MONDI PLC: Final Results

21 February 2013 
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 and/or the Disclosure and Transparency and Listing Rules of the United
Kingdom Listing Authority. 
Full year results for the year ended 31 December 2012 
Financial highlights 
* Strong profitability despite challenging start to the year 


      * Supported by excellent operating performance and cost management
      * ROCE of 13.7%, in excess of the Group's through-the-cycle target of 13%
      * Strong cash generation from operations of €845 million
      * Total dividend for the year of 28.0 euro cents per share, up 8%
    Strategic highlights

  * Significant progress with strategic initiatives


      + €1.2 billion spent on acquisitions increasing exposure to higher 
growth 


        packaging segments
       
      + Disposal of interest in non-core Aylesford Newsprint
       
      + Capital employed in packaging businesses now 67% of Group total (57% at
        end of 2011)


   
  * Integration of acquisitions on track 


      * Cost synergies from recent acquisitions now estimated at €30 million per
    annum, up 33%
    Financial Summary
                                   Year     Year             Six      Six       
                                                          months   months       
                                                                                
                               ended 31 ended 31        ended 31 ended 31       
                                                                                
                               December December        December December       
                                                                                

€ million, except for              2012     2011 Change     2012     2011 
Change
percentages and per share                             %                        
%
measures                                                                        
                                                                                

From continuing operations                                                      
                                                                                

Group revenue                     5,807    5,739      1    2,967    2,797      
6
                                                                                

Underlying EBITDA1                  923      964    (4)      487      438     
11
                                                                                

Underlying operating profit1        568      622    (9)      299      268     
12
                                                                                

Underlying profit before tax1       462      512   (10)      245      216     
13
                                                                                

Operating profit                    541      568    (5)      272      213     
28
                                                                                

Profit before tax                   371      457   (19)      148      157    
(6)
                                                                                

Per share measures                                                              
                                                                                

Basic earnings per share -         69.6     71.8    (3)                         

alternative measure2 (€ cents)                                                
                                                                                   

Basic earnings per share from      50.5     57.5   (12)                         

continuing operations (€                                                      
  
cents)                                                                          
                                                                                

Total dividend per share (€        28.0     26.0      8                       
  
cents)                                                                          
                                                                                

Free cash flow per share3 (€       51.3     78.8   (35)                       
  
cents)                                                                          
                                                                                

Cash generated from operations      845      917    (8)                         
                                                                                

Net debt                          1,864      831                                
                                                                                

Group return on capital           13.7%    15.0%                                

employed (ROCE)4                                                                


Notes:

1 The Group presents underlying EBITDA, operating profit, profit before tax and
related per share information as measures which exclude special items in order
to provide a more effective comparison of the underlying financial performance
of the Group between financial reporting periods.

2 The directors have elected to continue to present an alternative, non-IFRS
measure of earnings per share from continuing operations. As more fully set out
in note 8 of the condensed financial statements, the effects of the demerger of
Mpact Limited and the Mondi Limited share consolidation have been adjusted in
the 2011 comparative earnings per share figures to reflect the position as if
the transaction had been completed on 1 January 2011. This is intended to
enable a more useful comparison of underlying earnings per share from
continuing operations, based on the consolidated number of shares. In 2012,
there is no difference between the alternative measure presented and underlying
earnings per share.

3 Free cash flow per share is the net increase in cash and cash equivalents
before the effects of acquisitions and disposals of businesses, changes in net
debt and dividends paid divided by the net number of shares in issue at year
end.

4 ROCE is underlying profit expressed as a percentage of the average capital
employed for the year, adjusted for impairments and spend on strategic projects
which are not yet in operation.

David Hathorn, Mondi Group chief executive, said:

`Mondi delivered a solid financial performance in what remains an uncertain
economic environment. While the early part of the year was particularly
challenging, trading picked up as the year progressed, culminating in a strong
final quarter.

Continued strong profitability resulted in a return on capital employed (ROCE)
of 13.7%, once again above our through-the-cycle target of 13%. Net debt
finished the year at €1,864 million, largely due to the €1.2 billion of
strategic acquisitions in higher growth packaging segments completed during the
year. Our continued strong cash generation and underlying earnings per share of
69.6 euro cents per share has resulted in the directors recommending a final
dividend of 19.1 euro cents per share, bringing the total dividend to 28.0 euro
cents per share for the year, an increase of 8%.

Our focus in the near term is on the integration and optimisation of the recent
acquisitions and successful delivery of the significant capital investment
projects we have initiated over the course of the past year. I am very pleased
to see the progress we have already made in integrating our recent
acquisitions, exemplified by the fact we have revised upwards by 33% our
estimate of expected synergies to €30 million per annum within two years.

Fundamentals for our core segments remain sound, although recently announced
capacity additions by various manufacturers in selected paper grades are a
concern, exacerbated by the prevailing demand softness as Europe remains
affected by the macroeconomic slowdown. However, with the strong finish to the
year, coupled with the expected contribution from the recent acquisitions, we 
remain confident of making progress in the year ahead.'

Contact details

Mondi Group                                                                    


                                                                           
David Hathorn                             +27 11 994 5418                       
                                                                           
Andrew King                               +27 11 994 5415                       
                                                                           
Lora Rossler                              +27 11 994 5400 / +27 83 627 0292     
                                                                           
FTI Consulting                                                                  
                                                                           
Richard Mountain / Sophie McMillan        +44 20 7269 7186 / +44 20 7909 684    
                                      466                                   
                                                                           
Sandra Sowray / Lerato Matsaneng          +27 11 214 2422 / +27 11 214 2407     
Conference call dial-in and audio cast details 
Please see below details of our dial-in conference call and audio cast that
will be held at 09:00 (UK) and 11:00 (SA). 
The conference call dial-in numbers are: 
South Africa 0800 200 648 (toll-free) 
UK Primary 0808 162 4061 (toll-free) 
UK Alternative 0800 917 7042 (toll-free) 
Europe & Other 00800 246 78 700 (toll-free) 
An online audio cast facility will be available via: www.mondigroup.com/
FYResults12. 
The presentation will be available online via the above website address before
the audio cast commences. Questions can be submitted via the dial-in conference
call or by e-mail via the audio cast. 
Should you have any issues on the day with accessing the dial-in conference
call, please call +27 11 535 3600.  
Should you have any issues on the day with accessing the audio cast, please
e-mail mondi@kraftwerk.co.at and you will be contacted immediately. 
An audio recording of the presentation will be available on Mondi's website
during the afternoon of 21 February 2013. 
Editors' notes 
Mondi is an international packaging and paper Group, with production operations
across 30 countries and revenues of €5.8 billion in 2012. The Group's key
operations are located in central Europe, Russia and South Africa and as at the
end of 2012, Mondi employed 25,700 people. 
Mondi Group is fully integrated across the packaging and paper value chain,
from the growing of wood 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 Group 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 has been recognised for its sustainability through its inclusion in the
FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's
Socially Responsible Investment (SRI) Index since 2007. The Group was also
included in the Carbon Disclosure Project's (CDP) Carbon Disclosure Leadership
Index for the third year and in CDP's Carbon Performance Leadership Index
(CPLI) for the first time in 2012. 
Forward-looking statements 
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, plans and
objectives of management for future operations, are forward-looking statements.
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 are based on
numerous assumptions regarding Mondi's present and future business strategies
and the environment in which Mondi will operate in the future. Among the
important factors that could cause Mondi's actual results, performance or
achievements to differ materially from those in the forward-looking statements
include, but are not limited to, those discussed under `Principal risks and
uncertainties'. These forward-looking statements speak only as of the date on
which they are made. Mondi expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in Mondi's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based. 
Overview 
Financial review 
While the first quarter was particularly difficult, characterised by a
continuation of the weak order books seen towards the end of 2011, trading
picked up as the year progressed. Sales volumes recovered into the second
quarter and this, in turn, saw some price recovery in certain of the Group's
major grades going into the second half of the year. The third quarter was
impacted by the traditional European summer slowdown in trading, but a strong
finish to the year, with good volumes and reasonable price levels in Europe,
meant the Group was able to deliver full year underlying operating profit of 
€
568 million, 9% down on the very strong prior year result. 
Fundamentals for each of the Group's core businesses remain good, although
recently announced capacity additions in segments that remain in oversupply are
a concern. While the uncoated fine paper business remains in structural decline
in the mature western European region, prices have remained stable due to
continued supply side contraction in the face of poor profitability among the
more marginal players. Such rationalisation will need to continue in order to
ensure market stability. On the packaging side, fundamentals for growth in the
medium term remain firmly in place with only the kraft paper/industrial bags
value chain in western Europe suffering some secular demand decline, offset by
strong export markets. 
The Group continued to be strongly cash generative with cash generated from
operations of €845 million. Working capital levels were maintained within the
Group's targeted level of 10-12% as a percentage of turnover, closing the year
(based on the annualised sales of Nordenia) at 11.8%. During the year, capital
expenditure amounted to €298 million. 
Net debt at 31 December 2012 was €1,864 million, an increase of €1,033 
million
from 31 December 2011. The increase is attributable to the €1.2 billion of
strategic acquisitions completed during the year (further detailed below). The
acquisitions were financed by the proceeds from an 8-year 3.375% €500 million
Eurobond and from existing borrowing facilities. Excluding the effects of
acquisitions, net debt reduced by €180 million. 
At the underlying earnings per share level, results were down only 3% on the
comparable prior year figure, supported by lower interest charges and a
reduction in the non-controlling interest charge, primarily due to the
acquisition of the remaining minority interest in Mondi Swiecie in the first
half of the year. This strong performance bears testament not only to the
strength of our strategic positioning, but also the unrelenting focus on cost
management and strong operating performance achieved across the Group. 
The Group is proposing to pay a final dividend of 19.1 euro cents per share,
bringing the total dividend for the year to 28.0 euro cents per share, an
increase of 8% on 2011. 
Progress on strategy 
During the year good progress was made in the ongoing process of shifting
Mondi's portfolio to higher growth products. This included €1.2 billion of
acquisitions in the growing corrugated packaging and consumer packaging value
chains and the disposal of the 50% interest in Aylesford Newsprint, which
operates in the structurally challenged newsprint sector. 
Key acquisitions included: 
* Packaging Paper 


          + the acquisition of the remaining minority interest in Mondi Swiecie;
       
      + Mondi Swiecie acquired a combined heat and power generating plant,
        providing the bulk of its electricity requirements and all of its heat
        and steam needs;


   
  * Consumer Packaging 
      + the acquisition of a 99.93% interest in Nordenia; and 
   
  * Fibre Packaging 


          + the acquisition of Duropack's two corrugated packaging plants in
        Germany and the Czech Republic.


   
Over the past year, the share of the Group's capital employed in the packaging
businesses, with typically higher structural growth rates than the graphic
paper grades, has increased from 57% to 67%. 
Following the completion of the Nordenia acquisition and disposal of Aylesford
Newsprint, the Group management and reporting structures were reorganised. The
Europe & International Division has been restructured into four business units,
divided into upstream and downstream activities with a clear separation between
packaging and uncoated fine paper: Packaging Paper, Fibre Packaging, Consumer
Packaging and Uncoated Fine Paper. The remaining Newsprint business, Mondi
Shanduka Newsprint, has been incorporated into the South Africa Division.
Europe & International contributed €538 million to underlying operating 
profit
and the South Africa Division €68 million. Corporate costs remained at 
similar
levels to the previous year. 
Europe & International - Packaging Paper 


                                   Year     Year             Six      Six       
                                                          months   months       
                                                                                
                               ended 31 ended 31        ended 31 ended 31       
                                                                                
                               December December        December December       
                                                                                

€ million                          2012     2011 Change     2012     2011 
Change


                                                  %                        
% 
                                                                             
Segment revenue                   1,896    2,006    (5)      936      943    
(1) 
                                                                             
- of which inter-segment            469      469             220      209        
revenue                                                                          
                                                                             
Underlying EBITDA                   321      392   (18)      171      168      
2 
                                                                             
Underlying operating profit         227      295   (23)      123      122      
1 
                                                                             
Special items                         -     (11)               -     (11)        
                                                                             
Capital expenditure                  89       67              55       47        
                                                                             
Net segment assets                1,466    1,249                                 


                                                                                

ROCE                              17.9%    24.4%                                


Packaging Paper delivered another good financial performance despite the more
challenging trading environment, with a ROCE of 17.9% and underlying operating
profit of €227 million.

The early part of the year was characterised by weak demand, with market
related downtime continuing from the end of 2011 into the first quarter of
2012. Demand improved during the first half, enabling the business to implement
price increases in the virgin containerboard and kraft paper grades, which
became effective during the second half of the year. Sales volumes of
containerboard were similar to those of the previous year whilst volumes of
kraft paper increased as a result of stronger export markets.

Whilst industry wide demand for the various containerboard grades was
marginally lower than the previous year, with growth in the emerging central
European countries only partly offsetting the decline in the more mature
western markets, Mondi increased its volumes by 3% during the year. European
markets for sack kraft paper remained weak with demand below prior year levels.
The sack kraft business, however, continued to benefit from strong export
growth, particularly in Asia and Africa.

In 2012, virgin containerboard pricing was weaker on average than in 2011.
Average benchmark kraftliner prices were 6% lower. However, supply side
contraction coupled with reduced imports from the US resulted in an improved
supply/demand balance with price increases being realised in stages throughout
the second half of 2012. Average benchmark prices in the second half of 2012
for kraftliner were 7% higher than in the first half. European virgin
containerboard markets remain firm in early 2013.

Surplus capacity in recycled containerboard continued to influence pricing and
average benchmark prices were 10% lower than in 2011. After recovering through
the end of the first quarter and into the second quarter from the January 2012
lows, pricing weakened in the second half on lower input costs. Average
benchmark prices in the second half of 2012 were 4% lower than in the first
half. Recent capacity closures coupled with a stable demand environment have
firmed up the recycled containerboard market. As yet, there has been little
impact from the start-up of new capacity in Poland. A price increase of €60/
tonne was announced in January 2013.

Sack kraft paper prices were on average 2-4% lower than in 2011 despite price
increases having been implemented in the third quarter, reflected in average
prices in the second half being around 2% higher than the first half. European
price levels have weakened marginally in early 2013, while pricing in export
markets remains stable.

Packaging Paper benefited from lower input costs particularly in the second
half of the year with lower wood costs in central Europe, and recycled paper
costs being on average 16% lower than in 2011. The acquisition by Mondi Swiecie
of the power and heat generating plant benefited the business with lower costs
and increased green energy credits, although the lower average selling prices
achieved for green energy credits did provide some offset.

The business also benefited significantly from profit improvement initiatives,
which, along with improved productivity, enabled the business to continue to
realise good returns on invested capital.

The containerboard business is expected to benefit from synergies from the
acquisition of the Duropack corrugated packaging plants in Germany and the
Czech Republic, completed in November 2012, primarily through reduced
transportation costs (refer to Europe & International - Fibre Packaging for
more detail).

