Mondi : Full year results for the year ended 31 December 2021

Mondi plc

(Incorporated in England and Wales) (Registered number: 6209386)

LEI: 213800LOZA69QFDC9N34

LSE share code: MNDI ISIN: GB00B1CRLC47

JSE share code: MNP

3 March 2022

Full year results for the year ended 31 December 2021

Highlights

• Strong financial performance
• • Underlying EBITDA of €1,503 million, up €150 million year-on-year (11%), with second half up 29%
  • Profit before tax of €983 million, up 28%
  • Basic underlying earnings per share of 154.0 euro cents, up 19%
  • ROCE up at 16.9%
  • Continued good cash generation and strong balance sheet of 1.2x net debt to underlying EBITDA
  • Recommended full year dividend of 65.0 euro cents per share, up 8%
• Good progress on all elements of our sustainability roadmap, Mondi Action Plan 2030 (MAP2030)
• Successful execution and delivery of key investments
• Strong pipeline of capital investment projects to further capture growth in our packaging markets, building on our leading market positions and long track record of disciplined capital allocation, including €1 billion of expansionary projects approved or under advanced evaluation
• Accelerated climate plans - committed to transition to Net-Zero by 2050, in line with a 1.5°C scenario
• Agreed sale of Personal Care Components business in February 2022 to deliver greater focus
• Well-positionedfor the future, with unique portfolio of leading sustainable packaging solutions, cost-advantaged asset base and strong financial position

Financial summary1

	Year ended	Year ended	Change
	31 December	31 December
€ million, except for percentages and per share measures	2021	2020	%
Group revenue	7,723	6,663	16
Underlying EBITDA1	1,503	1,353	11
Underlying operating profit1	1,064	925	15
Operating profit	1,071	868	23
Profit before tax	983	770	28
Per share measures
Basic underlying earnings per share1 (euro cents)	154.0	129.3	19
Basic earnings per share (euro cents)	155.9	120.0	30
Basic headline earnings per share1 (euro cents)	155.3	123.9	25
Total dividend per share (euro cents)	65.0	60.0	8
Cash generated from operations	1,339	1,485	(10)
Net debt1	1,763	1,791
Underlying EBITDA margin1	19.5%	20.3%
Return on capital employed (ROCE)1	16.9%	15.2%

Notes:

1 The Group presents certain measures of financial performance, position or cash flows that are not defined or specified according to International Financial Reporting Standards (IFRS). These measures, referred to as Alternative Performance Measures (APMs), are defined at the end of the full announcement and where relevant, reconciled to IFRS measures in the notes to the condensed consolidated financial statements (see link to the full announcement below).

Andrew King, Mondi Group Chief Executive Officer, said:

"Mondi delivered strongly in 2021 and we see good opportunity to accelerate growth in sustainable packaging. Underlying EBITDA of €1,503 million was up 11% and ROCE up at 16.9%. We grew our packaging businesses and saw a recovery in uncoated fine paper markets. Our vertical integration, the agility of our operations and collaboration with our

customers ensured we met surging demand at a time when supply chains were under pressure around the world. We implemented price increases across all our businesses and, against a backdrop of rising commodity input costs, we exhibited good cost control. Our focus on safety and protecting the wellbeing of our people remains our priority.

All this cannot be achieved without the dedication, stamina and ongoing commitment of our people. My sincere thanks go to all of my colleagues.

I am particularly proud of how we continue to lead the way in sustainability. We have accelerated our climate plans by committing to transition to Net-Zero by 2050 in line with a 1.5°C scenario, and made strong progress on all elements of MAP2030, our sustainability roadmap for the next 10 years, which we launched in early 2021.

Sustainable packaging continues to be a key priority for our customers and wider society. With our unique product portfolio, technical know-how, expertise in understanding the best material choices and leading innovation capabilities, we are supporting our customers to achieve their environmental goals with circular driven solutions that are sustainable by design.

Our capital investments to generate value accretive growth, enhance our cost competitiveness and drive sustainability benefits continue to deliver. We successfully started up investments in key pulp and paper mills providing incremental total capacity of around 350,000 tonnes when in full operation. Projects are also underway at a number of our converting operations enhancing our production capabilities and product offering to further support our customers.

We continue to explore opportunities to accelerate growth across our packaging businesses supporting our customers and strengthening our leading market positions in structurally growing markets, underpinned by demand for eCommerce and sustainable packaging solutions. We have an ambitious expansionary capital investment programme to further capture this growth. In this context, our pipeline currently includes around €1 billion of expansionary projects already approved or under advanced evaluation, which we anticipate will generate mid-teen returns when in full operation. We continue to actively consider further capital investments for growth in the packaging markets where we operate.

I am pleased we agreed the sale of our Personal Care Components business in February 2022. By simplifying our portfolio, the transaction will enable us to focus on our core packaging and paper businesses and enhance our ability to pursue our strategic priority to grow in sustainable packaging.

Looking forward, we expect to make progress in the year. There are significant geopolitical and macro-economic uncertainties and we anticipate continued inflationary pressures on our cost base. However, we also expect to realise the full benefit of the price increases implemented in 2021 and early 2022, shorter planned maintenance shuts and the contribution from our capital investment programme.

