Mondi Full-Year Report 2022

Highlights

• Strong financial performance from continuing operations
  -Underlying EBITDA of €1,848 million, up 60% (2021: €1,157 million), with underlying EBITDA margin of 20.8% (2021: 16.6%)
  -Profit before tax of €1,560 million, up 119% (2021: €712 million)
  -Basic underlying earnings per share of 195.6 euro cents, up 78% (2021: 110.1 euro cents per share)
  -Cash generated from operations of €1,292 million, up 29% (2021: €1,001 million); strong balance sheet with
  leverage (net debt to underlying EBITDA) of 0.5 times
  -Return on capital employed (ROCE) of 23.7% (2021: 13.9%)
• €1 billion expansionary capital investment pipeline on track to deliver growth across our packaging businesses
•  Good progress made on our sustainability roadmap, Mondi Action Plan 2030 (MAP2030)
  -Science-based Net-Zero targets validated

Mondi delivered a strong financial and operational performance across all key metrics. Underlying EBITDA was €1,848 million, up 60%, and ROCE increased to 23.7%. Our businesses achieved higher average selling prices which more than offset materially higher input costs. Corrugated Packaging increased underlying EBITDA by 22% to €662 million (2021: €543 million) and Flexible Packaging grew underlying EBITDA 41% to €797 million (2021: €567 million). Uncoated Fine Paper significantly improved underlying EBITDA, delivering €427 million in the year (2021: €55 million), in part due to a higher non-cash forestry fair value gain of €169 million (2021: loss of €7 million).

Group revenue of €8,902 million was up 28% on the prior year. We saw volume growth in containerboard, kraft paper and pulp
sales following continued investment across our portfolio, with lower volumes in corrugated solutions and uncoated fine paper.
Selling price increases were achieved in all businesses in response to tight market conditions and inflationary pressures.

Input costs increased materially year-on-year. Energy costs increased sharply during the year, driven predominantly by higher European gas and electricity prices. We were able to mitigate the impact of these higher costs as most of our pulp and paper mills generate the majority of their energy needs internally, with around 80% of the fuels used in this process from biomass sources, and only around 10% of our fuel sourced from natural gas. Following record European energy prices in the third quarter of 2022, these fell sharply in the fourth quarter but were, on average, sequentially higher in the second half of the year. European energy prices are currently lower than 2022 averages.