Europe & International - Fibre Packaging
                                    Year     Year             Six      Six      
                                                             months   months      
                                                                                  
                                  ended 31 ended 31        ended 31 ended 31      
                                                                                  
                                  December December        December December      


                                                                               
€ million                           2012     2011 Change     2012     2011 
Change 
                                                   %                        
% 
                                                                             
Segment revenue                    1,860    1,881    (1)      914      908      
1 
                                                                             
- of which inter-segment              42       33              23       15       
revenue                                                                          
                                                                               
Underlying EBITDA                    168      149     13       88       72     
22 
                                                                             
Underlying operating profit          101       86     17       54       40     
35 
                                                                             
Special items                       (16)      (8)            (16)     (10)       
                                                                               
Capital expenditure                   76       72              48       38       
                                                                               
Net segment assets                   958      866                                
                                                                               
ROCE                               12.5%    11.0%                                
Fibre Packaging realised a 17% increase in underlying operating profit to 
€101
million in 2012. The improvement reflects the benefits of ongoing profit
improvement initiatives and lower input costs. The ROCE of 12.5%, whilst still
below our 13% target, reflects a pleasing improvement on 2011 levels. 
The corrugated packaging business benefited from generally stable pricing and
volumes coupled with lower paper input costs. Market demand for corrugated
packaging products was broadly unchanged in the mature central European markets
whilst pleasing growth continued to be seen in emerging Europe. Average selling
prices in emerging Europe were higher than in 2011 which offset in part the
declines experienced in the more mature markets. 
In line with the Group's strategy to strengthen its leading market position in
corrugated packaging in central and eastern Europe, Mondi acquired two
corrugated box plants in Germany and the Czech Republic consuming 130,000
tonnes of containerboard per annum, and a 105,000 tonne recycled containerboard
mill in the Czech Republic from Duropack GmbH on 5 November 2012. On 19
November 2012, Mondi announced its intention to close the recycled
containerboard mill. The acquisition of the packaging plants is expected to
provide the Group with improved access to these regional markets and generate
logistics synergies from their proximity to the Swiecie containerboard mill in
Poland. Cost synergies are estimated at approximately €10 million per annum, 
up
around one-third from the original estimate at the time of acquisition. After
taking into account the restructuring and closure costs of the containerboard
mill of €3 million, the contribution to underlying operating profit in 2012
from this acquisition was a loss of €2 million. 
Industrial bags benefited from lower paper input costs and productivity and
cost improvement initiatives, which more than offset lower sales volumes and
lower average selling prices. Growth in the CIS, Middle East, North Africa and
Asia regions was positive whilst the western European markets continued to be
weak, particularly in the south. This has necessitated restructuring in
Belgium, Spain and France with restructuring provisions and an asset impairment
charge amounting to €21 million being recognised in special items. 
The coatings business benefited from lower input costs for both paper and resin
as well as from stringent cost management measures and productivity
improvements. These gains were offset in part by weaker demand, particularly
from the automotive and building industries, and consequently lower selling
prices. The new facility in the US continues to ramp up its activities,
particularly in respect of product qualification in higher value markets. 
Europe & International - Consumer Packaging 


                                    Year     Year             Six      Six      
                                                             months   months      
                                                                                  
                                  ended 31 ended 31        ended 31 ended 31      
                                                                                  
                                  December December        December December      


                                                                               
€ million                           2012     2011 Change     2012     2011 
Change 
                                                   %                        
% 
                                                                             
Segment revenue                      502      372     35      352      165    
113 
                                                                             
- of which inter-segment               4        5               3        2       
revenue                                                                          
                                                                               
Underlying EBITDA                     45       37     22       30       17     
76 
                                                                             
Underlying operating profit           19       25   (24)        9       11   
(18) 
                                                                             
Special items                       (11)      (5)             (7)      (5)       
                                                                               
Capital expenditure                   28       15              21        8       
                                                                               
Net segment assets                   872      131                                
                                                                               
ROCE                                6.2%    15.0%                                
                                                                               
Adjusted for non-recurring                                                       
items in 2012 and the effect of                                                  
the disposal of Unterland in                                                     
2011                                                                             
                                                                               
Adjusted underlying EBITDA            54       30     80                         
                                                                               
Adjusted underlying operating         33       20     65                         
profit                                                                           
                                                                               
Adjusted ROCE                      10.8%    16.9%                                
The growth in consumer packaging reflects a significant step in the Group's
strategic development in higher growth markets. Mondi acquired a 99.93%
interest in Nordenia International AG with effect from 1 October 2012. 
Nordenia, as an international supplier of innovative consumer packaging
solutions and hygiene components, enables the Group to develop a leading
consumer packaging business, building on existing deep, long-term customer
relationships. Nordenia enjoys a strong competitive advantage through its
proprietary technology, global presence and a proven track record of innovation
and growth. 
Stripping out the effects of one-off costs and depreciation and amortisation
charges largely related to the acquisition accounting of €18 million detailed
below, the ex-Nordenia business delivered underlying operating profit of €19
million in the fourth quarter, in line with expectations at the time of the
acquisition. 
On acquisition, the Group recognised the net assets of Nordenia at their fair
market value (the details of which are set out in note 12 of the condensed
financial statements) resulting in a higher depreciation and amortisation
charge than recognised in the stand-alone Nordenia business. In the three
months to 31 December 2012, this charge amounted to €4 million. The increase 
in
depreciation and amortisation from 2013 will be approximately €13 million per
year. 
In the fourth quarter a number of one-off costs, amounting to €14 million 
were
recognised. These costs mainly related to the acquisition accounting for the
Nordenia transaction and include the effect of the recognition of short-term
assets at their fair value which were subsequently recognised as an expense in
the income statement. 
Comparability with the prior year is further complicated by the sale of
Unterland in October 2011 which contributed €7 million of EBITDA and €5 
million
of underlying operating profit up to the date of disposal. 
In addition to the full year contribution from Nordenia in 2013, synergies
amounting to approximately €20 million per annum are expected to be realised 
by
the end of 2014, with approximately half the benefit already expected in 2013.
This synergy target exceeds the original estimates at the time of the
acquisition of €15 million per annum, largely due to increased confidence in
the delivery of a number of cost reduction initiatives. 
Consumer Packaging has a strong product pipeline in development. The business
expects its plant in Taicang, China to commence operations towards the end of
2013 with full capacity being reached by 2015. 
Europe & International - Uncoated Fine Paper 


                                    Year     Year             Six      Six      
                                                             months   months      
                                                                                  
                                  ended 31 ended 31        ended 31 ended 31      
                                                                                  
                                  December December        December December      


                                                                               
€ million                           2012     2011 Change     2012     2011 
Change 
                                                   %                        
% 
                                                                             
Segment revenue                    1,466    1,429      3      717      695      
3 
                                                                             
- of which inter-segment              13       20               5        7       
revenue                                                                          
                                                                               
Underlying EBITDA                    300      309    (3)      146      140      
4 
                                                                             
Underlying operating profit          191      205    (7)       91       87      
5 
                                                                             
Special items                          -        2               -        -       
                                                                               
Capital expenditure                   58       61              34       28       
                                                                               
Net segment assets                 1,248    1,283                                
                                                                               
ROCE                               16.7%    16.7%                                
Uncoated Fine Paper again delivered a strong operating performance with
underlying operating profit of €191 million and a ROCE of 16.7%. 
Whilst western European markets remained soft, impacted by both short-term
cyclical and longer-term structural challenges, demand growth in eastern Europe
(excluding the CIS region) was marginally positive. Market demand in Russia was
down on a very strong 2011. In aggregate, Mondi's sales volumes for uncoated
fine paper were on a similar level to that of the previous year. 
In Europe, selling prices were stable throughout the year with average
benchmark European uncoated fine paper prices declining by 1% in the year,
while marginal price increases were achieved in the Russian market. 
Russia entered the World Trade Organisation in August 2012 and, as a
consequence, import duties for uncoated fine paper will reduce by 2.5% per year
until they reach a level of 5% in 2016. Implementation is due to start in 2013.
The reduction in trade duties, coupled with new capacity coming on stream in
both Russia and France, is expected to place some pressure on pricing in the
short to medium term. 
The business benefited from lower input costs, driven by lower pulp costs for
the unintegrated Neusiedler operation, partially offset by higher wood costs in
Russia and generally higher energy costs. Fixed costs were higher, largely due
to a higher depreciation charge offset by ongoing cost optimisation
initiatives. 
South Africa Division 


                                    Year     Year             Six      Six      
                                                             months   months      
                                                                                  
                                  ended 31 ended 31        ended 31 ended 31      
                                                                                  
                                  December December        December December      


                                                                               
€ million                           2012     2011 Change     2012     2011 
Change 
                                                   %                        
% 
                                                                             
Segment revenue                      653      645      1      330      339    
(3) 
                                                                             
- of which inter-segment             109      155              52       64       
revenue                                                                          
                                                                               
Underlying EBITDA                    123      117      5       68       62     
10 
                                                                             
Underlying operating profit           68       63      8       40       36     
11 
                                                                             
Special items                          6        -               -        -       
                                                                               
Capital expenditure                   46       29              30       14       
                                                                               
Net segment assets                   811      860                                
                                                                               
ROCE                                9.9%     8.7%                                
South Africa Division delivered an improved result with underlying operating
profit increasing by 8% to €68 million and ROCE to 9.9%. Whilst still below 
the
Group's target rate, it is pleasing to note the continued improvement in this
business from the lows of 2009. 
Sales volumes increased across all grades, largely on the back of increasing
domestic demand. 
Domestic selling price increases for uncoated fine paper and newsprint were
implemented early in 2012 and prices remained at those levels throughout the
year. Both pulp and white-top kraftliner sales prices decreased on the back of
lower average international benchmark US dollar selling prices. Lower average
selling prices were offset in large part by gains from the weaker rand versus
the US dollar and euro. 
Above inflation wage and energy price increases were mitigated through ongoing
cost management and efficiency improvement initiatives such that overall cost
increases were kept below prevailing inflation rates. 
Good progress is being made in land claims with a further eight claims having
been settled during the year. 
Financial review 
Special items 
Special items for the year, giving rise to a net charge of €91 million before
tax, include the following: 
* Loss of €70 million on disposal of Aylesford Newsprint; 
  * Transaction costs of €11 million attributable to the Nordenia 
acquisition; 


      * Restructuring activities and asset impairment in Fibre Packaging amounting
    to €21 million;
      * Profit of €6 million on sale of land in South Africa Division; and
      * A €5 million gain on settlement of an insurance claim.
    Further detail is provided in note 4 of the condensed financial statements.

Input costs

Wood, recovered fibre and pulp comprise approximately one third of the input
costs of the Group.

Wood costs decreased on average for both hardwood and softwood (1% and 5%
respectively) versus the prior year. On average benchmark European recovered
paper prices in 2012 were around 16% lower than in 2011 with an increase in the
early part of the year followed by a significant drop off in the second half of
the year. Current recovered paper prices are at their lowest levels since March
2010.

Average benchmark euro denominated pulp prices were 8% lower for softwood pulp
and largely unchanged for hardwood pulp versus 2011. Softwood pulp prices
continued to decline over the course of the year whilst average hardwood pulp
prices were 6% higher in the second half of 2012 than the first half.

Energy cost increases for the year were significant, with oil increasing by 7%,
gas by 12% and coal and power by 17% on average. This highlights the importance
of the Group's efforts to increase both energy efficiency and energy
self-sufficiency.

Mondi's well established and relentless pursuit of cost saving initiatives bore
significant benefits across the value chain. These initiatives enabled the
Group to realise significant savings on input costs and fixed cost increases
were kept well within inflation.

Currencies

The weaker rand and a stronger Polish zloty and US dollar against the euro
provided a net positive impact to the Group. Positive translational and
transaction gains were realised in Packaging Paper, Fibre Packaging and the
South Africa Division. Exchange rate volatility was more muted during the year
with most currencies trading within a relatively narrow range against the euro.

Tax

The effective tax rate before special items was 20% - consistent with that of
2011. The low tax rate continues to be a result of profitability in regions
with lower statutory tax rates and the benefits of tax incentives granted in
certain countries in which the Group operates, notably those related to the
major Polish and Russian projects.

Non-controlling interests

Earnings attributable to holders of non-controlling interests declined
significantly from €70 million in the prior year to €35 million, primarily 
as a
result of the acquisition of the non-controlling interest in Mondi Swiecie in
the second quarter of 2012.

Cash flow

Despite the challenging economic environment, EBITDA from continuing operations
of €923 million was only 4% lower than in 2011. The strong cash generation
reflects the contribution in the fourth quarter from the acquisition of
Nordenia and the successful profit improvement and cost management initiatives
throughout the Group.

Mondi generated €845 million in cash from operations (2011: €917 million) 
after
taking into account a net increase in working capital of €80 million. The
increase in working capital includes the settlement of a number of short-term
obligations recognised as part of the acquisition of Nordenia as well as the
cancellation of the factoring arrangements that were in place prior to the
acquisition.

The strong cash flow generation, supplemented by additional borrowings raised
during the year, were applied to fund the Group's capital expenditure of €298
million, its strategic acquisitions and distributions to shareholders.

Capital expenditure

Capital expenditure of €298 million was €35 million higher than the prior 
year.
The capital expenditure to depreciation ratio was 86% including expenditure on
a number of the Group's strategic energy projects.

Mondi's approved energy related investments totalling approximately €140
million announced in early 2012 included a bark boiler at Syktyvkar in Russia,
a steam turbine and recovery boiler economiser at Stambolijski, Bulgaria, a new
recovery boiler at Frantschach, Austria and a new steam turbine at the Richards
Bay mill in South Africa. The benefits of these investments, mainly in the form
of reduced energy costs, improved efficiencies and energy self-sufficiency are
expected to be realised from the end of 2013 as these projects reach
completion. In addition, the decision has recently been taken to commence the 
€
30 million pulp dryer project in Syktyvkar. The project was initially announced
in early 2012 but put on hold pending clarification of various technical
parameters, which have since been resolved.

As announced early in 2012 various additional energy related projects,
amounting to approximately €250 million, were under consideration. In this
regard, the Boards have since approved a further €128 million strategic 
energy
investment at the 51% held Ruzomberok mill. Further options remain under
evaluation.

The Ruzomberok investment, including a new recovery boiler at the mill, will
increase pulp production, reduce the mill's environmental footprint and improve
the overall cost position. The project will also include improvements in
chemical recovery and green energy and heat production during the pulp
production process. Some of the project benefits also result from avoiding
otherwise essential stay-in-business capital expenditure. The project is
expected to be completed in the fourth quarter of 2014, delivering an after-tax
internal rate of return in excess of 40%.

The Boards also approved a €70 million project in the Steti kraft paper mill
which will enable the mill to integrate the remaining open market pulp
production on site by producing additional volumes of bleached kraft paper and
will provide growth opportunities for the kraft business. The project is
expected to be completed in the latter part of 2014 delivering an after tax
internal rate of return of around 20%.

Including the announced strategic projects, capital expenditure is expected to
be approximately 125% of the Group's depreciation charge on average over the
next two years.

Treasury and borrowings

Net debt at the end of the year was €1,864 million, a €1,033 million 
increase
from the prior year end. Gearing increased to 39.3% at the end of 2012, up from
21.5% at the end of 2011, and the net debt to 12 month trailing EBITDA ratio
was 2.0, well within the Group's key financial covenant requirements.

Finance charges of €107 million were similar to the previous year (€111
million) due to a lower effective average interest rate offset by the increased
net debt. The majority of the increase in the Group's net debt occurred in the
last quarter of the year as a consequence of the acquisitions of Nordenia and
the corrugated packaging plants of Duropack in Germany and the Czech Republic.
The debt assumed in the Nordenia acquisition included a high yield bond, which
was recognised on acquisition at its fair market value, with the premium over
book value amortised over the remaining term of the bond. As a consequence, the
effective interest rate recognised in the financial statements approximates the
Group's average borrowing rate, well below the 9.75% coupon applicable to that
bond.

Mondi's public credit ratings, first issued in March 2010, were reaffirmed
during the year at BBB- from Standard and Poor's and Baa3 from Moody's
Investors Service.

The Group actively manages its liquidity risk by ensuring it maintains
diversified sources of funding and debt maturities. During the year the Euro
Medium Term Note (EMTN) programme under which the €500 million, seven year 
bond
was issued in March 2010 was renewed. In September 2012 Mondi successfully
launched an eight year, 3.375% fixed coupon, €500 million bond maturing in 
2020
under the same programme.

At the end of the year the Group's committed debt facilities amounted to €2.6
billion with €762 million undrawn, which provides significant liquidity to 
meet
Mondi's short and medium-term funding requirements. Drawn committed facilities
maturing in 2013 amount to €191 million.

