TIDMMNDI 
 
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) 
 
LEI: 213800LOZA69QFDC9N34 
 
JSE share code: MNP         ISIN: GB00B1CRLC47 
 
LSE share code: MNDI 
 
23 February 2017 
 
As part of the dual listed company structure, Mondi Limited and Mondi plc 
(together 'Mondi Group') notify both the JSE Limited and the London Stock 
Exchange of matters required to be disclosed under the Listings Requirements of 
the JSE Limited and/or the Disclosure Guidance and Transparency and Listing 
Rules of the United Kingdom Listing Authority. 
 
To comply with the requirements in Articles 7 and 9 of the regulatory technical 
standards of the Transparency Directive (2004/109/EC), this announcement is 
classified as additional regulated information required to be disclosed under 
the laws of a Member State. 
 
Full year results for the year ended 31 December 2016 
 
Highlights 
 
  * Strong financial performance 
      + Underlying operating profit of EUR981 million, up 3% 
      + Underlying earnings of 137.8 euro cents per share, up 3% 
      + Cash generated from operations of EUR1,401 million, up 10% 
      + Return on capital employed of 20.3% 
  * Capital projects delivering growth 
      + Completed major projects contributed incremental EUR50 million to 
        underlying operating profit in 2016 
      + Strong expansionary capital investment pipeline: over EUR800 million in 
        major projects approved and in progress 
  * Four acquisitions totalling EUR185 million, expanding our packaging interests 
  * Implemented Growing Responsibly model, defining our sustainability 
    commitments to 2020 
  * Recommended full year dividend of 57.0 euro cents per share, up 10% 
 
Financial Summary 
 
EUR million, except for percentages    Year ended      Year Change  Six months       Six Change 
and per share measures              31 December  ended 31      %       ended    months      % 
                                           2016  December        31 December  ended 31 
                                                     2015               2016  December 
                                                                                  2015 
 
Group revenue                             6,662     6,819    (2)       3,350     3,360      - 
 
Underlying EBITDA1                        1,366     1,325      3         652       654      - 
 
Underlying operating profit1                981       957      3         452       467    (3) 
 
Operating profit                            943       900      5         414       449    (8) 
 
Profit before tax                           843       796      6         361       404   (11) 
 
Per share measures 
 
Basic underlying earnings per             137.8     133.7      3 
share1 (euro cents) 
 
Basic earnings per share                  131.8     124.0      6 
(euro cents) 
 
Total dividend per share                   57.0      52.0     10 
(euro cents) 
 
Cash generated from operations            1,401     1,279     10 
 
Net debt                                  1,383     1,498 
 
Group return on capital employed          20.3%     20.5% 
(ROCE)2 
 
Notes: 
 
1     The Group presents underlying EBITDA, operating profit and related per 
share information as measures which exclude special items in order to provide a 
more effective comparison of the underlying financial performance of the Group 
between financial reporting periods.  A reconciliation of underlying operating 
profit to profit before tax is provided in note 3 of the condensed financial 
statements. 
 
2     ROCE is underlying operating profit expressed as a percentage of the 
average capital employed for the year, adjusted for impairments and spend on 
strategic projects which are not yet in operation. 
 
David Hathorn, Mondi Group chief executive, said: 
 
"I am pleased to announce another strong performance, building on our track 
record of steadily improving profitability over the last five years. Underlying 
operating profit was up 3% to EUR981 million and our return on capital employed 
was 20.3%. 
 
We saw good contributions from all our businesses despite pricing headwinds in 
a number of key paper grades. 
 
We made considerable progress in driving growth through our capital investment 
programme, delivering incremental operating profit of around EUR50 million in 
2016 from recently completed capital projects, with a further EUR30 million 
anticipated in 2017. In addition to our significant pipeline of projects 
already in progress, the Boards have approved the replacement of the recovery 
boiler at our Steti mill in the Czech Republic and installation of a 90,000 
tonne per annum machine glazed speciality kraft paper machine for a total 
investment of EUR470 million. 
 
We completed four acquisitions totalling EUR185 million in 2016, enhancing our 
product offering and geographic reach in our Corrugated and Consumer Packaging 
businesses. 
 
Our outlook for the business is positive. We have implemented or announced 
price increases in containerboard, sack kraft and uncoated fine paper grades, 
supported by good demand. We expect some inflationary cost pressures across the 
Group and a lower forestry fair value gain. Furthermore, we anticipate a more 
challenging trading environment in certain uncoated fine paper markets 
following price erosion in Europe over the course of 2016, combined with 
emerging market currency volatility. However, we expect to continue to benefit 
from contributions from our recently completed capital projects and 
acquisitions, together with steady organic growth in our downstream converting 
businesses. 
 
Our consistent and focused strategy, robust business model and firm focus on 
operational excellence all continue to contribute to our performance. We remain 
confident of continuing to deliver industry-leading returns." 
 
Group performance review 
 
Our strong performance in 2016 builds on our track record of continuous 
improvement in profitability over the last five years. Our consistent and 
focused strategy, robust business model and firm focus on operational 
excellence all continued to contribute to our performance. 
 
Group revenue of EUR6,662 million was down 2% on the prior year. Excluding the 
impact of currency movements, revenue was in line with the prior year. Good 
volume growth in Packaging Paper and Consumer Packaging and higher domestic 
selling prices in South Africa and Russia were offset by lower average selling 
prices in Packaging Paper and Fibre Packaging. 
 
Underlying operating profit of EUR981 million was up 3% on the prior year. 
Packaging Paper was negatively impacted by lower selling prices across most key 
grades and lower green energy prices, partially offset by like-for-like sales 
volume growth. Fibre Packaging continued its positive development, with volume 
growth in Corrugated Packaging and a good performance from the core European 
industrial bags business, partly offset by negative currency translation 
effects and ongoing challenges in the US industrial bags business. We continue 
to make good progress in Consumer Packaging with strong volume growth and 
improving margins. In Uncoated Fine Paper, Russian domestic price increases and 
a strong focus on productivity and efficiency more than offset negative 
currency effects from the weaker rouble and flat average European pricing. Our 
South Africa Division was negatively affected by sharply lower average export 
pulp selling prices and higher input costs which were only partially offset by 
positive currency effects and a higher fair value gain on forestry assets. 
After taking the impact of special items of EUR38 million into consideration, 
operating profit of EUR943 million was up 5% (2015 : EUR900 million). 
 
Our passion for performance is central to the way we run our business and is 
demonstrated through a continuous focus on quality, productivity and 
efficiency. We invest in our existing operations and, where appropriate, in 
strategic acquisitions to strengthen our cost advantages, generate synergies 
through integration and enhance our product and service offering and/or 
geographic reach to better serve our customers. In 2016 our recently completed 
capital investments contributed around EUR50 million in incremental operating 
profit. We completed four acquisitions during the year: two corrugated 
packaging acquisitions, SIMET in Poland and Lebedyan in Russia; and two in 
Consumer Packaging, Kalenobel in Turkey and Uralplastic in Russia. In February 
2017, we announced the acquisition of Excelsior Technologies Limited in the UK, 
further supporting the development of Consumer Packaging. 
 
The impact of maintenance shuts on underlying operating profit in 2016 was 
around EUR75 million (2015: EUR90 million), slightly above expectation due to a 
longer than anticipated shut at our Richards Bay mill (South Africa). Based on 
prevailing market prices, we estimate that the impact of planned maintenance 
shuts on underlying operating profit in 2017 will be around EUR80 million. 
 
Input costs were generally lower across our European businesses. Wood costs 
were lower than the prior year with a stable supply and demand balance. Average 
benchmark costs for paper for recycling were up around 11% on 2015 as prices 
increased in the second half of the year on strong export demand and increased 
European consumption. Energy costs were lower than the prior year due to lower 
average crude oil and gas prices. Looking forward, rising commodity input costs 
are expected to put some upward pressure on energy costs. Following the 
significant volatility in polyethylene prices in 2015, pricing was more stable 
during the year, but on average at similar levels to the prior year. In our 
South Africa Division, inflationary pressures and higher imported costs 
resulted in an increase in input costs. 
 
Volatility in foreign exchange rates had a net negative impact on underlying 

operating profit of EUR31 million. The weakening of a number of emerging market 
currencies, particularly the Russian rouble, Turkish lira, Polish zloty and 
Mexican peso, had a negative impact on translation of the profits of our Fibre 
Packaging and domestically focused Russian uncoated fine paper operations, 
while our South Africa Division benefited from the weakening of the rand due to 
its significant export position. 
 
Our cash generation remained strong with cash generated from operations of EUR 
1,401 million up 10% on the prior year. Net debt reduced by EUR115 million to EUR 
1,383 million, or 1.0 times EBITDA. 
 
Underlying earnings of 137.8 euro cents per share were up 3% compared to 2015. 
After taking the effect of special items into account, basic earnings of 131.8 
euro cents per share were up 6% compared to 2015. 
 
Our Boards have recommended payment of a final dividend of 38.19 euro cents per 
share, bringing the total dividend for the year to 57.0 euro cents per share, 
an increase of 10% on 2015. 
 
Packaging Paper (Europe & International Division) 
 
EUR million                        Year ended      Year Change  Six months       Six Change 
                                31 December  ended 31      %       ended    months      % 
                                       2016  December        31 December  ended 31 
                                                 2015               2016  December 
                                                                              2015 
 
Segment revenue                       2,056     2,156    (5)       1,011     1,034    (2) 
 
Underlying EBITDA                       483       505    (4)         232       239    (3) 
 
Underlying operating profit             361       391    (8)         169       180    (6) 
 
Underlying operating profit           17.6%     18.1%              16.7%     17.4% 
margin 
 
Special items                             -      (14)                  -         - 
 
Capital expenditure                     156       259                 86       155 
 
Net segment assets                    1,760     1,753 
 
ROCE                                  22.4%     25.5% 
 
Profitability in Packaging Paper, down 8% on the prior year, was impacted by 
lower average selling prices across most key grades,  lower green energy prices 
and the loss of contribution from the Raubling mill sold during 2015, partially 
offset by the benefits of completed capital investment projects. However, the 
business unit delivered a strong ROCE performance of 22.4%. 
 
On a like-for-like basis, excluding the impact of the sale of the Raubling 
mill, sales volumes were marginally up across all containerboard grades. 
 
As anticipated, we saw some price erosion in the kraftliner grades in the first 
half of the year. While demand growth remained solid, the market came under 
some pressure from increased supply from new capacity in Europe and competition 
from importers benefiting from weak emerging market currencies. Average 
European benchmark selling prices for unbleached kraftliner were down 5% on the 
prior year and white-top kraftliner prices were down around 2%. Supported by 
sustained good demand and a strong order position, a price increase of EUR20 per 
tonne was implemented for unbleached kraftliner in August across all European 
markets excluding southern Europe, partly offsetting the price erosion seen 
over the course of the first half of the year. In Russia, price increases for 
white-top kraftliner were implemented at the beginning of 2016 and remained 
stable throughout the year. 
 
In response to strong demand, price increases of EUR50 per tonne were recently 
implemented on all unbleached kraftliner grades in Europe, effective from March 
2017. A price increase of EUR50 per tonne has also been announced for white-top 
kraftliner to take effect from the beginning of the second quarter of 2017. In 
Russia, prices for white-top kraftliner were increased from the beginning of 
2017. 
 
Average European benchmark selling prices for recycled containerboard were down 
3% on the prior year period. Price increases of EUR40 per tonne were achieved 
from February 2017 and a further increase of EUR40 per tonne has been announced 
to take effect from the beginning of the second quarter of 2017. 
 
Sales volumes for sack kraft paper increased compared to the prior year, 
benefiting from good demand, fewer planned maintenance shuts and productivity 
improvements. Average selling prices for sack kraft paper produced in Europe 
declined by 5-6% in the early part of 2016 and remained at those levels through 
the balance of the year. Given strong demand, selling prices were increased by 
3-4% from the beginning of 2017 in all markets. 
 
We saw good demand across our range of speciality kraft papers, although sales 
volumes of certain grades were impacted by the closure of high cost production 
capacity in 2015. Selling prices were, on average, marginally lower than in the 
prior year. 
 
We have completed a number of investments across our mills in recent years and 
our focus in 2016 was on fully realising the benefits of these investments. 
These benefits include a reduction in energy costs at our Swiecie mill (Poland) 
following the completion in 2015 of the new recovery boiler, and improved 
productivity following the completion of a number of smaller investments across 
our production base. 
 
Input costs were at a similar level to the prior year with the business 
benefiting from cost savings initiatives and generally lower raw material and 
energy costs which offset higher paper for recycling costs and other 
inflationary increases. Green energy prices were significantly lower in Poland 
due to legislative changes, resulting in a EUR20 million reduction in income from 
green energy credits compared to the prior year, including the impact of a 
write-down of EUR6 million in the carrying value of the inventory of green energy 
credits held at year end. 
 
Planned maintenance shuts at our Syktyvkar (Russia) and Swiecie (Poland) mills 
were completed during the first half of the year, and a further planned 
maintenance shut at Swiecie and the majority of our kraft paper mill shuts were 
completed in the second half of the year. A similar planned maintenance 
schedule is anticipated in 2017 although the shuts at our Swiecie and Steti 
mills will be extended as we progress our major capital investments in those 
operations. 
 
