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 16 October 2014

This interim management statement provides an update on the financial
performance and financial position of the Group since the half year ended 30
June 2014, based on management accounts up to 30 September 2014 and estimated
results for October 2014. These results have not been audited or reviewed by
Mondi's external auditors.

Audited results for the year ending 31 December 2014 will be published on or
around 24 February 2015.

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 30 June 2014 up to the date of this
statement.

Group Performance Overview

Third quarter underlying operating profit of EUR174 million was in line with
management's expectations, comparable to the prior year period and 10% below
that of the previous quarter.

Like-for-like sales volumes were broadly in line with the comparable prior year
period.

Previously announced price increases were successfully implemented in a number
of the Group's key Packaging Paper markets, with increases implemented for
unbleached kraft paper from the beginning of the third quarter, recycled
containerboard from August and unbleached kraftliner from September.

Wood costs were lower on average than the previous quarter whilst paper for
recycling costs were at similar levels. The business continued to benefit from
its investments in energy related capital expenditure and lower European
natural gas prices.

During the quarter, the major annual maintenance shuts scheduled for the
Group's uncoated fine paper and containerboard facilities were completed
according to plan. The major kraft paper maintenance shuts are scheduled for
the fourth quarter. The impact on third quarter underlying operating profit
from these shuts is estimated at around EUR30 million. Based on prevailing
market prices, the fourth quarter impact will be around EUR15 million to EUR20
million.

The South Africa Division benefited from the stronger US dollar on its export
sales whilst the weaker Russian rouble had a negative impact on the more
domestically focused Russian businesses. The recent strengthening of the US
dollar relative to the euro should support European pricing in packaging grades
and provide a net benefit to the Group's export businesses.

The Group continues to monitor the developments in Russia and the Ukraine,
however these have had minimal direct impact on operations to date.

Reorganisation of business segments

During the quarter, the Group refined its organisational structure, which has
resulted in several changes within the Group's segmental reporting. The most
significant of these changes were the:

  * transfer of the release liner business from Fibre Packaging to Consumer
    Packaging to take advantage of identified synergies in customer relations,
    innovation and the global footprint of these businesses; and
   
  * transfer of the 40,000 tonne per annum kraft paper machine at the
    Ruzomberok mill from Uncoated Fine Paper to Packaging Paper.
   
The restated segmental information is included as an appendix to this
statement. The reorganisation had no impact on the overall Group result.

Divisional Overview

The Packaging Paper business saw selling price increases across a number of key
grades. Unbleached kraft paper price increases of between EUR30/tonne and EUR40
/tonne were implemented from July. Price increases for unbleached kraftliner
and recycled containerboard of between EUR30/tonne and EUR40/tonne were
achieved in steps during August and September. Prices for white-top kraftliner
and speciality kraft paper were stable.

During the quarter, the Group announced the intention to close one of the two
speciality kraft paper machines at its Lohja mill in Finland with capacity of
30,000 tonnes per annum. Closure and restructuring costs amounting to EUR6
million were recognised as a special item.

Fibre Packaging continued to perform well, with good year-on-year margin
development in both Corrugated Packaging and Industrial Bags. Increasing paper
input costs in the Corrugated Packaging segment and seasonally weaker demand in
Industrial Bags are expected to put some pressure on margins in the fourth
quarter.

During the quarter the sub-scale Moderbrugg corrugated packaging plant in
Austria was sold.

The integration of the recently acquired Graphic Packaging industrial bags
business in the US is progressing according to plan. Various restructuring
activities have been announced, including the closure of a plant in
Philadelphia. The closure and restructuring costs, which will be reflected as a
special item, are estimated at EUR13 million.

Profitability in Consumer Packaging improved from the previous quarter,
although the weak trading conditions in Europe continued to impact this
business. A relocation of the head office activities of the business unit was
implemented and costs amounting to EUR12 million reflected as a special item.

The Uncoated Fine Paper business was impacted by the seasonally weaker third
quarter and the impact of planned maintenance shuts. Further weakening of the
Russian rouble impacted the profitability of the business, although price
increases achieved during the quarter in Russia partly offset this. The normal
seasonal pick-up in demand following the European summer has been marginally
weaker than anticipated with some price softness evident in key European market
segments.

Lower export pulp sales prices and fair value gains on forestry assets resulted
in lower profitability in the South Africa Division compared to the previous
quarter. The weakness of the rand against the US dollar provided some offset.

Capital investment projects

The Group continues to make good progress on its major capital projects. The
EUR128 million recovery boiler project at the Group's Ruzomberok mill and
EUR30 million pulp dryer at the Syktyvkar mill are currently in commissioning
phase.

