To view the PDF file, sign up for a MySharenet subscription.

MONDI LIMITED - Full year results for the year ended 31 December 2016

Release Date: 23/02/2017 09:00
Code(s): MND MNP     PDF:  
Wrap Text
Full year results for the year ended 31 December 2016

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)
LEI: 213800LOZA69QFDC9N34
JSE share code: MNP      ISIN: GB00B1CRLC47
LSE share code: MNDI

23 February 2017

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 Guidance and Transparency and Listing Rules of the United Kingdom Listing Authority.

To comply with the requirements in Articles 7 and 9 of the regulatory technical standards of the Transparency Directive
(2004/109/EC), this announcement is classified as additional regulated information required to be disclosed under the laws of a
Member State.

Full year results for the year ended 31 December 2016
Highlights
-    Strong financial performance
         -    Underlying operating profit of EUR981 million, up 3%
         -    Underlying earnings of 137.8 euro cents per share, up 3%
         -    Cash generated from operations of EUR1,401 million, up 10%
         -    Return on capital employed of 20.3%
-    Capital projects delivering growth
         -    Completed major projects contributed incremental EUR50 million to underlying operating profit in 2016
         -    Strong expansionary capital investment pipeline: over EUR800 million in major projects approved and in progress
-    Four acquisitions totalling EUR185 million, expanding our packaging interests
-    Implemented Growing Responsibly model, defining our sustainability commitments to 2020
-    Recommended full year dividend of 57.0 euro cents per share, up 10%

Financial Summary
                                                                                                      Six months   Six months
                                                             Year ended      Year ended                   ended         ended 
                                                            31 December     31 December     Change   31 December  31 December    Change
EUR million, except for percentages and per share measures         2016            2015          %          2016         2015         %
Group revenue                                                     6,662           6,819        (2)         3,350        3,360         —
Underlying EBITDA(1)                                              1,366           1,325          3           652          654         —
Underlying operating profit(1)                                      981             957          3           452          467       (3)
Operating profit                                                    943             900          5           414          449       (8)
Profit before tax                                                   843             796          6           361          404      (11)
Per share measures
Basic underlying earnings per share(1) (euro cents)               137.8           133.7          3
Basic earnings per share (euro cents)                             131.8           124.0          6
Total dividend per share (euro cents)                              57.0            52.0         10
Cash generated from operations                                    1,401           1,279         10
Net debt                                                          1,383           1,498
Group return on capital employed (ROCE)(2)                        20.3%           20.5%
Notes:

(1) The Group presents underlying EBITDA, operating profit and related per share information as measures which exclude special items in 
    order to provide a more effective comparison of the underlying financial performance of the Group between financial reporting periods. 
    A reconciliation of underlying operating profit to profit before tax is provided in note 3 of the condensed financial statements.
(2) ROCE is underlying operating profit expressed as a percentage of the average capital employed for the year, adjusted for impairments 
    and spend on strategic projects which are not yet in operation.

David Hathorn, Mondi Group chief executive, said:
"I am pleased to announce another strong performance, building on our track record of steadily improving profitability
over the last five years. Underlying operating profit was up 3% to EUR981 million and our return on capital 
employed was 20.3%.

We saw good contributions from all our businesses despite pricing headwinds in a number of key paper grades.
We made considerable progress in driving growth through our capital investment programme, delivering incremental
operating profit of around EUR50 million in 2016 from recently completed capital projects, with a further EUR30 million
anticipated in 2017. In addition to our significant pipeline of projects already in progress, the Boards have approved the
replacement of the recovery boiler at our Stetí mill in the Czech Republic and installation of a 90,000 tonne per annum
machine glazed speciality kraft paper machine for a total investment of EUR470 million.

We completed four acquisitions totalling EUR185 million in 2016, enhancing our product offering and geographic reach in
our Corrugated and Consumer Packaging businesses.

Our outlook for the business is positive. We have implemented or announced price increases in containerboard, sack kraft 
and uncoated fine paper grades, supported by good demand. We expect some inflationary cost pressures across the 
Group and a lower forestry fair value gain. Furthermore, we anticipate a more challenging trading environment in certain 
uncoated fine paper markets following price erosion in Europe over the course of 2016, combined with emerging market currency 
volatility. However, we expect to continue to benefit from contributions from our recently completed capital projects 
and acquisitions, together with steady organic growth in our downstream converting businesses.

Our consistent and focused strategy, robust business model and firm focus on operational excellence all continue to
contribute to our performance. We remain confident of continuing to deliver industry-leading returns."

Group performance review
Our strong performance in 2016 builds on our track record of continuous improvement in profitability over the last five years. Our
consistent and focused strategy, robust business model and firm focus on operational excellence all continued to contribute 
to our performance.

Group revenue of EUR6,662 million was down 2% on the prior year. Excluding the impact of currency movements, revenue was in line
with the prior year. Good volume growth in Packaging Paper and Consumer Packaging and higher domestic selling prices in South
Africa and Russia were offset by lower average selling prices in Packaging Paper and Fibre Packaging.

Underlying operating profit of EUR981 million was up 3% on the prior year. Packaging Paper was negatively impacted by lower selling
prices across most key grades and lower green energy prices, partially offset by like-for-like sales volume growth. Fibre Packaging
continued its positive development, with volume growth in Corrugated Packaging and a good performance from the core European
industrial bags business, partly offset by negative currency translation effects and ongoing challenges in the US industrial bags
business. We continue to make good progress in Consumer Packaging with strong volume growth and improving margins. In
Uncoated Fine Paper, Russian domestic price increases and a strong focus on productivity and efficiency more than offset
negative currency effects from the weaker rouble and flat average European pricing. Our South Africa Division was negatively
affected by sharply lower average export pulp selling prices and higher input costs which were only partially offset by positive
currency effects and a higher fair value gain on forestry assets. After taking the impact of special items of EUR38 million into
consideration, operating profit of EUR943 million was up 5% (2015 : EUR900 million).

Our passion for performance is central to the way we run our business and is demonstrated through a continuous focus on quality,
productivity and efficiency. We invest in our existing operations and, where appropriate, in strategic acquisitions to strengthen our
cost advantages, generate synergies through integration and enhance our product and service offering and/or geographic reach to
better serve our customers. In 2016 our recently completed capital investments contributed around EUR50 million in incremental
operating profit. We completed four acquisitions during the year: two corrugated packaging acquisitions, SIMET in Poland and
Lebedyan in Russia; and two in Consumer Packaging, Kalenobel in Turkey and Uralplastic in Russia. In February 2017, we
announced the acquisition of Excelsior Technologies Limited in the UK, further supporting the development of Consumer Packaging.

The impact of maintenance shuts on underlying operating profit in 2016 was around EUR75 million (2015: EUR90 million), slightly above
expectation due to a longer than anticipated shut at our Richards Bay mill (South Africa). Based on prevailing market prices, we
estimate that the impact of planned maintenance shuts on underlying operating profit in 2017 will be around EUR80 million.

Input costs were generally lower across our European businesses. Wood costs were lower than the prior year with a stable supply
and demand balance. Average benchmark costs for paper for recycling were up around 11% on 2015 as prices increased in the
second half of the year on strong export demand and increased European consumption. Energy costs were lower than the prior
year due to lower average crude oil and gas prices. Looking forward, rising commodity input costs are expected to put some
upward pressure on energy costs. Following the significant volatility in polyethylene prices in 2015, pricing was more stable during
the year, but on average at similar levels to the prior year. In our South Africa Division, inflationary pressures and higher imported
costs resulted in an increase in input costs.

Volatility in foreign exchange rates had a net negative impact on underlying operating profit of EUR31 million. The weakening of a
number of emerging market currencies, particularly the Russian rouble, Turkish lira, Polish zloty and Mexican peso, had a negative
impact on translation of the profits of our Fibre Packaging and domestically focused Russian uncoated fine paper operations, while
our South Africa Division benefited from the weakening of the rand due to its significant export position.

Our cash generation remained strong with cash generated from operations of EUR1,401 million up 10% on the prior year. Net debt
reduced by EUR115 million to EUR1,383 million, or 1.0 times EBITDA.

Underlying earnings of 137.8 euro cents per share were up 3% compared to 2015. After taking the effect of special items into
account, basic earnings of 131.8 euro cents per share were up 6% compared to 2015.

Our Boards have recommended payment of a final dividend of 38.19 euro cents per share, bringing the total dividend for the year
to 57.0 euro cents per share, an increase of 10% on 2015.

Packaging Paper (Europe & International Division)

                                                                                  Six months   Six months
                                       Year ended      Year ended                      ended        ended 
                                      31 December     31 December      Change    31 December  31 December    Change
EUR million                                  2016            2015           %           2016         2015         %
Segment revenue                             2,056           2,156         (5)          1,011        1,034       (2)
Underlying EBITDA                             483             505         (4)            232          239       (3)
Underlying operating profit                   361             391         (8)            169          180       (6)
Underlying operating profit margin          17.6%           18.1%                      16.7%        17.4%
Special items                                   —            (14)                          —            —
Capital expenditure                           156             259                         86          155
Net segment assets                          1,760           1,753
ROCE                                        22.4%           25.5%

Profitability in Packaging Paper, down 8% on the prior year, was impacted by lower average selling prices across most key grades,
lower green energy prices and the loss of contribution from the Raubling mill sold during 2015, partially offset by the benefits of
completed capital investment projects. However, the business unit delivered a strong ROCE performance of 22.4%.

On a like-for-like basis, excluding the impact of the sale of the Raubling mill, sales volumes were marginally up across all
containerboard grades.

As anticipated, we saw some price erosion in the kraftliner grades in the first half of the year. While demand growth remained solid,
the market came under some pressure from increased supply from new capacity in Europe and competition from importers
benefiting from weak emerging market currencies. Average European benchmark selling prices for unbleached kraftliner were
down 5% on the prior year and white-top kraftliner prices were down around 2%. Supported by sustained good demand and a
strong order position, a price increase of EUR20 per tonne was implemented for unbleached kraftliner in August across all European
markets excluding southern Europe, partly offsetting the price erosion seen over the course of the first half of the year. In Russia,
price increases for white-top kraftliner were implemented at the beginning of 2016 and remained stable throughout the year.

In response to strong demand, price increases of EUR50 per tonne were recently implemented on all unbleached kraftliner grades in
Europe, effective from March 2017. A price increase of EUR50 per tonne has also been announced for white-top kraftliner to take
effect from the beginning of the second quarter of 2017. In Russia, prices for white-top kraftliner were increased from the 
beginning of 2017.

Average European benchmark selling prices for recycled containerboard were down 3% on the prior year period. Price increases
of EUR40 per tonne were achieved from February 2017 and a further increase of EUR40 per tonne has been announced to take effect
from the beginning of the second quarter of 2017.

Sales volumes for sack kraft paper increased compared to the prior year, benefiting from good demand, fewer planned
maintenance shuts and productivity improvements. Average selling prices for sack kraft paper produced in Europe declined by 5-
6% in the early part of 2016 and remained at those levels through the balance of the year. Given strong demand, selling prices
were increased by 3-4% from the beginning of 2017 in all markets.

We saw good demand across our range of speciality kraft papers, although sales volumes of certain grades were impacted by the
closure of high cost production capacity in 2015. Selling prices were, on average, marginally lower than in the prior year.

We have completed a number of investments across our mills in recent years and our focus in 2016 was on fully realising the
benefits of these investments. These benefits include a reduction in energy costs at our Swiecie mill (Poland) following the
completion in 2015 of the new recovery boiler, and improved productivity following the completion of a number of smaller
investments across our production base.

Input costs were at a similar level to the prior year with the business benefiting from cost savings initiatives and generally lower raw
material and energy costs which offset higher paper for recycling costs and other inflationary increases. Green energy prices were
significantly lower in Poland due to legislative changes, resulting in a EUR20 million reduction in income from green energy credits
compared to the prior year, including the impact of a write-down of EUR6 million in the carrying value of the inventory of green energy
credits held at year end.

