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Mondi Limited - Mondi Group interim results for 6 months ended 30 June 2013

Release Date: 08/08/2013 08:00
Code(s): MND MNP     PDF:  
Wrap Text
Mondi Group interim results for 6 months ended 30 June 2013

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

8 August 2013

As part of the dual listed company structure, Mondi Limited and Mondi plc (together "Mondi Group") notify both
the JSE Limited and the London Stock Exchange of matters required to be disclosed under the JSE Listings
Requirements and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing
Authority.

Half-yearly results for the six months ended 30 June 2013

Financial highlights
-  Underlying operating profit of EUR366 million, up 35%
-  Underlying earnings of 49.4 euro cents per share, up 60%
-  Cash generated from operations of EUR431 million, up 21%
-  Interim dividend of 9.55 euro cents per share, up 7%
-  ROCE of 14.8%, well in excess of through-the-cycle hurdle rate of 13%

Operational highlights
-  Integration of acquisitions and related synergy targets on track
-  Major capital projects on time and within budget

Financial summary

                                                                                        Six months
                                                           Six months    Six months       ended 31
                                                             ended 30 ended 30 June       December
                                                            June 2013          2012           2012
EUR million, except for percentages and per share measures                (Restated)(4)  (Restated)(4)

Group revenue                                                  3,342          2,819          2,971
                    
Underlying EBITDA(1)                                             554            437            490
Underlying operating profit(1)                                   366            272            302
Underlying profit before tax(1)                                  310            216            243
Operating profit                                                 285            272            275
Profit before tax                                                229            222            146

Per share measures
Basic underlying earnings per share (EUR cents)                 49.4           30.9           38.3
Basic earnings per share (EUR cents)                            35.3           31.7           18.4

Interim dividend per share (EUR cents)                          9.55           8.90  
Free cash flow per share(2) (EUR cents)                         14.7           10.3           42.4

Cash generated from operations                                   431            355            494
Net debt                                                       1,844          1,257          1,872

Group Return on Capital Employed (ROCE)(3)(%)                   14.8           13.4           13.6

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.  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.

3.  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.

4.  The Group has restated comparative information following the adoption of revised IFRS standards relating to consolidations, joint ventures and
    employee benefits. Full details of the restatements are set out in note 2 of the half-yearly financial statements.

David Hathorn, Mondi Group chief executive, said:

"A strong operating performance and benefits derived from our strategic acquisitions completed
towards the end of the previous year have enabled Mondi to deliver record financial results despite
what remains a challenging economic backdrop.

The strong profitability and relentless focus on performance is reflected in a return on capital
employed of 14.8%, which remains well above our through-the-cycle hurdle rate of 13%.

A focus over the past six months has been on integrating and optimising the significant acquisitions
made towards the end of 2012 and executing the major expansion projects initiated over the past
eighteen months. I am pleased to report that we continue to make good progress in this regard. The
Group's major expansion projects are progressing according to plan and remain within budget. Some
of the synergies identified at the time of the acquisitions have already been achieved, and we remain
on track to meet the previously announced synergy targets. Just as important, we have made good
progress in aligning organisational culture, which sets the platform for the future success of the
combined business.

Looking forward, new industry capacity in the uncoated fine paper segment, coupled with prevailing
demand softness in Europe, may impact the supply/demand balance in the short term. Furthermore,
the second half will be impacted by the Group's regular annual mill maintenance programmes.
However, with the momentum from the strong first half performance and the expected continuation of
a good pricing environment in the packaging grades, management remains confident of delivering in
line with its expectations."

Contact details

Mondi Group
David Hathorn                                             +27 11 994 5418
Andrew King                                               +27 11 994 5415
Lora Rossler                                              +27 83 627 0292
Kerry Crandon                                             +27 83 389 3738
FTI Consulting
Richard Mountain                                          +44 20 7269 7186
Sophie McMillan                                           +44 20 7909 684 466
Lerato Matsaneng                                          +27 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                      0808 162 4061 (toll-free)
Europe & Other          +800 246 78 700 (toll-free) or +27 11 535 3600

An online audio cast facility will be available via: www.mondigroup.com/HYResults13.

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 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 
8 August 2013.

Capital Markets Day

On 2 September 2013 Mondi will host a Capital Markets Day for investors and analysts in London, where
executive directors David Hathorn, Andrew King and Peter Oswald, together with other key senior
management, including business unit heads and innovation managers, will share insights into the Mondi
business.

Editors' notes

Mondi is an international packaging and paper Group, with production operations across 30 countries and
revenue of EUR5.8 billion in 2012. The Group's key operations are located in central Europe, Russia and South
Africa and as at the end of 2012, Mondi Group employed 25,700 people.

Mondi Group is fully integrated across the paper and packaging process, from the growing of wood and the
manufacture of pulp and paper (packaging paper and uncoated fine paper), to the conversion of packaging
paper into corrugated packaging, industrial bags, extrusion coatings and release liner. Mondi is also a
supplier of innovative consumer packaging solutions, advanced films and hygiene products components.

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 Carbon Disclosure Project's (CDP)
FTSE350 Carbon Disclosure Leadership Index for the third year and in CDP's FTSE350 Carbon Performance
Leadership Index for the first time in 2012.

Forward-looking statements

This document includes 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'. 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.

Any reference to future financial performance included in this announcement has not been reviewed or
reported on by the Group's auditors.

Group performance review

The positive momentum from the end of the previous year, with good sales volumes and reasonable price
levels in Europe, continued into the first half of the year. The Group's underlying operating profit of
EUR366 million, a record result for the Group, was 21% above that of the second half of 2012 and 35% above
that of the comparable prior year period. This reflects both the strong operating performance and reasonable
trading environment, particularly in Packaging Paper and the South Africa Division, and the benefit of the
Group's strategic acquisitions completed in the latter part of the previous year. Excluding the impact of the
major strategic acquisitions, underlying operating profit increased by 12% compared to the second half of
2012 and 24% on the comparable prior year period. The period under review also benefited from the absence
of any major mill maintenance shuts.

Compared to the first half of 2012, sales volumes increased across all major paper grades. While European
demand remains generally sluggish, this was compensated by market share gains, and in the case of kraft
paper, strong gains in export markets. A reasonable industry supply/demand dynamic, supported by some
supply side rationalisation, enabled the Group to maintain or increase selling prices in most key paper grades
during the period.

The Group's annual major maintenance shuts will all take place in the second half of the year, the impact of
which, at prevailing profit margins, is estimated to be in the range of EUR50 million to EUR60 million on underlying
operating profit when compared to the first half of the year.

At the underlying earnings per share level, in addition to the strong underlying operating profit, the Group
benefited from a lower effective tax rate and a lower non-controlling interest charge, the latter positively
impacted by the acquisition of the remaining minority interest in Mondi Swiecie in the first half of 2012.
Underlying earnings per share in the six months ended 30 June 2013 was 49.4 euro cents per share, a 60%
increase on the comparable prior year period and 29% better than that achieved in the second half of 2012.

The Group remains strongly cash generative with cash generated from operations of EUR431 million. Working
capital as a percentage of turnover was 13%, reflecting the normal seasonal pick-up in the first half of the year
as well as the changing business mix following the acquisition of Nordenia in the fourth quarter of 2012.

Capital expenditure of EUR167 million represents 89% of the Group's depreciation charge. Good progress is
being made on the major strategic projects, which should see the rate of capital expenditure increase in the
second half as planned.

Net debt of EUR1,844 million at 30 June 2013 decreased from EUR1,872 million at 31 December 2012. The bias of
the Group's financing related outflows towards the first half, coupled with the increase in working capital levels
negatively impacted net debt. This was offset by exchange gains of around EUR41 million from the devaluation of
certain currencies in which the Group's net debt is held, most notably the South African rand and Russian
rouble.

An interim dividend of 9.55 euro cents per share, up 7% on the prior year interim dividend of 8.90 euro cents
per share, has been declared.

Europe & International – Packaging Paper

                                                                 Six months
                                      Six months     Six months    ended 31
                                        ended 30  ended 30 June    December
EUR million, unless otherwise stated   June 2013           2012        2012
Segment revenue                            1,043            960         936
 – of which inter-segment revenue            267            249         220
EBITDA                                       195            150         171
Underlying operating profit                  148            104         123
Capital expenditure                           55             34          55
Net segment assets                         1,441          1,373       1,466
ROCE %                                      20.1           18.5        17.9

Packaging Paper benefited from increased sales volumes and higher average selling prices compared to both
the comparable prior year period, and the previous six months. These positive trading conditions resulted in
an underlying operating profit of EUR148 million, 42% above the comparable prior year period, delivering a very
strong ROCE of 20.1%.

Sales volumes increased for all grades despite a generally soft demand environment in Europe. The business
benefited from market share gains and good demand in export markets for kraft paper. Selling price
increases were achieved across all containerboard grades during the second quarter. In recycled
containerboard, increased competitor capacity in Poland has to date only had a muted effect on markets,
while the recently announced capacity closures in the UK have served to improve market fundamentals.
Nonetheless, industry profitability in the recycled containerboard grades remains unsatisfactory. During July,
the Group announced price increases of EUR50/tonne for recycled containerboard, to take effect from August
2013. In kraft paper, the pricing environment remained stable, with Europe remaining under pressure but
offset by continued good export markets.

Except for paper for recycling costs, which were lower than the comparable prior year period, input costs per
tonne were largely unchanged. Average benchmark paper for recycling costs were 4% higher than the
second half of the previous year. Synergy benefits, in the form of reduced transport and logistics costs from
the acquisition of the corrugated box plants in Germany and the Czech Republic in the latter half of 2012,
were realised during the period. Production and productivity were strong in all mills, with the white-top
kraftliner mill in Syktyvkar showing a notable improvement.

The market price of green energy credits in Poland remained below prevailing levels of the previous year as a
consequence of ongoing uncertainty created by proposed changes to the regulatory environment surrounding
renewable energy in Poland. As previously reported, the carrying value of green energy credits was written
down by EUR11 million in the first quarter of the year. In addition, the benefits from green energy credits in
Poland in the first half of 2013 were more than 50% lower than the comparable prior year period.

