Sustainable Growth Strategy

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Packaging and Paper

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2020

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#1Investor presentation 10 November 2021 [email protected] mondi I MY PAPER BAG mondi#2Mondi: Forward-looking statements disclaimer 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 the Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation or applicable law or any regulatory body applicable to Mondi, including the JSE Limited, the FCA and the LSE. 2 mondi#3Key takeaways Eco Wicket Bag 3 BIO RISPEN TOMATEN mondi BarrierPack Recyclable SUSTAINABLE & DESIGN Eco e-shop EnvelopeMailer mondi mond EcoVantage the NEW recycled PerFORMing SUSTAINABLE & DESIGN SUSTAINABLE by DESIGN • A leading global packaging and paper company ⚫ Innovative and sustainable packaging and paper solutions 。 Leveraging global industry trends • Integrated across the value chain leveraging our cost advantaged asset base Continuous focus on driving performance Clear and consistent strategy Delivering value accretive growth sustainably Investing through-the-cycle with capital investment projects o Driving organic growth, enhanced cost competitiveness and sustainability benefits Robust financial position providing strategic flexibility mondi#4Mondi at a glance (2020) Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper Segment revenue1 €1,879m (27%) €2,667m (39%) €801m (12%) €1,485m (22%) Underlying €518 million €519 million €80 million €266 million EBITDA ROCE Products 22.5% BECOOL! End uses 0 BECOOL! Consumer and retail² MailerBag Flexig 14.5% ValveBa SPLASH BAG 0 Consumer and retail² 7.5% Consumer and retail² 1. Segment revenues and related percentages before elimination of inter-segment revenues 2. Includes consumer non-durables, e-commerce and other retail applications 4 Building and construction Chemicals, industrial, agriculture and other Paper for home, office and professional printing Market pulp and other Снегурочка 11.3% rotatrim rotatcm R 0 mondi#5Leading market positions CORRUGATED PACKAGING FLEXIBLE PACKAGING ENGINEERED MATERIALS #1 virgin containerboard producer in Europe #1 kraft paper producer globally #1 containerboard producer in emerging Europe #1 paper bag producer in Europe and a global leader #2 in emerging Europe corrugated solutions producer #3 consumer flexible packaging producer in Europe Refer to the end of this document for market position sources and definitions 5 COMPOSTABLE BADAB RECYCLABLE UNCOATED FINE PAPER Color Copy #1 commercial release liner producer in Europe #1 uncoated fine paper supplier in Europe (including Russia) #2 extrusion coatings #1 uncoated fine paper producer in Europe producer in South Africa mondi#6Strong global presence Revenue by location 2020 (%) 6 North America Production Customer 7% 11% Revenue from customers in South America represented 2% in 2020 Production Emerging Europe Customer Western Europe 35%) 23% Russia Production Customer Production Customer 38% 38% 12% 9% Asia & Australia Production Customer Africa 1% 9% Production Customer 7% 8% mondi#7Integrated value chain (2020) 50 Mondi managed forests Annual allowable cut 9 million m3 Internally procured wood¹ 4 million m3 Externally procured wood 14 million m3 Paper for recycling 1.3 mt K Resin, films and other raw materials Pulp 4.5 mt Containerboard 2.5 mt Box plants Kraft paper 1.1 mt 1. Due to commercial, logistic and sustainability considerations, the actual wood procured from our managed forests was lower than the annual allowable cut 2. In addition to the 1.4 mt of uncoated fine paper, the Group also produced 0.2 mt of newsprint 3. Pulp and packaging paper net exposure 7 Uncoated fine paper² 1.4 mt Pulp³ 0.5 mt Containerboard³ 1.6 mt Corrugated solutions 1.8 bn m² Kraft paper³ 0.3 mt Paper bags 5.4 bn bags Consumer flexibles 2.5 bn m² Converting plants Engineered materials 5.1 bn m² Uncoated fine paper 1.4 mt mondi#88 Investing for growth in structurally attractive packaging markets Corrugated Packaging nazon.de amazon.fr amazon Engineered Materials GROW Flexible Packaging SNE L YOU EED IS mondi COMPOSTABLE DARL RECYCLABLE Uncoated Fine Paper GROW