Planned maintenance shuts at our Syktyvkar (Russia) and Swiecie (Poland) mills were completed during the first half of the year,
and a further planned maintenance shut at Swiecie and the majority of our kraft paper mill shuts were completed in the second half
of the year. A similar planned maintenance schedule is anticipated in 2017 although the shuts at our Swiecie and Stetí mills will be
extended as we progress our major capital investments in those operations.

Fibre Packaging (Europe & International Division)
                                                                                  Six months   Six months
                                       Year ended       Year ended                     ended        ended
                                      31 December      31 December      Change   31 December  31 December    Change
EUR million                                  2016             2015           %          2016         2015         %
Segment revenue                             1,929            2,031         (5)           961          985       (2)
Underlying EBITDA                             194              187           4           100           86        16
Underlying operating profit                   123              120           3            64           52        23
Underlying operating profit margin           6.4%             5.9%                      6.7%         5.3%
Special items                                (13)             (21)                      (13)         (11)
Capital expenditure                           107              118                        57           60
Net segment assets                          1,006              935
ROCE                                        13.5%            13.9%

In Fibre Packaging our underlying operating profit increased 3% to EUR123 million and ROCE was 13.5%, with volume growth in
Corrugated Packaging and a good performance from the core European industrial bags business partly offset by negative currency
translation effects and ongoing challenges in the US and CIS industrial bags businesses.

Corrugated Packaging achieved good organic volume growth, particularly in the Czech Republic and Germany, supplemented by
two acquisitions to expand our corrugated network. Mondi SIMET S.A. (Poland) complements our existing geographic footprint,
allows for logistics optimisation and provides increased production capacity in the growing Polish market. We started building work
for the conversion of this plant to a high-efficiency, heavy-duty box plant early in 2017. Mondi Lebedyan (Russia) provides us with
excellent opportunities in the local agricultural market and increases our ability to serve our multinational customers. Sales
volumes were negatively impacted in Turkey, due to ongoing political turbulence in the region, and Poland, where sales growth
was tempered by the Russian embargo preventing the export of fresh fruit and vegetables to that market. Profitability was also
negatively affected by the weaker Turkish lira and Polish zloty. Over the last two years, we have invested significantly in all our
corrugated operations, helping us to better serve our customers and meet their more sophisticated product needs. The business
benefited from lower paper input costs and productivity gains.

In Industrial Bags, while European markets remained robust, the business was negatively impacted by challenging market
conditions in the US and CIS. Overall, sales volumes declined 1% with good growth in Europe and the Middle East offset by
declines in the US and CIS. The breadth and geographic reach of our Industrial Bags network gives us the unique ability to fully
optimise our production network to better serve our customers. In 2016, we closed our facility at Sendenhorst (Germany), while
continuing to serve our customers from other sites and, in December 2016, announced the closure of our facility in southern
Belgium. We have also significantly increased the level of exports from our Mexican operations into the US, and started production
at our new operation in Cote d'Ivoire. Lower sales volumes were partly compensated by significant cost savings resulting from a
strong focus on cost management and the benefits of the restructuring and rationalisation activities. The weaker Mexican peso had
a negative impact on the translation of profits from our Mexican operations.

Consumer Packaging (Europe & International Division)
                                                                                              Six months   Six months
                                                   Year ended       Year ended                     ended        ended 
                                                  31 December      31 December      Change   31 December  31 December    Change
EUR million                                              2016             2015           %          2016         2015         %
Segment revenue                                         1,562            1,469           6           797          739         8
Underlying EBITDA                                         198              177          12            98           94         4
Underlying operating profit                               121              108          12            57           59       (3)
Underlying operating profit margin                       7.7%             7.4%                      7.2%         8.0%
Special items                                            (19)             (22)                      (19)          (7)
Capital expenditure                                        91               92                        49           42
Net segment assets                                      1,270            1,146
ROCE                                                    10.5%            10.7%

Consumer Packaging made good progress with strong volume growth and improving margins. Underlying operating profit
increased 12% to EUR121 million with a ROCE of 10.5%.

Good progress was made in our ongoing initiatives to improve the product mix. Strong volume growth was achieved in our higher
value-added segments of personal care components, consumer laminates, technical films, and release liners. The favourable
product mix and focus on value-added segments resulted in an improvement in our gross margin. On a like-for-like basis,
excluding the impact of acquisitions and disposals, sales volumes grew around 4%. We remain well positioned for further growth.

The integration of the businesses acquired during 2015 is progressing well and we are realising the synergies from these
acquisitions. Two further acquisitions were completed in 2016, growing our product offering and geographic reach. Mondi
Kalenobel (Turkey) produces flexible consumer packaging for ice cream and other applications, as well as aseptic cartons, and
serves both international FMCG companies and regional food and beverage producers. The company exports approximately half
of its production - mainly to Western Europe, the Middle East, and North Africa. Mondi Uralplastic (Russia) manufactures a range
of consumer flexible packaging products for food, personal care, homecare, and other applications for both local and international
customers. A small net charge to underlying operating profit was incurred from these acquisitions in the second half of the year due
to the effects of acquisition accounting and transaction costs.

In February 2017, we announced the acquisition of Excelsior Technologies Limited in the UK, further supporting the development
of Consumer Packaging in high growth product applications. Excelsior is a vertically-integrated producer of innovative flexible
packaging solutions, mainly for food applications, with a unique packaging technology for microwave steam cooking,
complementing and enhancing our global food packaging offering.

We completed the closure of operations in Italy and Spain, announced in 2015, while retaining the ability to continue to serve
customers from our sites in central and eastern Europe. During 2016, we further debottlenecked some of our plants and
reallocated production between our sites to allow for site specialisation, optimised production activities, cost savings, productivity
improvements, and reduced waste. In the US, we announced the restructuring of our release liner operations, including the closure
of one site. We appointed a chief innovation officer and reorganised our research and development activities to further strengthen
our capabilities in this area. Fixed costs were higher, in line with our increased focus on innovation and customer service, partially
offset by one-off gains in the first half of the year.

Uncoated Fine Paper (Europe & International Division)
                                                                               Six months   Six months
                                       Year ended      Year ended                   ended        ended
                                      31 December     31 December   Change    31 December  31 December    Change
EUR million                                  2016            2015        %           2016         2015         %
Segment revenue                             1,246           1,233        1            621          607         2
Underlying EBITDA                             343             291       18            171          139        23
Underlying operating profit                   264             212       25            131           99        32
Underlying operating profit margin          21.2%           17.2%                   21.1%        16.3%
Capital expenditure                            53              65                      26           33
Net segment assets                            851             821
ROCE                                        36.0%           25.6%

Our Uncoated Fine Paper business delivered an exceptional performance, generating underlying operating profit of EUR264 million,
up 25% on the prior year, with a ROCE of 36%. Domestic price increases in the CIS markets and a strong focus on productivity
and efficiency more than offset negative currency effects from the weaker rouble and flat European pricing.

Uncoated fine paper sales volumes increased 1% over the prior year, reflecting a strong performance in an overall declining
market. European market demand is estimated to have contracted in 2016 by 3-4%, following stable demand in 2015, bringing the
average demand contraction over the past two years to 1-2% per year, in line with the longer-term trend. Demand in the CIS
remained stable.

Benchmark average selling prices in Europe were similar to the prior year, but 2% down in the second half of the year compared to
the first half. Selling price increases were implemented at the beginning of the year but came under pressure early in the second
half due to weak European demand and pressure from imports offsetting the benefits of industry capacity rationalisation in the prior
year. Demand improved towards the end of year and a price increase of 5-7% has been announced across all uncoated fine paper
grades in Europe from February 2017.

Selling prices were increased in Russia at the beginning of 2016, offsetting the effects of domestic cost inflation. Prices remain
stable going into 2017.

The business benefited from generally lower input costs, particularly energy costs. In Russia, wood costs were lower in rouble
terms, while in Europe wood costs increased marginally. Our commercial excellence programmes, focused on purchased material,
operating efficiencies and productivity improvements, contributed to good cost control, offsetting inflationary cost pressures, most
notably in Russia. Hardwood pulp prices were 11% lower in euro terms providing a benefit to our semi-integrated Neusiedler
(Austria) operations.

Planned maintenance shuts were completed at Syktyvkar in the first half of the year, at Ruzomberok in both the first and second
half, and at Neusiedler in the second half of the year. In 2017, our Syktyvkar shut is planned for the first half of the year and our
Ruzomberok and Neusiedler mill shuts are scheduled for the second half.

South Africa Division
                                                                                            Six months   Six months
                                                   Year ended      Year ended                    ended        ended 
                                                  31 December     31 December     Change   31 December  31 December    Change
EUR million                                              2016            2015          %          2016         2015         %
Segment revenue                                           594             652        (9)           304          338      (10)
Underlying EBITDA                                         182             199        (9)            68          110      (38)
Underlying operating profit                               147             161        (9)            49           92      (47)
Underlying operating profit margin                      24.7%           24.7%                    16.1%        27.2%
Special items                                             (6)               —                      (6)            —
Capital expenditure                                        58              61                       33           29
Net segment assets                                        731             563
ROCE                                                    27.8%           30.1%

Our South Africa Division was negatively affected by sharply lower average pulp export selling prices and higher input costs which
were only partially offset by positive currency effects, a higher fair value gain on forestry assets and domestic price increases.
Underlying operating profit of EUR147 million was down 9% on a very strong performance in the prior year and ROCE was 27.8%.

Strong domestic demand for uncoated fine paper and white-top kraftliner was met by reducing exports of these products and
increasing the amount of pulp converted to these paper grades. Domestic demand for pulp decreased, compensated by a higher
level of exports. Overall, sales volumes were marginally lower than in the prior year.

Domestic selling prices were higher across all our grades. Export prices for white-top kraftliner were broadly in line with the prior
year and average benchmark US dollar pulp prices were around 11% lower than the previous year. Lower export prices were
partially compensated by the weaker rand.

Forestry gains are dependent on a variety of factors over which we have limited control. In 2016, selling prices of timber increased
significantly and a fair value gain of EUR64 million (2015: EUR40 million) was recognised, of which EUR48 million was recognised in the first
half of the year. The increase in the fair value gain was offset by the consequent impact of higher felling costs.

Inflationary price increases in labour and electricity, higher wood costs mainly due to the forestry revaluation, and the impact of the
weaker South African rand on imported materials put pressure on input costs. These impacts were partially mitigated by our focus
on cost optimisation, driving efficiencies and reducing waste.

An extended planned maintenance shut at Richards Bay, which included the tie-in of our recent capital investments, took place
during the second half of 2016 and a much shorter shut is planned for the second half of 2017.

Special items
Special items are those items of financial performance that we believe should be separately disclosed to assist in the
understanding of our underlying financial performance. Special items are considered to be material either in nature or in amount.

The net special item charge of EUR38 million before tax comprised the following:

-    Restructuring and closure costs of EUR17 million and related impairments of EUR15 million for the closure of an Industrial Bags
     (Fibre Packaging) plant in southern Belgium and restructuring of our US release liner business (Consumer Packaging),
     including the closure of one operation.
-    In our South Africa Division, we took the decision to restart our second uncoated fine paper machine to meet domestic
     demand for reels and, at the same time, reduce our production of newsprint in response to declining demand. This gave
     rise to a further impairment of the newsprint assets of EUR7 million, the reversal of impairment of the uncoated fine paper
     assets of EUR2 million, and restructuring costs of EUR1 million.

Further detail is provided in note 4 of our condensed combined and consolidated financial statements.

Tax
Based on our geographic profit mix and the applicable tax rates, we would expect our tax rate to be around 22%. However, we
benefited from tax incentives related to our capital investments in Slovakia, Poland and Russia. In addition, we recognised
deferred tax assets related to previously unrecognised tax losses which we now expect to be able to utilise in the coming years. As
such, our underlying tax charge for 2016 of EUR166 million (2015: EUR161 million) reflects an effective tax rate of 19%, consistent with
2015. Tax relief on special items amounted to EUR9 million (2015: EUR10 million).

Tax paid in 2016 of EUR173 million (2015: EUR160 million) is higher than the 2016 tax charge as a result of the timing of final tax
payments for 2015 and earlier financial years.