The weighted average maturity of the Eurobonds and committed debt facilities
increased to 4.8 years as at 31 December 2012 compared to 4.3 years a year
earlier.

Principal risks and uncertainties

It is in the nature of Mondi's business that the Group is exposed to risks and
uncertainties which may have an impact on future performance and financial
results, as well as on its ability to meet certain social and environmental
objectives.

On an annual basis, the DLC executive committee and Boards conduct a formal
systematic review of the most significant risks and uncertainties and the
Group's responses to those risks. These risks are assessed against
pre-determined risk tolerance limits, established by the Boards. In addition,
the DLC audit committee reviews each of the principal risks in detail over the
course of the year. Additional risk reviews are undertaken on an ad-hoc basis
for significant investment decisions and when changing business conditions
dictate.

The Boards' risk management framework addresses all significant strategic,
sustainability, financial, operational and compliance-related risks which could
undermine the Group's ability to achieve its business objectives in a
sustainable manner. The risk management framework is designed to be flexible,
to ensure that it remains relevant at all levels of the business given the
diversity of the Group's locations, markets and production processes; and
dynamic, to ensure that it remains current and responsive to changing business
conditions.

The Group believes that it has effective systems and controls in place to
manage the key risks identified below within the risk tolerance levels
established by the Boards.

Competitive environment in which Mondi operates

The industry in which Mondi operates is highly competitive and subject to
significant volatility. New capacity additions are usually in large increments
which, combined with product substitution towards lighter weight products and
alternative packaging solutions and increasing environmental considerations,
have an impact on the supply-demand balance and hence on market prices.

Mondi monitors industry developments in terms of changes in capacity as well as
trends and developments in its own product range and potential substitutes. A
flexible and responsive approach to market and operating conditions and the
Group's strategic focus on low-cost production in growing markets, with
consistent investment in its operating capacity serve to mitigate this risk.

In 2012, the acquisitions of Nordenia and the corrugated packaging plants in
Germany and the Czech Republic, as well as the disposal of Aylesford Newsprint,
further position the Group in its selected strategic growth areas.

Cost and availability of a sustainable supply of raw materials

Fibre (wood, pulp and recovered paper) and resins accounts for approximately
one-third of the Group's input costs. It is the Group's objective to acquire
fibre from sustainable sources and to avoid the use of any illegal or
controversial supply.

All plantations in South Africa and leased/managed forests in Russia are FSC™
certified. With the exception of Stambolijski, Bulgaria, all mills have
chain-of-custody certificates in place, ensuring that the wood procured in 2012
was from non-controversial sources. Stambolijski will be certified to FSC™
chain-of-custody standards in 2013 and currently wood supplies meet Mondi's
minimum wood standards that ensure legality and non-controversial wood sources.
Mondi constantly monitors international market prices for its other raw
materials (recovered paper and resins) and, where possible, have cost
pass-through mechanisms in place with customers to mitigate the risk of input
cost increases. The Group's focus on high-quality, low-cost operations,
relatively high levels of integration and access to its own fibre in Russia and
South Africa further mitigate this risk.

Cost of energy and related input costs

Non-fibre input costs comprise approximately a third of the Group's total
variable costs. Increasing energy costs, and the consequential impact thereof
on both chemical and transport costs, may impact the Group's operating profit
margins.

Active investment in energy related projects have significantly improved energy
self-sufficiency and efficiency in the Group.

Capital intensive operations

Mondi operates large facilities, often in remote locations. The ongoing safety
and sustainable operation of such sites is critical to the success of the
Group.

Mondi's management system ensures ongoing monitoring of all operations to
ensure they meet the requisite standards and performance requirements. The
Group has adequate insurance in place to cover material property damage,
business interruption and liability risks. A structured maintenance programme
is in place under the auspices of the Group technical director. Emergency
preparedness and response procedures are in place and subject to periodic
drills.

The locations in which the Group operates

Mondi operates in a number of countries with differing political, economic and
legal systems. In some countries, such systems are less predictable than in
countries with more developed institutional structures. In addition, economic
risks in certain regions are heightened following the macroeconomic
uncertainties experienced in recent years.

Mondi is invested in a number of geographical locations, with a strategic focus
on low-cost high-growth markets. This geographical diversity and decentralised
management structure utilising local resources in countries in which the Group
operates reduces its exposure to any specific jurisdiction. Mondi continues to
actively monitor and adapt to changes in the environments in which it operates.

Attraction and retention of key skills and talent

The complexity of operations and geographic diversity of the Group is such that
high-quality, experienced employees are required in all locations.

Appropriate reward and retention strategies are in place to attract and retain
talent across the organisation. At more senior levels, these include a share
based incentive scheme.

Employee and contractor safety

Mondi's employees work in potentially dangerous environments where hazards are
ever-present and must be managed. Mondi's objective is a zero harm environment.

The Group engages in extensive safety training sessions, involving employees
and contractors, at all its operations. The Nine Safety Rules to Live By,
applied across the Group, are integral to the safety strategy. Operations
conduct statutory safety committee meetings where management and employees are
represented. A risk-based approach underpins safety and health programmes. All
business units and operations are required to have safety improvement plans in
place. Mondi's Total Recordable Case Rate (TRCR per 200,000 hours worked) was
0.79 (2011: 0.92). Regrettably, there were two fatalities at our operations
during the year - one in Finland and one in Russia.

Environmental footprint

Maintaining the Group's socio-economic license to trade is a strategic
imperative. This encompasses continued access to credible sources of fibre as
described above, protection of High Conservation Value (HCV) areas and
bio-diversity, eco-efficiency of products throughout their lifecycle and the
Group's carbon and energy footprint.

Mondi's approach to product stewardship is based on the Life-Cycle Initiative
set out in the United Nations Environmental Programme (UNEP). The Group's
certified products carry clear and informative labelling to ensure that its
customers are aware of the environmental process controls and health and safety
assessments conducted throughout the life cycles of Mondi's products. In 2012,
no incidents of non-compliance relating to the regulation and voluntary codes,
to which the Group subscribes, concerning product and service information and
labelling were recorded. Mondi does not convert natural forests, riparian
areas, wetlands or protected areas into plantations. HCV areas are identified
and preserved or enhanced, as is biological diversity. In Russia 522,260
hectares have been set aside for conservation (24.8% of our landholding) and
76,398 hectares in South Africa (25% of our landholding). Mondi uses biomass
energy sources such as black liquor as an alternative to fossil fuels at all of
its mills. Some 58% of Mondi's fuel consumption comes from biomass and a number
of operations are completely energy self-sufficient.

Governance risks

The Group operates in a number of legal jurisdictions and non-compliance with
legal and governance requirements in these jurisdictions could expose the Group
to significant risk if not adequately managed.

The Group's legal and governance risk management and compliance will be set out
in the Corporate governance report in the integrated reporting and financial
statements 2012.

Financial risks

Mondi's trading and financing activities expose the Group to financial risks
that, if left unmanaged, could adversely impact current or future earnings.
These risks relate to the currencies in which the Group conducts its
activities, interest rate and liquidity risks as well as exposure to customer
credit risk.

Mondi's approach to financial risk management is described in notes 37 and 38
of the annual financial statements.

Going concern

The Group's business activities, together with the factors likely to affect its
future development, performance and position are set out in the business
review. The financial position of the Group, its cash flows, liquidity position
and borrowing facilities are described in the annual financial statements. In
addition, the risk report sets out the most significant risks facing the Group
and the management and mitigation thereof.

Mondi's geographical spread, product diversity and large customer base mitigate
potential risks of customer or supplier liquidity issues. Ongoing initiatives
by management in implementing profit improvement initiatives which include
plant optimisation, cost-cutting, and restructuring and rationalisation
activities have consolidated the Group's leading cost position in its chosen
markets. Working capital levels and capital expenditure programmes are strictly
monitored and controlled.

The Group meets its funding requirements from a variety of sources as more
fully described in note 10 of the condensed financial statements. The
availability of some of these facilities is dependent on the Group meeting
certain financial covenants all of which have been complied with. Mondi had €
762 million of undrawn committed debt facilities as at 31 December 2012 which
should provide sufficient liquidity in the medium term.

The Group's forecasts and projections, taking account of reasonably possible
changes in trading performance, including an assessment of the current
macroeconomic environment, particularly in Europe, indicate that the Group
should be able to operate well within the level of its current facilities and
related covenants.

The directors have reviewed the overall Group strategy, the budget for 2013 and
subsequent years, considered the assumptions contained in the budget and
reviewed the critical risks which may impact the Group's performance. After
making such enquiries, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern basis
in preparing the integrated report and financial statements.

Dividend

The Boards' aim is to offer shareholders long-term dividend growth within a
targeted dividend cover range of two to three times over the business cycle.
Given the Group's strong financial position notwithstanding the significant
debt-funded acquisitions during the year, and the Boards' stated objective to
increase distributions to shareholders through the ordinary dividend, we are
pleased to recommend an increase in the final dividend.

The boards of Mondi Limited and Mondi plc have recommended a final dividend of
19.1 euro cents per share (2011: 17.75 euro cents per share), payable on 16 May
2013 to shareholders on the register at 19 April 2013. Together with the
interim dividend of 8.9 euro cents per share, paid on 18 September 2012, this
amounts to a total dividend for the year of 28.0 euro cents per share. In 2011,
the total dividend for the year was 26.0 euro cents per share.

Outlook

Mondi's focus in the near term will be the integration and optimisation of the
recent acquisitions and successful delivery of the significant capital
investment projects initiated over the course of the past year. It is pleasing
to see the progress that has already been made in integrating the recent
acquisitions, exemplified by the fact that the Group has revised upwards by 33%
its estimate of expected synergies to €30 million per annum within two years.

Fundamentals for Mondi's core segments remain sound, although recently
announced capacity additions by various manufacturers in selected paper grades
are a concern, exacerbated by the prevailing demand softness as Europe remains
affected by the macroeconomic slowdown. However, with the strong finish to the
year, coupled with the expected contribution from the recent acquisitions, the
Boards remain confident of making progress in the year ahead.

Directors' responsibility statement

These financial statements have been prepared under supervision of the Group
Chief Financial Officer, Andrew King CA (SA), as required by Section 29(1)(e)
(ii) of the Companies Act of South Africa 2008, and have been audited in
compliance with the applicable requirements of the Companies Act of South
Africa 2008 and the UK Companies Act 2006.

The responsibilty statement below has been prepared in connection with the
Group's annual report for the year ended 31 December 2012. Certain parts
thereof are not included within this announcement.

The Boards confirm that to the best of their knowledge:

  * the financial statements, prepared in accordance with the relevant
    financial reporting framework, give a true and fair view of the assets,
    liabilities, financial position and profit and loss of Mondi Limited, Mondi
    plc and the undertakings included in the consolidation taken as a whole;
    and
      * the management report, which is incorporated into the directors' report,
    includes a fair view of the development and performance of the business and
    the position of the Group and the undertakings included in the
    consolidation taken as a whole, together with a description of the
    principal risks and uncertainties that they face.


The Group's combined and consolidated financial statements, and related notes,
were approved by the Boards and authorised for issue on 20 February 2013 and
were signed on its behalf by: 
David Hathorn    Andrew King 
Director         Director 
20 February 2013 20 February 2013 
Audited financial information 
The combined and consolidated financial statements for the year ended 31
December 2012 have been audited by the Group's auditors, Deloitte LLP and
Deloitte & Touche. Their unqualified audit reports are available for inspection
at the Group's registered offices. 
Condensed combined and consolidated income statement
for the year ended 31 December 2012 


                                               2012                    2011     
                                                                                    


€ million                     Notes  Before Special   After  Before Special   
After 
                                special   items special special   items 
special 
                                  items (note 4)  items   items (note 4)  
items 


                                                                                
                                                                                
    Continuing operations                                                           
                                                                                    


Group revenue                     3   5,807       -   5,807   5,739       -   
5,739 
                                                                             
Materials, energy and               (3,049)       - (3,049) (2,998)       - 
(2,998)
consumables used                                                                 
                                                                                 
Variable selling expenses             (523)       -   (523)   (511)       -   
(511) 
                                                                             
Gross margin                          2,235       -   2,235   2,230       -   
2,230 
                                                                             
Maintenance and other                 (279)       -   (279)   (272)       -   
(272)
indirect expenses                                                                
                                                                                 
Personnel costs                       (840)    (16)   (856)   (808)     (4)   
(812) 
                                                                             
Other net operating expenses          (193)    (10)   (203)   (186)     (2)   
(188) 
                                                                             
Depreciation, amortisation            (355)     (1)   (356)   (342)    (48)   
(390)
and impairments                                                                  
                                                                                 
Operating profit/(loss)           3     568    (27)     541     622    (54)     
568 
                                                                             
Non-operating special items       4       -    (64)    (64)       -     (1)     
(1) 
                                                                             
Net income from associates                1       -       1       1       -     
  1 
                                                                             
Total profit/(loss) from                569    (91)     478     623    (55)     
568
operations and associates                                                        
                                                                                 
Net finance costs                     (107)       -   (107)   (111)       -   
(111) 
                                                                             
Investment income                        10       -      10      30       -     
 30 
                                                                             
Foreign currency losses                 (2)       -     (2)       -       -     
  - 
                                                                             
Finance costs                         (115)       -   (115)   (141)       -   
(141) 
                                                                             
Profit/(loss) before tax                462    (91)     371     512    (55)     
457 
                                                                             
Tax (charge)/credit               5    (91)     (1)    (92)   (102)       2   
(100) 
                                                                             
Profit/(loss) from continuing           371    (92)     279     410    (53)     
357
operations                                                                       
                                                                                 
Discontinued operation            6                       -                     
 43 
                                                                             
Profit from discontinued                                                        
 14
operation                                                                        
                                                                                 
Net gain on distribution of                                                     
 29
discontinued operation                                                           
                                                                                 
Profit for the financial year                           279                     
400 


                                                                                
    Attributable to:                                                                
                                                                                    


Non-controlling interests                                35                     
 70 
                                                                             
Equity holders of the parent                            244                     
330
companies                                                                        


                                                                                    
    Earnings per share (EPS) for                                                    
    profit attributable to equity                                                   
    holders of the parent                                                           
    companies                                                                       
                                                                                    
    From continuing operations                                                      
                                                                                    


Basic EPS (€ cents)               7                    50.5                   
 57.5 
                                                                             
Diluted EPS (€ cents)             7                    50.3                   
 56.8 
                                                                             
Basic underlying EPS (€           7                    69.6                   
 68.1
cents)                                                                           
                                                                                 
Diluted underlying EPS (€         7                    69.3                   
 67.3
cents)                                                                           


                                                                                    
    From continuing and                                                             
    discontinued operations                                                         
                                                                                    


Basic EPS (€ cents)               7                    50.5                   
 66.1 
                                                                             
Diluted EPS (€ cents)             7                    50.3                   
 65.3 
                                                                             
Basic headline EPS (€ cents)      7                    63.4                   
 69.9 
                                                                             
Diluted headline EPS (€           7                    63.1                   
 69.1
cents)                                                                           
                                                                                 

Condensed combined and consolidated statement of comprehensive income
for the year ended 31 December 2012 
€ million                                                        2012      
2011 
                                                                           
Profit for the financial year                                     279       400 
                                                                           
Other comprehensive income/(expense):                                           
                                                                           
Items that may subsequently be reclassified to the                             
combined and consolidated income statement:                                     
                                                                           
Effect of cash flow hedges                                          2        12 
                                                                           
Gains on available-for-sale investments                             1         - 
                                                                           
Exchange differences on translation of foreign                     49     (196)
operations                                                                      
                                                                           
Share of other comprehensive income of associates                   -       (1) 
                                                                           