Europe & International – Fibre Packaging
                                                                                                                                          Six months
                                                                                                               Six months    Six months     ended 31
                                                                                                                 ended 30 ended 30 June     December
EUR million, unless otherwise stated                                                                            June 2013          2012         2012
Segment revenue                                                                                                     1,002           946          914
 – of which inter-segment revenue                                                                                      17            19           23
EBITDA                                                                                                                 83            80           88
Underlying operating profit                                                                                            48            47           54
Capital expenditure                                                                                                    35            28           48
Net segment assets                                                                                                    982           916          958
ROCE %                                                                                                               12.0          10.9         12.5

Underlying operating profit of EUR48 million was in line with the comparable prior year period, but below that of
the second half of the previous year as the business was impacted by higher input costs, primarily due to
rising paper prices.

The acquisition of the corrugated box plants in Germany and the Czech Republic in the last quarter of 2012
contributed positively to underlying operating profit in the corrugated business. However, paper input price
increases put pressure on margins, offsetting in large part the gains from the acquisitions.

Industrial bags benefited from good demand from the US and Middle East, offsetting reduced sales volumes
in central and western Europe. Margins were at similar levels to the comparable prior year period, supported
by strong cost reduction initiatives.

Weak demand, particularly for automotive and building applications, and increasing raw material costs,
coupled with increased competitor capacity have impacted on margins in the coatings business.

Europe & International – Consumer Packaging
                                                                                                                                       Six months
                                                                                                             Six months    Six months    ended 31
                                                                                                               ended 30 ended 30 June    December
EUR million, unless otherwise stated                                                                          June 2013          2012        2012
Segment revenue                                                                                                     582           150         352
 – of which inter-segment revenue                                                                                     2             1           3
EBITDA                                                                                                               66            15          30
Underlying operating profit                                                                                          39            10           9
Capital expenditure                                                                                                  24             7          21
Net segment assets                                                                                                  875           145         872
ROCE % – adjusted*                                                                                                 10.1          14.6        10.8

* Adjusted to exclude EUR14 million of one-off costs in the second half of 2012 relating to the acquisition of Nordenia.

Consumer Packaging generated underlying operating profit of EUR39 million with an adjusted ROCE of 10.1%.
The significant increase in underlying operating profit versus both the comparable prior year period and the
second half of the previous year is due to the acquisition of Nordenia, completed on 1 October 2012. The
comparability of the results for the second half of 2012 were further impacted by one-off effects associated
with the acquisition of EUR14 million. On a pro-forma basis, assuming Nordenia was acquired at the beginning of
2012, and excluding the effects of acquisition accounting, the underlying operating profit of the combined
business increased by around 11% versus the comparable prior year period.

Sales volumes were marginally down on the comparable prior year period, driven by weakness in the films
business. This was more than compensated by the delivery of net synergy gains and other cost reduction
initiatives.

Integration activities remain well on track, with delivery of synergies in line with expectations. The previously
announced closure of the Lindlar operation in Germany and resulting transfer of production to plants in
Germany, Hungary and the Czech Republic is progressing according to plan.

Europe & International – Uncoated Fine Paper
                                                                                                                                     Six months
                                                                                                      Six months       Six months      ended 31
                                                                                                        ended 30    ended 30 June      December
EUR million, unless otherwise stated                                                                   June 2013             2012          2012
Segment revenue                                                                                              740              749           717
 – of which inter-segment revenue                                                                              8                8             5
EBITDA                                                                                                       157              154           146
Underlying operating profit                                                                                  102              100            91
Capital expenditure                                                                                           36               24            34
Net segment assets                                                                                         1,176            1,270         1,248
ROCE %                                                                                                      17.4             15.7          16.7

Uncoated Fine Paper generated underlying operating profit of EUR102 million, marginally above the comparable
prior year period. Sales volumes were slightly above that of the comparable prior year period, mainly due to
the timing of the annual maintenance shut in Syktyvkar which took place in June of the previous year and will
take place in the third quarter of 2013. Average net selling prices were lower than the comparable prior year
period and the second half of the previous year. The stronger Russian rouble in the early part of the year
resulted in increased competition from importers, impacting margins in that region. This was partly
compensated by further cost reduction initiatives.

Sales volumes into western Europe continue to be affected by the structural decline in those markets whilst
central and eastern Europe remain largely unchanged. Sales volumes into Russia and overseas markets
increased. To date there has been little market impact from the new capacity coming on stream from
competitors in Russia and France.

In May 2013, Mondi announced plans to restructure the non-integrated Neusiedler operation to improve the
competitiveness of the mill. Negotiations with employee unions are currently in progress. An impairment
charge of EUR42 million and related restructuring costs of EUR8 million were recognised as a special item in the
period.

Input costs remain well controlled. Unit wood costs at both the Syktyvkar and Ruzomberok mills decreased,
with the benefits from improved forestry management practices at Syktyvkar offsetting inflationary cost
pressures. Higher pulp prices negatively impacted margins at the non-integrated Neusiedler mill. Fixed cost
increases continue to be well controlled with increases below inflation.

South Africa Division
                                                                                                                                      Six months
                                                                                                      Six months       Six months       ended 31
                                                                                                        ended 30    ended 30 June       December
                                                                                                       June 2013             2012           2012
EUR million, unless otherwise stated                                                                                   (restated)     (restated)
Segment revenue                                                                                              325              348            354
 – of which inter-segment revenue                                                                             56               57             51
EBITDA                                                                                                        67               56             69
Underlying operating profit                                                                                   44               29             40
Capital expenditure                                                                                           14               17             26
Net segment assets                                                                                           687              903            821
ROCE %                                                                                                      12.8              9.1            9.6

Comparative information has been restated with Mondi Shanduka Newsprint now consolidated as a subsidiary for all periods presented.

South Africa Division delivered a strong performance, with underlying operating profit of EUR44 million, a 52%
increase on the comparable prior year period, and ROCE of 12.8%. This reflects the impact of higher
domestic selling prices, good domestic containerboard volume growth, and improved export margins due to
the weaker South African rand coupled with higher average export pulp and containerboard prices.
South Africa Division continues to focus on cost containment, in particular on reducing forestry costs through
increased mechanisation in the current year.

Comparison with the previous six months is distorted by a large fair value gain on the revaluation of forestry
assets of EUR27 million recognised in the six months to end 2012. The comparable amount for the first half of
2013 was EUR10 million.

In May 2013, Mondi announced the proposed closure of one of the two newsprint machines located in
Merebank. The machine stopped production with effect from 1 July 2013. The business will continue to
operate the remaining 120,000 tonne per annum newsprint machine. Further restructuring activities in the
Merebank mill as a result of the closure of the newsprint machine were also implemented. In total, a special
item charge of EUR18 million was recognised.

Financial review

Input costs

Wood costs were, on average, lower than the comparable prior period and reflect a steady downward trend
over the last three half-year periods.

Average benchmark hardwood pulp prices increased by 7% from the comparable prior year period and by 1%
over the second half of 2012, largely as a consequence of price increases in the second quarter. Softwood
pulp prices increased by 3% over the second half of 2012, but remained 1% below the average in the
comparable prior year period.

Average benchmark paper for recycling prices were 15% lower than the comparable prior year period but 4%
higher than the prices of the second half of 2012.

The average benchmark low density polyethylene price, an indicator of the key raw material input cost in
Consumer Packaging, was at similar levels to the comparable prior year period and 1% above that of the
second half of 2012. Average prices decreased by approximately 6% in the second quarter from the levels
experienced at the beginning of the year.

Currencies

With the exception of the South African rand, the currencies in which the Group operates continue to trade
within a relatively narrow range and the impact on underlying operating profit remains muted. The South
African rand weakened by a further 12% against the euro from the average rate in the second half of the prior
year and has weakened by more than 25% from levels at June 2012. This devaluation provided a net benefit
to the Group due to South Africa Division's large export position (accounting for approximately 40% of sales)
and predominantly rand-denominated cost base.

Non-controlling interests

The reduction in earnings attributable to non-controlling interests is largely as a result of the acquisition of the
remaining minority interest in Mondi Swiecie in the second quarter of 2012, offset in part by higher net
earnings at the 51% owned Ruzomberok mill.

Tax

The Group's underlying effective tax rate of 18% is lower than the comparable prior year period primarily due
to a favourable underlying profit mix as well as the continued benefit of investment incentives in eastern
Europe, principally in Poland.

Special items

The net special item charge of EUR81 million before tax, the cash component of which amounts to EUR26 million, is
attributable to:

-  the closure of Consumer Packaging's Lindlar operation in Germany (EUR13 million);

-  the closure of the newsprint machine in Merebank, South Africa and related restructuring activities;
   (EUR18 million), and

-  impairment of Uncoated Fine Paper's Neusiedler mill and related restructuring costs (EUR50 million).

Cash flow

Cash generated from operations of EUR431 million, including the impact of the increase in working capital of
EUR129 million, reflects the continued strong cash generating capacity of the Group.

Net cash outflows from financing activities of EUR178 million include the payment of dividends to holders of non-
controlling interests, the payment of the final 2012 dividend in May 2013 and payment of the 5.75% coupon on
the EUR500 million Eurobond, reflecting the bias of financing activities towards the first half of the year.

Capital expenditure

Capital expenditure for the period amounted to EUR167 million, 89% of depreciation.

The energy investments in the Group's Frantschach, Richards Bay and Stambolijski mills are progressing in
line with expectations and are expected to be completed towards the end of the second half of the year.
These projects will significantly improve the energy efficiency and self-sufficiency at those mills. Good
progress is being made on the other major projects announced earlier in the year, with the bleached kraft
paper machine in Steti expected to start up in the first half of 2014 and the recovery boiler in Ruzomberok in
the latter part of 2014.

The Group's capital expenditure is expected to remain around the previously envisaged range of
approximately 125% of depreciation on average over the 2013/2014 period, with 2014 being the peak spend
year.

Treasury and borrowings

Net debt at 30 June 2013 was EUR1,844 million, a decrease of EUR28 million from 31 December 2012. The net
debt to 12 month trailing EBITDA ratio was 1.8 times and gearing at 30 June 2013 was 40%.