Going forward, assuming a similar profit mix, we would anticipate marginal upward pressure on the tax rate over the next three
years as it moves towards the expected tax rate of 22%.

Cash flow
Our cash generation remained strong. In 2016, the cash generated from our operations was EUR1,401 million, up 10%. On average
over the last five years, cash generated from operations has increased by 10.5% per year.

Working capital as a percentage of revenue was 12%, marginally up on the prior year (11.6%). The net cash inflow from
movements in working capital during the year was EUR68 million (2015: inflow of EUR9 million).

We paid dividends of EUR274 million to shareholders (2015: EUR209 million). Interest paid of EUR82 million (2015: EUR93 million) was lower
than the prior year, mainly due to the lower average net debt and composition of our borrowings.

In 2016, we invested EUR465 million (2015: EUR595 million) in capital expenditure and completed four acquisitions with a total purchase
price, on a debt and cash free basis, of EUR185 million.

Capital investments
Investing in our high-quality, low-cost assets to maintain and enhance our competitive advantage is of particular importance in our
pulp and paper assets where products are generally more commoditised and low-cost production is key. Our focus is on enhancing
our cost competitiveness, improving energy efficiency, meeting the needs of our customers and delivering organic growth in our
packaging businesses.

Our disciplined approach to investigating, approving and executing capital projects is one of our key strengths and plays an
important role in successfully delivering the returns we require. Over the last three years, our major capital projects have
contributed around EUR150 million of incremental operating profit, including EUR50 million in 2016, and we expect to generate a further
EUR30 million in 2017.

We are in the process of commissioning the second phase of our project at Swiecie (Poland), which will provide an additional
100,000 tonnes per annum of softwood pulp and 80,000 tonnes per annum of lightweight kraftliner. At our Stetí mill (Czech
Republic), the ramp-up of our rebuilt paper and inline coating machine has been slower than anticipated. We have allocated
additional capital to meet quality requirements that are higher than the original project specifications, and expect to ramp up
production over the course of 2017.

Towards the end of 2016 we completed the investment project to upgrade the woodyard at our Richards Bay mill (South Africa),
which has significantly improved efficiencies at the mill and facilitated improved efficiencies in wood handling processes in our
forests, providing higher-quality fibre, reduced maintenance costs, improved reliability, and some energy savings. Our investment
to produce unbleached kraftliner in addition to white-top kraftliner at our Richards Bay mill gives us the opportunity to supply our
customers with this specialised product.

In recent years, we have invested significantly in the modernisation and growth of our Corrugated Packaging and Consumer
Packaging businesses. Looking forward, while still considering capital investment opportunities in these businesses, we are
focused on the optimisation of our existing operations and recent investments.

We have a strong pipeline of large projects over the next few years:

-    The new 300,000 tonne per annum kraft top white machine at Ruzomberok (EUR310 million). This project remains subject to
     obtaining approval of tax incentives from the European Commission and necessary permitting.
-    During 2016, the Boards approved a new woodyard and bleaching line modernisation at Stetí (EUR41 million).
-    In January 2017, the Boards approved a further EUR470 million for the replacement of the recovery boiler at Stetí, the rebuild
     of the fibre lines, the debottlenecking of the paper machines and an investment in a new 90,000 tonnes per annum
     machine glazed speciality kraft paper machine. This project remains subject to obtaining tax incentives and necessary permitting.

Given the approved project pipeline, our annual capital expenditure is expected to be in the range of EUR600-650 million in 2017 and
EUR800-850 million in 2018 as expenditure on these large projects accelerates.

Treasury and borrowings
Net debt at 31 December 2016 was down EUR115 million at EUR1,383 million (2015: EUR1,498 million), reflecting our strong cash
generating capacity despite our ongoing capital expenditure programme and EUR185 million spent on acquisitions.

On 14 April 2016, we issued a 1.5% EUR500 million Eurobond with an eight-year term under our European Medium Term Note
Programme, thereby extending the Group's maturity profile and ensuring ample liquidity. At the end of the year, EUR812 million of our
EUR2.5 billion committed debt facilities remained undrawn and we held net cash of EUR377 million. The weighted average maturity of our
Eurobonds and committed debt facilities was 3.9 years at 31 December 2016. Gearing at 31 December 2016 was 27.2% and our
net debt to 12 month trailing EBITDA ratio was 1.0 times, well within our key financial covenant requirement of 3.5 times.

Our credit ratings were reaffirmed during the year. Our credit rating from Standard & Poor's is BBB (stable outlook) and from
Moody's Investors Service is Baa2 (stable outlook).

Net finance costs of EUR101 million were EUR4 million lower than the previous year. Average net debt of EUR1,476 million was 11% lower
than the prior year and our effective interest rate was 6.2% (2015: 6.3%). Net finance costs are expected to reduce in 2017 due to
the redemption of the April 2017 5.5% EUR500 million Eurobond from available cash and committed undrawn debt facilities.

Growing Responsibly
Our long-term success is dependent on our ability to integrate sustainability across the Group. This ensures that we can continue
to address the risks and opportunities that arise from global environmental and societal trends, retain our competitive edge and
generate value for our stakeholders. We believe that being part of the solution to global challenges will secure the long-term
success of our business and secure the wellbeing of our communities and other stakeholders.

We have a strong track record of delivering on our sustainability commitments. At the end of 2015 we completed our previous
commitment period and this year we launched our Growing Responsibly model. While growing responsibly has long been part of
our philosophy, the model provides the business with a formal framework to demonstrate, monitor and improve the way
sustainability is embedded in the business. The model includes 16 clearly defined 2020 commitments (the climate commitment
runs to 2030) across 10 action areas.

With the resultant strong focus on a safe, fair and diverse workforce, working towards a more transparent and responsible supply
chain, and continued commitment to minimising our climate footprint, we are able to address risks and opportunities across our
business. A number of our recent, ongoing and planned capital expenditure projects will help us to meet our new commitments,
particularly those relating to green energy and emissions reduction.

Our people are important to us, particularly when it comes to ensuring that everyone returns home safely to their families every
day. It is very encouraging that the steps we have taken resulted in a significantly improved total recordable case rate in 2016. With
zero harm our ultimate goal, we have been working hard to eliminate fatal and life-altering injuries. Our focus on the top fatal risks at all
operations has allowed us to better anticipate and manage our highest risk activities - which usually occur during annual
maintenance shuts and project implementation. These efforts thankfully contributed to us experiencing no fatalities or life-
altering injuries during the year. Regrettably in February 2017 we suffered a fatality in our South African forestry operations 
following a timber vehicle accident. We remain determined to focus on top risks so that fatalities and life-altering injuries are 
not a part of our future.

Dividend
The Boards' aim is to offer shareholders long-term dividend growth within a targeted dividend cover range of two to three times
over the business cycle. Given our strong financial position and the Boards' stated objective to increase distributions to
shareholders through the ordinary dividend, the Boards have recommended an increase in the final dividend.

The Boards of Mondi Limited and Mondi plc have recommended a final dividend of 38.19 euro cents per share (2015: 37.62 euro
cents per share), payable on 18 May 2017 to shareholders on the register on 21 April 2017. Together with the interim dividend of
18.81 euro cents per share, paid on 13 September 2016, this amounts to a total dividend for the year of 57.0 euro cents per share,
an increase of 10% on the 2015 total dividend of 52.0 euro cents per share.

The final dividend is subject to the approval of the shareholders of Mondi Limited and Mondi plc at the respective Annual General
Meetings scheduled for 11 May 2017.

Outlook
Our outlook for the business is positive. We have implemented or announced price increases in containerboard, sack kraft and 
uncoated fine paper grades, supported by good demand. We expect some inflationary cost pressures across the Group and a 
lower forestry fair value gain. Furthermore, we anticipate a more challenging trading environment in certain uncoated fine paper 
markets following price erosion in Europe over the course of 2016, combined with emerging market currency volatility. However, 
we expect to continue to benefit from contributions from our recently completed capital projects and acquisitions, together 
with steady organic growth in our downstream converting businesses.

Our consistent and focused strategy, robust business model and firm focus on operational excellence all continue to contribute to
our performance. We remain confident of continuing to deliver industry-leading returns.

Principal risks and uncertainties
The Boards are responsible for the effectiveness of the Group's risk management activities and internal control processes. They
have put procedures in place for identifying, evaluating, and managing the significant risks that the Group faces. In combination
with the audit committee, the Boards have conducted a robust assessment of the principal risks to which Mondi is exposed and
they are satisfied that the Group has effective systems and controls in place to manage its key risks within the risk tolerance 
levels established.

Risk management is by nature a dynamic and ongoing process. Our approach is flexible to ensure that it remains relevant at all
levels of the business, and dynamic to ensure we can be responsive to changing business conditions. This is particularly important
given the diversity of the Group's locations, markets and production processes. Our internal control environment is designed to
safeguard the assets of the Group and to provide reasonable assurance that the Group's business objectives will be achieved.

Strategic risks
The industries and geographies in which we operate expose us to specific long-term risks which are accepted by the Boards as a
consequence of the Group's chosen strategy and operating footprint.

While there have been no significant changes in our strategic risk exposure during the year, we continue to monitor recent capacity
announcements and the developments in the process as the UK seeks to exit the European Union.

The executive committee and Boards monitor our exposure to these risks and evaluate investment decisions against our overall
exposures so that our strategic capital investments and acquisitions take advantage of the opportunities arising from our deliberate
exposure to such risks.

Industry productive capacity
Plant utilisation levels are the main driver of profitability in paper mills. New capacity additions are usually in large increments
which, through their impact on the supply/demand balance, influence market prices. Unless market growth exceeds capacity
additions, excess capacity may lead to lower selling prices. In our converting operations newer technology may lower operating
costs and provide increased product functionality impacting margins.

We monitor industry developments in terms of changes in capacity and utilisation levels, as well as trends and developments in our
own product markets.

Our strategic focus on low-cost production and innovation activities to produce higher value added products, combined with our
focus on growing markets and consistent investment in our operating capacity, ensures that we remain competitive.

Product substitution
Changing global socio-economic and demographic trends and consumption patterns and increased public awareness of
sustainability challenges affect the demand for Mondi's products. Customers' needs and purchasing power are changing in
emerging markets. Substitution may be to different products not produced by Mondi or to different solutions meeting the same
customer requirement. Factors that impact the demand for our products include reduced weight of packaging materials, increased
use of recycled materials, electronic substitution of paper products, increased demand for high-quality printed material, certified
and responsibly produced goods, and specific material qualities.

Our ability to meet changes in consumer demand depends on our capacity to correctly anticipate change and develop new
products on a sustainable, competitive and cost-effective basis. Opportunities also exist for us to take market share from
substitutes produced by our competitors. Our focus is on products enjoying positive substitution dynamics and growing regional
markets as we work with our customers to develop new markets and new products. Our broad range of converting products
provides some protection from the effects of substitution between paper and plastic-based packaging products.

Fluctuations and variability in selling prices or gross margins
Our selling prices are determined by changes in capacity and demand for our products, which are, in turn, influenced by macro-
economic conditions, consumer spending preferences, and inventory levels maintained by our customers. Changes in prices differ
between products and geographic regions and the timing and magnitude of such changes have varied significantly over time.

Our strategic focus is on higher growth markets and products where we enjoy a competitive advantage through innovation,
proximity or production cost. We continue to invest in our high-quality, low-cost production assets to ensure we maintain our
competitive cost position. We are committed to meeting service levels and product quality requirements. Our high levels of vertical
integration reduce our exposure to price volatility of our key input costs. Our financial policies and structures take the inherent price
volatility of the markets in which we operate into consideration.

Country risk
We have production operations across more than 30 countries; some in jurisdictions where the political, economic, and legal
systems are less predictable than in countries with more developed institutional structures. Political or economic upheaval,
inflation, changes in laws, nationalisation, or expropriation of assets may have a material effect on our operations 
in those countries.

Despite improvements in certain segments of the global economy, uncertainties remain over slowing growth, political and
economic structural weakness in the eurozone's single currency framework, and uncertainty over the outcomes of the UK's
decision to exit from the European Union.