Tax effect thereof                                                  -       (4) 
                                                                           
Items that will not subsequently be reclassified to the                        
combined and consolidated income statement:                                     
                                                                           
Actuarial losses on post-retirement benefit schemes              (61)      (18) 
                                                                           
Surplus restriction on post-retirement benefit schemes             26       (3) 
                                                                           
Tax effect thereof                                                  8         4 
                                                                           
Other comprehensive income/(expense) for the financial             25     (206)
year, net of tax                                                                
                                                                           
Total comprehensive income for the financial year                 304       194 
                                                                           
Attributable to:                                                                
                                                                           
Non-controlling interests                                          42        43 
                                                                           
Equity holders of the parent companies                            262       151 
                                                                            
Condensed combined and consolidated statement of financial position
as at 31 December 2012 
€ million                                               Notes     2012     
2011 
                                                                           
Intangible assets                                                  695      238 
                                                                           
Property, plant and equipment                                    3,706    3,377 
                                                                           
Forestry assets                                                    311      297 
                                                                           
Investments in associates                                            6       10 
                                                                           
Financial asset investments                                         27       33 
                                                                           
Deferred tax assets                                                 10        5 
                                                                           
Retirement benefits surplus                                11        -        8 
                                                                           
Derivative financial instruments                                     -        3 
                                                                           
Total non-current assets                                         4,755    3,971 
                                                                           
Inventories                                                        779      637 
                                                                           
Trade and other receivables                                      1,007      829 
                                                                           
Current tax assets                                                  10        6 
                                                                           
Financial asset investments                                          1        1 
                                                                           
Cash and cash equivalents                                           56      191 
                                                                           
Derivative financial instruments                                     4       10 
                                                                           
Assets held for sale                                                 2        - 
                                                                           
Total current assets                                             1,859    1,674 
                                                                           
Total assets                                                     6,614    5,645 
                                                                           
Short-term borrowings                                      10    (281)    (286) 
                                                                           
Trade and other payables                                       (1,025)    (891) 
                                                                           
Current tax liabilities                                           (66)     (78) 
                                                                           
Provisions                                                        (67)     (43) 
                                                                           
Derivative financial instruments                                   (4)      (8) 
                                                                           
Total current liabilities                                      (1,443)  (1,306) 
                                                                           
Medium and long-term borrowings                            10  (1,640)    (737) 
                                                                           
Retirement benefits obligation                             11    (253)    (202) 
                                                                           
Deferred tax liabilities                                         (344)    (310) 
                                                                           
Provisions                                                        (33)     (35) 
                                                                           
Derivative financial instruments                                   (1)        - 
                                                                           
Other non-current liabilities                                     (24)     (20) 
                                                                           
Total non-current liabilities                                  (2,295)  (1,304) 
                                                                           
Total liabilities                                              (3,738)  (2,610) 
                                                                           
Net assets                                                       2,876    3,035 
                                                                           
Equity                                                                          
                                                                           
Ordinary share capital and stated capital                          542      542 
                                                                           
Retained earnings and other reserves                             2,030    2,044 
                                                                           
Total attributable to equity holders of the parent               2,572    2,586
companies                                                                       
                                                                           
Non-controlling interests in equity                                304      449 
                                                                           
Total equity                                                     2,876    3,035 
                                                                            
The Group's combined and consolidated financial statements, and related notes,
were approved by the Boards and authorised for issue on 20 February 2013 and
were signed on its behalf by: 
David Hathorn  Andrew King 
Director       Director 
Mondi Limited company registration number: 1967/013038/06 
Mondi plc company registered number: 6209386 
Condensed combined and consolidated statement of cash flows
for the year ended 31 December 2012 
€ million                                               Notes     2012     
2011 
                                                                           
Cash generated from operations                            15a      845      917 
                                                                           
Dividends from associates                                            1        2 
                                                                           
Dividends from other investments                                     1        - 
                                                                           
Income tax paid                                                  (107)     (85) 
                                                                           
Net cash generated from operating activities                       740      834 
                                                                           
Cash flows from investing activities                                            
                                                                           
Investment in property, plant and equipment                 3    (298)    (263) 
                                                                           
Investment in intangible assets                                    (9)      (5) 
                                                                           
Investment in forestry assets                                     (60)     (42) 
                                                                           
Investment in financial asset investments                          (7)     (13) 
                                                                           
Proceeds from the disposal of property, plant and                   15        9
equipment and intangible assets                                                 
                                                                           
Proceeds from the sale of financial asset investments                4        8 
                                                                           
Acquisition of subsidiaries, net of cash and cash                (381)     (12)
equivalents                                                                     
                                                                           
Acquisition of associates, net of cash and cash                      -      (2)
equivalents                                                                     
                                                                           
Proceeds from the disposal of businesses, net of cash             (16)       17
and cash equivalents                                                            
                                                                           
Disposal of discontinued operation's cash and cash                   -     (38)
equivalents                                                                     
                                                                           
Loan repayments from related parties                                 9        - 
                                                                           
Loan repayments from/(advances to) external parties                 16      (1) 
                                                                           
Interest received                                                    3        9 
                                                                           
Other investing activities                                         (1)        2 
                                                                           
Net cash used in investing activities                            (725)    (331) 
                                                                           
Cash flows from financing activities                                            
                                                                           
Repayment of short-term borrowings                        15c    (132)    (135) 
                                                                           
Proceeds from medium and long-term borrowings             15c      614      123 
                                                                           
Repayment of medium and long-term borrowings              15c     (65)    (127) 
                                                                           
Interest paid                                                     (92)    (106) 
                                                                           
Dividends paid to equity holders of the parent                   (128)    (126)
companies                                                                       
                                                                           
Purchases of treasury shares                                      (34)     (12) 
                                                                           
Dividends paid to non-controlling interests                       (29)     (43) 
                                                                           
Non-controlling interests bought out                       13    (298)      (1) 
                                                                           
Net realised (loss)/gain on cash and asset management              (9)        9
swaps                                                                           
                                                                           
Other financing activities                                           -      (1) 
                                                                           
Net cash used in financing activities                            (173)    (419) 
                                                                           
Net (decrease)/increase in cash and cash equivalents             (158)       84 
                                                                           
Cash and cash equivalents at beginning of year1                    117       24 
                                                                           
Cash movement in the year                                 15c    (158)       84 
                                                                           
Effects of changes in foreign exchange rates              15c        4        9 
                                                                           
Cash and cash equivalents at end of year1                         (37)      117 
                                                                            
Note: 
1 Cash and cash equivalents include overdrafts and cash flows from disposal
groups and are reconciled to the combined and consolidated statement of
financial position in note 15b. 
Condensed combined and consolidated statement of changes in equity
for the year ended 31 December 2012 
€ million             Combined Retained     Other        Total Non-controlling  Total 
                     share earnings reserves2 attributable       interests 
equity 


                       capital                       to equity                  
     
                           and                      holders of                  
     
                        stated                      the parent                  
     
                      capital1                       companies                  
     
                                                                                


 
At 1 January 2011          646    1,916       201        2,763             461  
3,224 
                                                                             
 
Total comprehensive          -      330     (179)          151              43  
  194
income for the year                                                              


     
                                                                                


 
Dividends paid               -    (126)         -        (126)            (43)  
(169) 
                                                                             
 
Effect of dividend in    (104)    (101)         -        (205)               -  
(205)
specie distributed                                                               
 
(see note 6)                                                                     


     
                                                                                


 
Issue of shares under        -       12      (12)            -               -   
-
employee share                                                                   
 
schemes                                                                          


     
                                                                                


 
Purchases of treasury        -     (12)         -         (12)               -  
 (12)
shares                                                                           


     
                                                                                


 
Disposal of treasury         -        4         -            4               -   
4
shares                                                                           


     
                                                                                


 
Disposal of                  -        -       (5)          (5)             (6)  
 (11)
discontinued                                                                     
 
operation (see note                                                              
 
6)                                                                               


     
                                                                                


 
Disposal of                  -        -       (1)          (1)               -  
  (1)
businesses                                                                       


     
                                                                                


 
Non-controlling              -        5         -            5             (6)  
  (1)
interests bought out                                                             


     
                                                                                


 
Reclassification             -       13      (13)            -               -   


    -
                                                                                


 
Other                        -        -        12           12               -   
12 
                                                                             
 
At 31 December 2011        542    2,041         3        2,586             449  
3,035 
                                                                             
 
Total comprehensive          -      244        18          262              42  
  304
income for the year                                                              


     
                                                                                


 
Dividends paid               -    (128)         -        (128)            (29)  
(157) 
                                                                             
 
Issue of shares under        -        9       (9)            -               -   
-
employee share                                                                   
 
schemes                                                                          


     
                                                                                


 
Purchases of treasury        -     (34)         -         (34)               -  
 (34)
shares                                                                           


     
                                                                                


 
Disposal of                  -        -        15           15               -   
15
businesses (see note                                                             
 
14)                                                                              


     
                                                                                


 
Non-controlling              -    (141)         -        (141)           (157)  
(298)
interests bought out                                                             


     
                                                                                


 
Reclassification             -     (12)        12            -               -   


    -
                                                                                


 
Other                        -        2        10           12             (1)   
11 
                                                                             
 
At 31 December 2012        542    1,981        49        2,572             304  
2,876 
                                                                             


     

Notes:

1 In August 2011, Mondi Limited's par value shares were converted by special
resolution to shares with no par value. As a result Mondi Limited's share
capital and share premium were combined into a stated capital account. The
share consolidation described in notes 6 and 7 had no impact on the stated
capital and share capital of Mondi Limited and Mondi plc respectively.

2 Other reserves are analysed further below.
                                                      Other reserves1           
      
                                                                                


  
€ million             Share-based  Cumulative    Cash Post-retirement 
Statutory  Total 


                          payment translation    flow        benefits reserves2 
      
                          reserve  adjustment   hedge         reserve           
      
                                      reserve reserve                           
      
                                                                                


  
At 1 January 2011              17        (31)    (10)            (40)       265  
201 
                                                                             
  
Total comprehensive             -       (171)       8            (16)         - 
 (179)
income for the year                                                              


      
                                                                                


  
Mondi share schemes'           12           -       -               -         -  
12
charge                                                                           


      
                                                                                


  
Issue of shares under        (12)           -       -               -         - 
  (12)
employee share                                                                   
  
schemes                                                                          


      
                                                                                


  
Disposal of                     -         (5)       -               -         -  
(5)
discontinued                                                                     
  
operation (see note                                                              
  
6)                                                                               


      
                                                                                


  
Disposal of                     -         (1)       -               -         -  
(1)
businesses                                                                       


      
                                                                                


  
Reclassification                -           -       -               -      (13) 
  (13) 
                                                                             
  
At 31 December 2011            17       (208)     (2)            (56)       252  


     3
                                                                                


  
Total comprehensive             -          42       2            (27)         1  
18
income for the year                                                              


      
                                                                                


  
Mondi share schemes'           10           -       -               -         -  
10
charge                                                                           


      
                                                                                


  
Issue of shares under         (9)           -       -               -         -  
(9)
employee share                                                                   
  
schemes                                                                          


      
                                                                                


  
Disposal of                     -          15       -               -         -  
15
businesses (see note                                                             
  
14)                                                                              


      
                                                                                


  
Reclassification                -           -       -              12         -  


    12
                                                                                


  
At 31 December 2012            18       (151)       -            (71)       253  


    49
                                                                                
      

Notes:

1 All movements in other reserves are disclosed net of non-controlling
interests. The movement in non-controlling interests as a direct result of the
movement in other reserves for the year ended 31 December 2012 was an increase
in non-controlling interests related to total comprehensive income for the year
of €7 million (2011: decrease of €27 million).

2 Statutory reserves consist of the merger reserve of €259 million (2011: €
259 million) and other sundry reserves in deficit of €6 million (2011: 
deficit
of €7 million).

Notes to the condensed combined and consolidated financial statements
for the year ended 31 December 2012

1 Basis of preparation

Basis of preparation

The Group has two separate legal parent entities, Mondi Limited and Mondi plc,
which operate under a dual listed company (DLC) structure. The substance of the
DLC structure is such that Mondi Limited and its subsidiaries, and Mondi plc
and its subsidiaries, operate together as a single economic entity through a
sharing agreement, with neither parent entity assuming a dominant role.
Accordingly, Mondi Limited and Mondi plc are reported on a combined and
consolidated basis as a single reporting entity.

The condensed combined and consolidated financial information included in this
preliminary announcement has been prepared in accordance with the measurement
and recognition criteria of International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB) and contains
the information required by IAS 34, `Interim Financial Reporting'. The Group
has also complied with the South African Institute of Chartered Accountants
Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Reporting Pronouncements as issued by the Reporting Standards Council
of South Africa. There are no differences for the Group in applying IFRS as
issued by the IASB and IFRS as adopted by the European Union (EU) and therefore
the Group also complies with Article 4 of the EU IAS Regulation. The combined
and consolidated financial statements have been prepared on a going concern
basis as discussed in the business review, under the heading `Going concern'.

The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2012 or 2011 but is derived
from those accounts. Statutory accounts for 2011 have been delivered to the
registrar of companies, and those for 2012 will be delivered in due course. The
auditors have reported on those accounts; their reports were (i) unqualified,
(ii) did not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and (iii) did not
contain a statement under section 498 (2) or (3) of the UK Companies Act
2006. Copies of their unqualified auditors' reports are available for
inspection at the Mondi Limited and Mondi plc registered offices.

2 Accounting policies

The same accounting policies, methods of computation and presentation have been
followed in the preparation of the combined and consolidated financial
statements as were applied in the preparation of the Group's annual financial
statements for the year ended 31 December 2011.

3 Operating segments

Identification of the Group's externally reportable operating segments

The Group's externally reportable segments reflect the internal reporting
structure of the Group, which is the basis on which resource allocation
decisions are made by management in the pursuit of strategic objectives. The
Group operates under two primary geographic regions reflecting its South
African activities and assets, and its international, principally European,
activities and assets. The broad European region is further split by product
segments reflecting the management structure of the Group.

Following the completion of the acquisition of Nordenia International AG
(Nordenia) on 1 October 2012 (refer note 12) the Europe & International
business was reorganised to comprise four operating segments: Packaging Paper,
Fibre Packaging, Consumer Packaging and Uncoated Fine Paper. Furthermore, the
disposal of Aylesford Newsprint on 2 October 2012 (refer note 14) resulted in
the previously reported Newsprint segment no longer meeting any of the
quantitative thresholds required for classification as a separate operating
segment. The remaining newsprint joint venture, Mondi Shanduka Newsprint, has
accordingly been incorporated into the South Africa Division due to
similarities in geographical location, production processes and the integrated
nature of the production facilities. The Group's segmental information for the
year ended 31 December 2011 has been restated to reflect these reorganisations.

Product revenues

The material product types from which the Group's externally reportable
segments derive both their internal and external revenues are presented as
follows:

Operating segments                      Revenues1                              


                                                                           
Europe & International                                                          
                                                                           
Packaging Paper                         - Packaging paper                       
                                                                           
Fibre Packaging                         - Fibre packaging products              
                                                                           
Consumer Packaging                      - Consumer packaging products           
                                                                           
Uncoated Fine Paper                     - Uncoated fine paper                   


                                                                               
                                        - Pulp                                 
                                                                               
                                        - Newsprint                            


                                                                           
South Africa Division                   - Uncoated fine paper                   


                                                                               
                                        - Pulp                                 
                                                                               
                                        - Packaging paper                      
                                                                               
                                        - Newsprint2                           

Notes:

1 Revenues are generated from both internal and external sales. The Group
operates a vertically-integrated structure in order to benefit from economies
of scale and to more effectively manage the risk of adverse price movements in
key input costs. Internal revenues are therefore generated across the supply
chain.