At the end of June 2013, the EUR100 million European Investment Bank facility put in place in December 2011
was fully drawn down. The amortising loan matures in 2025 and incurs interest based on Euribor. The South
African bilateral facilities that matured in the first half of 2013 have been extended for an additional year on
similar terms. At 30 June 2013, the Group had EUR2.6 billion of committed facilities of which EUR743 million were
undrawn. The weighted average maturity of the Eurobonds and committed debt facilities was 4.0 years at 30
June 2013.

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.

Finance charges of EUR57 million were similar to those of the comparable prior year notwithstanding the
significant increase in average net debt from the levels at 30 June 2012. The lower effective interest rate of
5.5% (first half of 2012: 9.4%) is due to the effect of the EUR500 million Eurobond issued in October 2012 with a
coupon of 3.375% and the unwinding of various fixed rate swaps during 2012.

Dividend

An interim dividend of 9.55 euro cents per share has been declared by the directors and will be paid on 17
September 2013 to those shareholders on the register of Mondi plc on 23 August 2013. An equivalent South
African rand interim dividend will be paid on 17 September 2013 to shareholders on the register of Mondi
Limited on 23 August 2013. 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 2012.

Outlook

New industry capacity in the uncoated fine paper segment, coupled with prevailing demand softness in
Europe, may impact the supply/demand balance in the short term. Furthermore, the second half will be
impacted by the Group's regular annual mill maintenance programmes. However, with the momentum from
the strong first half performance and the expected continuation of a good pricing environment in the packaging
grades, management remains confident of delivering in line with its expectations.

Supplementary information

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. In addition, the DLC audit committee
reviews each of the principal risks in detail over the course of the year. Additional risk reviews are undertaken
on an ad-hoc basis for significant investment decisions and when changing business conditions dictate.

The Boards' risk management framework addresses all significant strategic, sustainability, financial,
operational and compliance-related risks which could undermine the Group's ability to achieve its business
objectives in a sustainable manner. The risk management framework is designed to be flexible, to ensure that
it remains relevant at all levels of the business given the diversity of the Group's locations, markets and
production processes; and dynamic, to ensure that it remains current and responsive to changing business
conditions.

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.

Competitive environment in which Mondi operates

The industry in which Mondi operates is highly competitive and subject to significant volatility. New capacity
additions are usually in large increments which, combined with product substitution towards lighter weight
products and alternative packaging solutions and increasing environmental considerations, have an impact on
the supply/demand balance and hence on market prices.

Mondi monitors industry developments in terms of changes in capacity as well as trends and developments in
its own product range and potential substitutes. A flexible and responsive approach to market and operating
conditions and the Group's strategic focus on low-cost production in growing markets, with consistent
investment in its operating capacity serve to mitigate this risk.

In 2012, the acquisitions of Nordenia and the corrugated packaging plants in Germany and the Czech
Republic, as well as the disposal of Aylesford Newsprint, further position the Group in its selected strategic
growth areas.

Cost and availability of a sustainable supply of raw materials

Fibre (wood, pulp and paper for recycling) and resins account for approximately one-third of the Group's input
costs. It is the Group's objective to acquire fibre from sustainable sources and to avoid the use of any illegal
or controversial supply.

All plantations in South Africa and leased/managed forests in Russia are FSC™ certified. With the exception
of Stambolijski, Bulgaria, all mills have chain-of-custody certificates in place, ensuring that the wood procured
in 2012 was from non-controversial sources. Stambolijski will be certified to FSC™ chain-of-custody
standards in 2013 and currently wood supplies meet Mondi's minimum wood standards that ensure legality
and non-controversial wood sources. Mondi constantly monitors international market prices for its other raw
materials (paper for recycling and resins) and, where possible, has cost pass-through mechanisms in place
with customers to mitigate the risk of input cost increases. The Group's focus on high-quality, low-cost
operations, relatively high levels of integration and access to its own fibre in Russia and South Africa further
mitigate this risk.

Cost of energy and related input costs

Non-fibre input costs comprise approximately a third of the Group's total variable costs. Increasing energy
costs, and the consequential impact thereof on both chemical and transport costs, may impact the Group's
operating profit margins.

Active investment in energy-related projects have significantly improved energy self-sufficiency and efficiency
in the Group.

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. The Group has adequate insurance in place to cover material
property damage, business interruption and liability risks. 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.

The locations in which the Group operates

Mondi 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. In
addition, economic risks in certain regions are heightened following the macroeconomic uncertainties
experienced in recent years.

Mondi is invested in a number of geographical locations, with a strategic focus on low-cost high-growth
markets. This geographical diversity and decentralised management structure, utilising local resources in
countries in which the Group operates reduces its exposure to any specific jurisdiction. Mondi continues to
actively monitor and adapt to changes in the environments in which it operates.

Attraction and retention of key skills and talent

The complexity of operations and geographic diversity of the Group is such that high-quality, experienced
employees are required in all locations.

Appropriate reward and retention strategies are in place to attract and retain talent across the organisation. At
more senior levels, these include a share-based incentive scheme.

Employee and contractor safety

Mondi's employees work in potentially dangerous environments where hazards are ever-present and must be
managed. Mondi's objective is a zero harm environment.

The Group engages in extensive safety training sessions, involving employees and contractors, at all its
operations. The Nine Safety Rules to Live By, applied across the Group, are integral to the safety strategy.
Operations conduct statutory safety committee meetings where management and employees are represented.
A risk-based approach underpins safety and health programmes. All business units and operations are
required to have safety improvement plans in place. Mondi's Total Recordable Case Rate (TRCR per
200,000 hours worked) at 30 June 2013 was 0.76 (31 December 2012: 0.79). Regrettably, there were two
fatalities at our Syktyvkar operations in the first half of the year.

Environmental footprint

Maintaining the Group's socio-economic licence to trade is a strategic imperative. This encompasses
continued access to credible sources of fibre as described above, protection of High Conservation Value
(HCV) areas and bio-diversity, eco-efficiency of products throughout their life cycle and the Group's carbon
and energy footprint.

Mondi's approach to product stewardship is based on the Life-Cycle Initiative set out in the United Nations
Environmental Programme (UNEP). The Group's certified products carry clear and informative labelling to
ensure that its customers are aware of the environmental process controls and health and safety assessments
conducted throughout the life cycles of Mondi's products. In 2012, no incidents of non-compliance relating to
the regulation and voluntary codes, to which the Group subscribes, concerning product and service
information and labelling were recorded. Mondi does not convert natural forests, riparian areas, wetlands or
protected areas into plantations. HCV areas are identified and preserved or enhanced, as is biological
diversity. In Russia 522,260 hectares have been set aside for conservation (24.8% of our landholding) and
76,398 hectares in South Africa (25% of our landholding). Mondi uses biomass energy sources such as black
liquor as an alternative to fossil fuels at all of its mills. Some 58% of Mondi's fuel consumption comes from
biomass and a number of operations are completely energy self-sufficient.

Governance risks

The Group operates in a number of legal jurisdictions and non-compliance with legal and governance
requirements in these jurisdictions could expose the Group to significant risk if not adequately managed.

The Group's legal and governance risk management and compliance were set out in the Corporate
governance report in the integrated report and financial statements 2012.

Financial risks

Mondi's trading and financing activities expose the Group to financial risks that, if left unmanaged, could
adversely impact current or future earnings. These risks relate to the currencies in which the Group conducts
its activities, interest rate and liquidity risks as well as exposure to customer credit risk.

Mondi's approach to financial risk management is described in notes 37 and 38 of the annual financial
statements for the year ended 31 December 2012.

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 EUR743 million of undrawn committed debt facilities as at 30 June 2013 which should provide
sufficient liquidity in the medium term.

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.

The directors have reviewed the Group's strategy and latest financial forecasts, considered the assumptions
in the forecast and reviewed the critical risks which may impact the Group's performance. After making such
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.

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 2013 and a description of the principal risks and uncertainties for the remaining six months of the
   year ending 31 December 2013;

-  there have been no significant individual related party transactions during the first six months of the
   financial year;

-  with effect from 3 May 2013, Cyril Ramaphosa ceased to be a director of Mondi Limited and Mondi
   plc. As a result, all transactions with the Shanduka Group Proprietary Limited, in which Mr
   Ramaphosa held a 29.6% interest, and its subsidiaries, are no longer classified as related party
   transactions from that date; and

-  there have been no other significant changes in the Group's related party relationships.

David Hathorn                                                    Andrew King
Director                                                         Director

7 August 2013

Independent auditor's review report on interim financial information of
Mondi Limited

We have reviewed the accompanying interim financial information of Mondi Limited, comprising the
condensed statement of financial position as of 30 June 2013 and the condensed statement of comprehensive
income, condensed statement of changes in equity, condensed statement of cash flows and selected
explanatory notes for the six months then ended.

Directors' responsibility for the Interim Financial Statements

The directors are responsible for the preparation and presentation of this interim financial information in
accordance with International Financial Reporting Standard (IAS 34),‘Interim Financial Reporting', the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and the requirements of the
Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable
the preparation of interim financial statements that are free from material misstatement, whether due to fraud
or error.

Auditor's responsibility

Our responsibility is to express a conclusion on these interim financial statements based on our review. We
conducted our review in accordance with International Standard on Review Engagements (ISRE) 2410,
‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. This standard
requires us to conclude whether anything has come to our attention that causes us to believe that the interim
financial statements are not prepared in all material respects in accordance with the applicable financial
reporting framework. This standard also requires us to comply with relevant ethical requirements.

A review of interim financial statements in accordance with this standard 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 and consequently does not enable the auditor to obtain assurance that the auditor
would become aware of all significant matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.

We believe that the evidence we have obtained in our review is sufficient and appropriate to provide a basis
for our conclusion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying
interim financial information of Mondi Limited for the six months ended 30 June 2013 are not prepared, in all
material respects, in accordance with International Financial Reporting Standards (IAS 34),'Interim Financial
Reporting', the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the
requirements of the Companies Act of South Africa.

Deloitte & Touche
Registered Auditor

Per: Bronwyn Kilpatrick
Partner

7 August 2013

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 TP Pillay Consulting K Black 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 Mondi plc

We have been engaged by the company to review the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2013, 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 the related notes 1 to 22. 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 Conduct Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with
International Financial Reporting Standards (IFRSs) 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 2013 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 Conduct Authority.



Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
7 August 2013

Condensed combined and consolidated income statement
for the six months ended 30 June 2013

                                                                                      (Restated)                     (Restated)
                                                       (Reviewed)                     (Reviewed)                     (Audited)
                                               Six months ended 30 June        Six months ended 30 June        Year ended 31 December
                                                          2013                             2012                           2012
                                               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

Group revenue                             4     3,342         -      3,342      2,819          -    2,819      5,790          -     5,790
Materials, energy and consumables
used                                          (1,758)         -     (1,758)   (1,478)          -  (1,478)    (3,024)          -   (3,024)
Variable selling expenses                       (282)         -      (282)      (266)          -    (266)      (527)          -     (527)

Gross margin                                    1,302         -      1,302      1,075          -    1,075      2,239          -     2,239
Maintenance and other indirect 
expenses                                        (122)         -       (122)     (123)          -    (123)      (279)          -     (279)
Personnel costs                                 (484)      (16)       (500)     (409)          -    (409)      (834)       (16)     (850)
Other net operating expenses                    (142)      (10)       (152)     (106)          -    (106)      (199)       (10)     (209)
Depreciation, amortisation and
impairments                                     (188)      (55)       (243)     (165)          -    (165)      (353)        (1)     (354)

Operating profit/(loss)                 4;5       366      (81)        285        272          -      272        574       (27)       547
Non-operating special items               6         -         -          -          -          6        6          -       (64)      (64)
Net income/(loss) from associates                   1         -          1        (1)          -      (1)        (5)          -       (5)

Total profit/(loss) from operations
and associates                                    367      (81)        286        271          6      277        569       (91)       478
Net finance costs                                (57)         -        (57)      (55)          -     (55)      (110)          -     (110)
Investment income                                   2         -          2          -          -        -          4          -         4
Foreign currency losses                           (1)         -         (1)       (3)          -      (3)        (2)          -       (2)
Finance costs                             7      (58)         -        (58)      (52)          -     (52)      (112)          -     (112)

Profit/(loss) before tax                          310      (81)        229        216          6      222        459       (91)       368
Tax (charge)/credit                       8      (56)        13         (43)     (43)        (2)     (45)       (90)        (1)      (91)

Profit/(loss) for the financial
period                                            254      (68)        186        173          4      177        369       (92)       277


Attributable to:
 Non-controlling interests                                              15                             24                              35
 Equity holders of the parent
 companies                                                             171                            153                             242

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

Basic EPS                  (EUR cents)    9                           35.3                           31.7                            50.1
Diluted EPS                (EUR cents)    9                           35.3                           31.6                            49.9

Basic underlying EPS       (EUR cents)    9                           49.4                           30.9                            69.2
Diluted underlying EPS     (EUR cents)    9                           49.3                           30.8                            68.9

Basic headline EPS         (EUR cents)    9                           45.7                           30.9                            62.9
Diluted headline EPS       (EUR cents)    9                           45.6                           30.8                            62.7

Condensed combined and consolidated statement of comprehensive income
for the six months ended 30 June 2013
                                                                                                       (Restated)       (Restated)
                                                                                       (Reviewed)      (Reviewed)        (Audited)
                                                                                       Six months      Six months    Year ended 31
                                                                                    ended 30 June   ended 30 June         December
EUR million                                                                                  2013            2012             2012

Profit for the financial period                                                               186             177              277

Other comprehensive (expense)/income:
Items that may subsequently be reclassified to the combined and consolidated
income statement:
  Effect of cash flow hedges                                                                    -               3                2
  Gains on available-for-sale investments                                                       -               -                1
  Exchange differences on translation of foreign operations                                 (145)              48               49
  Share of other comprehensive income of associates                                           (1)               -                -
  Tax effect thereof                                                                            -               -                -
Items that will not subsequently be reclassified to the combined and consolidated
income statement
  Remeasurement of post-retirement benefit schemes                                             18            (35)             (61)
  Effect of asset ceiling on post-retirement benefit schemes                                  (1)              24               28
  Tax effect thereof                                                                          (4)               -                8

Other comprehensive (expense)/income for the financial period, net of tax                   (133)              40               27

Total comprehensive income for the financial period                                            53             217              304

Attributable to:
 Non-controlling interests                                                                      9              35               42
 Equity holders of the parent companies                                                        44             182              262

Condensed combined and consolidated statement of financial position
as at 30 June 2013
                                                                                         (Restated)     (Restated)
                                                                         (Reviewed)      (Reviewed)      (Audited)
                                                                     As at 30 June   As at 30 June        As at 31
EUR million                                                      Notes        2013            2012   December 2012

Intangible assets                                                              684             243             695
Property, plant and equipment                                                3,446           3,431           3,709
Forestry assets                                                  11            257             318             311
Investments in associates                                                        6              18               6
Financial asset investments                                                     25              24              26
Deferred tax assets                                                              8               5              10
Retirement benefits surplus                                      12              2               6               -
Derivative financial instruments                                                 -               2               -

Total non-current assets                                                     4,428           4,047           4,757

Inventories                                                                    767             663             783
Trade and other receivables                                                  1,112             927           1,010
Current tax assets                                                              17               5              10
Financial asset investments                                                      1               -               1
Cash and cash equivalents                                       17b             84              60              56
Derivative financial instruments                                                 9               5               4
Assets held for sale                                                             -               -               2

Total current assets                                                         1,990           1,660           1,866

Total assets                                                                 6,418           5,707           6,623

Short-term borrowings                                          17b-c          (265)          (294)           (281)
Trade and other payables                                                    (1,008)          (874)         (1,029)
Current tax liabilities                                                        (69)           (81)            (66)
Provisions                                                                     (75)           (34)            (67)
Derivative financial instruments                                                (4)            (5)             (4)

Total current liabilities                                                   (1,421)        (1,288)         (1,447)

Medium and long-term borrowings                                 17c         (1,664)        (1,023)         (1,648)
Retirement benefits obligation                                   12           (225)          (217)           (253)
Deferred tax liabilities                                                      (291)          (319)           (344)
Provisions                                                                     (33)           (29)            (33)
Derivative financial instruments                                                (1)            (1)             (1)
Other non-current liabilities                                                  (19)           (19)            (24)

Total non-current liabilities                                               (2,233)        (1,608)         (2,303)

Total liabilities                                                           (3,654)        (2,896)         (3,750)

Net assets                                                                   2,764           2,811           2,873

Equity
Share capital and stated capital                                               542             542             542
Retained earnings and other reserves                                         1,963           1,973           2,030

Total attributable to equity holders of the parent companies                 2,505           2,515           2,572
Non-controlling interests in equity                                            259             296             301

Total equity                                                                 2,764           2,811           2,873

The Group's condensed combined and consolidated financial statements, and related notes 1 to 22, were
approved by the Boards and authorised for issue on 7 August 2013 and were signed on its 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 2013
                                                                                                            (Restated)      (Restated)
                                                                                            (Reviewed)      (Reviewed)       (Audited)
                                                                                            Six months      Six months
                                                                                         ended 30 June   ended 30 June   Year ended 31
EUR million                                                                        Notes          2013            2012   December 2012

Cash generated from operations                                                     17a             431             355             849
Dividends from associates                                                                            -               -               1
Dividends from other investments                                                                     -               -               1
Income tax paid                                                                                   (75)            (45)           (109)

Net cash generated from operating activities                                                       356             310             742

Cash flows from investing activities
Investment in property, plant and equipment                                                      (164)           (110)           (294)
Investment in intangible assets                                                                    (3)             (3)             (9)
Investment in forestry assets                                                                     (20)            (30)            (51)
Investment in financial asset investments                                                          (4)             (4)             (7)
Proceeds from the disposal of property, plant and equipment and
intangible assets                                                                                   21               5              15
Proceeds from the disposal of financial asset investments                                            4               4               4
Acquisition of subsidiaries, net of cash and cash equivalents                       14               -            (34)           (381)
Investment in associates                                                                             -               -            (43)
Proceeds from the disposal of businesses, net of cash and cash
equivalents                                                                                          3               1               1
Loan (advances to)/repayments from related parties                                                   -             (3)               1
Loan repayments from external parties                                                                -               -              16
Interest received                                                                                    2               1               3
Other investing activities                                                                           -               -             (1)

Net cash used in investing activities                                                            (161)           (173)           (746)

Cash flows from financing activities
Repayment of short-term borrowings                                                 17c            (19)            (59)           (114)
Proceeds from medium and long-term borrowings                                      17c             108             291             613
Repayment of medium and long-term borrowings                                       17c            (52)            (51)            (65)
Interest paid                                                                                     (68)            (59)            (92)
Dividends paid to equity holders of the parent companies                            10            (92)            (85)           (128)
Purchases of treasury shares                                                                      (23)            (34)            (34)
Dividends paid to non-controlling interests                                         10            (50)            (29)            (29)
Non-controlling interests bought out                                                13             (2)           (296)           (298)
Net realised gain/(loss) on held for trading derivatives                                            16               2             (9)
Government grants received                                                                           2               -               -
Other financing activities                                                                           2               -               -

Net cash used in financing activities                                                            (178)           (320)           (156)

Net increase/(decrease) in cash and cash equivalents                                                17           (183)           (160)

Cash and cash equivalents at beginning of financial period1                        17c            (37)             119             119
Cash movement in the financial period                                              17c              17           (183)           (160)
Effects of changes in foreign exchange rates                                       17c              11             (1)               4

Cash and cash equivalents at end of financial period1                                              (9)            (65)            (37)


Note:
1.  Cash and cash equivalents include overdrafts and cash flows from disposal groups and are reconciled to the condensed combined and
    consolidated statement of financial position in note 17b.

