Wrap Text
Half-yearly results for the six months ended 30 June 2014
Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550
Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
7 August 2014
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 Listings
Requirements of the JSE Limited 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 2014
Highlights
- Steady improvement in all key financial metrics
- Underlying operating profit of EUR377 million, up 3%
- Underlying earnings of 51.9 euro cents per share, up 5%
- Cash generated from operations of EUR439 million, up 2%
- ROCE of 16%, well in excess of through-the-cycle hurdle rate of 13%
- Acquisition of Graphic Packaging's bags and kraft paper operations consolidates global market leadership
position in Industrial Bags
- Capital projects
- Recently completed projects delivering on expectation
- Ongoing major projects on time, within budget
- Interim dividend of 13.23 euro cents per share, up 39%
Financial summary
Six months
Six months Six months ended 31
ended 30 ended 30 June December
EUR million, except for percentages and per share measures June 2014 2013 2013
Group revenue 3,148 3,342 3,134
Underlying EBITDA (1) 553 554 514
Underlying operating profit (1) 377 366 333
Underlying profit before tax (1) 328 310 276
Operating profit 374 285 320
Profit before tax 312 229 270
Per share measures
Basic underlying earnings per share (EUR cents) 51.9 49.4 45.6
Basic earnings per share (EUR cents) 48.6 35.3 44.5
Interim dividend per share (EUR cents) 13.23 9.55
Free cash flow per share (2)(EUR cents) 12.4 14.7
Cash generated from operations 439 431 605
Net debt 1,751 1,844 1,621
Group Return on Capital Employed (ROCE)(3)(%) 16.0 14.8 15.3
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, 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.
David Hathorn, Mondi Group chief executive, said:
"The Mondi Group continues to deliver a strong performance, generating a return on capital employed
of 16%. Strong cost management and contributions from successfully completed strategic capital
investments, together with the benefits from downstream integration in key packaging segments,
enabled the Group to offset the impact of lower prices in a number of paper grades.
We have continued to invest in the business for future growth. Highlights for the period included the
successful commissioning of the 155,000 tonne bleached kraft paper machine at the Steti mill in the
Czech Republic and the acquisition of Graphic Packaging's bags operations and kraft paper mill in the
United States. Together with the Group's ongoing capital expenditure programme, including
significant projects at our Ruzomberok, Swiecie and Syktyvkar operations, we are confident that these
investments will deliver strongly into the future.
In the near term, anticipated price increases in some of our packaging paper grades should provide
positive momentum. As in prior years, the second half of the year will be impacted by the planned
annual mill maintenance shuts.
Market fundamentals remain sound, which, coupled with a continued economic recovery, should
prove positive for further growth in the packaging businesses.
Overall, we remain confident that Mondi will continue to deliver an industry leading performance."
Contact details
Mondi Group
David Hathorn +27 11 994 5418
Andrew King +27 11 994 5415
Lora Rossler +27 83 627 0292
FTI Consulting
Richard Mountain +44 20 3727 1374
Sophie McMillan +44 20 3727 1359
Bheki Mpofu +27 83 552 2109
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/HYResults14.
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 7 August
2014.
Editors' notes
Mondi is an international packaging and paper Group, employing around 26,000 people in production facilities
across 31 countries. In 2013, Mondi had revenues of EUR6.5 billion and a ROCE of 15.3%. The Group's key
operations are located in central Europe, Russia, the Americas and South Africa.
The Mondi Group is fully integrated across the packaging and paper value chain - from the management of its
own forests and the production of pulp and paper (packaging paper and uncoated fine paper), to the
conversion of packaging 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 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's performance, and the responsible approach it takes to good business practice, has
been recognised by its inclusion in the FTSE4Good Global, European and UK Index Series (since 2008) and
the JSE's Socially Responsible Investment (SRI) Index since 2007.
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,
market growth and developments, expectations of growth and profitability and plans and objectives of
management for future operations, are forward-looking statements. Forward-looking statements are
sometimes identified by the use of forward-looking terminology such as "believe", "expects", "may", "will",
"could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes",
"positioned" or "anticipates" or the negative thereof, other variations thereon or comparable terminology. 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 and other statements contained in this document regarding
matters that are not historical facts involve predictions and are based on numerous assumptions regarding
Mondi's present and future business strategies and the environment in which Mondi will operate in the future.
These forward-looking statements speak only as of the date on which they are made.
No assurance can be given that such future results will be achieved; various factors could cause actual future
results, performance or events to differ materially from those described in these statements. Such factors
include in particular but without any limitation: (1) operating factors, such as continued success of
manufacturing activities and the achievement of efficiencies therein, continued success of product
development plans and targets, changes in the degree of protection created by Mondi's patents and other
intellectual property rights and the availability of capital on acceptable terms; (2) industry conditions, such as
strength of product demand, intensity of competition, prevailing and future global market prices for Mondi's
products and raw materials and the pricing pressures thereto, financial condition of the customers, suppliers
and the competitors of Mondi and potential introduction of competing products and technologies by
competitors; and (3) general economic conditions, such as rates of economic growth in Mondi's principal
geographical markets or fluctuations of exchange rates and interest rates.
Mondi expressly disclaims a) any warranty or liability as to accuracy or completeness of the information
provided herein; and b) any obligation or undertaking to review or confirm analysts' expectations or estimates
or to update any forward-looking statements to reflect any change in Mondi's expectations or any events that
occur or circumstances that arise after the date of making any forward-looking statements, unless required to
do so by applicable law or any regulatory body applicable to Mondi, including the JSE Limited and the LSE.
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 Group's underlying operating profit of EUR377 million was 3% above that of the first half of the previous
year and 13% above the second half of 2013. This reflects a strong performance from Packaging Paper,
Fibre Packaging and the South Africa Division, offset in part by weaker results from Uncoated Fine Paper and
Consumer Packaging.
On a like-for-like basis, excluding currency movements and disposal effects, revenue was in line with the
comparable prior year period.
Sales volumes in most of the Group's key paper grades remained largely unchanged from the levels of the
previous year, reflecting the continued slow economic recovery in Europe.
As anticipated, except for recycled containerboard, average benchmark selling prices across the Group's key
paper grades were lower than those of the previous year. Average benchmark recycled containerboard prices
were 10% above those of the first half of 2013 and 2% above the levels of the second half of 2013. Certain of
the downstream packaging businesses, most notably Corrugated Packaging and Consumer Packaging, saw
an increase in average price levels on the back of higher input costs.
Wood costs were higher in most European operations, while in Russia the weaker rouble offset higher
domestic wood costs. Average paper for recycling costs were similar to the comparable prior year period
although some reduction in benchmark prices was observed in the second quarter, with prices at the end of
the quarter 5% lower than the average for the half-year. The Group benefited from lower energy costs in the
period as a consequence of the effects of both the recently commissioned energy related capital expenditure
projects and a reduction in European natural gas prices.
Annual maintenance shuts took place at the Group's Swiecie mill in Poland and Richards Bay mill in South
Africa during June 2014. The balance of the annual maintenance shuts are scheduled for the second half of
the year. Consistent with the previous year, and based on prevailing market prices, the impact on underlying
operating profit of the Group's maintenance shuts is estimated at around EUR50 million to EUR60 million, of
which the first half effect was around EUR10 million.
