MONDI PLC: Half-yearly Report

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 
8 August 2013 
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 JSE Listings
Requirements and/or the Disclosure and Transparency and Listing Rules of the
United Kingdom Listing Authority. 
Half-yearly results for the six months ended 30 June 2013 
Financial highlights 
* Underlying operating profit of €366 million, up 35% 


      * Underlying earnings of 49.4 euro cents per share, up 60%
      * Cash generated from operations of €431 million, up 21%
      * Interim dividend of 9.55 euro cents per share, up 7%
      * ROCE of 14.8%, well in excess of through-the-cycle hurdle rate of 13%
    Operational highlights

  * Integration of acquisitions and related synergy targets on track
      * Major capital projects on time and within budget
    Financial summary

€ million, except for percentages and per share  Six months Six months Six 
months
measures                                           ended 30   ended 30   ended 
31


                                              June 2013  June 2012   
December 
                                                        (Restated)       
2012 
                                                                 4 
(Restated) 
                                                                            
4 
                                                                             
Group revenue                                         3,342      2,819      
2,971 
                                                                             
Underlying EBITDA1                                      554        437        
490 
                                                                             
Underlying operating profit1                            366        272        
302 
                                                                             
Underlying profit before tax1                           310        216        
243 
                                                                             
Operating profit                                        285        272        
275 
                                                                             
Profit before tax                                       229        222        
146 
                                                                             
Per share measures                                                               
                                                                               
Basic underlying earnings per share (€ cents)          49.4       30.9       
38.3 
                                                                             
Basic earnings per share (€ cents)                     35.3       31.7       
18.4 
                                                                             
Interim dividend per share (€ cents)                   9.55       8.90         
                                                                                 
Free cash flow per share2 (€ cents)                    14.7       10.3       
42.4 
                                                                             
Cash generated from operations                          431        355        
494 
                                                                             
Net debt                                              1,844      1,257      
1,872 
                                                                             
Group Return on Capital Employed (ROCE)3 (%)           14.8       13.4       
13.6 
Notes: 
1 The Group presents underlying EBITDA, operating profit and profit before tax
as measures which exclude special items in order to provide a more effective
comparison of the underlying financial performance between reporting periods. 
2 Free cash flow per share is net increase in cash and cash equivalents before
the effects of acquisitions and disposals of businesses and changes in net debt
and dividends paid divided by the net number of shares in issue at the end of
the reporting period. 
3 ROCE is the 12 month rolling average underlying operating profit expressed as
a percentage of the average rolling 12 month capital employed, adjusted for
impairments and spend on strategic projects which are not yet in operation. 
4 The Group has restated comparative information following the adoption of
revised IFRS standards relating to consolidations, joint ventures and employee
benefits. Full details of the restatements are set out in note 2 of the
half-yearly financial statements. 
David Hathorn, Mondi Group chief executive, said: 
"A strong operating performance and benefits derived from our strategic
acquisitions completed towards the end of the previous year have enabled Mondi
to deliver record financial results despite what remains a challenging economic
backdrop. 
The strong profitability and relentless focus on performance is reflected in a
return on capital employed of 14.8%, which remains well above our
through-the-cycle hurdle rate of 13%. 
A focus over the past six months has been on integrating and optimising the
significant acquisitions made towards the end of 2012 and executing the major
expansion projects initiated over the past eighteen months. I am pleased to
report that we continue to make good progress in this regard. The Group's major
expansion projects are progressing according to plan and remain within budget.
Some of the synergies identified at the time of the acquisitions have already
been achieved, and we remain on track to meet the previously announced synergy
targets. Just as important, we have made good progress in aligning
organisational culture, which sets the platform for the future success of the
combined business. 
Looking forward, new industry capacity in the uncoated fine paper segment,
coupled with prevailing demand softness in Europe, may impact the supply/demand
balance in the short term. Furthermore, the second half will be impacted by the
Group's regular annual mill maintenance programmes.However, with the momentum
from the strong first half performance and the expected continuation of a good
pricing environment in the packaging grades, management remains confident of
delivering in line with its expectations." 
Contact details 
Mondi Group                                                                     
                                                                           
David Hathorn                           +27 11 994 5418                        
Andrew King                             +27 11 994 5415                        
Lora Rossler                            +27 83 627 0292                        
Kerry Crandon                           +27 83 389 3738                         
                                                                           
FTI Consulting                                                                  
                                                                           
Richard Mountain                        +44 20 7269 7186                       
Sophie McMillan                         +44 20 7909 684 466                    
Lerato Matsaneng                        +27 11 214 2421                         
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 10:00 (UK) and 11:00 (SA). 
The conference call dial-in numbers are: 
South Africa 0800 200 648 (toll-free) 
UK 0808 162 4061 (toll-free) 
Europe & Other +800 246 78 700 (toll-free) or +27 11 535 3600 
An online audio cast facility will be available via: www.mondigroup.com/
HYResults13. 
The presentation will be available online via the above website address an hour
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 8 August 2013. 
Capital Markets Day 
On 2 September 2013 Mondi will host a Capital Markets Day for investors and
analysts in London, where executive directors David Hathorn, Andrew King and
Peter Oswald, together with other key senior management, including business
unit heads and innovation managers, will share insights into the Mondi
business. 
Editors' notes 
Mondi is an international packaging and paper Group, with production operations
across 30 countries and revenue 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 Group employed 25,700 people. 
Mondi Group is fully integrated across the paper and packaging process, from
the growing of wood and the manufacture 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) FTSE350 Carbon Disclosure
Leadership Index for the third year and in CDP's FTSE350 Carbon Performance
Leadership Index 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. 
Any reference to future financial performance included in this announcement has
not been reviewed or reported on by the Group's auditors. 
Group performance review 
The positive momentum from the end of the previous year, with good sales
volumes and reasonable price levels in Europe, continued into the first half of
the year. The Group's underlying operating profit of €366 million, a record
result for the Group, was 21% above that of the second half of 2012 and 35%
above that of the comparable prior year period. This reflects both the strong
operating performance and reasonable trading environment, particularly in
Packaging Paper and the South Africa Division, and the benefit of the Group's
strategic acquisitions completed in the latter part of the previous year.
Excluding the impact of the major strategic acquisitions, underlying operating
profit increased by 12% compared to the second half of 2012 and 24% on the
comparable prior year period. The period under review also benefited from the
absence of any major mill maintenance shuts. 
Compared to the first half of 2012, sales volumes increased across all major
paper grades. While European demand remains generally sluggish, this was
compensated by market share gains, and in the case of kraft paper, strong gains
in export markets. A reasonable industry supply/demand dynamic, supported by
some supply side rationalisation, enabled the Group to maintain or increase
selling prices in most key paper grades during the period. 
The Group's annual major maintenance shuts will all take place in the second
half of the year, the impact of which, at prevailing profit margins, is
estimated to be in the range of €50 million to €60 million on underlying
operating profit when compared to the first half of the year. 
At the underlying earnings per share level, in addition to the strong
underlying operating profit, the Group benefited from a lower effective tax
rate and a lower non-controlling interest charge, the latter positively
impacted by the acquisition of the remaining minority interest in Mondi Swiecie
in the first half of 2012. Underlying earnings per share in the six months
ended 30 June 2013 was 49.4 euro cents per share, a 60% increase on the
comparable prior year period and 29% better than that achieved in the second
half of 2012. 
The Group remains strongly cash generative with cash generated from operations
of €431 million. Working capital as a percentage of turnover was 13%,
reflecting the normal seasonal pick-up in the first half of the year as well as
the changing business mix following the acquisition of Nordenia in the fourth
quarter of 2012. 
Capital expenditure of €167 million represents 89% of the Group's 
depreciation
charge. Good progress is being made on the major strategic projects, which
should see the rate of capital expenditure increase in the second half as
planned. 
Net debt of €1,844 million at 30 June 2013 decreased from €1,872 million at 
31
December 2012. The bias of the Group's financing related outflows towards the
first half, coupled with the increase in working capital levels negatively
impacted net debt. This was offset by exchange gains of around €41 million 
from
the devaluation of certain currencies in which the Group's net debt is held,
most notably the South African rand and Russian rouble. 
An interim dividend of 9.55 euro cents per share, up 7% on the prior year
interim dividend of 8.90 euro cents per share, has been declared. 
Europe & International - Packaging Paper 
€ million, unless otherwise stated                       Six      Six       
Six 


                                                      months   months    months
                                                    ended 30 ended 30  ended 31
                                                        June     June  December
                                                        2013     2012      2012


                                                                           
Segment revenue                                        1,043      960       936 
                                                                           
- of which inter-segment revenue                         267      249       220 
                                                                           
EBITDA                                                   195      150       171 
                                                                           
Underlying operating profit                              148      104       123 
                                                                           
Capital expenditure                                       55       34        55 
                                                                           
Net segment assets                                     1,441    1,373     1,466 
                                                                           
ROCE %                                                  20.1     18.5      17.9 
Packaging Paper benefited from increased sales volumes and higher average
selling prices compared to both the comparable prior year period, and the
previous six months. These positive trading conditions resulted in an
underlying operating profit of €148 million, 42% above the comparable prior
year period, delivering a very strong ROCE of 20.1%. 
Sales volumes increased for all grades despite a generally soft demand
environment in Europe. The business benefited from market share gains and good
demand in export markets for kraft paper. Selling price increases were achieved
across all containerboard grades during the second quarter. In recycled
containerboard, increased competitor capacity in Poland has to date only had a
muted effect on markets, while the recently announced capacity closures in the
UK have served to improve market fundamentals. Nonetheless, industry
profitability in the recycled containerboard grades remains unsatisfactory.
During July, the Group announced price increases of €50/tonne for recycled
containerboard, to take effect from August 2013. In kraft paper, the pricing
environment remained stable, with Europe remaining under pressure but offset by
continued good export markets. 
Except for paper for recycling costs, which were lower than the comparable
prior year period, input costs per tonne were largely unchanged. Average
benchmark paper for recycling costs were 4% higher than the second half of the
previous year. Synergy benefits, in the form of reduced transport and logistics
costs from the acquisition of the corrugated box plants in Germany and the
Czech Republic in the latter half of 2012, were realised during the period.
Production and productivity were strong in all mills, with the white-top
kraftliner mill in Syktyvkar showing a notable improvement. 
The market price of green energy credits in Poland remained below prevailing
levels of the previous year as a consequence of ongoing uncertainty created by
proposed changes to the regulatory environment surrounding renewable energy in
Poland. As previously reported, the carrying value of green energy credits was
written down by €11 million in the first quarter of the year. In addition, 
the
benefits from green energy credits in Poland in the first half of 2013 were
more than 50% lower than the comparable prior year period. 
Europe & International - Fibre Packaging 
€ million, unless otherwise stated                       Six      Six       
Six 


                                                      months   months    months
                                                    ended 30 ended 30  ended 31
                                                        June     June  December
                                                        2013     2012      2012


                                                                           
Segment revenue                                        1,002      946       914 
                                                                           
- of which inter-segment revenue                          17       19        23 
                                                                           
EBITDA                                                    83       80        88 
                                                                           
Underlying operating profit                               48       47        54 
                                                                           
Capital expenditure                                       35       28        48 
                                                                           
Net segment assets                                       982      916       958 
                                                                           
ROCE %                                                  12.0     10.9      12.5 
Underlying operating profit of €48 million was in line with the comparable
prior year period, but below that of the second half of the previous year as
the business was impacted by higher input costs, primarily due to rising paper
prices. 
The acquisition of the corrugated box plants in Germany and the Czech Republic
in the last quarter of 2012 contributed positively to underlying operating
profit in the corrugated business. However, paper input price increases put
pressure on margins, offsetting in large part the gains from the acquisitions. 
Industrial bags benefited from good demand from the US and Middle East,
offsetting reduced sales volumes in central and western Europe. Margins were at
similar levels to the comparable prior year period, supported by strong cost
reduction initiatives. 
Weak demand, particularly for automotive and building applications, and
increasing raw material costs, coupled with increased competitor capacity have
impacted on margins in the coatings business. 
Europe & International - Consumer Packaging 
€ million, unless otherwise stated                       Six      Six       
Six 