2 South Africa Division generates newsprint revenue from external sales only.

Measurement of operating segment revenues, profit and loss, assets and
non-current non-financial assets

Management has regard to certain operating segment measures in making resource
allocation decisions and monitoring segment performance. The operating segment
measures required to be disclosed adhere to the recognition and measurement
criteria presented in the Group's accounting policies. In addition, the Group
has presented certain non-IFRS measures by segment to supplement the user's
understanding. All intra-group transactions are conducted on an arm's length
basis.

The Group's measure of net segment assets includes the allocation of retirement
benefits surpluses and deficits on an appropriate basis. The measure of segment
results exclude, however, the financing effects of the Group's defined benefit
pension plans. In addition, the Group's measure of net segment assets does not
include an allocation for derivative assets and liabilities, non-operating
receivables and payables and assets held for sale and associated liabilities.
The measure of segment results includes the effects of certain movements in
these unallocated balances.

The Group's geographic analysis is presented on the following level:

  * continental; or
      * sub-continental; or
      * by individual country (if greater than 10% of the Group total).


There has been no change in the basis of measurement of segment profit and loss
in the financial year. 
Operating segment revenue 


                                                             (Restated)         
                                                                                
                                      2012                         2011         
                                                                                

€ million                 Segment Internal External  Segment   Internal 
External


                      revenue revenue1 revenue2  revenue   revenue1 
revenue2 
                                                                             
Europe & International                                                           
                                                                             
Packaging Paper             1,896    (469)    1,427    2,006      (469)    
1,537 
                                                                             
Fibre Packaging             1,860     (42)    1,818    1,881       (33)    
1,848 
                                                                             
Consumer Packaging            502      (4)      498      372        (5)      
367 
                                                                             
Uncoated Fine Paper         1,466     (13)    1,453    1,429       (20)    
1,409 
                                                                             
Intra-segment               (528)      528        -    (526)        526        - 
elimination                                                                      
                                                                             
Total Europe &              5,196        -    5,196    5,162        (1)    
5,161
International                                                                    
                                                                             
South Africa Division         653    (109)      544      645      (155)      
490 
                                                                             
Segments total              5,849    (109)    5,740    5,807      (156)    
5,651 
                                                                             
Unallocated:                                                                     
                                                                             
Disposed operation             67        -       67       88          -       
88 
                                                                             
Inter-segment               (109)      109        -    (156)        156        - 
elimination                                                                      
                                                                             
Group total                 5,807        -    5,807    5,739          -    
5,739 
                                                                             
Notes: 
1 Inter-segment transactions are conducted on an arm's length basis. 
2 The description of each business segment reflects the nature of the main
products they sell. In certain instances the business segments sell minor
volumes of other products and due to this reason the external segment revenues
will not necessarily reconcile to the external revenues by type of product
presented below. 
External revenue by product type 
                                                                  
(Restated) 
                                                                             
€ million                                                        2012       
2011 
                                                                             
Products                                                                         
                                                                             
Fibre packaging products                                        1,785      
1,810 
                                                                             
Packaging paper                                                 1,393      
1,438 
                                                                             
Uncoated fine paper                                             1,355      
1,337 
                                                                             
Consumer packaging products                                       498        
367 
                                                                             
Pulp                                                              276        
263 
                                                                             
Newsprint                                                         233        
251 
                                                                             
Other1                                                            267        
273 
                                                                             
Group total                                                     5,807      
5,739 
                                                                             
Note: 
1 Revenues derived from product types that are not individually material are
classified as other. 
External revenue by location of customer 
€ million                                                        2012     
2011 
                                                                          
Revenue                                                                        
                                                                          
Africa                                                                         
                                                                          
South Africa1                                                     405      303 
                                                                          
Rest of Africa                                                    236      268 
                                                                          
Africa total                                                      641      571 
                                                                          
Western Europe                                                                 
                                                                          
Germany                                                           791      810 
                                                                          
United Kingdom1                                                   271      278 
                                                                          
Rest of western Europe                                          1,445    1,529 
                                                                          
Western Europe total                                            2,507    2,617 
                                                                          
Emerging Europe                                                 1,180    1,144 
                                                                          
Russia                                                            592      556 
                                                                          
North America                                                     270      243 
                                                                          
South America                                                      41       30 
                                                                          
Asia and Australia                                                576      578 
                                                                          
Group total                                                     5,807    5,739 
                                                                           
Note: 
1 These revenues, which total €676 million (2011: €581 million), are
attributable to the countries in which the Group's parent entities are
domiciled. 
External revenue by location of production 
€ million                                                        2012     
2011 
                                                                          
Revenue                                                                        
                                                                          
Africa                                                                         
                                                                          
South Africa1                                                     652      617 
                                                                          
Rest of Africa                                                      8       10 
                                                                          
Africa total                                                      660      627 
                                                                          
Western Europe                                                                 
                                                                          
Austria                                                         1,025    1,110 
                                                                          
United Kingdom1                                                   120      147 
                                                                          
Rest of western Europe                                          1,179    1,090 
                                                                          
Western Europe total                                            2,324    2,347 
                                                                          
Emerging Europe                                                                
                                                                          
Poland                                                            766      794 
                                                                          
Rest of emerging Europe                                         1,086    1,075 
                                                                          
Emerging Europe total                                           1,852    1,869 
                                                                          
Russia                                                            729      703 
                                                                          
North America                                                     196      159 
                                                                          
Asia and Australia                                                 46       34 
                                                                          
Group total                                                     5,807    5,739 
                                                                           
Note: 
1 These revenues, which total €772 million (2011: €764 million), are
attributable to the countries in which the Group's parent entities are
domiciled. 
There are no external customers which account for more than 10% of the Group's
total external revenue. 
Operating profit from continuing operations before special items 
                                                                  
(Restated) 
                                                                             
€ million                                                        2012       
2011 
                                                                             
Europe & International                                                           
                                                                             
Packaging Paper                                                   227        
295 
                                                                             
Fibre Packaging                                                   101         
86 
                                                                             
Consumer Packaging                                                 19         
25 
                                                                             
Uncoated Fine Paper                                               191        
205 
                                                                             
Total Europe & International                                      538        
611 
                                                                             
South Africa Division                                              68         
63 
                                                                             
Corporate & other businesses                                     (33)       
(33) 
                                                                             
Segments total                                                    573        
641 
                                                                             
Disposed operation                                                (5)       
(19) 
                                                                             
Operating profit from continuing operations before special        568        
622
items                                                                            
                                                                             
Special items (see note 4)                                       (91)       
(55) 
                                                                             
Net income from associates                                          1          
1 
                                                                             
Net finance costs                                               (107)      
(111) 
                                                                             
Group profit from continuing operations before tax                371        
457 
                                                                             
Significant components of operating profit from continuing operations before
special items 
The DLC executive committee uses EBITDA as a measure of cash flow, coupled with
the depreciation and amortisation charge, for making decisions about, amongst
others, allocation of funds for capital investment. 
                                                     Depreciation, 
amortisation 
                                                                             
                                       EBITDA                      and 
impairments1 
                                                                             
                                              (Restated)                 
(Restated) 
                                                                             
 € million                               2012       2011          2012        
 2011 


                                                                                
    Europe & International                                                          
                                                                                    


Packaging Paper                           321        392            94          
 97 
                                                                             
Fibre Packaging                           168        149            67          
 63 
                                                                             
Consumer Packaging                         45         37            26          
 12 
                                                                             
Uncoated Fine Paper                       300        309           109          
104 


                                                                                
                                                                                    
                                                                                    


Total Europe & International              834        887           296          
276 
                                                                             
South Africa Division                     123        117            55          
 53 
                                                                             
Corporate & other businesses             (32)       (32)             1          
  1 
                                                                             
Segments total                            925        972           352          
330 


                                                                                
    Unallocated:                                                                    
                                                                                    


Disposed operation                        (2)        (8)             3          
 12 
                                                                             
Group total from continuing               923        964           355          
342
operations                                                                       
                                                                                 

Note: 
1 Excluding impairments included in special items (see note 4). 
                                                             Green     
energy 
                                                                             
                                                               sales        
and 
                                                                             
                                       Operating      lease disposal  
emissions 


                                                                    of          
                                                                                  
                                             charges             credits          
                                                                                  


                                                 (Restated)          
(Restated) 
                                                                             
€ million                                     2012       2011     2012       
2011 
                                                                             
Europe & International                                                           
                                                                               
Packaging Paper                                 13         32       67         
79 
                                                                             
Fibre Packaging                                  8          9        -          
- 
                                                                             
Consumer Packaging                               3          1        -          
- 
                                                                             
Uncoated Fine Paper                              7          7        9          
5 
                                                                             
Total Europe & International                    31         49       76         
84 
                                                                             
South Africa Division                            5          6        -          
- 
                                                                             
Corporate & other businesses                     2          1        -          
- 
                                                                             
Group total from continuing operations          38         56       76         
84 
                                                                             
Reconciliation of total profit from operations and associates to EBITDA 
€ million                                                        2012     
2011 
                                                                          
Total profit from operations and associates                       478      568 
                                                                          
Special items (excluding associates) (see note 4)                  91       55 
                                                                          
Depreciation, amortisation and impairments1                       355      342 
                                                                          
Share of associates' net income                                   (1)      (1) 
                                                                          
EBITDA                                                            923      964 
                                                                           
Note: 
1 Excluding impairments included in special items (see note 4). 
Operating segment assets 
                                                                  
(Restated) 
                                                                             
                                                    2012                
2011 
                                                                             
€ million                                  Segment       Net  Segment        
Net 
                                       assets1   segment  assets1    
segment 
                                                  assets              
assets 
                                                                             
Europe & International                                                           
                                                                             
Packaging Paper                              1,829     1,466    1,593      
1,249 
                                                                             
Fibre Packaging                              1,229       958    1,131        
866 
                                                                             
Consumer Packaging                           1,019       872      175        
131 
                                                                             
Uncoated Fine Paper                          1,450     1,248    1,473      
1,283 
                                                                             
Intra-segment elimination                    (120)         -    (131)          - 
                                                                             
Total Europe & International                 5,407     4,544    4,241      
3,529 
                                                                             
South Africa Division                          962       811    1,007        
860 
                                                                             
Corporate & other businesses                     5         1        6          
3 
                                                                             
Inter-segment elimination                     (30)         -     (40)          - 
                                                                             
Segments total                               6,344     5,356    5,214      
4,392 
                                                                             
Unallocated:                                                                     
                                                                             
Disposed operation                               -         -       51         
27 
                                                                             
Investments in associates                        6         6       10         
10 
                                                                             
Deferred tax assets/(liabilities)               10     (334)        5      
(305) 
                                                                             
Other non-operating assets/(liabilities)2      170     (315)      140      
(291) 
                                                                             
Group trading capital employed               6,530     4,713    5,420      
3,833 
                                                                             
Financial asset investments                     27        27       33         
33 
                                                                             
Net debt                                        57   (1,864)      192      
(831) 
                                                                             
Group assets                                 6,614     2,876    5,645      
3,035 


                                                                                


Notes:

1 Segment assets are operating assets and as at 31 December 2012 consist of
property, plant and equipment of €3,706 million (2011: €3,377 million),
intangible assets of €695 million (2011: €238 million), forestry assets of 
€
311 million (2011: €297 million), retirement benefits surplus of €nil 
(2011: €
8 million), inventories of €779 million (2011: €637 million) and operating
receivables of €854 million (2011: €708 million).

2 Other non-operating assets consist of derivative assets of €4 million 
(2011:
€13 million), current income tax receivables of €10 million (2011: €6 
million),
other non-operating receivables of €153 million (2011: €121 million) and 
assets
held for sale of €2 million (2011: €nil). Other non-operating liabilities
consist of derivative liabilities of €4 million (2011: €8 million),
non-operating provisions of €94 million (2011: €68 million), current income 
tax
liabilities of €66 million (2011: €78 million) and other non-operating 
payables
and deferred income of €320 million (2011: €277 million).

Non-current non-financial assets
                                                                  (Restated)    
    
                                                                                
    
                                       2012                             2011    
    
                                                                                



€ million               Non-current Segment     Net   Non-current    Segment   
Net 
                  non-financial  assets segment non-financial     assets 
segment 
                        assets1          assets       assets1             
assets 
                                                                             

Africa                                                                           


    
                                                                                



South Africa2                   793     938     786           825        974    
 827 
                                                                             

Rest of Africa                    7      20      19             6         17    
  16 
                                                                             

Africa total                    800     958     805           831        991    
 843 
                                                                             

Western Europe                                                                   


    
                                                                                



Austria                         477     828     611           453        796    
 576 
                                                                             

United Kingdom2                  39      69      60            37         77    
  66 
                                                                             

Rest of western                 929   1,359   1,136           398        671    
 525
Europe                                                                           


    
                                                                                



Western Europe total          1,445   2,256   1,807           888      1,544   
1,167 
                                                                             

Emerging Europe                                                                  


    
                                                                                



Poland                          623     805     703           469        594    
 511 
                                                                             

Slovakia                        408     456     388           439        490    
 427 
                                                                             

Rest of emerging                451     628     511           342        482    
 388
Europe                                                                           


    
                                                                                



Emerging Europe total         1,482   1,889   1,602         1,250      1,566   
1,326 
                                                                             

Russia                          855     985     925           836        957    
 917 
                                                                             

North America                    84     162     136            57        105    
  91 
                                                                             

Asia and Australia               46      94      81            19         51    
  48 
                                                                             

Segments total                4,712   6,344   5,356         3,881      5,214   
4,392 
                                                                             
Notes: 
1 Non-current non-financial assets are non-current assets and consist of
property, plant and equipment, intangible assets and forestry assets, but
exclude retirement benefits surplus, deferred tax assets and non-current
financial assets. 
2 These non-current non-financial assets, segment assets and net segment
assets, which total €832 million, €1,007 million and €846 million 
respectively
(2011: €862 million, €1,051 million and €893 million respectively), are
attributable to the countries in which the Group's parent entities are
domiciled. 
Additions to non-current non-financial assets 
                                   Additions to non-current Capital 
expenditure 
                                                                             
                                      non-financial     assets1    cash   
payments2 
                                                                             
                                                     (Restated)          
(Restated) 
                                                                             
€ million                                      2012        2011    2012       
 2011 


                                                                                
    Europe & International                                                          
                                                                                    


Packaging Paper                                 249          66      89         
 67 
                                                                             
Fibre Packaging                                 144          82      76         
 72 
                                                                             
Consumer Packaging                              620          15      28         
 15 
                                                                             
Uncoated Fine Paper                              60          51      58         
 61 
                                                                             
Total Europe & International                  1,073         214     251         
215 
                                                                             
South Africa Division                           106          71      46         
 29 
                                                                             
Segments total                                1,179         285     297         
244 


                                                                                
    Unallocated:                                                                    
                                                                                    


Disposed and discontinued operations              1          20       1         
 19 
                                                                             
Group total                                   1,180         305     298         
263 
                                                                             

Notes: 
1 Additions to non-current non-financial assets reflect cash payments and
accruals in respect of additions to property, plant and equipment, intangible
assets and forestry assets and include interest capitalised as well as
additions resulting from acquisitions through business combinations. Additions
to non-current non-financial assets, however, exclude additions to deferred tax
assets, retirement benefits surplus and non-current financial assets. 
2 Capital expenditure cash payments exclude business combinations, interest
capitalised and investments in intangible and forestry assets. 
4 Special items 
€ million                                                        2012     
2011 
                                                                          
Operating special items                                                        
                                                                          
Asset impairments                                                 (1)     (48) 
                                                                          
Restructuring and closure costs:                                               
                                                                          
Restructuring and closure costs excluding related personnel       (4)      (5)
costs                                                                          
                                                                          
Personnel costs relating to restructuring                        (16)      (4) 
                                                                          
