June 2012 was 30.9 euro cents per share, a 26%
decrease on the basic earnings per share - alternative measure applicable to the comparable prior year period
and better than that achieved in the second half of 2011. An interim dividend of 8.9 euro cents per share, up
8% on the prior year interim dividend of 8.25 euro cents per share, has been declared.

The Group achieved a Return on Capital Employed (ROCE) of 13.3%, above the through-the-cycle target of
13%.

The Group remains strongly cash generative with cash generated from operations of EUR353 million, including
the effects of the normal seasonal pick-up in working capital in the first half of the year.

Capital expenditure of EUR112 million represents 67% of the Group's depreciation charge. An increase in capital
expenditure is expected in the second half, partly due to investment in the previously announced energy and
de-bottlenecking investment projects ramping up as well as the normal seasonal variation in capital
expenditure.

On 18 April 2012, Mondi concluded an all cash public tender offer for the shares in Mondi Swiecie that it did
not already own increasing its holding to 93.2% from 66%. On 18 May 2012, Mondi acquired the remaining
shares it did not already own. The total consideration paid by Mondi was EUR296 million.

On 2 May 2012 Mondi Swiecie S.A. acquired Saturn Management Sp. Z o.o., the company that owns the
power and heat generating plant that provides Mondi Swiecie S.A. with most of its electricity requirements and
all of its heat and steam needs, for a net cash consideration of EUR31 million and the assumption of debt of EUR57
million.

Net debt of EUR1,273 million at 30 June 2012 increased from EUR831 million at 31 December 2011, reflecting the
impact of the Mondi Swiecie acquisitions described above as well as the usual bias towards the first half of the
year in respect of cash outflows from other financing activities.

The average maturity of the Group's committed debt facilities at 30 June 2012 was 4.0 years, with unutilised
committed facilities in excess of EUR580 million.

On 11 July 2012, Mondi announced that it has agreed to acquire 93.4% of the outstanding share capital of
Nordenia International AG for a total cash consideration of EUR240 million and the assumption of debt and debt
like liabilities of EUR398 million, implying an enterprise value of EUR655 million. The transaction is subject to
customary completion conditions including the approval of certain competition authorities. On 23 July 2012,
agreement was reached to acquire a further 0.5% interest on the same completion conditions. The acquisition
is expected to be completed in the fourth quarter of 2012 and the cash consideration will be financed by
means of a new, two-year EUR250 million committed bank debt facility obtained subsequent to 30 June 2012.
Nordenia is an international supplier of innovative consumer packaging solutions and hygiene components.

Following the completion of the Nordenia acquisition, Mondi will reorganise its Europe & International Division
into four businesses: Packaging Paper; Fibre Packaging; Consumer Packaging; and Uncoated Fine Paper
(UFP). Nordenia will form part of the Consumer Packaging business. The Group's restated historical
segmental information, to reflect this reorganisation, is presented as an annexure to this half-yearly report.

Europe & International - Uncoated Fine Paper business
                                                                                  Six months
                                                       Six months    Six months     ended 31
                                                         ended 30 ended 30 June     December
EUR million                                             June 2012          2011         2011
Segment revenue                                               749           734          695
  of which inter-segment revenue                               8            13            7
EBITDA                                                        154           169          140
Underlying operating profit                                   100           118           87
Capital expenditure                                            24            33           28
Net segment assets                                          1,270         1,360        1,283
ROCE                                                        15.7%         16.9%        16.7%

The business continued to deliver a strong operating performance with ROCE of 15.7%. Underlying operating
profit of EUR100 million, 15% below the comparable prior year period, reflects primarily the effects of the annual
planned maintenance shut at Syktyvkar, which took place during June, compared to July in the previous year,
resulting in lower sales volumes and higher costs compared to the first half of 2011. Marginally lower average
net selling prices, due in part to a change in sales mix, also contributed to the lower result. Average
benchmark European uncoated fine paper prices were slightly lower than the comparable prior year period
and approximately 2% below the average prices in the second half of 2011.

Lower pulp and chemical costs benefited the business whilst energy costs increased across all mills due to
higher gas and other fuel costs. Wood costs were lower in central Europe but higher in Russia.

Planned maintenance shuts in Ruomberok and Neusiedler will take place during the third quarter of the year
as European markets enter the traditional slower summer period.

Europe & International - Corrugated business
                                                                          Six months
                                              Six months     Six months     ended 31
                                                ended 30  ended 30 June     December
EUR million                                    June 2012           2011         2011
Segment revenue                                      680            704          680
 of which inter-segment revenue                      20             34           30
EBITDA                                               100            142          109
Underlying operating profit                           65            105           73
Capital expenditure                                   22             18           26
Net segment assets                                 1,087          1,058          967
ROCE                                               14.1%          20.1%        18.5%

While ROCE remained above the Group's through the cycle target at 14.1%, the underlying operating profit of
EUR65 million was well below that of the comparable prior year period due to significantly lower average selling
prices of containerboard. Sales volumes were slightly higher over the same period.

Despite price increases implemented across all grades during the period following the lows reached in the
early part of the year, average benchmark kraftliner and recycled containerboard prices were both 12% lower
than those of the comparable prior year period. While the virgin containerboard grades showed positive price
momentum throughout the period under review, supported by capacity reductions in Europe and the stronger
US dollar, recycled containerboard grades came under pressure in the second quarter due to a combination of
lower recovered fibre costs, low demand growth and new production capacity. Price increases for white top,
virgin and recycled containerboard were announced in July. The actual price increase achieved will be subject
to individual negotiations with customers.

Average benchmark recovered fibre costs declined by approximately 6% compared to the second half of 2011
during the period, and were more than 10% lower than the comparable prior year period. Wood, pulp and
energy costs were also lower during the period whilst chemical costs increased marginally.

The planned maintenance shut for Mondi Swiecie took place during July.

The corrugated packaging business reflected a pleasing improvement in underlying operating profit, mainly
due to increased average selling prices due to product mix improvements driven by an increased focus on
customer segmentation and lower paper input costs.

Europe & International - Bags & Coatings business
                                                                               Six months
                                                    Six months    Six months     ended 31
                                                      ended 30 ended 30 June     December
EUR million                                          June 2012          2011         2011
Segment revenue                                          1,149         1,319        1,159
 of which inter-segment revenue                            22            27           19
EBITDA                                                     145           179          148
Underlying operating profit                                 96           128          100
Capital expenditure                                         47            43           67
Net segment assets                                       1,347         1,398        1,279
ROCE                                                     16.5%         17.4%        19.0%

Underlying operating profit of EUR96 million was 25% lower than the comparable prior year period but broadly in
line with the second half of 2011. ROCE remained robust at 16.5%.

Commercial downtime in the kraft paper business, taken in the second half of 2011, continued at reduced
levels into the first quarter of 2012. Full production resumed in the second quarter on the back of the end of
destocking and improved demand in export markets. Average selling prices were approximately 7% lower
than the comparable prior year period and 9% lower than the second half of 2011, reflecting the lower prices
agreed on contract volumes set in the early part of the year. Price increases were announced in the latter part
of the second quarter and are expected to take effect in the second half of the year. While the outlook for
near-term European demand continues to be uncertain, export markets remain strong, driven by a
combination of underlying demand growth and supply contraction. The business benefited from lower wood
and pulp input costs whilst energy prices were higher.

Selling prices in industrial bags were broadly in line with the comparable prior year period but demand was
weaker, particularly in southern Europe. The business benefited from lower paper input costs and an ongoing
focus on fixed costs savings.

Coatings was negatively impacted by lower sales prices and volumes versus the comparable prior year
period, although sales volumes have improved from the weaker demand seen during the second half of 2011.
Furthermore, the start-up of a new facility in the US, coupled with the related closure of an old site and
relocation of activities negatively impacted results. Consumer packaging benefited from stable demand.
Higher resin prices were successfully passed on to customers and the business also benefited from an
improved product mix.

South Africa Division
                                                              Six months
                                   Six months    Six months     ended 31
                                     ended 30 ended 30 June     December
EUR million                         June 2012          2011         2011
Segment revenue                           287           269          300
 of which inter-segment revenue           57            90           65
EBITDA                                     55            54           60
Underlying operating profit                29            27           35
Capital expenditure                        15            13           14
Net segment assets                        840           877          828
ROCE                                     9.5%          9.7%         8.9%

The underlying operating profit of EUR29 million was marginally higher than the comparable prior year period.
The business benefited from both the weaker South African rand and an increase in sales volumes and lower
operating costs, primarily due to the shift in the planned annual maintenance shut at the key Richards Bay
operations from the first half in the prior year to the third quarter in the current year. This was partially offset by
lower average selling prices, particularly for hardwood pulp and white top containerboard. A continued focus
on the domestic market and improved operating performance at Richards Bay has benefited the business
through improved margins.

In June 2012 a further 8 forestry land settlement agreements were reached. To date Mondi has signed a total
of 19 land settlements involving about 35,000 hectares of its forestry land. The settlements were reached
using a sale and lease back framework developed by Mondi and the South African Government which
ensures that title to the land is transferred to the various claimant communities, that Mondi is paid a fair price
for the land and which secures a continued fibre supply for its mills.

Newsprint
                                                              Six months
                                   Six months    Six months     ended 31
                                     ended 30 ended 30 June     December
EUR million                         June 2012          2011         2011
Segment revenue                            83            80           84
 of which inter-segment revenue            1             -            -
EBITDA                                      -             1           (6)
Underlying operating profit                (3)           (5)         (13)
Capital expenditure                         1             2            2
Net segment assets                         66           100           59
ROCE                                   (20.6%)        (9.2%)      (19.2%)

The Newsprint business made an operating loss of EUR3 million. Mondi Shanduka Newsprint benefited from
price increases during the period, which were sufficient to return the business to a modest level of profitability
in the second quarter and address electricity price increases for the year. Aylesford Newsprint was negatively
impacted by lower average selling prices as well as higher chemical and energy costs, offset by cost reduction
initiatives and a lower depreciation charge.

Financial review
Input costs
Lower input costs provided some offset to lower selling prices during the period. Lower wood costs were
experienced in general across central Europe, although this was offset by higher costs in Russia and South
Africa. Benchmark recovered fibre costs were approximately 10% lower on average than the comparable prior
year period. Prices were volatile throughout the period, increasing significantly off the lows at the end of 2011
through the first quarter, and subsequently weakening in the latter part of the period under review. Average
benchmark pulp prices were approximately 7% lower in euro terms (14% lower in US dollar terms) than the
comparable prior year period benefiting the European businesses in the Group that are net consumers of
pulp. Overall, the Group is around 95,000 tonnes long in pulp, resulting in a small negative impact on overall
Group profitability.

Higher energy costs impacted margins across the business. The coatings & consumer packaging business
benefited from lower average resin prices and other chemical input costs versus the comparable prior year
period, although prices did increase during the period under review.

Currency exposure
Currency effects were muted during the period with most production currencies at similar average levels
versus the euro to those of the second half of 2011 and weaker than levels of the comparable prior year
period. The stronger US dollar versus the euro has however had a positive impact across the Group, both on
dollar denominated exports, and due to the support offered to European pricing levels.

Non-controlling interests
Lower profitability in the Swiecie and Ruomberok mills, particularly in the first quarter of 2012, resulted in a
reduction in earnings attributable to holders of non-controlling interests in those entities. The acquisition of the
non-controlling interests in April and May in Mondi Swiecie S.A. further contributed to the reduction in earnings
attributable to holders of non-controlling interests. The full effect of this acquisition will be seen in the second
half of the year.

Special items
There were no significant special items during the period. A gain of EUR6 million was realised on the sale of land
in the South Africa Division and Mondi Shanduka Newsprint as part of their ongoing settlement of land claims.

Cash flow
Cash flow from operations of EUR353 million was negatively impacted by the lower profitability compared to the
prior year period as well as a net outflow due to increased working capital. Working capital as a percentage of
turnover increased during the period to 12.6%, due to normal seasonal effects as well as a build up of
inventory in anticipation of a number of planned maintenance shuts to take place in the second half of the
year.

Capital expenditure
Good progress is being made on the energy related investments in Syktyvkar, Stambolijski, Richards Bay and
Frantschach. The pulp dryer approved for Syktyvkar has been put on hold pending clarification of various
technical and financial parameters.

Capital expenditure in the period under review was at 67% of the Group's depreciation charge. This is
expected to increase in the second half of the year, and in subsequent years, to approximate the Group's
depreciation charge as expenditure on the various energy related investments ramps up.

Treasury and borrowings
Net debt of EUR1,273 million was EUR442 million higher than at 31 December 2011. This was impacted by the
acquisitions of both the non-controlling interest in Mondi Swiecie S.A., and of Saturn Management Sp. Z o.o.
(together EUR384 million). The net debt to trailing 12 month EBITDA ratio was 1.5 times and gearing was 31% at
30 June 2012. The Group's long-term investment grade credit ratings of Baa3 (Moody's Investor Services)
and BBB- (Standard and Poor's) were reaffirmed during the period.

In July 2012, Mondi secured a new two-year EUR250 million committed bank debt facility in order to fund the
proposed acquisition of Nordenia International AG.

Principal risks and uncertainties
It is in the nature of Mondi's business that the Group is exposed to risks and uncertainties which may have an
impact on future performance and financial results, as well as on its ability to meet certain social and
environmental objectives.