                                                      months   months    months
                                                    ended 30 ended 30  ended 31
                                                        June     June  December
                                                        2013     2012      2012


                                                                           
Segment revenue                                          582      150       352 
                                                                           
- of which inter-segment revenue                           2        1         3 
                                                                           
EBITDA                                                    66       15        30 
                                                                           
Underlying operating profit                               39       10         9 
                                                                           
Capital expenditure                                       24        7        21 
                                                                           
Net segment assets                                       875      145       872 
                                                                           
ROCE % - adjusted*                                      10.1     14.6      10.8 
* Adjusted to exclude €14 million of one-off costs in the second half of 2012
relating to the acquisition of Nordenia 
Consumer Packaging generated underlying operating profit of €39 million with 
an
adjusted ROCE of 10.1%. The significant increase in underlying operating profit
versus both the comparable prior year period and the second half of the
previous year is due to the acquisition of Nordenia, completed on 1 October
2012. The comparability of the results for the second half of 2012 were further
impacted by one-off effects associated with the acquisition of €14 million. 
On
a pro-forma basis, assuming Nordenia was acquired at the beginning of 2012, and
excluding the effects of acquisition accounting, the underlying operating
profit of the combined business increased by around 11% versus the comparable
prior year period. 
Sales volumes were marginally down on the comparable prior year period, driven
by weakness in the films business. This was more than compensated by the
delivery of net synergy gains and other cost reduction initiatives. 
Integration activities remain well on track, with delivery of synergies in line
with expectations. The previously announced closure of the Lindlar operation in
Germany and resulting transfer of production to plants in Germany, Hungary and
the Czech Republic is progressing according to plan. 
Europe & International - Uncoated Fine Paper 
€ million, unless otherwise stated                       Six      Six       
Six 


                                                      months   months    months
                                                    ended 30 ended 30  ended 31
                                                        June     June  December
                                                        2013     2012      2012


                                                                           
Segment revenue                                          740      749       717 
                                                                           
- of which inter-segment revenue                           8        8         5 
                                                                           
EBITDA                                                   157      154       146 
                                                                           
Underlying operating profit                              102      100        91 
                                                                           
Capital expenditure                                       36       24        34 
                                                                           
Net segment assets                                     1,176    1,270     1,248 
                                                                           
ROCE %                                                  17.4     15.7      16.7 
Uncoated Fine Paper generated underlying operating profit of €102 million,
marginally above the comparable prior year period. Sales volumes were slightly
above that of the comparable prior year period, mainly due to the timing of the
annual maintenance shut in Syktyvkar which took place in June of the previous
year and will take place in the third quarter of 2013. Average net selling
prices were lower than the comparable prior year period and the second half of
the previous year. The stronger Russian rouble in the early part of the year
resulted in increased competition from importers, impacting margins in that
region. This was partly compensated by further cost reduction initiatives. 
Sales volumes into western Europe continue to be affected by the structural
decline in those markets whilst central and eastern Europe remain largely
unchanged. Sales volumes into Russia and overseas markets increased. To date
there has been little market impact from the new capacity coming on stream from
competitors in Russia and France. 
In May 2013, Mondi announced plans to restructure the non-integrated Neusiedler
operation to improve the competitiveness of the mill. Negotiations with
employee unions are currently in progress. An impairment charge of €42 
million
and related restructuring costs of €8 million were recognised as a special 
item
in the period. 
Input costs remain well controlled. Unit wood costs at both the Syktyvkar and
Ruzomberok mills decreased, with the benefits from improved forestry management
practices at Syktyvkar offsetting inflationary cost pressures. Higher pulp
prices negatively impacted margins at the non-integrated Neusiedler mill. Fixed
cost increases continue to be well controlled with increases below inflation. 
South Africa Division 
€ million, unless otherwise stated                       Six      Six       
Six 


                                                      months   months    months
                                                    ended 30 ended 30  ended 31
                                                        June     June  December
                                                        2013     2012      2012


                                                        
(restated)(restated)             
Segment revenue                                          325      348       354 
                                                                           
- of which inter-segment revenue                          56       57        51 
                                                                           
EBITDA                                                    67       56        69 
                                                                           
Underlying operating profit                               44       29        40 
                                                                           
Capital expenditure                                       14       17        26 
                                                                           
Net segment assets                                       687      903       821 
                                                                           
ROCE %                                                  12.8      9.1       9.6 
Comparative information has been restated with Mondi Shanduka Newsprint now
consolidated as a subsidiary for all periods presented. 
South Africa Division delivered a strong performance, with underlying operating
profit of €44 million, a 52% increase on the comparable prior year period, 
and
ROCE of 12.8%. This reflects the impact of higher domestic selling prices, good
domestic containerboard volume growth, and improved export margins due to the
weaker South African rand coupled with higher average export pulp and
containerboard prices. 
South Africa Division continues to focus on cost containment, in particular on
reducing forestry costs through increased mechanisation in the current year. 
Comparison with the previous six months is distorted by a large fair value gain
on the revaluation of forestry assets of €27 million recognised in the six
months to end 2012. The comparable amount for the first half of 2013 was €10
million. 
In May 2013, Mondi announced the proposed closure of one of the two newsprint
machines located in Merebank. The machine stopped production with effect from 1
July 2013. The business will continue to operate the remaining 120,000 tonne
per annum newsprint machine. Further restructuring activities in the Merebank
mill as a result of the closure of the newsprint machine were also implemented.
In total, a special item charge of €18 million was recognised. 
Financial review 
Input costs 
Wood costs were, on average, lower than the comparable prior period and reflect
a steady downward trend over the last three half-year periods. 
Average benchmark hardwood pulp prices increased by 7% from the comparable
prior year period and by 1% over the second half of 2012, largely as a
consequence of price increases in the second quarter. Softwood pulp prices
increased by 3% over the second half of 2012, but remained 1% below the average
in the comparable prior year period. 
Average benchmark paper for recycling prices were 15% lower than the comparable
prior year period but 4% higher than the prices of the second half of 2012. 
The average benchmark low density polyethylene price, an indicator of the key
raw material input cost in Consumer Packaging, was at similar levels to the
comparable prior year period and 1% above that of the second half of 2012.
Average prices decreased by approximately 6% in the second quarter from the
levels experienced at the beginning of the year. 
Currencies 
With the exception of the South African rand, the currencies in which the Group
operates continue to trade within a relatively narrow range and the impact on
underlying operating profit remains muted. The South African rand weakened by a
further 12% against the euro from the average rate in the second half of the
prior year and has weakened by more than 25% from levels at June 2012. This
devaluation provided a net benefit to the Group due to South Africa Division's
large export position (accounting for approximately 40% of sales) and
predominantly rand-denominated cost base. 
Non-controlling interests 
The reduction in earnings attributable to non-controlling interests is largely
as a result of the acquisition of the remaining minority interest in Mondi
Swiecie in the second quarter of 2012, offset in part by higher net earnings at
the 51% owned Ruzomberok mill. 
Tax 
The Group's underlying effective tax rate of 18% is lower than the comparable
prior year period primarily due to a favourable underlying profit mix as well
as the continued benefit of investment incentives in eastern Europe,
principally in Poland. 
Special items 
The net special item charge of €81 million before tax, the cash component of
which amounts to €26 million, is attributable to: 
* the closure of Consumer Packaging's Lindlar operation in Germany  


    (€13 million)
      * the closure of the newsprint machine in Merebank, South Africa and related
    restructuring activities (€18 million), and
      * impairment of Uncoated Fine Paper's Neusiedler mill and related
    restructuring costs (€50 million)
    Cash flow

Cash generated from operations of €431 million, including the impact of the
increase in working capital of €129 million, reflects the continued strong 
cash
generating capacity of the Group.

Net cash outflows from financing activities of €178 million include the 
payment
of dividends to holders of non-controlling interests, the payment of the final
2012 dividend in May 2013 and payment of the 5.75% coupon on the €500 million
Eurobond, reflecting the bias of financing activities towards the first half of
the year.

Capital expenditure

Capital expenditure for the period amounted to €167 million, 89% of
depreciation.

The energy investments in the Group's Frantschach, Richards Bay and
Stambolijski mills are progressing in line with expectations and are expected
to be completed towards the end of the second half of the year. These projects
will significantly improve the energy efficiency and self-sufficiency at those
mills. Good progress is being made on the other major projects announced
earlier in the year, with the bleached kraft paper machine in Steti expected to
start up in the first half of 2014 and the recovery boiler in Ruzomberok in the
latter part of 2014.

The Group's capital expenditure is expected to remain around the previously
envisaged range of approximately 125% of depreciation on average over the 2013/
2014 period, with 2014 being the peak spend year.

Treasury and borrowings

Net debt at 30 June 2013 was €1,844 million, a decrease of €28 million from 
31
December 2012. The net debt to 12 month trailing EBITDA ratio was 1.8 times and
gearing at 30 June 2013 was 40%.

At the end of June 2013, the €100 million European Investment Bank facility 
put
in place in December 2011 was fully drawn down. The amortising loan matures in
2025 and incurs interest based on Euribor.  The South African bilateral
facilities that matured in the first half of 2013 have been extended for an
additional year on similar terms. At 30 June 2013, the Group had €2.6 billion
of committed facilities of which €743 million were undrawn. The weighted
average maturity of the Eurobonds and committed debt facilities was 4.0 years
at 30 June 2013.

The Group's long-term investment grade credit ratings of Baa3 (Moody's Investor
Services) and BBB- (Standard and Poor's) were reaffirmed during the period.

Finance charges of €57 million were similar to those of the comparable prior
year notwithstanding the significant increase in average net debt from the
levels at 30 June 2012. The lower effective interest rate of 5.5% (first half
of 2012: 9.4%) is due to the effect of the €500 million Eurobond issued in
October 2012 with a coupon of 3.375% and the unwinding of various fixed rate
swaps during 2012.

Dividend

An interim dividend of 9.55 euro cents per share has been declared by the
directors and will be paid on 17 September 2013 to those shareholders on the
register of Mondi plc on 23 August 2013.  An equivalent South African rand
interim dividend will be paid on 17 September 2013 to shareholders on the
register of Mondi Limited on 23 August 2013.  The dividend will be paid from
distributable reserves of Mondi Limited and of Mondi plc, as presented in the
respective company annual financial statements for the year ended 31 December
2012.

Outlook

New industry capacity in the uncoated fine paper segment, coupled with
prevailing demand softness in Europe, may impact the supply/demand balance in
the short term. Furthermore, the second half will be impacted by the Group's
regular annual mill maintenance programmes. However, with the momentum from the
strong first half performance and the expected continuation of a good pricing
environment in the packaging grades, management remains confident of delivering
in line with its expectations.

Supplementary information

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 paper for recycling) and resins account 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 (paper for recycling and resins) and, where possible, has 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) at 30
June 2013 was 0.76 (31 December 2012: 0.79). Regrettably, there were two
fatalities at our Syktyvkar operations in the first half of the year.

Environmental footprint

Maintaining the Group's socio-economic licence 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 life cycle 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 were set out in
the Corporate governance report in the integrated report 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 for the year ended 31 December 2012.