The South Africa Division benefited from the weakening of the rand against both the euro and the US dollar
during the period. The Fibre Packaging and Uncoated Fine Paper business units were negatively impacted by
the weakening of the US dollar, Turkish lira and Russian rouble against the euro. The remaining currencies in
which the Group operates continued to trade in a relatively narrow band. The net effect of currency
movements only had a marginal impact on the Group's underlying operating profit when compared to the first
half of the prior year.
The Group continues to monitor the political developments in Russia and the Ukraine. To date there has been
no material impact on the Group's operations.
Underlying earnings per share increased by 5% over the comparable prior year period to 51.9 euro cents per
share, with lower net finance charges offset in part by an increase in the effective tax rate from 18% in the
prior year to 19% in the first half of 2014.
The Group remains strongly cash generative with cash generated from operations of EUR439 million similar to
that of the comparable prior year period. Working capital at 30 June 2014 was 13% of revenue (excluding the
working capital attributable to the recently acquired Graphic Packaging operations), consistent with 30 June
2013 but up on the December 2013 ratio of 11%, reflecting the normal seasonal uptick in the first half of the
year.
On 30 June 2014, Mondi acquired the bags and kraft paper business of Graphic Packaging for a total
consideration of USD105 million (EUR76 million) on a debt and cash-free basis. The business is a leading
player in the production and distribution of kraft paper and bags in the United States. The production base
comprises an integrated kraft paper mill located in Pine Bluff, Arkansas, with production capacity of 135,000
tonnes per annum, and nine bags plants across the US. The combination of these operations with Mondi's
creates a leading player in the North American bags market and further expands the Group's growing global
footprint in this market.
During the period, EUR249 million was incurred on capital expenditure. A number of the previously
announced strategic projects have been completed and are contributing positively to the Group's
performance. The remaining large projects remain on schedule and on budget.
On 10 June 2014, Mondi announced its intention to redeem the 9.75% EUR280 million Eurobond which was
assumed as part of the acquisition of Nordenia in October 2012. The notes were redeemed on 15 July 2014
at a premium of EUR14 million, utilising proceeds from the Group's existing borrowing facilities.
Net debt of EUR1,751 million at 30 June 2014 increased by EUR130 million from 31 December 2013. This
reflects the ramp-up of capital expenditure on major capital projects, the impact of the Graphic Packaging
acquisition, seasonally higher working capital levels at 30 June 2014 and the bias of the Group's financing
outflows towards the first half of the year. In the absence of further strategic acquisitions, strong de-
leveraging in the second half is anticipated.
An interim dividend of 13.23 euro cents per share, up 39% on the prior year interim dividend of 9.55 euro
cents per share, has been declared.
Europe & International – Packaging Paper
Six months
Six months Six months ended 31
ended 30 ended 30 December
EUR million, unless otherwise stated June 2014 June 2013 2013
Segment revenue 982 1,043 957
Underlying EBITDA 209 195 199
Underlying operating profit 162 148 150
% margin 16.5% 14.2% 15.7%
Capital expenditure 115 55 84
Operating net segment assets 1,558 1,441 1,484
ROCE 22.6% 20.1% 21.9%
Underlying operating profit of EUR162 million was 9% above that of the comparable prior year period despite
lower average virgin containerboard and kraft paper prices. The business benefited from higher green energy
revenues, higher average recycled containerboard prices, lower energy costs and generally strong cost
control.
European containerboard demand is estimated to be up around 2% year on year, reflecting the modest
economic growth seen across Europe. This demand growth has been balanced by new capacity in the
recycled grades. Demand for sack kraft paper remains strong in both European and export markets, with
growth in Europe supported by the mild winter.
Sales prices for virgin containerboard grades came under pressure in the early part of the year before
stabilising in the second quarter. Average benchmark selling prices for the period under review were 5%
lower than the comparable prior year period.
Average benchmark selling prices for recycled containerboard were 10% higher than the comparable prior
year period, benefiting from the implementation of price increases in the second half of the prior year. Prices
came under some pressure in the second quarter due to increased supply from newly installed capacity.
Given good demand and low inventory levels, price increases of EUR60/tonne for recycled containerboard
and EUR40/tonne for unbleached kraftliner and semi-chemical fluting have been announced in Europe with
effect from August and September 2014, respectively.
As anticipated, in kraft paper average selling prices were around 5% down on the comparable prior year
period and 4% down on the second half of 2013. On the back of a strong pick-up in demand, selling price
increases for unbleached sack kraft paper are currently being implemented.
In the first half of 2013, the carrying value of the Group's green energy credits was written down by
EUR11 million. Green energy prices in Poland have since recovered somewhat, although the uncertainties in
the regulatory environment surrounding green energy in Poland remain.
The annual maintenance shut at the Swiecie mill took place at the end of June 2014 and was completed in the
early part of July. The remaining annual maintenance shuts are scheduled for the second half of the year.
Europe & International – Fibre Packaging
Six months
Six months Six months ended 31
ended 30 ended 30 December
EUR million, unless otherwise stated June 2014 June 2013 2013
Segment revenue 1,003 1,002 965
Underlying EBITDA 88 83 80
Underlying operating profit 53 48 45
% margin 5.3% 4.8% 4.7%
Capital expenditure 34 35 43
Operating net segment assets 942 982 903
ROCE 11.6% 12.0% 10.8%
Operating profit increased by 10% to EUR53 million with a positive year-on-year contribution from all business
segments, reflecting generally higher volumes, higher selling prices in the Corrugated Packaging segment,
and lower input costs in Industrial Bags and Coatings, partially offset by foreign exchange losses.
Corrugated Packaging's results improved through volume growth, selling price increases and improved
margins. The segment achieved good volume growth in central Europe, particularly in Poland and the Czech
Republic, while volumes in Turkey were impacted by the decision to rationalise production capacity in the prior
year. The business was negatively impacted by currency translation losses in its Turkish business due to the
sharp devaluation of the Turkish lira.
Industrial Bags had a very positive start to the year, with strong order books and a significant increase in sales
volumes versus the comparable prior year period, particularly in the building segment. As anticipated,
average selling prices were down on the comparable prior year period due to the pass through of the
reduction in paper prices seen towards the end of the previous year. In line with the acquisition business plan,
the US industrial bags plants acquired at the end of June are not expected to contribute significantly to
underlying operating profit this year. However, as the synergies from the combination are realised and the
Group's expertise as the global market leader in this segment is applied, it is expected that the investment will
make a solid contribution in the future.
The Coatings business benefited from lower input costs and a reduction in fixed costs. Sales volumes
increased in some of the high value-add products, more than offset by declines in the industrial sector.
Europe & International – Consumer Packaging
Six months
Six months Six months ended 31
ended 30 ended 30 December
EUR million, unless otherwise stated June 2014 June 2013 2013
Segment revenue 550 582 571
Underlying EBITDA 60 66 63
Underlying operating profit 34 39 35
% margin 6.2% 6.7% 6.1%
Capital expenditure 32 24 32
Operating net segment assets 870 875 855
ROCE 8.5% 7.8% 9.1%
Operating profit of EUR34 million was 13% below that of the comparable prior year period, largely due to
volume declines in the mature markets of Europe and North America. Constant currency revenue reduced by
4.8%. While steps have been taken to pro-actively phase out lower value-added mature products, these
volumes are not currently being adequately replaced by sales into higher value-added segments due to the
ongoing weak trading conditions.