On an annual basis, the DLC executive committee and Boards conduct a formal systematic review of the most
significant risks and uncertainties and the Group's responses to those risks. These risks are assessed against
pre-determined risk tolerance limits, established by the Boards. Additional risk reviews are undertaken on an
ad-hoc basis for significant investment decisions and when changing business conditions dictate. The key
risks have been reviewed as part of the half-yearly results and remain consistent with those presented on
pages 24 and 25 of the 2011 integrated report and financial statements.

The Group believes that it has effective systems and controls in place to manage the key risks identified below
within the risk tolerance levels established by the Boards.

    ·   Mondi operates in a highly competitive environment
        The markets for paper and packaging products are highly competitive. Prices of Mondi's key products
        have experienced substantial fluctuations in the past. Furthermore, product substitution and declining
        demand in certain markets, coupled with new capacity being introduced, may have an impact on
        market prices. A downturn in trading conditions in the future may have an impact on the carrying value
        of goodwill and tangible assets and may result in further restructuring activities.

        Mondi is flexible and responsive to changing market and operating conditions and the Group's
        geographical and product diversification provide some measure of protection.

    ·   Cost and availability of a sustainable supply of fibre
        Fibre (wood, pulp, recovered paper) is Mondi's most important raw material, comprising approximately
        one-third of total input costs. Increases in the costs of any of these raw materials, or any difficulties in
        procuring a sustainable supply of wood, pulp or recovered paper in certain countries, could have an
        adverse effect on Mondi's business, operational performance or financial position.

        The Group's focus on operational performance, relatively high levels of integration and access to its
        own FSC certified virgin fibre in Russia and South Africa, serve to mitigate these risks. It is the
        Group's objective to acquire fibre (wood and pulp) from sustainable sources with internationally
        credible certification and to avoid any illegal or controversial supply.

    ·   Foreign currency exposure and exchange rate volatility
        The location of a number of the Group's significant operations in a range of different countries results
        in foreign currency exposure. Adverse currency movements and high degrees of volatility may impact
        on the financial performance and position of the Group. The most significant currency exposures are
        to the US dollar, South African rand, Russian rouble, Czech koruna, Polish zloty, Swedish krona and
        Turkish lira.

        The Group's policy is to hedge balance sheet exposures against short-term currency volatility.
        Furthermore, the Group's geographic diversification provides some level of protection.

    ·   Investments in certain countries may be adversely affected by political, economic and legal
        developments in those countries
        The Group operates in a number of countries with differing political, economic and legal systems. In
        some countries, such systems are less predictable than in countries with more developed institutional

        structures. Significant changes in the political, economic or legal landscape of any country in which
        the Group is invested may have a material effect on the Group's operations in that country.

        The Group has invested in a number of countries thereby diversifying its exposure to any single
        jurisdiction. The Group's diversified management structure ensures that business managers are able
        to closely monitor and adapt to changes in the environment in which they operate.

    ·   Employee attraction, retention and safety
        The complexity of operations and geographic diversity of the Group demands high quality,
        experienced employees in all operations.

        Appropriate reward and retention strategies are in place to attract and retain talent at all levels of the
        organisation. Mondi has a policy of working towards zero-harm. Incidents are fully investigated,
        remedial actions taken and early warning indicators used to direct preventative work. Mondi adopts
        internationally recognised safety and health management systems across all its operations.

    ·   Capital intensive operations
        Mondi operates large facilities, often in remote locations. The ongoing safety and sustainable
        operation of such sites is critical to the success of the Group.

        Mondi's management system ensures ongoing monitoring of all operations to ensure they meet the
        requisite standards and performance requirements. A structured maintenance programme is in place
        under the auspices of the Group technical director. Emergency preparedness and response
        procedures are in place and subject to periodic drills. Mondi has adequate insurance in place to cover
        material property damage, business interruption and liability risks.

Going concern
The Group's business activities, together with the factors likely to affect its future development, performance
and position are set out above. The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are described in the financial statements.

Mondi's geographical spread, product diversity and large customer base mitigate potential risks of customer or
supplier liquidity issues. Ongoing initiatives by management in implementing profit improvement initiatives
which include plant optimisation, cost-cutting, and restructuring and rationalisation activities have consolidated
the Group's leading cost position in its chosen markets. Working capital levels and capital expenditure
programmes are strictly monitored and controlled.

The Group meets its funding requirements from a variety of sources. The availability of some of these facilities
is dependent on the Group meeting certain financial covenants all of which have been complied with. Mondi
had EUR584 million of undrawn committed debt facilities as at 30 June 2012 which should provide sufficient
liquidity in the medium term. In addition, subsequent to 30 June 2012, the Group has obtained a new, two-
year EUR250 million committed bank debt facility to fund the cash consideration of the purchase of Nordenia
International AG.

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance,
including an assessment of the current macroeconomic environment, particularly in Europe, indicate that the
Group should be able to operate well within the level of its current facilities and related covenants.

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, the going concern basis continues to
be adopted in preparing the half-yearly financial statements.

Dividend
An interim dividend of 8.9 euro cents per share has been declared by the directors and will be paid on 18
September 2012 to those shareholders on the register of Mondi plc on 24 August 2012. An equivalent South
African rand interim dividend will be paid on 18 September 2012 to shareholders on the register of Mondi
Limited on 24 August 2012. The dividend will be paid from distributable reserves of Mondi Limited and of
Mondi plc, as presented in the respective company annual financial statements for the year ended 31
December 2011.

Outlook
The macroeconomic environment remains a concern, with continued soft demand evident in certain western
European markets. Encouragingly, demand in a number of the emerging markets to which the Group is
exposed remains firm, and positive supply side fundamentals in various of our core grades offer price support.
As such, we remain confident of delivering against our expectations for the full year.

Directors' responsibility statement
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 International Financial Reporting Standards and in particular with International
        Accounting Standard 34, Interim Financial Reporting';
   · the half-yearly report includes a fair review of the important events during the six months ended 30
     June 2012 and a description of the principal risks and uncertainties for the remaining six months of the
        year ending 31 December 2012; and
   · there have been no significant individual related party transactions during the first six months of the
     financial year and nor have there been any significant changes in the Group's related party
     relationships from those reported in the Group's annual financial statements for the year ended 31
     December 2011.

David Hathorn                                                    Andrew King
Director                                                         Director

6 August 2012

Independent review report to the shareholders of Mondi Limited
Introduction

We have reviewed the Group's condensed combined and consolidated financial statements for the six months
ended 30 June 2012 which comprise the condensed combined and consolidated income statement, the
condensed combined and consolidated statement of comprehensive income, the condensed combined and
consolidated statement of financial position, the condensed combined and consolidated statement of cash
flows and the condensed combined and consolidated statement of changes in equity, the summary of
significant accounting policies and other explanatory notes. Management is responsible for the preparation
and presentation of these condensed combined and consolidated financial statements in accordance with
International Accounting Standards on Interim Financial Reporting (IAS 34) and the requirements of the
Companies Act of South Africa. Our responsibility is to express a conclusion on these Group condensed
combined and consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review
of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim
financial information consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in
scope than an audit conducted in accordance with International Standards on Auditing and consequently does
not enable us to obtain assurance that we would become aware of 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 to believe that the Group's interim
condensed combined and consolidated financial statements is not prepared, in all material respects, in
accordance with International Accounting Standards on Interim Financial Reporting (IAS 34) and the
requirements of the Companies Act of South Africa.


Deloitte & Touche
Registered Auditor

Per Bronwyn Kilpatrick
Partner
Sandton

6 August 2012

Deloitte & Touche
Registered Auditors
Buildings 1 and 2, Deloitte Place, The Woodlands
Woodlands Drive, Woodmead, Sandton
Republic of South Africa

National Executive: LL Bam Chief Executive AE Swiegers Chief Operating Officer GM Pinnock Audit DL
Kennedy Risk Advisory NB Kader Tax L Geeringh Consulting & Clients & Industries JK Mazzocco Talent &
Transformation CR Beukman Finance M Jordan Strategy S Gwala Special Projects TJ Brown Chairman of
the Board MJ Comber Deputy Chairman of the Board.

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

B-BBEE rating: Level 2 contributor in terms of the Chartered Accountancy Profession Sector Code

Member of Deloitte Touche Tohmatsu Limited

Independent review report to the members of Mondi plc
We have been engaged by the Company to review the condensed combined and consolidated set of financial
statements in the half-yearly financial report for the six months ended 30 June 2012 which comprises the
condensed combined and consolidated income statement, the condensed combined and consolidated
statement of comprehensive income, the condensed combined and consolidated statement of financial
position, the condensed combined and consolidated statement of cash flows, the condensed combined and
consolidated statement of changes in equity and related notes 1 to 21. We have read the other information
contained in the half-yearly financial report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent
Auditor of the Entity' issued by the Auditing Practices Board. Our work has been undertaken so that we might
state to the Company those matters we are required to state to it in an independent review report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom'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 financial 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 financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and
Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity',
issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does
not enable us to obtain assurance that we would become aware of 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 to believe that the condensed set of
financial statements in the half-yearly financial report for the six months ended 30 June 2012 is not prepared,
in all material respects, in accordance with International Accounting Standard 34 as adopted by the European
Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.


Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom

6 August 2012

Condensed combined and consolidated income statement
for the six months ended 30 June 2012

                                                       (Reviewed)                    (Reviewed)                     (Audited)
                                               Six months ended 30 June      Six months ended 30 June
                                                          2012                          2011              Year ended 31 December 2011
                                               Before    Special     After      Before     Special     After     Before     Special     After
                                               special     items   special     special       items   special    special       items   special
EUR million                            Notes     items  (note 6)     items       items    (note 6)     items      items    (note 6)     items

Continuing operations
Group revenue                             4     2,840          -     2,840       2,942          -      2,942      5,739          -      5,739
Materials, energy and consumables
used                                          (1,500)          -   (1,500)     (1,528)          -    (1,528)    (2,998)          -    (2,998)
Variable selling expenses                       (264)          -     (264)       (257)          -      (257)      (511)          -      (511)

Gross margin                                    1,076          -    1,076        1,157          -      1,157      2,230          -      2,230
Maintenance and other indirect
expenses                                        (124)          -    (124)        (133)          -      (133)      (272)          -      (272)
Personnel costs                                 (413)          -    (413)        (417)          -      (417)      (808)         (4)     (812)
Other net operating expenses                    (103)          -    (103)         (81)          1       (80)      (186)         (2)     (188)
Depreciation, amortisation and 
impairments                                     (167)          -    (167)        (172)          -      (172)     (342)         (48)     (390)

Operating profit/(loss)                 4/5       269          -      269          354          1        355       622         (54)      568
Non-operating special items               6         -          6        6            -          3          3         -          (1)      (1)
Net income from associates                          1          -        1            2          -          2         1           -         1

Total profit/(loss) from operations
and associates                                    270          6      276          356          4        360       623         (55)      568
Net finance costs                                 (53)         -     (53)         (60)          -       (60)     (111)           -     (111)
 Investment income                                  6          -        6           15          -         15        30           -        30
 Foreign currency losses                           (3)         -      (3)          (2)          -        (2)         -           -         -
 Finance costs                            7       (56)         -     (56)         (73)          -       (73)     (141)           -     (141)

Profit/(loss) before tax                          217          6      223          296          4        300       512         (55)      457
Tax (charge)/credit                       8       (43)       (2)     (45)         (59)          -       (59)     (102)           2     (100)

Profit/(loss) from continuing
operations                                        174         4       178          237          4        241       410         (53)      357
 

Discontinued operation
Profit from discontinued operation        9                             -                                 13                             43

Profit for the financial period/year                                  178                                254                            400

Attributable to:
 Non-controlling interests                                             25                                 42                             70
 Equity holders of the parent
 companies                                                            153                                212                            330

Condensed combined and consolidated income statement
for the six months ended 30 June 2012 (continued)

                                                    (Reviewed)                  (Reviewed)                    (Audited)
                                             Six months ended 30 June    Six months ended 30 June
                                     Notes             2012                        2011              Year ended 31 December 2011

Earnings per share (EPS) for
profit attributable to equity
holders of the parent companies

From continuing operations
Basic EPS                (EUR cents)     10                         31.7                        39.0                         57.5
Diluted EPS              (EUR cents)     10                         31.6                        38.5                         56.8

Basic underlying EPS     (EUR cents)     10                         30.9                        38.2                         68.1
Diluted underlying EPS   (EUR cents)     10                         30.8                        37.7                         67.3

From continuing and
discontinued operations

Basic EPS                (EUR cents)     10                         31.7                        41.6                         66.1
Diluted EPS              (EUR cents)     10                         31.6                        41.0                         65.3

Basic headline EPS       (EUR cents)     10                         30.9                        39.4                         69.9
Diluted headline EPS     (EUR cents)     10                         30.8                        38.9                         69.1

Condensed combined and consolidated statement of comprehensive income
for the six months ended 30 June 2012

                                                                                       (Reviewed)      (Reviewed)      (Audited)
                                                                                       Six months      Six months
                                                                                    ended 30 June   ended 30 June   Year ended 31
EUR million                                                                                  2012            2011   December 2011