Areas of weaker governance also present the challenge of addressing potential human rights issues in our operations and supply
chain. The introduction of the UK Modern Slavery Act has further highlighted the need to identify and address potential risks of
child labour, forced or bonded labour and human trafficking in our supply chain. From a human capital perspective, we face
different demographic and social conditions in each country which affects the availability of skills and talent for the Group.

We actively monitor all countries and environments in which we operate. Regular formal and informal interaction with government
officials, local communities, and business partners assist us to remain abreast of changes and new developments. The Boards
have approved specific country risk premiums to be added to the required returns on investment projects in those countries where
risks are deemed to be higher and new investments are subject to rigorous strategic and commercial evaluation. Where we have
large operations in higher risk locations, we maintain a permanent internal audit presence and operate asset protection units.

We are in the process of reviewing how we assess, monitor, and manage risks in our supply chain, including the use of country-
based risk assessment tools and databases. We actively engage with our employees, communities and other stakeholders for a
better understanding of local socio-economic conditions and development needs. Our geographic diversity and decentralised
management structure, utilising local resources in countries in which we operate, reduces our exposure to any specific jurisdiction.

Financial risks
We aim to maintain an appropriate capital structure and to conservatively manage our financial risk exposures in compliance with
all laws and regulations.

Despite ongoing short-term currency volatility and increased scrutiny of the tax affairs of multinational companies, our overall
residual risk exposure remains similar to previous years, reflecting our conservative approach to financial risk management.

Capital structure
A strong and stable financial position increases our flexibility and provides us with the ability to take advantage of strategic
opportunities as they arise. Our ability to raise debt and/or equity financing is significantly influenced by general economic
conditions, developments in credit markets, equity market volatility, and our credit rating. Failure to obtain financing at reasonable
rates could prevent us from realising our strategy and have a negative impact on our competitive position.

We operate a central treasury function under a board-approved treasury policy. We provide regular reporting to the Boards on our
treasury management policies. We aim to maintain an investment grade credit rating and we have access to a variety of sources of
funding with varying maturities. We only enter into contracts relating to financial instruments with counterparties that have
investment grade credit ratings.

Currency risk
We operate in more than 30 countries and are thus exposed to the effect of changes in foreign currency rates. The impact of
currency fluctuations affect us because of mismatches between the currencies in which our operating costs are incurred and those
in which revenues are received. Key operating cost currencies that are not fully offset by local currency denominated revenues
include the South African rand, Polish zloty, Swedish krona, and Czech koruna; while the revenues generated in US dollar,
Russian rouble and UK pound sterling are greater than operating costs incurred in those currencies. In addition, appreciation of the
euro compared with the currencies of the other key paper producing regions or paper pricing currencies, notably the US dollar,
would reduce the competitiveness of the products Mondi produces in Europe compared to imports from such key paper-producing
regions which could potentially lead to lower revenues and earnings.

We fund our entities in their local currencies to minimise translation risk. This exposes us to interest rate risk from these currencies
which we aim to manage through interest rate swaps and fixed rate borrowings. Balance sheet exposure and material forecast
future capital expenditure transactions are hedged. We do not permit speculative currency positions. We do not hedge our
exposure to projected future sales or purchases and our businesses respond to currency fluctuations through changes in selling
prices or increasing the level of exports where competitiveness improves as currencies weaken. Our strategic focus on low-cost
production assets and operational efficiency provide inherent cost advantages, protecting us from adverse currency fluctuations.

Tax risks
We operate in a number of countries - all with different tax systems. We make significant intragroup charges, the basis for which is
subject to review during tax audits. In addition, the international tax environment is becoming more onerous, requiring increasing
transparency and reporting and in-depth scrutiny of the tax affairs of multinational companies.

The Boards have approved the Group's Tax Policy. We aim to manage our affairs conservatively and our operations are structured
tax efficiently to take advantage of available incentives and exemptions. We have dedicated tax resources throughout the Group
supported by a centralised Group tax team. We obtain external advisory opinions for all major tax projects, such as acquisitions
and restructuring activities, and make use of external benchmarks where possible. Arm's length principles are applied in the pricing
of all intra-group transactions in accordance with Organisation for Economic Cooperation and Development guidelines.

Operational risks
A low residual risk tolerance is demonstrated through our focus on operational excellence, investment in our people and
commitment to the responsible use of resources.

Our investments to improve our energy efficiency, engineer out our most significant fatal risks, improve operating efficiencies, and
renew our equipment continue to reduce the likelihood of operational risk events. However, the potential impact of any such event
remains unchanged.

Cost and availability of raw materials
Access to sustainable sources of raw materials is essential to our operations. We have access to our own sources of wood in
Russia and South Africa and we purchase wood, paper for recycling, pulp, and polymers for film production to meet our needs in
the balance of our operations. Wood prices and availability may be adversely affected by reduced quantities of available wood
supply that meet our standards for chain-of-custody certified or controlled wood and initiatives to promote the use of wood as a
renewable energy source.

We are committed to acquiring our raw materials from sustainable, responsible sources and avoiding the use of any controversial
or illegal supply. We are involved in multi-stakeholder processes to address challenges in meeting the global demand for
sustainable, responsible fibre and we encourage legislation supporting the local collection of recycled materials. The sustainable
management of our forestry operations is key in managing our overall environmental impact, helping to protect ecosystems, and
developing resilient landscapes. We have built strong forestry management resources in Russia and South Africa to actively
monitor and manage our wood resources in those countries. We have multiple suppliers for each of our operations and our
centralised procurement teams work closely with our operations in actively pursuing longer term agreements with strategic
suppliers. We have developed an internal monitoring and risk assessment system to understand and manage the performance of
our suppliers and their adherence to our Suppliers' Code of Conduct.

Energy security and related input costs
Mondi is a significant consumer of electricity which is generated internally and purchased from external suppliers. Where we do not
generate electricity from biomass and by-products of our production processes, we are dependent on external suppliers for raw
materials such as gas, oil and coal. Increasing energy costs contribute significantly to increasing chemical, fuel, and transportation
costs which are often difficult to pass on to customers. As an energy-intensive business, we face potential physical and regulatory
risks related to climate change.

We monitor our electricity usage, carbon emission levels and use of renewable energy. Most of our larger operations have high
levels of electricity self-sufficiency. We focus on improving the energy efficiency of our operations by investing in improvements to
our energy profile and increased electricity self-sufficiency, while reducing ongoing operating costs and carbon emission levels.
Where we generate electricity surplus to our own requirements, we may sell such surplus externally. We also generate revenue
from the sale of green energy credits in certain of our operations at prices determined in the open market.

Technical integrity of our operating assets
We have five major mills which account for approximately 74% of our total pulp and paper production capacity and a significant
consumer packaging manufacturing facility in Germany. If operations at any of these key facilities are interrupted for any significant
length of time, it could have a material adverse effect on our financial position or performance. Accidents or incidents such as fires,
explosions, or large machinery breakdowns could result in property damage, loss of production, reputational damage, and/or
safety incidents.

Our capital investment programme supports the replacement of older equipment to improve both reliability and integrity and our
proactive repair and maintenance strategy is designed to improve production reliability and minimise breakdown risks. We conduct
detailed risk assessments of our high-priority equipment and have specific processes and procedures in place for the ongoing
management and maintenance of such equipment. We actively monitor all incidents and have a formal process which allows us to
share lessons learnt across our operations, identify emerging issues, conduct benchmarking, and evaluate the effectiveness of our
risk reduction activities.

Environmental impact of our operations
We operate in a high-impact sector and need to manage the associated risks and responsibilities. Our operations are water,
carbon and energy intensive; consume materials such as fibre, polymers, metals and chemicals; and generate emissions to air,
water and land. We are the custodian of more than two million hectares of forested land. We are subject to a wide range of
international, national and local environmental laws and regulations, as well as the requirements of our customers and
expectations of our broader stakeholders. Costs of continuing compliance, potential restoration and clean-up activities, and
increasing costs from the effects of emissions have an adverse impact on our profitability.

We ensure that we are complying with all applicable environmental, health and safety requirements where we operate. Our own
policies and procedures, at or above local policy requirements, are embedded in all our operations and are supported through the
use of externally accredited environmental management systems. We focus on a clean production philosophy to address the
impact from emissions, discharge, and waste. We focus on increasing the energy efficiency of our operations and using biomass-
based fuels in order to reduce our use of fossil-based energy sources. We have undertaken detailed compliance assessments
regarding Industry Emissions and Energy Efficiency Directives to determine future investment requirements. We emphasise the
responsible management of forests and associated ecosystems and protect high conservation value areas.

Employee and contractor safety
We operate large facilities, often in remote locations. Accidents/incidents cause injury to our employees or contractors, property
damage, lost production time, and/or harm to our reputation. Risks include: fatalities, serious injuries, illness, disease, and
substance abuse.

We have a goal of zero harm. We continually monitor incidents and close calls and actively transfer learnings across our
operations. We apply an externally accredited safety management system and conduct regular audits of our operations to ensure
our facilities remain fit-for-purpose. We have implemented a project to engineer out the most significant risks in our operations
which is supported by robust controls and procedures for operating those assets. We provide extensive training to ensure that
performance standards and practice notes are communicated and understood and our incentives are impacted by the non-
achievement of safety milestones.

Compliance risks
We have a zero tolerance approach to compliance risks. Our strong culture and values, emphasised in every part of our business
with a focus on integrity, honesty, and transparency, underpins our approach.

Reputational risk
Non-compliance with the legal and governance requirements and globally established responsible business conduct in any of the
jurisdictions in which we operate and within our supply chain could expose us to significant risk if not actively managed. These
requirements include laws relating to the environment, exports, price controls, taxation, human rights, and labour. Fines imposed
by authorities for non-compliance are severe and, in some cases, legislation can result in criminal sanction for entities and
individuals found guilty.

We operate a comprehensive training and compliance programme, supported by self-certification and reporting, with personal
sanction for failure to comply with Group policies. Our legal and governance compliance is supported by a centralised legal
compliance team and is subject to regular internal audit review. We operate a confidential reporting hotline, Speakout, enabling
employees, customers, suppliers, managers and other stakeholders to raise concerns about conduct that may be contrary to our
values. We increasingly work with our suppliers to promote responsible business conduct in the value chain.

Information technology risk
Many of our operations are dependent on the availability of IT services and an extended interruption of such services may result in
plant shutdown and an inability to meet customer requirements. Cyber crime continues to increase and attempts are increasingly
sophisticated, with the consequences of successful attacks including compromised data, financial fraud, and system shutdowns.

We have a comprehensive IT Security Policy approved by our Boards. We conduct regular threat assessments and utilise external
providers to evaluate and review our security policies and procedures. Where possible, we have redundancies in place, our system
landscape is based on well-proven products, and we have cyber crime insurance. We operate an extensive training and
awareness programme for all our users.

Going concern
The directors have reviewed the Group's budget, considered the assumptions contained in the budget, and reviewed the critical
risks which may impact the Group's performance in the near term. These include an evaluation of the current macroeconomic
environment and reasonably possible changes in the Group's trading performance.

The Group's financial position, cash flows, liquidity position, and borrowing facilities are described in the annual financial
statements. At 31 December 2016, Mondi had EUR812 million of undrawn, committed debt facilities. The Group's debt facilities have
maturity dates of between 1 and 9 years, with a weighted average maturity of 3.9 years.

Based on their evaluation, the Boards are satisfied that the Group remains solvent and has adequate liquidity 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 the financial statements.

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 1340 / +44 7909 684 466
Roger Newby                                                   +44 20 3727 1340
Max Gebhardt                                                  +27 11 214 2402

Conference call dial-in and webcast details
Please see below details of our dial-in conference call and webcast that will be held at 08.30 (UK) and 10.30 (SA).

The conference call dial-in numbers are:
South Africa                                                  0800 200 648 (toll-free)
UK                                                            0808 162 4061 (toll-free)
Europe/ other                                                 00800 246 78 700 (toll-free)

The webcast will be available via www.mondigroup.com/FYResults16.

The presentation will be available to download from the above website an hour before the webcast commences. Questions can be
submitted via the dial-in conference call or via the webcast.