Fibre Packaging (Europe & International Division) 
 
EUR million                        Year ended      Year Change  Six months       Six Change 
                                31 December  ended 31      %       ended    months      % 
                                       2016  December        31 December  ended 31 
                                                 2015               2016  December 
                                                                              2015 
 
Segment revenue                       1,929     2,031    (5)         961       985    (2) 
 
Underlying EBITDA                       194       187      4         100        86     16 
 
Underlying operating profit             123       120      3          64        52     23 
 
Underlying operating profit            6.4%      5.9%               6.7%      5.3% 
margin 
 
Special items                          (13)      (21)               (13)      (11) 
 
Capital expenditure                     107       118                 57        60 
 
Net segment assets                    1,006       935 
 
ROCE                                  13.5%     13.9% 
 
In Fibre Packaging our underlying operating profit increased 3% to EUR123 million 
and ROCE was 13.5%, with volume growth in Corrugated Packaging and a good 
performance from the core European industrial bags business partly offset by 
negative currency translation effects and ongoing challenges in the US and CIS 
industrial bags businesses. 
 
Corrugated Packaging achieved good organic volume growth, particularly in the 
Czech Republic and Germany, supplemented by two acquisitions to expand our 
corrugated network. Mondi SIMET S.A. (Poland) complements our existing 
geographic footprint, allows for logistics optimisation and provides increased 
production capacity in the growing Polish market. We started building work for 
the conversion of this plant to a high-efficiency, heavy-duty box plant early 
in 2017. Mondi Lebedyan (Russia) provides us with excellent opportunities in 
the local agricultural market and increases our ability to serve our 
multinational customers. Sales volumes were negatively impacted in Turkey, due 
to ongoing political turbulence in the region, and Poland, where sales growth 
was tempered by the Russian embargo preventing the export of fresh fruit and 
vegetables to that market. Profitability was also negatively affected by the 
weaker Turkish lira and Polish zloty. Over the last two years, we have invested 
significantly in all our corrugated operations, helping us to better serve our 
customers and meet their more sophisticated product needs. The business 
benefited from lower paper input costs and productivity gains. 
 
In Industrial Bags, while European markets remained robust, the business was 
negatively impacted by challenging market conditions in the US and CIS. 
Overall, sales volumes declined 1% with good growth in Europe and the Middle 
East offset by declines in the US and CIS. The breadth and geographic reach of 
our Industrial Bags network gives us the unique ability to fully optimise our 
production network to better serve our customers. In 2016, we closed our 
facility at Sendenhorst (Germany), while continuing to serve our customers from 
other sites and, in December 2016, announced the closure of our facility in 
southern Belgium. We have also significantly increased the level of exports 
from our Mexican operations into the US, and started production at our new 
operation in Cote d'Ivoire. Lower sales volumes were partly compensated by 
significant cost savings resulting from a strong focus on cost management and 

the benefits of the restructuring and rationalisation activities. The weaker 
Mexican peso had a negative impact on the translation of profits from our 
Mexican operations. 
 
Consumer Packaging (Europe & International Division) 
 
EUR million                        Year ended      Year Change  Six months       Six Change 
                                31 December  ended 31      %       ended    months      % 
                                       2016  December        31 December  ended 31 
                                                 2015               2016  December 
                                                                              2015 
 
Segment revenue                       1,562     1,469      6         797       739      8 
 
Underlying EBITDA                       198       177     12          98        94      4 
 
Underlying operating profit             121       108     12          57        59    (3) 
 
Underlying operating profit            7.7%      7.4%               7.2%      8.0% 
margin 
 
Special items                          (19)      (22)               (19)       (7) 
 
Capital expenditure                      91        92                 49        42 
 
Net segment assets                    1,270     1,146 
 
ROCE                                  10.5%     10.7% 
 
Consumer Packaging made good progress with strong volume growth and improving 
margins. Underlying operating profit increased 12% to EUR121 million with a ROCE 
of 10.5%. 
 
Good progress was made in our ongoing initiatives to improve the product mix. 
Strong volume growth was achieved in our higher value-added segments of 
personal care components, consumer laminates, technical films, and release 
liners. The favourable product mix and focus on value-added segments resulted 
in an improvement in our gross margin. On a like-for-like basis, excluding the 
impact of acquisitions and disposals, sales volumes grew around 4%. We remain 
well positioned for further growth. 
 
The integration of the businesses acquired during 2015 is progressing well and 
we are realising the synergies from these acquisitions. Two further 
acquisitions were completed in 2016, growing our product offering and 
geographic reach. Mondi Kalenobel (Turkey) produces flexible consumer packaging 
for ice cream and other applications, as well as aseptic cartons, and serves 
both international FMCG companies and regional food and beverage producers. The 
company exports approximately half of its production - mainly to Western 
Europe, the Middle East, and North Africa. Mondi Uralplastic (Russia) 
manufactures a range of consumer flexible packaging products for food, personal 
care, homecare, and other applications for both local and international 
customers. A small net charge to underlying operating profit was incurred from 
these acquisitions in the second half of the year due to the effects of 
acquisition accounting and transaction costs. 
 
In February 2017, we announced the acquisition of Excelsior Technologies 
Limited in the UK, further supporting the development of Consumer Packaging in 
high growth product applications. Excelsior is a vertically-integrated producer 
of innovative flexible packaging solutions, mainly for food applications, with 
a unique packaging technology for microwave steam cooking, complementing and 
enhancing our global food packaging offering. 
 
We completed the closure of operations in Italy and Spain, announced in 2015, 
while retaining the ability to continue to serve customers from our sites in 
central and eastern Europe. During 2016, we further debottlenecked some of our 
plants and reallocated production between our sites to allow for site 
specialisation, optimised production activities, cost savings, productivity 
improvements, and reduced waste. In the US, we announced the restructuring of 
our release liner operations, including the closure of one site. We appointed a 
chief innovation officer and reorganised our research and development 
activities to further strengthen our capabilities in this area. Fixed costs 
were higher, in line with our increased focus on innovation and customer 
service, partially offset by one-off gains in the first half of the year. 
 
Uncoated Fine Paper (Europe & International Division) 
 
EUR million                        Year ended      Year Change  Six months       Six Change 
                                31 December  ended 31      %       ended    months      % 
                                       2016  December        31 December  ended 31 
                                                 2015               2016  December 
                                                                              2015 
 
Segment revenue                       1,246     1,233      1         621       607      2 
 
Underlying EBITDA                       343       291     18         171       139     23 
 
Underlying operating profit             264       212     25         131        99     32 
 
Underlying operating profit           21.2%     17.2%              21.1%     16.3% 
margin 
 
Capital expenditure                      53        65                 26        33 
 
Net segment assets                      851       821 
 
ROCE                                  36.0%     25.6% 
 
Our Uncoated Fine Paper business delivered an exceptional performance, 
generating underlying operating profit of EUR264 million, up 25% on the prior 
year, with a ROCE of 36%. Domestic price increases in the CIS markets and a 
strong focus on productivity and efficiency more than offset negative currency 
effects from the weaker rouble and flat European pricing. 
 
Uncoated fine paper sales volumes increased 1% over the prior year, reflecting 
a strong performance in an overall declining market. European market demand is 
estimated to have contracted in 2016 by 3-4%, following stable demand in 2015, 
bringing the average demand contraction over the past two years to 1-2% per 
year, in line with the longer-term trend. Demand in the CIS remained stable. 
 
Benchmark average selling prices in Europe were similar to the prior year, but 
2% down in the second half of the year compared to the first half. Selling 
price increases were implemented at the beginning of the year but came under 
pressure early in the second half due to weak European demand and pressure from 
imports offsetting the benefits of industry capacity rationalisation in the 
prior year. Demand improved towards the end of year and a price increase of 
5-7% has been announced across all uncoated fine paper grades in Europe from 
February 2017. 
 
Selling prices were increased in Russia at the beginning of 2016, offsetting 
the effects of domestic cost inflation. Prices remain stable going into 2017. 
 
The business benefited from generally lower input costs, particularly energy 
costs. In Russia, wood costs were lower in rouble terms, while in Europe wood 
costs increased marginally. Our commercial excellence programmes, focused on 
purchased material, operating efficiencies and productivity improvements, 
contributed to good cost control, offsetting inflationary cost pressures, most 
notably in Russia. Hardwood pulp prices were 11% lower in euro terms providing 
a benefit to our semi-integrated Neusiedler (Austria) operations. 
 
Planned maintenance shuts were completed at Syktyvkar in the first half of the 
year, at Ruzomberok in both the first and second half, and at Neusiedler in the 
second half of the year. In 2017, our Syktyvkar shut is planned for the first 
half of the year and our Ruzomberok and Neusiedler mill shuts are scheduled for 
the second half. 
 
South Africa Division 
 
EUR million                        Year ended      Year Change  Six months       Six Change 
                                31 December  ended 31      %       ended    months      % 
                                       2016  December        31 December  ended 31 
                                                 2015               2016  December 
                                                                              2015 
 
Segment revenue                         594       652    (9)         304       338   (10) 
 
Underlying EBITDA                       182       199    (9)          68       110   (38) 
 
Underlying operating profit             147       161    (9)          49        92   (47) 
 
Underlying operating profit           24.7%     24.7%              16.1%     27.2% 
margin 
 
Special items                           (6)         -                (6)         - 
 
Capital expenditure                      58        61                 33        29 
 
Net segment assets                      731       563 
 
ROCE                                  27.8%     30.1% 
 
Our South Africa Division was negatively affected by sharply lower average pulp 
export selling prices and higher input costs which were only partially offset 
by positive currency effects, a higher fair value gain on forestry assets and 
domestic price increases. Underlying operating profit of EUR147 million was down 
9% on a very strong performance in the prior year and ROCE was 27.8%. 
 
Strong domestic demand for uncoated fine paper and white-top kraftliner was met 
by reducing exports of these products and increasing the amount of pulp 
converted to these paper grades. Domestic demand for pulp decreased, 
compensated by a higher level of exports. Overall, sales volumes were 
marginally lower than in the prior year. 
 
Domestic selling prices were higher across all our grades. Export prices for 
white-top kraftliner were broadly in line with the prior year and average 
benchmark US dollar pulp prices were around 11% lower than the previous year. 
Lower export prices were partially compensated by the weaker rand. 
 
Forestry gains are dependent on a variety of factors over which we have limited 
control. In 2016, selling prices of timber increased significantly and a fair 
value gain of EUR64 million (2015: EUR40 million) was recognised, of which EUR48 
million was recognised in the first half of the year. The increase in the fair 

value gain was offset by the consequent impact of higher felling costs. 
 
Inflationary price increases in labour and electricity, higher wood costs 
mainly due to the forestry revaluation, and the impact of the weaker South 
African rand on imported materials put pressure on input costs. These impacts 
were partially mitigated by our focus on cost optimisation, driving 
efficiencies and reducing waste. 
 
An extended planned maintenance shut at Richards Bay, which included the tie-in 
of our recent capital investments, took place during the second half of 2016 
and a much shorter shut is planned for the second half of 2017. 
 
Special items 
 
Special items are those items of financial performance that we believe should 
be separately disclosed to assist in the understanding of our underlying 
financial performance. Special items are considered to be material either in 
nature or in amount. 
 
The net special item charge of EUR38 million before tax comprised the following: 
 
* Restructuring and closure costs of EUR17 million and related impairments of EUR 
15 million for the closure of an Industrial Bags (Fibre Packaging) plant in 
southern Belgium and restructuring of our US release liner business (Consumer 
Packaging), including the closure of one operation. 
 
* In our South Africa Division, we took the decision to restart our second 
uncoated fine paper machine to meet domestic demand for reels and, at the same 
time, reduce our production of newsprint in response to declining demand. This 
gave rise to a further impairment of the newsprint assets of EUR7 million, the 
reversal of impairment of the uncoated fine paper assets of EUR2 million, and 
restructuring costs of EUR1 million. 
 
Further detail is provided in note 4 of our condensed combined and consolidated 
financial statements. 
 
Tax 
 
Based on our geographic profit mix and the applicable tax rates, we would 
expect our tax rate to be around 22%. However, we benefited from tax incentives 
related to our capital investments in Slovakia, Poland and Russia. In addition, 
we recognised deferred tax assets related to previously unrecognised tax losses 
which we now expect to be able to utilise in the coming years. As such, our 
underlying tax charge for 2016 of EUR166 million (2015: EUR161 million) reflects an 
effective tax rate of 19%, consistent with 2015. Tax relief on special items 
amounted to EUR9 million (2015: EUR10 million). 
 
Tax paid in 2016 of EUR173 million (2015: EUR160 million) is higher than the 2016 
tax charge as a result of the timing of final tax payments for 2015 and earlier 
financial years. 
 
Going forward, assuming a similar profit mix, we would anticipate marginal 
upward pressure on the tax rate over the next three years as it moves towards 
the expected tax rate of 22%. 
 
Cash flow 
 
Our cash generation remained strong. In 2016, the cash generated from our 
operations was EUR1,401 million, up 10%. On average over the last five years, 
cash generated from operations has increased by 10.5% per year. 
 
Working capital as a percentage of revenue was 12%, marginally up on the prior 
year (11.6%). The net cash inflow from movements in working capital during the 
year was EUR68 million (2015: inflow of EUR9 million). 
 
We paid dividends of EUR274 million to shareholders (2015: EUR209 million). 
Interest paid of EUR82 million (2015: EUR93 million) was lower than the prior year, 
mainly due to the lower average net debt and composition of our borrowings. 
 
In 2016, we invested EUR465 million (2015: EUR595 million) in capital expenditure 
and completed four acquisitions with a total purchase price, on a debt and cash 
free basis, of EUR185 million. 
 