The business continues to enjoy good growth in the higher growth central and eastern European markets. On
31 July, the acquisition of a consumer packaging plant in Poland from Printpack Inc, for USD23 million
(EUR17 million) on a cash and debt free basis, was completed, adding to the Group's production capacity in
that region.
The structural growth drivers remain in place and steps are being implemented to address the current
challenges faced by the business. However, in the short term, performance is not expected to improve
significantly given the ongoing difficult trading environment.
Europe & International – Uncoated Fine Paper
Six months
Six months Six months ended 31
ended 30 ended 30 December
EUR million, unless otherwise stated June 2014 June 2013 2013
Segment revenue 674 740 648
Underlying EBITDA 133 157 120
Underlying operating profit 85 102 70
% margin 12.6% 13.8% 10.8%
Capital expenditure 59 36 44
Operating net segment assets 1,157 1,176 1,135
ROCE 15.8% 17.4% 16.2%
Uncoated Fine Paper generated underlying operating profit of EUR85 million, down on the comparable prior
year period as a result of lower selling prices in Europe and the weaker Russian rouble, partly offset by good
cost control and operational improvements, notably at the restructured Neusiedler mill in Austria.
Average European benchmark selling prices were 3% lower than the comparable prior year period and 1%
lower than the second half of 2013. Price increases were implemented in Russia in the first quarter on the
back of the weaker rouble with further increases announced for the second half of the year in certain grades.
Sales volumes were lower than the comparable prior year period following the restructuring in Austria,
although industry demand across Europe was modestly up. Demand in Russia remained stable.
In line with the previous year, the second half will be impacted by annual maintenance shuts at all key
facilities.
South Africa Division
Six months
Six months Six months ended 31
ended 30 ended 30 December
EUR million, unless otherwise stated June 2014 June 2013 2013
Segment revenue 284 325 299
Underlying EBITDA 78 67 68
Underlying operating profit 58 44 49
% margin 20.4% 13.5% 16.4%
Capital expenditure 9 14 38
Operating net segment assets 608 687 622
ROCE 20.5% 12.8% 16.0%
The South Africa Division continued to perform well and benefited from a weaker South African rand and fair
value gains on its forestry assets, delivering operating profit of EUR58 million, 32% above the comparable
prior year period.
The maintenance shut in Richards Bay was brought forward to June, compared to October in the previous
year, resulting in lower sales volumes of pulp and white-top containerboard versus the comparable prior year
period. Sales volumes for uncoated fine paper were in line with the prior year.
Average domestic selling prices were above both the comparable prior year period and the second half of the
previous year across all product grades. Export selling prices for white-top containerboard were unchanged,
while export prices for hardwood pulp declined, with international US dollar benchmark hardwood pulp prices
5% lower than the comparable prior year period.
Higher domestic input costs, impacted by inflationary increases and the weaker rand, were partially offset by
the sale of energy from the new steam turbine in Richards Bay, commissioned at the end of 2013.
Wood prices increased during the period, with the Division recognising a EUR20 million fair value gain in
respect of its forestry assets, EUR10 million higher than the gain recognised in the comparable prior year
period.
Financial review
Tax
The Group's underlying effective tax rate of 19% is 1% higher than the comparable prior year period, reflecting
a small shift in the underlying profit mix and a reduction in the benefit from investment related incentives.
Special items
The net special item charge of EUR16 million before tax is attributable to:
- EUR7 million charge for restructuring activities in the Group's Coatings business;
- EUR4 million gain in respect of the release of a provision for transaction costs attributable to the
Nordenia acquisition; and
- EUR13 million net charge on early redemption of the EUR280 million Eurobond.
Cash flow
Cash generated from operations of EUR439 million, including the impact of the seasonal increase in working
capital of EUR106 million, reflects the continued strong cash generating capacity of the Group.
Net cash outflows from financing activities of EUR165 million include the payment of dividends to holders of
non-controlling interests, the payment of the final 2013 dividend in May 2014 and payment of the 5.75%
coupon on the EUR500 million 2017 Eurobond.
Capital expenditure
Capital expenditure for the period amounted to EUR249 million.
The Group's significant energy related investments completed in the second half of 2013 are all operating
according to schedule.
In April 2014, the 155,000 tonne bleached kraft paper machine at the Steti mill in the Czech Republic was
successfully started up and production is being ramped up according to schedule.
The EUR128 million recovery boiler project in Ruzomberok and EUR30 million pulp dryer project in Syktyvkar
are expected to be commissioned towards the end of the third quarter, while the EUR166 million Swiecie
recovery boiler project remains on schedule for completion towards the end of 2015. The Group has
committed a further EUR60 million capital expenditure to its Kraft Paper and Corrugated Packaging business
units, bringing forward some planned future expenditure in order to further improve its competitive position in
these markets and take advantage of growth opportunities. All projects are running on schedule and on
budget.
The impact of the accelerated capital expenditure programmes in Kraft Paper and Corrugated Packaging,
together with the capital expenditure related to the newly acquired Graphic Packaging assets in the United
States, gives rise to a modest increase in the capital expenditure targets for the 2014/2015 period from around
EUR500 million per year as previously indicated, to around EUR550 million per year, in the absence of any
further major strategic capital investments.
Treasury and borrowings
Net debt at 30 June 2014 was EUR1,751 million, an increase of EUR130 million from 31 December 2013.
The net debt to 12 month trailing EBITDA ratio was 1.6 times and gearing at 30 June 2014 was 38%.
On 10 June 2014, Mondi announced the redemption of the EUR280 million Eurobond which was assumed as
part of the acquisition of Nordenia in October 2012. The notes were redeemed on 15 July 2014 at a premium
of EUR14 million, funded from the Group's existing borrowing facilities. The net charge on redemption of
EUR13 million was recognised as a special item at 30 June 2014.
On 14 July 2014, Mondi announced that it had extended the maturity of its EUR750 million revolving credit
facility from 2016 to 2019.
At 30 June 2014, the Group had EUR2.5 billion of committed facilities of which EUR745 million were undrawn.
Following the subsequent redemption of the Nordenia bond and extension of the Group's revolving credit facility, the
weighted average maturity of the Eurobonds and committed debt facilities is approximately 4.3 years.
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. Standard and Poor's has put their rating on a
positive outlook.
Finance charges of EUR50 million were below those of the comparable prior year period, reflecting the lower
average net debt for the period. The effective interest rate of 5.5% was unchanged from the comparable prior
year period.
Dividend
An interim dividend of 13.23 euro cents per share has been declared by the directors and will be paid on
16 September 2014 to those shareholders on the register of Mondi plc on 22 August 2014. An equivalent
South African rand interim dividend will be paid on 16 September 2014 to shareholders on the register of
Mondi Limited on 22 August 2014. 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 2013.
Outlook
In the near term, anticipated price increases in some of the Group's packaging paper grades should provide
positive momentum. As in prior years, the second half of the year will be impacted by the planned annual mill
maintenance shuts.
Market fundamentals remain sound, which, coupled with a continued economic recovery, should prove
positive for further growth in the packaging businesses.
Overall, management remains confident that Mondi will continue to deliver an industry leading performance.
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.
The executive committee, mandated by the Boards, has established a Group-wide system of internal control
to manage Group risks. The Group-wide system, which complies with corporate governance codes in South
Africa and the UK, supports the Boards in discharging their responsibility for ensuring that the wide range of
risks associated with Mondi's diverse international operations is effectively managed.