Going concern

The Group's business activities, together with the factors likely to affect its
future development, performance and position are set out above. The financial
position of the Group, its cash flows, liquidity position and borrowing
facilities are described in the financial statements.

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. 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 
€743 million of undrawn committed debt facilities as at 30 June 2013 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 Group's strategy and latest financial
forecasts, considered the assumptions in the forecast 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, the going concern basis continues to be adopted in preparing the
half-yearly financial statements.

Directors' responsibility statement

The directors confirm that to the best of their knowledge:

  * the condensed set of combined and consolidated financial statements has
    been prepared in accordance with International Financial Reporting
    Standards and in particular with International Accounting Standard 34,
    `Interim Financial Reporting';
      * the half-yearly report includes a fair review of the important events
    during the six months ended 30 June 2013 and a description of the principal
    risks and uncertainties for the remaining six months of the year ending 31
    December 2013;
      * there have been no significant individual related party transactions during
    the first six months of the financial year;
      * with effect from 3 May 2013, Cyril Ramaphosa ceased to be a director of
    Mondi Limited and Mondi plc.  As a result, all transactions with the
    Shanduka Group Proprietary Limited, in which Mr Ramaphosa held a 29.6%
    interest, and its subsidiaries, are no longer classified as related party
    transactions from that date; and
      * there have been no other significant changes in the Group's related party
    relationships.


David Hathorn                                Andrew King
Director                                     Director 
7 August 2013 
Independent auditor's review report on interim financial information of Mondi
Limited 
We have reviewed the accompanying interim financial information of Mondi
Limited, comprising the condensed statement of financial position as of 30 June
2013 and the condensed statement of comprehensive income, condensed statement
of changes in equity, condensed statement of cash flows and selected
explanatory notes for the six months then ended. 
Directors' responsibility for the Interim Financial Statements 
The directors are responsible for the preparation and presentation of this
interim financial information in accordance with International Financial
Reporting Standard (IAS 34),`Interim Financial Reporting', the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and the
requirements of the Companies Act of South Africa, and for such internal
control as the directors determine is necessary to enable the preparation of
interim financial statements that are free from material misstatement, whether
due to fraud or error. 
Auditor's responsibility 
Our responsibility is to express a conclusion on these interim financial
statements based on our review. We conducted our review in accordance with
International Standard on Review Engagements (ISRE) 2410, `Review of Interim
Financial Information Performed by the Independent Auditor of the Entity'. This
standard requires us to conclude whether anything has come to our attention
that causes us to believe that the interim financial statements are not
prepared in all material respects in accordance with the applicable financial
reporting framework. This standard also requires us to comply with relevant
ethical requirements. 
A review of interim financial statements in accordance with this standard
consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and consequently does not enable the
auditor to obtain assurance that the auditor would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion. 
We believe that the evidence we have obtained in our review is sufficient and
appropriate to provide a basis for our conclusion. 
Conclusion 
Based on our review, nothing has come to our attention that causes us to
believe that the accompanying interim financial information of Mondi Limited
for the six months ended 30 June 2013 are not prepared, in all material
respects, in accordance with International Financial Reporting Standards (IAS
34),'Interim Financial Reporting', the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and the requirements of the
Companies Act of South Africa. 
Deloitte & Touche
Registered Auditor 
Per: Bronwyn Kilpatrick
Partner
7 August 2013 
Buildings 1 and 2, Deloitte Place, The Woodlands,
Woodlands Drive, Woodmead, Sandton, Republic of South Africa 
National Executive: LL Bam Chief Executive AE Swiegers Chief Operating Officer 
GM Pinnock Audit DL Kennedy Risk Advisory NB Kader Tax TP Pillay Consulting K
Black Clients & Industries JK Mazzocco Talent & Transformation CR Beukman
Finance M Jordan Strategy S Gwala Special Projects TJ Brown Chairman of the
Board MJ Comber Deputy Chairman of the Board. 
A full list of partners and directors is available on request. 
B-BBEE rating: Level 2 contributor in terms of the Chartered Accountancy
Profession Sector Code 
Member of Deloitte Touche Tohmatsu Limited 
Independent review report to Mondi plc 
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2013, which comprises the condensed combined and consolidated income statement,
the condensed combined and consolidated statement of comprehensive income, the
condensed combined and consolidated statement of financial position, the
condensed combined and consolidated statement of cash flows, the condensed
combined and consolidated statement of changes in equity and the related notes
1 to 22. We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
financial statements. 
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410,'Review of Interim
Financial Information Performed by the Independent Auditor of the Entity',
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our review work, for this report, or for the conclusions
we have formed. 
Directors' responsibilities 
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Conduct Authority. 
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union. The condensed set of financial statements
included in this half-yearly financial report has been prepared in accordance
with International Accounting Standard 34,`Interim Financial Reporting', as
adopted by the European Union. 
Our responsibility 
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. 
Scope of review 
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410,'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity', issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion. 
Conclusion 
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2013 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority. 
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
7 August 2013 
Condensed combined and consolidated income statement
for the six months ended 30 June 2013 


                                                         (Restated)             
    (Restated)        
                              (Reviewed)                 (Reviewed)             
     (Audited)        
                          Six     months   ended     Six     months   ended     
          Year   ended


                       30       June    2013      30       June    2012     
 31   December    2012 
                                                                             
                  
€ million       Notes  Before    Special   After  Before    Special   After  
Before    Special   After 
                  special      items special special      items special 
special      items special 
                    items   (note 6)   items   items   (note 6)   items   
items   (note 6)   items 
                                                                             
                  
Group revenue       4   3,342          -   3,342   2,819          -   2,819   
5,790          -   5,790 
                                                                             
                  
Materials,            (1,758)          - (1,758) (1,478)          - (1,478) 
(3,024)          - (3,024)
energy and                                                                       
                  
consumables                                                                      
                  
used                                                                             


                      
                                                                                


                  
Variable                (282)          -   (282)   (266)          -   (266)   
(527)          -   (527)
selling                                                                          
                  
expenses                                                                         


                      
                                                                                


                  
Gross margin            1,302          -   1,302   1,075          -   1,075   
2,239          -   2,239 
                                                                             
                  
Maintenance and         (122)          -   (122)   (123)          -   (123)   
(279)          -   (279)
other indirect                                                                   
                  
expenses                                                                         


                      
                                                                                


                  
Personnel costs         (484)       (16)   (500)   (409)          -   (409)   
(834)       (16)   (850) 
                                                                             
                  
Other net               (142)       (10)   (152)   (106)          -   (106)   
(199)       (10)   (209)
operating                                                                        
                  
expenses                                                                         


                      
                                                                                


                  
Depreciation,           (188)       (55)   (243)   (165)          -   (165)   
(353)        (1)   (354)
amortisation                                                                     
                  
and impairments                                                                  


                      
                                                                                


                  
Operating         4;5     366       (81)     285     272          -     272     
574       (27)     547
profit/(loss)                                                                    


                      
                                                                                


                  
Non-operating       6       -          -       -       -          6       6     
  -       (64)    (64)
special items                                                                    


                      
                                                                                


                  
Net income/                 1          -       1     (1)          -     (1)     
(5)          -     (5)
(loss) from                                                                      
                  
associates                                                                       


                      
                                                                                


                  
Total profit/             367       (81)     286     271          6     277     
569       (91)     478
(loss) from                                                                      
                  
operations and                                                                   
                  
associates                                                                       


                      
                                                                                


                  
Net finance              (57)          -    (57)    (55)          -    (55)   
(110)          -   (110)
costs                                                                            


                      
                                                                                


                  
Investment                  2          -       2       -          -       -     
  4          -       4
income                                                                           


                      
                                                                                


                  
Foreign                   (1)          -     (1)     (3)          -     (3)     
(2)          -     (2)
currency losses                                                                  


                      
                                                                                


                  
Finance costs       7    (58)          -    (58)    (52)          -    (52)   
(112)          -   (112) 
                                                                             
                  
Profit/(loss)             310       (81)     229     216          6     222     
459       (91)     368
before tax                                                                       


                      
                                                                                


                  
Tax (charge)/       8    (56)         13    (43)    (43)        (2)    (45)    
(90)        (1)    (91)
credit                                                                           


                      
                                                                                


                  
Profit/(loss)             254       (68)     186     173          4     177     
369       (92)     277
for the                                                                          
                   
financial period                                                                 


                       
                                                                                


                  
Attributable                                                                     
                  
to:                                                                              


                      
                                                                                


                  
Non-controlling                               15                         24      
                35
interests                                                                        


                      
                                                                                


                  
Equity holders                               171                        153      
               242
of the parent                                                                    
                  
companies                                                                        


                      
                                                                                


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


                      
                                                                                


                  
Basic EPS (€        9                       35.3                       31.7    
                50.1
cents)                                                                           


                      
                                                                                


                  
Diluted EPS (€      9                       35.3                       31.6    
                49.9
cents)                                                                           


                      
                                                                                


                  
Basic               9                       49.4                       30.9      
              69.2
underlying EPS                                                                   
                  
(€ cents)                                                                      


                        
                                                                                


                  
Diluted             9                       49.3                       30.8      
              68.9
underlying EPS                                                                   
                  
(€ cents)                                                                      


                        
                                                                                


                  
Basic headline      9                       45.7                       30.9      
              62.9
EPS (€ cents)                                                                  


                        
                                                                                


                  
Diluted             9                       45.6                       30.8      
              62.7
headline EPS (€                                                                
                    
cents)                                                                           


                      
                                                                                
                      



Condensed combined and consolidated statement of comprehensive income
for the six months ended 30 June 2013

€ million                                                   (Restated) 
(Restated)


                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Profit for the financial period                         186        177        
277 
                                                                             
Other comprehensive (expense)/income:                                            
                                                                               
Items that may subsequently be reclassified to                                   
the combined and consolidated income statement:                                  
                                                                               
Effect of cash flow hedges                                -          3          
2 
                                                                             
Gains on available-for-sale investments                   -          -          
1 
                                                                             
Exchange differences on translation of foreign        (145)         48         
49
operations                                                                       
                                                                               
Share of other comprehensive income of                  (1)          -          
-
associates                                                                       
                                                                               
Tax effect thereof                                        -          -          
- 
                                                                             
Items that will not subsequently be reclassified                                 
to the combined and consolidated income                                          
statement:                                                                       
                                                                               
Remeasurement of post-retirement benefit schemes         18       (35)       
(61) 
                                                                             
Effect of asset ceiling on post-retirement              (1)         24         
28
benefit schemes                                                                  
                                                                               
Tax effect thereof                                      (4)          -          
8 
                                                                             
Other comprehensive (expense)/income for the          (133)         40         
27
financial period, net of tax                                                     
                                                                               
Total comprehensive income for the financial             53        217        
304
period                                                                           
                                                                               
Attributable to:                                                                 
                                                                               
Non-controlling interests                                 9         35         
42 
                                                                             
Equity holders of the parent companies                   44        182        
262 
                                                                             
Condensed combined and consolidated statement of financial position
as at 30 June 2013 
€ million                                  Notes                       
(Restated) 
                                                        (Restated)  
(Audited) 
                                             (Reviewed) (Reviewed)      As 
at 
                                                  As at      As at         
31  
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Intangible assets                                       684        243        
695 
                                                                             
Property, plant and equipment                         3,446      3,431      
3,709 
                                                                             
Forestry assets                               11        257        318        
311 
                                                                             
Investments in associates                                 6         18          
6 
                                                                             
Financial asset investments                              25         24         
26 
                                                                             
Deferred tax assets                                       8          5         
10 
                                                                             
Retirement benefits surplus                   12          2          6          
- 
                                                                             