Capital investments 
 
Investing in our high-quality, low-cost assets to maintain and enhance our 
competitive advantage is of particular importance in our pulp and paper assets 
where products are generally more commoditised and low-cost production is key. 
Our focus is on enhancing our cost competitiveness, improving energy 
efficiency, meeting the needs of our customers and delivering organic growth in 
our packaging businesses. 
 
Our disciplined approach to investigating, approving and executing capital 
projects is one of our key strengths and plays an important role in 
successfully delivering the returns we require. Over the last three years, our 
major capital projects have contributed around EUR150 million of incremental 
operating profit, including EUR50 million in 2016, and we expect to generate a 
further EUR30 million in 2017. 
 
We are in the process of commissioning the second phase of our project at 
Swiecie (Poland), which will provide an additional 100,000 tonnes per annum of 
softwood pulp and 80,000 tonnes per annum of lightweight kraftliner. At our 
Steti mill (Czech Republic), the ramp-up of our rebuilt paper and inline 
coating machine has been slower than anticipated. We have allocated additional 
capital to meet quality requirements that are higher than the original project 
specifications, and expect to ramp up production over the course of 2017. 
 
Towards the end of 2016 we completed the investment project to upgrade the 
woodyard at our Richards Bay mill (South Africa), which has significantly 
improved efficiencies at the mill and facilitated improved efficiencies in wood 
handling processes in our forests, providing higher-quality fibre, reduced 
maintenance costs, improved reliability, and some energy savings. Our 
investment to produce unbleached kraftliner in addition to white-top kraftliner 
at our Richards Bay mill gives us the opportunity to supply our customers with 
this specialised product. 
 
In recent years, we have invested significantly in the modernisation and growth 
of our Corrugated Packaging and Consumer Packaging businesses. Looking forward, 
while still considering capital investment opportunities in these businesses, 
we are focused on the optimisation of our existing operations and recent 
investments. 
 
We have a strong pipeline of large projects over the next few years: 
 
* The new 300,000 tonne per annum kraft top white machine at Ruzomberok (EUR 
310 million). This project remains subject to obtaining approval of tax 
incentives from the European Commission and necessary permitting. 
 
* During 2016, the Boards approved a new woodyard and bleaching line 
modernisation at Steti (EUR41 million). 
 
* In January 2017, the Boards approved a further EUR470 million for the 
replacement of the recovery boiler at Steti, the rebuild of the fibre lines, 
the debottlenecking of the paper machines and an investment in a new 90,000 
tonnes per annum machine glazed speciality kraft paper machine. This project 
remains subject to obtaining tax incentives and necessary permitting. 
 
Given the approved project pipeline, our annual capital expenditure is expected 
to be in the range of EUR600-650 million in 2017 and EUR800-850 million in 2018 as 
expenditure on these large projects accelerates. 
 
Treasury and borrowings 
 
Net debt at 31 December 2016 was down EUR115 million at EUR1,383 million (2015: EUR 
1,498 million), reflecting our strong cash generating capacity despite our 
ongoing capital expenditure programme and EUR185 million spent on acquisitions. 
 
On 14 April 2016, we issued a 1.5% EUR500 million Eurobond with an eight year 
term under our European Medium Term Note Programme, thereby extending the 
Group's maturity profile and ensuring ample liquidity. At the end of the year, 
EUR812 million of our EUR2.5 billion committed debt facilities remained undrawn and 
we held net cash of EUR377 million. The weighted average maturity of our 
Eurobonds and committed debt facilities was 3.9 years at 31 December 2016. 
Gearing at 31 December 2016 was 27.2% and our net debt to 12 month trailing 
EBITDA ratio was 1.0 times, well within our key financial covenant requirement 
of 3.5 times. 
 
Our credit ratings were reaffirmed during the year. Our credit rating from 
Standard & Poor's is BBB (stable outlook) and from Moody's Investors Service is 
Baa2 (stable outlook). 
 
Net finance costs of EUR101 million were EUR4 million lower than the previous year. 
Average net debt of EUR1,476 million was 11% lower than the prior year and our 
effective interest rate was 6.2% (2015: 6.3%). Net finance costs are expected 
to reduce in 2017 due to the redemption of the April 2017 5.5% EUR500 million 
Eurobond from available cash and committed undrawn debt facilities. 
 
Growing Responsibly 
 
Our long-term success is dependent on our ability to integrate sustainability 
across the Group. This ensures that we can continue to address the risks and 
opportunities that arise from global environmental and societal trends, retain 
our competitive edge and generate value for our stakeholders. We believe that 
being part of the solution to global challenges will secure the long-term 
success of our business and secure the wellbeing of our communities and other 
stakeholders. 
 
We have a strong track record of delivering on our sustainability commitments. 
At the end of 2015 we completed our previous commitment period and this year we 
launched our Growing Responsibly model. While growing responsibly has long been 
part of our philosophy, the model provides the business with a formal framework 
to demonstrate, monitor and improve the way sustainability is embedded in the 
business. The model includes 16 clearly defined 2020 commitments (the climate 
commitment runs to 2030) across 10 action areas. 
 
With the resultant strong focus on a safe, fair and diverse workforce, working 
towards a more transparent and responsible supply chain, and continued 
commitment to minimising our climate footprint, we are able to address risks 
and opportunities across our business. A number of our recent, ongoing and 
planned capital expenditure projects will help us to meet our new commitments, 
particularly those relating to green energy and emissions reduction. 
 
Our people are important to us, particularly when it comes to ensuring that 
everyone returns home safely to their families every day. It is very 

encouraging that the steps we have taken resulted in a significantly improved 
total recordable case rate in 2016. With zero harm our ultimate goal, we have 
been working hard to eliminate fatal and life-altering injuries. Our focus on 
the top fatal risks at all operations has allowed us to better anticipate and 
manage our highest risk activities - which usually occur during annual 
maintenance shuts and project implementation. These efforts thankfully 
contributed to us experiencing no fatalities or life-altering injuries during 
the year.  Regrettably in February 2017 we suffered a fatality in our South 
African forestry operations following a timber vehicle accident.  We remain 
determined to focus on top risks so that fatalities and life-altering injuries 
are not a part of our future. 
 
Dividend 
 
The Boards' aim is to offer shareholders long-term dividend growth within a 
targeted dividend cover range of two to three times over the business cycle. 
Given our strong financial position and the Boards' stated objective to 
increase distributions to shareholders through the ordinary dividend, the 
Boards have recommended an increase in the final dividend. 
 
The Boards of Mondi Limited and Mondi plc have recommended a final dividend of 
38.19 euro cents per share (2015: 37.62 euro cents per share), payable on 
18 May 2017 to shareholders on the register on 21 April 2017. Together with the 
interim dividend of 18.81 euro cents per share, paid on 13 September 2016, this 
amounts to a total dividend for the year of 57.0 euro cents per share, an 
increase of 10% on the 2015 total dividend of 52.0 euro cents per share. 
 
The final dividend is subject to the approval of the shareholders of Mondi 
Limited and Mondi plc at the respective Annual General Meetings scheduled for 
11 May 2017. 
 
Outlook 
 
Our outlook for the business is positive. We have implemented or announced 
price increases in containerboard, sack kraft and uncoated fine paper grades, 
supported by good demand. We expect some inflationary cost pressures across the 
Group and a lower forestry fair value gain. Furthermore, we anticipate a more 
challenging trading environment in certain uncoated fine paper markets 
following price erosion in Europe over the course of 2016, combined with 
emerging market currency volatility. However, we expect to continue to benefit 
from contributions from our recently completed capital projects and 
acquisitions, together with steady organic growth in our downstream converting 
businesses. 
 
Our consistent and focused strategy, robust business model and firm focus on 
operational excellence all continue to contribute to our performance. We remain 
confident of continuing to deliver industry-leading returns. 
 
Principal risks and uncertainties 
 
The Boards are responsible for the effectiveness of the Group's risk management 
activities and internal control processes. They have put procedures in place 
for identifying, evaluating, and managing the significant risks that the Group 
faces. In combination with the audit committee, the Boards have conducted a 
robust assessment of the principal risks to which Mondi is exposed and they are 
satisfied that the Group has effective systems and controls in place to manage 
its key risks within the risk tolerance levels established. 
 
Risk management is by nature a dynamic and ongoing process. Our approach is 
flexible to ensure that it remains relevant at all levels of the business, and 
dynamic to ensure we can be responsive to changing business conditions. This is 
particularly important given the diversity of the Group's locations, markets 
and production processes. Our internal control environment is designed to 
safeguard the assets of the Group and to provide reasonable assurance that the 
Group's business objectives will be achieved. 
 
Strategic risks 
 
The industries and geographies in which we operate expose us to specific 
long-term risks which are accepted by the Boards as a consequence of the 
Group's chosen strategy and operating footprint. 
 
While there have been no significant changes in our strategic risk exposure 
during the year, we continue to monitor recent capacity announcements and the 
developments in the process as the UK seeks to exit the European Union. 
 
The executive committee and Boards monitor our exposure to these risks and 
evaluate investment decisions against our overall exposures so that our 
strategic capital investments and acquisitions take advantage of the 
opportunities arising from our deliberate exposure to such risks. 
 
Industry productive capacity 
 
Plant utilisation levels are the main driver of profitability in paper mills. 
New capacity additions are usually in large increments which, through their 
impact on the supply/demand balance, influence market prices. Unless market 
growth exceeds capacity additions, excess capacity may lead to lower selling 
prices. In our converting operations newer technology may lower operating costs 
and provide increased product functionality impacting margins. 
 
We monitor industry developments in terms of changes in capacity and 
utilisation levels, as well as trends and developments in our own product 
markets. 
 
Our strategic focus on low-cost production and innovation activities to produce 
higher value added products, combined with our focus on growing markets and 
consistent investment in our operating capacity, ensures that we remain 
competitive. 
 
Product substitution 
 
Changing global socio-economic and demographic trends and consumption patterns 
and increased public awareness of sustainability challenges affect the demand 
for Mondi's products. Customers' needs and purchasing power are changing in 
emerging markets. Substitution may be to different products not produced by 
Mondi or to different solutions meeting the same customer requirement. Factors 
that impact the demand for our products include reduced weight of packaging 
materials, increased use of recycled materials, electronic substitution of 
paper products, increased demand for high-quality printed material, certified 
and responsibly produced goods, and specific material qualities. 
 
Our ability to meet changes in consumer demand depends on our capacity to 
correctly anticipate change and develop new products on a sustainable, 
competitive and cost-effective basis. Opportunities also exist for us to take 
market share from substitutes produced by our competitors. Our focus is on 
products enjoying positive substitution dynamics and growing regional markets 
as we work with our customers to develop new markets and new products. Our 
broad range of converting products provides some protection from the effects of 
substitution between paper and plastic-based packaging products. 
 
Fluctuations and variability in selling prices or gross margins 
 
Our selling prices are determined by changes in capacity and demand for our 
products, which are, in turn, influenced by macro-economic conditions, consumer 
spending preferences, and inventory levels maintained by our customers. Changes 
in prices differ between products and geographic regions and the timing and 
magnitude of such changes have varied significantly over time. 
 
Our strategic focus is on higher growth markets and products where we enjoy a 
competitive advantage through innovation, proximity or production cost. We 
continue to invest in our high-quality, low-cost production assets to ensure we 
maintain our competitive cost position. We are committed to meeting service 
levels and product quality requirements. Our high levels of vertical 
integration reduce our exposure to price volatility of our key input costs. Our 
financial policies and structures take the inherent price volatility of the 
markets in which we operate into consideration. 
 
Country risk 
 
We have production operations across more than 30 countries; some in 
jurisdictions where the political, economic, and legal systems are less 
predictable than in countries with more developed institutional structures. 
Political or economic upheaval, inflation, changes in laws, nationalisation, or 
expropriation of assets may have a material effect on our operations in those 
countries. 
 
Despite improvements in certain segments of the global economy, uncertainties 
remain over slowing growth, political and economic structural weakness in the 
eurozone's single currency framework, and uncertainty over the outcomes of the 
UK's decision to exit from the European Union. 
 
Areas of weaker governance also present the challenge of addressing potential 
human rights issues in our operations and supply chain. The introduction of the 
UK Modern Slavery Act has further highlighted the need to identify and address 
potential risks of child labour, forced or bonded labour and human trafficking 
in our supply chain. From a human capital perspective, we face different 
demographic and social conditions in each country which affects the 
availability of skills and talent for the Group. 
 
We actively monitor all countries and environments in which we operate. Regular 
formal and informal interaction with government officials, local communities, 
and business partners assist us to remain abreast of changes and new 
developments. The Boards have approved specific country risk premiums to be 
added to the required returns on investment projects in those countries where 
risks are deemed to be higher and new investments are subject to rigorous 
strategic and commercial evaluation. Where we have large operations in higher 
risk locations, we maintain a permanent internal audit presence and operate 
asset protection units. 
 
We are in the process of reviewing how we assess, monitor, and manage risks in 
our supply chain, including the use of country-based risk assessment tools and 
databases. We actively engage with our employees, communities and other 
stakeholders for a better understanding of local socio-economic conditions and 
development needs. Our geographic diversity and decentralised management 
structure, utilising local resources in countries in which we operate, reduces 

our exposure to any specific jurisdiction. 
 
Financial risks 
 
We aim to maintain an appropriate capital structure and to conservatively 
manage our financial risk exposures in compliance with all laws and 
regulations. 
 
Despite ongoing short-term currency volatility and increased scrutiny of the 
tax affairs of multinational companies, our overall residual risk exposure 
remains similar to previous years, reflecting our conservative approach to 
financial risk management. 
 