Continuous monitoring of risk and control processes across all key risk areas provides the basis for regular
reports to management, the executive committee and the Boards. On an annual basis, the executive
committee, the audit committee and the Boards conduct a formal systematic review of the Group's most
significant risks and uncertainties and the monitoring of and response to those risks. These risks are
assessed against pre-determined risk tolerance limits, established by the Boards, taking both the likelihood
and severity of the risk factors into consideration.
The 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 directors are satisfied that the Group has effective systems and controls in place to manage its key risks
within the risk tolerance levels established by the Boards. There have been no significant changes in the
Group's risk profile since the year end.
Competitive environment in which Mondi operates
The industry in which Mondi operates is highly competitive and selling prices are subject to significant
volatility. New capacity additions are usually in large increments which, combined with product substitution
towards lighter weight products, electronic substitution, alternative packaging solutions and increasing
environmental considerations, have a significant impact on the supply-demand balance and hence on market
prices.
The Group monitors industry developments in terms of changes in capacity as well as trends and
developments in its product markets and potential substitutes. Mondi's strategic focus on low-cost production
in growing markets with consistent investment in its operating capacity ensures that the Group remains
competitive. Mondi invests in research and development activities to improve existing processes and to
identify new markets and new products.
The locations in which the Group operates
The Group operates in a number of geographical locations in countries with differing levels of political,
economic and legal systems.
The Group continues to actively monitor and adapt to changes in the environments in which it operates.
Management engages in regular formal and informal interaction with the authorities to ensure they remain
abreast of new developments. Thorough country risk assessments are conducted and return requirements
adjusted to take country risk into consideration.
The Group's geographical diversity and decentralised management structure, utilising local resources in
countries in which it operates, reduces exposure to any specific jurisdiction. The Boards have established
limits on exposure to any particular geographic environment and new investments are subject to rigorous
strategic and commercial evaluation.
Mondi has around 15% of its capital employed in Russia and a limited presence in the Ukraine. The US, the
European Union and a number of other countries have recently imposed economic sanctions and certain
other measures on persons and corporate entities in Russia and the Ukraine. Possible additional sanctions
and/or other measures on Russia could have a material adverse effect on Mondi's business, financial
condition and/or results of operations. To date the measures imposed have had no material impact on the
Group's operations.
Capital intensive operations
Mondi operates large facilities, often in remote locations. The ongoing safety and sustainable operation of all
its facilities is critical to the success of the Group.
The management systems in place ensure 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.
Cost and availability of a sustainable supply of fibre
Paper for recycling and wood account for approximately one third of 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.
International market prices are constantly monitored and, where appropriate, cost pass through mechanisms
are in place with customers.
The Group maintains strong forestry management teams in Russia and South Africa to actively monitor
environmental influences impacting its owned sources of fibre. Mondi's relatively high levels of integration and
access to own FSCTM certified wood in Russia and South Africa serve to mitigate this risk. All the Group's
mills have chain-of-custody certificates in place ensuring that wood procured is from non-controversial
sources.
Cost of energy and related input costs
Energy and related input costs comprise approximately a third of the Group's variable costs. Increasing
energy costs, and the consequential impact thereof on both chemical and transport costs, may impact profit
margins.
Energy usage levels, emission levels and usage of renewable energy are monitored and energy costs are
benchmarked against external sources. The Group continues to invest in energy infrastructure at its key
operating facilities in order to improve energy efficiency and electricity self-sufficiency as well as to reduce its
environmental footprint.
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.
The Group monitors its staff turnover levels, diversity and training activities and conducts regular employee
surveys. 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
The Group's employees work in potentially dangerous environments where hazards are ever-present and
must be managed.
The Group engages in extensive safety communication sessions, involving employees and contractors, at all
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 all safety and health programmes. All business units and operations are
required to have safety improvement plans in place.
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 operates a comprehensive training and compliance programme, supported by regular self-
certification and reporting as well as its confidential reporting hotline for all stakeholders, Speakout.
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.
Going concern
The Group's business activities, together with the factors likely to affect its future development, performance
and position, the most significant risks and the Group's related management and mitigating actions are set out
above. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are
described in the condensed 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 continued investment in its operations, 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 EUR745 million of undrawn committed debt facilities as at 30 June 2014 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, 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 overall Group strategy, the most recent forecast for 2014 and subsequent
years, considered the assumptions contained therein and reviewed the critical risks which may impact the
Group's performance. After making such enquiries, the directors are satisfied that the Group remains solvent
and has adequate liquidity in order to meet its obligations and continue in operational existence for the
foreseeable future. Accordingly, the Group continues to adopt the going concern basis in preparing this
report.
Related parties
As set out in the condensed combined and consolidated financial statements for the six months ended
30 June 2014, there have been no significant individual related party transactions during the first six months of
the financial year and there have been no significant changes to the Group's related party relationships as
disclosed in note 36 of the Group's annual financial statements for the year ended 31 December 2013.
Directors' responsibility statement
The directors confirm that to the best of their knowledge:
- the condensed combined and consolidated financial statements have 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 significant events during the six months ended
30 June 2014 and a description of the principal risks and uncertainties for the remaining six months of
the year ending 31 December 2014;
- there have been no significant individual related party transactions during the first six months of the
financial year; and
- there have been no significant changes in the Group's related party relationships.
David Hathorn Andrew King
Director Director
6 August 2014
Independent auditor's review report on interim financial information to
the shareholders of Mondi Limited
We have reviewed the condensed combined and consolidated financial statements of Mondi Limited
contained in the accompanying interim report, which comprise the condensed combined and consolidated
statement of financial position as at 30 June 2014 and the condensed combined and consolidated statement
of comprehensive income, condensed combined and consolidated statement of changes in equity, condensed
combined and consolidated statement of cash flows for the six months then ended, and selected explanatory
notes.
Directors' responsibility for the interim financial statements
The directors are responsible for the preparation and presentation of these interim financial statements in
accordance with International Accounting Standard (IAS) 34,'Interim Financial Reporting', the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued
by the Financial Reporting Standards Council 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. 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'. ISRE 2410 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 ISRE 2410 is a limited assurance engagement.
We perform procedures, primarily consisting of making inquiries of management and others within the entity,
as appropriate, and applying analytical procedures and evaluate the evidence obtained.
The procedures performed in a review are substantially less than and differ in nature from those performed in
an audit conducted in accordance with International Standards on Auditing. Accordingly, we do not express
an audit opinion on these financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
condensed combined and consolidated financial statements of Mondi Limited for the six months ended 30
June 2014 are not prepared, in all material respects, in accordance with IAS 34,'Interim Financial Reporting',
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the
Companies Act of South Africa.