Color Copy STRENGTHEN NICHE POSITIONS MAINTAIN COMPETITIVENESS SOLOR COPY Net investment1 Underlying EBITDA2 5-year history (H2 2016 - H1 2021) H1 2021 €0.2bn €0.8bn 5% €0.9bn 21% 37% 37% Corrugated Packaging Flexible Packaging Engineered Materials Uncoated Fine Paper 1 Net investment calculated as capex plus acquisitions less depreciation and disposals 2 Underlying EBITDA split excludes corporate costs mondi#9Consistent strategy driving strong performance Underlying EBITDA and margin € million and % 9 23.6% 22.8% 20.5% 20.9% 20.3% 19.5% Cash generated from operations € million 1,366 2016 1,482 2017 1,764 2018 1,658 2019 1,353 709 1,401 1,363 1,654 1,635 1,485 2020 H1 2021 2016 2017 2018 2019 2020 Underlying EBITDA -Underlying EBITDA margin 552 H1 2021 mondi#10Strategic framework 10 10 Digitalisation Partner with customers for innovation along the value chain Drive performance We drive value accretive growth, SUSTAINABLY Inspire EF our people with cost advantage Invest in assets mondi#11Driving value accretive growth sustainably Sustainability targets to 2030 MAP2030 Mondi Action Plan CIRCULAR DRIVEN SOLUTIONS... Innovative packaging and paper solutions that keep materials in circulation and prevent waste Commitments Make 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... An empowered and inclusive team of colleagues who contribute to a better world Commitments Build skills that support long-term employability Provide purposeful employment for all our employees in a diverse and inclusive workpace Create an environment that enables a positive work-life experience, valuing our safety, health and mental wellbeing TAKING ACTION ON CLIMATE Climate resilience through our forests and operations for the future of the planet Commitments Reduce our greenhouse gas (GHG) emissions in line with science-based targets Maintain zero deforestation in our wood supply, sourcing from healthy and resilient forests Safeguard biodiversity and water resources in our operations and beyond 11 Built on Responsible Business Practices Business Ethics & Governance | Human Rights | Communities | Procurement | Environmental impact Refer to appendix for list of targets and commitments per action area mondi#12Driving value accretive growth sustainably Building on a successful track record 2020 performance - some key examples: ar BHP Inend SAFETY PERFORMANCE TRCR (per 200,000 hours worked) GHG EMISSIONS tonne per tonne of saleable production 23% reduction vs 2015 58% reduction vs 2005 24% reduction vs 2014 45% reduction vs 2004 RESPONSIBLE FIBRE SOURCING responsibly 100% sourced fibre 100% certified forests 2004/2005 were the baseline years of Mondi's 1st set of sustainability commitments while 2014/2015 are the baseline years for the Group's 2020 commitments 12 SPECIFIC WASTE TO LANDFILL kg per tonne of saleable production 25% reduction vs 2015 63% reduction vs 2005 mondi#13Driving value accretive growth sustainably Mondi recognised as a leader in sustainability A few external benchmark examples: 13 CDP DISCLOSURE INSIGHT ACTION A LIST 2020 CLIMATE FORESTS WATER MSCI ESG RATINGS CCC B BB BBB A AAA AA AAA PLATINUM Top 1% 2020 ecovadis Sustainability Rating One of only 10 companies globally with a CDP Triple A rating Top quartile in the Paper & Forest Products industry Making a real contribution to the UN SDGS 6 CLEAN WATER AND SANITATION 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION 15 LIFE ON LAND Top 1% in our sector for 5 consecutive years mondi#14Drive performance along the value chain; Invest in assets with cost advantage Cost advantaged operations combined with our relentless focus on driving performance Cost advantaged asset base Mondi capacity by quartile of relevant industry cost curve (%) 59% 1st quartile 2nd quartile 20% -80% OF CAPACITY in the 1st or 2nd cost quartile Focus on driving performance Ongoing processes • Core organisation competence Ongoing process to set profit improvement initiatives in four key areas: - - - Commercial Supply chain Procurement - Operational • Accelerated via digital tools Clear commitment and ownership, ongoing tracking ⚫ Benchmarking performance internally and externally • Collaboration and knowledge sharing network • Culture of