Derivative financial instruments                          -          2          
- 
                                                                             
Total non-current assets                              4,428      4,047      
4,757 
                                                                             
Inventories                                             767        663        
783 
                                                                             
Trade and other receivables                           1,112        927      
1,010 
                                                                             
Current tax assets                                       17          5         
10 
                                                                             
Financial asset investments                               1          -          
1 
                                                                             
Cash and cash equivalents                    17b         84         60         
56 
                                                                             
Derivative financial instruments                          9          5          
4 
                                                                             
Assets held for sale                                      -          -          
2 
                                                                             
Total current assets                                  1,990      1,660      
1,866 
                                                                             
Total assets                                          6,418      5,707      
6,623 
                                                                             
Short-term borrowings                      17b-c      (265)      (294)      
(281) 
                                                                             
Trade and other payables                            (1,008)      (874)    
(1,029) 
                                                                             
Current tax liabilities                                (69)       (81)       
(66) 
                                                                             
Provisions                                             (75)       (34)       
(67) 
                                                                             
Derivative financial instruments                        (4)        (5)        
(4) 
                                                                             
Total current liabilities                           (1,421)    (1,288)    
(1,447) 
                                                                             
Medium and long-term borrowings              17c    (1,664)    (1,023)    
(1,648) 
                                                                             
Retirement benefits obligation                12      (225)      (217)      
(253) 
                                                                             
Deferred tax liabilities                              (291)      (319)      
(344) 
                                                                             
Provisions                                             (33)       (29)       
(33) 
                                                                             
Derivative financial instruments                        (1)        (1)        
(1) 
                                                                             
Other non-current liabilities                          (19)       (19)       
(24) 
                                                                             
Total non-current liabilities                       (2,233)    (1,608)    
(2,303) 
                                                                             
Total liabilities                                   (3,654)    (2,896)    
(3,750) 
                                                                             
Net assets                                            2,764      2,811      
2,873 


                                                                                
                                                                                  


                                                                               
Equity                                                                           
                                                                               
Share capital and stated capital                        542        542        
542 
                                                                             
Retained earnings and other reserves                  1,963      1,973      
2,030 
                                                                             
Total attributable to equity holders of               2,505      2,515      
2,572
the parent companies                                                             
                                                                               
Non-controlling interests in equity                     259        296        
301 
                                                                             
Total equity                                          2,764      2,811      
2,873 
                                                                             
Condensed combined and consolidated statement of financial position
as at 30 June 2013 (continued) 
The Group's condensed combined and consolidated financial statements, and
related notes 1 to 22, were approved by the Boards and authorised for issue on
7 August 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 six months ended 30 June 2013 
€ million                                  Notes            (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Cash generated from operations               17a        431        355        
849 
                                                                             
Dividends from associates                                 -          -          
1 
                                                                             
Dividends from other investments                          -          -          
1 
                                                                             
Income tax paid                                        (75)       (45)      
(109) 
                                                                             
Net cash generated from operating                       356        310        
742
activities                                                                       
                                                                               
Cash flows from investing activities                                             
                                                                               
Investment in property, plant and                     (164)      (110)      
(294)
equipment                                                                        
                                                                               
Investment in intangible assets                         (3)        (3)        
(9) 
                                                                             
Investment in forestry assets                          (20)       (30)       
(51) 
                                                                             
Investment in financial asset investments               (4)        (4)        
(7) 
                                                                             
Proceeds from the disposal of property,                  21          5         
15
plant and equipment and intangible assets                                        
                                                                               
Proceeds from the disposal of financial                   4          4          
4
asset investments                                                                
                                                                               
Acquisition of subsidiaries, net of cash      14          -       (34)      
(381)
and cash equivalents                                                             
                                                                               
Investment in associates                                  -          -       
(43) 
                                                                             
Proceeds from the disposal of businesses,                 3          1          
1
net of cash and cash equivalents                                                 
                                                                               
Loan (advances to)/repayments from related                -        (3)          
1
parties                                                                          
                                                                               
Loan repayments from external parties                     -          -         
16 
                                                                             
Interest received                                         2          1          
3 
                                                                             
Other investing activities                                -          -        
(1) 
                                                                             
Net cash used in investing activities                 (161)      (173)      
(746) 
                                                                             
Cash flows from financing activities                                             
                                                                               
Repayment of short-term borrowings           17c       (19)       (59)      
(114) 
                                                                             
Proceeds from medium and long-term           17c        108        291        
613
borrowings                                                                       
                                                                               
Repayment of medium and long-term            17c       (52)       (51)       
(65)
borrowings                                                                       
                                                                               
Interest paid                                          (68)       (59)       
(92) 
                                                                             
Dividends paid to equity holders of the       10       (92)       (85)      
(128)
parent companies                                                                 
                                                                               
Purchases of treasury shares                           (23)       (34)       
(34) 
                                                                             
Dividends paid to non-controlling             10       (50)       (29)       
(29)
interests                                                                        
                                                                               
Non-controlling interests bought out          13        (2)      (296)      
(298) 
                                                                             
Net realised gain/(loss) on held for                     16          2        
(9)
trading derivatives                                                              
                                                                               
Government grants received                                2          -          
- 
                                                                             
Other financing activities                                2          -          
- 
                                                                             
Net cash used in financing activities                 (178)      (320)      
(156) 
                                                                             
Net increase/(decrease) in cash and cash                 17      (183)      
(160)
equivalents                                                                      
                                                                               
Cash and cash equivalents at beginning of    17c       (37)        119        
119
financial period1                                                                
                                                                               
Cash movement in the financial period        17c         17      (183)      
(160) 
                                                                             
Effects of changes in foreign exchange       17c         11        (1)          
4
rates                                                                            
                                                                               
Cash and cash equivalents at end of                     (9)       (65)       
(37)
financial period1                                                                
                                                                               
Note: 
1 Cash and cash equivalents include overdrafts and cash flows from disposal
groups and are reconciled to the condensed combined and consolidated statement
of financial position in note 17b. 
Condensed combined and consolidated statement of changes in equity
for the six months ended 30 June 2013 
€ million              Combined                          Total                 


    
                          share                   attributable                  
                           capital                      to equity                  
                               and                     holders of        Non-      


                        stated Retained    Other   the parent controlling   
Total 
                    capital earnings reserves    companies   interests  
equity 
                                                                             
At 31 December 2011,        542    2,041        3        2,586         449   
3,035
as previously reported                                                           
                                                                                
Effect of restatement         -        -        -            -         (3)     
(3) 
                                                                             
At 1 January 2012           542    2,041        3        2,586         446   
3,032
(Restated)                                                                       
                                                                                
Total comprehensive           -      153       29          182          35     
217
income for the                                                                   
financial period                                                                 
                                                                                
Dividends paid                -     (85)        -         (85)        (29)   
(114) 
                                                                             
Issue of shares under         -        9      (9)            -           -      
 -
employee share schemes                                                           
                                                                                
Purchases of treasury         -     (34)        -         (34)           -    
(34)
shares                                                                           
                                                                                
Non-controlling               -    (140)        -        (140)       (156)   
(296)
interests bought out                                                             
                                                                                
Other                         -        -        6            6           -      
 6 
                                                                             
At 30 June 2012             542    1,944       29        2,515         296   
2,811
(Restated)                                                                       
                                                                                
Total comprehensive           -       89      (9)           80           7      
87
income for the                                                                   
financial period                                                                 
                                                                                
Dividends paid                -     (43)        -         (43)           -    
(43) 
                                                                             
Disposal of businesses        -        -       15           15           -      
15
(see note 16)                                                                    
                                                                                
Non-controlling               -      (1)        -          (1)         (1)     
(2)
interests bought out                                                             
                                                                                
Reclassification              -     (12)       12            -           -      
 - 
                                                                             
Other                         -        2        4            6         (1)      
 5 
                                                                             
At 31 December 2012         542    1,979       51        2,572         301   
2,873
(Restated)                                                                       
                                                                                
Total comprehensive           -      171    (127)           44           9      
53
income for the                                                                   
financial period                                                                 
                                                                                
Dividends paid                -     (92)        -         (92)        (50)   
(142) 
                                                                             
Issue of shares under         -       10     (10)            -           -      
 -
employee share schemes                                                           
                                                                                
Purchases of treasury         -     (23)        -         (23)           -    
(23)
shares                                                                           
                                                                                
Non-controlling               -      (1)        -          (1)         (1)     
(2)
interests bought out                                                             
                                                                                
Other                         -        -        5            5           -      
 5 
                                                                             
At 30 June 2013             542    2,044     (81)        2,505         259   
2,764 


                                                                                
    Other reserves                                                                  


                                                                               
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Share-based payment reserve                              13         14         
18 
                                                                             
Cumulative translation adjustment reserve             (291)      (171)      
(151) 
                                                                             
Cash flow hedge reserve                                   -          1          
- 
                                                                             
Post-retirement benefit reserve                        (56)       (66)       
(69) 
                                                                             
Merger reserve                                          259        259        
259 
                                                                             
Other sundry reserves                                   (6)        (8)        
(6) 
                                                                             
Group total                                            (81)         29         
51 
                                                                             
Notes to the condensed combined and consolidated financial statements for the
six months ended 30 June 2013 
1 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 under International Financial
Reporting Standards (IFRS). 
The condensed combined and consolidated half-yearly financial information for
the six months ended 30 June 2013 has been prepared in accordance with IAS 34,
`Interim Financial Reporting'. It should be read in conjunction with the
Group's annual financial statements for the year ended 31 December 2012,
prepared in accordance with IFRS as issued by the International Accounting
Standards Board (IASB). 
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 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.
The condensed combined and consolidated financial statements have been prepared
on a going concern basis as discussed in the Group performance review, under
the heading `Going concern'. 
The information for the year ended 31 December 2012 does not constitute
statutory accounts as defined by section 434 of the UK Companies Act 2006. A
copy of the statutory accounts for that year has been delivered to the
Registrar of Companies. The auditor's report on those accounts was unqualified,
did not draw attention to any matters by way of emphasis and did not contain a
statement under section 498(2) or (3) of the UK Companies Act 2006. 
The condensed combined and consolidated financial statements have been prepared
on the historical cost basis, except for the revaluation of certain properties
and financial instruments. Historical cost is generally based on the fair value
of the consideration given in exchange for assets. 
These financial statements have been prepared under the supervision of the
Group chief financial officer, Andrew King CA (SA), as required in terms of
Section 29(1)(e)(ii) of the Companies Act of South Africa 2008. 
2a Accounting policies 
The same accounting policies, methods of computation and presentation have been
followed in the preparation of the condensed combined and consolidated
financial statements as were applied in the preparation of the Group's annual
financial statements for the year ended 31 December 2012, except as set out
below. 
The Group has adopted the following Standards and amendments to published
Standards during the current year, and their impact on the Group's results were
as follows: 
* IFRS 10 - Consolidated Financial Statements 


      * IFRS 11 - Joint Arrangements
      * IAS 19 (revised) - Employee Benefits


IFRS 10 and IFRS 11 broadened the concept of control and eliminated the option
of proportionate consolidation for joint ventures, except in certain
circumstances. The impact of these Standards has been that Mondi Shanduka
Newsprint Proprietary Limited has been consolidated whilst Aylesford Newsprint
has been accounted for using the equity method up to the date of sale in 2012.
Comparative information has been restated as set out in note 2b. 
IAS 19 (revised) impacted the measurement of the various components
representing movements in the defined benefit pension obligation and associated
disclosures. As the Group has always recognised actuarial gains and losses
immediately, the Group's total obligation was unchanged. This Standard has been
adopted with effect from 1 January 2012 as it was impractical to complete
revised actuarial valuations prior to that date. Following the replacement of
expected returns on plan assets with a net finance cost in the combined and
consolidated income statement, the profit for the period was reduced and
accordingly other comprehensive income increased in 2012. Comparative
information for the year ended 31 December 2012 has been restated as set out in
note 2b. 
The following Standards and amendments to published Standards which the Group
has adopted during the current year, had no significant impact on the Group's
results except for the addition of certain disclosures: 
* IFRS 7 - Financial Instruments: Disclosure 


      * IFRS 13 - Fair Value Measurement
      * IFRS 12 - Disclosure of Interests in Other Entities
      * IAS 1 - Presentation of Financial Statements
      * IAS 16 - Property, Plant and Equipment
      * IAS 27 - Separate Financial Statements
      * IAS 28 - Investments in Associates and Joint Ventures
      * IAS 32 - Financial Instruments: Presentation
      * IAS 34 - Interim Financial Reporting
    2b Restatement of comparative information

The following tables summarise the material impacts resulting from the changes
in accounting policies on the Group's financial position, comprehensive income
and cash flows.