Deloitte & Touche
Registered Auditor
Per: Bronwyn Kilpatrick
Partner
6 August 2014
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 MJ Jarvis Finance M Jordan Strategy S Gwala Managed Services 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 2014, 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 18. 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 2014 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
6 August 2014
Condensed combined and consolidated income statement
for the six months ended 30 June 2014
(Reviewed) (Reviewed) (Audited)
Six months ended 30 June Six months ended 30 June Year ended 31 December
2014 2013 2013
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 3,148 - 3,148 3,342 - 3,342 6,476 - 6,476
Materials, energy and consumables
used (1,654) - (1,654) (1,758) - (1,758) (3,391) - (3,391)
Variable selling expenses (251) - (251) (282) - (282) (523) - (523)
Gross margin 1,243 - 1,243 1,302 - 1,302 2,562 - 2,562
Maintenance and other indirect
expenses (120) - (120) (122) - (122) (278) - (278)
Personnel costs (456) (7) (463) (484) (16) (500) (940) (17) (957)
Other net operating expenses (114) 4 (110) (142) (10) (152) (276) (10) (286)
Depreciation, amortisation and
impairments (176) - (176) (188) (55) (243) (369) (67) (436)
Operating profit/(loss) 377 (3) 374 366 (81) 285 699 (94) 605
Non-operating special items 6 - - - - - - - 7 7
Net profit from associates 1 - 1 1 - 1 2 - 2
Total profit/(loss) from operations
and associates 378 (3) 375 367 (81) 286 701 (87) 614
Net finance costs (50) (13) (63) (57) - (57) (115) - (115)
Investment income 1 - 1 2 - 2 3 - 3
Foreign currency losses (1) - (1) (1) - (1) (1) - (1)
Finance costs (50) (13) (63) (58) - (58) (117) - (117)
Profit/(loss) before tax 328 (16) 312 310 (81) 229 586 (87) 499
Tax (charge)/credit 7 (62) - (62) (56) 13 (43) (98) 13 (85)
Profit/(loss) for the period 266 (16) 250 254 (68) 186 488 (74) 414
Attributable to:
Non-controlling interests 15 15 28
Shareholders 235 171 386
Earnings per share (EPS) for
profit attributable to
shareholders
Basic EPS (EUR cents) 8 48.6 35.3 79.8
Diluted EPS (EUR cents) 8 48.5 35.3 79.6
Basic underlying EPS (EUR cents) 8 51.9 49.4 95.0
Diluted underlying EPS (EUR cents) 8 51.8 49.3 94.8
Basic headline EPS (EUR cents) 8 48.3 45.7 91.3
Diluted headline EPS (EUR cents) 8 48.2 45.6 91.1
Condensed combined and consolidated statement of comprehensive income
for the six months ended 30 June 2014
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 June ended 30 June December
EUR million 2014 2013 2013
Profit for the period 250 186 414
Other comprehensive (expense)/income:
Items that may subsequently be reclassified to the condensed combined and
consolidated income statement:
Effect of cash flow hedges - - (2)
Gains on available-for-sale investments - - 2
Exchange differences on translation of foreign operations (23) (145) (233)
Share of other comprehensive income of associates - (1) (1)
Tax effect thereof - - -
Items that will not subsequently be reclassified to the condensed combined
and consolidated income statement:
Remeasurements on retirement benefits plans (16) 18 21
Asset ceiling movement 2 (1) (2)
Tax effect thereof 3 (4) (6)
Other comprehensive expense for the period, net of tax (34) (133) (221)
Total comprehensive income for the period 216 53 193
Attributable to:
Non-controlling interests 16 9 17
Shareholders 200 44 176
Condensed combined and consolidated statement of financial position
as at 30 June 2014
(Reviewed) (Reviewed) (Audited)
As at 30 June As at 30 June As at 31
EUR million Notes 2014 2013 December 2013
Intangible assets 670 684 675
Property, plant and equipment 3,505 3,446 3,428
Forestry assets 10 233 257 233
Net retirement benefits asset 11 - 2 -
Other non-current assets 37 39 38
Total non-current assets 4,445 4,428 4,374
Inventories 834 767 746
Trade and other receivables 1,058 1,112 954
Cash and cash equivalents 13b 49 84 130
Other current assets 22 27 36
Total current assets 1,963 1,990 1,866
Total assets 6,408 6,418 6,240
Short-term borrowings (458) (265) (181)
Trade and other payables (1,028) (1,008) (989)
Other current liabilities (142) (148) (126)
Total current liabilities (1,628) (1,421) (1,296)
Medium and long-term borrowings 13c (1,343) (1,664) (1,571)
Net retirement benefits liability 11 (226) (225) (211)
Deferred tax liabilities (254) (291) (264)
Other non-current liabilities (52) (53) (52)
Total non-current liabilities (1,875) (2,233) (2,098)
Total liabilities (3,503) (3,654) (3,394)
Net assets 2,905 2,764 2,846
Equity
Share capital and stated capital 542 542 542
Retained earnings and other reserves 2,103 1,963 2,049
Total attributable to shareholders 2,645 2,505 2,591
Non-controlling interests in equity 260 259 255
Total equity 2,905 2,764 2,846
The Group's condensed combined and consolidated financial statements, and related notes 1 to 18, were
approved by the Boards and authorised for issue on 6 August 2014 and were signed on their behalf by:
David Hathorn Andrew King
Director Director
Mondi Limited company registration number: 1967/013038/06
Mondi plc company registered number: 6209386
Condensed combined and consolidated statement of cash flows
for the six months ended 30 June 2014
(Reviewed) (Reviewed) (Audited)
Six months Six months
ended 30 June ended 30 June Year ended 31
EUR million Notes 2014 2013 December 2013
Cash flows from operating activities
Cash generated from operations 13a 439 431 1,036
Dividends from associates - - 1
Income tax paid (49) (75) (126)
Net cash generated from operating activities 390 356 911
Cash flows from investing activities
Investment in property, plant and equipment (249) (164) (405)
Investment in forestry assets (18) (20) (41)
Proceeds from the disposal of tangible and intangible assets 27 21 36
Acquisition of subsidiaries, net of cash and cash equivalents 12 (47) - -
Other investing activities (1) 2 (3)
Net cash used in investing activities (288) (161) (413)
Cash flows from financing activities
Repayment of short-term borrowings 13c (45) (19) (77)
Proceeds from medium and long-term borrowings 13c 95 108 107
Repayment of medium and long-term borrowings 13c - (52) (117)
Interest paid (64) (68) (124)
Dividends paid to shareholders 9 (129) (92) (138)
Purchases of treasury shares (22) (23) (30)
Dividends paid to non-controlling interests 9 (11) (50) (60)
Other financing activities 11 18 28
Net cash used in financing activities (165) (178) (411)
Net (decrease)/increase in cash and cash equivalents (63) 17 87
Cash and cash equivalents at beginning of period 64 (37) (37)
Cash movement in the period 13c (63) 17 87
Effects of changes in foreign exchange rates 13c - 11 14
Cash and cash equivalents at end of period 13b 1 (9) 64
Condensed combined and consolidated statement of changes in equity
for the six months ended 30 June 2014
Equity
attributable to Non-controlling Total
EUR million shareholders interests equity
At 1 January 2013 2,572 301 2,873
Total comprehensive income for the period 44 9 53
Dividends paid (92) (50) (142)
Purchase of treasury shares (23) - (23)
Other 4 (1) 3
At 30 June 2013 2,505 259 2,764
Total comprehensive income for the period 132 8 140
Dividends paid (46) (10) (56)
Purchase of treasury shares (7) - (7)
Other 7 (2) 5
At 31 December 2013 2,591 255 2,846
Total comprehensive income for the period 200 16 216
Dividends paid (129) (11) (140)
Purchase of treasury shares (22) - (22)
Other 5 - 5
At 30 June 2014 2,645 260 2,905
Equity attributable to shareholders (Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 December
EUR million June 2014 June 2013 2013
Combined share capital and stated capital 542 542 542
Retained earnings 2,302 2,044 2,209
Share-based payment reserve 14 13 18
Cumulative translation adjustment reserve (398) (291) (374)
Cash flow hedge reserve (2) - (2)
Post-retirement benefit reserve (68) (56) (57)
Merger reserve 259 259 259
Other sundry reserves (4) (6) (4)
Total 2,645 2,505 2,591
Notes to the condensed combined and consolidated financial statements
for the six months ended 30 June 2014
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
2014 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 2013, 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 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 2013 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 fair valuing of financial instruments and forestry assets.