Profit for the financial period/year                                                          178             254             400
Other comprehensive income
Items that may subsequently be reclassified to the combined and consolidated
income statement:
  Effect of cash flow hedges                                                                    3               5              12
  Exchange differences on translation of foreign operations                                    48            (84)           (196)
  Share of other comprehensive income of associates                                             -             (1)             (1)
  Tax effect thereof                                                                            -             (1)             (4)
Items that will not subsequently be reclassified to the combined and consolidated
income statement:
  Actuarial losses on post-retirement benefit schemes                                         (35)            (1)            (18)
  Surplus restriction on post-retirement benefit schemes                                        23            (1)             (3)
  Tax effect thereof                                                                             1              -               4
Other comprehensive income for the financial period/year, net of tax                            40           (83)           (206)
Total comprehensive income for the financial period/year                                       218            171             194
Attributable to:
 Non-controlling interests                                                                      36             33              43
 Equity holders of the parent companies                                                        182            138             151

Condensed combined and consolidated statement of financial position
as at 30 June 2012

                                                                                    (Reviewed)     (Reviewed)       (Audited)
                                                                                As at 30 June   As at 30 June        As at 31
EUR million                                                               Notes          2012            2011   December 2011

Intangible assets                                                                         243             241             238
Property, plant and equipment                                                           3,454           3,625           3,377
Forestry assets                                                                           306             299             297
Investments in associates                                                                  12              12              10
Financial asset investments                                                                40              31              33
Deferred tax assets                                                                         5              11               5
Retirement benefits surplus                                                 13              6              12               8
Derivative financial instruments                                                            2               -               3

Total non-current assets                                                                4,068           4,231           3,971

Inventories                                                                               666             726             637
Trade and other receivables                                                               936             959             829
Current tax assets                                                                          5               8               6
Financial asset investments                                                                 -               -               1
Cash and cash equivalents                                                 17b-c            60              33             191
Derivative financial instruments                                                            5               4              10
Assets held for sale
  Continuing operations                                                     16                -             1                -
  Discontinued operation                                                     9                -           495                -

Total current assets                                                                    1,672           2,226           1,674

Total assets                                                                            5,740           6,457           5,645

Short-term borrowings                                                      17c           (319)          (485)           (286)
Trade and other payables                                                                 (884)          (989)           (891)
Current tax liabilities                                                                   (81)           (84)            (78)
Provisions                                                                                (34)           (45)            (43)
Derivative financial instruments                                                           (5)            (4)             (8)

Total current liabilities                                                              (1,323)        (1,607)         (1,306)

Medium and long-term borrowings                                            17c         (1,014)          (748)           (737)
Retirement benefits obligation                                              13           (217)          (196)           (202)
Deferred tax liabilities                                                                 (317)          (326)           (310)
Provisions                                                                                (33)           (36)            (35)
Derivative financial instruments                                                           (1)           (10)               -
Other non-current liabilities                                                             (20)           (20)            (20)
Liabilities directly associated with assets classified as held for sale
 Discontinued operation                                                      9                -         (248)                -

Total non-current liabilities                                                          (1,602)        (1,584)         (1,304)

Total liabilities                                                                      (2,925)        (3,191)         (2,610)

Net assets                                                                              2,815           3,266           3,035

Equity
Ordinary share capital and stated capital                                                 542             646             542
Retained earnings and other reserves                                                    1,973           2,168           2,044

Total attributable to equity holders of the parent companies                            2,515           2,814           2,586
Non-controlling interests in equity                                                       300             452             449

Total equity                                                                            2,815           3,266           3,035

Condensed combined and consolidated statement of financial position
as at 30 June 2012 (continued)
The Group's condensed combined and consolidated financial statements, and related notes 1 to 21, were
approved by the Boards and authorised for issue on 6 August 2012 and were signed on their behalf by:


David Hathorn                                        Andrew King
Director                                             Director

Mondi Limited company registration number:           1967/013038/06

Mondi plc company registered number:                 6209386

Condensed combined and consolidated statement of cash flows
for the six months ended 30 June 2012

                                                                                        (Reviewed)      (Reviewed)      (Audited)
                                                                                        Six months      Six months
                                                                                     ended 30 June   ended 30 June  Year ended 31
EUR million                                                                  Notes            2012            2011  December 2011

Cash generated from operations                                                17a              353             403            917
Dividends from associates                                                                        -               -              2
Income tax paid                                                                               (45)            (45)           (85)

Net cash generated from operating activities                                                   308             358            834

Cash flows from investing activities
Investment in property, plant and equipment                                                  (109)           (126)          (263)
Investment in intangible assets                                                                (3)             (1)            (5)
Proceeds from the disposal of property, plant and equipment and intangible
assets                                                                                           5               7              9
Investment in forestry assets                                                                 (29)            (23)           (42)
Investment in financial asset investments                                                      (4)             (7)           (13)
Proceeds from the sale of financial asset investments                                            4               7              8
Acquisition of subsidiaries, net of cash and cash equivalents                  15             (34)            (12)           (12)
Acquisition of associates, net of cash and cash equivalents                                      -              -             (2)
Proceeds from the disposal of subsidiaries, net of cash and cash
equivalents                                                                                      1             14              17
Disposal of discontinued operation's cash and cash equivalents                                   -              -            (38)
Loan advances to related parties                                                               (8)             (1)              -
Loan repayments from/(advances to) external parties                                              -               1            (1)
Interest received                                                                                2               5              9
Other investing activities                                                                       -               -              2

Net cash used in investing activities                                                        (175)           (136)          (331)

Cash flows from financing activities
Repayment of short-term borrowings                                            17c             (52)            (13)          (135)
Proceeds from medium and long-term borrowings                                 17c              291              13            123
Repayment of medium and long-term borrowings                                  17c             (51)           (112)          (127)
Interest paid                                                                                 (60)            (75)          (106)
Dividends paid to non-controlling interests                                    12             (29)            (40)           (43)
Dividends paid to equity holders of the parent companies                       12             (85)            (86)          (126)
Purchases of treasury shares                                                                  (34)             (7)           (12)
Non-controlling interests bought out                                           14            (296)             (1)            (1)
Net realised gain on cash and asset management swaps                                             2               -              9
Other financing activities                                                                       -               2            (1)

Net cash used in financing activities                                                        (314)           (319)          (419)

Net (decrease)/increase in cash and cash equivalents                                         (181)            (97)             84

Cash and cash equivalents at beginning of financial period/year1              17c              117              24             24
Cash movement in the financial period/year                                    17c            (181)            (97)             84
Reclassification of discontinued operation                                    17c                -            (23)              -
Effects of changes in foreign exchange rates                                  17c              (1)              3               9

Cash and cash equivalents at end of financial period/year1                                    (65)            (93)            117

Note:

1 Cash and cash equivalents' includes overdrafts and cash flows from disposal groups and is reconciled to the condensed combined and
   consolidated statement of financial position in note 17c.

Condensed combined and consolidated statement of changes in equity
for the six months ended 30 June 2012

                                                                                            Total
                                                Combined                          attributable to
                                           share capital                           equity holders
                                              and stated    Retained      Other     of the parent  Non-controlling     Total
EUR million                                      capital    earnings   reserves(1)      companies        interests    equity

At 1 January 2011                                    646       1,916        201             2,763              461     3,224
Dividends paid                                         -        (86)          -              (86)             (40)     (126)
Total comprehensive income for the
financial period                                       -        212        (74)               138               33       171
Issue of shares under employee share
schemes                                                -          7         (7)                 -                -        -
Purchases of treasury shares                           -        (7)          -                (7)                -       (7)
Non-controlling interests bought out                   -          1          -                  1              (2)       (1)
Other                                                  -          -          5                  5               -          5

At 30 June 2011                                     646       2,043        125              2,814              452     3,266

Dividends paid                                         -        (40)         -               (40)              (3)      (43)
Effect of dividend in specie distributed           (104)       (101)         -              (205)                -     (205)
Total comprehensive income for the
financial period                                       -        118      (105)                 13               10        23
Issue of shares under employee share
schemes                                                -          5        (5)                  -                -         -
Purchases of treasury shares                           -        (5)          -                (5)                -       (5)
Disposal of treasury shares                            -          4          -                  4                -         4
Disposal of discontinued operation                     -          -        (5)                (5)              (6)      (11)
Disposal of businesses                                 -          -        (1)                (1)                -       (1)
Non-controlling interests bought out                   -          4          -                  4              (4)         -
Reclassification                                       -         13       (13)                  -                -         -
Other                                                  -          -          7                  7                -         7

At 31 December 2011                                  542      2,041          3              2,586              449     3,035

Dividends paid                                         -       (85)          -               (85)             (29)     (114)
Total comprehensive income for the 
financial period                                       -        153         29                182               36       218
Issue of shares under employee share
schemes                                                -          9         (9)                 -                -         -
Purchases of treasury shares                           -       (34)           -              (34)                -      (34)
Non-controlling interests bought out                   -      (140)           -             (140)            (156)     (296)
Other                                                  -          -           6                 6               -          6

At 30 June 2012                                      542      1,944          29             2,515              300     2,815

Note:
1 Other reserves consist of the share-based payment reserve in surplus of EUR14 million (six months ended 30 June 2011: EUR15 million; year ended
  31 December 2011: EUR17 million), cumulative translation adjustment reserve in deficit of EUR171 million (six months ended 30 June 2011: EUR107
  million; year ended 31 December 2011: EUR208 million), cash flow hedge reserve in surplus of EUR1 million (six months ended 30 June 2011: deficit
  of EUR7 million; year ended 31 December 2011: deficit of EUR2 million), post-retirement benefit reserve in deficit of EUR67 million (six months ended 30
  June 2011: EUR41 million; year ended 31 December 2011: EUR56 million), merger reserve in surplus of EUR259 million (six months ended 30 June 2011:
  EUR259 million; year ended 31 December 2011: EUR259 million) and other sundry reserves in deficit of EUR7 million (six months ended 30 June 2011:
  surplus of EUR6 million; year ended 31 December 2011: deficit of EUR7 million).

Notes to the condensed combined and consolidated financial statements
for the six months ended 30 June 2012

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 the DLC structure is such that Mondi Limited and its
subsidiaries, and Mondi plc and its subsidiaries, operate together as a single economic entity through a
sharing agreement, with neither parent entity assuming a dominant role. Accordingly, Mondi Limited and
Mondi plc are reported on a combined and consolidated basis as a single reporting entity under International
Financial Reporting Standards (IFRS).

The condensed combined and consolidated half-yearly financial information for the six months ended 30 June
2012 has been prepared in accordance with IAS 34, Interim Financial Reporting'. It should be read in
conjunction with the Group's annual financial statements for the year ended 31 December 2011, prepared in
accordance with IFRS as issued by the International Accounting Standards Board (IASB). The Group has also
complied with South African Statements and Interpretations of Statements of Generally Accepted Accounting
Practice.

There are no differences for the Group in applying IFRS as issued by the IASB and IFRS as adopted by the
European Union (EU) and therefore the Group also complies with Article 4 of the EU IAS Regulation. The
condensed combined and consolidated financial statements have been prepared on a going concern basis as
discussed in the business review, under the heading Going concern'.

The information for the year ended 31 December 2011 does not constitute statutory accounts as defined by
section 434 of the UK Companies Act 2006. A copy of the statutory accounts for that year has been delivered
to the Registrar of Companies. The auditor's report on those accounts was unqualified, did not draw attention
to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the UK
Companies Act 2006.

These financial statements have been prepared under supervision of the Group Chief Financial Officer,
Andrew King CA (SA), as required by Section 29(1)(e)(ii) of the Companies Act of South Africa 2008.

2       Accounting policies
The same accounting policies, methods of computation and presentation have been followed in the
preparation of the condensed combined and consolidated financial statements as were applied in the
preparation of the Group's annual financial statements for the year ended 31 December 2011.

The condensed combined and consolidated financial statements have been prepared on the historical cost
basis, except for the revaluation of certain properties and financial instruments. Historical cost is generally
based on the fair value of the consideration given in exchange for assets.

3       Seasonality
The seasonality of the Group's operations has no significant impact on the condensed combined and
consolidated financial statements.

4     Operating segments
Operating segment revenues

                                      (Reviewed)                        (Reviewed)                            (Audited)
                             Six months ended 30 June 2012     Six months ended 30 June 2011        Year ended 31 December 2011
                            Segment     Internal   External    Segment     Internal   External     Segment     Internal   External
EUR million                 revenue    revenue(1)  revenue(2)  revenue   revenue(1)   revenue(2)   revenue    revenue(1) revenue(2)

Europe & International
 Uncoated Fine Paper            749         (8)         741        734         (13)        721       1,429         (20)      1,409
 Corrugated                     680        (20)         660        704         (34)        670       1,384         (64)      1,320
 Bags & Coatings              1,149        (22)       1,127      1,319         (27)      1,292       2,478         (46)      2,432
 Intra-segment
 elimination                    (50)         50            -      (73)          73             -     (129)         129             -

Total Europe &
International                 2,528            -      2,528      2,684          (1)      2,683       5,162          (1)      5,161

South Africa Division           287        (57)         230        269         (90)        179         569       (155)         414
Newsprint businesses             83         (1)          82         80            -         80         164           -         164

Segments total                2,898        (58)       2,840      3,033         (91)      2,942       5,895       (156)       5,739
Inter-segment elimination       (58)         58           -        (91)          91          -       (156)         156           -

Group total                   2,840            -      2,840      2,942            -      2,942       5,739            -      5,739

Notes:
1 Inter-segment transactions are conducted on an arm's length basis.
2 The description of each business segment reflects the nature of the main products they sell. In certain instances the business segments sell
  minor volumes of other products and due to this reason the external segment revenues will not necessarily reconcile to the external revenues by
  type of product presented below.

