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

    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.

    Mondi Group: Trading update 11 October 2017

    This trading update provides an overview of our financial performance and
    financial position since the half year ended 30 June 2017, based on management
    information up to 30 September 2017. These results have not been audited or
    reviewed by Mondi's external auditors.

    Except as discussed in this update, there have been no significant events or
    transactions impacting either the financial performance or financial position
    of the Group since 30 June 2017 up to the date of this statement.

    Group performance overview

    Underlying operating profit for the third quarter of 2017 of €245 million was
    8% above the comparable prior year period (€227 million). The Group benefited
    from higher average selling prices partly offset by higher costs and negative
    currency effects. Underlying operating profit was in line with the second
    quarter of 2017, with the positive pricing momentum seen across most product
    segments offset by rising costs, negative currency effects and the usual
    seasonal downturn in Uncoated Fine Paper.

    Like-for-like sales volumes were above the comparable prior year period, driven
    by good growth in containerboard and Fibre Packaging. Selling prices for the
    Group's key paper grades were above those of both the comparable prior year
    period and the previous quarter as the upward momentum in pricing witnessed
    over the first half continued.

    Costs were generally higher than the comparable prior year period and the
    previous quarter. Wood, energy and chemical costs were higher than the
    comparable prior year period while benchmark paper for recycling prices were up
    15% compared to the third quarter of 2016, and 6% higher sequentially. Cash
    fixed costs were higher as a result of inflationary cost pressures and the
    impact of maintenance shuts, while depreciation and amortisation charges were
    up due to the impact of the Group's ongoing capital investment programme. Our
    recently completed projects in Packaging Paper and Fibre Packaging are making
    good contributions.

    Currency movements had a net negative impact on operating profit versus the
    comparable prior year period driven mainly by a weaker US dollar and sharply
    weaker Turkish Lira. On a sequential basis, the weakening Russian rouble and US
    dollar contributed to a net negative impact.

    Planned mill maintenance shuts were completed during the quarter with an
    estimated impact on operating profit of €30 million (2016: €20 million). Based
    on prevailing market prices, we continue to estimate that the impact of planned
    maintenance shuts on operating profit for 2017 will be around €90 million, with
    an expected impact in the fourth quarter of around €20 million (2016: €35
    million).

    Business unit overview

    In Packaging Paper, containerboard markets remain strong with healthy demand
    and limited industry capacity additions continuing to support pricing, albeit
    with the level of price increases achieved varying by grade. Average benchmark
    European unbleached kraftliner prices were up 20% on the prior year comparable
    period, and up 8% sequentially. By contrast, benchmark European white-top
    kraftliner prices were up by a more moderate 4% on the prior year comparable
    period, and up 1% sequentially. Average benchmark European recycled
    containerboard prices were up 18% on the prior year, and up 5% sequentially.
    Price increases in recycled containerboard (€30/tonne) and unbleached
    kraftliner (€50/tonne) were implemented in July and August respectively.

    The sack kraft paper market remains tight, supported by good demand growth in
    our export markets, stable core European markets, and constrained supply
    growth. Sales volumes for sack kraft paper remained at similar levels to the
    comparable prior year period and selling prices were higher following the
    implementation of previously announced price increases. On a sequential basis,
    prices were marginally up on average as most external volume is sold on fixed
    price annual contracts.

    The €335 million modernisation of the Steti mill (Czech Republic) is
    progressing well. As previously announced, we have postponed the €135 million
    investment in a new 90,000 tonne per annum machine glazed paper machine at the
    same site due to concerns around a potential market imbalance following
    recently announced industry capacity expansions.

    Our Fibre Packaging business continues to benefit from good volume growth,
    particularly in Corrugated Packaging. Recent paper price increases were partly
    recovered through box price increases during the quarter. In Industrial Bags
    the opportunity to recover paper price increases implemented early in the
    second quarter was limited due to annual fixed price contracts. Strong cost
    management continues to limit the impact of cost pressures.

    Consumer Packaging delivered an improved performance in the quarter although
    low growth in certain value added product areas remains a challenge. In
    response, a programme has been launched to restructure the cost base and align
    capacity to current market requirements. This involves various initiatives,
    including the closure of a plant in Poland, streamlining the UK operations and
    reducing the fixed cost base across the business. As a result, a special item
    charge estimated at €45 million, including an asset impairment of €27 million,
    will be recognised during the second half of 2017.

    The Uncoated Fine Paper business continues to perform strongly, although the
    quarterly performance was impacted by ongoing cost pressures, particularly in
    South Africa, planned maintenance shuts and limited pricing momentum. Average
    benchmark European uncoated fine paper prices were flat on the comparable prior
    year period and up 1% on the second quarter of 2017. Pricing in the domestic
    Russian and South African markets remained stable over the period. Supported by
    steady demand and cost pressures from rising pulp prices, price increases are
    currently in the process of implementation in the European, Russian and South
    African markets for selected products.