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 webcast, please e-mail mondi@kraftwerk.co.at and you will be
contacted immediately.

A video recording of the presentation will be available on Mondi's website during the afternoon of 23 February 2017.

Directors' responsibility statement

These financial statements have been prepared under the supervision of the Group chief financial officer, Andrew King CA (SA),
and have been audited in compliance with the applicable requirements of the Companies Act of South Africa 2008 and the UK
Companies Act 2006.

The responsibility statement has been prepared in connection with the Group's Integrated report and financial statements 2016,
extracts of which are included within this announcement.

The directors confirm that to the best of their knowledge:
-    the condensed combined and consolidated financial statements have been prepared in accordance with the recognition
     and measurement principles of International Financial Reporting Standards (IFRS) and are derived from the audited
     combined and consolidated financial statements of the Group, prepared in accordance with IFRS. (They do not contain
     sufficient information to comply with IFRS.)
-    the Group's combined and consolidated financial statements, prepared in accordance with IFRS, give a true and fair view
     of the assets, liabilities, financial position and profit of the Group;
-    the Strategic report includes a fair review of the development and performance of the business and the position of the
     Group, together with a description of the principal risks and uncertainties they face;
-    the Integrated report and financial statements 2016, taken as a whole, are fair, balanced and understandable and provide
     the information necessary for shareholders to assess the company's performance, business model and strategy;
-    there have been no significant individual related party transactions during the year; and
-    there have been no significant changes in the Group's related party relationships from that reported in the half-yearly
     results for the six months ended 30 June 2016.
The Group's condensed combined and consolidated financial statements, and related notes, including this responsibility statement,
were approved by the Boards and authorised for issue on 22 February 2017 and were signed on their behalf by:

David Hathorn                                          Andrew King
Director                                               Director

Audited financial information

The condensed combined and consolidated financial statements and notes 1 to 19 for the year ended 31 December 2016 have
been audited by the Group's auditors, Deloitte LLP and Deloitte & Touche. Their unmodified audit reports are available for
inspection at the Group's registered offices.

Condensed combined and consolidated income statement
for the year ended 31 December 2016
  
                                                                          2016                                2015
                                                                       Special                             Special
                                                                         items                               items
EUR million                                    Notes   Underlying     (Note 4)       Total   Underlying   (Note 4)       Total
Group revenue                                    3          6,662            —       6,662        6,819          —       6,819
Materials, energy and consumables used                    (3,249)            —     (3,249)      (3,413)          —     (3,413)
Variable selling expenses                                   (499)            —       (499)        (512)          —       (512)
Gross margin                                                2,914            —       2,914        2,894          —       2,894
Maintenance and other indirect expenses                     (301)            —       (301)        (308)          —       (308)
Personnel costs                                             (996)         (13)     (1,009)      (1,003)       (28)     (1,031)
Other net operating expenses                                (251)          (5)       (256)        (258)       (25)       (283)
Depreciation, amortisation and impairments                  (385)         (20)       (405)        (368)        (4)       (372)
Operating profit                                              981         (38)         943          957       (57)         900
Net profit from equity accounted investees                      1            —           1            1          —           1
Profit before net finance costs                               982         (38)         944          958       (57)         901
Net finance costs                                6          (101)            —       (101)        (105)          —       (105)
Profit before tax                                             881         (38)         843          853       (57)         796
Tax charge                                       7          (166)            9       (157)        (161)         10       (151)
Profit for the year                                           715         (29)         686          692       (47)         645
Attributable to:  
 Non-controlling interests                                     48                       48           45                     45
 Shareholders                                                 667                      638          647                    600


Earnings per share (EPS) attributable to
shareholders
(euro cents)

Basic EPS                                        8                                   131.8                               124.0
Diluted EPS                                      8                                   131.7                               123.7
Basic underlying EPS                             8                                   137.8                               133.7
Diluted underlying EPS                           8                                   137.7                               133.4
Basic headline EPS                               8                                   135.9                               123.4
Diluted headline EPS                             8                                   135.8                               123.1



Condensed combined and consolidated statement of comprehensive income
for the year ended 31 December 2016

                                                                               2016                                  2015
                                                            Before tax                  Net of tax    Before tax         Tax      Net of tax
EUR million                                                     amount     Tax benefit      amount        amount     expense          amount
Profit for the year                                                                            686                                       645
Items that may subsequently be reclassified to the
combined and consolidated income statement
Cash flow hedges                                                     —               —           —           (1)           —             (1)
Gains on available-for-sale investments                              1               —           1             —           —               —
Exchange differences on translation of foreign operations          150               —         150         (122)           —           (122)
Items that will not subsequently be reclassified to the
combined and consolidated income statement
Remeasurements of retirement benefits plans                       (19)               4        (15)            27         (3)              24
Other comprehensive income/(expense) for the year                  132               4         136          (96)         (3)            (99)
Other comprehensive income/(expense) attributable to:
 Non-controlling interests                                         (4)               —         (4)           (4)           —             (4)
 Shareholders                                                      136               4         140          (92)         (3)            (95)
Total comprehensive income attributable to:
 Non-controlling interests                                                                      44                                        41
 Shareholders                                                                                  778                                       505
Total comprehensive income for the year                                                        822                                       546


Condensed combined and consolidated statement of financial position
as at 31 December 2016

EUR million                                                                                                  Notes        2016          2015
Property, plant and equipment                                                                                            3,788         3,554
Goodwill                                                                                                                   681           590
Intangible assets                                                                                                          120           105
Forestry assets                                                                                               10           316           219
Other non-current assets                                                                                                    61            58
Total non-current assets                                                                                                 4,966         4,526
Inventories                                                                                                                850           838
Trade and other receivables                                                                                              1,049           994
Cash and cash equivalents                                                                                    14b           404            64
Other current assets                                                                                                        41            47
Total current assets                                                                                                     2,344         1,943
Total assets                                                                                                             7,310         6,469
Short-term borrowings                                                                                         11         (651)         (250)
Trade and other payables                                                                                               (1,100)       (1,038)
Other current liabilities                                                                                                (167)         (165)
Total current liabilities                                                                                              (1,918)       (1,453)
Medium and long-term borrowings                                                                               11       (1,119)       (1,319)
Net retirement benefits liability                                                                             12         (240)         (212)
Deferred tax liabilities                                                                                                 (267)         (241)
Other non-current liabilities                                                                                             (70)          (57)
Total non-current liabilities                                                                                          (1,696)       (1,829)
Total liabilities                                                                                                      (3,614)       (3,282)
Net assets                                                                                                               3,696         3,187
Equity                  
Share capital and stated capital                                                                                           542           542
Retained earnings and other reserves                                                                                     2,850         2,363
Total attributable to shareholders                                                                                       3,392         2,905
Non-controlling interests in equity                                                                                        304           282
Total equity                                                                                                             3,696         3,187

The Group's condensed combined and consolidated financial statements, and related notes 1 to 19, were approved by the Boards
and authorised for issue on 22 February 2017 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 changes in equity
for the year ended 31 December 2016

                                                                                                      Equity
                                                                                             attributable to     Non-controlling      Total
EUR million                                                                                     shareholders           interests     equity
At 1 January 2015                                                                                      2,628                 266      2,894
Total comprehensive income for the year                                                                  505                  41        546
Dividends paid                                                                                         (209)                (25)      (234)
Purchases of treasury shares                                                                            (31)                   —       (31)
Other                                                                                                     12                   —         12
At 31 December 2015                                                                                    2,905                 282      3,187
Total comprehensive income for the year                                                                  778                  44        822
Dividends paid                                                                                         (274)                (32)      (306)
Purchases of treasury shares                                                                            (20)                   —       (20)
Other                                                                                                      3                  10         13
At 31 December 2016                                                                                    3,392                 304      3,696
Equity attributable to shareholders                                         
EUR million                                                                                                                 2016       2015
Combined share capital and stated capital                                                                                    542        542
Treasury shares                                                                                                             (24)       (29)
Retained earnings                                                                                                          3,217      2,868
Cumulative translation adjustment reserve                                                                                  (536)      (685)
Post-retirement benefits reserve                                                                                            (75)       (65)
Share-based payment reserve                                                                                                   22         20
Cash flow hedge reserve                                                                                                      (2)        (2)
Merger reserve                                                                                                               259        259
Put option liability reserve                                                                                                 (9)          —
Other sundry reserves                                                                                                        (2)        (3)
Total                                                                                                                      3,392      2,905

Condensed combined and consolidated statement of cash flows
for the year ended 31 December 2016

EUR million                                                                                                        Notes      2016    2015
Cash flows from operating activities                                    
Cash generated from operations                                                                                       14a     1,401   1,279
Dividends received from equity accounted investees                                                                               1       —
Income tax paid                                                                                                              (173)   (160)
Net cash generated from operating activities                                                                                 1,229   1,119
Cash flows from investing activities                                    
Investment in property, plant and equipment                                                                                  (465)   (595)
Investment in intangible assets                                                                                               (13)     (9)
Investment in forestry assets                                                                                                 (45)    (41)
Acquisition of subsidiaries, net of cash and cash equivalents                                                        13      (162)    (72)
Proceeds from the disposal of businesses, net of cash and cash equivalents                                                       —      38
Other investing activities                                                                                                      20      46
Net cash used in investing activities                                                                                        (665)   (633)          
Cash flows from financing activities                                    
Proceeds from medium and long-term borrowings                                                                                  501       2
Repayment of medium and long-term borrowings                                                                                 (166)   (221)
(Repayment of)/proceeds from short-term borrowings                                                                  14c      (152)      52
Interest paid                                                                                                                 (82)    (93)
Dividends paid to shareholders                                                                                        9      (274)   (209)
Dividends paid to non-controlling interests                                                                                   (33)    (26)
Purchases of treasury shares                                                                                                  (20)    (31)
Other financing activities                                                                                                       7      72
Net cash used in financing activities                                                                                        (219)   (454)     
Net increase in cash and cash equivalents                                                                                      345      32                
Cash and cash equivalents at beginning of year                                                                                  36       9
Cash movement in the year                                                                                           14c        345      32
Effects of changes in foreign exchange rates                                                                        14c        (4)     (5)
Cash and cash equivalents at end of year                                                                            14b        377      36

Notes to the condensed combined and consolidated financial statements
for the year ended 31 December 2016

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.

The Group's condensed combined and consolidated financial statements have been prepared in accordance with the recognition
and measurement principles of International Financial Reporting Standards (IFRS). They have been derived from the audited
combined and consolidated financial statements of the Group, prepared in accordance with IFRS; the South African Institute of
Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee; the requirements of the
Companies Act of South Africa 2008; Financial Pronouncements as issued by the Financial Reporting Standards Council; and
Article 4 of the EU IAS Regulation. They do not contain sufficient information to comply with IFRS.

The condensed combined and consolidated financial statements have been prepared on a going concern basis as discussed in the
commentary under the heading 'Going concern'.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December
2016 or 2015 but is derived from those accounts. Statutory accounts for 2015 have been delivered to the Registrar of Companies,
and those for 2016 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified,
(ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under section 498 (2) or (3) of the UK Companies Act 2006. Copies of their unqualified
auditors' reports on the Integrated report and financial statements 2016 as well as the condensed combined and consolidated
financial statements are available for inspection at the Mondi Limited and Mondi plc registered offices.

These 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.

2 Accounting policies
The same accounting policies, methods of computation and presentation have been followed in the preparation of the condensed
combined and consolidated financial statements as were applied in the preparation of the Group's annual financial statements for
the year ended 31 December 2015, except that the quantitative threshold for recognition of special items incurred after 1 January
2016 has been increased to EUR10 million (2015: EUR5 million). Subsequent adjustments to items previously recognised as special
items continue to be reflected as special items in future periods even if they do not exceed the reporting threshold.

3 Operating segments
Identification of the Group's externally reportable operating segments
The Group's operating segments are reported in a manner consistent with the internal reporting provided to the DLC executive
committee, the chief operating decision-making body. Due to its unique characteristics in terms of geography, currency and
underlying risks, the South Africa Division is managed and reported as a separate geographic segment. The remaining operating
segments, consolidated as the Europe & International Division, are managed based on the nature of the underlying products
produced by those businesses and comprise four distinct segments.