Capital structure 
 
A strong and stable financial position increases our flexibility and provides 
us with the ability to take advantage of strategic opportunities as they arise. 
Our ability to raise debt and/or equity financing is significantly influenced 
by general economic conditions, developments in credit markets, equity market 
volatility, and our credit rating. Failure to obtain financing at reasonable 
rates could prevent us from realising our strategy and have a negative impact 
on our competitive position. 
 
We operate a central treasury function under a board-approved treasury policy. 
We provide regular reporting to the Boards on our treasury management policies. 
We aim to maintain an investment grade credit rating and we have access to a 
variety of sources of funding with varying maturities. We only enter into 
contracts relating to financial instruments with counterparties that have 
investment grade credit ratings. 
 
Currency risk 
 
We operate in more than 30 countries and are thus exposed to the effect of 
changes in foreign currency rates. The impact of currency fluctuations affect 
us because of mismatches between the currencies in which our operating costs 
are incurred and those in which revenues are received. Key operating cost 
currencies that are not fully offset by local currency denominated revenues 
include the South African rand, Polish zloty, Swedish krona, and Czech koruna; 
while the revenues generated in US dollar, Russian rouble and UK pound sterling 
are greater than operating costs incurred in those currencies. In addition, 
appreciation of the euro compared with the currencies of the other key paper 
producing regions or paper pricing currencies, notably the US dollar, would 
reduce the competitiveness of the products Mondi produces in Europe compared to 
imports from such key paper-producing regions which could potentially lead to 
lower revenues and earnings. 
 
We fund our entities in their local currencies to minimise translation risk. 
This exposes us to interest rate risk from these currencies which we aim to 
manage through interest rate swaps and fixed rate borrowings. Balance sheet 
exposure and material forecast future capital expenditure transactions are 
hedged. We do not permit speculative currency positions. We do not hedge our 
exposure to projected future sales or purchases and our businesses respond to 
currency fluctuations through changes in selling prices or increasing the level 
of exports where competitiveness improves as currencies weaken. Our strategic 
focus on low-cost production assets and operational efficiency provide inherent 
cost advantages, protecting us from adverse currency fluctuations. 
 
Tax risks 
 
We operate in a number of countries - all with different tax systems. We make 
significant intragroup charges, the basis for which is subject to review during 
tax audits. In addition, the international tax environment is becoming more 
onerous, requiring increasing transparency and reporting and in-depth scrutiny 
of the tax affairs of multinational companies. 
 
The Boards have approved the Group's Tax Policy. We aim to manage our affairs 
conservatively and our operations are structured tax efficiently to take 
advantage of available incentives and exemptions. We have dedicated tax 
resources throughout the Group supported by a centralised Group tax team. We 
obtain external advisory opinions for all major tax projects, such as 
acquisitions and restructuring activities, and make use of external benchmarks 
where possible. Arm's length principles are applied in the pricing of all 
intra-group transactions in accordance with Organisation for Economic 
Cooperation and Development guidelines. 
 
Operational risks 
 
A low residual risk tolerance is demonstrated through our focus on operational 
excellence, investment in our people and commitment to the responsible use of 
resources. 
 
Our investments to improve our energy efficiency, engineer out our most 
significant fatal risks, improve operating efficiencies, and renew our 
equipment continue to reduce the likelihood of operational risk events. 
However, the potential impact of any such event remains unchanged. 
 
Cost and availability of raw materials 
 
Access to sustainable sources of raw materials is essential to our operations. 
We have access to our own sources of wood in Russia and South Africa and we 
purchase wood, paper for recycling, pulp, and polymers for film production to 
meet our needs in the balance of our operations. Wood prices and availability 
may be adversely affected by reduced quantities of available wood supply that 
meet our standards for chain-of-custody certified or controlled wood and 
initiatives to promote the use of wood as a renewable energy source. 
 
We are committed to acquiring our raw materials from sustainable, responsible 
sources and avoiding the use of any controversial or illegal supply. We are 
involved in multi-stakeholder processes to address challenges in meeting the 
global demand for sustainable, responsible fibre and we encourage legislation 
supporting the local collection of recycled materials. The sustainable 
management of our forestry operations is key in managing our overall 
environmental impact, helping to protect ecosystems, and developing resilient 
landscapes. We have built strong forestry management resources in Russia and 
South Africa to actively monitor and manage our wood resources in those 
countries. We have multiple suppliers for each of our operations and our 
centralised procurement teams work closely with our operations in actively 
pursuing longer term agreements with strategic suppliers. We have developed an 
internal monitoring and risk assessment system to understand and manage the 
performance of our suppliers and their adherence to our Suppliers' Code of 
Conduct. 
 
Energy security and related input costs 
 
Mondi is a significant consumer of electricity which is generated internally 
and purchased from external suppliers. Where we do not generate electricity 
from biomass and by-products of our production processes, we are dependent on 
external suppliers for raw materials such as gas, oil and coal. Increasing 
energy costs contribute significantly to increasing chemical, fuel, and 
transportation costs which are often difficult to pass on to customers. As an 
energy-intensive business, we face potential physical and regulatory risks 
related to climate change. 
 
We monitor our electricity usage, carbon emission levels and use of renewable 
energy. Most of our larger operations have high levels of electricity 
self-sufficiency. We focus on improving the energy efficiency of our operations 
by investing in improvements to our energy profile and increased electricity 
self-sufficiency, while reducing ongoing operating costs and carbon emission 
levels. Where we generate electricity surplus to our own requirements, we may 
sell such surplus externally. We also generate revenue from the sale of green 
energy credits in certain of our operations at prices determined in the open 
market. 
 
Technical integrity of our operating assets 
 
We have five major mills which account for approximately 74% of our total pulp 
and paper production capacity and a significant consumer packaging 
manufacturing facility in Germany. If operations at any of these key facilities 
are interrupted for any significant length of time, it could have a material 
adverse effect on our financial position or performance. Accidents or incidents 
such as fires, explosions, or large machinery breakdowns could result in 
property damage, loss of production, reputational damage, and/or safety 
incidents. 
 
Our capital investment programme supports the replacement of older equipment to 
improve both reliability and integrity and our proactive repair and maintenance 
strategy is designed to improve production reliability and minimise breakdown 
risks. We conduct detailed risk assessments of our high-priority equipment and 
have specific processes and procedures in place for the ongoing management and 
maintenance of such equipment. We actively monitor all incidents and have a 
formal process which allows us to share lessons learnt across our operations, 
identify emerging issues, conduct benchmarking, and evaluate the effectiveness 
of our risk reduction activities. 
 
Environmental impact of our operations 
 
We operate in a high-impact sector and need to manage the associated risks and 
responsibilities. Our operations are water, carbon and energy intensive; 
consume materials such as fibre, polymers, metals and chemicals; and generate 
emissions to air, water and land. We are the custodian of more than two million 
hectares of forested land. We are subject to a wide range of international, 
national and local environmental laws and regulations, as well as the 
requirements of our customers and expectations of our broader stakeholders. 
Costs of continuing compliance, potential restoration and clean-up activities, 
and increasing costs from the effects of emissions have an adverse impact on 
our profitability. 
 
We ensure that we are complying with all applicable environmental, health and 
safety requirements where we operate. Our own policies and procedures, at or 
above local policy requirements, are embedded in all our operations and are 
supported through the use of externally accredited environmental management 
systems. We focus on a clean production philosophy to address the impact from 
emissions, discharge, and waste. We focus on increasing the energy efficiency 
of our operations and using biomass-based fuels in order to reduce our use of 

fossil-based energy sources. We have undertaken detailed compliance assessments 
regarding Industry Emissions and Energy Efficiency Directives to determine 
future investment requirements. We emphasise the responsible management of 
forests and associated ecosystems and protect high conservation value areas. 
 
Employee and contractor safety 
 
We operate large facilities, often in remote locations. Accidents/incidents 
cause injury to our employees or contractors, property damage, lost production 
time, and/or harm to our reputation. Risks include: fatalities, serious 
injuries, illness, disease, and substance abuse. 
 
We have a goal of zero harm. We continually monitor incidents and close calls 
and actively transfer learnings across our operations. We apply an externally 
accredited safety management system and conduct regular audits of our 
operations to ensure our facilities remain fit-for-purpose. We have implemented 
a project to engineer out the most significant risks in our operations which is 
supported by robust controls and procedures for operating those assets. We 
provide extensive training to ensure that performance standards and practice 
notes are communicated and understood and our incentives are impacted by the 
non-achievement of safety milestones. 
 
Compliance risks 
 
We have a zero tolerance approach to compliance risks. Our strong culture and 
values, emphasised in every part of our business with a focus on integrity, 
honesty, and transparency, underpins our approach. 
 
Reputational risk 
 
Non-compliance with the legal and governance requirements and globally 
established responsible business conduct in any of the jurisdictions in which 
we operate and within our supply chain could expose us to significant risk if 
not actively managed. These requirements include laws relating to the 
environment, exports, price controls, taxation, human rights, and labour. Fines 
imposed by authorities for non-compliance are severe and, in some cases, 
legislation can result in criminal sanction for entities and individuals found 
guilty. 
 
We operate a comprehensive training and compliance programme, supported by 
self-certification and reporting, with personal sanction for failure to comply 
with Group policies. Our legal and governance compliance is supported by a 
centralised legal compliance team and is subject to regular internal audit 
review. We operate a confidential reporting hotline, Speakout, enabling 
employees, customers, suppliers, managers and other stakeholders to raise 
concerns about conduct that may be contrary to our values. We increasingly work 
with our suppliers to promote responsible business conduct in the value chain. 
 
Information technology risk 
 
Many of our operations are dependent on the availability of IT services and an 
extended interruption of such services may result in plant shutdown and an 
inability to meet customer requirements. Cyber crime continues to increase and 
attempts are increasingly sophisticated, with the consequences of successful 
attacks including compromised data, financial fraud, and system shutdowns. 
 
We have a comprehensive IT Security Policy approved by our Boards. We conduct 
regular threat assessments and utilise external providers to evaluate and 
review our security policies and procedures. Where possible, we have 
redundancies in place, our system landscape is based on well-proven products, 
and we have cyber crime insurance. We operate an extensive training and 
awareness programme for all our users. 
 
Going concern 
 
The directors have reviewed the Group's budget, considered the assumptions 
contained in the budget, and reviewed the critical risks which may impact the 
Group's performance in the near term. These include an evaluation of the 
current macroeconomic environment and reasonably possible changes in the 
Group's trading performance. 
 
The Group's financial position, cash flows, liquidity position, and borrowing 
facilities are described in the annual financial statements. At 31 December 
2016, Mondi had EUR812 million of undrawn, committed debt facilities. The Group's 
debt facilities have maturity dates of between 1 and 9 years, with a weighted 
average maturity of 3.9 years. 
 
Based on their evaluation, the Boards are satisfied that the Group remains 
solvent and has adequate liquidity to meet its obligations and continue in 
operational existence for the foreseeable future. 
 
Accordingly, the Group continues to adopt the going concern basis in preparing 
the financial statements. 
 
Contact details 
 
Mondi Group 
 
David Hathorn                            +27 11 994 5418 
 
Andrew King                              +27 11 994 5415 
 
Lora Rossler                             +27 83 627 0292 
 
FTI Consulting 
 
Richard Mountain                         +44 20 3727 1340 / +44 7909 684 466 
 
Roger Newby                              +44 20 3727 1340 
 
Max Gebhardt                             +27 11 214 2402 
 
Conference call dial-in and webcast details 
 
Please see below details of our dial-in conference call and webcast that will 
be held at 08.30 (UK) and 10.30 (SA). 
 
The conference call dial-in numbers are: 
 
South Africa                          0800 200 648 (toll-free) 
 
UK                                          0808 162 4061 (toll-free) 
 
Europe/ other                        00800 246 78 700 (toll-free) 
 
The webcast will be available via www.mondigroup.com/FYResults16. 
 
The presentation will be available to download from the above website an hour 
before the webcast commences.  Questions can be submitted via the dial-in 
conference call or via the webcast. 
 
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 webcast, please e-mail 
mondi@kraftwerk.co.at and you will be contacted immediately. 
 
A video recording of the presentation will be available on Mondi's website 
during the afternoon of 23 February 2017. 
 
Directors' responsibility statement 
 
These financial statements have been prepared under the supervision of the 
Group chief financial officer, Andrew King CA (SA), and have been audited in 
compliance with the applicable requirements of the Companies Act of South 
Africa 2008 and the UK Companies Act 2006. 
 
The responsibility statement has been prepared in connection with the Group's 
Integrated report and financial statements 2016, extracts of which are included 
within this announcement. 
 
The directors confirm that to the best of their knowledge: 
 
  * the condensed combined and consolidated financial statements have been 
    prepared in accordance with the recognition and measurement principles of 
    International Financial Reporting Standards (IFRS) and are derived from the 
    audited combined and consolidated financial statements of the Group, 
    prepared in accordance with IFRS. (They do not contain sufficient 
    information to comply with IFRS.) 
 
  * the Group's combined and consolidated financial statements, prepared in 
    accordance with IFRS, give a true and fair view of the assets, liabilities, 
    financial position and profit of the Group; 
 
  * the Strategic report includes a fair review of the development and 
    performance of the business and the position of the Group, together with a 
    description of the principal risks and uncertainties they face; 
 
  * the Integrated report and financial statements 2016, taken as a whole, are 
    fair, balanced and understandable and provide the information necessary for 
    shareholders to assess the company's performance, business model and 
    strategy; 
 
  * there have been no significant individual related party transactions during 
    the year; and 
 
  * there have been no significant changes in the Group's related party 
    relationships from that reported in the half-yearly results for the six 
    months ended 30 June 2016. 
 