External revenue by product type
                                   (Reviewed)    (Reviewed)      (Audited)
                                   Six months    Six months Year ended 31
                                     ended 30 ended 30 June      December
EUR million                         June 2012          2011          2011

Products
Corrugated products                      697           686          1,369
Uncoated fine paper                      687           684          1,337
Kraft paper & industrial bags            630           716          1,350
Coatings & consumer packaging            414           479            881
Pulp                                     140           125            263
Newsprint                                130           123            251
Woodchips                                 28            25             60
Merchant                                  21            14             41
Other1                                    93            90            187

Group total                            2,840         2,942          5,739

Note:
1 Revenues derived from product types that are not individually material are classified as other.

External revenue by location of customer
                                           (Reviewed)    (Reviewed)      (Audited)
                                           Six months    Six months Year ended 31
                                             ended 30 ended 30 June     December
EUR million                                 June 2012          2011         2011

Revenue
Africa
 South Africa1                                   197           129            303
 Rest of Africa                                  122           137            268

Africa total                                     319           266            571

Western Europe
 Germany                                         383           420            810
 United Kingdom1                                 138           145            278
 Rest of western Europe                          731           821          1,529

Western Europe total                           1,252         1,386          2,617

Emerging Europe                                  569           584          1,144
Russia                                           291           281            556
North America                                    124           130            243
South America                                     21            15             30
Asia and Australia                               264           280            578

Group total                                    2,840         2,942          5,739

Note:
1 These revenues, which total EUR335 million (six months ended 30 June 2011: EUR274 million; year ended 31 December 2011: EUR581 million), are
  attributable to the countries in which the Group's parent entities are domiciled.

External revenue by location of production
                                             (Reviewed)    (Reviewed)      (Audited)
                                             Six months    Six months Year ended 31
                                               ended 30 ended 30 June      December
EUR million                                   June 2012          2011          2011

Revenue
Africa
 South Africa1                                     323           281            617
 Rest of Africa                                      5             4             10

Africa total                                       328           285            627

Western Europe
 Austria                                           526           593          1,110
 United Kingdom1                                    75            67            147
 Rest of western Europe                            520           572          1,090

Western Europe total                             1,121         1,232          2,347

Emerging Europe
 Poland                                            382           406            794
 Rest of emerging Europe                           544           568          1,075

Emerging Europe total                              926           974          1,869

Russia                                             359           355            703
North America                                       89            81            159
Asia and Australia                                  17            15             34

Group total                                      2,840         2,942          5,739

Note:
1 These revenues, which total EUR398 million (six months ended 30 June 2011: EUR348 million; year ended 31 December 2011: EUR764 million), are
  attributable to the countries in which the Group's parent entities are domiciled.

There are no external customers which account for more than 10% of the Group's total external revenue.

Operating profit/(loss) from continuing operations before special items
                                                                    (Reviewed)    (Reviewed)      (Audited)
                                                                    Six months    Six months  Year ended 31
                                                                      ended 30 ended 30 June       December
EUR million                                                          June 2012          2011           2011

Europe & International
 Uncoated Fine Paper                                                       100           118            205
 Corrugated                                                                 65           105            178
 Bags & Coatings                                                            96           128            228

Total Europe & International                                               261           351            611
 
South Africa Division                                                       29            27             62
Newsprint businesses                                                       (3)           (5)           (18)
Corporate & other businesses                                              (18)          (19)           (33)
 
Segments total                                                             269           354            622
Special items (see note 6)                                                   6             4           (55)
Net income from associates                                                   1             2              1
Net finance costs                                                          (53)          (60)         (111)
  
Group profit from continuing operations before tax                         223           300            457

Earnings before interest, tax, depreciation and amortisation (EBITDA)
                                                                  (Reviewed)    (Reviewed)      (Audited)
                                                                  Six months    Six months Year ended 31
                                                                    ended 30 ended 30 June      December
EUR million                                                        June 2012          2011          2011

Europe & International
 Uncoated Fine Paper                                                    154            169           309
 Corrugated                                                             100            142           251
 Bags & Coatings                                                        145            179           327

Total Europe & International                                            399            490           887

South Africa Division                                                     55            54           114
Newsprint businesses                                                       -             1           (5)
Corporate & other businesses                                            (18)          (19)          (32)

Group and segments total from continuing operations                     436            526            964

Operating margin1
                                                                          (Reviewed)      (Reviewed)     (Audited)
                                                                                                          As at 31
                                                                        As at 30 June   As at 30 June     December
%                                                                                2012            2011         2011

Europe & International
 Uncoated Fine Paper                                                             13.4           16.1          14.3
 Corrugated                                                                       9.6           14.9          12.9
 Bags & Coatings                                                                  8.3            9.7           9.2
South Africa Division                                                            10.1           10.0          10.9
Newsprint businesses                                                            (3.6)          (6.3)        (11.0)
Group                                                                            9.5            12.0         10.8


Note:
1
  Operating margin is underlying operating profit divided by revenue.


Return on capital employed (ROCE)1
                                                                          (Reviewed)      (Reviewed)      (Audited)
                                                                                                           As at 31
                                                                        As at 30 June   As at 30 June      December
%                                                                                2012            2011          2011

Europe & International
 Uncoated Fine Paper                                                             15.7            16.9          16.7
 Corrugated                                                                      14.1            20.1          18.5
 Bags & Coatings                                                                 16.5            17.4          19.0
South Africa Division                                                             9.5             9.7           8.9
Newsprint businesses                                                           (20.6)           (9.2)        (19.2)
Group                                                                            13.3            15.2          15.0

Note:
1 Return on capital employed (ROCE) is trailing 12 month underlying operating profit, including share of associates' net income, divided by trailing
  12 month average trading capital employed and for segments has been extracted from management reports. Capital employed is adjusted for
  impairments in the year and spend on strategic projects which are not yet in production.

Operating segment assets
                                                 (Reviewed)                 (Reviewed)                       (Audited)
                                             As at 30 June 2012         As at 30 June 2011           As at 31 December 2011
                                                                                             Net                            Net
                                             Segment    Net segment     Segment          segment         Segment        segment
EUR million                                   assets(1)      assets     assets(1)         assets         assets1         assets

Europe & International
 Uncoated Fine Paper                           1,469          1,270       1,553            1,360           1,473          1,283
 Corrugated                                    1,300          1,087       1,286            1,058           1,215            967
 Bags & Coatings                               1,727          1,347       1,839            1,398           1,640          1,279
 Intra-segment elimination                       (59)             -         (56)               -            (87)             -

Total Europe & International                   4,437          3,704       4,622            3,816           4,241          3,529
 
South Africa Division                            978            840       1,015              877             964            828
Newsprint businesses                              95             66         130              100              94             59
Corporate & other businesses                       8              9          10               10               6              3
Inter-segment elimination                       (32)              -        (52)                -            (40)              -

Segments total                                 5,486          4,619       5,725            4,803           5,265          4,419
Unallocated:
 Discontinued operation                            -              -         495              247               -              -
 Investments in associates                        12             12          12               12              10             10
 Deferred tax assets/(liabilities)                 5          (312)          11            (315)               5          (305)
 Other non-operating assets/(liabilities)(2)     137          (271)         150            (312)             140          (291)
 
Group trading capital employed                 5,640          4,048       6,393           4,435            5,420          3,833
Financial asset investments                       40             40          31              31               33             33
Net debt                                          60        (1,273)          33         (1,200)              192          (831)

Group assets                                   5,740          2,815       6,457           3,266            5,645          3,035

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 Other non-operating assets consist of derivative assets, current income tax receivables, other non-operating receivables and assets held for
  sale. Other non-operating liabilities consist of derivative liabilities, non-operating provisions, current income tax liabilities, other non-operating
  payables and deferred income, and liabilities directly associated with assets classified as held for sale.

Additions to non-current non-financial assets
                                 Additions to non-current non-financial assets(1)       Capital expenditure cash payments(2)
                                  (Reviewed)        (Reviewed)          (Audited)   (Reviewed)       (Reviewed)        (Audited)
                                  Six months         Six months    Year ended 31    Six months       Six months    Year ended 31
                                    ended 30      ended 30 June         December      ended 30    ended 30 June         December
EUR million                        June 2012               2011             2011     June 2012             2011             2011

Europe & International
 Uncoated Fine Paper                      21                21               51             24              33                61
 Corrugated                              115                19               43             22              18                44
 Bags & Coatings                          47                53              120             47              43               110

Total Europe & International             183                93              214             93              94               215

South Africa Division                     42               34               66             15              13                27
Newsprint businesses                       3                4                7              1               2                 4

Segments total                           228               131              287            109             109               246
Unallocated:
 Discontinued operation                     -              18               18               -             17                17

Group total                              228               149              305            109             126               263

Notes:
1 Additions to non-current non-financial assets reflect cash payments and accruals in respect of additions to property, plant and equipment,
  intangible assets and forestry assets and include interest capitalised as well as additions resulting from acquisitions through business
  combinations. Additions to non-current non-financial assets, however, exclude additions to deferred tax assets, retirement benefits surplus and
  non-current financial assets.
2 Capital expenditure cash payments exclude business combinations, interest capitalised and investments in intangible and forestry assets.

5    Write-down of inventories to net realisable value
                                                                                 (Reviewed)    (Reviewed)      (Audited)
                                                                                 Six months    Six months Year ended 31
                                                                                   ended 30 ended 30 June      December
EUR million                                                                       June 2012          2011          2011

Combined and consolidated income statement
From continuing operations
Write-downs of inventories to net realisable value                                      (9)           (9)          (15)
Aggregate reversal of previous write-downs of inventories                                 3             4             4


6    Special items
                                                                                 (Reviewed)    (Reviewed)      (Audited)
                                                                                 Six months    Six months Year ended 31
                                                                                   ended 30 ended 30 June      December
EUR million                                                                       June 2012          2011          2011

Operating special items
Asset impairments                                                                         -             -           (48)
Restructuring and closure costs
 Restructuring and closure costs excluding related personnel costs                        -           (1)            (5)
 Personnel costs relating to restructuring                                                -             -            (4)
 Reversal of restructuring and closure costs excluding related personnel costs            -             2              3

Total operating special items                                                             -             1           (54)

Non-operating special items
Profit/(loss) on disposals                                                               6              3            (1)

Total non-operating special items                                                        6              3            (1)

Total special items from continuing operations before tax and non-controlling
interests                                                                                 6             4          (55)
Tax                                                                                     (2)             -             2
Non-controlling interests                                                                 -             -             -

Total special items attributable to equity holders of the parent companies               4              4          (53)

Special items from continuing operations before tax and non-controlling interests by operating
segment

                                                                         (Reviewed)    (Reviewed)      (Audited)
                                                                         Six months    Six months Year ended 31
                                                                           ended 30 ended 30 June     December
EUR million                                                               June 2012          2011         2011

Europe & International
 Uncoated Fine Paper                                                              -             2             2
 Corrugated                                                                       -             3             3
 Bags & Coatings                                                                  -           (1)          (27)

Total Europe & International                                                      -             4          (22)

South Africa Division                                                            5              -             -
Newsprint businesses                                                             1              -          (33)

Group and segments total from continuing operations                              6              4          (55)

Non-operating special items
A gain of EUR6 million was realised on the sale of land in South Africa Division and Mondi Shanduka Newsprint
as part of their ongoing settlement of land claims. The settlements were reached using the sale and leaseback
framework developed by Mondi and the South African Government which ensures that title to the land is
transferred to the claimant, that Mondi is paid a fair price for the land and secures a continued fibre supply for
its mills.

7    Finance costs
                                                                          (Reviewed)    (Reviewed)      (Audited)
                                                                          Six months    Six months Year ended 31
                                                                            ended 30 ended 30 June     December
EUR million                                                                June 2012          2011         2011

From continuing operations
Total interest expense                                                          (56)          (74)         (141)
Less: interest capitalised                                                         -             1             -

Total finance costs from continuing operations                                  (56)          (73)         (141)


8     Tax charge
                                                                          (Reviewed)    (Reviewed)      (Audited)
                                                                          Six months    Six months Year ended 31
                                                                            ended 30 ended 30 June     December
EUR million                                                                June 2012          2011         2011

From continuing operations
UK corporation tax at 24.5% (2011: 26.5%)                                         -              -             1
SA corporation tax at 28% (2011: 28%)                                            11              4             7
Overseas tax                                                                     38             51            84

Current tax (including tax on special items from continuing operations)          49             55            92
Deferred tax                                                                     (4)             4             8

Total tax charge from continuing operations                                      45             59           100

The Group's estimated effective annual rate of tax from continuing operations before special items for the six
months ended 30 June 2012, calculated on profit from continuing operations before tax before special items
and including net income from associates, is 20% (six months ended 30 June 2011: 20%; year ended 31
December 2011: 20%). The Group continues to benefit from tax incentives granted in certain countries in
which the Group operates, most notably Poland.