Financial position

On 15 July 2014, as previously announced, the Group redeemed the 9.75%
EUR280 million Eurobond, assumed as part of the Nordenia acquisition. The notes
were redeemed utilising proceeds from existing borrowing facilities.

Net debt of EUR1,811 million at the end of the quarter was EUR60 million up on
the half-year, impacted by a number of factors including the 31 July
acquisition of the Printpack Inc. consumer packaging plant in Poland for
USD23 million announced at the half-year, increased capital expenditure,
payment of the interim dividend, interest on the 2020 EUR500 million Eurobond
and currency effects.

Outlook

Recent price increases in a number of the Packaging Paper grades and continued
strong operating performance across the Group should provide solid support for
the Group to continue to deliver in line with management expectations.

Looking further forward, much depends on macroeconomic developments in the
Group's core European markets. However, with the Group's low cost operating
model in upstream businesses, to be further enhanced by the various capital
projects nearing completion, and the benefits of strong vertical integration,
management remains confident of continuing to deliver industry leading
performance.

Operating segments(restated)

Six months ended 30 June 2014                                                                      
                                                                                                   
                            Europe & International            South                                
                                                             Africa Corporate Intersegment Segments
                                                           Division   & other  elimination    total
                                                                                                   
€ million, unless                                 Uncoated                                         
otherwise stated    Packaging     Fibre  Consumer     Fine                                         
                        Paper Packaging Packaging    Paper                                         
                                                                                                   
Segment revenue         1,022       868       685      646      284         -        (357)    3,148
                                                                                                   
Internal revenue        (282)      (20)       (3)      (4)     (48)         -          357        -
                                                                                                   
External revenue          740       848       682      642      236         -            -    3,148
                                                                                                   
EBITDA                    216        78        69      127       78      (15)            -      553
                                                                                                   
Depreciation,            (49)      (30)      (30)     (47)     (20)         -            -    (176)
amortisation and                                                                                   
impairments                                                                                        
                                                                                                   
Underlying                167        48        39       80       58      (15)            -      377
operating profit/                                                                                  
(loss)                                                                                             
                                                                                                   
Special items               -       (7)         4        -        -      (13)            -     (16)
                                                                                                   
Operating segment       1,975     1,075     1,140    1,301      728         6        (177)    6,048
assets                                                                                             
                                                                                                   
Operating net           1,621       814       979    1,113      608         7            -    5,142
segment assets                                                                                     
                                                                                                   
Additions to              135        27        33       50       29        23            -      297
non-current                                                                                        
non-financial                                                                                      
assets                                                                                             
                                                                                                   
Capital expenditure       116        30        35       59        9         -            -      249
cash payments                                                                                      
                                                                                                   
Operating margin         16.3       5.5       5.7     12.4     20.4         -            -     12.0
(%)                                                                                                
                                                                                                   
Return on capital        22.5      12.3       8.3     15.6     20.5         -            -     16.0
employed (%)                                                                                       
                                                                                                   
Six months ended 30 June 2013                                                                      
                                                                                                   
                            Europe & International            South                                
                                                             Africa Corporate Intersegment Segments
                                                           Division   & other  elimination    total
                                                                                                   
€ million, unless                                 Uncoated                                         
otherwise stated    Packaging     Fibre  Consumer     Fine                                         
                        Paper Packaging Packaging    Paper                                         
                                                                                                   
Segment revenue         1,078       856       721      711      325         -        (349)    3,342
                                                                                                   
Internal revenue        (265)      (23)       (2)      (3)     (56)         -          349        -
                                                                                                   
External revenue          813       833       719      708      269         -            -    3,342
                                                                                                   
EBITDA                    202        75        74      150       67      (14)            -      554
                                                                                                   
Depreciation,            (48)      (31)      (32)     (53)     (23)       (1)            -    (188)
amortisation and                                                                                   
impairments                                                                                        
                                                                                                   
Underlying                154        44        42       97       44      (15)            -      366
operating profit/                                                                                  
(loss)                                                                                             
                                                                                                   
Special items               -         -      (13)     (50)     (18)         -            -     (81)
                                                                                                   
Operating segment       1,859     1,069     1,160    1,328      810         7        (129)    6,104
assets                                                                                             
                                                                                                   
Operating net           1,498       839       993    1,144      687         7            -    5,168
segment assets                                                                                     
                                                                                                   
Additions to               59        22        27       32       34         -            -      174
non-current                                                                                        
non-financial                                                                                      
assets                                                                                             
                                                                                                   
Capital expenditure        56        31        27       36       14         -            -      164
cash payments                                                                                      
                                                                                                   
Operating margin         14.3       5.1       6.0     13.6     13.5         -            -     11.0
(%)                                                                                                
                                                                                                   