Condensed combined and consolidated statement of changes in equity
for the six months ended 30 June 2013
                                                                                          Total
                                                                                attributable to
                                                 Combined                        equity holders 
                                            share capital                                of the           Non-
                                               and stated    Retained      Other         parent    controlling          Total
EUR million                                       capital    earnings   reserves      companies      interests         equity

At 31 December 2011, as previously
reported                                              542       2,041          3          2,586            449          3,035
Effect of restatement                                   -           -          -              -            (3)            (3)

At 1 January 2012 (Restated)                          542       2,041          3          2,586            446          3,032
Total comprehensive income for the
financial period                                        -         153         29            182             35            217
Dividends paid                                          -        (85)          -           (85)           (29)          (114)
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 (Restated)                            542       1,944         29          2,515            296          2,811

Total comprehensive income for the
financial period                                        -          89        (9)             80              7             87
Dividends paid                                          -        (43)          -           (43)              -           (43)
Disposal of businesses (see note 16)                    -           -         15             15              -             15
Non-controlling interests bought out                    -         (1)          -            (1)            (1)            (2)
Reclassification                                        -        (12)         12              -              -              -
Other                                                   -           2          4              6            (1)              5
 
At 31 December 2012 (Restated)                        542       1,979         51          2,572            301          2,873

Total comprehensive income for the
financial period                                        -         171      (127)             44              9             53
Dividends paid                                          -        (92)          -           (92)           (50)          (142)
Issue of shares under employee share
schemes                                                 -          10       (10)              -              -              -
Purchases of treasury shares                            -        (23)          -           (23)              -           (23)
Non-controlling interests bought out                    -         (1)          -            (1)            (1)            (2)
Other                                                   -           -          5              5              -              5

At 30 June 2013                                       542       2,044       (81)          2,505            259          2,764


Other reserves                                                                                     (Restated)    (Restated)
                                                                                   (Reviewed)      (Reviewed)     (Audited)
                                                                                   Six months      Six months Year ended 31
                                                                                     ended 30        ended 30      December
EUR million                                                                         June 2013       June 2012          2012

Share-based payment reserve                                                                13              14            18
Cumulative translation adjustment reserve                                               (291)           (171)         (151)
Cash flow hedge reserve                                                                     -               1             -
Post-retirement benefit reserve                                                          (56)            (66)          (69)
Merger reserve                                                                            259             259           259
Other sundry reserves                                                                     (6)             (8)           (6)

Group total                                                                              (81)              29            51

Notes to the condensed combined and consolidated financial statements
for the six months ended 30 June 2013

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
2013 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 2012, prepared in
accordance with IFRS as issued by the International Accounting Standards Board (IASB).

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
Group has also complied with the South African Institute of Chartered Accountants Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued
by the Reporting Standards Council of South Africa. The condensed combined and consolidated financial
statements have been prepared on a going concern basis as discussed in the Group performance review,
under the heading ‘Going concern'.

The information for the year ended 31 December 2012 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.

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.

These financial statements have been prepared under the supervision of the Group chief financial officer,
Andrew King CA (SA), as required in terms of Section 29(1)(e)(ii) of the Companies Act of South Africa 2008.

2a 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 2012, except as set
out below.

The Group has adopted the following Standards and amendments to published Standards during the current
year, and their impact on the Group's results were as follows:

-  IFRS 10 - Consolidated Financial Statements
-  IFRS 11 - Joint Arrangements
-  IAS 19 (revised) - Employee Benefits

IFRS 10 and IFRS 11 broadened the concept of control and eliminated the option of proportionate
consolidation for joint ventures, except in certain circumstances. The impact of these Standards has been that
Mondi Shanduka Newsprint Proprietary Limited has been consolidated whilst Aylesford Newsprint has been
accounted for using the equity method up to the date of sale in 2012. Comparative information has been
restated as set out in note 2b.

IAS 19 (revised) impacted the measurement of the various components representing movements in the
defined benefit pension obligation and associated disclosures. As the Group has always recognised actuarial
gains and losses immediately, the Group's total obligation was unchanged. This Standard has been adopted
with effect from 1 January 2012 as it was impractical to complete revised actuarial valuations prior to that
date. Following the replacement of expected returns on plan assets with a net finance cost in the combined
and consolidated income statement, the profit for the period was reduced and accordingly other
comprehensive income increased in 2012. Comparative information for the year ended 31 December 2012
has been restated as set out in note 2b.

The following Standards and amendments to published Standards which the Group has adopted during the
current year, had no significant impact on the Group's results except for the addition of certain disclosures:

-  IFRS 7 - Financial Instruments: Disclosure
-  IFRS 13 - Fair Value Measurement
-  IFRS 12 - Disclosure of Interests in Other Entities
-  IAS 1 - Presentation of Financial Statements
-  IAS 16 - Property, Plant and Equipment
-  IAS 27 - Separate Financial Statements
-  IAS 28 - Investments in Associates and Joint Ventures
-  IAS 32 - Financial Instruments: Presentation
-  IAS 34 - Interim Financial Reporting

2b  Restatement of comparative information

The following tables summarise the material impacts resulting from the changes in accounting policies on the
Group's financial position, comprehensive income and cash flows.

Income statement
                                                      Six months ended 30 June 2012             Year ended 31 December 2012
                                                           As                                      As
                                                   previously       Effect of              previously       Effect of
EUR million                                          reported     restatement As restated    reported     restatement   As restated

Group revenue                                           2,840            (21)       2,819       5,807            (17)         5,790

Gross margin                                            1,076             (1)       1,075       2,235              4          2,239

Operating profit                                          269               3         272         541              6            547
Non-operating special items                                 6               -           6        (64)              -           (64)
Net income/(loss) from associates                           1             (2)         (1)          1             (6)            (5)

Total profit from operations and associates
                                                          276               1         277         478              -            478
Net finance costs
                                                         (53)             (2)        (55)       (107)            (3)          (110)
Investment income                                           6             (6)           -          10            (6)              4
Foreign currency losses                                   (3)               -         (3)         (2)              -            (2)
Finance costs                                            (56)               4        (52)       (115)              3          (112)

Profit before tax                                         223             (1)         222         371            (3)            368
Tax charge                                               (45)               -        (45)        (92)              1           (91)

Profit for the financial period                           178             (1)         177         279            (2)            277


Attributable to:
 Non-controlling interests                                 25             (1)          24          35              -             35
 Equity holders of the parent companies                   153               -         153         244            (2)            242

The restatement had no impact on special items.

                                                             As                                      As
Earnings per share (EPS) for profit attributable     previously         Effect of       As   previously       Effect of
to equity holders of the parent companies              reported       restatement restated     reported    restatement    As restated



Basic EPS                 (EUR cents)                      31.7                 -     31.7         50.5           (0.4)          50.1
Diluted EPS               (EUR cents)                      31.6                 -     31.6         50.3           (0.4)          49.9

Basic underlying EPS      (EUR cents)                      30.9                 -     30.9         69.6           (0.4)          69.2
Diluted underlying EPS    (EUR cents)                      30.8                 -     30.8         69.3           (0.4)          68.9

Basic headline EPS        (EUR cents)                      30.9                 -     30.9         63.4           (0.5)          62.9
Diluted headline EPS      (EUR cents)                      30.8                 -     30.8         63.1           (0.4)          62.7

Statement of comprehensive income
                                                             Six months ended 30 June 2012             Year ended 31 December 2012
                                                                  As                                      As
                                                          previously     Effect of                previously    Effect of
EUR million                                                   reported restatement  As restated     reported  restatement  As restated

Profit for the financial period                                 178            (1)          177          279          (2)          277

Other comprehensive income/(expense):
Items that may subsequently be reclassified to the
combined and consolidated income statement                       51              -           51           52            -           52
Items that will not subsequently be reclassified to the
combined and consolidated income statement                     (11)              -         (11)         (27)            2         (25)

Other comprehensive income for the financial
period, net of tax                                               40              -           40           25            2           27

Total comprehensive income for the financial
period                                                          218            (1)          217          304            -          304

Attributable to:
 Non-controlling interests                                       36            (1)           35           42            -           42
 Equity holders of the parent companies                         182              -          182          262            -          262


Statement of financial position
                                                                   As at 30 June 2012                     As at 31 December 2012
                                                                As                                        As
                                                        previously      Effect of                 previously     Effect of
EUR million                                                 reported    restatement   As restated     reported   restatement  As restated

Non-current assets                                           4,068           (21)         4,047        4,755             2        4,757
Current assets                                               1,672           (12)         1,660        1,859             7        1,866

Total assets                                                 5,740           (33)         5,707        6,614             9        6,623


Current liabilities                                        (1,323)             35       (1,288)      (1,443)            (4)      (1,447)
Non-current liabilities                                    (1,602)             (6)      (1,608)      (2,295)            (8)      (2,303)

Total liabilities                                          (2,925)             29       (2,896)      (3,738)          (12)       (3,750)

Net assets                                                   2,815             (4)        2,811        2,876            (3)       2,873

Equity
Share capital and stated capital                               542               -          542          542              -         542
Retained earnings and other reserves                         1,973               -        1,973        2,030              -       2,030

Total attributable to equity holders of the parent
companies                                                    2,515               -        2,515        2,572              -       2,572
Non-controlling interests in equity                            300             (4)          296          304            (3)         301

Total equity                                                 2,815             (4)        2,811        2,876            (3)       2,873


Net debt                                                   (1,273)             16       (1,257)      (1,864)            (8)      (1,872)

Statement of cash flows
                                                                  Six months ended 30 June 2012                  Year ended 31 December 2012
                                                                     As                                             As
                                                             previously       Effect of                      previously      Effect of
EUR million                                                      reported     restatement     As restated        reported    restatement     As restated

Net cash generated from operating activities                        308               2             310             740              2             742
Net cash used in investing activities                              (175)              2            (173)           (725)           (21)           (746)
Net cash used in financing activities                              (314)             (6)           (320)           (173)            17            (156)

Net decrease in cash and cash equivalents                          (181)             (2)           (183)           (158)            (2)           (160)

Cash and cash equivalents at beginning of financial
period                                                              117               2             119             117              2             119
Cash movement in the financial period                              (181)             (2)           (183)           (158)            (2)           (160)
Effects of changes in foreign exchange rates                         (1)              -              (1)              4              -               4

Cash and cash equivalents at end of financial
period                                                              (65)              -             (65)            (37)             -             (37)

3 Seasonality

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

4 Operating segments

The newsprint joint venture, Mondi Shanduka Newsprint, was incorporated into the South Africa Division
during 2012 due to similarities in geographical location, production processes and the integrated nature of the
production facilities. Mondi Shanduka Newsprint Proprietary Limited is now consolidated as a subsidiary. The
effects of this change on the comparative periods are set out in note 2b. The Group's segmental information
for the comparative periods has been restated to reflect this change in accounting policy.