These financial statements have been prepared under the supervision of the Group chief financial officer,
Andrew King CA (SA).
2 Accounting policies
The same accounting policies, methods of computation and presentation have been followed in the
preparation of the condensed combined and consolidated financial statements for the six months ended
30 June 2014 as were applied in the preparation of the Group's annual financial statements for the year ended
31 December 2013.
3 Seasonality
The seasonality of the Group's operations has no significant impact on the condensed combined and
consolidated financial statements.
4 Operating segments
Six months ended 30 June 2014 (Reviewed)
South Africa Corporate & Intersegment Segments
Europe & International Division other elimination total
Packaging Fibre Consumer Uncoated
EUR million, unless otherwise stated Paper Packaging Packaging Fine Paper
Segment revenue 982 1,003 550 674 284 - (345) 3,148
Internal revenue (272) (15) (2) (8) (48) - 345 -
External revenue 710 988 548 666 236 - - 3,148
EBITDA 209 88 60 133 78 (15) - 553
Depreciation, amortisation and
impairments (47) (35) (26) (48) (20) - - (176)
Underlying operating
profit/(loss) 162 53 34 85 58 (15) - 377
Special items - (7) 4 - - (13) - (16)
Operating segment assets 1,895 1,235 1,004 1,357 728 6 (177) 6,048
Operating net segment assets 1,558 942 870 1,157 608 7 - 5,142
Additions to non-current non-
financial assets 116 32 30 67 29 23 - 297
Capital expenditure cash
payments 115 34 32 59 9 - - 249
Operating margin (%) 16.5 5.3 6.2 12.6 20.4 - - 12.0
Return on capital employed (%) 22.6 11.6 8.5 15.8 20.5 - - 16.0
Six months ended 30 June 2013 (Reviewed)
South Africa Corporate & Intersegment Segments
Europe & International 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
Depreciation, amortisation and
impairments (1) (47) (35) (27) (55) (23) (1) - (188)
Underlying operating
profit/(loss) 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
Note:
(1) Excluding impairments included in special items (see note 6).
Year ended 31 December 2013 (Audited)
South Africa Corporate & Intersegment Segments
Europe & International Division other elimination total
Packaging Fibre Consumer Uncoated
EUR million, unless otherwise stated Paper Packaging Packaging Fine Paper
Segment revenue 2,000 1,967 1,153 1,388 624 - (656) 6,476
Internal revenue (503) (33) (5) (14) (101) - 656 -
External revenue 1,497 1,934 1,148 1,374 523 - - 6,476
EBITDA 394 163 129 277 135 (30) - 1,068
Depreciation, amortisation and
impairments (1) (96) (70) (55) (105) (42) (1) - (369)
Underlying operating
profit/(loss) 298 93 74 172 93 (31) - 699
Special items - (3) (13) (60) (11) - - (87)
Operating segment assets 1,837 1,156 993 1,311 731 2 (140) 5,890
Operating net segment assets 1,484 903 855 1,135 622 1 - 5,000
Additions to non-current non-
financial assets 155 72 60 94 93 - - 474
Capital expenditure cash
payments 139 78 56 80 52 - - 405
Operating margin (%) 14.9 4.7 6.4 12.4 14.9 - - 10.8
Return on capital employed (%) 21.9 10.8 9.1 16.2 16.0 - - 15.3
Note:
(1) Excluding impairments included in special items (see note 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
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 December
EUR million June 2014 June 2013 2013
Products
Fibre packaging products 970 963 1,891
Packaging paper products 716 766 1,482
Uncoated fine paper 611 669 1,284
Consumer packaging products 548 580 1,148
Pulp 114 133 269
Newsprint 75 97 177
Other 114 134 225
Group total 3,148 3,342 6,476
External revenue by location of External revenue by location of
customer production
(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 2014 2013 2013 June 2014 2013 2013
Revenue
Africa
South Africa 192 217 432 284 325 623
Rest of Africa 111 129 231 6 5 11
Africa total 303 346 663 290 330 634
Western Europe
Austria 79 83 161 494 506 958
Germany 505 509 1,003 463 496 993
United Kingdom 118 137 262 18 28 48
Rest of western Europe 690 730 1,390 348 372 720
Western Europe total 1,392 1,459 2,816 1,323 1,402 2,719
Emerging Europe
Poland 242 227 450 440 448 877
Rest of emerging Europe 434 457 893 582 595 1,168
Emerging Europe total 676 684 1,343 1,022 1,043 2,045
Russia 282 314 608 350 389 741
North America 174 181 349 135 143 274
South America 32 29 57 - - -
Asia and Australia 289 329 640 28 35 63
Group total 3,148 3,342 6,476 3,148 3,342 6,476
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
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR million June 2014 2013 2013
Operating profit before special items 377 366 699
Special items (see note 6) (16) (81) (87)
Net profit from associates 1 1 2
Net finance costs (excluding financing special item) (50) (57) (115)
Group profit before tax 312 229 499
Reconciliation of operating segment assets
(Reviewed) (Reviewed) (Audited)
As at 30 June 2014 As at 30 June 2013 As at 31 December 2013
Net Net
Segment Net segment Segment segment Segment segment
EUR million assets assets assets assets assets assets
Segments total 6,048 5,142 6,104 5,168 5,890 5,000
Unallocated:
Acquisition (see note 12)(1) 108 76 - - - -
Investments in associates 6 6 6 6 6 6
Deferred tax assets/(liabilities) 4 (249) 8 (283) 4 (260)
Other non-operating assets/(liabilities) 166 (345) 190 (308) 182 (306)
Group capital employed 6,332 4,630 6,308 4,583 6,082 4,440
Financial asset investments (non-current) 26 26 25 25 27 27
Cash and current financial asset
investments/(net debt) 50 (1,751) 85 (1,844) 131 (1,621)
Total assets/equity 6,408 2,905 6,418 2,764 6,240 2,846
Note:
(1) Acquisition took place on 30 June 2014, and will be incorporated into Packaging Paper and Fibre Packaging business units in future reporting.
5 Write-down of inventories to net realisable value
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR million June 2014 2013 2013
Write-down of inventories to net realisable value (9) (12) (21)
Aggregate reversal of previous write-down of inventories 4 4 12
6 Special items
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR million June 2014 2013 2013
Operating special items
Asset impairments - (55) (67)
Restructuring and closure costs:
Restructuring and closure costs excluding related personnel costs - (10) (10)
Personnel costs relating to restructuring (7) (16) (17)
Reversal of provision for transaction costs attributable to Nordenia acquisition 4 - -
Total operating special items (3) (81) (94)
Non-operating special item
Gain on sale of land - - 7
Total non-operating special item - - 7
Financing special item
Net charge on early redemption of EUR280 million Eurobond (13) - -
Total financing special item (13) - -
Total special items before tax and non-controlling interests (16) (81) (87)
Tax - 13 13
Total special items attributable to shareholders (16) (68) (74)
Operating special items
In May 2014, the Group announced plans to restructure certain operations in the Coatings segment of the
Fibre Packaging business unit. Restructuring costs of EUR7 million were recognised.