Each of the reportable segments derives its income from the sale of manufactured products.

Year ended 31 December 2016

                                                  Europe & International
                                     Packaging       Fibre      Consumer     Uncoated    South Africa                 Intersegment    Segments
EUR million, unless otherwise stated     Paper   Packaging     Packaging   Fine Paper        Division    Corporate     elimination       total
Segment revenue                          2,056       1,929         1,562        1,246             594            —           (725)       6,662
Internal revenue                         (585)        (32)           (4)          (4)           (100)            —             725           —
External revenue                         1,471       1,897         1,558        1,242             494            —               —       6,662
Underlying EBITDA                          483         194           198          343             182         (34)               —       1,366
Depreciation and impairments             (118)        (66)          (59)         (77)            (35)          (1)               —       (356)
Amortisation                               (4)         (5)          (18)          (2)               —            —               —        (29)
Underlying operating profit                361         123           121          264             147         (35)               —         981
Special items                                —        (13)          (19)            —             (6)            -               —        (38)
Operating segment assets                 2,092       1,315         1,502        1,064             857            4           (178)       6,656
Operating net segment assets             1,760       1,006         1,270          851             731            —               —       5,618
Additions to non-current non-  
financial assets                           149         161           217           50             103            —               —         680
Capital expenditure cash 
payments                                   156         107            91           53              58            —               —         465
Operating margin (%)                      17.6         6.4           7.7         21.2            24.7            —               —        14.7
Return on capital employed  
(%)                                       22.4        13.5          10.5         36.0            27.8            —               —        20.3
Average number of employees 
(thousands)                                5.0         7.7           5.3          5.6             1.7          0.1               —        25.4

Year ended 31 December 2015

                                                    Europe & International
                                     Packaging         Fibre      Consumer       Uncoated   South Africa                Intersegment  Segments
EUR million, unless otherwise stated     Paper     Packaging     Packaging     Fine Paper       Division    Corporate    elimination     total
Segment revenue                          2,156         2,031         1,469          1,233            652            —          (722)     6,819
Internal revenue                         (574)          (37)           (4)            (6)          (101)            —            722         —
External revenue                         1,582         1,994         1,465          1,227            551            —              —     6,819
Underlying EBITDA                          505           187           177            291            199         (34)              —     1,325
Depreciation and impairments             (111)          (63)          (54)           (77)           (38)          (1)              —     (344)
Amortisation                               (3)           (4)          (15)            (2)              —            —              —      (24)
Underlying operating profit                391           120           108            212            161         (35)              —       957
Special items                             (14)          (21)          (22)              —              —            —              —      (57)
Operating segment assets                 2,094         1,224         1,333          1,001            669            6          (168)     6,159
Operating net segment assets             1,753           935         1,146            821            563            1              —     5,219
Additions to non-current non-   
financial assets                           281           118           173             56            104            1              —       733
Capital expenditure cash  
payments                                   259           118            92             65             61            —              —       595
Operating margin (%)                      18.1           5.9           7.4           17.2           24.7            —              —      14.0
Return on capital employed   
(%)                                       25.5          13.9          10.7           25.6           30.1            —              —      20.5
Average number of employees  
(thousands)                                5.3           7.7           4.6            6.0            1.6          0.1              —      25.3

Reconciliation of underlying EBITDA and underlying operating profit to profit before tax
EUR million                                                                                                                     2016      2015
Underlying EBITDA                                                                                                              1,366     1,325
Depreciation and impairments                                                                                                   (356)     (344)
Amortisation                                                                                                                    (29)      (24)
Underlying operating profit                                                                                                      981       957
Special items (see note 4)                                                                                                      (38)      (57)
Net profit from equity accounted investees                                                                                         1         1
Net finance costs                                                                                                              (101)     (105)
Profit before tax                                                                                                                843       796

Reconciliation of operating segment assets

                                                                                      2016                                 2015
                                                                            Segment         Net segment           Segment          Net segment
EUR million                                                                  assets              assets            assets               assets
Segments total                                                                6,656               5,618             6,159                5,219
Unallocated
Investment in equity accounted investees                                          9                   9                 9                    9
Deferred tax assets/(liabilities)                                                26               (241)                23                (218)
Other non-operating assets/(liabilities)                                        209               (307)               201                (325)
Group capital employed                                                        6,900               5,079             6,392                4,685
Financial instruments/(net debt)                                                410             (1,383)                77              (1,498)
Total assets/equity                                                           7,310               3,696             6,469                3,187

                                                                            External revenue by location of   External revenue by location of
                                                                                      production                           customer   
EUR million                                                                    2016                2015              2016                 2015
Revenue       
Africa       
    South Africa                                                                594                 652               407                  465
    Rest of Africa                                                               13                  13               200                  205
Africa total                                                                    607                 665               607                  670
Western Europe       
    Austria                                                                   1,018                 981               143                  144
    Germany                                                                     897                 964               929                  960
    United Kingdom                                                               33                  39               224                  252
    Rest of western Europe                                                      529                 607             1,278                1,360
Western Europe total                                                          2,477               2,591             2,574                2,716
Emerging Europe       
    Poland                                                                      900                 909               546                  515
    Rest of emerging Europe                                                   1,246               1,225               883                  877
Emerging Europe total                                                         2,146               2,134             1,429                1,392
Russia                                                                          760                 674               602                  535
North America                                                                   588                 664               729                  771
South America                                                                     —                   —                70                   72
Asia and Australia                                                               84                  91               651                  663
Group total                                                                   6,662               6,819             6,662                6,819

4 Special items

EUR million                                                                                                          2016                 2015
Operating special items
Impairment of assets                                                                                                 (22)                  (4)
Reversal of impairment of assets                                                                                        2                    —
Restructuring and closure costs:
    Personnel costs                                                                                                  (13)                 (28)
    Other restructuring and closure costs                                                                             (5)                 (17)
Adjustments relating to 2012 Nordenia acquisition                                                                       —                  (8)
Total special items before tax and non-controlling interests                                                         (38)                 (57)
Tax credit (see note 7)                                                                                                 9                   10
Total special items attributable to shareholders                                                                     (29)                 (47)

Operating special items
Restructuring and closure costs and related impairments during the year comprise:
-           Fibre Packaging
               -    Closure of an industrial bags plant in southern Belgium. Restructuring costs of EUR10 million and impairment of
                    assets of EUR3 million were recognised.
-           Consumer Packaging
               -    Restructuring of release liner operations in USA, including closure of one site. Restructuring costs of EUR7 million
                    and impairment of assets of EUR12 million were recognised.
-           South Africa Division
               -     Further impairment of newsprint assets of EUR7 million.
               -     Partial reversal of impairment of uncoated fine paper machine previously impaired of EUR2 million.
               -     Restructuring costs of EUR1 million.

5 Write-down of inventories to net realisable value
EUR million                                                                                                           2016                2015
Write-down of inventories to net realisable value                                                                     (29)                (24)
Aggregate reversal of previous write-down of inventories                                                                18                  19

6 Net finance costs
Net finance costs are presented below:

EUR million                                                                                                           2016                2015
Investment income
Investment income                                                                                                        5                   4
Foreign currency losses
Foreign currency losses                                                                                                (4)                   —
Finance costs
Interest expense
  Interest on bank overdrafts and loans                                                                               (97)               (107)
  Net interest expense on net retirement benefits liability                                                           (10)                 (9)
Total interest expense                                                                                               (107)               (116)
Less: Interest capitalised                                                                                               5                   7
Total finance costs                                                                                                  (102)               (109)
Net finance costs                                                                                                    (101)               (105)
       
The weighted average interest rate applicable to capitalised interest on general borrowings for the year ended 31 December 2016
is 7.15% (2015: 7.08%) and was related to investments in Poland, Russia, the Czech Republic and South Africa. 

7 Tax charge
The Group's effective rate of tax before special items for the year ended 31 December 2016, calculated on profit before tax before
special items and including net profit from equity accounted investees, was 19% (2015: 19%).

EUR million                                                                                                           2016                2015
UK corporation tax at 20% (2015: 20.25%)                                                                                 1                   1
SA corporation tax at 28% (2015: 28%)                                                                                   22                  35
Overseas tax                                                                                                           134                 136
Current tax in respect of prior years                                                                                    5                   1
Current tax                                                                                                            162                 173
Deferred tax in respect of the current year                                                                             28                  24
Deferred tax in respect of prior years                                                                                (22)                (36)
Deferred tax attributable to a change in the rate of domestic income tax                                               (2)                   —
Total tax charge before special items                                                                                  166                 161
Current tax on special items                                                                                           (1)                 (2)
Deferred tax on special items                                                                                          (8)                 (8)
Total tax credit on special items (see note 4)                                                                         (9)                (10)
Total tax charge                                                                                                       157                 151

8 Earnings per share
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
EUR million                                                                                                           2016                2015
Profit for the year attributable to shareholders                                                                       638                 600
Special items (see note 4)                                                                                              38                  57
Related tax (see note 4)                                                                                               (9)                (10)
Underlying earnings for the year                                                                                       667                 647
Special items not excluded from headline earnings                                                                     (18)                (53)
Profit on disposal of property, plant and equipment                                                                      —                (13)
Impairments not included in special items                                                                                5                   3
Related tax                                                                                                              4                  13
Headline earnings for the year                                                                                         658                 597

                                                                                                                    Weighted average number of
                                                                                                                              shares  
million                                                                                                               2016                2015
Basic number of ordinary shares outstanding                                                                          484.2               483.9
Effect of dilutive potential ordinary shares                                                                           0.3                 1.1
Diluted number of ordinary shares outstanding                                                                        484.5               485.0

9 Dividends
An interim dividend for the year ended 31 December 2016 of 288.84260 rand cents/18.81 euro cents per share was paid on
13 September 2016 to all Mondi Limited and Mondi plc ordinary shareholders on the relevant registers on 19 August 2016.

A proposed final dividend for the year ended 31 December 2016 of 38.19 euro cents per ordinary share will be paid on 18 May
2017 to those shareholders on the register of Mondi plc on 21 April 2017. An equivalent South African rand final dividend will be
paid on 18 May 2017 to shareholders on the register of Mondi Limited on 21 April 2017. The final dividend is subject to the
approval of the shareholders of Mondi Limited and Mondi plc at the respective annual general meetings scheduled for
11 May 2017.

Dividends paid to the shareholders of Mondi Limited and Mondi plc are presented on a combined basis.
  
euro cents per share                                                                                                  2016               2015
Final dividend paid (in respect of prior year)                                                                       37.62              28.77
Interim dividend paid                                                                                                18.81              14.38
Final dividend proposed for the year ended 31 December                                                               38.19              37.62

EUR million                                                                                                           2016               2015
Final dividend paid (in respect of prior year)                                                                         183                140
Interim dividend paid                                                                                                   91                 69
Total dividends paid                                                                                                   274                209
Final dividend proposed for the year ended 31 December                                                                 185                182
Declared by Group companies to non-controlling interests                                                                32                 25

Dividend timetable
The proposed final dividend for the year ended 31 December 2016 of 38.19 euro cents per share will be paid in accordance with
the following timetable:

                                                                                          Mondi Limited           Mondi plc
Last date to trade shares cum-dividend
JSE Limited                                                                               18 April 2017           18 April 2017
London Stock Exchange                                                                     Not applicable          19 April 2017
Shares commence trading ex-dividend
JSE Limited                                                                               19 April 2017           19 April 2017
London Stock Exchange                                                                     Not applicable          20 April 2017
Record date
JSE Limited                                                                               21 April 2017           21 April 2017
London Stock Exchange                                                                     Not applicable          21 April 2017
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central
Securities Depository Participants                                                        26 April 2017           26 April 2017
Last date for DRIP elections to UK Registrar and South African Transfer
Secretaries by shareholders of Mondi Limited and Mondi plc                                28 April 2017           23 April 2017*
Payment Date
South African Register                                                                    18 May 2017             18 May 2017
UK Register                                                                               Not applicable          18 May 2017
DRIP purchase settlement dates (subject to the purchase of shares in the open
market)                                                                                   24 May 2017             22 May 2017**
Currency conversion date
ZAR/euro                                                                                  23 February 2017        23 February 2017
Euro/sterling                                                                             Not applicable          2 May 2017

*28 April 2017 for Mondi plc South African branch register shareholders
**24 May 2017 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 April 2017 and 23 April 2017, both dates inclusive, nor may transfers between the UK and South African registers of
Mondi plc take place between 12 April 2017 and 23 April 2017, 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
23 February 2017.