The Group's condensed combined and consolidated financial statements, and 
related notes, including this responsibility statement, were approved by the 
Boards and authorised for issue on 22 February 2017 and were signed on their 
behalf by: 
 
David Hathorn 
                                                                     Andrew 
King 
 
Director 
Director 
 
Audited financial information 
 
The condensed combined and consolidated financial statements and notes 1 to 19 
for the year ended 31 December 2016 have been audited by the Group's auditors, 
Deloitte LLP and Deloitte & Touche. Their unmodified audit reports are 
available for inspection at the Group's registered offices. 
 
Condensed combined and consolidated income statement 
for the year ended 31 December 2016 
 
                                                       2016                        2015 
 
EUR million                             Notes Underlying  Special   Total Underlying  Special   Total 
                                                        items                       items 
                                                       (Note 4)                    (Note 4) 
 
Group revenue                             3      6,662        -   6,662      6,819        -   6,819 
 
Materials, energy and consumables              (3,249)        - (3,249)    (3,413)        - (3,413) 
used 
 
Variable selling expenses                        (499)        -   (499)      (512)        -   (512) 
 
Gross margin                                     2,914        -   2,914      2,894        -   2,894 
 
Maintenance and other indirect                   (301)        -   (301)      (308)        -   (308) 
expenses 
 
Personnel costs                                  (996)     (13) (1,009)    (1,003)     (28) (1,031) 
 
Other net operating expenses                     (251)      (5)   (256)      (258)     (25)   (283) 
 
Depreciation, amortisation and                   (385)     (20)   (405)      (368)      (4)   (372) 
impairments 
 
Operating profit                                   981     (38)     943        957     (57)     900 
 

Net profit from equity accounted                     1        -       1          1        -       1 
investees 
 
Profit before net finance costs                    982     (38)     944        958     (57)     901 
 
Net finance costs                         6      (101)        -   (101)      (105)        -   (105) 
 
Profit before tax                                  881     (38)     843        853     (57)     796 
 
Tax charge                                7      (166)        9   (157)      (161)       10   (151) 
 
Profit for the year                                715     (29)     686        692     (47)     645 
 
Attributable to: 
 
Non-controlling interests                           48               48         45               45 
 
Shareholders                                       667              638        647              600 
 
Earnings per share (EPS) attributable 
to shareholders 
 
(euro cents) 
 
Basic EPS                                 8                       131.8                       124.0 
 
Diluted EPS                               8                       131.7                       123.7 
 
Basic underlying EPS                      8                       137.8                       133.7 
 
Diluted underlying EPS                    8                       137.7                       133.4 
 
Basic headline EPS                        8                       135.9                       123.4 
 
Diluted headline EPS                      8                       135.8                       123.1 
 
Condensed combined and consolidated statement of comprehensive income 
for the year ended 31 December 2016 
 
                                                   2016                    2015 
 
EUR million                                  Before     Tax  Net of  Before     Tax  Net of 
                                              tax benefit     tax     tax expense     tax 
                                           amount          amount  amount          amount 
 
Profit for the year                                           686                     645 
 
Items that may subsequently be 
reclassified to the combined and 
consolidated income statement 
 
Cash flow hedges                                -       -       -     (1)       -     (1) 
 
Gains on available-for-sale investments         1       -       1       -       -       - 
 
Exchange differences on translation of        150       -     150   (122)       -   (122) 
foreign operations 
 
Items that will not subsequently be 
reclassified to the combined and 
consolidated income statement 
 
Remeasurements of retirement benefits        (19)       4    (15)      27     (3)      24 
plans 
 
Other comprehensive income/(expense) for      132       4     136    (96)     (3)    (99) 
the year 
 
Other comprehensive income/(expense) 
attributable to: 
 
Non-controlling interests                     (4)       -     (4)     (4)       -     (4) 
 
Shareholders                                  136       4     140    (92)     (3)    (95) 
 
Total comprehensive income attributable 
to: 
 
Non-controlling interests                                      44                      41 
 
Shareholders                                                  778                     505 
 
Total comprehensive income for the year                       822                     546 
 
 Condensed combined and consolidated statement of financial position 
as at 31 December 2016 
 
EUR million                                                     Notes       2016       2015 
 
Property, plant and equipment                                            3,788      3,554 
 
Goodwill                                                                   681        590 
 
Intangible assets                                                          120        105 
 
Forestry assets                                                  10        316        219 
 
Other non-current assets                                                    61         58 
 
Total non-current assets                                                 4,966      4,526 
 
Inventories                                                                850        838 
 
Trade and other receivables                                              1,049        994 
 
Cash and cash equivalents                                       14b        404         64 
 
Other current assets                                                        41         47 
 
Total current assets                                                     2,344      1,943 
 
Total assets                                                             7,310      6,469 
 
Short-term borrowings                                            11      (651)      (250) 
 
Trade and other payables                                               (1,100)    (1,038) 
 
Other current liabilities                                                (167)      (165) 
 
Total current liabilities                                              (1,918)    (1,453) 
 
Medium and long-term borrowings                                  11    (1,119)    (1,319) 
 
Net retirement benefits liability                                12      (240)      (212) 
 
Deferred tax liabilities                                                 (267)      (241) 
 
Other non-current liabilities                                             (70)       (57) 
 
Total non-current liabilities                                          (1,696)    (1,829) 
 
Total liabilities                                                      (3,614)    (3,282) 
 
Net assets                                                               3,696      3,187 
 
Equity 
 
Share capital and stated capital                                           542        542 
 
Retained earnings and other reserves                                     2,850      2,363 
 
Total attributable to shareholders                                       3,392      2,905 
 
Non-controlling interests in equity                                        304        282 
 
Total equity                                                             3,696      3,187 
 
The Group's condensed combined and consolidated financial statements, and 
related notes 1 to 19, were approved by the Boards and authorised for issue on 
22 February 2017 and were signed on their 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 changes in equity 
for the year ended 31 December 2016 
 
EUR million                                                    Equity   Non-controlling      Total 
                                                         attributable       interests     equity 
                                                                   to 
                                                         shareholders 
 
At 1 January 2015                                               2,628             266      2,894 
 
Total comprehensive income for the year                           505              41        546 
 
Dividends paid                                                  (209)            (25)      (234) 
 
Purchases of treasury shares                                     (31)               -       (31) 
 
Other                                                              12               -         12 
 
At 31 December 2015                                             2,905             282      3,187 
 
Total comprehensive income for the year                           778              44        822 
 
Dividends paid                                                  (274)            (32)      (306) 
 
Purchases of treasury shares                                     (20)               -       (20) 
 
Other                                                               3              10         13 
 
At 31 December 2016                                             3,392             304      3,696 
 
Equity attributable to shareholders 
 
EUR million                                                                2016       2015 
 
Combined share capital and stated capital                                 542        542 
 
Treasury shares                                                          (24)       (29) 
 
Retained earnings                                                       3,217      2,868 
 
Cumulative translation adjustment reserve                               (536)      (685) 
 
Post-retirement benefits reserve                                         (75)       (65) 
 
Share-based payment reserve                                                22         20 
 
Cash flow hedge reserve                                                   (2)        (2) 
 
Merger reserve                                                            259        259 
 
Put option liability reserve                                              (9)          - 
 
Other sundry reserves                                                     (2)        (3) 
 
Total                                                                   3,392      2,905 
 
Condensed combined and consolidated statement of cash flows 
for the year ended 31 December 2016 
 
EUR million                                                     Notes       2016       2015 
 
Cash flows from operating activities 
 
Cash generated from operations                                  14a      1,401      1,279 
 
Dividends received from equity accounted investees                           1          - 
 
Income tax paid                                                          (173)      (160) 
 
Net cash generated from operating activities                             1,229      1,119 
 
Cash flows from investing activities 
 
Investment in property, plant and equipment                              (465)      (595) 
 
Investment in intangible assets                                           (13)        (9) 
 

Investment in forestry assets                                             (45)       (41) 
 
Acquisition of subsidiaries, net of cash and cash equivalents    13      (162)       (72) 
 
Proceeds from the disposal of businesses, net of cash and                    -         38 
cash equivalents 
 
Other investing activities                                                  20         46 
 
Net cash used in investing activities                                    (665)      (633) 
 
Cash flows from financing activities 
 
Proceeds from medium and long-term borrowings                              501          2 
 
Repayment of medium and long-term borrowings                             (166)      (221) 
 
(Repayment of)/proceeds from short-term borrowings              14c      (152)         52 
 
Interest paid                                                             (82)       (93) 
 
Dividends paid to shareholders                                    9      (274)      (209) 
 
Dividends paid to non-controlling interests                               (33)       (26) 
 
Purchases of treasury shares                                              (20)       (31) 
 
Other financing activities                                                   7         72 
 
Net cash used in financing activities                                    (219)      (454) 
 
Net increase in cash and cash equivalents                                  345         32 
 
Cash and cash equivalents at beginning of year                              36          9 
 
Cash movement in the year                                       14c        345         32 
 
Effects of changes in foreign exchange rates                    14c        (4)        (5) 
 
Cash and cash equivalents at end of year                        14b        377         36 
 
Notes to the condensed combined and consolidated financial statements 
for the year ended 31 December 2016 
 
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. 
 
The Group's condensed combined and consolidated financial statements have been 
prepared in accordance with the recognition and measurement principles of 
International Financial Reporting Standards (IFRS). They have been derived from 
the audited combined and consolidated financial statements of the Group, 
prepared in accordance with IFRS; the South African Institute of Chartered 
Accountants Financial Reporting Guides as issued by the Accounting Practices 
Committee; the requirements of the Companies Act of South Africa 2008; 
Financial Pronouncements as issued by the Financial Reporting Standards 
Council; and Article 4 of the EU IAS Regulation.  They do not contain 
sufficient information to comply with IFRS. 
 
The condensed combined and consolidated financial statements have been prepared 
on a going concern basis as discussed in the commentary under the heading 
'Going concern'. 
 
The financial information set out above does not constitute the Company's 
statutory accounts for the years ended 31 December 2016 or 2015 but is derived 
from those accounts. Statutory accounts for 2015 have been delivered to the 
Registrar of Companies, and those for 2016 will be delivered in due course. The 
auditors have reported on those accounts; their reports were (i) unqualified, 
(ii) did not include a reference to any matters to which the auditors drew 
attention by way of emphasis without qualifying their report and (iii) did not 
contain a statement under section 498 (2) or (3) of the UK Companies Act 2006. 
Copies of their unqualified auditors' reports on the Integrated report and 
financial statements 2016 as well as the condensed combined and consolidated 
financial statements are available for inspection at the Mondi Limited and 
Mondi plc registered offices. 
 
These condensed combined and consolidated financial statements have been 
prepared on the historical cost basis, except for the fair valuing of financial 
instruments and forestry assets. 
 
2   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 2015, except that the 
quantitative threshold for recognition of special items incurred after 1 
January 2016 has been increased to EUR10 million (2015: EUR5 million). Subsequent 
adjustments to items previously recognised as special items continue to be 
reflected as special items in future periods even if they do not exceed the 
reporting threshold. 
 
3   Operating segments 
 
Identification of the Group's externally reportable operating segments 
 
The Group's operating segments are reported in a manner consistent with the 
internal reporting provided to the DLC executive committee, the chief operating 
decision-making body. Due to its unique characteristics in terms of geography, 
currency and underlying risks, the South Africa Division is managed and 
reported as a separate geographic segment. The remaining operating segments, 
consolidated as the Europe & International Division, are managed based on the 
nature of the underlying products produced by those businesses and comprise 
four distinct segments. 
 
Each of the reportable segments derives its income from the sale of 
manufactured products. 
 