Income statement                                                                
        
                                                                                
        


                     Six months ended 30 June 2012       Year ended 31 
December 2012 


                                                                         
                                                                                


    
€ million                        As      Effect                  As      
Effect          


                         previously          of       As previously          of 
      As


                       reported restatement restated   reported restatement 
restated 
                                                                             
    
Group revenue                 2,840        (21)    2,819      5,807        (17)  
5,790 
                                                                             
    
Gross margin                  1,076         (1)    1,075      2,235           4  
2,239 
                                                                             
    
Operating profit                269           3      272        541           6  


     547
                                                                                


    
Non-operating special             6           -        6       (64)           -  
(64)
items                                                                            


        
                                                                                


    
Net income/(loss) from            1         (2)      (1)          1         (6)  
 (5)
associates                                                                       


        
                                                                                


    
Total profit from               276           1      277        478           -  
 478
operations and                                                                   
    
associates                                                                       


        
                                                                                


    
Net finance costs              (53)         (2)     (55)      (107)         (3)  
(110) 
                                                                             
    
Investment income                 6         (6)        -         10         (6)  


       4
                                                                                


    
Foreign currency losses         (3)           -      (3)        (2)           -  


     (2)
                                                                                


    
Finance costs                  (56)           4     (52)      (115)           3  
(112) 
                                                                             
    
Profit before tax               223         (1)      222        371         (3)  


     368
                                                                                


    
Tax charge                     (45)           -     (45)       (92)           1  


    (91)
                                                                                


    
Profit for the                  178         (1)      177        279         (2)  
 277
financial period                                                                 


        
                                                                                


    
Attributable to:                                                                 


        
                                                                                


    
Non-controlling                  25         (1)       24         35           -  
  35
interests                                                                        


        
                                                                                


    
Equity holders of the           153           -      153        244         (2)  
 242
parent companies                                                                 


        
                                                                                
        

The restatement had no impact on special items.

Earnings per share              As      Effect                  As      Effect  


   
(EPS) for profit        previously          of       As previously          of   
 As
attributable to equity    reported restatement restated   reported restatement 
restated
holders of the parent                                                            
   
companies                                                                        


       
                                                                                


   
Basic EPS (€ cents)           31.7           -     31.7       50.5       
(0.4)     50.1 
                                                                             
   
Diluted EPS (€ cents)         31.6           -     31.6       50.3       
(0.4)     49.9 
                                                                             
   
Basic underlying EPS          30.9           -     30.9       69.6       (0.4)   
69.2
(€ cents)                                                                      


         
                                                                                


   
Diluted underlying EPS        30.8           -     30.8       69.3       (0.4)   
68.9
(€ cents)                                                                      


         
                                                                                


   
Basic headline EPS (€         30.9           -     30.9       63.4       
(0.5)     62.9
cents)                                                                           


       
                                                                                


   
Diluted headline EPS          30.8           -     30.8       63.1       (0.4)   
62.7
(€ cents)                                                                      


         
                                                                                
       

Statement of comprehensive income                                               
                    
                                                                                
       


                    Six months ended 30 June 2012       Year ended 31 
December 2012 


                                                                                
                                                                                    


   
€ million                       As      Effect                  As      
Effect          


                        previously          of       As previously          of  
     As


                      reported restatement restated   reported restatement 
restated 
                                                                             
   
Profit for the                 178         (1)      177        279         (2)   
277
financial period                                                                 


       
                                                                                


   
Other comprehensive                                                              
   
income/(expense):                                                                


       
                                                                                


   
Items that may                  51           -       51         52           -   
 52
subsequently be                                                                  
   
reclassified to the                                                              
   
combined and                                                                     
   
consolidated income                                                              
   
statement                                                                        


       
                                                                                


   
Items that will not           (11)           -     (11)       (27)           2   
(25)
subsequently be                                                                  
   
reclassified to the                                                              
   
combined and                                                                     
   
consolidated income                                                              
   
statement                                                                        


       
                                                                                


   
Other comprehensive             40           -       40         25           2   
 27
income for the                                                                   
   
financial period, net                                                            
   
of tax                                                                           


       
                                                                                


   
Total comprehensive            218         (1)      217        304           -   
304
income for the                                                                   
   
financial period                                                                 


       
                                                                                


   
Attributable to:                                                                 


       
                                                                                


   
Non-controlling                 36         (1)       35         42           -   
 42
interests                                                                        


       
                                                                                


   
Equity holders of the          182           -      182        262           -   
262
parent companies                                                                 


       
                                                                                
       

Statement of financial position                                                 
                              
                                                                                
       


                         As at 30 June 2012                  As at 31 
December 2012 
                                                                             
   
€ million                       As      Effect                  As      
Effect          


                        previously          of       As previously          of  
     As


                      reported restatement restated   reported restatement 
restated 
                                                                             
   
Non-current assets           4,068        (21)    4,047      4,755           2  
  4,757 
                                                                             
   
Current assets               1,672        (12)    1,660      1,859           7  
  1,866 
                                                                             
   
Total assets                 5,740        (33)    5,707      6,614           9  
  6,623 
                                                                             
   
Current liabilities        (1,323)          35  (1,288)    (1,443)         (4)  
(1,447) 
                                                                             
   
Non-current liabilities    (1,602)         (6)  (1,608)    (2,295)         (8)  
(2,303) 
                                                                             
   
Total liabilities          (2,925)          29  (2,896)    (3,738)        (12)  
(3,750) 
                                                                             
   
Net assets                   2,815         (4)    2,811      2,876         (3)  
  2,873 


                                                                                
       
                                                                                
       
                                                                                


   
Equity                                                                           


       
                                                                                


   
Share capital and              542           -      542        542           -   
542
stated capital                                                                   


       
                                                                                


   
Retained earnings and        1,973           -    1,973      2,030           -  
  2,030
other reserves                                                                   


       
                                                                                


   
Total attributable to        2,515           -    2,515      2,572           -  
  2,572
equity holders of the                                                            
   
parent companies                                                                 


       
                                                                                


   
Non-controlling                300         (4)      296        304         (3)   
301
interests in equity                                                              


       
                                                                                


   
Total equity                 2,815         (4)    2,811      2,876         (3)  
  2,873 
                                                                             
   
Net debt                   (1,273)          16  (1,257)    (1,864)         (8)  
(1,872) 
                                                                             


       

Statement of cash flows                                                         
       
                                                                                
       


                    Six months ended 30 June 2012       Year ended 31 
December 2012 


                                                                                
                                                                                    


   
€ million                       As      Effect                  As      
Effect          


                        previously          of       As previously          of  
     As


                      reported restatement restated   reported restatement 
restated 
                                                                             
   
Net cash generated from        308           2      310        740           2   
742
operating activities                                                             


       
                                                                                


   
Net cash used in             (175)           2    (173)      (725)        (21)  
  (746)
investing activities                                                             


       
                                                                                


   
Net cash used in             (314)         (6)    (320)      (173)          17  
  (156)
financing activities                                                             


       
                                                                                


   
Net decrease in cash         (181)         (2)    (183)      (158)         (2)  
  (160)
and cash equivalents                                                             


       
                                                                                


   
Cash and cash                  117           2      119        117           2   
119
equivalents at                                                                   
   
beginning of financial                                                           
   
period                                                                           


       
                                                                                


   
Cash movement in the         (181)         (2)    (183)      (158)         (2)  
  (160)
financial period                                                                 


       
                                                                                


   
Effects of changes in          (1)           -      (1)          4           -   
  4
foreign exchange rates                                                           


       
                                                                                


   
Cash and cash                 (65)           -     (65)       (37)           -   
(37)
equivalents at end of                                                            
   
financial period                                                                 


       
                                                                                
       

3 Seasonality

The seasonality of the Group's operations has no significant impact on the
condensed combined and consolidated financial statements.

4 Operating segments

The newsprint joint venture, Mondi Shanduka Newsprint, was incorporated into
the South Africa Division during 2012 due to similarities in geographical
location, production processes and the integrated nature of the production
facilities. Mondi Shanduka Newsprint Proprietary Limited is now consolidated as
a subsidiary. The effects of this change on the comparative periods are set out
in note 2b. The Group's segmental information for the comparative periods has
been restated to reflect this change in accounting policy.

Six months ended 30 June 2013      (Reviewed)                                   
                             
                                                                                
                     
                                                                                
                         


                             Europe & International                SA 
Corporate Intersegment Segments 
                                                             Division   & 
other  elimination    Total 
                                                                             
                     
€ million, unless                                       Uncoated               
                       
otherwise stated     Packaging      Fibre      Consumer     Fine                 


                         
                         Paper  Packaging     Packaging    Paper                
                         
                                                                                


                     
Segment revenue          1,043      1,002           582      740      325       
  -        (350)    3,342 
                                                                             
                     
Internal revenue         (267)       (17)           (2)      (8)     (56)       
  -          350        - 
                                                                             
                     
External revenue           776        985           580      732      269       
  -            -    3,342 
                                                                             
                     
EBITDA                     195         83            66      157       67      
(14)            -      554 
                                                                             
                     
Operating profit/          148         48            39      102       44      
(15)            -      366
(loss) from                                                                      
                     
operations before                                                                
                     
special items                                                                    


                         
                                                                                


                     
Special items                -          -          (13)     (50)     (18)       
  -            -     (81) 
                                                                             
                     
Operating segment        1,793      1,239         1,018    1,366      810       
  7        (129)    6,104
assets                                                                           


                         
                                                                                


                     
Operating net            1,441        982           875    1,176      687       
  7            -    5,168
segment assets                                                                   


                         
                                                                                


                     
Additions to                57         25            25       33       34       
  -            -      174
non-current                                                                      
                     
non-financial assets                                                             


                         
                                                                                


                     
Capital expenditure         55         35            24       36       14       
  -            -      164
cash payments                                                                    


                         
                                                                                


                     
Operating margin (%)      14.2        4.8           6.7     13.8     13.5       
  -            -     11.0     
                                                                             
                     
Return on capital         20.1       12.0           7.8     17.4     12.8       
  -            -     14.8    
employed (%)                                                                     


                         
                                                                                
                         

Six months ended 30 June 2012  (Restated) (Reviewed)                            
                                    
                                                                                
                  
                                                                                
                           


                               Europe & International                SA 
Corporate Intersegment Segments 
                                                               Division   & 
other  elimination    Total 
                                                                             
                       
€ million, unless                                         Uncoated             
                         
otherwise stated       Packaging      Fibre      Consumer     Fine               


                           
                           Paper  Packaging     Packaging    Paper              
                           
                                                                                