Six months ended 30 June 2013 (Reviewed)
                                                                                                           Corporate & Intersegment          Segments
                                                 Europe & International                     SA Division          other    elimination           Total
                                     Packaging       Fibre   Consumer      Uncoated
EUR million, unless otherwise stated       Paper   Packaging  Packaging    Fine Paper

Segment revenue                         1,043       1,002         582           740               325                -           (350)          3,342
Internal revenue                        (267)         (17)         (2)           (8)              (56)               -            350               -

External revenue                          776         985         580           732               269                -              -           3,342

EBITDA                                    195          83          66           157                67              (14)             -             554
Operating profit/(loss) from
operations before special items           148          48          39           102                44              (15)             -             366
Special items                               -           -         (13)          (50)              (18)               -              -             (81)
Operating segment assets                1,793       1,239       1,018         1,366               810                7           (129)          6,104
Operating net segment assets            1,441         982         875         1,176               687                7              -           5,168
Additions to non-current non-
financial assets                           57          25          25            33                34                -              -             174
Capital expenditure cash
payments                                   55          35          24            36                14                -              -             164
Operating margin (%)                     14.2         4.8         6.7          13.8              13.5                -              -            11.0
Return on capital employed (%)           20.1        12.0         7.8          17.4              12.8                -              -            14.8

Six months ended 30 June 2012 (Restated) (Reviewed)
                                                                                                     Corporate & Intersegment     Segments
                                                 Europe & International                SA Division         other    elimination       Total
                                     Packaging       Fibre   Consumer       Uncoated
EUR million, unless otherwise stated       Paper   Packaging  Packaging     Fine Paper

Segment revenue                           960         946         150            749           348             -           (334)      2,819
Internal revenue                        (249)         (19)         (1)            (8)          (57)            -            334           -

External revenue                          711         927         149            741           291             -              -       2,819

EBITDA                                    150          80          15            154            56           (18)             -         437
Operating profit/(loss) from
operations before special items           104          47          10            100            29           (18)             -         272
Special items                               -           -           -              -             6             -              -           6
Operating segment assets                1,709       1,207         189          1,469         1,053             7           (170)      5,464
Operating net segment assets            1,373         916         145          1,270           903             9              -       4,616
Additions to non-current non-
financial assets                          125          29           8             21            46             -              -         229
Capital expenditure cash
payments                                   34          28           7             24            17             -              -         110
Operating margin (%)                     10.8         5.0         6.7           13.4           8.3             -              -         9.6
Return on capital employed (%)           18.5        10.9        14.6           15.7           9.1             -              -        13.4

Year ended 31 December 2012 (Restated) (Audited)
                                                                                                     Corporate & Intersegment     Segments
                                                 Europe & International                SA Division         other   elimination       Total
                                     Packaging       Fibre    Consumer        Uncoated
EUR million, unless otherwise stated       Paper   Packaging   Packaging      Fine Paper
 
Segment revenue                         1,896       1,860          502        1,466           702               -         (636)      5,790
Internal revenue                        (469)         (42)          (4)         (13)         (108)              -          636          -

External revenue                        1,427       1,818          498        1,453           594               -            -       5,790
 
EBITDA                                    321         168           45          300           125             (32)           -         927
Operating profit/(loss) from
operations before special items           227         101           19          191            69             (33)           -         574
Special items                               -        (16)          (11)           -             6             (70)           -         (91)
Operating segment assets                1,829       1,229        1,019        1,450           975               5         (150)      6,357
Operating net segment assets            1,466         958          872        1,248           821               1            -       5,366
Additions to non-current non-
financial assets                          249         144          621           60            93               -            -       1,167
Capital expenditure cash
payments                                   89          76           28           58            43               -            -         294
Operating margin (%)                     12.0         5.4          3.8         13.0           9.8               -            -         9.9
Return on capital employed (%)           17.9        12.5          6.2         16.7           9.6               -            -        13.6

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 product type presented below.

External revenue by product type
                                                                                                  (Restated)   (Restated)
                                                                                  (Reviewed)     (Reviewed)      (Audited)
                                                                                  Six months     Six months Year ended 31
                                                                                    ended 30       ended 30      December
EUR million                                                                          June 2013      June 2012          2012

Products
Fibre packaging                                                                         963            909          1,785
Packaging paper                                                                         766            689          1,393
Uncoated fine paper                                                                     669            687          1,355
Consumer packaging                                                                      580            149            498
Pulp                                                                                    133            140            276
Newsprint                                                                                97            108            215
Other                                                                                   134            137            268

Group total                                                                           3,342          2,819          5,790

                                         External revenue by location of           External revenue by location of
                                                    customer                                 production
                                                       (Restated)   (Restated)                   (Restated)   (Restated)
                                        (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 2013          2012          2012     June 2013          2012          2012

Revenue
Africa
 South Africa                                 217           219            448          325            348            702
 Rest of Africa                               129           125            242            5              5              8

Africa total                                  346           344            690          330            353            710

Western Europe
 Austria                                       83            75            145          506            526          1,025
 Germany                                      509           378            783          496            171            486
 United Kingdom                               137           108            230           28             29             53
 Rest of western Europe                       730           648          1,287          372            349            693

Western Europe total                        1,459         1,209          2,445        1,402          1,075          2,257

Emerging Europe
 Poland                                       227           175            364          448            382            766
 Rest of emerging Europe                      457           394            816          595            544          1,086

Emerging Europe total                         684           569          1,180        1,043            926          1,852

Russia                                        314           291            592          389            359            729
North America                                 181           124            270          143             89            196
South America                                  29            21             41            -              -              -
Asia and Australia                            329           261            572           35             17             46

Group total                                 3,342         2,819          5,790        3,342          2,819          5,790

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

Reconciliation of operating profit before special items
                                                                                                      (Restated)    (Restated)
                                                                                        (Reviewed)    (Reviewed)     (Audited)
                                                                                        Six months    Six months Year ended 31
                                                                                          ended 30 ended 30 June      December
EUR million                                                                              June 2013          2012          2012

Operating profit before special items                                                          366           272           574
Special items (see note 6)                                                                    (81)             6          (91)
Net income/(loss) from associates                                                                1           (1)           (5)
Net finance costs                                                                             (57)          (55)         (110)

Group profit before tax                                                                        229           222           368

Reconciliation of operating segment assets
                                                                              (Restated)                     (Restated)
                                                   (Reviewed)                (Reviewed)                       (Audited)
                                               As at 30 June 2013        As at 30 June 2012           As at 31 December 2012
                                                                  Net                        Net                           Net
                                                 Segment      segment    Segment         segment        Segment        segment
EUR million                                       assets       assets     assets          assets         assets         assets

Segments total                                     6,104        5,168      5,464           4,616          6,357          5,366
Unallocated:
Investments in associates                              6            6         18              18              6              6
Deferred tax assets/(liabilities)                      8        (283)          5           (314)             10          (334)
Other non-operating assets/(liabilities)             190        (308)        136           (276)            167          (319)

Group trading capital employed                     6,308        4,583      5,623           4,044          6,540          4,719
Financial asset investments                           25           25         24              24             26             26
Net debt                                              85      (1,844)         60         (1,257)             57        (1,872)

Group                                              6,418        2,764      5,707           2,811          6,623          2,873


5 Write-down of inventories to net realisable value
                                                                                                       (Restated)     (Restated)
                                                                                        (Reviewed)     (Reviewed)      (Audited)
                                                                                        Six months     Six months  Year ended 31
                                                                                          ended 30  ended 30 June       December
EUR million                                                                              June 2013           2012           2012

Condensed combined and consolidated income statement
Write-down of inventories to net realisable value                                             (12)            (9)           (19)
Aggregate reversal of previous write-down of inventories                                         4              3             13

6 Special items
                                                                                              (Restated)    (Restated)
                                                                                (Reviewed)    (Reviewed)     (Audited)
                                                                                Six months    Six months Year ended 31
                                                                                  ended 30 ended 30 June      December
EUR million                                                                      June 2013          2012          2012

Operating special items
Asset impairments                                                                     (55)             -            (1)
Restructuring and closure costs:
 Restructuring and closure costs excluding related personnel costs                    (10)             -            (4)
 Personnel costs relating to restructuring                                            (16)             -           (16)
Transaction costs incurred on the acquisition of Nordenia                               -              -           (11)
Gain on insurance settlement                                                            -              -             5

Total operating special items                                                         (81)             -           (27)

Non-operating special items
Loss on disposals (see note 16)                                                         -              -           (70)
Profit on sale of land                                                                  -              6             6

Total non-operating special items                                                       -              6           (64)

Total special items from continuing operations before tax and non-controlling         (81)             6           (91)
Tax                                                                                    13             (2)           (1)
Non-controlling interests                                                               -              -             -

Total special items attributable to equity holders of the parent companies            (68)             4           (92)

During the first quarter of the year a decision was taken to close the Lindlar operation in Germany and redirect
production to existing plants in Germany, Hungary and the Czech Republic. Restructuring and closure costs
amounting to EUR13 million were recognised.

In May 2013, Mondi announced the closure of one of the two newsprint machines located in Merebank.
Further restructuring activities in the Merebank mill as a result of the closure of the newsprint machine have
also been implemented. An impairment charge of EUR13 million and associated closure and restructuring costs
of EUR5 million were recognised.

In May 2013, Mondi announced plans to restructure the Neusiedler operation to improve the cost base of this
mill. An impairment charge of EUR42 million and restructuring costs of EUR8 million were recognised.