9    Discontinued operation
On 30 June 2011, the Mondi Group shareholders approved a special resolution to separate the Group's
interest in Mondi Packaging South Africa (MPSA) via a demerger in terms of which all the ordinary shares in
MPSA held by Mondi Limited were distributed to the Mondi Limited ordinary shareholders by way of a dividend
in specie. MPSA was listed on 11 July 2011 under a new name, Mpact Limited (Mpact), on the securities
exchange operated by the JSE Limited (JSE).

Subsequent to the demerger, a consolidation of the Mondi Limited ordinary shares owned by Mondi Limited
shareholders, the effect of which was to reduce their proportionate interest in the Mondi Group, was
undertaken in order to compensate Mondi plc shareholders for the value distributed to Mondi Limited
shareholders in terms of the demerger.

The result of the Mondi Limited share consolidation was that the number of Mondi Limited shares in issue
reduced from 147 million to 118 million and the total number of Mondi shares in issue reduced from 514
million to 486 million.

Prior to the demerger, Mpact paid interest of EUR13 million for the six months ended 30 June 2011 (year ended
31 December 2011: EUR13 million) to Mondi Limited in respect of intercompany financing provided, which
eliminated on consolidation and thus was not taken into consideration in the tables below.

The results of the discontinued operation were:

                                                         (Reviewed)      (Audited)
                                                         Six months Year ended 31
                                                      ended 30 June      December
EUR million                                                    2011          2011

Revenue                                                        296            296
Expenses                                                     (283)          (282)

Profit before tax                                               13             14
Related tax charge                                               -              -

Profit after tax from discontinued operation                    13             14

Gain on distribution of discontinued operation                    -            29
Related tax charge                                                -             -

Net gain on distribution of discontinued operation                -            29

Total profit attributable to discontinued operation             13             43

Attributable to:
Non-controlling interests                                        -              -
Equity holders of the parent companies                          13             43

Earnings per share from the discontinued operation were (see note 10):

                                                                                                     (Reviewed)      (Audited)
                                                                                                     Six months Year ended 31
                                                                                                  ended 30 June      December
EUR cents per share                                                                                        2011          2011

Profit from discontinued operation for the financial period/year attributable to equity holders
of the parent companies
Basic EPS                                                                                                  2.6            8.6
Diluted EPS                                                                                                2.5            8.5

Details of the disposal group and assets held for sale of the discontinued operation as at 30 June 2011 were:

                                                                                   Six months      
                                                                                ended 30 June      
Non-current assets
Current assets                                                                            273
                                                                                          222      
Total assets classified as held for sale                                                  495      
Current liabilities
Non-current liabilities                                                                 (115)
                                                                                        (133)      
Total liabilities directly associated with assets classified as held for sale           (248)      
Net assets                                                                                247      


Details of the discontinued operation disposed were:                                                                 
                                                                                                         (Audited)   
                                                                                                     Year ended 31
                                                                                                          December   
EUR million                                                                                                   2011   
Net assets disposed                                                                                            181   
Cumulative translation adjustment reserve realised
Non-controlling interests disposed                                                                             (5)
                                                                                                               (6)   
Net carrying value of discontinued operation distributed                                                       170   
Dividend in specie distributed to Mondi Limited shareholders                                                   205   
Net carrying value of discontinued operation distributed                                                     (170)   
Fair value gain on discontinued operation distributed                                                           35   
Transaction costs                                                                                              (6)   
Net fair value gain on discontinued operation distributed                                                       29   


10        Earnings per share
(a)       From continuing operations
                                                                                  (Reviewed)    (Reviewed)      (Audited)
                                                                                  Six months    Six months Year ended 31
                                                                                    ended 30 ended 30 June     December
EUR cents per share                                                                June 2012          2011         2011

Profit from continuing operations for the financial period/year attributable to
equity holders of the parent companies
Basic EPS                                                                              31.7           39.0          57.5
Diluted EPS                                                                            31.6           38.5          56.8

Underlying earnings for the financial period/year1
Basic EPS                                                                              30.9           38.2          68.1
Diluted EPS                                                                            30.8           37.7          67.3

Note:
1 Underlying EPS excludes the impact of special items.

The calculation of basic and diluted EPS and basic and diluted underlying EPS from continuing operations is
based on the following data:

                                                                                                 Earnings
                                                                                    (Reviewed)    (Reviewed)      (Audited)
                                                                                    Six months    Six months Year ended 31
                                                                                      ended 30 ended 30 June      December
EUR million                                                                          June 2012          2011          2011

Profit for the financial period/year attributable to equity holders of the parent
companies                                                                                 153            212           330
Profit from discontinued operation (see note 9)                                             -           (13)          (14)
Net gain on distribution of discontinued operation (see note 9)                             -              -          (29)
Related tax (see note 9)                                                                    -              -             -
Related non-controlling interests (see note 9)                                              -              -             -

Profit from continuing operations for the financial period/year attributable to
equity holders of the parent companies                                                    153            199           287
Special items (see note 6)                                                                (6)            (4)            55
Related tax (see note 6)                                                                    2              -           (2)
Related non-controlling interests (see note 6)                                              -              -             -

Underlying earnings for the financial period/year1                                        149            195           340

Note:
1  Underlying earnings excludes the impact of special items.

As described in note 9, Mondi Limited's ordinary shares were subject to a share consolidation which was
recognised from 1 August 2011, the date on which the new Mondi Limited ordinary shares commenced
trading on the JSE.

IFRS requires that the number of shares subject to the consolidation be adjusted from the effective date of the
consolidation, hence for the periods under review the effect of the share consolidation was included from 1
August 2011.

                                                                Number of shares                         
                                                   (Reviewed)         (Reviewed)             (Audited)
 As at 31   
                                                As at 30 June      As at 30 June              December   
million                                                  2012               2011                  2011   
Basic number of ordinary shares outstanding1              483                510                   499   
Effect of dilutive potential ordinary shares2               1                  7                     6   
Diluted number of ordinary shares outstanding             484                517                   505   


Notes:
1 The basic number of ordinary shares outstanding represents the weighted average number in issue for Mondi Limited and Mondi plc for the
  period/year, as adjusted for the weighted average number of treasury shares held during the period/year, and includes the impact of the share
  consolidation in 2011.
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.

(b)       From continuing and discontinued operations
                                                                                    (Reviewed)    (Reviewed)      (Audited)
                                                                                    Six months    Six months Year ended 31
                                                                                      ended 30 ended 30 June     December
EUR cents per share                                                                  June 2012          2011         2011

Profit for the financial period/year attributable to equity holders of the parent
companies
Basic EPS                                                                                31.7           41.6          66.1
Diluted EPS                                                                              31.6           41.0          65.3

Headline earnings for the financial period/year1
Basic EPS                                                                                30.9           39.4          69.9
Diluted EPS                                                                              30.8           38.9          69.1

Note:
1 The presentation of Headline EPS is mandated under the JSE Listings Requirements. Headline earnings has been calculated in accordance
  with Circular 3/2009, Headline Earnings', as issued by the South African Institute of Chartered Accountants.

The calculation of basic and diluted EPS and basic and diluted headline EPS from continuing and
discontinued operations is based on the following data:

                                                                                                 Earnings
                                                                                    (Reviewed)    (Reviewed)      (Audited)
                                                                                    Six months    Six months Year ended 31
                                                                                      ended 30 ended 30 June      December
EUR million                                                                          June 2012          2011          2011

Profit for the financial period/year attributable to equity holders of the parent
companies                                                                                 153           212            330
Net gain on distribution of discontinued operation (see note 9)                              -             -          (29)
Special items                                                                              (6)           (4)            55
Special items: restructuring and closure costs                                               -             1           (6)
Profit on disposal of tangible and intangible assets                                         -           (6)             -
Impairments not included in special items                                                    -             -             1
Related tax                                                                                  2           (2)           (2)
Related non-controlling interests                                                            -             -             -

Headline earnings for the financial period/year                                           149           201            349

11      Alternative measure of earnings per share
The directors have elected to present an alternative, non-IFRS measure of earnings per share from continuing
operations in order to provide shareholders with a comparison of the continuing operations of the Group as if
the demerger and related share consolidation had occurred at the beginning of each period presented. This is
deemed appropriate as it is the continuing operations of the Group, after taking the impact of the share
consolidation into consideration, which will be the basis of the future performance of the Group. This approach
will enable a useful comparison of earnings per share from continuing operations, based on the consolidated
shares, for all future periods.

The presentation of such an alternative, non-IFRS measure of earnings per share is classified by the JSE
Limited as pro-forma financial information. Refer to pages 34 to 39 of the printed half-yearly report for the pro-forma 
financial information and independent reporting accountants' report thereon.

In addition, the effect of the recapitalisation of Mpact resulted in a repayment of intercompany debt by Mpact
to Mondi Limited on 4 and 5 July 2011 of EUR76 million. These proceeds were used to reduce the Group's net
debt. The alternative measure of earnings per share has therefore been adjusted to take the related saving on
interest paid into consideration as if the recapitalisation had occurred at the beginning of each period
presented.

                                                                                         Earnings
                                                                            (Reviewed)    (Reviewed)       (Audited)
                                                                            Six months    Six months   Year ended 31
                                                                              ended 30 ended 30 June        December
EUR million                                                                  June 2012          2011            2011

Underlying earnings for the financial period/year1                                149            195            340
Tax saving by Mondi Limited on intercompany interest received from Mpact2           -              4              4
Saving of interest paid on net debt at 8.6% per annum                               -              3              3
Tax at 28% on saving of interest paid                                               -             (1)            (1)

Adjusted earnings for the financial period/year                                   149            201            346

Notes:
1 Underlying earnings excludes the impact of special items.
2 Had the recapitalisation of Mpact occurred at the beginning of each period presented, Mondi Limited would no longer have received interest on
  its intercompany loans to Mpact and thus the tax charge on the interest received would not have been incurred.

The revised weighted average number of shares is determined as follows:

                                                                                          Number of shares
                                                                            (Reviewed)       (Reviewed)       (Audited)
                                                                                                               As at 31
                                                                         As at 30 June     As at 30 June       December
million                                                                           2012              2011          2011

Basic number of ordinary shares outstanding                                       483               510           499
Adjustment for Mondi Limited share consolidation1                                   -               (28)          (17)

Adjusted basic number of ordinary shares outstanding2                             483               482           482
Effect of dilutive potential ordinary shares3                                       1                 6             6

Diluted number of ordinary shares outstanding after Mondi Limited share
consolidation                                                                     484               488           488

Notes:
1 The actual number of shares subject to consolidation was 29 million. The adjustment reflects the impact on the number of shares as if the share
  consolidation had occurred with effect from 1 January 2011 and takes treasury shares into consideration. The adjustment reflects the period up
  to the date of the share consolidation as the share consolidation is included in the basic number of ordinary shares outstanding from 1 August
  2011.
2 The basic number of ordinary shares outstanding represents the weighted average number in issue for Mondi Limited and Mondi plc for the
  period/year, as adjusted for the weighted average number of treasury shares held during the period/year.
3 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.

11     Alternative measure of earnings per share (continued)
Based on the adjusted earnings and weighted average number of shares, the alternative, non-IFRS earnings
per share figures for continuing operations would be:

                                                                         (Reviewed)    (Reviewed)      (Audited)
                                                                         Six months    Six months Year ended 31
                                                                           ended 30 ended 30 June      December
EUR cents per share                                                       June 2012          2011          2011

Earnings per share  alternative measure for the financial period/year
Basic EPS  alternative measure                                               30.9           41.7          71.8
Diluted EPS  alternative measure                                             30.8           41.2          70.9

12     Dividends
The interim dividend for the year ending 31 December 2012 of 8.9 euro cents per ordinary share will be paid
on 18 September 2012 to those shareholders on the register of Mondi plc on 24 August 2012. An equivalent
South African rand interim dividend will be paid on 18 September 2012 to shareholders on the register of
Mondi Limited on 24 August 2012. The dividend will be paid from distributable reserves of Mondi Limited and
of Mondi plc, as presented in the respective company annual financial statements for the year ended 31
December 2011.

The interim dividend for the year ending 31 December 2012 will be paid in accordance with the following
timetable:

                                                      Mondi Limited       Mondi plc

Last date to trade shares cum-dividend
JSE Limited                                           17 August 2012      17 August 2012
London Stock Exchange                                 Not applicable      21 August 2012

Shares commence trading ex-dividend
JSE Limited                                           20 August 2012      20 August 2012
London Stock Exchange                                 Not applicable      22 August 2012

Record date
JSE Limited                                           24 August 2012      24 August 2012
London Stock Exchange                                 Not applicable      24 August 2012

Last date for receipt of Dividend Reinvestment Plan
(DRIP) elections by Central Securities Depository
Participants                                          30 August 2012      30 August 2012

Last date for DRIP elections to UK Registrar and South
African Transfer Secretaries by shareholders of Mondi
Limited and Mondi plc                                  31 August 2012     23 August 2012*

Payment Date
South African Register                                18 September 2012   18 September 2012
UK Register                                           Not applicable      18 September 2012
DRIP purchase settlement dates                        27 September 2012   21 September 2012**

Currency conversion dates
ZAR/euro                                              7 August 2012       7 August 2012
Euro/sterling                                         Not applicable      31 August 2012

* 31 August 2012 for Mondi plc South African branch register shareholders
** 27 September 2012 for Mondi plc South African branch register shareholders

Share certificates on the South African registers of Mondi Limited and Mondi plc may not be dematerialised or
rematerialised between 20 August 2012 and 26 August 2012, both dates inclusive, nor may transfers between
the UK and South African registers of Mondi plc take place between 15 August 2012 and 26 August 2012,
both dates inclusive.