Year ended 31 December 2016 
 
                              Europe & International 
 
EUR million, unless     Packaging     Fibre  Consumer Uncoated    South Corporate Intersegment Segments 
otherwise stated          Paper Packaging Packaging     Fine   Africa            elimination    total 
                                                       Paper Division 
 
Segment revenue           2,056     1,929     1,562    1,246      594         -        (725)    6,662 
 
Internal revenue          (585)      (32)       (4)      (4)    (100)         -          725        - 
 
External revenue          1,471     1,897     1,558    1,242      494         -            -    6,662 
 
Underlying EBITDA           483       194       198      343      182      (34)            -    1,366 
 
Depreciation and          (118)      (66)      (59)     (77)     (35)       (1)            -    (356) 
impairments 
 
Amortisation                (4)       (5)      (18)      (2)        -         -            -     (29) 
 
Underlying operating        361       123       121      264      147      (35)            -      981 
profit 
 
Special items                 -      (13)      (19)        -      (6)         -            -     (38) 
 
Operating segment         2,092     1,315     1,502    1,064      857         4        (178)    6,656 
assets 
 
Operating net segment     1,760     1,006     1,270      851      731         -            -    5,618 
assets 
 
Additions to                149       161       217       50      103         -            -      680 
non-current 
non-financial assets 
 
Capital expenditure         156       107        91       53       58         -            -      465 
cash payments 
 
Operating margin (%)       17.6       6.4       7.7     21.2     24.7         -            -     14.7 
 
Return on capital          22.4      13.5      10.5     36.0     27.8         -            -     20.3 
employed (%) 
 
Average number of           5.0       7.7       5.3      5.6      1.7       0.1            -     25.4 
employees (thousands) 
 
Year ended 31 December 2015 
 
                              Europe & International 
 
EUR million, unless     Packaging     Fibre  Consumer Uncoated    South Corporate Intersegment Segments 
otherwise stated          Paper Packaging Packaging     Fine   Africa            elimination    total 
                                                       Paper Division 
 
Segment revenue           2,156     2,031     1,469    1,233      652         -        (722)    6,819 
 
Internal revenue          (574)      (37)       (4)      (6)    (101)         -          722        - 
 
External revenue          1,582     1,994     1,465    1,227      551         -            -    6,819 
 
Underlying EBITDA           505       187       177      291      199      (34)            -    1,325 
 
Depreciation and          (111)      (63)      (54)     (77)     (38)       (1)            -    (344) 
impairments 
 
Amortisation                (3)       (4)      (15)      (2)        -         -            -     (24) 
 
Underlying operating        391       120       108      212      161      (35)            -      957 
profit 
 
Special items              (14)      (21)      (22)        -        -         -            -     (57) 
 
Operating segment         2,094     1,224     1,333    1,001      669         6        (168)    6,159 
assets 
 
Operating net segment     1,753       935     1,146      821      563         1            -    5,219 
assets 
 
Additions to                281       118       173       56      104         1            -      733 
non-current 
non-financial assets 
 
Capital expenditure         259       118        92       65       61         -            -      595 
cash payments 
 
Operating margin (%)       18.1       5.9       7.4     17.2     24.7         -            -     14.0 
 
Return on capital          25.5      13.9      10.7     25.6     30.1         -            -     20.5 
employed (%) 
 
Average number of           5.3       7.7       4.6      6.0      1.6       0.1            -     25.3 
employees (thousands) 
 
Reconciliation of underlying EBITDA and underlying operating profit to profit 
before tax 
 

EUR million                                                                2016       2015 
 
Underlying EBITDA                                                       1,366      1,325 
 
Depreciation and impairments                                            (356)      (344) 
 
Amortisation                                                             (29)       (24) 
 
Underlying operating profit                                               981        957 
 
Special items (see note 4)                                               (38)       (57) 
 
Net profit from equity accounted investees                                  1          1 
 
Net finance costs                                                       (101)      (105) 
 
Profit before tax                                                         843        796 
 
Reconciliation of operating segment assets 
 
                                                           2016                     2015 
 
EUR million                                             Segment  Net segment    Segment Net segment 
                                                       assets       assets     assets      assets 
 
Segments total                                          6,656        5,618      6,159       5,219 
 
Unallocated 
 
Investment in equity accounted investees                    9            9          9           9 
 
Deferred tax assets/(liabilities)                          26        (241)         23       (218) 
 
Other non-operating assets/(liabilities)                  209        (307)        201       (325) 
 
Group capital employed                                  6,900        5,079      6,392       4,685 
 
Financial instruments/(net debt)                          410      (1,383)         77     (1,498) 
 
Total assets/equity                                     7,310        3,696      6,469       3,187 
 
 
 
                                                External revenue by   External revenue by 
                                                    location of      location of customer 
                                                    production 
 
EUR million                                            2016       2015       2016       2015 
 
Revenue 
 
Africa 
 
South Africa                                          594        652        407        465 
 
Rest of Africa                                         13         13        200        205 
 
Africa total                                          607        665        607        670 
 
Western Europe 
 
Austria                                             1,018        981        143        144 
 
Germany                                               897        964        929        960 
 
United Kingdom                                         33         39        224        252 
 
Rest of western Europe                                529        607      1,278      1,360 
 
Western Europe total                                2,477      2,591      2,574      2,716 
 
Emerging Europe 
 
Poland                                                900        909        546        515 
 
Rest of emerging Europe                             1,246      1,225        883        877 
 
Emerging Europe total                               2,146      2,134      1,429      1,392 
 
Russia                                                760        674        602        535 
 
North America                                         588        664        729        771 
 
South America                                           -          -         70         72 
 
Asia and Australia                                     84         91        651        663 
 
Group total                                         6,662      6,819      6,662      6,819 
 
4   Special items 
 
EUR million                                                                2016       2015 
 
Operating special items 
 
Impairment of assets                                                     (22)        (4) 
 
Reversal of impairment of assets                                            2          - 
 
Restructuring and closure costs: 
 
Personnel costs                                                          (13)       (28) 
 
Other restructuring and closure costs                                     (5)       (17) 
 
Adjustments relating to 2012 Nordenia acquisition                           -        (8) 
 
Total special items before tax and non-controlling interests             (38)       (57) 
 
Tax credit (see note 7)                                                     9         10 
 
Total special items attributable to shareholders                         (29)       (47) 
 
Operating special items 
 
Restructuring and closure costs and related impairments during the year 
comprise: 
 
  * Fibre Packaging 
 
      + Closure of an industrial bags plant in southern Belgium. Restructuring 
        costs of EUR10 million and impairment of assets of EUR3 million were 
        recognised. 
 
  * Consumer Packaging 
 
      + Restructuring of release liner operations in USA, including closure of 
        one site. Restructuring costs of EUR7 million and impairment of assets of 
        EUR12 million were recognised. 
 
  * South Africa Division 
 
      + Further impairment of newsprint assets of EUR7 million. 
 
      + Partial reversal of impairment of uncoated fine paper machine 
        previously impaired of EUR2 million. 
 
      + Restructuring costs of EUR1 million. 
 
5   Write-down of inventories to net realisable value 
 
EUR million                                                                2016       2015 
 
Write-down of inventories to net realisable value                        (29)       (24) 
 
Aggregate reversal of previous write-down of inventories                   18         19 
 
6   Net finance costs 
 
Net finance costs are presented below: 
 
EUR million                                                                2016       2015 
 
Investment income 
 
Investment income                                                           5          4 
 
Foreign currency losses 
 
Foreign currency losses                                                   (4)          - 
 
Finance costs 
 
Interest expense 
 
Interest on bank overdrafts and loans                                    (97)      (107) 
 
Net interest expense on net retirement benefits liability                (10)        (9) 
 
Total interest expense                                                  (107)      (116) 
 
Less: Interest capitalised                                                  5          7 
 
Total finance costs                                                     (102)      (109) 
 
Net finance costs                                                       (101)      (105) 
 
The weighted average interest rate applicable to capitalised interest on 
general borrowings for the year ended 31 December 2016 is 7.15% (2015: 7.08%) 
and was related to investments in Poland, Russia, the Czech Republic and South 
Africa. 
 
7   Tax charge 
 
The Group's effective rate of tax before special items for the year ended 
31 December 2016, calculated on profit before tax before special items and 
including net profit from equity accounted investees, was 19% (2015: 19%). 
 
EUR million                                                                2016       2015 
 
UK corporation tax at 20% (2015: 20.25%)                                    1          1 
 
SA corporation tax at 28% (2015: 28%)                                      22         35 
 
Overseas tax                                                              134        136 
 
Current tax in respect of prior years                                       5          1 
 
Current tax                                                               162        173 
 
Deferred tax in respect of the current year                                28         24 
 
Deferred tax in respect of prior years                                   (22)       (36) 
 
Deferred tax attributable to a change in the                              (2)          - 
rate of domestic income tax 
 
Total tax charge before special items                                     166        161 
 
Current tax on special items                                              (1)        (2) 
 
Deferred tax on special items                                             (8)        (8) 
 
Total tax credit on special items (see note 4)                            (9)       (10) 
 
Total tax charge                                                          157        151 
 
8   Earnings per share 
 
The calculation of basic and diluted EPS, basic and diluted underlying EPS and 
basic and diluted headline EPS is based on the following data: 
 
                                                                         Earnings 
 
EUR million                                                                2016       2015 
 
Profit for the year attributable to shareholders                          638        600 
 
Special items (see note 4)                                                 38         57 
 
Related tax (see note 4)                                                  (9)       (10) 
 
Underlying earnings for the year                                          667        647 
 
Special items not excluded from headline earnings                        (18)       (53) 
 
Profit on disposal of property, plant and equipment                         -       (13) 
 
Impairments not included in special items                                   5          3 
 
Related tax                                                                 4         13 
 
Headline earnings for the year                                            658        597 
 
 
 
                                                                     Weighted average 
                                                                     number of shares 
 
million                                                                  2016       2015 
 
Basic number of ordinary shares outstanding                             484.2      483.9 
 

Effect of dilutive potential ordinary shares                              0.3        1.1 
 
Diluted number of ordinary shares outstanding                           484.5      485.0 
 
9   Dividends 
 
An interim dividend for the year ended 31 December 2016 of 288.84260 rand cents 
/18.81 euro cents per share was paid on 13 September 2016 to all Mondi Limited 
and Mondi plc ordinary shareholders on the relevant registers on 
19 August 2016. 
 
A proposed final dividend for the year ended 31 December 2016 of 38.19 euro 
cents per ordinary share will be paid on 18 May 2017 to those shareholders on 
the register of Mondi plc on 21 April 2017. An equivalent South African rand 
final dividend will be paid on 18 May 2017 to shareholders on the register of 
Mondi Limited on 21 April 2017. The final dividend is subject to the approval 
of the shareholders of Mondi Limited and Mondi plc at the respective annual 
general meetings scheduled for 11 May 2017. 
 
Dividends paid to the shareholders of Mondi Limited and Mondi plc are presented 
on a combined basis. 
 
euro cents per share                                                     2016       2015 
 
Final dividend paid (in respect of prior year)                          37.62      28.77 
 
Interim dividend paid                                                   18.81      14.38 
 
Final dividend proposed for the year ended 31 December                  38.19      37.62 
 
 
 
EUR million                                                                2016       2015 
 
Final dividend paid (in respect of prior year)                            183        140 
 
Interim dividend paid                                                      91         69 
 
Total dividends paid                                                      274        209 
 
Final dividend proposed for the year ended 31 December                    185        182 
 
Declared by Group companies to non-controlling interests                   32         25 
 
Dividend timetable 
 
The proposed final dividend for the year ended 31 December 2016 of 38.19 euro 
cents per share will be paid in accordance with the following timetable: 
 
                                                           Mondi Limited  Mondi plc 
 
Last date to trade shares cum-dividend 
 
JSE Limited                                                18 April 2017  18 April 2017 
 
London Stock Exchange                                      Not applicable 19 April 2017 
 
Shares commence trading ex-dividend 
 
JSE Limited                                                19 April 2017  19 April 2017 
 
London Stock Exchange                                      Not applicable 20 April 2017 
 
Record date 
 
JSE Limited                                                21 April 2017  21 April 2017 
 
London Stock Exchange                                      Not applicable 21 April 2017 
 
Last date for receipt of Dividend Reinvestment Plan (DRIP) 26 April 2017  26 April 2017 
elections by Central Securities Depository Participants 
 
Last date for DRIP elections to UK Registrar and South     28 April 2017  23 April 2017* 
African Transfer Secretaries by shareholders of Mondi 
Limited and Mondi plc 
 
Payment Date 
 
South African Register                                     18 May 2017    18 May 2017 
 
UK Register                                                Not applicable 18 May 2017 
 
DRIP purchase settlement dates (subject to the purchase of 24 May 2017    22 May 2017** 
shares in the open market) 
 
Currency conversion date 
 
ZAR/euro                                                   23 February    23 February 
                                                           2017           2017 
 
Euro/sterling                                              Not applicable 2 May 2017 
 
*28 April 2017 for Mondi plc South African branch register shareholders 
 
**24 May 2017 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 April 2017 and 23 
April 2017, both dates inclusive, nor may transfers between the UK and South 
African registers of Mondi plc take place between 12 April 2017 and 23 April 
2017, 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 23 February 2017. 
 
10   Forestry assets 
 
EUR million                                                                2016       2015 
 
At 1 January                                                              219        235 
 
Capitalised expenditure                                                    39         38 
 
Acquisition of assets                                                       6          3 
 
Fair value gains                                                           64         40 
 
Disposal of assets                                                        (1)        (1) 
 
Felling costs                                                            (57)       (51) 
 
Currency movements                                                         46       (45) 
 
At 31 December                                                            316        219 
 
Comprising 
 
Mature                                                                    193        139 
 
Immature                                                                  123         80 
 
Total forestry assets                                                     316        219 
 
The fair value of forestry assets is a level 3 measure in terms of the fair 
value measurement hierarchy (see note 17), consistent with prior years. The 
fair value of forestry assets is calculated on the basis of future expected net 
cash flows arising on the Group's owned forestry assets, discounted based on a 
pre tax yield on long-term bonds. 
 
11   Borrowings 
 
Financing facilities 
 
Group liquidity is provided through a range of committed debt facilities. The 
principal loan arrangements in place include the following: 
 
EUR million                               Maturity     Interest rate %      2016      2015 
 
Financing facilities 
 
Syndicated Revolving Credit            July 2021     EURIBOR/LIBOR +       750       750 
Facility                                                      margin 
 
EUR500 million Eurobond                 April 2017               5.75%       500       500 
 
EUR500 million Eurobond             September 2020              3.375%       500       500 
 
EUR500 million Eurobond                 April 2024               1.50%       500         - 
 
European Investment Bank Facility      June 2025    EURIBOR + margin        81        90 
 
Export Credit Agency Facility          June 2020    EURIBOR + margin        53        72 
 
Other                                    Various             Various       113        90 
 
Total committed facilities                                               2,497     2,002 
 
Drawn                                                                  (1,685)   (1,404) 
 
Total committed facilities                                                 812       598 
available 
 
On 14 April 2016 Mondi issued a 1.5% EUR500 million Eurobond with an eight-year 
term under its Euro Medium Term Note Programme. 
 