7 Finance costs
                                                                                              (Restated)     (Restated)
                                                                                (Reviewed)    (Reviewed)      (Audited)
                                                                                Six months    Six months  Year ended 31
                                                                                  ended 30 ended 30 June      December
EUR million                                                                      June 2013          2012          2012

Interest on bank overdrafts and loans                                                 (54)          (46)           (98)
Net interest on defined benefit arrangements                                           (5)           (6)           (15)

Total interest expense                                                                (59)          (52)          (113)
Less: interest capitalised                                                              1             -               1

Total finance costs                                                                   (58)          (52)          (112)
  
8           Tax charge
                                                                                                (Restated)   (Restated)
                                                                                 (Reviewed)    (Reviewed)     (Audited)
                                                                                 Six months    Six months Year ended 31
                                                                                   ended 30 ended 30 June      December
EUR million                                                                       June 2013          2012          2012

UK corporation tax at 23.25% (2012: 24.5%)                                                1             -             -
SA corporation tax at 28% (2012: 28%)                                                    13            10            19
Overseas tax                                                                             65            38            66

Current tax                                                                              79            48            85
Deferred tax                                                                           (23)           (5)             5

Total tax charge before special items                                                    56            43            90

Current tax on special items                                                            (6)             1             2
Deferred tax on special items                                                           (7)             1           (1)

Total tax (credit)/charge on special items                                             (13)             2             1

Total tax charge                                                                         43            45            91


The Group's effective rate of tax before special items for the six months ended 30 June 2013, calculated on
profit before tax before special items and including net income from associates, is 18% (six months ended 30
June 2012: 20%; year ended 31 December 2012: 20%). The Group continues to benefit from tax incentives
granted in certain countries in which the Group operates, most notably Poland.

9           Earnings per share
                                                                                                  (Restated)     (Restated)
                                                                                 (Reviewed)      (Reviewed)       (Audited)
                                                                                 Six months      Six months   Year ended 31
                                                                                   ended 30   ended 30 June        December
EUR cents per share                                                               June 2013            2012            2012

Profit for the financial period attributable to equity holders of the parent
companies
Basic EPS                                                                              35.3            31.7            50.1
Diluted EPS                                                                            35.3            31.6            49.9

Underlying earnings for the financial period
Basic EPS                                                                              49.4            30.9            69.2
Diluted EPS                                                                            49.3            30.8            68.9

Headline earnings for the financial period
Basic EPS                                                                              45.7            30.9            62.9
Diluted EPS                                                                            45.6            30.8            62.7

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

                                                                                    Weighted average number of shares
                                                                                 (Reviewed)      (Reviewed)      (Audited)
                                                                                                                  As at 31
                                                                              As at 30 June   As at 30 June       December
million                                                                                2013            2012           2012

Basic number of ordinary shares outstanding                                             484             483            483
Effect of dilutive potential ordinary shares                                              1               1              2

Diluted number of ordinary shares outstanding                                           485             484            485

                                                                                                 Earnings
                                                                                               (Restated)     (Restated)
                                                                               (Reviewed)      (Reviewed)      (Audited)
                                                                               Six months      Six months  Year ended 31
                                                                                 ended 30   ended 30 June       December
EUR million                                                                     June 2013            2012           2012

Profit for the financial period attributable to equity holders of the parent
companies                                                                             171             153            242
Special items                                                                          81             (6)             91
Related tax                                                                          (13)               2              1

Underlying earnings for the financial period                                          239             149            334

Special items: restructuring and closure costs                                       (26)               -           (20)
Transaction costs incurred on the acquisition of Nordenia                               -               -           (11)
Profit on disposal of tangible and intangible assets                                    -               -            (4)
Impairments not included in special items                                               1               -              4
Related tax                                                                             7               -              1

Headline earnings for the financial period                                            221             149            304

10     Dividends
The interim dividend for the year ending 31 December 2013 of 9.55 euro cents per ordinary share will be paid
on 17 September 2013 to those shareholders on the register of Mondi plc on 23 August 2013. An equivalent
South African rand interim dividend will be paid on 17 September 2013 to shareholders on the register of
Mondi Limited on 23 August 2013. 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 2012.

The interim dividend for the year ending 31 December 2013 will be paid in accordance with the following
timetable:
                                                                                Mondi Limited       Mondi plc

Last date to trade shares cum-dividend
JSE Limited                                                                     16 August 2013      16 August 2013
London Stock Exchange                                                           Not applicable      20 August 2013

Shares commence trading ex-dividend
JSE Limited                                                                     19 August 2013      19 August 2013
London Stock Exchange                                                           Not applicable      21 August 2013

Record date
JSE Limited                                                                     23 August 2013      23 August 2013
London Stock Exchange                                                           Not applicable      23 August 2013

Last date for receipt of Dividend Reinvestment Plan (DRIP) elections
by Central Securities Depository Participants                                   29 August 2013      29 August 2013

Last date for DRIP elections to UK Registrar and South African
Transfer Secretaries by shareholders of Mondi Limited and Mondi plc             30 August 2013      23 August 2013*

Payment Date
South African Register                                                          17 September 2013   17 September 2013
UK Register                                                                     Not applicable      17 September 2013
DRIP purchase settlement dates                                                  26 September 2013   20 September 2013**

Currency conversion dates
ZAR/euro                                                                        8 August 2013       8 August 2013
Euro/sterling                                                                   Not applicable      30 August 2013

* 30 August 2013 for Mondi plc South African branch register shareholders.
** 26 September 2013 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 19 August 2013 and 25 August 2013, both dates inclusive, nor may transfers between
the UK and South African registers of Mondi plc take place between 14 August 2013 and 25 August 2013,
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 8 August 2013.

11          Forestry assets
                                                      (Restated)     (Restated)
                                        (Reviewed)    (Reviewed)      (Audited)
                                        Six months    Six months  Year ended 31
                                          ended 30 ended 30 June       December
EUR million                              June 2013          2012           2012

At 31 December, as previously reported                       297            297
Effect of restatement                                         12             12

At 1 January (Restated)                        311           309            309
Capitalised expenditure                         19            22             42
Acquisition of assets                            1             8              9
Fair value gains                                10            13             40
Disposal of assets                             (9)           (3)            (3)
Felling costs                                 (30)          (34)           (66)
Currency movements                            (45)             3           (20)

Closing balance                                257           318            311

The fair value of forestry assets is a level 3 measure in terms of the fair value measurement hierarchy (see
note 21). The fair value of forestry assets is calculated on the basis of future expected cash flows discounted
using a discount rate relevant in the local country, based on a pre tax real yield on long-term bonds over the
last five years. All fair value gains originate from South Africa.


12      Retirement benefits
All assumptions related to 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 2013. The
net retirement benefit obligation decreased by EUR30 million mainly due to changes in assumptions and an
exchange rate impact of EUR14 million. The assets backing the defined benefit scheme liabilities reflect their
market values as at 30 June 2013. Any movements in the assumptions have been recognised as a
remeasurement in the condensed combined and consolidated statement of comprehensive income.


13      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.

These acquisitions are reflected in the condensed combined and consolidated statement of changes in equity
as transactions between shareholders with the premium over the carrying value of the non-controlling
interests being reflected as a reduction in retained earnings.

14      Business combinations
There were no significant acquisitions made during the period ended 30 June 2013.

Acquisitions during 2012

On 2 May 2012, Mondi Swiecie S.A. acquired the entire share capital of Saturn Management Sp. Z o.o.
(Saturn) from Polish Energy Partners S.A. for a net cash consideration of EUR31 million and the assumption of
debt of EUR57 million.

On 1 October 2012 Mondi acquired 99.93% of the outstanding share capital of Nordenia from Oaktree Capital
Management L.P. and certain other minority shareholders for a cash consideration of EUR259 million.

On 5 November 2012, Mondi acquired two corrugated box plants in Germany and the Czech Republic and a
105,000 tonne recycled containerboard mill in the Czech Republic from Duropack GmbH (Duropack) for a
cash consideration of EUR133 million. The recycled containerboard mill was subsequently closed in December
2012. Subsequent to 31 December 2012, the fair value of the property, plant and equipment attributable to
the assets acquired from Duropack was increased by EUR3 million and goodwill adjusted accordingly.

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:
Intangible assets                                                                  2           103             105
Property, plant and equipment                                                    324            22             346
Financial asset investments                                                       17             -              17
Deferred tax assets                                                                4             -               4
Inventories                                                                      123             5             128
Trade and other receivables                                                      143             -             143
Cash and cash equivalents                                                         53             -              53
Other current assets                                                               1             -               1
Short-term borrowings                                                           (67)             -            (67)
Trade and other payables                                                       (156)             -           (156)
Current tax liabilities                                                          (7)             -             (7)
Provisions                                                                      (28)           (1)            (29)
Medium and long-term borrowings                                                (348)          (45)           (393)
Retirement benefits obligation                                                  (21)             -            (21)
Deferred tax liabilities                                                        (15)          (26)            (41)
Other non-current liabilities                                                   (16)             -            (16)

Net assets acquired                                                               9             58              67

Goodwill arising on acquisitions                                                                               356

Total cost of acquisitions                                                                                     423
Transaction costs expensed                                                                                      11
Cash acquired net of overdrafts                                                                               (53)

Net cash paid per condensed combined and consolidated statement of cash
flows                                                                                                        381

EUR million                                                              Net assets     Goodwill   Net cash paid
Nordenia                                                                        (9)          268             237
Saturn                                                                           27            4              29
Duropack                                                                         49           84             115

Group total                                                                      67          356             381

15      Disposal groups and assets held for sale
There were no significant disposal groups or assets held for sale as at 30 June 2013.

16     Disposal of businesses
There were no significant disposals in the six months ended 30 June 2013 or the six months ended 30 June
2012.