Reversal of restructuring and closure costs excluding               -        3
related personnel costs                                                        
                                                                          
Transaction costs incurred on the acquisition of Nordenia        (11)        - 
                                                                          
Gain on insurance settlement                                        5        - 
                                                                          
Total operating special items                                    (27)     (54) 
                                                                          
Non-operating special items                                                    
                                                                          
Loss on disposals (see note 14)                                  (70)      (1) 
                                                                          
Gain on sale of land                                                6        - 
                                                                          
Total non-operating special items                                (64)      (1) 
                                                                          
Total special items from continuing operations before tax        (91)     (55)
and non-controlling interests                                                  
                                                                          
Tax (see note 5)                                                  (1)        2 
                                                                          
Total special items attributable to equity holders of the        (92)     (53)
parent companies                                                               
                                                                           
Special items from continuing operations before tax and non-controlling
interests by operating segment 
                                                                  
(Restated) 
                                                                             
€ million                                                        2012       
2011 
                                                                             
Europe & International                                                           
                                                                             
Packaging Paper                                                     -       
(11) 
                                                                             
Fibre Packaging                                                  (16)        
(8) 
                                                                             
Consumer Packaging                                               (11)        
(5) 
                                                                             
Uncoated Fine Paper                                                 -          
2 
                                                                             
Total Europe & International                                     (27)       
(22) 
                                                                             
South Africa Division                                               6          - 
                                                                             
Segments total                                                   (21)       
(22) 
                                                                             
Unallocated:                                                                     
                                                                             
Disposed operation                                               (70)       
(33) 
                                                                             
Group total from continuing operations                           (91)       
(55) 
                                                                             
Operating special items 
Asset impairments of €1 million and restructuring costs of €20 million in 
the
Industrial Bags segment of the Fibre Packaging business in Belgium, Spain,
France and Mexico were recognised. These costs were partly offset by a €5
million gain on the settlement of an insurance claim. 
Transaction costs incurred by the Consumer Packaging business on the
acquisition of Nordenia amounted to €11 million. 
Non-operating special items 
A gain of €6 million was realised on the sale of land in the South Africa
Division as part of its ongoing settlement of land claims. The settlements were
reached using the sale and leaseback framework developed by Mondi and the South
African Government which ensures that title to the land is transferred to the
claimant and that Mondi is paid a fair price for the land and secures a
continued fibre supply for its mills. 
The disposal of Aylesford Newsprint resulted in a loss on disposal of €70
million. The shares in Aylesford Newsprint were sold for a nominal
consideration satisfied in cash at completion. 
5 Tax charge 
(a) Analysis of charge for the year from continuing operations 
€ million                                                        2012     
2011 
                                                                          
UK corporation tax at 24.5% (2011: 26.5%)                           -        1 
                                                                          
SA corporation tax at 28% (2011: 28%)                              17        7 
                                                                          
Overseas tax                                                       66       84 
                                                                          
Current tax (excluding tax on special items)                       83       92 
                                                                          
Deferred tax in respect of the current period (excluding tax       16       22
on special items)                                                              
                                                                          
Deferred tax in respect of prior period over provision            (8)     (12) 
                                                                          
Total tax charge before special items                              91      102 
                                                                          
Current tax on special items                                        2        - 
                                                                          
Deferred tax on special items                                     (1)      (2) 
                                                                          
Total tax charge/(credit) on special items (see note 4)             1      (2) 
                                                                          
Total tax charge from continuing operations                        92      100 
                                                                           
(b) Factors affecting tax charge for the year 
The Group's effective rate of tax from continuing operations before special
items for the year ended 31 December 2012, calculated on profit from continuing
operations before tax before special items and including net income from
associates, is 20% (2011: 20%). 
The Group's total tax charge from continuing operations for the year can be
reconciled to the tax on the Group's profit from continuing operations before
tax at the weighted average UK and SA corporation tax rate of 24.9% (2011:
26.6%), as follows: 
€ million                                                        2012     
2011 
                                                                          
Profit from continuing operations before tax                      371      457 
                                                                          
Tax on profit from continuing operations before tax                92      121
calculated at the weighted average UK and SA corporation tax                  
rate of 24.9%1 (2011: 26.6%1)                                                  
                                                                          
Tax effect of net income from associates, calculated at             -        -
24.9% (2011: 26.6%)                                                            
                                                                          
Tax effects of:                                                                
                                                                          
Tax in Mondi Limited on intercompany interest received from         -        4
Mpact Limited                                                                  
                                                                          
Expenses not deductible/(taxable) for tax purposes                  6      (7) 
                                                                          
Intangible amortisation and non-qualifying depreciation           (7)     (11) 
                                                                          
Special items not deductible                                        5        1 
                                                                          
Other non-deductible expenses                                       8        3 
                                                                          
Non-taxable income                                                (1)      (1) 
                                                                          
Temporary difference adjustments                                   35       14 
                                                                          
Changes in tax rates2                                               7        - 
                                                                          
Current year tax losses and other temporary differences not        36       26
recognised                                                                     
                                                                          
Prior period tax losses and other temporary differences not       (8)     (12)
previously recognised                                                          
                                                                          
Other adjustments                                                (40)     (31) 
                                                                          
Current tax prior period adjustments                             (11)        6 
                                                                          
South African Secondary Tax on Companies                            -        4 
                                                                          
Tax incentives                                                   (20)     (20) 
                                                                          
Effect of differences between local rates and UK and SA          (19)     (28)
rates                                                                          
                                                                          
Other adjustments                                                  10        7 
                                                                          
Tax charge from continuing operations for the financial year       92      100 
                                                                           
Note: 
1 The weighted average tax rate has been determined by weighting the profit
from continuing operations before tax after special items of Mondi Limited and
its subsidiaries and Mondi plc and its subsidiaries. 
2 For the year ended 31 December 2012, changes in tax rates principally relate
to adjustments made to deferred tax balances based on substantively enacted
future changes in corporation tax rates in Slovakia and Sweden. 
The Group's share of its associates' tax charge included within net income from
associates for the year ended 31 December 2012 is €nil (2011: €nil).  
6 Discontinued operation 
On 30 June 2011, the Mondi Group shareholders approved a special resolution to
separate the Group's interest in Mondi Packaging South Africa (MPSA) via a
demerger in terms of which all the ordinary shares in MPSA held by Mondi
Limited were distributed to the Mondi Limited ordinary shareholders by way of a
dividend in specie. MPSA was listed on 11 July 2011 under a new name, Mpact
Limited (Mpact), on the securities exchange operated by the JSE Limited (JSE). 
Subsequent to the demerger, a consolidation of the Mondi Limited ordinary
shares owned by Mondi Limited shareholders, the effect of which was to reduce
their proportionate interest in the Mondi Group, was undertaken in order to
compensate Mondi plc shareholders for the value distributed to Mondi Limited
shareholders in terms of the demerger. 
The result of the Mondi Limited share consolidation was that the number of
Mondi Limited shares in issue reduced from 147 million to 118 million and the
total number of Mondi shares in issue reduced from 514 million to 486 million. 
Prior to the demerger, Mpact paid interest of €13 million for the year ended 
31
December 2011 to Mondi Limited in respect of intercompany financing provided,
which eliminated on consolidation and thus was not taken into consideration in
the tables below. 
The results of the discontinued operation were: 
€ million                                                                  
2011 
                                                                           
Revenue                                                                     296 
                                                                           
Expenses                                                                  (282) 
                                                                           
Profit before tax                                                            14 
                                                                           
Related tax charge                                                            - 
                                                                           
Profit after tax from discontinued operation                                 14 
                                                                           
Gain on distribution of discontinued operation                               29 
                                                                           
Related tax charge                                                            - 
                                                                           
Net gain on distribution of discontinued operation                           29 
                                                                           
Total profit attributable to discontinued operation                          43 
                                                                           
Attributable to:                                                                
                                                                           
Non-controlling interests                                                     - 
                                                                           
Equity holders of the parent companies                                       43 
                                                                            
Earnings per share from the discontinued operation were: 
€ cents per share                                                          
2011 
                                                                           
Profit from discontinued operation for the financial year                      
attributable to equity holders of the parent companies                          
                                                                           
Basic EPS                                                                   8.6 
                                                                           
Diluted EPS                                                                 8.5 
                                                                            
Details of the discontinued operation disposed were as follows: 
€ million                                                                  
2011 
                                                                           
Net assets disposed                                                         181 
                                                                           
Cumulative translation adjustment reserve realised                          (5) 
                                                                           
Non-controlling interests disposed                                          (6) 
                                                                           
Net carrying value of discontinued operation distributed                    170 
                                                                           
Dividend in specie distributed to Mondi Limited shareholders                205 
                                                                           
Net carrying value of discontinued operation distributed                  (170) 
                                                                           
Fair value gain on discontinued operation distributed                        35 
                                                                           
Transaction costs                                                           (6) 
                                                                           
Net fair value gain on discontinued operation distributed                    29 


                                                                               

7 Earnings per share

As described in note 6, Mondi Limited's ordinary shares were subject to a share
consolidation which was recognised from 1 August 2011, the date on which the
new Mondi Limited ordinary shares commenced trading on the JSE.

IFRS requires that the number of shares subject to the consolidation be
adjusted from the effective date of the consolidation, hence for the years
under review the effect of the share consolidation was included from 1 August
2011.
                                                             Number of shares  


                                                                           
million                                                      2012      2011     
                                                                           
Basic number of ordinary shares outstanding1                       483      499 
                                                                           
Effect of dilutive potential ordinary shares                         2        6 
                                                                           
Diluted number of ordinary shares outstanding                      485      505 
                                                                            
Note: 
1 The basic number of ordinary shares outstanding represents the weighted
average number in issue for Mondi Limited and Mondi plc for the year, as
adjusted for the weighted average number of treasury shares held during the
year, and includes the impact of the share consolidation in 2011. 
(a) From continuing operations 
€ cents per share                                                2012     
2011 
                                                                          
Profit from continuing operations for the financial year                      
attributable to equity holders of the parent companies                         
                                                                          
Basic EPS                                                        50.5     57.5 
                                                                          
Diluted EPS                                                      50.3     56.8 
                                                                          
Underlying earnings for the financial year                                     
                                                                          
Basic EPS                                                        69.6     68.1 
                                                                          
Diluted EPS                                                      69.3     67.3 


                                                                              

The calculation of basic and diluted EPS and basic and diluted underlying EPS
from continuing operations is based on the following data:
                                                                       Earnings


                                                                           
€ million                                                        2012      
2011 
                                                                           
Profit for the financial year attributable to equity holders      244       330
of the parent companies                                                         
                                                                           
Profit from discontinued operation (see note 6)                     -      (14) 
                                                                           
Net gain on distribution of discontinued operation (see note        -      (29)
6)                                                                              
                                                                           
Profit from continuing operations for the financial year          244       287
attributable to equity holders of the parent companies                          
                                                                           
Special items (see note 4)                                         91        55 
                                                                           
Related tax (see note 4)                                            1       (2) 
                                                                           
Underlying earnings for the financial year                        336       340 
                                                                            
(b) From continuing and discontinued operations 
€ cents per share                                                2012     
2011 
                                                                          
Profit for the financial year attributable to equity holders                  
of the parent companies                                                        
                                                                          
Basic EPS                                                        50.5     66.1 
                                                                          
Diluted EPS                                                      50.3     65.3 
                                                                          
Headline earnings for the financial year1                                      
                                                                          
Basic EPS                                                        63.4     69.9 
                                                                          
Diluted EPS                                                      63.1     69.1 


                                                                              

Note:

1 The presentation of headline EPS is mandated under the JSE Listings
Requirements. Headline earnings has been calculated in accordance with Circular
3/2012, `Headline Earnings', as issued by the South African Institute of
Chartered Accountants.

The calculation of basic and diluted EPS and basic and diluted headline EPS
from continuing and discontinued operations is based on the following data:
                                                                       Earnings


                                                                           
€ million                                                        2012      
2011 
                                                                           
Profit for the financial year attributable to equity holders      244       330
of the parent companies                                                         
                                                                           
Net gain on distribution of discontinued operation (see note        -      (29)
6)                                                                              
                                                                           
Special items (see note 4)                                         91        55 
                                                                           
Special items: restructuring and closure costs                   (20)       (6) 
                                                                           
Transaction costs attributable to the acquisition of             (11)         -
Nordenia (see note 12)                                                          
                                                                           
Profit on disposal of tangible and intangible assets              (4)         - 
                                                                           
Impairments not included in special items                           4         1 
                                                                           
Related tax                                                         2       (2) 
                                                                           
Headline earnings for the financial year                          306       349 


                                                                               

8 Alternative measure of earnings per share

The directors elected to present an alternative, non-IFRS measure of earnings
per share from continuing operations in order to provide shareholders with a
comparison of the continuing operations of the Group as if the demerger and
related share consolidation had occurred on 1 January 2011. This is deemed
appropriate as it is the continuing operations of the Group, after taking the
impact of the share consolidation into consideration, which form the basis of
the performance of the Group. This approach enables a useful comparison of
earnings per share from continuing operations, based on the consolidated
shares, for all future periods.

The presentation of such an alternative, non-IFRS measure of earnings per share
is classified by the JSE Limited as pro-forma financial information. Refer to
the Mondi Group Integrated report and financial statements for the year ended
31 December 2011 for the pro-forma financial information and independent
reporting accountants' report thereon.

In addition, the effect of the recapitalisation of Mpact resulted in a
repayment of intercompany debt by Mpact to Mondi Limited on 4 and 5 July 2011
of €76 million. These proceeds were used to reduce the Group's net debt. The
alternative measure of earnings per share has therefore been adjusted to take
the related saving on interest paid into consideration as if the
recapitalisation had occurred on 1 January 2011.

The demerger and related share consolidation had no impact on the Group's
results for the year ended 31 December 2012.
                                                                       Earnings


                                                                           
€ million                                                        2012      
2011 
                                                                           
Underlying earnings for the financial year                        336       340 
                                                                           
Tax saving by Mondi Limited on intercompany interest                -         4
received from Mpact1                                                            
                                                                           
Saving of interest paid on net debt at 8.6% per annum               -         3 
                                                                           
Tax at 28% on saving of interest paid                               -       (1) 
                                                                           
Adjusted earnings for the financial year                          336       346 


                                                                               

Note:

1 Had the recapitalisation of Mpact occurred on 1 January 2011, Mondi Limited
would no longer have received interest on its intercompany loans to Mpact and
thus the tax charge on the interest received would not have been incurred.

The revised weighted average number of shares is determined as follows:
                                                             Number of   shares


                                                                           
million                                                           2012     2011 
                                                                           
Basic number of ordinary shares outstanding                        483      499 
                                                                           
Adjustment for Mondi Limited share consolidation1                    -     (17) 
                                                                           
Adjusted basic number of ordinary shares outstanding2              483      482 
                                                                           
Effect of dilutive potential ordinary shares                         2        6 
                                                                           
Diluted number of ordinary shares outstanding after Mondi          485      488
Limited share consolidation                                                     
                                                                            
Notes: 
1 The actual number of shares subject to consolidation was 29 million. The
adjustment reflects the impact on the number of shares as if the share
consolidation had occurred with effect from 1 January 2011 and takes treasury
shares into consideration. In 2011, the adjustment reflects the period up to
the date of the share consolidation as the share consolidation is included in
the basic number of ordinary shares outstanding from 1 August 2011. 
2 The basic number of ordinary shares outstanding represents the weighted
average number in issue for Mondi Limited and Mondi plc for the year, as
adjusted for the weighted average number of treasury shares held during the
year. 
Based on the adjusted earnings and weighted average number of shares, the
alternative, non-IFRS earnings per share figures for continuing operations
would be: 
€ cents per share                                                2012     
2011 
                                                                          
Earnings per share - alternative measure for the financial                    
year                                                                           
                                                                          
Basic EPS - alternative measure                                  69.6     71.8 
                                                                          
Diluted EPS - alternative measure                                69.3     70.9 


                                                                              

9 Dividends

Dividend payments

An interim dividend for the year ended 31 December 2012 of 90.44358 rand cents
/ 8.90 euro cents per share was paid on 18 September 2012 to all Mondi Limited
and Mondi plc ordinary shareholders on the relevant registers on 24 August
2012.