                       
Segment revenue              960        946           150      749      348      


    -        (334)    2,819
                                                                                


                       
Internal revenue           (249)       (19)           (1)      (8)     (57)      


    -          334        -
                                                                                


                       
External revenue             711        927           149      741      291      


    -            -    2,819
                                                                                


                       
EBITDA                       150         80            15      154       56     
 (18)            -      437 
                                                                             
                       
Operating profit/            104         47            10      100       29     
 (18)            -      272
(loss) from                                                                      
                       
operations before                                                                
                       
special items                                                                    


                           
                                                                                


                       
Special items                  -          -             -        -        6      


    -            -        6
                                                                                


                       
Operating segment          1,709      1,207           189    1,469    1,053      
7        (170)    5,464
assets                                                                           


                           
                                                                                


                       
Operating net segment      1,373        916           145    1,270      903      
9            -    4,616
assets                                                                           


                           
                                                                                


                       
Additions to                 125         29             8       21       46      
-            -      229
non-current                                                                      
                       
non-financial assets                                                             


                           
                                                                                


                       
Capital expenditure           34         28             7       24       17      
-            -      110
cash payments                                                                    


                           
                                                                                


                       
Operating margin (%)        10.8        5.0           6.7     13.4      8.3      


    -            -      9.6
                                                                                


                       
Return on capital           18.5       10.9          14.6     15.7      9.1      
-            -     13.4
employed (%)                                                                     


                           
                                                                                
                           

Year ended 31         (Restated) (Audited)                                      


                      
December 2012                                                                    


                           
                                                                                
                           


                               Europe & International                SA 
Corporate Intersegment Segments 
                                                               Division   & 
other  elimination    Total 
                                                                             
                       
€ million, unless                                         Uncoated             
                         
otherwise stated       Packaging      Fibre      Consumer     Fine               


                           
                           Paper  Packaging     Packaging    Paper              
                           
                                                                                


                       
Segment revenue            1,896      1,860           502    1,466      702      


    -        (636)    5,790
                                                                                


                       
Internal revenue           (469)       (42)           (4)     (13)    (108)      


    -          636        -
                                                                                


                       
External revenue           1,427      1,818           498    1,453      594      


    -            -    5,790
                                                                                


                       
EBITDA                       321        168            45      300      125     
 (32)            -      927 
                                                                             
                       
Operating profit/            227        101            19      191       69     
 (33)            -      574
(loss) from                                                                      
                       
operations before                                                                
                       
special items                                                                    


                           
                                                                                


                       
Special items                  -       (16)          (11)        -        6     
 (70)            -     (91) 
                                                                             
                       
Operating segment          1,829      1,229         1,019    1,450      975      
5        (150)    6,357
assets                                                                           


                           
                                                                                


                       
Operating net segment      1,466        958           872    1,248      821      
1            -    5,366
assets                                                                           


                           
                                                                                


                       
Additions to                 249        144           621       60       93      
-            -    1,167
non-current                                                                      
                       
non-financial assets                                                             


                           
                                                                                


                       
Capital expenditure           89         76            28       58       43      
-            -      294
cash payments                                                                    


                           
                                                                                


                       
Operating margin (%)        12.0        5.4           3.8     13.0      9.8      


    -            -      9.9
                                                                                


                       
Return on capital           17.9       12.5           6.2     16.7      9.6      
-            -     13.6
employed (%)                                                                     


                           
                                                                                
                           

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 product type
presented below.

External revenue by product type

€ million                                                   (Restated) 
(Restated)


                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Products                                                                         
                                                                               
Fibre packaging                                         963        909      
1,785 
                                                                             
Packaging paper                                         766        689      
1,393 
                                                                             
Uncoated fine paper                                     669        687      
1,355 
                                                                             
Consumer packaging                                      580        149        
498 
                                                                             
Pulp                                                    133        140        
276 
                                                                             
Newsprint                                                97        108        
215 
                                                                             
Other                                                   134        137        
268 
                                                                             
Group total                                           3,342      2,819      
5,790 
                                                                             
                     External revenue by location of  External revenue by 
location of  


                      customer                         production               
       
                                                                                


   
€ million                        (Restated) (Restated)            (Restated) 
(Restated) 
                  (Reviewed) (Reviewed)  (Audited) (Reviewed) (Reviewed)  
(Audited) 
                  Six months Six months Year ended Six months Six months 
Year ended 


                           ended      ended         31      ended      ended    
     31


                     30 June    30 June   December    30 June    30 June   
December 
                        2013       2012       2012       2013       2012     
2012 
                                                                             
   
Revenue                                                                          


       
                                                                                


   
Africa                                                                           


       
                                                                                


   
South Africa                 217        219        448        325        348     


    702
                                                                                


   
Rest of Africa               129        125        242          5          5     


      8
                                                                                


   
Africa total                 346        344        690        330        353     


    710
                                                                                


   
Western Europe                                                                   


       
                                                                                


   
Austria                       83         75        145        506        526    
  1,025 
                                                                             
   
Germany                      509        378        783        496        171     


    486
                                                                                


   
United Kingdom               137        108        230         28         29     


     53
                                                                                


   
Rest of western              730        648      1,287        372        349     
693
Europe                                                                           


       
                                                                                


   
Western Europe total       1,459      1,209      2,445      1,402      1,075    
  2,257 
                                                                             
   
Emerging Europe                                                                  


       
                                                                                


   
Poland                       227        175        364        448        382     


    766
                                                                                


   
Rest of emerging             457        394        816        595        544    
  1,086
Europe                                                                           


       
                                                                                


   
Emerging Europe total        684        569      1,180      1,043        926    
  1,852 
                                                                             
   
Russia                       314        291        592        389        359     


    729
                                                                                


   
North America                181        124        270        143         89     


    196
                                                                                


   
South America                 29         21         41          -          -     


      -
                                                                                


   
Asia and Australia           329        261        572         35         17     


     46
                                                                                


   
Group total                3,342      2,819      5,790      3,342      2,819    
  5,790 
                                                                             
    
There are no external customers which account for more than 10% of the Group's
total external revenue. 
Reconciliation of operating profit before special items 
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Operating profit before special items                   366        272        
574 
                                                                             
Special items (see note 6)                             (81)          6       
(91) 
                                                                             
Net income/(loss) from associates                         1        (1)        
(5) 
                                                                             
Net finance costs                                      (57)       (55)      
(110) 
                                                                             
Group profit before tax                                 229        222        
368 
                                                                             
Reconciliation of operating segment assets 
                                       (Restated) (Restated) (Restated) 
(Restated) 
                 (Reviewed) (Reviewed) (Reviewed) (Reviewed)  (Audited)  
(Audited) 
                   As at 30  June 2013   As at 30  June 2012   As at 31   
December 
                                                                            
  2012 
                                                                             
  
€ million                              Net                   Net               
 Net 
                    Segment    segment    Segment    segment    Segment    
segment 
                     assets     assets     assets     assets     assets     
assets 
                                                                             
  
Segments total            6,104      5,168      5,464      4,616      6,357     
 5,366 
                                                                             
  
Unallocated:                                                                     


      
                                                                                


  
Investments in                6          6         18         18          6      
 6
associates                                                                       


      
                                                                                


  
Deferred tax assets/          8      (283)          5      (314)         10     
 (334)
(liabilities)                                                                    


      
                                                                                


  
Other non-operating         190      (308)        136      (276)        167     
 (319)
assets/(liabilities)                                                             


      
                                                                                


  
Group trading             6,308      4,583      5,623      4,044      6,540     
 4,719
capital employed                                                                 


      
                                                                                


  
Financial asset              25         25         24         24         26      
26
investments                                                                      


      
                                                                                


  
Net debt                     85    (1,844)         60    (1,257)         57    
(1,872) 
                                                                             
  
Group                     6,418      2,764      5,707      2,811      6,623     
 2,873 
                                                                             
   
5 Write-down of inventories to net realisable value 
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Condensed combined and consolidated income                                       
statement                                                                        
                                                                               
Write-down of inventories to net realisable            (12)        (9)       
(19)
value                                                                            
                                                                               
Aggregate reversal of previous write-down of              4          3         
13
inventories                                                                      
                                                                               
6 Special items 
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Operating special items                                                          
                                                                               
Asset impairments                                      (55)          -        
(1) 
                                                                             
Restructuring and closure costs:                                                 
                                                                               
Restructuring and closure costs excluding              (10)          -        
(4)
related personnel costs                                                          
                                                                               
Personnel costs relating to restructuring              (16)          -       
(16) 
                                                                             
Transaction costs incurred on the acquisition of          -          -       
(11)
Nordenia                                                                         
                                                                               
Gain on insurance settlement                              -          -          
5 
                                                                             
Total operating special items                          (81)          -       
(27) 
                                                                             
Non-operating special items                                                      
                                                                               
Loss on disposals (see note 16)                           -          -       
(70) 
                                                                             
Profit on sale of land                                    -          6          
6 
                                                                             
Total non-operating special items                         -          6       
(64) 
                                                                             
Total special items from continuing operations         (81)          6       
(91)
before tax and non-controlling interests                                         
                                                                               
Tax                                                      13        (2)        
(1) 
                                                                             
Non-controlling interests                                 -          -          
- 
                                                                             
Total special items attributable to equity             (68)          4       
(92)
holders of the parent companies                                                  
                                                                               
During the first quarter of the year a decision was taken to close the Lindlar
operation in Germany and redirect production to existing plants in Germany,
Hungary and the Czech Republic. Restructuring and closure costs amounting to 
€
13 million were recognised. 
In May 2013, Mondi announced the closure of one of the two newsprint machines
located in Merebank. Further restructuring activities in the Merebank mill as a
result of the closure of the newsprint machine have also been implemented. An
impairment charge of €13 million and associated closure and restructuring 
costs
of €5 million were recognised. 
In May 2013, Mondi announced plans to restructure the Neusiedler operation to
improve the cost base of this mill. An impairment charge of €42 million and
restructuring costs of €8 million were recognised. 
7 Finance costs 
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Interest on bank overdrafts and loans                  (54)       (46)       
(98) 
                                                                             
Net interest on defined benefit arrangements            (5)        (6)       
(15) 
                                                                             
Total interest expense                                 (59)       (52)      
(113) 
                                                                             
Less: interest capitalised                                1          -          
1 
                                                                             
Total finance costs                                    (58)       (52)      
(112) 
                                                                             
8 Tax charge 
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
UK corporation tax at 23.25% (2012: 24.5%)                1          -          
- 
                                                                             
SA corporation tax at 28% (2012: 28%)                    13         10         
19 
                                                                             
Overseas tax                                             65         38         
66 
                                                                             
Current tax                                              79         48         
85 
                                                                             
Deferred tax                                           (23)        (5)          
5 
                                                                             
Total tax charge before special items                    56         43         
90 
                                                                             
Current tax on special items                            (6)          1          
2 
                                                                             
Deferred tax on special items                           (7)          1        
(1) 
                                                                             
Total tax (credit)/charge on special items             (13)          2          
1 
                                                                             
Total tax charge                                         43         45         
91 
                                                                             
The Group's effective rate of tax before special items for the six months ended
30 June 2013, calculated on profit before tax before special items and
including net income from associates, is 18% (six months ended 30 June 2012:
20%; year ended 31 December 2012: 20%). The Group continues to benefit from tax
incentives granted in certain countries in which the Group operates, most
notably Poland. 
9 Earnings per share 
€ cents per share                                          (Restated) 
(Restated) 
                                            (Reviewed) (Reviewed)  
(Audited) 
                                            Six months Six months Year 
ended 
                                                 ended      ended         
31 
                                               30 June    30 June   
December 
                                                  2013       2012       
2012 
                                                                             