Information relating to the dividend tax to be withheld from Mondi Limited shareholders and Mondi plc
shareholders on the South African branch register will be announced separately, together with the ZAR/euro
exchange rate to be applied, on or shortly after 7 August 2012.

13      Retirement benefits
In November 2011 the trustees of the defined benefit pension plan in South Africa, with agreement from the
participating pensioners and employees, resolved to initiate a process to wind up the fund subject to
regulatory approval. Regulatory approval was received in January 2012 and accordingly, Mondi Limited
recognised a settlement charge of EUR2 million in the condensed combined and consolidated income statement.
Mondi Limited expects to receive a reimbursement of the pension surplus of EUR6 million once the fund is wound
up, subject to any potential claims.

All assumptions of the Group's material defined benefit schemes and post-retirement medical plan liabilities
were re-assessed individually and the remaining Group defined benefit schemes and unfunded statutory
retirement obligations were re-assessed in aggregate for the six months ended 30 June 2012. The net
retirement benefit obligation increased by EUR17 million mainly due to changes in assumptions, an exchange
rate impact of EUR2 million and the above mentioned settlement charge of EUR2 million. The assets backing the
defined benefit scheme liabilities reflect their market values as at 30 June 2012. Any movements in the
assumptions have been recognised as an actuarial movement in the condensed combined and consolidated
statement of comprehensive income.

14      Non-controlling interests bought out
On 18 April 2012, Mondi concluded an all cash public tender offer for the share in Mondi Swiecie S.A. that it
did not already own, increasing its shareholding to 93.2% from 66%. On 18 May 2012, Mondi acquired the
remaining shares it did not already own. The total consideration paid by Mondi was EUR296 million including
transaction costs of approximately EUR1 million which were expensed. The acquisition is reflected in the
condensed combined and consolidated statement of changes in equity as a transaction between shareholders
with the premium over the carrying value of the non-controlling interests being reflected as a reduction in
retained earnings.

15      Business combinations
On 2 May 2012, following completion of a number of suspensive conditions, including a ruling from the
Arbitration Court of the National Chamber of Commerce in Poland, Mondi Swiecie S.A. acquired the entire
share capital of Saturn Management Sp. Z o.o. from Polish Energy Partners S.A. for a net cash consideration
of EUR31 million and the assumption of debt of EUR57 million. Transaction costs of approximately EUR1 million were
expensed. Saturn Energy is the owner of the power and heat generating plant that provides Mondi Swiecie
S.A. with most of its electricity requirements and all of its heat and steam needs.

The fair value accounting reflected in these results is provisional in nature. If necessary, adjustments will be
made to these fair values, and to the goodwill on acquisition, within 12 months of the acquisition date.

The acquired business has contributed underlying operating profit of EUR2 million. Had the acquisition occurred
on 1 January 2012, the acquired business would have contributed underlying operating profit of EUR9 million.

Details of the aggregate net assets acquired, as adjusted from book to fair value, are:

EUR million                              Book value   Revaluation   Fair value

Net assets acquired:
Property, plant and equipment                 70             25          95
Trade and other receivables                    3              -           3
Cash and cash equivalents                      2              -           2
Trade and other payables                     (6)              -         (6)
Short-term borrowings                       (11)              -        (11)
Medium and long-term borrowings             (48)              -        (48)
Deferred tax liabilities                       -            (8)         (8)

Net assets acquired                           10            17           27

Goodwill arising on acquisition                                           4

Total cost of acquisition                                               31
Cash acquired net of overdrafts                                         (2)
Purchase price adjustment receivable                                      5

Net cash paid                                                            34

16     Disposal groups and assets held for sale
There were no major disposal groups or assets held for sale as at 30 June 2012.

17     Consolidated cash flow analysis
(a)    Reconciliation of profit from continuing operations before tax to cash generated from operations

                                                                                   (Reviewed)    (Reviewed)      (Audited)
                                                                                   Six months    Six months Year ended 31
                                                                                     ended 30 ended 30 June      December
EUR million                                                                         June 2012          2011          2011

Profit from continuing operations before tax                                             223              300         457
Depreciation and amortisation                                                            167              172         342
Share-based payments                                                                       6                5          10
Non-cash effect of special items                                                          (4)            (13)          36
Net finance costs                                                                          53              60         111
Net income from associates                                                                (1)             (2)         (1)
Decrease in provisions and post-employment benefits                                       (7)            (15)         (25)
Increase in inventories                                                                  (19)           (104)         (55)
Increase in operating receivables                                                        (86)           (134)         (32)
Increase in operating payables                                                              3              95           19
Fair value gains on forestry assets                                                      (13)            (23)         (49)
Felling costs                                                                              32              34           65
Profit on disposal of tangible and intangible assets                                        -             (6)           -
Other adjustments                                                                         (1)               2           5

Cash generated from continuing operations                                                353              371          883
Cash generated from discontinued operation                                                 -               32           34

Cash generated from operations                                                           353              403          917


(b)         Cash and cash equivalents
                                                                                    (Reviewed)      (Reviewed)     (Audited)
                                                                                                                   As at 31
                                                                                 As at 30 June   As at 30 June     December
EUR million                                                                               2012            2011         2011

Cash and cash equivalents per condensed combined and consolidated statement of
financial position                                                                         60              33         191
Bank overdrafts included in short-term borrowings (see note 17c)                        (125)           (126)         (74)

Net cash and cash equivalents per condensed combined and consolidated
statement of cash flows                                                                  (65)            (93)         117

(c)     Movement in net debt

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

                                       Cash and      Debt due    Debt due           Current
                                            cash    within one   after one   financial asset   Total net
EUR million                         equivalents(1)      year(2)       year       investments        debt

At 1 January 2011                             24       (351)     (1,037)                   -    (1,364)
Cash flow                                   (97)           -         112                   -        15
Business combinations                          -         (4)          (1)                  -        (5)
Movement in unamortised loan costs             -           -          (3)                  -        (3)
Effect of discontinued operation            (23)          15         119                   -       111
Reclassification                               -        (39)          39                   -          -
Currency movements                             3          20          23                   -        46

At 30 June 2011                             (93)       (359)       (748)                  -    (1,200)
Cash flow                                   181          135       (108)                  1        209
Disposal of businesses                         -          30          12                  -         42
Movement in unamortised loan costs             -           -         (3)                  -         (3)
Effect of discontinued operation              23           -          76                  -         99
Reclassification                               -        (25)          25                  -           -
Currency movements                             6           7           9                  -         22

At 31 December 2011                         117        (212)       (737)                  1      (831)
Cash flow                                 (181)           52       (240)                (1)      (370)
Business combinations                          -        (11)        (48)                  -       (59)
Movement in unamortised loan costs             -           -         (3)                  -        (3)
Reclassification                               -        (19)          19                  -          -
Currency movements                           (1)         (4)         (5)                  -       (10)

At 30 June 2012                             (65)       (194)     (1,014)                   -   (1,273)

Notes:
1 The Group operates in certain countries (principally South Africa) where the existence of exchange controls may restrict the use of certain cash
  balances. These restrictions are not expected to have any material effect on the Group's ability to meet its ongoing obligations.
2 Excludes overdrafts, which are included as cash and cash equivalents. As at 30 June 2012, short-term borrowings on the condensed combined
  and consolidated statement of financial position of EUR315 million (as at 30 June 2011: EUR485 million; as at 31 December 2011: EUR286 million)
  include EUR125 million of overdrafts (as at 30 June 2011: EUR126 million; as at 31 December 2011: EUR74 million).

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

                                     (Reviewed)      (Reviewed)     (Audited)
                                                                     As at 31
                                   As at 30 June   As at 30 June    December
EUR million                                 2012            2011        2011

Expiry date
In one year or less                          26               39           38
In more than one year                       558              742          851
 Total credit available                      584             781          889


18          Capital commitments
                                     (Reviewed)      (Reviewed)     (Audited)
                                                                     As at 31
                                 As at 30 June   As at 30 June       December
EUR million                                 2012            2011          2011

Contracted for but not provided            178             122            140
Approved, not yet contracted for           230             182           372

These capital commitments relate to the following categories of non-current non-financial assets:

                                                           (Reviewed)      (Reviewed)     (Audited)
                                                                                           As at 31
                                                         As at 30 June   As at 30 June     December
EUR million                                                       2012            2011         2011

Intangible assets                                                   11               5           13
Property, plant and equipment                                      397             299          499

Total capital commitments                                          408             304          512


The expected maturity of these capital commitments is:

                                                            (Reviewed)      (Reviewed)     (Audited)
                                                                                           As at 31
                                                         As at 30 June   As at 30 June     December
EUR million                                                       2012            2011         2011

Within one year                                                   270              237          339
One to two years                                                  122               58          141
Two to five years                                                  16                9           32

Total capital commitments                                         408              304          512

Capital commitments are based on capital projects approved to date and the budget approved by the Boards.
Major capital projects still require further approval before they commence. These capital commitments will be
financed by existing cash resources and borrowing facilities.

Capital commitments related to joint venture entities are immaterial.

19      Contingent liabilities and contingent assets
Contingent liabilities comprise aggregate amounts as at 30 June 2012 of EUR13 million (as at 30 June 2011:
EUR19 million; as at 31 December 2011: EUR17 million) in respect of loans and guarantees given to banks and
other third parties. No acquired contingent liabilities have been recorded in the Group's condensed combined
and consolidated statement of financial position for all periods presented.

There are a number of legal and tax claims against the Group. Provision is made for all liabilities that are
expected to materialise.

There were no contingent assets for all periods presented.

Contingent assets and liabilities related to joint venture entities are immaterial.

20      Related party transactions
The Group has related party relationships with its associates and joint ventures. Transactions between Mondi
Limited, Mondi plc and their respective subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.

The Group and its subsidiaries, in the ordinary course of business, enter into various sale, purchase and
service transactions with joint ventures and associates and others in which the Group has a material interest.
These transactions are under terms that are no less favourable than those arranged with third parties. These
transactions, in total, are not considered to be significant.

Other than the transactions described in notes 13 and 14, there have been no significant changes to the
related parties as disclosed in note 39 of the Group's annual financial statements for the year ended 31
December 2011.

Dividends received from associates for the six months ended 30 June 2012 amount to EURnil (six months ended
30 June 2011: EURnil; year ended 31 December 2011: EUR2 million).

21      Events occurring after 30 June 2012
On 11 July 2012, Mondi announced that it had agreed to acquire 93.4% of the outstanding share capital of
Nordenia International AG for a total cash consideration of 240 million, subject to customary completion
conditions including the approval of certain competition authorities. On 23 July 2012, agreement was reached
to acquire a further 0.5% interest on the same completion conditions. The acquisition is expected to be
completed in the fourth quarter of 2012.

The directors declared an interim dividend of 8.9 euro cents per share as set out in note 12.

Pro-forma financial information
The directors have in the past presented underlying earnings per share in accordance with IAS 33.73 as they
believe it provides a useful measure for shareholders to understand the underlying financial performance of
the Group. Underlying earnings represents the earnings of the Group, from continuing operations, excluding
special items. Special items are 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 of the Group. IAS 33 requires that the number of shares
subject to the Mondi Limited share consolidation be adjusted from the effective date of the consolidation. This
results in a mismatch between the underlying earnings, which excludes the discontinued operation for the full
year, and the weighted average number of shares, which only reflects the adjusted number of shares from the
date of the share consolidation.

The directors have therefore elected to present an alternative, non-IFRS measure of underlying earnings per
share from continuing operations for the prior year comparative periods in order to provide shareholders with a
comparison of the continuing operations of the Group as if the demerger of Mpact and related Mondi Limited
share consolidation had occurred at the beginning of each financial period presented. This is deemed
appropriate as it is the continuing operations of the Group, after taking the impact of the share consolidation
into consideration, which will be the basis of the future performance of the Group. This approach will enable a
useful comparison of earnings per share from continuing operations, based on the consolidated shares, for all
future periods.

The presentation of such an alternative, non-IFRS measure of earnings per share is classified by the JSE
Limited (JSE) as pro-forma financial information and must comply with section 8 of the JSE Listings
Requirements. The unaudited pro-forma financial information below has been prepared for illustrative
purposes to provide information on how the alternative measure of earnings per share adjustments would
have impacted on the financial results of the Group. Because of its nature, the unaudited pro-forma financial
information does not reflect the Group's actual results of operations which are set out in the combined and
consolidated financial statements.

The unaudited pro-forma results set out below only reflect an adjustment to the combined and consolidated
income statement as no adjustments were made to the combined and consolidated statement of financial
position. The combined and consolidated statement of comprehensive income is not presented as the pro-
forma information relates only to the earnings per share measures, determined from the combined and
consolidated income statement. The directors do not propose to present any pro-forma measures other than
those relating to underlying earnings per share and therefore have not presented the effect of the pro-forma
adjustments to headline earnings per share or earnings per share measures from continuing and discontinued
operations.