10 Forestry assets

EUR million                                                                                                               2016       2015
At 1 January                                                                                                               219        235
Capitalised expenditure                                                                                                     39         38
Acquisition of assets                                                                                                        6          3
Fair value gains                                                                                                            64         40
Disposal of assets                                                                                                         (1)        (1)
Felling costs                                                                                                             (57)       (51)
Currency movements                                                                                                          46       (45)
At 31 December                                                                                                             316        219
Comprising   
Mature                                                                                                                     193        139
Immature                                                                                                                   123         80
Total forestry assets                                                                                                      316        219

The fair value of forestry assets is a level 3 measure in terms of the fair value measurement hierarchy (see note 17), consistent
with prior years. 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 based on a pre tax yield on long-term bonds.

11 Borrowings

Financing facilities
Group liquidity is provided through a range of committed debt facilities. The principal loan arrangements in place include the
following:

EUR million                                                                   Maturity             Interest rate %          2016      2015
Financing facilities
Syndicated Revolving Credit Facility                                         July 2021      EURIBOR/LIBOR + margin           750       750
EUR500 million Eurobond                                                     April 2017                       5.75%           500       500
EUR500 million Eurobond                                                 September 2020                      3.375%           500       500
EUR500 million Eurobond                                                     April 2024                       1.50%           500         —
European Investment Bank Facility                                            June 2025            EURIBOR + margin            81        90
Export Credit Agency Facility                                                June 2020            EURIBOR + margin            53        72
Other                                                                          Various                     Various           113        90
Total committed facilities                                                                                                 2,497     2,002
Drawn                                                                                                                    (1,685)   (1,404)
Total committed facilities available                                                                                         812       598

On 14 April 2016 Mondi issued a 1.5% EUR500 million Eurobond with an eight-year term under its Euro Medium Term Note Programme.

The EUR500 million Eurobonds maturing in 2017 and 2020 contain a coupon step-up clause whereby the coupon will be increased by
1.25% per annum if Mondi fails to maintain at least one investment grade credit rating from either Moody's Investors Service or
Standard & Poor's. Mondi currently has investment grade credit ratings from both Moody's Investors Service (Baa2, stable outlook)
and Standard & Poor's (BBB, stable outlook).
                                                                       2016                                            2015
EUR million                                          Current      Non-current          Total         Current      Non-current            Total
Secured                                                    1                2              3               3                3                6
Unsecured   
Bonds                                                    500              995          1,495               —              996              996
Bank loans and overdrafts                                150              110            260             247              306              553
Other loans                                                —               12             12               —               14               14
Total unsecured                                          650            1,117          1,767             247            1,316            1,563
Total borrowings                                         651            1,119          1,770             250            1,319            1,569

The Group's borrowings as at 31 December are analysed by nature and underlying currency as follows: 

                                                                                               Non-interest
                                                              Floating rate      Fixed rate         bearing    Total carrying
2016/EUR million                                                 borrowings      borrowings      borrowings             value       Fair value
Euro                                                                    129           1,498               —             1,627            1,701
South African rand                                                       60               —               —                60               60
US dollar                                                                 6               9               —                15               15
Russian rouble                                                            9               —               —                 9                9
Turkish lira                                                             47               —               —                47               47
Other currencies                                                         10               2               —                12               12
Carrying value                                                          261           1,509               —             1,770
Fair value                                                              261           1,583               —                              1,844

                                                                                               Non-interest
                                                              Floating rate      Fixed rate         bearing    Total carrying
2015/EUR million                                                 borrowings      borrowings      borrowings             value       Fair value
Euro                                                                    278           1,002               —             1,280            1,363
Pounds sterling                                                         159               —               —               159              159
South African rand                                                       36               —               6                42               42
Polish zloty                                                             32               2               —                34               34
Turkish lira                                                             33               —               —                33               33
Other currencies                                                         11              10               —                21               22
Carrying value                                                          549           1,014               6             1,569
Fair value                                                              549           1,098               6                              1,653

The fair values of the EUR500 million Eurobonds are estimated with reference to the last price quoted in the secondary market. All
other financial liabilities are estimated by discounting the future contractual cash flows at the current market interest rate that is
available to the Group for similar financial instruments.

The Group swaps euro and sterling debt into other currencies through the foreign exchange market using foreign exchange
contracts which has the effect of exposing the Group to interest rates of these currencies. The currencies swapped into/(out of) and
the amounts as at 31 December were as follows:

EUR million                                                                                                              2016           2015
Short-dated contracts with tenures of less than 12 months
Pounds sterling                                                                                                            12          (148)
Czech koruna                                                                                                              188            200
Polish zloty                                                                                                              317            250
Russian rouble                                                                                                             27             86
Swedish krona                                                                                                              39             42
US dollar                                                                                                                 119            104
Other                                                                                                                      96             57
Total swapped                                                                                                             798            591

12 Retirement benefits

All assumptions related to the Group's defined benefit schemes and post-retirement medical plan liabilities were re-assessed
individually for the year ended 31 December 2016. The net retirement benefit liability increased by EUR30 million mainly due to
changes in assumptions. The assets backing the defined benefit scheme liabilities reflect their market values as at 31 December
2016. Net remeasurement losses arising from changes in assumptions amounting to EUR10 million have been recognised in the
condensed combined and consolidated statement of comprehensive income.

13 Business combinations

To 31 December 2016

Acquisition of SIMET S.A. (Poland)
Mondi acquired 100% of the outstanding share capital of SIMET S.A. (SIMET) on 27 April 2016 for a consideration of EUR13 million
on a debt and cash-free basis. SIMET is a corrugated plant that produces a wide range of flexo printed packaging. Mondi intends
to expand and upgrade this operation to a high-efficiency, heavy-duty box plant, including the addition of a corrugator line for on-
site board production. The acquisition strengthens Mondi's Corrugated Packaging market position in central and emerging Europe.

SIMET's revenue for the year ended 31 December 2016 was EUR17 million with a profit after tax of EURnil. SIMET's revenue of
EUR11 million and profit after tax of EURnil since the date of acquisition have been included in the condensed combined and
consolidated income statement.

Acquisition of Kale Nobel Ambalaj Sanayi ve Ticaret Anonim Sirketi (Turkey)
On 12 July, Mondi acquired a 90% interest in Kale Nobel Ambalaj Sanayi ve Ticaret Anonim Sirketi (Kalenobel) for a consideration
of EUR90 million on a debt and cash-free basis. Kalenobel is a consumer packaging company focused on the manufacture of flexible
consumer packaging for ice cream and other applications as well as aseptic cartons. The acquisition supports Mondi's growing
Consumer Packaging business. The non-controlling interest holder has an option to put its shares to Mondi until June 2021, but
not before March 2018, at a price determined based on future earnings, but capped at TRY100 million (EUR27 million).

Kalenobel's revenue for the year ended 31 December 2016 was EUR72 million with a profit after tax of EUR5 million. Kalenobel's revenue
of EUR27 million and loss after tax of EUR2 million since the date of acquisition have been included in the condensed combined and
consolidated income statement.

Acquisition of ZAO Uralplastic-N (Russia)
On 15 July, Mondi acquired a 100% interest in ZAO Uralplastic-N (Uralplastic) for a consideration of RUB2,949 million (EUR41 million)
on a debt and cash-free basis. Uralplastic manufactures a range of consumer flexible packaging products for food, hygiene,
homecare and other applications and the acquisition supports Mondi's growing Consumer Packaging business.

Uralplastic's revenue for the year ended 31 December 2016 was EUR34 million with a loss after tax of EUR2 million. Uralplastic's revenue
of EUR19 million and loss after tax of EUR2 million since the date of acquisition have been included in the condensed combined and
consolidated income statement.

Acquisition of LLC Beepack (renamed LLC Mondi Lebedyan) (Russia)
On 20 October, Mondi acquired 100% of the outstanding share capital of LLC Beepack (Lebedyan) for a consideration of
RUB2,825 million (EUR41 million) on a debt and cash-free basis.

Lebedyan produces a range of corrugated packaging trays and boxes for food and agricultural products including beverages, fruit
and vegetables, poultry and dairy. Customers include local Russian and international producers. The acquisition of Lebedyan
supports the ongoing development of Mondi's Corrugated Packaging business in central and eastern Europe.

Lebedyan's revenue for the year ended 31 December 2016 was EUR38 million with a profit after tax of EUR3 million. Lebedyan's revenue
of EUR8 million and profit after tax of EUR1 million since the date of acquisition have been included in the condensed combined and
consolidated income statement.

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
Property, plant and equipment                                                   39            16              55
Intangible assets                                                                5            22              27
Inventories                                                                     16             1              17
Trade and other receivables                                                     44           (3)              41
Cash and cash equivalents                                                        2             —               2
Total assets                                                                   106            36             142
Trade and other payables                                                      (23)           (2)            (25)
Provisions                                                                       —           (1)             (1)
Net retirement benefits liability                                                —           (2)             (2)
Deferred tax liabilities                                                         —           (7)             (7)
Total liabilities (excluding debt)                                            (23)          (12)            (35)
Short-term borrowings                                                         (17)             —            (17)
Medium and long-term borrowings                                               (19)             —            (19)
Debt assumed                                                                  (36)             —            (36)
   
   
Net assets acquired                                                             47            24              71
Goodwill arising on acquisitions                                                                              81
Goodwill arising from purchase price adjustment (KSP)                                                         13
Deferred acquisition consideration (Ascania)                                                                   2
Non-controlling interests in equity                                                                          (3)
Cash acquired net of overdrafts                                                                              (2)
Net cash paid per combined and consolidated statement of cash flows                                          162


EUR million                                                               Goodwill    Net assets   Net cash paid
SIMET                                                                            4             6              10
Kalenobel                                                                       42            31              68
Uralplastic                                                                     22             6              28
Lebedyan                                                                        13            28              41
Acquisitions total                                                              81            71             147
Purchase price adjustment (KSP)                                                 13             —              13
Deferred acquisition consideration (Ascania)                                                                   2
Acquisitions total including adjustments                                        94            71             162

Transaction costs of EUR5 million were charged to the condensed combined and consolidated income statement.

The fair value accounting of these acquisitions is provisional in nature. The nature of these businesses is such that further
adjustments to the carrying values of acquired assets and/or liabilities, and adjustments to the purchase price, are possible as the
detail of the acquired businesses is evaluated post acquisition. If necessary, any adjustments to the fair values recognised will be
made within 12 months of the acquisition dates.

In respect of trade and other receivables, the gross contractual amounts receivable less the best estimates at the acquisition dates
of the contractual cash flows not expected to be collected approximate the book values and the revaluation amounts respectively
as presented.

Purchase price adjustment of KSP
In accordance with the KSP purchase agreement, a payment of EUR13 million has been recognised in the current year, and reflected
as an adjustment to Goodwill recognised.

To 31 December 2015

Mondi acquired 100% of the outstanding share capital of Ascania nonwoven Germany GmbH (Ascania) (Germany) on 2 November 2015 for a
consideration of EUR53 million on a debt and cash-free basis. Ascania is a producer of nonwoven fabrics and nonwoven composites
primarily used for personal care, hygiene and medical products as well as household applications.

On 14 December 2015, Mondi acquired a 95% interest in KSP, Co. (KSP) (South Korea and Thailand), for a consideration of EUR54 million on 
a debt and cash-free basis. The preliminary purchase price of EUR41 million reported in 2015 was based on provisional results. On finalisation of the
2015 financial results the purchase price was confirmed at EUR54 million. KSP is a flexible packaging company specialising in the
production of high-quality spouted and retort stand-up pouches for the food, pet food and beverage industries.