A provision of EUR4 million in respect of transaction costs attributable to the Nordenia acquisition was
reversed.
Financing special item
On 10 June 2014, the Group announced the intention to redeem the 9.75% EUR280 million Eurobond
assumed as part of the acquisition of Nordenia in 2012. The net charge on redemption of EUR13 million was
recognised.
7 Tax charge
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR million June 2014 2013 2013
UK corporation tax at 21.5% (2013: 23.25%) - 1 1
SA corporation tax at 28% (2013: 28%) 16 13 21
Overseas tax 56 65 105
Current tax 72 79 127
Deferred tax (10) (23) (29)
Total tax charge before special items 62 56 98
Current tax on special items - (6) (5)
Deferred tax on special items - (7) (8)
Total tax credit on special items - (13) (13)
Total tax charge 62 43 85
The Group's effective rate of tax before special items for the six months ended 30 June 2014, calculated on
profit before tax before special items and including net profit from associates, is 19% (six months ended
30 June 2013: 18%; year ended 31 December 2013: 17%).
8 Earnings per share
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR cents per share June 2014 2013 2013
Profit for the period attributable to shareholders
Basic EPS 48.6 35.3 79.8
Diluted EPS 48.5 35.3 79.6
Underlying earnings for the period
Basic underlying EPS 51.9 49.4 95.0
Diluted underlying EPS 51.8 49.3 94.8
Headline earnings for the period
Basic headline EPS 48.3 45.7 91.3
Diluted headline EPS 48.2 45.6 91.1
The calculation of basic and diluted EPS, basic and diluted underlying EPS and basic and diluted headline
EPS is based on the following data:
Earnings
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR million June 2014 2013 2013
Profit for the period attributable to shareholders 235 171 386
Special items (see note 6) 16 81 87
Related tax (see note 6) - (13) (13)
Underlying earnings for the period 251 239 460
Special items: restructuring and closure costs (7) (26) (27)
Special items: reversal of provision for transaction costs attributable to Nordenia
acquisition 4 - -
Financing special item (13) - -
Profit on disposal of tangible and intangible assets (1) - (2)
Impairments not included in special items - 1 4
Related tax - 7 7
Headline earnings for the period 234 221 442
Weighted average number of shares
(Reviewed) (Reviewed) (Audited)
As at 31
As at 30 June As at 30 June December
million 2014 2013 2013
Basic number of ordinary shares outstanding 484 484 484
Effect of dilutive potential ordinary shares 1 1 1
Diluted number of ordinary shares outstanding 485 485 485
9 Dividends
The interim dividend for the year ending 31 December 2014 of 13.23 euro cents per ordinary share will be
paid on 16 September 2014 to those shareholders on the register of Mondi plc on 22 August 2014. An
equivalent South African rand interim dividend will be paid on 16 September 2014 to shareholders on the
register of Mondi Limited on 22 August 2014. 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 2013.
The interim dividend for the year ending 31 December 2014 will be paid in accordance with the following
timetable:
Mondi Limited Mondi plc
Last date to trade shares cum-dividend
JSE Limited 15 August 2014 15 August 2014
London Stock Exchange Not applicable 19 August 2014
Shares commence trading ex-dividend
JSE Limited 18 August 2014 18 August 2014
London Stock Exchange Not applicable 20 August 2014
Record date
JSE Limited 22 August 2014 22 August 2014
London Stock Exchange Not applicable 22 August 2014
Last date for receipt of Dividend Reinvestment 28 August 2014 28 August 2014
Plan (DRIP) elections by Central Securities
Depository Participants
Last date for DRIP elections to UK Registrar 29 August 2014 22 August 2014*
and South African Transfer Secretaries by
shareholders of Mondi Limited and Mondi plc
Payment Date
South African Register 16 September 2014 16 September 2014
UK Register Not applicable 16 September 2014
DRIP purchase settlement dates 25 September 2014 19 September 2014**
Currency conversion dates
ZAR/euro 7 August 2014 7 August 2014
Euro/sterling Not applicable 29 August 2014
* 29 August 2014 for Mondi plc South African branch register shareholders
** 25 September 2014 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 18 August 2014 and 24 August 2014, both dates inclusive, nor may transfers between
the UK and South African registers of Mondi plc take place between 13 August 2014 and 24 August 2014,
both dates inclusive.
Information relating to the dividend tax to be withheld from Mondi Limited shareholders and Mondi plc
shareholders on the South African branch register will be announced separately, together with the ZAR/euro
exchange rate to be applied, on or shortly after 7 August 2014.
10 Forestry assets
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR million June 2014 2013 2013
At 1 January 233 311 311
Capitalised expenditure 17 19 39
Acquisition of assets 1 1 2
Fair value gains 20 10 17
Disposal of assets (13) (9) (9)
Felling costs (27) (30) (55)
Currency movements 2 (45) (72)
Closing balance 233 257 233
The fair value of forestry assets is a level 3 measure in terms of the fair value measurement hierarchy (see
note 17) and this category is consistent with prior periods. The fair value of forestry assets is calculated on
the basis of future expected net cash flows arising on the Group's owned forestry assets, 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.
11 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 2014. The
net retirement benefit obligation increased by EUR15 million mainly due to changes in assumptions. The
assets backing the defined benefit scheme liabilities reflect their market values as at 30 June 2014. Any
movements in the assumptions have been recognised as a remeasurement in the condensed combined and
consolidated statement of comprehensive income.
12 Business combinations
Acquisition of bags and kraft paper business of Graphic Packaging International Inc
On 30 June 2014, Mondi acquired the bags and kraft paper business of Graphic Packaging International Inc, a
wholly-owned subsidiary of Graphic Packaging Holding Company, for a total consideration of USD105 million
(EUR76 million) on a debt and cash-free basis. The production base comprises an integrated kraft paper mill,
with production capacity of 135,000 tonnes per annum, and nine bags plants. The combination of the
business with Mondi's existing network will create a leading bags player in North America and expand the
Group's growing global footprint in this market.
The business' revenue for the six months ended 30 June 2014 was EUR178 million with a loss after tax of
EUR6 million.
Details of the net assets acquired, as adjusted from book to fair value, are as follows:
EUR million Book value Revaluation Fair value
Net assets acquired:
Intangible assets 62 (60) 2
Property, plant and equipment 76 (55) 21
Inventories 60 1 61
Trade and other receivables 24 - 24
Total assets 222 (114) 108
Trade and other payables (28) - (28)
Net retirement benefits liability (3) - (3)
Deferred tax liabilities - (1) (1)
Total liabilities (excluding debt) (31) (1) (32)
Short-term borrowings (30) - (30)
Net assets acquired 161 (115) 46
Transaction costs expensed 1
Net cash paid per condensed combined and consolidated statement of cash
flows 47
The fair value accounting is provisional in nature. The nature of this business is such that further adjustments
to the carrying values of acquired assets and/or liabilities are possible as the detail of the acquired business is
evaluated post acquisition. If necessary, any adjustments will be made within 12 months of the acquisition
date.
In respect of trade and other receivables, the gross contractual amounts receivable and the best estimate at
the acquisition date of the contractual cash flows not expected to be collected approximate the book value and
the revaluation amount respectively as presented.
