Mondi : Fixed Income Investor Presentation (May 2024) (11 MB)

Fixed income investor presentation

May 2024

Mike Powell, CFO

James Paterson, Group Treasurer

Disclaimer

The information and the opinions in this presentation have been prepared by Mondi plc (Mondi). This presentation and its contents are strictly confidential, are intended for use by the recipient for information purposes only and may not be reproduced in any form or further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. By accessing or reading the presentation slides, you agree to be bound by the following limitations. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

This presentation does not constitute a recommendation or investment advice regarding any securities issued or to be issued by Mondi or any of its subsidiaries. This presentation does not constitute or form part of, and should not be construed as, an offer to sell, or the solicitation or invitation of any offer to buy or subscribe for, any securities issued or to be issued by Mondi or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.

To the extent available, the industry, market and competitive position data contained in this presentation comes from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data.

The distribution of this presentation and other information in connection with any securities issued or to be issued by Mondi or any of its subsidiaries in certain jurisdictions may be restricted by law and persons into whose possession this presentation or any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This presentation and any materials distributed in connection with this presentation are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Neither Mondi nor any of its subsidiaries accepts any liability to any person in relation to the distribution or possession of this presentation in or from any jurisdiction.

Nothing in this presentation should be construed as legal, tax, regulatory, accounting or investment advice.

Certain data in this presentation has been rounded. As a result of such rounding, the totals of data prescribed in this presentation may vary slightly from the arithmetic total of such data.

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A market leader in sustainable packaging

• Broad & innovative product range in structurally growing markets
• High-quality,integrated asset base
• Strong cash generation with robust balance sheet
• Disciplined capital allocation strategy
• Investment through-cycle for value accretive growth
• Contributing to a better world

Delivering value accretive growth, sustainably

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Mondi has leading positions in packaging and paper markets

Corrugated	Flexible	Uncoated
Packaging	Packaging	Fine Paper

Revenue split by end market

We produce containerboard from fresh, recycled and mixed fibres, along with a wide range of innovative corrugated boxes and fully recyclable solutions.

#1 virgin containerboard producer in Europe

#1 containerboard producer in emerging Europe

#1 corrugated solutions producer in emerging Europe

We produce kraft papers for strong, paper-based packaging and have an exceptional portfolio of flexible-based paper, plastic and hybrid packaging solutions.

#1 kraft paper producer globally

#1 paper bags producer in Europe and a global leader

#3 consumer flexible packaging producer in Europe

We offer a wide range of home, office, converting and professional printing papers produced at our mills in central Europe and South Africa.

#2 uncoated fine paper producer in Europe

#1 uncoated fine paper producer in South Africa

Consumer & retail

STRATEGIC PRIORITY FOR EACH BUSINESS UNIT

GROW

GROW

OPTIMISE

Building & construction

Industrial & agricultural Paper for printing

Refer to the end of this document for market position sources and definitions

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Mondi at a glance (2023)

Products	Segment	Underlying	ROCE	End uses
	revenue1	EBITDA	(12-month
		& margin	rolling)

Corrugated	€2,280m	€310m	7.7%
Packaging	(31%)	13.6%

	Flexible	€3,866m	€637m	14.4%
	Packaging	(52%)	16.5%

	Uncoated Fine	€1,292m	€289m	20.6%
	Paper	(17%)	22.4%

1.	Segment revenue percentages exclude inter-segment eliminations	Consumer and retail2	Paper for printing
2.	Includes consumer non-durables, eCommerce and other retail applications
3.	All figures for the year ended 31 December 2023	Building and construction	Market pulp

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Industrial and agriculture

A global packaging platform…

Corrugated Packaging

6 mills, 18 converting plants

Production sites per business unit

Corrugated Packaging	Mill (6)
	Converting plant (18)
Flexible Packaging	Mill (6)
	Converting plant (67)
Uncoated Fine Paper	Mill (5)
Group offices
London, Vienna

Flexible Packaging

6 mills, 67 converting plants

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…providing a range of multi-material solutions

For example, our eCommerce customers can choose between kraft and functional barrier paper, paper bags and corrugated solutions which all provide protection, reseal for return and sustainability benefits

CORRUGATED PACKAGING	FLEXIBLE PACKAGING
BOXES
BAGS

High

strength

Puncture

resistance

Corrugated Boxes and Mailers			Recyclable
Mailer Bags	Kraft Paper	Barrier Paper

Printability

for branding

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Our Sustainability Framework

Circular Driven Solutions

− Make all our packaging and paper solutions reusable, recyclable or compostable. − Avoid waste by keeping materials in circulation.

− Work with Others to eliminate unsustainable packaging.

Created by Empowered People

− Build skills that support long-term employability.

− Provide purposeful employment for all of us in a diverse and inclusive workplace. − Enable a positive work-life balance, valuing safety, health and mental wellbeing.

Taking Action on Climate

− Reduce our greenhouse gas emissions in line with science-basedNet-Zero targets. − Maintain zero deforestation in our wood supply, sourcing from resilient forests.

− Safeguard biodiversity and water resources in our operations and beyond.

Our alignment with the UN Sustainable Development Goals (SDGs)

Built on Responsible Business Practices

Human Rights | Communities | Procurement | Environmental Performance

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We're recognised as a leader in sustainability

Sustainalytics1

Ranked #1 in Paper and Forestry industry out of 81 companies (September 2023)

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CDP 5

A List, with double 'A' for forests and water security and an A- score for climate change

EcoVadis 2

Platinum status as one of the top 1% globally in Corporate Social Responsibility ratings

MSCI ESG Rating6

Top 'AAA' score for strong resilience to environmental, social and governance risks

ISS ESG 3

'Prime' rating as the highest sector-specific score for ESG performance

FTSE4Good Index 7

Member of Index Series, demonstrating strong ESG practices

Transition Pathway Initiative 4

Highest climate change score in the paper sector, with a Level 4 management quality rating and carbon performance aligned with Paris Pledges

WBCSD Reporting Matters 8

Included in 'Top performer' category since 2018

Sources:
1 www.sustainalytics.com/esg-rating/mondi-plc/1043417151	5 www.cdp.net/en/companies/companies-scores
2 EcoVadis	6 www.msci.com/our-solutions/esg-investing/esg-ratings-climate-search-tool/issuer/mondi-plc/IID000000002175996
3 ISS ESG	7www.lseg.com/en/ftse-russell/index-resources/notices
4 www.transitionpathwayinitiative.org/sectors/paper	8 www.wbcsd.org/Programs/Redefining-Value/Reporting-matters/News/Reporting-matters-2023

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STRONG FINANCIAL PERFORMANCE PROVIDES STRATEGIC FLEXIBILITY

10	March 2024