A proposed final dividend for the year ended 31 December 2012 of 19.1 euro
cents per ordinary share will be paid on 16 May 2013 to all those shareholders
on the register of Mondi plc on 19 April 2013. An equivalent South African rand
final dividend will be paid on 16 May 2013 to shareholders on the register of
Mondi Limited on 19 April 2013. The final dividend is subject to the approval
of the shareholders of Mondi Limited and Mondi plc at the respective annual
general meetings scheduled for 3 May 2013.

Dividend timetable

The proposed final dividend for the year ended 31 December 2012 of 19.1 euro
cents per share will be paid in accordance with the following timetable:
                                    Mondi Limited         Mondi plc            


                                                                           
Last date to trade shares                                                      
cum-dividend                                                                    
                                                                           
JSE Limited                         12 April 2013         12 April 2013         
                                                                           
London Stock Exchange               Not applicable        16 April 2013         
                                                                           
Shares commence trading ex-dividend                                             
                                                                           
JSE Limited                         15 April 2013         15 April 2013         
                                                                           
London Stock Exchange               Not applicable        17 April 2013         
                                                                           
Record date                                                                     
                                                                           
JSE Limited                         19 April 2013         19 April 2013         
                                                                           
London Stock Exchange               Not applicable        19 April 2013         
                                                                           
Last date for receipt of Dividend   25 April 2013         25 April 2013        
Reinvestment Plan (DRIP) elections                                             
by Central Securities Depository                                               
Participants                                                                    
                                                                           
Last date for DRIP elections to UK  26 April 2013         21 April 2013*       
Registrar and South African                                                    
Transfer Secretaries by                                                        
shareholders of Mondi Limited and                                              
Mondi plc                                                                       
                                                                           
Payment Date                                                                    
                                                                           
South African Register              16 May 2013           16 May 2013           
                                                                           
UK Register                         Not applicable        16 May 2013           
                                                                           
DRIP purchase settlement dates      24 May 2013           21 May 2013**         
                                                                           
Currency conversion date                                                        
                                                                           
ZAR/euro                            21 February 2013      21 February 2013      
                                                                           
Euro/sterling                       Not applicable        30 April 2013         
*26 April 2013 for Mondi plc South African branch register shareholders 
**24 May 2013 for Mondi plc South African branch register shareholders 
Share certificates on the South African registers of Mondi Limited and Mondi
plc may not be dematerialised or rematerialised between 15 April 2013 and 21
April 2013, both dates inclusive, nor may transfers between the UK and South
African registers of Mondi plc take place between 10 April 2013 and 21 April
2013, both dates inclusive. 
Information relating to the dividend tax to be withheld from Mondi Limited
shareholders and 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 21 February 2013. 
10 Borrowings 
                                   2012                          2011        
                                                                               
€ million               Current Non-current   Total   Current Non-current   
Total 
                                                                             
Secured                                                                          
                                                                               
Bank loans and                5           3       8         9           1      
10
overdrafts                                                                       
                                                                               
Obligations under             2           9      11         2          10      
12
finance leases                                                                   
                                                                               
Total secured                 7          12      19        11          11      
22 
                                                                             
Unsecured                                                                        
                                                                               
Bank loans and              253         251     504       253         155     
408
overdrafts                                                                       
                                                                               
Bonds                         -       1,310   1,310         -         492     
492 
                                                                             
Bonds                         -       1,357   1,357         -         492     
492 
                                                                             
Embedded call option          -        (47)    (47)         -           -       
-
derivative                                                                       
                                                                               
Other loans                  21          67      88        22          79     
101 
                                                                             
Total unsecured             274       1,628   1,902       275         726   
1,001 
                                                                             
Total borrowings            281       1,640   1,921       286         737   
1,023 
                                                                             
Obligations under finance leases 
The maturity of obligations under finance leases is: 
€ million                                                        2012     
2011 
                                                                          
Not later than one year                                             3        3 
                                                                          
Later than one year but not later than five years                   8       10 
                                                                          
Later than five years                                               5        - 
                                                                          
Future value of finance lease liabilities                          16       13 
                                                                          
Future finance charges                                            (5)      (1) 
                                                                          
Present value of finance lease liabilities                         11       12 
                                                                           
The Group does not have any individual finance lease arrangements which are
considered material. 
Financing facilities 
Group liquidity is provided through a range of committed debt facilities. The
principal loan arrangements in place include the following: 
€750 million Syndicated Revolving Credit Facility (RCF) 
The RCF is a five year multi-currency revolving credit facility which was
signed on 14 April 2011.   Interest is charged on the balance outstanding at
market-related rates linked to EURIBOR. 
€500 million 2017 Eurobond 
Mondi Finance plc launched its inaugural seven year publicly traded bond,
guaranteed by Mondi plc, in March 2010. The €500 million bond, which matures 
on
3 April 2017, was issued at a discount of €5.63 million and pays a fixed 
coupon
of 5.75% per annum. The bond contains a coupon step up clause whereby the
coupon will be increased by 1.25% per annum if Mondi fails to maintain at least
one investment grade credit rating from either Moody's Investors Service or
Standard & Poor's.  Mondi currently has investment grade credit ratings from
both Standard & Poor's (BBB-, outlook stable) and Moody's Investors Service
(Baa3, outlook stable). 


    €500 million 2020 Eurobond

In September 2012 Mondi Finance plc launched an eight year publicly traded
bond, guaranteed by Mondi plc. The €500 million bond, which matures on 28
September 2020, was issued at a discount of €0.1 million and pays a fixed
coupon of 3.375% per annum. The bond contains the same 1.25% per annum coupon
step up clause as the €500 million 2017 Eurobond.

€280 million Eurobond

As part of the acquisition of Nordenia (see note 12) Mondi assumed Nordenia's 
€
280 million Eurobond, paying a coupon of 9.75% per annum and maturing on 15
July 2017. The bond was recognised at its fair value of €324 million at date 
of
acquisition. The fair value of the bond includes the fair value of an option to
call the bond early at the following redemption rates:

%                                                                    Redemption
                                                                     rate      


                                                                           
Redemption date                                                                 
                                                                           
15 July 2014                                                            104.875 
                                                                           
15 July 2015                                                            102.438 
                                                                           
15 July 2016 and thereafter                                             100.000 
                                                                            
The option is valued at €47 million at 31 December 2012. 
€160 million Export Credit Agency Facility (ECAF) 
The ECAF is used to part finance expansionary capital expenditure in Russia.
The facility has an amortising repayment until 2020 and interest is charged on
the balance outstanding at a market-related rate linked to LIBOR. 
PLN 474 million European Investment Bank Facility (EIBF1) 
The EIBF1 is used to part finance expansionary capital expenditure at Mondi 
Swiecie in Poland. The facility has an amortising repayment until 2017 and
interest is charged at a market-related rate linked to WIBOR (Warsaw Interbank
Offered Rate). 
 €100 million European Investment Bank Facility (EIBF2) 
The EIBF2 is used to part finance expansionary capital expenditure in Russia.
The facility is currently undrawn and is available to be drawn until 28 May
2013. Once drawn, the facility amortises over 12 years with a two year grace
period. Interest is charged on the balance outstanding at a market-related rate
linked to EURIBOR. 
RUB 1.6 billion European Bank for Reconstruction and Development Facility
(EBRDF) 
The EBRDF is used to part finance expansionary capital expenditure in Russia.
The facility has an amortising repayment until 2019 and interest is charged on
the balance outstanding at a market-related rate linked to MOSPRIME (Moscow
Prime Offered Rate). 
In addition to the facilities above, the Group has committed facilities
amounting to R1.2 billion in South Africa, comprising of two revolving loans of
R500 million (2011: R500 million) and R700 million (2011: R500 million)
respectively. These loans are repayable on their extended maturity dates of 15
June 2013 and 23 August 2013 and bear interest at one month JIBAR plus
different margins, payable monthly. 
The Group's borrowings as at 31 December are analysed by nature and underlying
currency as follows: 
2012/€ million                 Floating   Fixed rate Non-interest Total    
Fair    
                           rate       borrowings bearing      carrying 
value   
                           borrowings            borrowings   value          
                                                                                
Euro                                  126      1,322            -    1,448   
1,559 
                                                                             
South African rand                    180          -            -      180     
180 
                                                                             
Polish zloty                           84          -            -       84      
84 
                                                                             
Russian rouble                         41          -            -       41      
41 
                                                                             
Turkish lira                           29          -            -       29      
29 
                                                                             
Pounds sterling                       116          -            -      116     
116 
                                                                             
Other currencies                       22          1            -       23      
23 
                                                                             
Carrying value                        598      1,323            -    1,921       
                                                                                
Fair value                            598      1,434            -            
2,032 
                                                                             
2011/€ million                   Floating Fixed rate Non-interest    Total    
Fair 
                                 rate borrowings      bearing carrying   
value 
                           borrowings              borrowings    value       
                                                                                
Euro                                  152        503            -      655     
682 
                                                                             
South African rand                    178          -            -      178     
178 
                                                                             
Polish zloty                           94          -            -       94      
94 
                                                                             
Russian rouble                         39          -            -       39      
39 
                                                                             
Turkish lira                           26          -            -       26      
26 
                                                                             
Pounds sterling                        19          -            -       19      
19 
                                                                             
Other currencies                        3          9            -       12      
12 
                                                                             
Carrying value                        511        512            -    1,023       
                                                                                
Fair value                            511        539            -            
1,050 
                                                                             
In addition to the above, the Group swaps euro debt into other currencies
through the foreign exchange market. 
The fair values of the €500 million 2017 Eurobond, €500 million 2020 
Eurobond
and €280 million Eurobond are estimated with reference to the last price 
quoted
in the secondary market and for all other financial liabilities are estimated
by discounting the future contractual cash flows at the current market interest
rate that is available to the Group for similar financial instruments. 
The Group has pledged specific assets as collateral against certain borrowings.
The fair values of these assets as at 31 December are as follows: 
€ million                                                    2012     2011     
                                                                          
Assets held under finance leases                                               
                                                                          
Property, plant and equipment                                       9        9 
                                                                          
Assets pledged as collateral for other borrowings                              
                                                                          
Property, plant and equipment                                       8       21 
                                                                          
Inventories                                                         4        5 
                                                                          
Financial assets                                                    2       17 
                                                                          
Other                                                               -       17 
                                                                          
Total value of assets pledged as collateral                        23       69 
                                                                           
The Group is entitled to receive all cash flows from these pledged assets.
Further, there is no obligation to remit these cash flows to another entity. 
11 Retirement benefits 
All assumptions of the Group's material defined benefit schemes and
post-retirement medical plan liabilities were reassessed individually and the
remaining Group defined benefit schemes and unfunded statutory retirement
obligations were reassessed in aggregate for the year ended 31 December 2012. 
The net retirement benefit obligation increased by €59 million mainly due to
changes in assumptions, €21 million of net liabilities acquired through
business combinations (see note 12), an exchange rate impact of €4 million 
and
a €2 million settlement charge resulting from the winding-up of the Mondi
Pension Fund in South Africa. Mondi Limited expects to receive a reimbursement
of the pension surplus of €6 million once the fund is wound up, subject to 
any
potential claims. The reimbursement is included in trade and other receivables. 
The assets backing the defined benefit scheme liabilities reflect their market
values as at 31 December 2012. Any movements in the assumptions have been
recognised as an actuarial movement in the combined and consolidated statement
of comprehensive income. 
12 Business combinations 
To 31 December 2012 
Acquisition of Nordenia 
On 1 October 2012 Mondi acquired 99.93% of the outstanding share capital of
Nordenia from Oaktree Capital Management L.P. and certain other minority
shareholders for a cash consideration of €259 million. The acquisition 
enables
Mondi to create a leading consumer packaging business. 
Nordenia generated operating profits prior to its acquisition by Mondi, but was
highly geared and as a result had an equity deficit. The premium of €268
million paid over the fair values of Nordenia's identifiable net assets was
recognised as goodwill on acquisition and can be attributed to significant
synergies to be realised from combining Nordenia's existing consumer packaging
activities with those of Mondi, the ability to leverage Nordenia's existing
competencies in high-growth emerging markets, exposure to Nordenia's proven
innovation and product development processes and access to Nordenia's long-term
relationships with a broad blue chip customer base. It is not expected that any
portion of the goodwill will be deductible for tax purposes. 
The interest of non-controlling interests in Nordenia of 0.07% recognised at
the acquisition date was insignificant. 
The fair value accounting reflected in these results is provisional in nature.
The nature of this business is such that adjustments to the carrying values of
acquired assets and/or liabilities, and to the goodwill arising on acquisition,
are possible as the detail of the acquired business is evaluated post
acquisition. If necessary, these adjustments will be made within 12 months of
the acquisition date. 
Prior to being acquired by Mondi, Nordenia generated revenue of approximately 
€
74 million per month and underlying operating profit of €6 million per
month. Nordenia's revenue for the year ended 31 December 2012 was €873 
million
with a profit after tax of €1 million. Nordenia's revenue of €208 million 
and
underlying operating profit of €1 million since date of acquisition have been
included in the combined and consolidated income statement. Transaction costs
of €11 million related to the acquisition are recognised as a special item in
the combined and consolidated income statement. 
Details of the net assets acquired, as adjusted from book to fair value, and
the attributable goodwill are as follows: 
€ million                                              Book Revaluation     
Fair 
                                                  value                
value 
                                                                             
Net assets acquired:                                                             
                                                                             
Intangible assets                                         2         100      
102 
                                                                             
Property, plant and equipment                           224         (3)      
221 
                                                                             
Financial asset investments                              17           -       
17 
                                                                             
Deferred tax assets                                       4           -        
4 
                                                                             
Inventories                                             113           7      
120 
                                                                             
Trade and other receivables                             127           -      
127 
                                                                             
Cash and cash equivalents                                33           -       
33 
                                                                             
Other current assets                                      1           -        
1 
                                                                             
Short-term borrowings                                  (56)           -     
(56) 
                                                                             
Trade and other payables                              (134)           -    
(134) 
                                                                             
Current tax liabilities                                 (6)           -      
(6) 
                                                                             
Provisions                                             (27)           -     
(27) 
                                                                             
Medium and long-term borrowings                       (300)        (45)    
(345) 
                                                                             
Retirement benefits obligation                         (20)           -     
(20) 
                                                                             
Deferred tax liabilities                               (14)        (17)     
(31) 
                                                                             
Other non-current liabilities                          (15)           -     
(15) 
                                                                             
Net assets acquired                                    (51)          42      
(9) 
                                                                             
Goodwill arising on acquisition                                              
268 
                                                                             
Total cost of acquisition                                                    
259 
                                                                             
Transaction costs expensed                                                    
11 
                                                                             
Cash acquired net of overdrafts                                             
(33) 
                                                                             
Net cash paid per combined and consolidated                                  
237
statement of cash flows                                                          
                                                                             
