Mondi Half-Year Report 2023

Highlights

• Strong delivery from continuing operations against the backdrop of challenging market conditions
  ◦ Underlying EBITDA of €680 million, down 28% (H1 2022: €942 million)
  ◦ Basic underlying earnings per share (EPS) of 67.0 euro cents, down 32% (H1 2022: 98.7 euro cents)
  ◦ Improved cash generated from operations of €554 million (H1 2022: €519 million)
  ◦ Robust balance sheet at 0.8 times net debt to underlying EBITDA (31 December 2022: 0.5 times)
  ◦ Return on capital employed (ROCE) of 19.1% (31 December 2022: 23.7%)
• Delivering value accretive growth, sustainably
  ◦ €1.2 billion of expansionary projects on track and on budget
  ◦ Announced acquisition of Hinton Pulp mill (Canada)
  ◦ Good progress in delivering on our MAP2030 sustainability commitments
• Completed sale of three Russian packaging converting operations with proceeds of €30 million
• Sale process of Syktyvkar mill ongoing within an evolving political and regulatory environment

Corrugated Packaging delivered underlying EBITDA of €188 million, down 50% on the same period last year (H1 2022:€375 million), due to lower selling prices, softer market demand and the effects of customer destocking. Underlying EBITDA margin was 15.8%. In containerboard we increased our market share, leveraging our integrated platform and broad production capabilities while in Corrugated Solutions, good margin management supported profitability.

Flexible Packaging was more resilient, delivering underlying EBITDA of €343 million in the period, down 18% (H1 2022:€416 million), with lower volumes due to softer demand and higher input costs more than offsetting higher selling prices. Underlying EBITDA margin was 16.6%. As a global leader in the production of kraft paper and paper bags, and with a broad sustainable packaging product range, we continue to invest across our platform, supporting our leading market positions and the structural growth drivers underpinning our markets.