Disposals during 2012

On 2 October 2012, Mondi and Svenska Cellulosa Aktiebolaget (SCA) sold their 100% interest in the jointly
owned Aylesford Newsprint to The Martland Holdings for a nominal consideration. The loss on disposal of EUR70
million was recognised as a special item in the combined and consolidated income statement. Transaction
costs were insignificant and were expensed.
                                                                                        (Restated)
                                                                                         (Audited)
                                                                                        Year ended
                                                                                       31 December
EUR million                                                                                   2012

Net investment in equity accounted investee                                                     48
Guarantee liability retained                                                                     7
Cumulative translation adjustment reserve realised                                              15
Loss on disposal of investment in equity accounted investee                                   (70)

Disposal proceeds                                                                                -
Deferred consideration received in respect of the sale of Mondi Frohnleiten in 2010              1

Net cash inflow from disposal of businesses                                                      1

17    Consolidated cash flow analysis
(a)   Reconciliation of profit before tax to cash generated from operations
                                                                                                  (Restated)    (Restated)
                                                                                   (Reviewed)     (Reviewed)     (Audited)
                                                                                   Six months     Six months Year ended 31
                                                                                     ended 30  ended 30 June      December
EUR million                                                                         June 2013           2012          2012

Profit before tax                                                                         229            222           368
Depreciation and amortisation                                                             187            165           349
Impairment of tangible and intangible assets (not included in special items)                1              -             4
Share-based payments                                                                        5              6            10
Non-cash effect of special items                                                           71            (4)            91
Net finance costs                                                                          57             55           110
Net (income)/loss from associates                                                         (1)              1             5
Decrease in provisions and post-employment benefits                                      (12)            (6)          (22)
Increase in inventories                                                                   (9)           (21)          (16)
Increase in operating receivables                                                       (138)           (91)          (38)
Increase/(decrease) in operating payables                                                  18              7          (29)
Fair value gains on forestry assets                                                      (10)           (13)          (40)
Felling costs                                                                              30             34            66
Profit on disposal of tangible and intangible assets                                        -              -           (4)
Other adjustments                                                                           3              -           (5)

Cash generated from operations                                                            431             355          849

(b)         Cash and cash equivalents
                                                                                                    (Restated)   (Restated)
                                                                                   (Reviewed)      (Reviewed)     (Audited)
                                                                                                                   As at 31
                                                                                 As at 30 June   As at 30 June     December
EUR million                                                                               2013            2012         2012

Cash and cash equivalents per condensed combined and consolidated statement of
financial position                                                                          84              60           56
Bank overdrafts included in short-term borrowings (see note 17c)                          (93)           (125)         (93)

Net cash and cash equivalents per condensed combined and consolidated
statement of cash flows                                                                    (9)            (65)         (37)

(c)     Movement in net debt (Restated)

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

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

At 31 December 2011                         117        (212)       (737)                  1      (831)
Effect of restatement                         2           18         (9)                  -         11

At 1 January 2012 (Restated)                119        (194)       (746)                  1      (820)
Cash flow                                 (183)           59       (240)                (1)      (365)
Business combinations                         -         (11)        (49)                  -       (60)
Movement in unamortised loan costs            -            -         (2)                  -        (2)
Reclassification                              -         (19)          19                  -          -
Currency movements                          (1)          (4)         (5)                  -       (10)

At 30 June 2012 (Restated)                 (65)        (169)     (1,023)                  -    (1,257)
Cash flow                                    23           55       (308)                  1      (229)
Business combinations                         -         (56)       (344)                  -      (400)
Movement in unamortised loan costs            -            -           5                  -          5
Reclassification                              -         (27)          27                  -          -
Currency movements                            5            9         (5)                  -          9

At 31 December 2012 (Restated)             (37)        (188)     (1,648)                  1    (1,872)
Cash flow                                    17           19        (56)                  -       (20)
Movement in unamortised loan costs            -            -           7                  -          7
Reclassification                              -         (20)          20                  -          -
Currency movements                           11           17          13                  -         41

At 30 June 2013                             (9)        (172)     (1,664)                  1    (1,844)

Note:

(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.

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                     2013            2012         2012

Expiry date
In one year or less               56              26           27
In more than one year            687             558          735

Total credit available           743             584          762

18          Capital commitments
                                                                                              (Restated)   (Restated)
                                                                               (Reviewed)     (Reviewed)    (Audited)
                                                                                                             As at 31
                                                                           As at 30 June   As at 30 June     December
EUR million                                                                         2013            2012         2012

Contracted for but not provided                                                      271             177          129
Approved, not yet contracted for                                                     361             228          589

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

                                                                                              (Restated)   (Restated)
                                                                               (Reviewed)     (Reviewed)    (Audited)
                                                                                                            As at 31
                                                                           As at 30 June   As at 30 June     December
EUR million                                                                         2013            2012         2012

Intangible assets                                                                      6              11            9
Property, plant and equipment                                                        626             394          709

Total capital commitments                                                            632             405          718

The expected maturity of these capital commitments is:
                                                                                                (Restated)  (Restated)
                                                                               (Reviewed)      (Reviewed)   (Audited)
                                                                                                             As at 31
                                                                           As at 30 June   As at 30 June     December
EUR million                                                                         2013            2012         2012

Within one year                                                                      438             269          445
One to two years                                                                     146             120          263
Two to five years                                                                     48              16           10

Total capital commitments                                                            632             405          718

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 are
expected to be financed by existing cash resources and borrowing facilities.


19      Contingent liabilities and contingent assets
Contingent liabilities comprise aggregate amounts as at 30 June 2013 of EUR14 million (as at 30 June 2012:
EUR13 million; as at 31 December 2012: EUR15 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.

20      Related party transactions
The Group has a related party relationship with its equity accounted investees. 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 equity accounted investees 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.

With effect from 3 May 2013, Cyril Ramaphosa ceased to be a director of Mondi Limited and Mondi plc. As a
result, all transactions with the Shanduka Group Proprietary Limited, in which Mr Ramaphosa held a 29.6%
interest, and its subsidiaries are no longer classified as related party transactions from that date.

Other than the paragraph above, 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 2012.


21       Financial instruments' fair value disclosures
Financial instruments that are measured in the condensed combined and consolidated statement of financial
position at fair value require disclosure of fair value measurements by level based on the following fair value
measurement hierarchy:

     -   level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
     -   level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or
         liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and
     -   level 3 – inputs for the asset or liability that are not based on observable market data (that is,
         unobservable inputs).

The fair values of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) are determined using standard valuation techniques. These valuation techniques maximise the
use of observable market data where available and rely as little as possible on Group specific estimates.

The significant inputs required to fair value all of the Group's financial instruments are observable. The Group
only holds level 2 financial instruments and therefore does not hold any financial instruments categorised as
either level 1 or level 3 financial instruments. There have also been no transfers of assets or liabilities
between levels of the fair value hierarchy.

Specific valuation methodologies used to value financial instruments include:

     -   the fair values of interest rate swaps and foreign exchange contracts are calculated as the present
         value of expected future cash flows based on observable yield curves and exchange rates;
     -   the Group's commodity price derivatives are fair valued by independent third parties, who in turn
         calculate the fair values as the present value of expected future cash flows based on observable
         market data; and
     -   other techniques, including discounted cash flow analysis, are used to determine the fair values of
         other financial instruments.

Except as detailed in the following table, the directors consider that the carrying value amounts of financial
assets and financial liabilities recorded at amortised cost in the condensed combined and consolidated
financial statements are approximately equal to their fair values.

                                     Carrying amount                                      Fair value
                                          (Restated)    (Restated)                        (Restated)    (Restated)
                          (Reviewed)     (Reviewed)      (Audited)        (Reviewed)      (Reviewed)     (Audited)
                                                          As at 31                                        As at 31
                      As at 30 June   As at 30 June       December     As at 30 June   As at 30 June      December
EUR million                    2013            2012           2012              2013            2012          2012

Financial liabilities
Borrowings                    1,929           1,317          1,929             2,013           1,372         2,040

22      Events occurring after 30 June 2013
The directors declared an interim dividend of 9.55 euro cents per share as set out in note 10.

Production statistics
                                                 Six months    Six months   Year ended 31
                                                   ended 30 ended 30 June        December
                                                  June 2013          2012            2012
Europe & International
 Containerboard                          Tonnes   1,077,702     1,042,937       2,079,005
 Kraft paper                             Tonnes     515,822       489,279         980,637
 Softwood pulp                           Tonnes   1,014,483       992,772       1,978,583
  Internal consumption                   Tonnes     942,445       907,194       1,825,916
  External                               Tonnes      72,038        85,578         152,667
 Corrugated board and boxes              Mm2            678           606           1,213
 Industrial bags                         M units      2,017         2,005           3,829
 Coating and release liners              Mm2          1,718         1,758           3,352
 Consumer packaging(1)                   Tonnes     146,763        36,706         121,127
 Uncoated fine paper                     Tonnes     708,880       715,575       1,417,709
 Newsprint                               Tonnes     103,620        98,936         201,278
 Hardwood pulp                           Tonnes     547,819       527,310       1,059,140
  Internal consumption                   Tonnes     513,366       483,642         972,883
  External                               Tonnes      34,453        43,668          86,257
South Africa Division
 Containerboard                          Tonnes     132,077       132,251         263,468
 Uncoated fine paper                     Tonnes     131,741       129,337         257,747
 Hardwood pulp                           Tonnes     326,981       330,963         658,368
  Internal consumption                   Tonnes     169,935       169,584         320,772
  External                               Tonnes     157,046       161,379         337,596
                 
 Softwood pulp(2) – internal consumption Tonnes     102,987       108,126         215,828
             
 Newsprint(2)                            Tonnes      87,088       101,328         198,024

Notes:

1. Includes Nordenia from October 2012.

2. Restated to include 100% of the Mondi Shanduka Newsprint production.

Exchange rates
                                                      Six months    Six months Year ended 31
                                                       ended 30 ended 30 June     December
                                                      June 2013          2012          2012

Closing rates against the euro
 South African rand                                       13.07         10.37         11.17
 Czech koruna                                             25.95         25.64         25.15
 Polish zloty                                              4.34          4.25          4.07
 Pounds sterling                                           0.86          0.81          0.82
 Russian rouble                                           42.84         41.37         40.33
 Turkish lira                                              2.52          2.28          2.36
 US dollar                                                 1.31          1.26          1.32

Average rates for the period against the euro
 South African rand                                       12.10         10.29         10.55
 Czech koruna                                             25.70         25.16         25.14
 Polish zloty                                              4.18          4.24          4.18
 Pounds sterling                                           0.85          0.82          0.81
 Russian rouble                                           40.73         39.69         39.91
 Turkish lira                                              2.38          2.34          2.31
 US dollar                                                 1.31          1.30          1.29

Sponsor in South Africa: UBS South Africa (Pty) Ltd
Date: 08/08/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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