The provisional fair values at acquisition of KSP have been adjusted. Property, plant and equipment reduced by EUR1 million, trade
and other receivables by EUR2 million. Trade and other payables increased by EUR1 million and borrowings reduced by EUR4 million. The
net effect of the adjustments is EURnil and has been recorded during the year ended 31 December 2016.

Details of the net assets acquired are as follows:

                                                                                Book value      Revaluation       Fair value
EUR million                                                                                      (restated)       (restated)
Net assets acquired
Property, plant and equipment                                                           14               25               39
Intangible assets                                                                        —                6                6
Share of joint venture                                                                   1                3                4
Inventories                                                                              4                —                4
Trade and other receivables                                                             17              (2)               15
Cash and cash equivalents                                                               12                —               12
Total assets                                                                            48               32               80
Trade and other payables                                                               (8)              (1)              (9)
Income tax liabilities                                                                 (2)                —              (2)
Net retirement benefits liability                                                      (2)                —              (2)
Deferred tax liabilities                                                                 —              (9)              (9)
Total liabilities (excluding debt)                                                    (12)             (10)             (22)
Short-term borrowings                                                                 (13)                2             (11)
Medium and long-term borrowings                                                        (8)                2              (6)
Debt assumed                                                                          (21)                4             (17)
Net assets acquired                                                                     15               26               41
Goodwill arising on acquisitions                                                                                          57
Non-controlling interests in equity                                                                                      (1)
Cash acquired net of overdrafts                                                                                         (12)
Net cash paid per combined and consolidated statement of cash flows                                                       85
Paid in 2015                                                                                                              72
Paid in 2016                                                                                                              13
                                                                                                                          85

EUR million                                                                         Goodwill    Net assets     Net cash paid
Ascania                                                                                   25            26                47
KSP                                                                                       32            15                38
Acquisitions total                                                                        57            41                85

No adjustments were made to the fair values of other prior year acquisitions.

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

EUR million                                                                                             2016            2015
Profit before tax                                                                                        843             796
Depreciation and amortisation                                                                            380             365
Impairment of property, plant and equipment and intangible assets (not included in special items)          5               3
Share-based payments                                                                                      13              11
Net cash flow effect of current and prior year special items                                              17              15
Net finance costs                                                                                        101             105
Net profit from equity accounted investees                                                               (1)             (1)
Decrease in provisions and net retirement benefits                                                      (14)            (15)
Decrease/(increase) in inventories                                                                        24            (11)
Increase in operating receivables                                                                        (1)            (51)
Increase in operating payables                                                                            45              71
Fair value gains on forestry assets                                                                     (64)            (40)
Felling costs                                                                                             57              51
Profit on disposal of property, plant and equipment                                                        —            (13)
Profit from disposal of businesses                                                                         —             (6)
Other adjustments                                                                                        (4)             (1)
Cash generated from operations                                                                         1,401           1,279

(b) Cash and cash equivalents
EUR million                                                                                             2016            2015
Cash and cash equivalents per condensed combined and consolidated statement of financial
position                                                                                                 404              64
Bank overdrafts included in short-term borrowings                                                       (27)            (28)
Cash and cash equivalents per condensed combined and consolidated statement of cash  
flows                                                                                                    377              36

The fair value of cash and cash equivalents approximate their carrying values presented.

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.

(c) Movement in net debt

The Group's net debt position is as follows:

                                                                                                               Current    Debt-related
                                                          Cash and          Debt due         Debt due        financial      derivative
                                                              cash        within one        after one            asset       financial         Total net
EUR million                                            equivalents              year             year      investments     instruments              debt
At 1 January 2015                                                9             (129)          (1,565)                —              72           (1,613)
Cash flow                                                       32              (52)              219                —               —               199
Business combinations                                            —                 5              (8)                —               —               (3)
Movement in unamortised loan costs                               —                 —              (3)                —               —               (3)
Net movement in derivative financial instruments                 —                 —                —                —            (73)              (73)
Reclassification                                                 —              (54)               54                2               —                 2
Currency movements                                             (5)                 8             (16)                —               6               (7)
At 31 December 2015                                             36             (222)          (1,319)                2               5           (1,498)
Cash flow                                                      345               152            (335)                —               —               162
Business combinations                                            —              (17)             (19)                —               —              (36)
Movement in unamortised loan costs                               —                 —              (2)                —               —               (2)
Net movement in derivative financial instruments                 —                 —                —                —            (23)              (23)
Reclassification(1)                                              —             (541)              547                —               —                 6
Currency movements                                             (4)                 4                9                —             (1)                 8
At 31 December 2016                                            377             (624)          (1,119)                2            (19)           (1,383)

Note:
(1)Following the acquisition of the outstanding minority interest in a subsidiary, the shareholder loan provided by the minority shareholder was reclassified as an
   intercompany loan and has been eliminated on consolidation.

15 Capital commitments

EUR million                                                                                                                        2016            2015
Contracted for but not provided                                                                                                     222             213
Approved, not yet contracted for                                                                                                  1,516             817
Total capital commitments                                                                                                         1,738           1,030

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

EUR million                                                                                                                        2016            2015
Intangible assets                                                                                                                    35              22
Property, plant and equipment                                                                                                     1,703           1,008
Total capital commitments                                                                                                         1,738           1,030

The expected maturity of these capital commitments is:
EUR million                                                                                                                        2016            2015
Within one year                                                                                                                     538             418
One to two years                                                                                                                    593             334
Two to five years                                                                                                                   607             278
Total capital commitments                                                                                                         1,738           1,030

Capital commitments are based on capital projects approved by the end of the financial year and the budget approved by the
Boards. Major capital projects still require further approval before they commence and are not included in the above analysis. The
Group's capital commitments are expected to be financed from existing cash resources and borrowing facilities.
In January 2017, the Boards approved a further EUR470 million capital spend at Stetí (Czech Republic). Capital expenditure is
expected to be incurred in the three years from 2017 to 2019 and is not included in the capital commitments detailed above.



16 Contingent liabilities
Contingent liabilities comprise aggregate amounts as at 31 December 2016 of EUR11 million (2015: EUR9 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 either year presented.



17 Fair value measurement
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, are 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 only assets 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 and certain assets acquired or liabilities assumed in business combinations.
There have been no transfers of assets or liabilities between levels of the fair value hierarchy during the year.
The fair values of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) are
determined using generally accepted valuation techniques. These valuation techniques maximise the use of observable market
data where available and rely as little as possible on Group specific estimates.
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.
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
EUR million                                                                          2016             2015            2016           2015
Financial liabilities
Borrowings                                                                          1,770            1,569           1,844          1,653

The non-controlling interest holder in Kalenobel holds an option to put its shares to Mondi until June 2021, but not before
March 2018, at a price determined based on future earnings. The present value of the option is EUR9 million based on the current
expected business plan, and is capped at TRY100 million (EUR27 million).

18 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. These transactions, 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 31 of the Group's annual financial statements
for the year ended 31 December 2015.

19 Events occurring after 31 December 2016
With the exception of the events listed below there have been no material reportable events since 31 December 2016:
    -    Final dividend proposed for 2016 (see note 9);
    -    Acquisition of 100% of the outstanding share capital of Excelsior Technologies Limited (Excelsior) on 6 February 2017, for
         a total consideration of GBP33 million (EUR38 million), on a debt and cash-free basis.

Production statistics
                                                                                   2016    2015
Packaging Paper                           
Containerboard                                                    '000 tonnes     2,000   2,138
Kraft paper                                                       '000 tonnes     1,204   1,162
Softwood pulp                                                     '000 tonnes     1,870   1,759
 Internal consumption                                             '000 tonnes     1,698   1,609
 Market pulp                                                      '000 tonnes       172     150
Hardwood pulp - internal consumption                              '000 tonnes       364     322
Fibre Packaging                           
Corrugated board and boxes                                         million m2     1,448   1,350
Industrial bags                                                 million units     4,881   4,925
Extrusion coatings                                                 million m2     1,249   1,389
Consumer Packaging                           
Consumer packaging                                                 million m2     7,156   6,594
Uncoated Fine Paper                           
Uncoated fine paper                                               '000 tonnes     1,408   1,379
Softwood pulp                                                     '000 tonnes       334     349
 Internal consumption                                             '000 tonnes       315     333
 Market pulp                                                      '000 tonnes        19      16
Hardwood pulp                                                     '000 tonnes       853     839
 Internal consumption                                             '000 tonnes       777     741
 Market pulp                                                      '000 tonnes        76      98
Newsprint                                                         '000 tonnes       202     197
South Africa Division                            
Containerboard                                                    '000 tonnes       253     247
Uncoated fine paper                                               '000 tonnes       258     240
Hardwood pulp                                                     '000 tonnes       602     619
 Internal consumption                                             '000 tonnes       322     305
 Market pulp                                                      '000 tonnes       280     314
Newsprint                                                         '000 tonnes       111     113
Softwood pulp - internal consumption                              '000 tonnes       148     138

Exchange rates

                                                               Average             Closing
versus euro                                               2016        2015    2016        2015
South African rand                                       16.27       14.17   14.46       16.95
Czech koruna                                             27.03       27.28   27.02       27.02
Mexican peso                                             20.66       17.61   21.77       18.91
Polish zloty                                              4.36        4.18    4.41        4.26
Pounds sterling                                           0.82        0.73    0.86        0.73
Russian rouble                                           74.16       68.04   64.30       80.67
Turkish lira                                              3.34        3.02    3.71        3.18
US dollar                                                 1.11        1.11    1.05        1.09

Glossary of financial terms
This announcement contains a number of terms which are explained below:

Net debt                               A measure comprising short, medium, and long-term interest-bearing borrowings
                                       and the fair value of debt-related derivatives less cash and cash equivalents and
                                       current financial asset investments.
Return on capital employed (ROCE)      Trailing 12-month underlying operating profit, including share of associates' net
                                       profit, divided by trailing 12-month average capital employed and for segments has
                                       been extracted from management reports. Capital employed is adjusted for
                                       impairments in the year and spend on those strategic projects which are not yet in
                                       production.
Special items                          Those financial items which the Group believes should be separately
                                       disclosed on the face of the combined and consolidated income statement to assist
                                       in understanding the underlying financial performance achieved by the Group.
                                       Special items affect year-on-year comparability and the Group therefore excludes
                                       these items when reporting underlying earnings and related measures in order to
                                       provide a measure of the underlying performance of the Group on a basis that is
                                       comparable from year to year.
Underlying EBITDA                      Operating profit before special items, depreciation and amortisation.
Underlying operating profit            Operating profit before special items.
Underlying profit before tax           Reported profit before tax and special items.
Underlying earnings                    Net profit after tax before special items attributable to shareholders.

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.

Editors' notes
We are Mondi: In touch every day

Mondi is an international packaging and paper Group, employing around 25,000 people across more than 30 countries. Our key
operations are located in central Europe, Russia, North America and South Africa. In 2016, Mondi had revenues of EUR6.7 billion and
a return on capital employed of 20.3%.

We are fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and compound plastics, 
to developing effective and innovative industrial and consumer packaging solutions. With over 100 products customised into more than 100,000 solutions, 
we offer more than you may expect. Leading brands around the world rely on our innovative technologies and products across a variety of 
industries such as agriculture; automotive; building and construction; chemicals and dangerous goods; food and beverages; graphic and 
photographic; home and personal care; medical and pharmaceutical; office and professional printing; packaging and paper converting; pet care; 
retail and e-commerce; and shipping and transport.

We believe sustainable development makes good business sense. It's integral to our responsible and profitable growth, and embedded in everything we do, every day. 
We continue to look for ways to do more with less, promote the responsible management of ecosystems, develop and inspire our people, and enhance the value that our 
sustainable product solutions create. 

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. We have been included in the FTSE4Good Index Series since 2008 and the JSE's Socially 
Responsible Investment (SRI) Index since 2007.

Sponsor in South Africa: UBS South Africa Proprietary Limited 



Date: 23/02/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story