Profit for the financial period attributable to                                  
equity holders of the parent companies                                           
                                                                             
Basic EPS                                             35.3       31.7       
50.1 
                                                                             
Diluted EPS                                           35.3       31.6       
49.9 
                                                                             
Underlying earnings for the financial period                                     
                                                                             
Basic EPS                                             49.4       30.9       
69.2 
                                                                             
Diluted EPS                                           49.3       30.8       
68.9 
                                                                             
Headline earnings for the financial period                                       
                                                                             
Basic EPS                                             45.7       30.9       
62.9 
                                                                             
Diluted EPS                                           45.6       30.8       
62.7 
                                                                             
The calculation of basic and diluted EPS, basic and diluted underlying EPS and
basic and diluted headline EPS is based on the following data: 
                                            Weighted average number of 
shares 
                                                                       
                                                                             
million                                                                
(Audited) 
                                             (Reviewed) (Reviewed)     As 
at 
                                                  As at      As at        
31 
                                                30 June    30 June  
December 
                                                   2013       2012      
2012 
                                                                             
Basic number of ordinary shares outstanding             484        483       
483 
                                                                             
Effect of dilutive potential ordinary shares              1          1         
2 


                                                                                

Diluted number of ordinary shares outstanding           485        484       
485
                                                                                
                                                             Earnings           
                                                                                

€ million                                                  (Restated) 
(Restated)


                                            (Reviewed) (Reviewed)  
(Audited) 
                                            Six months Six months Year 
ended 
                                                 ended      ended         
31 
                                               30 June    30 June   
December 
                                                  2013       2012       
2012 
                                                                             
Profit for the financial period attributable to        171        153        
242
equity holders of the parent companies                                           
                                                                             
Special items                                           81        (6)         
91 
                                                                             
Related tax                                           (13)          2          
1 
                                                                             
Underlying earnings for the financial period           239        149        
334 
                                                                             
Special items: restructuring and closure costs        (26)          -       
(20) 
                                                                             
Transaction costs incurred on the acquisition            -          -       
(11)
of Nordenia                                                                      
                                                                             
Profit on disposal of tangible and intangible            -          -        
(4)
assets                                                                           
                                                                             
Impairments not included in special items                1          -          
4 
                                                                             
Related tax                                              7          -          
1 
                                                                             
Headline earnings for the financial period             221        149        
304 


                                                                                


10 Dividends

The interim dividend for the year ending 31 December 2013 of 9.55 euro cents
per ordinary share will be paid on 17 September 2013 to those shareholders on
the register of Mondi plc on 23 August 2013. An equivalent South African rand
interim dividend will be paid on 17 September 2013 to shareholders on the
register of Mondi Limited on 23 August 2013. The dividend will be paid from
distributable reserves of Mondi Limited and of Mondi plc, as presented in the
respective company annual financial statements for the year ended 31 December
2012.

The interim dividend for the year ending 31 December 2013 will be paid in
accordance with the following timetable:
                                             Mondi Limited     Mondi plc       


                                                                           
Last date to trade shares cum-dividend                                          
                                                                           
JSE Limited                                  16 August 2013    16 August 2013   
                                                                           
London Stock Exchange                        Not applicable    20 August 2013   
                                                                           
Shares commence trading ex-dividend                                             
                                                                           
JSE Limited                                  19 August 2013    19 August 2013   
                                                                           
London Stock Exchange                        Not applicable    21 August 2013   
                                                                           
Record date                                                                     
                                                                           
JSE Limited                                  23 August 2013    23 August 2013   
                                                                           
London Stock Exchange                        Not applicable    23 August 2013   
                                                                           
Last date for receipt of Dividend            29 August 2013    29 August 2013  
Reinvestment Plan (DRIP) elections by                                          
Central Securities Depository Participants                                      
                                                                           
Last date for DRIP elections to UK Registrar 30 August 2013    23 August 2013* 
and South African Transfer Secretaries by                                      
shareholders of Mondi Limited and Mondi plc                                     
                                                                           
Payment Date                                                                    
                                                                           
South African Register                       17 September 2013 17 September     
                                                           2013             
                                                                           
UK Register                                  Not applicable    17 September     
                                                           2013             
                                                                           
DRIP purchase settlement dates               26 September 2013 20 September     
                                                           2013**           
                                                                           
Currency conversion dates                          
                                                                           
ZAR/euro                                     8 August 2013     8 August 2013    
                                                                           
Euro/sterling                                Not applicable    30 August 2013    
                      
* 30 August 2013 for Mondi plc South African branch register shareholders 
** 26 September 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 19 August 2013 and 25
August 2013, both dates inclusive, nor may transfers between the UK and South
African registers of Mondi plc take place between 14 August 2013 and 25 August
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 8 August 2013. 
11 Forestry assets 
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
At 31 December, as previously reported                             297        
297 
                                                                             
Effect of restatement                                               12         
12 
                                                                             
At 1 January (Restated)                                 311        309        
309 
                                                                             
Capitalised expenditure                                  19         22         
42 
                                                                             
Acquisition of assets                                     1          8          
9 
                                                                             
Fair value gains                                         10         13         
40 
                                                                             
Disposal of assets                                      (9)        (3)        
(3) 
                                                                             
Felling costs                                          (30)       (34)       
(66) 
                                                                             
Currency movements                                     (45)          3       
(20) 
                                                                             
Closing balance                                         257        318        
311 
                                                                             
The fair value of forestry assets is a level 3 measure in terms of the fair
value measurement hierarchy (see note 21). The fair value of forestry assets is
calculated on the basis of future expected cash flows discounted using a
discount rate relevant in the local country, based on a pre tax real yield on
long-term bonds over the last five years. All fair value gains originate from
South Africa. 
12 Retirement benefits 
All assumptions related to the Group's material defined benefit schemes and
post-retirement medical plan liabilities were re-assessed individually and the
remaining Group defined benefit schemes and unfunded statutory retirement
obligations were re-assessed in aggregate for the six months ended 30 June
2013. The net retirement benefit obligation decreased by €30 million mainly 
due
to changes in assumptions and an exchange rate impact of €14 million. The
assets backing the defined benefit scheme liabilities reflect their market
values as at 30 June 2013. Any movements in the assumptions have been
recognised as a remeasurement in the condensed combined and consolidated
statement of comprehensive income. 
13 Non-controlling interests bought out 
On 18 April 2012, Mondi concluded an all cash public tender offer for the share
in Mondi Świecie 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.  
These acquisitions are reflected in the condensed 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 Business combinations 
There were no significant acquisitions made during the period ended 30 June
2013. 
Acquisitions during 2012 
On 2 May 2012, Mondi Świecie S.A. acquired the entire share capital of Saturn
Management Sp. Z o.o. (Saturn) from Polish Energy Partners S.A. for a net cash
consideration of €31 million and the assumption of debt of €57 million.  
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. 
On 5 November 2012, Mondi acquired two corrugated box plants in Germany and the
Czech Republic and a 105,000 tonne recycled containerboard mill in the Czech
Republic from Duropack GmbH (Duropack) for a cash consideration of €133
million. The recycled containerboard mill was subsequently closed in December
2012. Subsequent to 31 December 2012, the fair value of the property, plant and
equipment attributable to the assets acquired from Duropack was increased by 
€3
million and goodwill adjusted accordingly. 
Details of the aggregate net assets acquired, as adjusted from book to fair
value, are: 
€ million                                              Book Revaluation     
Fair 
                                                  value                
value 
                                                                             
Net assets acquired:                                                             
                                                                             
Intangible assets                                         2         103      
105 
                                                                             
Property, plant and equipment                           324          22      
346 
                                                                             
Financial asset investments                              17           -       
17 
                                                                             
Deferred tax assets                                       4           -        
4 
                                                                             
Inventories                                             123           5      
128 
                                                                             
Trade and other receivables                             143           -      
143 
                                                                             
Cash and cash equivalents                                53           -       
53 
                                                                             
Other current assets                                      1           -        
1 
                                                                             
Short-term borrowings                                  (67)           -     
(67) 
                                                                             
Trade and other payables                              (156)           -    
(156) 
                                                                             
Current tax liabilities                                 (7)           -      
(7) 
                                                                             
Provisions                                             (28)         (1)     
(29) 
                                                                             
Medium and long-term borrowings                       (348)        (45)    
(393) 
                                                                             
Retirement benefits obligation                         (21)           -     
(21) 
                                                                             
Deferred tax liabilities                               (15)        (26)     
(41) 
                                                                             
Other non-current liabilities                          (16)           -     
(16) 
                                                                             
Net assets acquired                                       9          58       
67 
                                                                             
Goodwill arising on acquisitions                                             
356 
                                                                             
Total cost of acquisitions                                                   
423 
                                                                             
Transaction costs expensed                                                    
11 
                                                                             
Cash acquired net of overdrafts                                             
(53) 
                                                                             
Net cash paid per condensed combined and                                     
381
consolidated statement of cash flows                                             
                                                                             
€ million                                               Net    Goodwill Net 
cash 
                                                 assets                 
paid 
                                                                             
Nordenia                                                (9)         268      
237 
                                                                             
Saturn                                                   27           4       
29 
                                                                             
Duropack                                                 49          84      
115 
                                                                             
Group total                                              67         356      
381 
                                                                             
15 Disposal groups and assets held for sale 
There were no significant disposal groups or assets held for sale as at 30 June
2013. 
16 Disposal of businesses 
There were no significant disposals in the six months ended 30 June 2013 or the
six months ended 30 June 2012. 
Disposals during 2012 
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. The loss on disposal of €70 million was 
recognised
as a special item in the combined and consolidated income statement.
Transaction costs were insignificant and were expensed. 
€ million                                                             
(Restated) 
                                                                   
(Audited) 
                                                                             
                                                                  Year 
ended 
                                                                          
31 
                                                                    
December 
                                                                        
2012 
                                                                             
Net investment in equity accounted investee                                   
48 
                                                                             
Guarantee liability retained                                                   
7 
                                                                             
Cumulative translation adjustment reserve realised                            
15 
                                                                             
Loss on disposal of investment in equity accounted investee                 
(70) 
                                                                             
Disposal proceeds                                                              - 
                                                                             
Deferred consideration received in respect of the sale of Mondi                
1
Frohnleiten in 2010                                                              
                                                                             
Net cash inflow from disposal of businesses                                    
1 
                                                                             
17 Consolidatedcash flow analysis 
(a) Reconciliation of profit before tax to cash generated from operations 
€ million                                                   (Restated) 
(Restated) 
                                             (Reviewed) (Reviewed)  
(Audited) 
                                             Six months Six months Year 
ended 
                                                  ended      ended         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Profit before tax                                       229        222        
368 
                                                                             
Depreciation and amortisation                           187        165        
349 
                                                                             
Impairment of tangible and intangible assets              1          -          
4
(not included in special items)                                                  
                                                                               
Share-based payments                                      5          6         
10 
                                                                             
Non-cash effect of special items                         71        (4)         
91 
                                                                             
Net finance costs                                        57         55        
110 
                                                                             
Net (income)/loss from associates                       (1)          1          
5 
                                                                             
Decrease in provisions and post-employment             (12)        (6)       
(22)
benefits                                                                         
                                                                               
Increase in inventories                                 (9)       (21)       
(16) 
                                                                             
Increase in operating receivables                     (138)       (91)       
(38) 
                                                                             
Increase/(decrease) in operating payables                18          7       
(29) 
                                                                             
Fair value gains on forestry assets                    (10)       (13)       
(40) 
                                                                             
Felling costs                                            30         34         
66 
                                                                             