There were no major acquisitions made during the year ended 31 December 2013.
13 Consolidated cash flow analysis
(a) Reconciliation of profit before tax to cash generated from operations
(Reviewed) (Reviewed) (Audited)
Six months Six months Year ended 31
ended 30 ended 30 June December
EUR million June 2014 2013 2013
Profit before tax 312 229 499
Depreciation and amortisation 176 187 365
Impairment of tangible and intangible assets (not included in special items) - 1 4
Share-based payments 5 5 11
Non-cash effect of special items 6 71 60
Net finance costs (excluding financing special item) 50 57 115
Net profit from associates (1) (1) (2)
Decrease in provisions and net retirement benefits (9) (12) (25)
Increase in inventories (30) (9) (7)
Increase in operating receivables (82) (138) (14)
Increase/(decrease) in operating payables 6 18 (6)
Fair value gains on forestry assets (20) (10) (17)
Felling costs 27 30 55
Profit on disposal of tangible and intangible assets (1) - (2)
Other adjustments - 3 -
Cash generated from operations 439 431 1,036
(b) Cash and cash equivalents
(Reviewed) (Reviewed) (Audited)
As at 31
As at 30 June As at 30 June December
EUR million 2014 2013 2013
Cash and cash equivalents per condensed combined and consolidated statement of
financial position 49 84 130
Bank overdrafts included in short-term borrowings (48) (93) (66)
Cash and cash equivalents per condensed combined and consolidated
statement of cash flows 1 (9) 64
(c) Movement in net debt
The Group's net debt position 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 1 January 2013 (Audited) (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 (Reviewed) (9) (172) (1,664) 1 (1,844)
Cash flow 70 58 66 - 194
Movement in unamortised loan costs - - 11 - 11
Reclassification - (14) 14 - -
Currency movements 3 13 2 - 18
At 31 December 2013 (Audited) 64 (115) (1,571) 1 (1,621)
Cash flow (63) 45 (95) - (113)
Movement in unamortised loan costs - - 13 - 13
Acquisition of business - (30) - - (30)
Reclassification - (306) 306 - -
Currency movements - (4) 4 - -
At 30 June 2014 (Reviewed) 1 (410) (1,343) 1 (1,751)
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 2014 2013 2013
Expiry date
In one year or less 88 56 42
In more than one year 657 687 750
Total credit available 745 743 792
Redemption of EUR280 million Eurobond
On 10 June 2014, the Group announced the intention to redeem the EUR280 million Eurobond on 15 July
2014. The bond, including the related purchase premium and bond transaction costs were reclassified from
long-term debt to short-term debt on date of announcement.
14 Capital commitments
(Reviewed) (Reviewed) (Audited)
As at 31
As at 30 June As at 30 June December
EUR million 2014 2013 2013
Contracted for but not provided 426 271 366
Approved, not yet contracted for 304 361 625
These capital commitments relate to the following categories of non-current non-financial assets:
(Reviewed) (Reviewed) (Audited)
As at 31
As at 30 June As at 30 June December
EUR million 2014 2013 2013
Intangible assets 4 6 4
Property, plant and equipment 726 626 987
Total capital commitments 730 632 991
The expected maturity of these capital commitments is:
(Reviewed) (Reviewed) (Audited)
As at 31
As at 30 June As at 30 June December
EUR million 2014 2013 2013
Within one year 549 438 544
One to two years 121 146 392
Two to five years 60 48 55
Total capital commitments 730 632 991
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 from existing cash resources and borrowing facilities.
15 Contingent liabilities and contingent assets
Contingent liabilities comprise aggregate amounts as at 30 June 2014 of EUR26 million (as at 30 June 2013:
EUR14 million; as at 31 December 2013: EUR25 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.
16 Related party transactions
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, and in
total, are not considered to be significant. Transactions between Mondi Limited, Mondi plc and their
respective subsidiaries, which are related parties, have been eliminated on consolidation.
There have been no significant changes to the related parties as disclosed in note 36 of the Group's annual
financial statements for the year ended 31 December 2013.
17 Fair value disclosures
Financial instruments that are measured in the condensed combined and consolidated statement of financial
position at fair value or where the fair value of financial instruments have been disclosed in notes to the
condensed combined and consolidated financial statements 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 value all of the Group's financial instruments are either quoted prices or are
observable. The Group only holds level 1 and 2 financial instruments and therefore does not hold any financial
instruments categorised as level 3 financial instruments. There have also been no transfers of assets or
liabilities between levels of the fair value hierarchy during the six months ended 30 June 2014.
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 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.
The only assets or liabilities measured at fair value on level 3 of the fair value measurement hierarchy are the
Group's forestry assets as set out in note 10.
Except as detailed below, the directors consider that the carrying values 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
(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 2014 2013 2013 2014 2013 2013
Financial liabilities
Borrowings 1,801 1,929 1,752 1,920 2,013 1,836
18 Events occurring after 30 June 2014
With the exception of the interim dividend of 13.23 euro cents per share, as set out in note 9, there have been
no material reportable events since 30 June 2014.
Production statistics
Six months Six months Year ended 31
ended 30 ended 30 June December
June 2014 2013 2013
Europe & International
Containerboard Tonnes 1,075,226 1,077,702 2,138,714
Kraft paper Tonnes 531,040 515,822 1,010,885
Softwood pulp Tonnes 1,025,692 1,014,483 2,007,959
Internal consumption Tonnes 950,545 942,445 1,859,597
External Tonnes 75,147 72,038 148,362
Corrugated board and boxes Mm2 672 678 1,344
Industrial bags M units 2,115 2,017 3,997
Coating and release liners Mm2 1,692 1,718 3,348
Consumer packaging Tonnes 141,467 146,763 283,161
Uncoated fine paper Tonnes 684,678 708,880 1,381,141
Newsprint Tonnes 104,574 103,620 207,228
Hardwood pulp Tonnes 567,432 547,819 1,087,615
Internal consumption Tonnes 529,482 513,366 1,013,790
External Tonnes 37,950 34,453 73,825
South Africa Division
Containerboard Tonnes 124,157 132,077 254,714
Uncoated fine paper Tonnes 126,907 131,741 258,751
Hardwood pulp Tonnes 311,914 326,981 645,611
Internal consumption Tonnes 164,112 169,935 331,928
External Tonnes 147,802 157,046 313,683
Softwood pulp – internal consumption Tonnes 75,675 102,987 166,101
Newsprint Tonnes 58,859 87,088 145,498
Exchange rates
Six months Six months Year ended 31
ended 30 ended 30 June December
June 2014 2013 2013
Closing rates against the euro
South African rand 14.46 13.07 14.57
Czech koruna 27.45 25.95 27.43
Polish zloty 4.16 4.34 4.15
Pounds sterling 0.80 0.86 0.83
Russian rouble 46.38 42.84 45.32
Turkish lira 2.90 2.52 2.96
US dollar 1.37 1.31 1.38
Average rates for the period against the euro
South African rand 14.67 12.10 12.83
Czech koruna 27.44 25.70 25.99
Polish zloty 4.18 4.18 4.20
Pounds sterling 0.82 0.85 0.85
Russian rouble 48.01 40.73 42.32
Turkish lira 2.97 2.38 2.53
US dollar 1.37 1.31 1.33
Sponsor in South Africa: UBS South Africa (Pty) Ltd
Date: 07/08/2014 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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