Interim Management Statement

Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

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

Mondi Group: Interim Management Statement 14 May 2014

This interim management statement provides an update on the financial
performance and financial position of the Group since the year ended 31
December 2013, based on management accounts up to 31 March 2014 and estimated
results for April 2014. These results have not been audited or reviewed by
Mondi's external auditors.

Reviewed results for the half-year ending 30 June 2014 will be published on or
around 7 August 2014.

Except as discussed in this interim management statement, there have been no
significant events or transactions impacting either the financial performance
or financial position of Mondi Group since 31 December 2013 up to the date of
this statement.

Group Performance Overview

First quarter underlying operating profit of EUR183 million was 13% above the
comparable prior year period (EUR162 million), 14% above the fourth quarter of
2013 (EUR161 million), and in line with management's expectations.

Sales volumes were broadly in line with the comparable prior year period, and
above the previous quarter, mainly due to the scheduling of maintenance shuts
in the second half of the prior year.

As expected, average selling prices in Europe for all key paper grades were
lower than those in both the prior year comparable period and the previous
quarter, with the exception of recycled containerboard. The corrugated
packaging business benefited from further pass through of prior period recycled
containerboard price increases, while pricing in the South African division was
higher than the comparable prior year period in equivalent currency terms.

There was some increase in key input costs over the quarter, with increases in
wood costs and paper for recycling affecting the European operations.
Offsetting these increases is the benefit from the various energy optimisation
projects and restructuring initiatives completed during the prior year.
Furthermore, in the comparable prior year period, a write-down relating to the
value of green energy credits on hand in Poland, amounting to EUR11 million was
recognised.

There were no significant maintenance shuts during the quarter. The majority of
the planned maintenance shuts will take place towards the end of the second
quarter and into the second half of the year. The impact of maintenance shuts
on annual operating profit is estimated to be between EUR50 million and EUR60
million.

Although there has been significant volatility in the key currencies to which
the Group is exposed, the overall weakening trend in the Group's key operating
currencies against the euro yielded a marginal net benefit. The businesses in
Poland and South Africa were net beneficiaries, given their significant export
exposure, but this was partially offset by the impact of the weaker Russian
rouble on the Group's more domestically focused Russian businesses.

While the Group remains vigilant of the ongoing political developments in the
Ukraine, to date they have had no material impact on the Group's operations.

Divisional Overview

Europe & International

As anticipated, profitability of Packaging Paper was impacted by lower average
selling prices in the quarter for virgin containerboard grades and sack kraft
paper, partly offset by higher average recycled containerboard prices.

Supported by good demand, price increases were announced during the quarter for
unbleached kraftliner in the European markets. Negotiations with customers are
ongoing, with a small increase already implemented.

Recycled containerboard prices came under some pressure towards the end of the
quarter and into April, impacted by new capacity entering the market and
falling costs of paper for recycling.

In kraft paper, average selling prices during the quarter were around 3% down
on the previous quarter. Selling price increases for unbleached sack kraft
paper have since been announced on the back of a strong pick-up in demand in
the first quarter, with price increases expected to be realised in the second
half of the year when a number of fixed price contracts come up for renewal.

In the Fibre Packaging business unit, price increases in corrugated packaging
have been realised following the recycled containerboard price increases seen
in the previous quarter. Sales volumes increased versus both the comparable
prior year period and the prior quarter, reflecting improving demand in
corrugated packaging whilst industrial bags benefited from the milder winter
and earlier than usual start to the construction season. Sales volumes in the
coatings business improved versus the prior quarter, reflecting seasonal
effects and improving consumer demand.

Consumer Packaging performance has improved from a weak fourth quarter of 2013
benefiting from an improved product mix, despite constrained demand and the
phasing out of mature products in the films and components segment. Trading
conditions, particularly in the core European markets, remain challenging.

Uncoated Fine Paper was impacted by the anticipated price erosion in the
European markets in the first quarter. However, good demand and tighter supply
into European markets following significant capacity closures in the United
States has encouraged the business to announce price increases of approximately
5% in all European markets.

The weaker Russian rouble had a detrimental impact on the profitability of the
Group's Russian business. Demand remains stable and price increases have been
implemented in the domestic market, effective from the second quarter.

South Africa Division

The Division continued to benefit from good domestic demand, with selling
prices rising in local currency terms during the quarter. Further benefits were
realised from the weaker South African rand and higher fair value gains on
forestry assets. Benchmark hardwood pulp sales prices came under increasing
pressure during the quarter, with average euro prices around 1% lower than the
prior quarter.

Capital investment projects

Good progress is being made on the Group's major capital investment projects,
with all projects proceeding on schedule and within budget.

A recent highlight was the successful commercial production of bleached kraft
paper from the new 155,000 tonne paper machine at the Steti mill in the Czech
Republic in April, meeting a strong order book. Production will be ramped up
over the course of the year.

Financial position

Net debt of EUR1,580 million at the end of the quarter was EUR41 million lower
than the EUR1,621 million at 31 December 2013. Strong operating cash inflows
were offset by a seasonal increase in working capital and higher capital
investment cash flows as a number of the Group's strategic investments reach
completion.

Finance charges were lower than that of the preceding quarter and the
comparable prior year period, primarily as a result of the lower average net
debt.

The average maturity of the Group's committed debt facilities at 31 March 2014
was 3.5 years. The Group had EUR787 million of committed, unutilised borrowing
facilities available at 31 March 2014.

Summary

The trading environment remains mixed. As anticipated selling prices for a
number of the Group's key paper grades are currently below those of the prior
year. However, fundamentals in our core markets remain generally solid and
price increases in certain grades are under discussion. Furthermore, the
ongoing capital investment programme is already making an important
contribution to the profitability of the Group, with further projects on track
for completion over the course of this year. As such, we remain confident in
the Group's ability to continue delivering an industry-leading performance.

Contact details:

Mondi Group                                                                    
                                                                               
David Hathorn                           [phone]                        
                                                                               
Andrew King                             [phone]                        
                                                                               
Lora Rossler                            [phone]                        
                                                                               
FTI Consulting                                                                 
                                                                               
Richard Mountain                        [phone]                       
                                                                               
Sophie McMillan                         [phone]                       

Editors' notes

Mondi is an international packaging and paper Group, employing around 24,000
people in production facilities across 30 countries. In 2013, Mondi had
revenues of EUR6.5 billion and a ROCE of 15.3%. The Group's key operations are
located in central Europe, Russia, the Americas and South Africa.

The Mondi Group is fully integrated across the packaging and paper value chain
- from the management of its own forests and the production of pulp and paper
(packaging paper and uncoated fine paper), to the conversion of packaging paper
into corrugated packaging, industrial bags, extrusion coatings and release
liner. Mondi is also a supplier of innovative consumer packaging solutions,
advanced films and hygiene products components.

Mondi has a dual listed company structure, with a primary listing on the JSE
Limited for Mondi Limited under the ticker code MND and a premium listing on
the London Stock Exchange for Mondi plc, under the ticker code MNDI. The
Group's performance, and the responsible approach it takes to good business
practice, has been recognised by its inclusion in the FTSE4Good Global,
European and UK Index Series (since 2008) and the JSE's Socially Responsible
Investment (SRI) Index since 2007.

Sponsor in South Africa: UBS South Africa (Pty) Ltd