continuous improvement Refer to the end of this document for relevant industry cost curve sources and definitions 14 mondi#15Invest in assets with cost advantage Leveraging cost-advantaged pulp and paper production footprint 15 8% increased capacity when in full operation Lower production costs 02022 Enhanced efficiencies Improved environmental footprint Current projects - more than €750 million mondi#16Invest in assets with cost advantage Further detail on current projects totalling more than €750 million 16 Ramping up new containerboard machine at Ružomberok (300ktpa) Ramping up speciality kraft paper production in Štětí (45ktpa) Debottlenecking of Syktyvkar Modernisation of Richards Bay Kuopio debottlenecking approved (55ktpa) mondi#17Invest in assets with cost advantage Investing in converting to support growth in structurally attractive markets Mondi's sales volume CAGR LTM to June 2021 vs LTM June 2016 17 5-year CAGR +3% +2% +7% Consumer flexibles Paper bags Corrugated solutions Enhancing our product and service offering o eCommerce • Sustainability • Enhancing customer brand value Expanding geographically Improving efficiency and reducing conversion costs mondi#18Invest in assets with cost advantage UFP: Strongly positioned 18 Leading player Leading market positions 。 Europe CIS Southern Africa Gaining share in all key markets • Leveraging integrated asset base to grow in packaging Cost-advantaged asset base 2/3rds of portfolio in lowest industry cost quartiles 2 1/3 ~ 2/3 Strong cash generation through-the-cycle Underlying EBITDA / capital expenditure Integrated and cost-advantaged • Broad product portfolio with Neusiedler focused on premium grades 3.8x 2017 3.2x 2.0x 1.8x 2.2x 2018 2019 2020 H1 2021 Underlying EBITDA > capex by more than €1.1 billion since 2017 mondi#19Partner with customers for innovation Mondi's customer-centric approach to sustainable packaging Ecosolutions 19 REPLACE mondi REDUCE PAPER where possible.... mondi StripPouch SUSTAINABLE DESIGN RECYCLE WalletPack SUSTAINABLE & DESIGN mondi ...PLASTIC when useful mondi#20Partner with customers for innovation A unique platform to deliver 20 20 High High Low Paper Added barriers mondi EcoVantage RISPEN TOMATEN TAM BIO 0 - → Low Low High 0 Moisture Renewable Recyclable Barrier functionality то Grease Mineral Oil Gas mond Material mondi PerFORMing SUSTAINABLE DESIGN BarrierPack Recyclable DUSTABLE DESIGN Barrier films ming Aluminium foil mondi SUSTAINABLE & DES 4 Metal/alu replacement non-retort mondi PAPER where possible... SUSTAINABLE SOLUTIONS ....PLASTIC when useful SUSTAINABLE & DESIGN mondi#21Partner with customers for innovation Alternative to plastic pallet wrapping Advantage StretchWrap • Innovative paper-based pallet wrapping o Responsibly sourced renewable fibres. Recyclable • Developed in cooperation with machinery supplier (ACMI) and customers Potential to replace more than 10,000 tonnes of plastic for every 1% of EU pallets mondi 21 24 Reduce eplace R Recyc ecycle Ecosolutions by Mondi Advantage Stretch Wrap mondi#22Partner with customers for innovation eCommerce paper-based solution MailerBAG • Innovative paper-based eCommerce mailer Complementing corrugated packaging portfolio Fully recyclable o Easy to open and convenient return features • Investing to upscale production to 350 million bags per annum to meet growing demand 22 22 SUSTAINABLE ECOMMERCE PACKAGING DRIVING GROWTH Reduce eplace R Recyc ecycle Ecosolutions by Mondi mondi#23Partner with customers for innovation Eliminating polystyrene, optimising transport MonoCorr Box • 100% corrugated, 100% recyclable • Solution for global shipping of Warmhaus boilers • Eliminates polystyrene inserts Optimises transport Corrugated inserts use 90% less space when sent to customer 14% reduced box height increases pallet capacity for distribution by 20% Further opportunities for multiple applications monds LESS MATERIALS ZERO POLYSTYRENE 23 223 Replace --- Reduce Recycle Ecosolutions by Mondi mondi mondi#24Partner with customers for innovation Paper-based packets for Unilever's Colman's Meal Makers NEW PAPER PLEASE RECYCLE M PLEASE PL ME ECYCLE ME" Col FULL .PLEASE SA NEW PAPER RECYCLE RECYCLE Col 857 FULL O SA PLEA NEW PAPER