The EUR500 million Eurobonds maturing in 2017 and 2020 contain a coupon step-up 
clause whereby the coupon will be increased by 1.25% per annum if Mondi fails 
to maintain at least one investment grade credit rating from either Moody's 
Investors Service or Standard & Poor's. Mondi currently has investment grade 
credit ratings from both Moody's Investors Service (Baa2, stable outlook) and 
Standard & Poor's (BBB, stable outlook). 
 
                                         2016                              2015 
 
EUR million                     Current Non-current      Total    Current Non-current      Total 
 
Secured                             1           2          3          3           3          6 
 
Unsecured 
 
Bonds                             500         995      1,495          -         996        996 
 
Bank loans and overdrafts         150         110        260        247         306        553 
 
Other loans                         -          12         12          -          14         14 
 
Total unsecured                   650       1,117      1,767        247       1,316      1,563 
 
Total borrowings                  651       1,119      1,770        250       1,319      1,569 
 
The Group's borrowings as at 31 December are analysed by nature and underlying 
currency as follows: 
 
2016/EUR million                         Floating Fixed rate Non-interest      Total Fair value 
                                           rate borrowings      bearing   carrying 
                                     borrowings              borrowings      value 
 
Euro                                        129      1,498            -      1,627      1,701 
 
South African rand                           60          -            -         60         60 
 
US dollar                                     6          9            -         15         14 
 
Russian rouble                                9          -            -          9          9 
 
Turkish lira                                 47          -            -         47         47 
 
Other currencies                             10          2            -         12         13 
 
Carrying value                              261      1,509            -      1,770 
 
Fair value                                  261      1,583            -                 1,844 
 
 
 
2015/EUR million                         Floating Fixed rate Non-interest      Total Fair value 
                                           rate borrowings      bearing   carrying 
                                     borrowings              borrowings      value 
 

Euro                                        278      1,002            -      1,280      1,363 
 
Pounds sterling                             159          -            -        159        159 
 
South African rand                           36          -            6         42         42 
 
Polish zloty                                 32          2            -         34         34 
 
Turkish lira                                 33          -            -         33         33 
 
Other currencies                             11         10            -         21         22 
 
Carrying value                              549      1,014            6      1,569 
 
Fair value                                  549      1,098            6                 1,653 
 
The fair values of the EUR500 million Eurobonds are estimated with reference to 
the last price quoted in the secondary market. All other financial liabilities 
are estimated by discounting the future contractual cash flows at the current 
market interest rate that is available to the Group for similar financial 
instruments. 
 
The Group swaps euro and sterling debt into other currencies through the 
foreign exchange market using foreign exchange contracts which has the effect 
of exposing the Group to interest rates of these currencies. The currencies 
swapped into/(out of) and the amounts as at 31 December were as follows: 
 
EUR million                                                                2016       2015 
 
Short-dated contracts with tenures of less than 12 months 
 
Pounds sterling                                                            12      (148) 
 
Czech koruna                                                              188        200 
 
Polish zloty                                                              317        250 
 
Russian rouble                                                             27         86 
 
Swedish krona                                                              39         42 
 
US dollar                                                                 119        104 
 
Other                                                                      96         57 
 
Total swapped                                                             798        591 
 
12   Retirement benefits 
 
All assumptions related to the Group's defined benefit schemes and 
post-retirement medical plan liabilities were re-assessed individually for the 
year ended 31 December 2016. The net retirement benefit liability increased by 
EUR30 million mainly due to changes in assumptions. The assets backing the 
defined benefit scheme liabilities reflect their market values as at 
31 December 2016. Net remeasurement losses arising from changes in assumptions 
amounting to EUR10 million have been recognised in the condensed combined and 
consolidated statement of comprehensive income. 
 
13   Business combinations 
 
To 31 December 2016 
 
Acquisition of SIMET S.A. (Poland) 
 
Mondi acquired 100% of the outstanding share capital of SIMET S.A. (SIMET) on 
27 April 2016 for a consideration of EUR13 million on a debt and cash-free basis. 
SIMET is a corrugated plant that produces a wide range of flexo printed 
packaging. Mondi intends to expand and upgrade this operation to a 
high-efficiency, heavy-duty box plant, including the addition of a corrugator 
line for on-site board production. The acquisition strengthens Mondi's 
Corrugated Packaging market position in central and emerging Europe. 
 
SIMET's revenue for the year ended 31 December 2016 was EUR17 million with a 
profit after tax of EURnil. SIMET's revenue of EUR11 million and profit after tax 
of EURnil since the date of acquisition have been included in the condensed 
combined and consolidated income statement. 
 
Acquisition of Kale Nobel Ambalaj Sanayi ve Ticaret Anonim Sirketi (Turkey) 
 
On 12 July, Mondi acquired a 90% interest in Kale Nobel Ambalaj Sanayi ve 
Ticaret Anonim Sirketi (Kalenobel) for a consideration of EUR90 million on a debt 
and cash-free basis. Kalenobel is a consumer packaging company focused on the 
manufacture of flexible consumer packaging for ice cream and other applications 
as well as aseptic cartons. The acquisition supports Mondi's growing Consumer 
Packaging business. The non-controlling interest holder has an option to put 
its shares to Mondi until June 2021, but not before March 2018, at a price 
determined based on future earnings, but capped at TRY100 million (EUR 
27 million). 
 
Kalenobel's revenue for the year ended 31 December 2016 was EUR72 million with a 
profit after tax of EUR5 million. Kalenobel's revenue of EUR27 million and loss 
after tax of EUR2 million since the date of acquisition have been included in the 
condensed combined and consolidated income statement. 
 
Acquisition of ZAO Uralplastic-N (Russia) 
 
On 15 July, Mondi acquired a 100% interest in ZAO Uralplastic-N (Uralplastic) 
for a consideration of RUB2,949 million (EUR41 million) on a debt and cash-free 
basis. Uralplastic manufactures a range of consumer flexible packaging products 
for food, hygiene, homecare and other applications and the acquisition supports 
Mondi's growing Consumer Packaging business. 
 
Uralplastic's revenue for the year ended 31 December 2016 was EUR34 million with 
a loss after tax of EUR2 million. Uralplastic's revenue of EUR19 million and loss 
after tax of EUR2 million since the date of acquisition have been included in the 
condensed combined and consolidated income statement. 
 
Acquisition of LLC Beepack (renamed LLC Mondi Lebedyan) (Russia) 
 
On 20 October, Mondi acquired 100% of the outstanding share capital of LLC 
Beepack (Lebedyan) for a consideration of RUB2,825 million (EUR41 million) on a 
debt and cash-free basis. 
 
Lebedyan produces a range of corrugated packaging trays and boxes for food and 
agricultural products including beverages, fruit and vegetables, poultry and 
dairy. Customers include local Russian and international producers. The 
acquisition of Lebedyan supports the ongoing development of Mondi's Corrugated 
Packaging business in central and eastern Europe. 
 
Lebedyan's revenue for the year ended 31 December 2016 was EUR38 million with a 
profit after tax of EUR3 million. Lebedyan's revenue of EUR8 million and profit 
after tax of EUR1 million since the date of acquisition have been included in the 
condensed combined and consolidated income statement. 
 
Details of the net assets acquired, as adjusted from book to fair value, are as 
follows: 
 
EUR million                                                Book value Revaluation Fair value 
 
Net assets acquired 
 
Property, plant and equipment                                    39          16         55 
 
Intangible assets                                                 5          22         27 
 
Inventories                                                      16           1         17 
 
Trade and other receivables                                      44         (3)         41 
 
Cash and cash equivalents                                         2           -          2 
 
Total assets                                                    106          36        142 
 
Trade and other payables                                       (23)         (2)       (25) 
 
Provisions                                                        -         (1)        (1) 
 
Net retirement benefits liability                                 -         (2)        (2) 
 
Deferred tax liabilities                                          -         (7)        (7) 
 
Total liabilities (excluding debt)                             (23)        (12)       (35) 
 
Short-term borrowings                                          (17)           -       (17) 
 
Medium and long-term borrowings                                (19)           -       (19) 
 
Debt assumed                                                   (36)           -       (36) 
 
Net assets acquired                                              47          24         71 
 
Goodwill arising on acquisitions                                                        81 
 
Goodwill arising from purchase price adjustment (KSP)                                   13 
 
Deferred acquisition consideration (Ascania)                                             2 
 
Non-controlling interests in equity                                                    (3) 
 
Cash acquired net of overdrafts                                                        (2) 
 
Net cash paid per combined and consolidated statement of                               162 
cash flows 
 
 
 
EUR million                                                  Goodwill Net assets   Net cash 
                                                                                     paid 
 
SIMET                                                             4          6         10 
 
Kalenobel                                                        42         31         68 
 
Uralplastic                                                      22          6         28 
 
Lebedyan                                                         13         28         41 
 
Acquisitions total                                               81         71        147 
 
Purchase price adjustment (KSP)                                  13          -         13 
 
Deferred acquisition consideration (Ascania)                                            2 
 
Acquisitions total including adjustments                         94         71        162 
 
Transaction costs of EUR5 million were charged to the condensed combined and 
consolidated income statement. 
 
The fair value accounting of these acquisitions is provisional in nature. The 
nature of these businesses is such that further adjustments to the carrying 
values of acquired assets and/or liabilities, and adjustments to the purchase 
price, are possible as the detail of the acquired businesses is evaluated post 
acquisition. If necessary, any adjustments to the fair values recognised will 
be made within 12 months of the acquisition dates. 
 

In respect of trade and other receivables, the gross contractual amounts 
receivable less the best estimates at the acquisition dates of the contractual 
cash flows not expected to be collected approximate the book values and the 
revaluation amounts respectively as presented. 
 
Purchase price adjustment of KSP 
 
In accordance with the KSP purchase agreement, a payment of EUR13 million has 
been recognised in the current year, and reflected as an adjustment to Goodwill 
recognised. 
 
To 31 December 2015 
 
Mondi acquired 100% of the outstanding share capital of Ascania nonwoven 
Germany GmbH (Ascania) (Germany) on 2 November 2015 for a consideration of EUR53 
million on a debt and cash-free basis. Ascania is a producer of nonwoven 
fabrics and nonwoven composites primarily used for personal care, hygiene and 
medical products as well as household applications. 
 
On 14 December 2015, Mondi acquired a 95% interest in KSP, Co. (KSP) (South 
Korea and Thailand), for a consideration of EUR54 million on a debt and cash-free 
basis. The preliminary purchase price of EUR41 million reported in 2015 was based 
on provisional results. On finalisation of the 2015 financial results the 
purchase price was confirmed at EUR54 million. KSP is a flexible packaging 
company specialising in the production of high-quality spouted and retort 
stand-up pouches for the food, pet food and beverage industries. 
 
The provisional fair values at acquisition of KSP have been adjusted. Property, 
plant and equipment reduced by EUR1 million, trade and other receivables by EUR2 
million. Trade and other payables increased by EUR1 million and borrowings 
reduced by EUR4 million. The net effect of the adjustments is EURnil and has been 
recorded during the year ended 31 December 2016. 
 
Details of the net assets acquired are as follows: 
 
                                                         Book value Revaluation Fair value 
 
EUR million                                                            (restated) (restated) 
 
Net assets acquired 
 
Property, plant and equipment                                    14          25         39 
 
Intangible assets                                                 -           6          6 
 
Share of joint venture                                            1           3          4 
 
Inventories                                                       4           -          4 
 
Trade and other receivables                                      17         (2)         15 
 
Cash and cash equivalents                                        12           -         12 
 
Total assets                                                     48          32         80 
 
Trade and other payables                                        (8)         (1)        (9) 
 
Income tax liabilities                                          (2)           -        (2) 
 
Net retirement benefits liability                               (2)           -        (2) 
 
Deferred tax liabilities                                          -         (9)        (9) 
 
Total liabilities (excluding debt)                             (12)        (10)       (22) 
 
Short-term borrowings                                          (13)           2       (11) 
 
Medium and long-term borrowings                                 (8)           2        (6) 
 
Debt assumed                                                   (21)           4       (17) 
 
Net assets acquired                                              15          26         41 
 
Goodwill arising on acquisitions                                                        57 
 
Non-controlling interests in equity                                                    (1) 
 
Cash acquired net of overdrafts                                                       (12) 
 
Net cash paid per combined and consolidated statement of                                85 
cash flows 
 
Paid in 2015                                                                            72 
 
Paid in 2016                                                                            13 
 
                                                                                        85 
 
 
 
EUR million                                                  Goodwill Net assets   Net cash 
                                                                                     paid 
 
Ascania                                                          25         26         47 
 
KSP                                                              32         15         38 
 
Acquisitions total                                               57         41         85 
 
No adjustments were made to the fair values of other prior year acquisitions. 
 