In respect of trade and other receivables, the gross contractual amounts
receivable and the best estimate at the acquisition date of the contractual
cash flows not expected to be collected approximate the book value and the
revaluation amount respectively as presented. 
Other acquisitions 
On 2 May 2012, following completion of a number of suspensive conditions,
including a ruling from the Arbitration Court of the National Chamber of
Commerce in Poland, Mondi Swiecie S.A. acquired the entire share capital of
Saturn Management Sp. Z o.o. from Polish Energy Partners S.A. for a net cash
consideration of €31 million and the assumption of debt of €57 million. The
premium of €4 million paid over the acquisition date fair values of the net
assets acquired is attributable to expected cost saving synergies. Transaction
costs of approximately €1 million were expensed. Saturn Energy is the owner 
of
the power and heat generating plant that provides Mondi Swiecie S.A. with most
of its electricity requirements and all of its heat and steam needs. 
In line with Mondi's existing strategy to strengthen its leading market
position in corrugated packaging in central and eastern Europe, Mondi acquired
two corrugated box plants in Germany and the Czech Republic, consuming 130,000
tonnes of containerboard per annum, and a 105,000 tonne recycled containerboard
mill in the Czech Republic from Duropack GmbH (Duropack) for a cash
consideration of €133 million on 5 November 2012. On 19 November 2012 the 
Group
announced its intention to close the recycled containerboard mill. Closure
costs of €3 million were recognised in the combined and consolidated income
statement. 
The premium of the purchase price over the acquisition date fair values of the
net assets acquired from Duropack amounted to €84 million and is mainly
attributable to synergies expected to be realised from combining the converting
activities of the two box plants with the Group's existing operations. 
It is not expected that any portion of the goodwill arising from the
acquisition of these businesses will be deductible for tax purposes. 
The fair value accounting reflected in these results is provisional in nature.
The nature of these businesses is such that adjustments to the carrying values
of acquired assets and/or liabilities, and to the goodwill arising on
acquisition, are possible as the detail of each acquired business is evaluated
post acquisition. If necessary, these adjustments will be made within 12 months
of the acquisition dates. 
Prior to the acquisitions, the businesses generated revenue of approximately 
€
12 million per month and underlying operating profits of €1 million per
month. The businesses' aggregate revenues for the year ended 31 December 2012
were €148 million with profits after tax of €7 million. Since the 
acquisition
dates, turnover of €27 million and underlying operating losses of €1 
million
were contributed by the businesses and included in the combined and
consolidated income statement. 
Details of the aggregate net assets acquired, as adjusted from book to fair
value, and the attributable goodwill are presented as follows: 
€ million                                              Book Revaluation     
Fair 
                                                  value                
value 
                                                                             
Net assets acquired:                                                             
                                                                             
Intangible assets                                         -           3        
3 
                                                                             
Property, plant and equipment                           100          25      
125 
                                                                             
Inventories                                              10         (2)        
8 
                                                                             
Trade and other receivables                              16           -       
16 
                                                                             
Cash and cash equivalents                                20           -       
20 
                                                                             
Short-term borrowings                                  (11)           -     
(11) 
                                                                             
Trade and other payables                               (22)           -     
(22) 
                                                                             
Current tax liabilities                                 (1)           -      
(1) 
                                                                             
Provisions                                              (1)         (1)      
(2) 
                                                                             
Medium and long-term borrowings                        (48)           -     
(48) 
                                                                             
Retirement benefits obligation                          (1)           -      
(1) 
                                                                             
Deferred tax liabilities                                (1)         (9)     
(10) 
                                                                             
Other non-current liabilities                           (1)           -      
(1) 
                                                                             
Net assets acquired1                                     60          16       
76 
                                                                             
Goodwill arising on acquisitions2                                             
88 
                                                                             
Total cost of acquisitions                                                   
164 
                                                                             
Cash acquired net of overdrafts                                             
(20) 
                                                                             
Net cash paid per combined and consolidated                                  
144
statement of cash flows3                                                         
                                                                             
Notes: 
1 €27 million of net assets acquired is attributable to Saturn and €49 
million
to Duropack. 
2 €4 million of the goodwill arising on acquisitions is attributable to 
Saturn
and €84 million to Duropack. 
3 €29 million of the net cash paid is attributable to Saturn and €115 
million
to Duropack. 
In respect of trade and other receivables, the gross contractual amounts
receivable and the best estimates at the acquisition dates of the contractual
cash flows not expected to be collected approximate the book values and the
revaluation amounts respectively as presented. 
There were no other acquisitions made during the year ended 31 December 2012. 
To 31 December 2011 
There were no major acquisitions made during the year ended 31 December 2011. 
Details of the aggregate net assets acquired are disclosed in note 29 of the
Group's annual financial statements for the year ended 31 December 2012. 
13 Non-controlling interests bought out 
On 18 April 2012, Mondi concluded an all cash public tender offer for the
ordinary shares in Mondi Swiecie S.A. that it did not already own, increasing
its shareholding to 93.2% from 66%. On 18 May 2012, Mondi acquired the
remaining shares it did not already own. The total consideration paid by Mondi
was €296 million including transaction costs of approximately €1 million 
which
were expensed. 
€2 million was paid for the acquisition of an additional 3.1% of the ordinary
shares of Mondi Tire Kutsan Kagit Ve Ambalaj Sanayi Anonim Sirketi. 
These acquisitions are reflected in the combined and consolidated statement of
changes in equity as transactions between shareholders with the premium over
the carrying value of the non-controlling interests being reflected as a
reduction in retained earnings. 
14 Disposal of joint ventures and subsidiaries 
To 31 December 2012 
Disposal of Aylesford Newsprint 
On 2 October 2012, Mondi and Svenska Cellulosa Aktiebolaget (SCA) sold their
100% interest in the jointly owned Aylesford Newsprint to The Martland Holdings
for a nominal consideration. Aylesford Newsprint specialises in newsprint
production from recycled fibre. The loss on disposal of €70 million was
recognised in special items in the combined and consolidated income statement.
Transaction costs were insignificant and were expensed. 
Other disposals 
There were no other significant disposals during the year ended 31 December
2012. 
Details of the aggregate net assets disposed are presented as follows: 
 € million                                                                 
2012 
                                                                           
Net assets disposed:                                                            
                                                                           
Property, plant and equipment                                                30 
                                                                           
Inventories                                                                   7 
                                                                           
Trade and other receivables                                                  11 
                                                                           
Cash and cash equivalents                                                    17 
                                                                           
Trade and other payables                                                   (11) 
                                                                           
Provisions                                                                  (4) 
                                                                           
Retirement benefits obligation                                              (1) 
                                                                           
Other non-current liabilities                                               (1) 
                                                                           
Total net assets disposed                                                    48 
                                                                           
Guarantee liability retained                                                  7 
                                                                           
Cumulative translation adjustment reserve realised                           15 
                                                                           
Loss on disposal of businesses (see note 4)                                (70) 


                                                                               
                                                                               


                                                                           
Disposal proceeds                                                             - 
                                                                           
Cash disposed                                                              (17) 
                                                                           
Deferred consideration received in respect of the sale of Mondi               1
Frohnleiten in 2010                                                             
                                                                           
Net cash outflow from disposal of businesses during the year               (16) 
                                                                            
To 31 December 2011 
The discontinued operation and associated demerger of Mpact is disclosed in
note 6. 
There were no other major disposals during the year ended 31 December 2011.
Details of the aggregate net assets disposed are disclosed in note 31 of the
Group's annual financial statements for the year ended 31 December 2012. 
15 Consolidated cash flow analysis 
(a) Reconciliation of profit from continuing operations before tax to cash
generated from operations 
€ million                                                        2012     
2011 
                                                                          
Profit from continuing operations before tax                      371      457 
                                                                          
Depreciation and amortisation                                     355      342 
                                                                          
Share-based payments                                               10       10 
                                                                          
Non-cash effect of special items                                   91       36 
                                                                          
Net finance costs                                                 107      111 
                                                                          
Net income from associates                                        (1)      (1) 
                                                                          
Decrease in provisions and post-employment benefits              (23)     (25) 
                                                                          
Increase in inventories                                          (14)     (55) 
                                                                          
Increase in operating receivables                                (31)     (32) 
                                                                          
(Decrease)/increase in operating payables                        (35)       19 
                                                                          
Fair value gains on forestry assets                              (40)     (49) 
                                                                          
Felling costs                                                      64       65 
                                                                          
Profit on disposal of tangible and intangible assets              (4)        - 
                                                                          
Other adjustments                                                 (5)        5 
                                                                          
Cash generated from continuing operations                         845      883 
                                                                          
Cash generated from discontinued operation                          -       34 
                                                                          
Cash generated from operations                                    845      917 
                                                                           
(b) Cash and cash equivalents 
€ million                                                        2012      
2011 
                                                                           
Cash and cash equivalents per combined and consolidated             56      191
statement of financial position                                                 
                                                                           
Bank overdrafts included in short-term borrowings (see note       (93)     (74)
15c)                                                                            
                                                                           
Net cash and cash equivalents per combined and consolidated       (37)      117
statement of cash flows                                                         
                                                                            
The fair value of cash and cash equivalents approximate the carrying values
presented. 
(c) Movement in net debt 
The Group's net debt position, excluding disposal groups is as follows: 
€ million                        Cash and   Debt due Debt due     Current 
Total net 
                                 cash within one    after   financial      
debt 


                             equivalents1      year2      one       asset       
                                                             year investments       
                                                                                    


At 1 January 2011                      24      (351)  (1,037)           -   
(1,364) 
                                                                             
Cash flow                              84        135        4           1       
224 
                                                                             
Business combinations                   -        (4)      (1)           -       
(5) 
                                                                             
Disposal of discontinued                -         15      195           -       
210
operation (see note 6)                                                           
                                                                                 
Disposal of businesses                  -         30       12           -       
 42 
                                                                             
Movement in unamortised loan            -          -      (6)           -       
(6)
costs                                                                            
                                                                                 
Reclassification                        -       (64)       64           -       
  - 
                                                                             
Currency movements                      9         27       32           -       
 68 
                                                                             
At 31 December 2011                   117      (212)    (737)           1     
(831) 
                                                                             
Cash flow                           (158)        132    (549)           -     
(575) 
                                                                             
Business combinations (see              -       (67)    (393)           -     
(460)
note 12)                                                                         
                                                                                 
Movement in unamortised loan            -          -        3           -       
  3
costs                                                                            
                                                                                 
Reclassification                        -       (46)       46           -       
  - 
                                                                             
Currency movements                      4          5     (10)           -       
(1) 
                                                                             
At 31 December 2012                  (37)      (188)  (1,640)           1   
(1,864) 
                                                                             

Notes: 
1 The Group operates in certain countries (principally South Africa) where the
existence of exchange controls may restrict the use of certain cash balances.
These restrictions are not expected to have any material effect on the Group's
ability to meet its ongoing obligations. 
2 Excludes overdrafts, which are included in cash and cash equivalents. As at
31 December 2012, short-term borrowings in the combined and consolidated
statement of financial position of €281 million (2011: €286 million) 
include €
93 million of overdrafts (2011: €74 million). 
16 Capital commitments 
 € million                                                      2012     2011  
                                                                          
Contracted for but not provided                                   129      140 
                                                                          
Approved, not yet contracted for                                  589      372 
                                                                           
These capital commitments relate to the following categories of non-current
non-financial assets: 
 € million                                                       2012      
2011 
                                                                           
Intangible assets                                                    9       13 
                                                                           
Property, plant and equipment                                      709      499 
                                                                           
Total capital commitments                                          718      512 
                                                                            
The expected maturity of these capital commitments is: 
 € million                                                       2012      
2011 
                                                                           
Within one year                                                    445      339 
                                                                           
One to two years                                                   263      141 
                                                                           
Two to five years                                                   10       32 
                                                                           
Total capital commitments                                          718      512 


                                                                               

Capital commitments are based on capital projects approved to date and the
budget approved by the Boards.

Major capital projects still require further approval before they commence.
These capital commitments are expected to be financed by existing cash
resources and borrowing facilities.

17 Contingent liabilities and contingent assets

Contingent liabilities comprise aggregate amounts as at 31 December 2012 of €
15 million (2011: €17 million) in respect of loans and guarantees given to
banks and other third parties. No acquired contingent liabilities have been
recorded in the Group's combined and consolidated statement of financial
position for both years presented.

There are a number of legal and tax claims against the Group. Provision is made
for all liabilities that are expected to materialise.

There were no contingent assets at 31 December 2012 or 31 December 2011.

18 Related party transactions

The Group has related party relationships with its joint ventures and
associates. Transactions between Mondi Limited, Mondi plc and their respective
subsidiaries, which are related parties, have been eliminated on consolidation.

The Group and its subsidiaries, in the ordinary course of business, enter into
various sale, purchase and service transactions with joint ventures and
associates and others in which the Group has a material interest. These
transactions are under terms that are no less favourable than those arranged
with third parties. These transactions, in total, are not considered to be
significant.

There have been no significant changes to the related parties as disclosed in
note 39 of the Group's annual financial statements for the year ended 31
December 2012.

19 Events occurring after 31 December 2012

With the exception of the proposed final dividend for 2012, included in note 9,
there have been no material reportable events since 31 December 2012.

Unaudited financial information

Production statistics
                                                                     (Restated)
                                                                               
                                                               2012       2011 


                                                                           
Europe & International                                                          
                                                                           
Containerboard                Tonnes                       2,079,005  2,009,984 
                                                                           
Kraft paper                   Tonnes                         980,637    955,741 
                                                                           
Softwood pulp                 Tonnes                       1,978,583  1,954,284 
                                                                           
Internal consumption          Tonnes                       1,825,916  1,799,577 
                                                                           
External                      Tonnes                         152,667    154,707 
                                                                           
Corrugated board and boxes    Mm²                              1,213      
1,213 
                                                                           
Industrial bags               M units                          3,829      3,958 
                                                                           
Coating and release liners    Mm²                              3,352      
3,357 
                                                                           
Consumer packaging1           Tonnes                         121,127     69,005 
                                                                           
Uncoated fine paper           Tonnes                       1,417,709  1,400,991 
                                                                           
Newsprint                     Tonnes                         201,278    199,337 
                                                                           
Hardwood pulp                 Tonnes                       1,059,140  1,033,226 
                                                                           
Internal consumption          Tonnes                         972,883    975,121 
                                                                           
External                      Tonnes                          86,257     58,105 
                                                                           
South Africa Division                                                           
                                                                           
Containerboard                Tonnes                         263,468    257,680 
                                                                           
Uncoated fine paper           Tonnes                         257,747    233,837 
                                                                           
Hardwood pulp                 Tonnes                         658,368    637,205 
                                                                           
Internal consumption          Tonnes                         320,772    316,388 
                                                                           
External                      Tonnes                         337,596    320,817 
                                                                           
Softwood pulp2                Tonnes                         169,724    182,651 
                                                                           
Internal consumption          Tonnes                         169,724    182,651 
                                                                           
Newsprint                     Tonnes                         114,854    124,914 


                                                                               

Notes:

1 Includes Nordenia from October 2012.

2 Restated to include proportionate share of Mondi Shanduka Newsprint
production.

Exchange rates
                                                                 2012      2011


                                                                           
Closing rates against the euro                                                  
                                                                           
South African rand                                              11.17     10.48 
                                                                           
Czech koruna                                                    25.15     25.79 
                                                                           
Polish zloty                                                     4.07      4.46 
                                                                           
Pounds sterling                                                  0.82      0.84 
                                                                           
Russian rouble                                                  40.33     41.77 
                                                                           
Turkish lira                                                     2.36      2.44 
                                                                           
US dollar                                                        1.32      1.29 
                                                                           
Average rates for the period against the euro                                   
                                                                           
South African rand                                              10.55     10.10 
                                                                           
Czech koruna                                                    25.14     24.59 
                                                                           
Polish zloty                                                     4.18      4.12 
                                                                           
Pounds sterling                                                  0.81      0.87 
                                                                           
Russian rouble                                                  39.91     40.88 
                                                                           
Turkish lira                                                     2.31      2.34 
                                                                           
US dollar                                                        1.29      1.39 
                                                                            
Sponsor in South Africa: UBS South Africa (Proprietary) Limited 
                                                                           
END 
-0- Feb/21/2013 07:00 GMT