PACKAGING RECYCLE RECYCLE ME Colman's 4 EST FULL OF FLAVOUR SAUSAGE CASSEROLE 7 Things to buy... 450g sausages 2 onions Things to buy... 460g sausages 2 onions 1 red pepper (optional) 115g mushrooms 115g mushrooms 1 red pepper (optional) Things to bu 450g sausages 2 onions 115g mushrooms 1 red pepper (optional) 24 24 portion of the prepared recipe Serving suggestion 214 Energy per 100g as sold: 14841/351kcal Energy per 100g as sold Close collaboration with blue chip customer Reduce Replace R Recyc ecycle Ecosolutions by Mondi Functional paper solution: 85% paper with ultra thin functional plastic layer Eliminates aluminium and reduces plastic content New recyclable solution replacing prior complex structure mondi#25Partner with customers for innovation Fit-for-purpose recyclable flexible plastic packaging HIGH MATERIAL EFFICIENCY Replace R Reduce Recyc ecycle Ecosolutions by Mondi WITHOUT COMPROMISING FUNCTIONALITY Primary packaging weight Based on packaging 400 grams of pasta sauce 1 MERA The Petfood Family essential soft brocken 10 Pouch grams Metal can 54 grams 216 Glass jar ココココココココ grams 1 Source: Flexible Packaging Europe 25 25 MAASLANDER MAASLANDER MAASLANDER JONG BELEGE JONG BELEGEN BarrierPack Envelope Form • Protect and preserve products ● Extend shelf-life • Prevent food waste • Mono-materials - design for recycling mondi#26Our cash flow priorities remain unchanged 26 Maintain our strong and stable financial position and investment grade credit metrics Free cash flow priorities Grow through selective capital investment opportunities Support payment of dividends to our shareholders Evaluate growth opportunities through M&A and/or increased shareholder distributions STRATEGIC FLEXIBILITY AND OPTIONS FOR GROWTH mondi#27Strong cash generation through the cycle Cash flow generation € million 5% CAGR (2007 - 2020) 648 538 705 516 648 549 715 796 1,039 1,061 972 1,226 1,215 1,244 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 More than €11 billion generated since listing Cash flow generation based on net cash generated before capital expenditure, acquisitions and disposals of businesses, investment in equity accounted investees and payment of dividends to shareholders 27 mondi#28Investing in our business and distributions to shareholders Cash flow generation since listing € billion Strong cash generation through the cycle (5% CAGR to 2020) Investing in our cost advantaged asset base Taking advantage of opportunities at the right value Returning Divesting non-core and underperforming operations capital to our shareholders in line with our cash flow priorities (7.3) 11.9 Cash flow generation Capital expenditure 0.8 (2.5) Acquisitions Cash flow generation based on net cash generated before capital expenditure, acquisitions and disposals of businesses, investment in equity accounted investees and payment of dividends to shareholders 28 88 (3.1) Disposals Payment of dividends to shareholders 0.2 Increase in net debt mondi#29Strong financial position Net debt € million (net debt) and ratio (net debt to underlying EBITDA) 1.5x 1.4x 1.3x 1.3x 1.3x 29 29 2,220 2018 2,207 2019 1,791 2020 2,039 2,004 H1 2020 H1 2021 -Net debt to underlying EBITDA Signed €750 million revolving credit facility 。 Aligning financing with MAP2030 Extending debt maturity profile Strong liquidity of around €1 billion • Investment grade credit ratings (BBB+ / Baa1) mondi#30Dividends in line with our policy Dividends declared euro cents per share 62 57 76 2.5x 2.4x 2.4x 2016 1. Excludes the 2017 special dividend of 100 euro cents per share 30 2017 2018 57 40 3.0x 2019 Interim dividend ■Final dividend ◇ Dividend cover 60 2.2x 19.00 20.00 2021 2020 Dividend policy unchanged Targeted cover range of 2-3x on average over the cycle mondi#31Sources and definitions 31 Mondi region definitions Europe - Europe including Russia and Turkey Emerging Europe - Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Macedonia, Malta, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey, Ukraine Sources for market position estimates Virgin containerboard (Europe) (including kraft top liner) based on capacity – Fastmarkets RISI and Mondi estimates Containerboard (emerging Europe) based on capacity - Fastmarkets RISI and Mondi estimates - Kraft paper (Global) based on capacity – Fastmarkets RISI and Mondi estimates Corrugated solutions (emerging Europe) based on production - Henry Poole Consulting and Mondi estimates Paper bags (Global & Europe) based on sales volume - Eurosac, Freedonia and Mondi estimates Consumer flexible packaging (Europe) based on sales - PCI Wood Mackenzie Commercial release liner (Europe) based on sales volumes - Alexander Watson Associates and Mondi estimates Extrusion coatings (Europe) based on Mondi estimates Uncoated fine paper (Europe) based on sales volumes (Ilim JV considered separate from IP) - EURO-GRAPH, EMGE, Fastmarkets RISI, Pulp and Paper Products Council, Bumprom/SBO and Mondi estimates Uncoated fine paper (South Africa) based on Mondi estimates Sources for relevant industry cost curves Includes unbleached kraftliner, white top kraftliner, nordic and semi-chemical fluting, recycled containerboard, bleached & unbleached sack kraft paper, UFP (including value added grades) and BHKP Based on delivered cost to Frankfurt except BHKP (delivered to Rotterdam) and UFP – Merebank (delivered to South Africa) - Global capacity for all grades except European capacity for unbleached kraftliner, recycled containerboard and UFP, and South African capacity for UFP - Merebank Source: Fastmarkets RISI and Mondi estimates, Q3 2020 mondi#32Appendix H1 2021 results#3333 333 Delivering strongly – positioned for sustainable growth H1 2021 highlights - - STRONG PERFORMANCE GOOD MOMENTUM • Strong sales volumes and rising prices Effective cost control • Results up sequentially INVESTING THROUGH-THE-CYCLE • Completed acquisition of Olmuksan • Good progress made on capital investment projects • Recently approved Corrugated Packaging expansions SUSTAINABILITY AT THE CENTRE OF OUR STRATEGY ⚫ Mondi Action Plan 2030 (MAP2030) launched Designing for the circular economy ⚫ Innovating with our customers mondi#34Strong performance and momentum Underlying EBITDA and margin € million and % Corrugated Packaging 27.6% 27.6% 24.2% 267 H1 2020 251 H2 2020 Underlying EBITDA margin 268 H1 2021 • Very strong demand - Corrugated Solutions volumes up 15%. Benefiting from: eCommerce, consumer goods growth and recovery in industrial Innovation, strong customer offering and ongoing investment • Containerboard prices up - tight global markets Good progress made in passing through higher paper input costs to box prices Significantly higher input costs, strong cost control Completed Olmuksan acquisition 34 4 mondi#35Leveraging unique platform, growing with customers Underlying EBITDA and margin € million and % Flexible Packaging 35 20.3% 280 H1 2020 19.6% 18.5% 239 H2 2020 Underlying EBITDA margin 271 H1 2021 • Strong volume growth o Paper bags volumes up 11% - growth in all regions o Consumer flexibles benefited from improved product mix and innovations Strong pricing momentum • Price increases implemented in kraft paper (where not fixed by contracts) o Progress made in converting operations to pass on significantly higher input costs Innovating to support our customers' transition to more sustainable packaging mondi#36Demand recovery, good progress on portfolio restructuring Underlying EBITDA and margin € million and % 36 10.6% 45 H1 2020 8.9% 9.3% 35 H2 2020 Underlying EBITDA margin 38 H1 2021 Engineered Materials • Strong recovery in industrial and specialised end-uses. for functional papers and films • Good progress made in personal care components in response to declining volumes as a key product matures o Realigning the portfolio o Restructuring Exciting opportunities to leverage coating technologies to develop innovative sustainable packaging mondi#37Improved trading, gaining market share Underlying EBITDA and margin € million and % 37 32 21.2% 164 H1 2020 14.3% 102 H2 2020 Underlying EBITDA margin 18.4% 149 H1 2021 Uncoated Fine Paper Higher uncoated fine paper volumes, good order books • Market share gains across key regions • UFP price increases implemented in Q2 and early Q3 Significantly higher pulp prices Negative y-o-y impact of maintenance shuts and non-cash forestry fair value mondi#38mondi me

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