14   Consolidated cash flow analysis 
 
(a)   Reconciliation of profit before tax to cash generated from operations 
 
EUR million                                                                2016       2015 
 
Profit before tax                                                         843        796 
 
Depreciation and amortisation                                             380        365 
 
Impairment of property, plant and equipment and intangible assets           5          3 
(not included in special items) 
 
Share-based payments                                                       13         11 
 
Net cash flow effect of current and prior year special items               17         15 
 
Net finance costs                                                         101        105 
 
Net profit from equity accounted investees                                (1)        (1) 
 
Decrease in provisions and net retirement benefits                       (14)       (15) 
 
Decrease/(increase) in inventories                                         24       (11) 
 
Increase in operating receivables                                         (1)       (51) 
 
Increase in operating payables                                             45         71 
 
Fair value gains on forestry assets                                      (64)       (40) 
 
Felling costs                                                              57         51 
 
Profit on disposal of property, plant and equipment                         -       (13) 
 
Profit from disposal of businesses                                          -        (6) 
 
Other adjustments                                                         (4)        (1) 
 
Cash generated from operations                                          1,401      1,279 
 
(b)   Cash and cash equivalents 
 
EUR million                                                                2016       2015 
 
Cash and cash equivalents per condensed combined and consolidated         404         64 
statement of financial position 
 
Bank overdrafts included in short-term borrowings                        (27)       (28) 
 
Cash and cash equivalents per condensed combined and consolidated         377         36 
statement of cash flows 
 
The fair value of cash and cash equivalents approximate their carrying values 
presented. 
 
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. 
 
(c)   Movement in net debt 
 
The Group's net debt position is as follows: 
 
EUR million                               Cash and Debt due Debt due     Current Debt-related    Total 
                                           cash    within    after   financial   derivative      net 
                                     equivalents     one      one        asset    financial     debt 
                                                     year     year investments  instruments 
 
At 1 January 2015                              9    (129)  (1,565)           -           72  (1,613) 
 
Cash flow                                     32     (52)      219           -            -      199 
 
Business combinations                          -        5      (8)           -            -      (3) 
 
Movement in unamortised loan costs             -        -      (3)           -            -      (3) 
 
Net movement in derivative financial           -        -        -           -         (73)     (73) 
instruments 
 
Reclassification                               -     (54)       54           2            -        2 
 
Currency movements                           (5)        8     (16)           -            6      (7) 
 
At 31 December 2015                           36    (222)  (1,319)           2            5  (1,498) 
 
Cash flow                                    345      152    (335)           -            -      162 
 
Business combinations                          -     (17)     (19)           -            -     (36) 
 
Movement in unamortised loan costs             -        -      (2)           -            -      (2) 
 
Net movement in derivative financial           -        -        -           -         (23)     (23) 
instruments 
 
Reclassification1                              -    (541)      547           -            -        6 
 
Currency movements                           (4)        4        9           -          (1)        8 
 
At 31 December 2016                          377    (624)  (1,119)           2         (19)  (1,383) 
 
Note: 
 
 1. Following the acquisition of the outstanding minority interest in a 
    subsidiary, the shareholder loan provided by the minority shareholder was 
    reclassified as an intercompany loan and has been eliminated on 
    consolidation. 
 
15   Capital commitments 
 
EUR million                                                                2016       2015 
 
Contracted for but not provided                                           222        213 
 
Approved, not yet contracted for                                        1,516        817 
 
Total capital commitments                                               1,738      1,030 
 

These capital commitments relate to the following categories of non-current 
non-financial assets: 
 
EUR million                                                                2016       2015 
 
Intangible assets                                                          35         22 
 
Property, plant and equipment                                           1,703      1,008 
 
Total capital commitments                                               1,738      1,030 
 
The expected maturity of these capital commitments is: 
 
EUR million                                                                2016       2015 
 
Within one year                                                           538        418 
 
One to two years                                                          593        334 
 
Two to five years                                                         607        278 
 
Total capital commitments                                               1,738      1,030 
 
Capital commitments are based on capital projects approved by the end of the 
financial year and the budget approved by the Boards. Major capital projects 
still require further approval before they commence and are not included in the 
above analysis. The Group's capital commitments are expected to be financed 
from existing cash resources and borrowing facilities. 
 
In January 2017, the Boards approved a further EUR470 million capital spend at 
Steti (Czech Republic). Capital expenditure is expected to be incurred in the 
three years from 2017 to 2019 and is not included in the capital commitments 
detailed above. 
 
16   Contingent liabilities 
 
Contingent liabilities comprise aggregate amounts as at 31 December 2016 of EUR11 
million (2015: EUR9 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 either year presented. 
 
17   Fair value measurement 
 
Financial instruments that are measured in the condensed combined and 
consolidated statement of financial position at fair value, or where the fair 
value of financial instruments have been disclosed in notes to the condensed 
combined and consolidated financial statements, are 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 only assets measured at fair value on level 3 of the fair value measurement 
hierarchy are the Group's forestry assets as set out in note 10 and certain 
assets acquired or liabilities assumed in business combinations. 
 
There have been no transfers of assets or liabilities between levels of the 
fair value hierarchy during the year. 
 
The fair values of financial instruments that are not traded in an active 
market (for example, over-the-counter derivatives) are determined using 
generally accepted valuation techniques. These valuation techniques maximise 
the use of observable market data where available and rely as little as 
possible on Group specific estimates. 
 
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 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 below, the directors consider that the carrying values 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 
 
EUR million                                            2016       2015       2016       2015 
 
Financial liabilities 
 
Borrowings                                          1,770      1,569      1,844      1,653 
 
The non-controlling interest holder in Kalenobel holds an option to put its 
shares to Mondi until June 2021, but not before March 2018, at a price 
determined based on future earnings. The present value of the option is EUR9 
million based on the current expected business plan, and is capped at TRY100 
million (EUR27 million). 
 
18   Related party transactions 
 
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. 
 
Transactions between Mondi Limited, Mondi plc and their respective 
subsidiaries, which are related parties, have been eliminated on consolidation. 
 
There have been no significant changes to the related parties as disclosed in 
note 31 of the Group's annual financial statements for the year ended 31 
December 2015. 
 
19   Events occurring after 31 December 2016 
 
With the exception of the events listed below there have been no material 
reportable events since 31 December 2016: 
 
  * Final dividend proposed for 2016 (see note 9); 
 
  * Acquisition of 100% of the outstanding share capital of Excelsior 
    Technologies Limited (Excelsior) on 6 February 2017, for a total 
    consideration of GBP33 million (EUR38 million), on a debt and cash-free basis. 
 
Production statistics 
 
                                                                          2016       2015 
 
Packaging Paper 
 
Containerboard                                                 '000      2,000      2,138 
                                                             tonnes 
 
Kraft paper                                                    '000      1,204      1,162 
                                                             tonnes 
 
Softwood pulp                                                  '000      1,870      1,759 
                                                             tonnes 
 
Internal consumption                                           '000      1,698      1,609 
                                                             tonnes 
 
Market pulp                                                    '000        172        150 
                                                             tonnes 
 
Hardwood pulp - internal consumption                           '000        364        322 
                                                             tonnes 
 
Fibre Packaging 
 
Corrugated board and boxes                                million m      1,448      1,350 
                                                                  ² 
 
Industrial bags                                             million      4,881      4,925 
                                                              units 
 
Extrusion coatings                                        million m      1,249      1,389 
                                                                  ² 
 
Consumer Packaging 
 
Consumer packaging                                          million      7,156      6,594 
                                                                 m2 
 
Uncoated Fine Paper 
 
Uncoated fine paper                                            '000      1,408      1,379 
                                                             tonnes 
 
Softwood pulp                                                  '000        334        349 
                                                             tonnes 
 
Internal consumption                                           '000        315        333 
                                                             tonnes 
 
Market pulp                                                    '000         19         16 
                                                             tonnes 
 
Hardwood pulp                                                  '000        853        839 
                                                             tonnes 
 
Internal consumption                                           '000        777        741 
                                                             tonnes 
 
Market pulp                                                    '000         76         98 
                                                             tonnes 
 
Newsprint                                                      '000        202        197 
                                                             tonnes 
 
South Africa Division 
 
Containerboard                                                 '000        253        247 
                                                             tonnes 
 
Uncoated fine paper                                            '000        258        240 
                                                             tonnes 
 
Hardwood pulp                                                  '000        602        619 
                                                             tonnes 
 
Internal consumption                                           '000        322        305 
                                                             tonnes 
 
Market pulp                                                    '000        280        314 

                                                             tonnes 
 
Newsprint                                                      '000        111        113 
                                                             tonnes 
 
Softwood pulp - internal consumption                           '000        148        138 
                                                             tonnes 
 
Exchange rates 
 
                                                      Average               Closing 
 
versus euro                                          2016       2015       2016       2015 
 
South African rand                                  16.27      14.17      14.46      16.95 
 
Czech koruna                                        27.03      27.28      27.02      27.02 
 
Mexican peso                                        20.66      17.61      21.77      18.91 
 
Polish zloty                                         4.36       4.18       4.41       4.26 
 
Pounds sterling                                      0.82       0.73       0.86       0.73 
 
Russian rouble                                      74.16      68.04      64.30      80.67 
 
Turkish lira                                         3.34       3.02       3.71       3.18 
 
US dollar                                            1.11       1.11       1.05       1.09 
 
Glossary of financial terms 
 
This announcement contains a number of terms which are explained below: 
 
Net debt                    A measure comprising short, medium, and long-term 
                            interest-bearing borrowings and the fair value of 
                            debt-related derivatives less cash and cash equivalents 
                            and current financial asset investments. 
 
Return on capital employed  Trailing 12-month underlying operating profit, including 
(ROCE)                      share of associates' net profit, divided by trailing 
                            12-month average capital employed and for segments has 
                            been extracted from management reports. Capital employed 
                            is adjusted for impairments in the year and spend on 
                            those strategic projects which are not yet in 
                            production. 
 
Special items               Those financial items which the Group believes should be 
                            separately disclosed on the face of the combined and 
                            consolidated income statement to assist in understanding 
                            the underlying financial performance achieved by the 
                            Group. Special items affect year-on-year comparability 
                            and the Group therefore excludes these items when 
                            reporting underlying earnings and related measures in 
                            order to provide a measure of the underlying performance 
                            of the Group on a basis that is comparable from year to 
                            year. 
 
Underlying EBITDA           Operating profit before special items, depreciation and 
                            amortisation. 
 
Underlying operating profit Operating profit before special items. 
 
Underlying profit before    Reported profit before tax and special items. 
tax 
 
Underlying earnings         Net profit after tax before special items attributable 
                            to shareholders. 
 
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, market growth 
and developments, expectations of growth and profitability and plans and 
objectives of management for future operations, are forward-looking 
statements.  Forward-looking statements are sometimes identified by the use of 
forward-looking terminology such as "believe", "expects", "may", "will", 
"could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", 
"predicts", "continues", "assumes", "positioned" or "anticipates" or the 
negative thereof, other variations thereon or comparable terminology. 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 and other 
statements contained in this document regarding matters that are not historical 
facts involve predictions and are based on numerous assumptions regarding 
Mondi's present and future business strategies and the environment in which 
Mondi will operate in the future. These forward-looking statements speak only 
as of the date on which they are made. 
 
No assurance can be given that such future results will be achieved; various 
factors could cause actual future results, performance or events to differ 
materially from those described in these statements. Such factors include in 
particular but without any limitation: (1) operating factors, such as continued 
success of manufacturing activities and the achievement of efficiencies 
therein, continued success of product development plans and targets, changes in 
the degree of protection created by Mondi's patents and other intellectual 
property rights and the availability of capital on acceptable terms; (2) 
industry conditions, such as strength of product demand, intensity of 
competition, prevailing and future global market prices for Mondi's products 
and raw materials and the pricing pressures thereto, financial condition of the 
customers, suppliers and the competitors of Mondi and potential introduction of 
competing products and technologies by competitors; and (3) general economic 
conditions, such as rates of economic growth in Mondi's principal geographical 
markets or fluctuations of exchange rates and interest rates. 
 
Mondi expressly disclaims a) any warranty or liability as to accuracy or 
completeness of the information provided herein; and b) any obligation or 
undertaking to review or confirm analysts' expectations or estimates or to 
update any forward-looking statements to reflect any change in Mondi's 
expectations or any events that occur or circumstances that arise after the 
date of making any forward-looking statements, unless required to do so by 
applicable law or any regulatory body applicable to Mondi, including the JSE 
Limited and the LSE. 
 
Any reference to future financial performance included in this announcement has 
not been reviewed or reported on by the Group's auditors. 
 
Editors' notes 
 
We are Mondi: In touch every day 
 
Mondi is an international packaging and paper Group, employing around 25,000 
people across more than 30 countries. Our key operations are located in central 
Europe, Russia, North America and South Africa. In 2016, Mondi had revenues of 
EUR6.7 billion and a return on capital employed of 20.3%. 
 
We are fully integrated across the packaging and paper value chain - from 
managing forests and producing pulp, paper and compound plastics, to developing 
effective and innovative industrial and consumer packaging solutions. With over 
100 products customised into more than 100,000 solutions, we offer more than 
you may expect. Leading brands around the world rely on our innovative 
technologies and products across a variety of industries such as agriculture; 
automotive; building and construction; chemicals and dangerous goods; food and 
beverages; graphic and photographic; home and personal care; medical and 
pharmaceutical; office and professional printing; packaging and paper 
converting; pet care; retail and e-commerce; and shipping and transport. 
 
We believe sustainable development makes good business sense. It's integral to 
our responsible and profitable growth, and embedded in everything we do, every 
day. We continue to look for ways to do more with less, promote the responsible 
management of ecosystems, develop and inspire our people, and enhance the value 
that our sustainable product solutions create. 
 
Mondi 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. We have 
been included in the FTSE4Good Index Series since 2008 and the JSE's Socially 
Responsible Investment (SRI) Index since 2007. 
 
Sponsor in South Africa: UBS South Africa Proprietary Limited 
 
 
 
END 
 

(END) Dow Jones Newswires

February 23, 2017 02:00 ET (07:00 GMT)