The underlying information used in the preparation of the pro-forma financial information has been prepared
using the accounting policies set out in note 1 of the audited combined and consolidated financial statements
for the year ended 31 December 2011 without adjustment.

The directors of the Group are responsible for the compilation, contents and preparation of the unaudited pro-
forma financial information set out below. Their responsibility includes determining that: the unaudited pro-
forma financial information has been properly compiled on the basis stated; the basis is consistent with the
accounting policies of the Group; and the pro-forma adjustments are appropriate for the purposes of the
unaudited pro-forma financial information disclosed in terms of the JSE Listings Requirements.

The unaudited pro-forma financial information should be read in conjunction with the Deloitte & Touche
independent reporting accountants' report thereon.

Pro-forma combined and consolidated income statement

                                                       Six months ended 30 June 2011        Year ended 31 December 2011
                                                  Reviewed       Adjust-   Pro-forma   Audited       Adjust-  Pro-forma
EUR million                                              (A)       ments (unaudited)        (A)        ments (unaudited)

Continuing operations
Group revenue                                        2,942            -       2,942      5,739           -       5,739
Materials, energy and consumables used             (1,528)            -     (1,528)    (2,998)           -     (2,998)
Variable selling expenses                            (257)            -       (257)      (511)           -       (511)

Gross margin                                        1,157             -       1,157     2,230            -       2,230
Maintenance and other indirect expenses             (133)             -       (133)     (272)            -       (272)
Personnel costs (excluding special items)           (417)             -       (417)     (808)            -       (808)
Other net operating expenses (excluding special
items)                                                (81)            -        (81)     (186)            -       (186)
Depreciation and amortisation                        (172)            -       (172)     (342)            -       (342)

Underlying operating profit                           354             -         354       622            -        622
Special items (note B)                                  4             -           4       (55)           -        (55)
Net income from associates                              2             -           2          1           -           1

Total profit from operations and associates           360             -        360        568            -         568
Net finance costs                                     (60)            3        (57)     (111)            3       (108)
 Investment income                                      15            -          15        30            -          30
 Foreign currency losses                               (2)            -         (2)         -            -           -
 Finance costs (note B)                               (73)            3        (70)     (141)            3       (138)

Profit before tax                                     300             3        303        457            3        460
Tax (charge)/credit (note B)                          (59)            3        (56)     (100)            3        (97)

Profit from continuing operations                     241             6         247       357            6         363

Profit from discontinued operations                     13            -          13        43            -          43

Profit for the financial period/year                  254             6         260       400            6         406


Attributable to:
 Non-controlling interests                             42            -           42        70            -          70
 Equity holders of the parent companies               212            6          218       330            6         336

Earnings per share (EPS) for profit
attributable to equity holders of the parent
companies

From continuing operations (note D)
Basic underlying EPS (EUR cents)                        38.2                     41.7      68.1                     71.8
Diluted underlying EPS (EUR cents)                      37.7                     41.2      67.3                     70.9

Notes to the pro-forma combined and consolidated income statement
A. The Group financial information has been extracted, without adjustment, from the Group's reviewed
   combined and consolidated financial statements for the six months ended 30 June 2011 and the Group's
   audited combined and consolidated financial statements for the year ended 31 December 2011.

B. The adjustments to the combined and consolidated financial statements to reflect the unaudited pro-forma
   earnings are set out below:

                                                                                                           Earnings
                                                                                                    Six months Year ended 31
                                                                                                 ended 30 June      December
EUR million                                                                                               2011          2011

Profit for the period/year attributable to equity holders of the parent companies                          212           330
Discontinued operation                                                                                    (13)          (43)
Effect of special items (refer note 10a of the financial statements)                                       (4)            55
Tax and non-controlling interests in respect of special items (refer note 10a of the financial
statements)                                                                                                 -            (2)

Underlying earnings attributable to equity holders of the parent companies (refer note 10a of
the financial statements)1                                                                                195            340
Pro-forma adjustments
Saving of interest paid on net debt at 8.6% per annum2                                                      3              3
Tax at 28% on saving of interest paid                                                                     (1)            (1)
Tax saving by Mondi Limited on intercompany interest received from Mpact3                                   4              4

Adjusted pro-forma underlying earnings for the financial period/year                                      201            346

Notes:
1 Underlying earnings excludes the impact of special items as described in note 6 of the condensed combined and consolidated financial
  statements.
2 The effect of the recapitalisation of Mpact resulted in a repayment of intercompany debt by Mpact to Mondi Limited on 4 and 5 July 2011 of
  EUR76 million. These proceeds were used to reduce the Group's net debt. The alternative measure of earnings per share has been adjusted to
  take the related saving on interest paid into consideration as if the recapitalisation had occurred at the beginning of each period presented.
3 Had the recapitalisation of Mpact occurred at the beginning of each financial period presented, Mondi Limited would no longer have received
  interest on its intercompany loans to Mpact and thus the tax charge on the interest received would not have been incurred.

C. The revised weighted average number of shares is determined as follows:

                                                                                              Number of shares
                                                                                           Six months Year ended 31
                                                                                        ended 30 June      December
million                                                                                          2011          2011

Basic number of ordinary shares outstanding                                                       510            499
Adjustment for Mondi Limited share consolidation1                                                (28)           (17)

Adjusted basic number of ordinary shares outstanding2                                            482             482
Effect of dilutive potential ordinary shares3                                                      6               6

Diluted number of ordinary shares outstanding after Mondi Limited share consolidation            488             488

Notes:
1 The actual number of shares subject to consolidation was 29 million. The adjustment reflects the impact on the number of shares as if the share
  consolidation had occurred with effect from 1 January 2011 and takes treasury shares into consideration. The adjustment reflects the period up
  to the date of the share consolidation as the share consolidation is included in the basic number of ordinary shares outstanding from 1 August
  2011 as set out in note 10a of the condensed combined and consolidated financial statements.
2 The basic number of ordinary shares outstanding represents the weighted average number in issue for Mondi Limited and Mondi plc for the
  period/year, as adjusted for the weighted average number of treasury shares held during the period/year.
3 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.

D. Based on the adjusted earnings and weighted average number of shares, the alternative, non-IFRS
   underlying earnings per share figures for continuing operations would be:

                                                                                       Six months Year ended 31
                                                                                    ended 30 June      December
EUR cents per share                                                                          2011          2011

Underlying earnings per share  alternative measure for the financial period/year
Basic EPS  alternative measure                                                             41.7           71.8
Diluted EPS  alternative measure                                                           41.2           70.9

The directors do not propose to present any pro-forma measures other than those relating to underlying
earnings per share and therefore have not presented the effect of the pro-forma adjustments to headline
earnings per share or earnings per share measures from continuing and discontinued operations.

Independent reporting accountants' assurance report on the pro-forma
financial information of the Mondi dual listed structure (Mondi Group)
We have performed our limited assurance engagement in respect of the pro-forma financial information set
out on pages 34 to 37 of the printed half-yearly condensed combined and consolidated financial statements for the six months
ended 30 June 2012 dated 6 August 2012 issued in connection with presentation of the alternative, non-IFRS
measure of earnings per share from continuing operations in the condensed combined and consolidated
financial statements of Mondi Group for the six months ended 30 June 2011 and the year ended 31 December
2011. The presentation of this alternative, non-IFRS measure is disclosed to provide shareholders with a
comparison of the continuing operations of the Group as if the demerger of Mpact Limited and related share
consolidation in Mondi Limited had occurred at the beginning of each financial period presented. The
demerger of Mpact Limited and the share consolidation was finalised in August 2011. The pro-forma financial
information has been prepared in accordance with the requirements of the JSE Limited (JSE) Listings
Requirements, for illustrative purposes only, to provide information about how the alternative, non-IFRS
measure might affect the reported financial information presented.

Directors' responsibility
The directors are responsible for the compilation, contents and presentation of the pro-forma financial
information contained in the condensed combined consolidated financial statements. Their responsibility
includes determining that: the pro-forma financial information has been properly compiled on the basis stated;
the basis is consistent with the accounting policies of the Mondi Group and the pro-forma adjustments are
appropriate for the purposes of the pro-forma financial information disclosed in terms of the JSE Listings
Requirements.

Reporting accountants' responsibility
Our responsibility is to express our limited assurance conclusion on the pro-forma financial information
included in the condensed combined consolidated financial statements of the Mondi Group. We conducted our
assurance engagement in accordance with the International Standard on Assurance Engagements applicable
to Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and the Guide
on Pro Forma Financial Information issued by SAICA.

This standard requires us to obtain sufficient appropriate evidence on which to base our conclusion.

We do not accept any responsibility for any reports previously given by us on any financial information used in
the compilation of the pro-forma financial information beyond that owed to those to whom those reports were
addressed by us at the dates of their issue.

Sources of information and work performed
Our procedures consisted primarily of comparing the unadjusted financial information with the source
documents, considering the pro-forma adjustments in light of the accounting policies of the Mondi Group, the
issuer, considering the evidence supporting the pro-forma adjustments and discussing the adjusted pro-forma
financial information with the directors of the Group in respect of the alternative, non-IFRS measure presented
in the condensed combined and consolidated results that is a result of the demerger of Mpact completed in
August 2011.

In arriving at our conclusion, we have relied upon financial information prepared by the directors of the Mondi
Group and other information from various public, financial and industry sources.

While our work performed has involved an analysis of the historical published audited financial information
and other information provided to us, our assurance engagement does not constitute an audit or review of any
of the underlying financial information conducted in accordance with International Standards on Auditing or
International Standards on Review Engagements and accordingly, we do not express an audit or review
opinion.

In a limited assurance engagement, the evidence-gathering procedures are more limited than for a reasonable
assurance engagement and therefore less assurance is obtained than in a reasonable assurance
engagement. We believe our evidence obtained is sufficient and appropriate to provide a basis for our
conclusion.

Independent reporting accountants' assurance report on the pro-forma
financial information of the Mondi dual listed structure (Mondi Group)
(continued)
Conclusion
Based on our examination of the evidence obtained, nothing has come to our attention, which causes us to
believe that, in terms of the section 8.17 and 8.30 of the JSE Listings Requirements:
    · the pro-forma financial information has not been properly compiled on the basis stated,
    · such basis is inconsistent with the accounting policies of the issuer, and
    · the adjustments are not appropriate for the purposes of the pro-forma financial information as
      disclosed.

Consent
We consent to the inclusion of this report, which will form part of the SENS announcement and the condensed
combined and consolidated financial statements, to be issued on or about 6 August 2012, in the form and
context in which it will appear.


Deloitte & Touche
Registered Auditor

Per Bronwyn Kilpatrick
Partner
Sandton

6 August 2012

Deloitte & Touche
Registered Auditors
Buildings 1 and 2, Deloitte Place, The Woodlands
Woodlands Drive, Woodmead, Sandton
Republic of South Africa

National Executive: LL Bam Chief Executive AE Swiegers Chief Operating Officer GM Pinnock Audit DL
Kennedy Risk Advisory NB Kader Tax L Geeringh Consulting & Clients & Industries JK Mazzocco Talent &
Transformation CR Beukman Finance M Jordan Strategy S Gwala Special Projects TJ Brown Chairman of
the Board MJ Comber Deputy Chairman of the Board.

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

B-BBEE rating: Level 2 contributor in terms of the Chartered Accountancy Profession Sector Code

Member of Deloitte Touche Tohmatsu Limited

Revised operating segments subsequent to acquisition of Nordenia
International AG
Operating segment revenues

                                 Six months ended 30 June 2012         Six months ended 30 June 2011
                                Segment       Internal    External   Segment          Internal     External
EUR million                     revenue     revenue(1)    revenue(2)     revenue       revenue1      revenue2

Europe & International
 Packaging Paper                   960          (249)         711      1,063          (260)           803
 Fibre Packaging                   946           (19)         927        973           (18)           955
 Consumer Packaging                150            (1)         149        207             (3)          204
 Uncoated Fine Paper               749            (8)         741        734           (13)           721
 Intra-segment elimination       (277)           277            -      (293)            293             -

Total Europe & International     2,528              -       2,528      2,684             (1)        2,683

South Africa Division              287          (57)          230        269           (90)           179
Newsprint businesses                83           (1)           82         80              -            80

Segments total                   2,898          (58)        2,840      3,033           (91)         2,942
Inter-segment elimination          (58)           58            -        (91)            91             -

Group total                      2,840              -       2,840      2,942               -        2,942

                                 Year ended 31 December 2011            Year ended 31 December 2010
                               Segment         Internal    External   Segment         Internal    External
EUR million                       revenue    revenue(1)   revenue(2)   revenue      revenue(1)   revenue(2)

Europe & International
 Packaging Paper                 2,006         (469)        1,537       1,747         (423)        1,324
 Fibre Packaging                 1,881          (33)        1,848       1,728          (30)        1,698
 Consumer Packaging                372            (5)         367         348           (7)         341
 Uncoated Fine Paper             1,429          (20)        1,409       1,516         (129)        1,387
 Intra-segment elimination       (526)           526            -       (487)           487            -

Total Europe & International     5,162            (1)       5,161       4,852         (102)        4,750

South Africa Division              569         (155)          414         580         (211)          369
Newsprint businesses               164             -          164         492           (1)          491

Segments total                   5,895         (156)        5,739       5,924         (314)        5,610
Inter-segment elimination        (156)           156            -       (314)           314            -

Group total                      5,739              -       5,739       5,610              -       5,610

Notes:
1 Inter-segment transactions are conducted on an arm's length basis.
2 The description of each business segment reflects the nature of the main products they sell. In certain instances the business segments sell
  minor volumes of other products and due to this reason the external segment revenues will not necessarily reconcile to the external revenues by
  type of product presented below.