Underpinned by the Group's integrated cost-advantaged asset base, high-performance culture, portfolio of sustainable packaging solutions and the strategic flexibility offered by our strong cash generation and financial position, the Group remains well-placed to deliver sustainably into the future."

Update on Ukraine / Russia

The humanitarian crisis unfolding in Ukraine is of great concern. Our thoughts are with all those impacted by these tragic events, including some of Mondi's employees.

We have significant operations in Russia, representing around 12% of the Group's revenue by location of production in 2021, including our high-margin,cost-competitive, integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar (Komi Republic). Over the last three years our Russian operations have generated around 20% of the Group's underlying EBITDA. Our businesses primarily serve the domestic market and have continued to operate through this time of heightened geopolitical tension. We are actively monitoring this rapidly evolving situation, the international response and the implications for the Group.

Dividend

The Board aims to offer shareholders long-term ordinary dividend growth within a targeted dividend cover range of two to three times on average over the cycle.

Given our strong financial position and confidence in the future of the business, the Board has recommended an increase in the final 2021 dividend to 45.00 euro cents per share. The final dividend, together with the interim dividend, amount to a total dividend for the year of 65.00 euro cents per share, an increase of 8% on the 2020 total dividend.

The final dividend is subject to the approval of the shareholders of Mondi plc at the Annual General Meeting scheduled for 5 May 2022 and, if approved, is payable on 16 May 2022 to shareholders on the register on 8 April 2022.

The proposed final dividend for the year ended 31 December 2021 of 45.00 euro cents per share will be paid in accordance with the following timetable:

Last date to trade shares cum-dividend
JSE Limited	Tuesday 5 April 2022
London Stock Exchange	Wednesday 6 April 2022
Shares commence trading ex-dividend
JSE Limited	Wednesday 6 April 2022
London Stock Exchange	Thursday 7 April 2022
Record date	Friday 8 April 2022

Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository Participants

Last date for DRIP elections to UK Registrar and South African Transfer Secretaries

South African Register

UK Register

Payment Date

Thursday 14 April 2022

Tuesday 19 April 2022

Tuesday 26 April 2022

Monday 16 May 2022

DRIP purchase settlement dates (subject to market conditions and the purchase of shares in the open market)

UK Register	Wednesday 18	May 2022
South African Register	Friday 20	May 2022
Currency conversion date
ZAR/euro	Thursday 3 March 2022
Euro/sterling	Tuesday 3	May 2022

Share certificates on Mondi plc's South African register may not be dematerialised or rematerialised between Wednesday 6 April 2022 and Friday 8 April 2022, both dates inclusive, nor may transfers between the UK and South African registers of Mondi plc take place between Wednesday 30 March 2022 and Friday 8 April 2022, both dates inclusive.

Information relating to the dividend tax to be withheld from 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 Thursday 3 March 2022.

The dividend will be paid from distributable reserves. For further information please see the full announcement (link below).

Short form announcement

This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the full announcement and does not contain full or complete details.

Any investment decision should be based on the full announcement accessible from Thursday 3 March 2022 via the JSE link below and also available on our website at www.mondigroup.com/en/investors/results-and-reports.

The full announcement is available at our registered office and our sponsor's office for inspection, at no charge, during office hours. The full announcement is derived from the Group annual financial statements which have been audited by PricewaterhouseCoopers LLP. The unmodified audit report is available for inspection at the Group's registered office.

Copies of the full announcement may also be requested by email: [e-mail]

The JSE link is as follows: https://senspdf.jse.co.za/documents/2022/jse/isse/MNP/FY2021.pdf

Enquiries

Investors/analysts:
Clara Valera	[phone]
Mondi Group Head of Strategy and Investor Relations
Media:
Kerry Cooper	[phone]
Mondi Group Head of External Communication
Richard Mountain (FTI Consulting)	[phone]

Webcast and conference call details

Please see below details of our webcast and dial-in conference call which will be held at 09:00 (UK) and 11:00 (SA) today.

Dial-in numbers are:

UK	0800 279 6619
South Africa	0800 014 552
Other	[phone]
Conference ID	6106528

A webcast will be available via https://www.mondigroup.com/en/investors/

A presentation will be available to download from the above website 30 minutes before the webcast commences. Questions can be submitted via the dial-in conference call or via the webcast facility. If you wish to ask a question verbally, please connect via the dial-in conference call.

Should you have any issues on the day with accessing the dial-in conference call, please call [phone].

For queries regarding access to the webcast, please e-mail [e-mail] and you will be contacted as soon as possible.

A recording of the presentation will be available on Mondi's website during the afternoon of 3 March 2022.

Editors' notes

Mondi is a global leader in packaging and paper, contributing to a better world by making innovative packaging and paper solutions that are sustainable by design. Our business is integrated across the value chain - from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is at the centre of our strategy and intrinsic in the way we do business. We lead the industry with our customer- centric approach, EcoSolutions, where we ask the right questions to find the most sustainable solution. In 2021, Mondi had revenues of €7.7 billion and underlying EBITDA of €1.5 billion.

Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing on the JSE Limited (MNP). Mondi is a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007.

Sponsor in South Africa: Merrill Lynch South Africa Proprietary Limited t/a BofA Securities.