Return on capital        20.0      13.4       7.3     17.2     12.8         -            -     14.8
employed (%)                                                                                       
                                                                                                   

Year ended 31 December 2013                                                                        
                                                                                                   
                            Europe & International            South                                
                                                             Africa Corporate Intersegment Segments
                                                           Division   & other  elimination    total
                                                                                                   
€ million, unless                                 Uncoated                                         
otherwise stated    Packaging     Fibre  Consumer     Fine                                         
                        Paper Packaging Packaging    Paper                                         
                                                                                                   
Segment revenue         2,073     1,690     1,414    1,335      624         -        (660)    6,476
                                                                                                   
Internal revenue        (506)      (43)       (4)      (6)    (101)         -          660        -
                                                                                                   
External revenue        1,567     1,647     1,410    1,329      523         -            -    6,476
                                                                                                   
EBITDA                    408       146       143      266      135      (30)            -    1,068
                                                                                                   
Depreciation,           (100)      (60)      (64)    (102)     (42)       (1)            -    (369)
amortisation and                                                                                   
impairments                                                                                        
                                                                                                   
Underlying                308        86        79      164       93      (31)            -      699
operating profit/                                                                                  
(loss)                                                                                             
                                                                                                   
Special items               -       (3)      (13)     (60)     (11)         -            -     (87)
                                                                                                   
Operating segment       1,905     1,001     1,121    1,270      731         2        (140)    5,890
assets                                                                                             
                                                                                                   
Operating net           1,543       771       964    1,099      622         1            -    5,000
segment assets                                                                                     
                                                                                                   
Additions to              165        66        65       85       93         -            -      474
non-current                                                                                        
non-financial                                                                                      
assets                                                                                             
                                                                                                   
Capital expenditure       141        71        61       80       52         -            -      405
cash payments                                                                                      
                                                                                                   
Operating margin         14.9       5.1       5.6     12.3     14.9         -            -     10.8
(%)                                                                                                
                                                                                                   
Return on capital        21.7      11.8       8.7     16.0     16.0         -            -     15.3
employed (%)                                                                                       
                                                                                                   

Year ended 31 December 2012                                                                        
                                                                                                   
                            Europe & International            South                                
                                                             Africa Corporate Intersegment Segments
                                                           Division   & other  elimination    total
                                                                                                   
€ million, unless                                 Uncoated                                         
otherwise stated    Packaging     Fibre  Consumer     Fine                                         
                        Paper Packaging Packaging    Paper                                         
                                                                                                   
Segment revenue         1,970     1,583       765    1,415      702         -        (645)    5,790
                                                                                                   
Internal revenue        (470)      (50)       (4)     (13)    (108)         -          645        -
                                                                                                   
External revenue        1,500     1,533       761    1,402      594         -            -    5,790
                                                                                                   
EBITDA                    334       151        57      292      125      (32)            -      927
                                                                                                   
Depreciation,            (98)      (58)      (34)    (106)     (56)       (1)            -    (353)
amortisation and                                                                                   
impairments                                                                                        
                                                                                                   
Underlying                236        93        23      186       69      (33)            -      574
operating profit/                                                                                  
(loss)                                                                                             
                                                                                                   
Special items               -      (16)      (11)        -        6      (70)            -     (91)
                                                                                                   
Operating segment       1,896     1,065     1,156    1,410      975         5        (150)    6,357
assets                                                                                             
                                                                                                   
Operating net           1,523       821       985    1,215      821         1            -    5,366
segment assets                                                                                     
                                                                                                   
Additions to              256       129       631       58       94         -            -    1,168
non-current                                                                                        
non-financial                                                                                      
assets                                                                                             
                                                                                                   
Capital expenditure        95        62        36       58       43         -            -      294
cash payments                                                                                      
                                                                                                   
Operating margin         12.0       5.9       3.0     13.1      9.8         -            -      9.9
(%)                                                                                                
                                                                                                   
Return on capital        17.8      13.9       5.6     16.7      9.6         -            -     13.7
employed (%)                                                                                       
                                                                                                   

Contact details:

Mondi Group                                                                    
                                                                               
David Hathorn                           [phone]                        
Andrew King                             [phone]                        
Lora Rossler                            [phone]                        
                                                                               
FTI Consulting                                                                 
                                                                               
Richard Mountain                        [phone]                       
Sue I Ong                               [phone]                       

Editors' notes

Mondi is an international packaging and paper Group, employing around 26,000
people in production facilities across 31 countries. In 2013, Mondi had
revenues of EUR6.5 billion and a ROCE of 15.3%. The Group's key operations are
located in central Europe, Russia, the Americas and South Africa.

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

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

Sponsor in South Africa: UBS South Africa Pty Ltd


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