External revenue by product type
                                   Six months    Six months Year ended 31 Year ended 31
                                     ended 30 ended 30 June     December      December
EUR million                         June 2012          2011         2011          2010

Products
Fibre packaging products                 909           937         1,810         1,657
Packaging paper                          689           748         1,438         1,202
Uncoated fine paper                      687           684         1,337         1,351
Consumer packaging products              149           204           367           341
Pulp                                     140           125           263           247
Newsprint                                130           123           251           221
Other1                                   136           121           273           591

Group total                            2,840         2,942         5,739         5,610

Note:
1 Revenues derived from product types that are not individually material are classified as other.


Operating profit/(loss) from continuing operations before special items

                                                     Six months    Six months Year ended 31 Year ended 31
                                                       ended 30 ended 30 June     December      December
EUR million                                           June 2012          2011         2011          2010

Europe & International
 Packaging Paper                                           104           173           295           178
 Fibre Packaging                                            47            46            86            52
 Consumer Packaging                                         10            14            25            22
 Uncoated Fine Paper                                       100           118           205           179

Total Europe & International                               261           351           611           431

South Africa Division                                        29            27            62            64
Newsprint businesses                                        (3)           (5)          (18)           (4)
Corporate & other businesses                               (18)          (19)          (33)          (33)

Segments total                                             269           354           622           458
Special items (see note 6)                                    6             4         (55)          (21)
Net income from associates                                    1             2            1             2
Net finance costs                                          (53)          (60)        (111)         (106)

Group profit from continuing operations before tax         223           300           457           333

Significant components of operating profit from continuing operations before special items

The DLC executive committee uses EBITDA as a measure of cash flow, coupled with the depreciation and
amortisation charge, for making decisions about, amongst others, allocation of funds for capital investment.

                                                                           EBITDA
                                                      Six months    Six months Year ended 31 Year ended 31
                                                        ended 30 ended 30 June     December      December
EUR million                                            June 2012          2011         2011          2010

Europe & International
 Packaging Paper                                            150           224           392           270
 Fibre Packaging                                             80            77           149           120
 Consumer Packaging                                          15            20            37            35
 Uncoated Fine Paper                                        154           169           309           279

Total Europe & International                                399           490           887           704

South Africa Division                                         55            54          114           117
Newsprint businesses                                           -             1           (5)            10
Corporate & other businesses                                (18)          (19)          (32)          (33)

Group and segments total from continuing operations         436           526           964           798

                                                                                           Green energy sales and
                                Depreciation and amortisation Operating lease charges    disposal of emissions credits
                                Year ended 31 Year ended 31 Year ended 31 Year ended 31 Year ended 31 Year ended 31
                                    December       December     December       December     December         December
EUR million                             2011             2010       2011            2010         2011             2010

Europe & International
 Packaging Paper                         97             92             32             25            79             74
 Fibre Packaging                         63             68              9              9             -              -
 Consumer Packaging                      12             13              1              2             -              -
 Uncoated Fine Paper                    104            100              7              8             5              6

Total Europe & International            276            273             49             44            84             80

South Africa Division                     52            53              5              5              -              -
Newsprint businesses                      13            14              1              6              -              -
Corporate & other businesses               1             -              1              2              -              -

Group and segments total from
continuing operations                   342            340             56             57            84             80

Operating margin1
                                                                                                         As at 31    As at 31
                                                                        As at 30 June   As at 30 June   December    December
%                                                                                2012            2011       2011        2010

Europe & International
 Packaging Paper                                                                 10.8           16.3         14.7         10.2
 Fibre Packaging                                                                  5.0            4.7         4.6          3.0
 Consumer Packaging                                                               6.7            6.8         6.7          6.3
 Uncoated Fine Paper                                                            13.4           16.1         14.3         11.8
South Africa Division                                                           10.1           10.0         10.9         11.0
Newsprint businesses                                                            (3.6)          (6.3)      (11.0)        (0.8)
Group                                                                            9.5            12.0        10.8          8.2


Note:
1
  Operating margin is underlying operating profit divided by revenue.


Return on capital employed (ROCE)1
                                                                                                         As at 31     As at 31
                                                                        As at 30 June   As at 30 June    December     December
%                                                                                2012            2011        2011         2010

Europe & International
 Packaging Paper                                                                18.5            25.8         24.4         17.0
 Fibre Packaging                                                                10.9             8.5         11.0          7.5
 Consumer Packaging                                                             14.6            14.4         15.0         13.5
 Uncoated Fine Paper                                                            15.7            16.9         16.7         16.9
South Africa Division                                                            9.5             9.7          8.9          8.4
Newsprint businesses                                                          (20.6)           (9.2)       (19.2)        (2.8)
Group                                                                           13.3            15.2         15.0        12.3

Note:
1 Return on capital employed (ROCE) is trailing 12 month underlying operating profit, including share of associates' net income, divided by trailing
  12 month average trading capital employed and for segments has been extracted from management reports. Capital employed is adjusted for
  impairments in the year and spend on the strategic projects which are not yet in production.

Operating segment assets
                                             As at 30 June 2012         As at 30 June 2011
                                                                                             Net
                                             Segment      Net segment    Segment         segment
EUR million                                  assets(1)         assets   assets(1)         assets

Europe & International
 Packaging Paper                               1,709          1,373        1,718          1,337
 Fibre Packaging                               1,207            916        1,244            928
 Consumer Packaging                              189            145          248            191
 Uncoated Fine Paper                           1,469          1,270        1,553          1,360
 Intra-segment elimination                     (137)              -        (141)              -
Total Europe & International                   4,437          3,704        4,622          3,816
South Africa Division                           978             840       1,015             877
Newsprint businesses                              95             66         130             100
Corporate & other businesses                       8              9          10              10
Inter-segment elimination                       (32)              -        (52)               -
Segments total                                 5,486          4,619       5,725            4,803
Unallocated:
 Discontinued operation                            -              -         495              247
 Investments in associates                        12             12          12               12
 Deferred tax assets/(liabilities)                 5          (312)          11            (315)
 Other non-operating assets/(liabilities)(2)     137          (271)         150            (312)
Group trading capital employed                 5,640          4,048       6,393           4,435
Financial asset investments                       40             40          31              31
Net debt                                          60        (1,273)          33         (1,200)
Group assets                                   5,740          2,815       6,457          3,266

                                             As at 31 December 2011      As at 31 December 2010
                                                                   Net                        Net
                                               Segment        segment      Segment        segment
EUR million                                   assets(1)        assets     assets(1)         assets

Europe & International
 Packaging Paper                                 1,593          1,249        1,526          1,208
 Fibre Packaging                                 1,131            866        1,139            840
 Consumer Packaging                                175            131          239            183
 Uncoated Fine Paper                             1,473          1,283        1,672          1,512
 Intra-segment elimination                       (131)              -        (116)              -

Total Europe & International                     4,241          3,529        4,460          3,743

South Africa Division                              964            828        1,091            953
Newsprint businesses                                 94            59          141            106
Corporate & other businesses                          6             3            10             7
Inter-segment elimination                          (40)             -          (63)             -

Segments total                                   5,265          4,419        5,639          4,809
Unallocated:
 Discontinued operation                              -              -          507            393
 Investments in associates                          10             10           16             16
 Deferred tax assets/(liabilities)                   5          (305)           21          (328)
 Other non-operating assets/(liabilities)2         140          (291)          193          (336)

Group trading capital employed                   5,420          3,833        6,376          4,554
Financial asset investments                         33             33           34             34
Net debt                                           192          (831)           83        (1,364)

Group assets                                     5,645          3,035        6,493          3,224

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 Other non-operating assets consist of derivative assets, current income tax receivables, other non-operating receivables and assets held for
  sale. Other non-operating liabilities consist of derivative liabilities, non-operating provisions, current income tax liabilities, other non-operating
  payables and deferred income, and liabilities directly associated with assets classified as held for sale.

Additions to non-current non-financial assets
                                                Additions to non-current non-     Capital expenditure cash
                                                       financial assets(1)                 payments(2)
                                                 Six months          Six months   Six months       Six months
                                                   ended 30     ended 30 June          ended 30 ended 30 June
EUR million                                       June 2012              2011      June 2012             2011

Europe & International
 Packaging Paper                                         125               22             34              20
 Fibre Packaging                                          29               43             28              34
 Consumer Packaging                                        8                7              7               7
 Uncoated Fine Paper                                      21               21             24              33

Total Europe & International                             183               93             93              94

South Africa Division                                     42               34             15              13
Newsprint businesses                                       3                4              1               2

Segments total                                           228              131            109             109
Unallocated:
 Discontinued operation                                     -              18               -             17

Group total                                              228              149            109            126

                                Additions to non-current non-  Capital expenditure cash
                                       financial assets(1)              payments(2)
                               Year ended 31   Year ended 31 Year ended 3 1 Year ended 31
                                   December         December      December       December
EUR million                            2011             2010          2011           2010

Europe & International
 Packaging Paper                         66             94              67           109
 Fibre Packaging                         82             77              72            59
 Consumer Packaging                      15             10              15            11
 Uncoated Fine Paper                     51            138              61           151

Total Europe & International            214            319             215           330

South Africa Division                    66             71              27            28
Newsprint businesses                      7             10               4             7
Corporate & other businesses              -              -               -             1

Segments total                          287            400             246           366
Unallocated:
 Discontinued operation                  18             28              17            28

Group total                             305            428            263            394

Notes:
1 Additions to non-current non-financial assets reflect cash payments and accruals in respect of additions to property, plant and equipment,
  intangible assets and forestry assets and include interest capitalised as well as additions resulting from acquisitions through business
  combinations. Additions to non-current non-financial assets, however, exclude additions to deferred tax assets, retirement benefits surplus and
  non-current financial assets.
2 Capital expenditure cash payments exclude business combinations, interest capitalised and investments in intangible and forestry assets.

Production statistics
                                                           Six months    Six months  Year ended 31
                                                             ended 30 ended 30 June       December
                                                           June 2012         2011            2011
Europe & International
 Containerboard                                 Tonnes    1,042,937       991,970       2,009,984
 Kraft paper                                    Tonnes      489,279       535,238         955,741
 Softwood pulp                                  Tonnes      992,772     1,011,757       1,954,284
 Internal consumption                           Tonnes      907,194       934,588       1,799,577
 External                                       Tonnes       85,578        77,169         154,707
 Corrugated board and boxes                     Mm²             606           609           1,213
 Industrial bags                                M units       2,005         2,050           3,958
 Coating and release liners                     Mm²           1,758         1,797           3,357
 Consumer packaging                             Mm²             376           373             702
 Uncoated fine paper                            Tonnes      715,575       712,886       1,400,991
 Newsprint                                      Tonnes       98,936        97,931         199,337
 Hardwood pulp                                  Tonnes      527,310       527,889       1,033,226
  Internal consumption                          Tonnes      483,642       496,518         975,121
  External                                      Tonnes       43,668        31,371          58,105
South Africa Division
 Containerboard                                 Tonnes      132,251       126,516         257,680
 Uncoated fine paper                            Tonnes      129,337       114,686         233,837
 Hardwood pulp                                  Tonnes      330,963       282,284         637,205
  Internal consumption                          Tonnes      169,584       153,402         316,388
  External                                      Tonnes      161,379       128,882         320,817
 Softwood pulp                                  Tonnes       51,859       58,646          115,606
 Woodchips                                      Bone dry
                                                tonnes       68,632       101,454         206,150
Newsprint Joint Ventures (attributable share)
 Aylesford                                      Tonnes       96,509        95,955         188,536
 Mondi Shanduka Newsprint (MSN)                 Tonnes       58,770        61,548         124,914
 
Exchange rates
                                                Six months    Six months Year ended 31
                                                  ended 30 ended 30 June     December
                                                 June 2012          2011         2011

Closing rates against the euro
 South African rand                                 10.37          9.86         10.48
 Pounds sterling                                     0.81          0.90          0.84
 Czech koruna                                       25.64         24.34         25.79
 Polish zloty                                        4.25          3.99          4.46
 Russian rouble                                     41.37         40.40         41.77
 Turkish lira                                        2.28          2.35          2.44
 US dollar                                           1.26          1.45          1.29
Average rates for the period against the euro
 South African rand                                 10.29          9.69         10.10
 Pounds sterling                                     0.82          0.87          0.87
 Czech koruna                                       25.16         24.35         24.59
 Polish zloty                                        4.24          3.95          4.12
 Russian rouble                                     39.69         40.14         40.88
 Turkish lira                                        2.34          2.21          2.34
 US dollar                                           1.30          1.40          1.39



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