Profit on disposal of tangible and intangible             -          -        
(4)
assets                                                                           
                                                                               
Other adjustments                                         3          -        
(5) 
                                                                             
Cash generated from operations                          431        355        
849 
                                                                             
(b) Cash and cash equivalents 
€ million                                                              
(Restated) 
                                                        (Restated)  
(Audited) 
                                             (Reviewed) (Reviewed)      As 
at 
                                                  As at      As at         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Cash and cash equivalents per condensed combined         84         60         
56
and consolidated statement of financial position                                 
                                                                               
Bank overdrafts included in short-term                 (93)      (125)       
(93)
borrowings (see note 17c)                                                        
                                                                               
Net cash and cash equivalents per condensed             (9)       (65)       
(37)
combined and consolidated statement of cash                                      
flows                                                                            
                                                                               
(c) Movement in net debt (Restated) 
The Group's net debt position, excluding disposal groups is as follows: 
€ million                           Cash and Debt due Debt due     Current   
Total 
                                    cash   within    after   financial     
net 
                            equivalents1 one year one year       asset    
debt 
                                                           investments       
                                                                                
At 31 December 2011                      117    (212)    (737)           1   
(831) 
                                                                             
Effect of restatement                      2       18      (9)           -      
11 
                                                                             
At 1 January 2012 (Restated)             119    (194)    (746)           1   
(820) 
                                                                             
Cash flow                              (183)       59    (240)         (1)   
(365) 
                                                                             
Business combinations                      -     (11)     (49)           -    
(60) 
                                                                             
Movement in unamortised loan               -        -      (2)           -     
(2)
costs                                                                            
                                                                                
Reclassification                           -     (19)       19           -      
 - 
                                                                             
Currency movements                       (1)      (4)      (5)           -    
(10) 
                                                                             
At 30 June 2012 (Restated)              (65)    (169)  (1,023)           - 
(1,257) 
                                                                             
Cash flow                                 23       55    (308)           1   
(229) 
                                                                             
Business combinations                      -     (56)    (344)           -   
(400) 
                                                                             
Movement in unamortised loan               -        -        5           -      
 5
costs                                                                            
                                                                                
Reclassification                           -     (27)       27           -      
 - 
                                                                             
Currency movements                         5        9      (5)           -      
 9 
                                                                             
At 31 December 2012 (Restated)          (37)    (188)  (1,648)           1 
(1,872) 
                                                                             
Cash flow                                 17       19     (56)           -    
(20) 
                                                                             
Movement in unamortised loan               -        -        7           -      
 7
costs                                                                            
                                                                                
Reclassification                           -     (20)       20           -      
 - 
                                                                             
Currency movements                        11       17       13           -      
41 
                                                                             
At 30 June 2013                          (9)    (172)  (1,664)           1 
(1,844) 
                                                                             
  
Note: 
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. 
The following table shows the amounts available to draw down on the Group's
committed loan facilities: 
€ million                                                              
(Audited) 
                                             (Reviewed) (Reviewed)     As 
at 
                                                  As at      As at        
31 
                                                30 June    30 June  
December 
                                                   2013       2012      
2012 
                                                                             
Expiry date                                                                      
                                                                             
In one year or less                                      56         26        
27 
                                                                             
In more than one year                                   687        558       
735 
                                                                             
Total credit available                                  743        584       
762 
                                                                             
18 Capital commitments 
€ million                                                              
(Restated) 
                                                        (Restated)  
(Audited) 
                                             (Reviewed) (Reviewed)      As 
at 
                                                  As at      As at        
31  
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Contracted for but not provided                         271        177        
129 
                                                                             
Approved, not yet contracted for                        361        228        
589 
                                                                             
These capital commitments relate to the following categories of non-current
non-financial assets: 
€ million                                                              
(Restated) 
                                                        (Restated)  
(Audited) 
                                             (Reviewed) (Reviewed)      As 
at 
                                                  As at      As at         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Intangible assets                                         6         11          
9 
                                                                             
Property, plant and equipment                           626        394        
709 
                                                                             
Total capital commitments                               632        405        
718 
                                                                             
The expected maturity of these capital commitments is: 
€ million                                                              
(Restated) 
                                                        (Restated)  
(Audited) 
                                             (Reviewed) (Reviewed)      As 
at 
                                                  As at      As at         
31 
                                                30 June    30 June   
December 
                                                   2013       2012       
2012 
                                                                             
Within one year                                         438        269        
445 
                                                                             
One to two years                                        146        120        
263 
                                                                             
Two to five years                                        48         16         
10 
                                                                             
Total capital commitments                               632        405        
718 
                                                                             
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. 
19 Contingent liabilities and contingent assets 
Contingent liabilities comprise aggregate amounts as at 30 June 2013 of €14
million (as at 30 June 2012: €13 million; as at 31 December 2012: €15 
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 condensed
combined and consolidated statement of financial position for all periods
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 for all periods presented. 
20 Related party transactions 
The Group has a related party relationship with its equity accounted investees.
Transactions between Mondi Limited, Mondi plc and their respective
subsidiaries, which are related parties, have been eliminated on consolidation
and are not disclosed in this note. 
The Group and its subsidiaries, in the ordinary course of business, enter into
various sale, purchase and service transactions with equity accounted investees
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. 
With effect from 3 May 2013, Cyril Ramaphosa ceased to be a director of Mondi
Limited and Mondi plc.  As a result, all transactions with the Shanduka Group
Proprietary Limited, in which Mr Ramaphosa held a 29.6% interest, and its
subsidiaries are no longer classified as related party transactions from that
date. 
Other than the paragraph above, 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. 
21 Financial instruments' fair value disclosures 
Financial instruments that are measured in the condensed combined and
consolidated statement of financial position at fair value require disclosure
of fair value measurements by level based on the following fair value
measurement hierarchy: 
* level 1 - quoted prices (unadjusted) in active markets for identical assets 


    or liabilities;
      * level 2 - inputs other than quoted prices included within level 1 that are
    observable for the asset or liability, either directly (that is, as prices)
    or indirectly (that is, derived from prices); and
      * level 3 - inputs for the asset or liability that are not based on
    observable market data (that is, unobservable inputs).


The fair values of financial instruments that are not traded in an active
market (for example, over-the-counter derivatives) are determined using
standard valuation techniques. These valuation techniques maximise the use of
observable market data where available and rely as little as possible on Group
specific estimates. 
The significant inputs required to fair value all of the Group's financial
instruments are observable. The Group only holds level 2 financial instruments
and therefore does not hold any financial instruments categorised as either
level 1 or level 3 financial instruments. There have also been no transfers of
assets or liabilities between levels of the fair value hierarchy. 
Specific valuation methodologies used to value financial instruments include: 
* the fair values of interest rate swaps and foreign exchange contracts are 


    calculated as the present value of expected future cash flows based on
    observable yield curves and exchange rates;
      * the Group's commodity price derivatives are fair valued by independent
    third parties, who in turn calculate the fair values as the present value
    of expected future cash flows based on observable market data; and
      * other techniques, including discounted cash flow analysis, are used to
    determine the fair values of other financial instruments.


Except as detailed in the following table, the directors consider that the
carrying value amounts of financial assets and financial liabilities recorded
at amortised cost in the condensed combined and consolidated financial
statements are approximately equal to their fair values. 


                                  Carrying     amount            Fair value     
      
                                                                                
      


                 (Reviewed) (Restated) (Restated) (Reviewed) (Restated) 
(Restated) 
                            (Reviewed)  (Audited)            (Reviewed)  
(Audited) 
                                                                             
  
€ million              As at 30   As at 30   As at 31   As at 30   As at 30   
As at 31 
                  June 2013  June 2012   December  June 2013  June 2012   
December 
                                             2012                           
  2012 
                                                                             
  
Financial                                                                        
  
liabilities                                                                      


      
                                                                                


  
Borrowings                1,929      1,317      1,929      2,013      1,372     
 2,040 
                                                                             
   
22 Events occurring after 30 June 2013 
The directors declared an interim dividend of 9.55 euro cents per share as set
out in note 10. 
Production statistics 
                                                     Six       Six      
Year 
                                                  months    months     
ended 
                                                   ended     ended        
31 
                                                 30 June   30 June  
December 
                                                    2013      2012      
2012 
                                                                             
Europe & International                                                           
                                                                             
Containerboard                            Tonnes   1,077,702 1,042,937 
2,079,005 
                                                                             
Kraft paper                               Tonnes     515,822   489,279   
980,637 
                                                                             
Softwood pulp                             Tonnes   1,014,483   992,772 
1,978,583 
                                                                             
Internal consumption                      Tonnes     942,445   907,194 
1,825,916 
                                                                             
External                                  Tonnes      72,038    85,578   
152,667 
                                                                             
Corrugated board and boxes                Mm²            678       606     
1,213 
                                                                             
Industrial bags                           M units      2,017     2,005     
3,829 
                                                                             
Coating and release liners                Mm²          1,718     1,758     
3,352 
                                                                             
Consumer packaging1                       Tonnes     146,763    36,706   
121,127 
                                                                             
Uncoated fine paper                       Tonnes     708,880   715,575 
1,417,709 
                                                                             
Newsprint                                 Tonnes     103,620    98,936   
201,278 
                                                                             
Hardwood pulp                             Tonnes     547,819   527,310 
1,059,140 
                                                                             
Internal consumption                      Tonnes     513,366   483,642   
972,883 
                                                                             
External                                  Tonnes      34,453    43,668    
86,257 
                                                                             
South Africa Division                                                            
                                                                             
Containerboard                            Tonnes     132,077   132,251   
263,468 
                                                                             
Uncoated fine paper                       Tonnes     131,741   129,337   
257,747 
                                                                             
Hardwood pulp                             Tonnes     326,981   330,963   
658,368 
                                                                             
Internal consumption                      Tonnes     169,935   169,584   
320,772 
                                                                             
External                                  Tonnes     157,046   161,379   
337,596 
                                                                             
Softwood pulp2 - internal consumption     Tonnes     102,987   108,126   
215,828 
                                                                             
Newsprint2                                Tonnes      87,088   101,328   
198,024 


                                                                                


Notes:

1 Includes Nordenia from October 2012.

2 Restated to include 100% of the Mondi Shanduka Newsprint production.
Exchange rates
                                                         Six      Six     Year
                                                      months   months    ended
                                                       ended    ended       31
                                                     30 June  30 June December
                                                        2013     2012     2012


                                                                          
Closing rates against the euro                                                 
                                                                          
South African rand                                     13.07    10.37    11.17 
                                                                          
Czech koruna                                           25.95    25.64    25.15 
                                                                          
Polish zloty                                            4.34     4.25     4.07 
                                                                          
Pounds sterling                                         0.86     0.81     0.82 
                                                                          
Russian rouble                                         42.84    41.37    40.33 
                                                                          
Turkish lira                                            2.52     2.28     2.36 
                                                                          
US dollar                                               1.31     1.26     1.32 
                                                                          
Average rates for the period against the euro                                  
                                                                          
South African rand                                     12.10    10.29    10.55 
                                                                          
Czech koruna                                           25.70    25.16    25.14 
                                                                          
Polish zloty                                            4.18     4.24     4.18 
                                                                          
Pounds sterling                                         0.85     0.82     0.81 
                                                                          
Russian rouble                                         40.73    39.69    39.91 
                                                                          
Turkish lira                                            2.38     2.34     2.31 
                                                                          
US dollar                                               1.31     1.30     1.29 
                                                                           
Sponsor in South Africa: UBS South Africa (Pty) Ltd 
                                                                           
END 
-0- Aug/08/2013 06:00 GMT
 
 
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