    Due to the accelerated rate of local demand decline, the decision has been
    taken to cease production of newsprint at our Merebank mill (South Africa). A
    special item charge of around €15 million will be recognised during the second
    half of 2017. During the quarter, we restarted an idled uncoated fine paper
    machine which will produce annually around 70,000 tonnes of uncoated fine paper
    to serve the local market, displacing imports.

    Cash flow and financing activities

    Strong cash generation from operating activities more than offset the cash
    outflows related to our capital expenditure programme and financing activities,
    resulting in a reduction in net debt during the quarter.

    Finance charges were lower than the comparable prior year period and in line
    with the previous quarter primarily due to the 5.75% 2017 Eurobond maturing in
    the first half of the year.

    There have been no other significant changes in the Group's borrowing
    facilities since 30 June 2017.

    During the quarter, Moody's Investors Service upgraded the Group's credit
    rating from Baa2 to Baa1 (stable outlook).

    Outlook

    We remain confident of making progress for the year and expect a strong final
    quarter, supported by generally higher average selling prices and good growth.
    However, continuing cost pressures and negative currency impacts are expected
    to result in an underlying performance for the year modestly below market
    expectations.

    With our robust business model, strong project pipeline and culture of driving
    performance, we remain confident of continuing to grow and deliver industry
    leading returns.

    Reorganisation of business segments

    As previously announced, effective from 1 October 2017, the Group reorganised
    its business units to reflect the nature of the underlying products produced.
    The changes to the Group's business units, and consequently to the Group's
    segmental reporting, are as follows:

      * Uncoated Fine Paper and South Africa, excluding the containerboard
        operations, were merged into a single business unit;
       
      * the containerboard operations of South Africa were merged into Packaging
        Paper; and
       
      * there were no changes to the Fibre Packaging or Consumer Packaging business
        units.
       
    Restated segmental information is included as an appendix to this statement.
    The reorganisation had no impact on the overall Group result.

    Operating segments (restated)

    Six months ended 30 June 2017

    € million, unless       Packaging     Fibre  Consumer Uncoated Corporate   Intersegment    Total
    otherwise stated            Paper Packaging Packaging     Fine              elimination         
                                                             Paper                                  
                                                                                                    
    Segment revenue             1,141     1,031       839      947         -          (376)    3,582
                                                                                                    
    Internal revenue            (333)      (17)       (2)     (24)         -                       -
                                                                                        376         
                                                                                                    
    External revenue              808     1,014       837      923         -              -    3,582
                                                                                                    
    Underlying EBITDA             296        98       106      232      (22)              -      710
                                                                                                    
    Depreciation and             (69)      (35)      (32)     (59)       (1)              -    (196)
    impairments                                                                                     
                                                                                                    
    Amortisation                  (2)       (3)      (11)      (1)         -              -     (17)
                                                                                                    
    Underlying operating          225        60        63      172      (23)              -      497
    profit/(loss)                                                                                   
                                                                                                    
    Special items                   5         -         -        -         -              -        5
                                                                                                    
    Operating segment           2,338     1,390     1,555    1,751         7          (202)    6,839
    assets                                                                                          
                                                                                                    
    Operating net segment       2,020     1,049     1,312    1,437         4              -    5,822
    assets                                                                                          
                                                                                                    
    Additions to                  120        49        76       76         -              -      321
    non-current                                                                                     
    non-financial assets                                                                            
                                                                                                    
    Capital expenditure           122        47        36       49         -              -      254
    cash payments                                                                                   
                                                                                                    
    Operating margin (%)         19.7       5.8       7.5     18.2         -              -     13.9
                                                                                                    
    Return on capital            23.1      13.0       9.7     27.6         -              -     18.7
    employed (%)                                                                                    
                                                                                                    
    Average number of             5.4       8.1       6.0      6.8       0.1              -     26.4
    employees (thousands)1                                                                          

    Six months ended 30 June 2016 

    € million, unless       Packaging     Fibre  Consumer Uncoated Corporate Intersegment    Total
    otherwise stated            Paper Packaging Packaging     Fine            elimination         
                                                             Paper                                
                                                                                                  
    Segment revenue             1,065       968       765      853         -        (339)    3,312
                                                                                                  
    Internal revenue            (302)      (17)       (2)     (18)         -          339        -
                                                                                                  
    External revenue              763       951       763      835         -            -    3,312
                                                                                                  
    Underlying EBITDA             274        94       100      263      (17)            -      714
                                                                                                  
    Depreciation and             (62)      (33)      (28)     (50)         -            -    (173)
    impairments                                                                                   
                                                                                                  
    Amortisation                  (1)       (2)       (8)      (1)         -            -     (12)
                                                                                                  
    Underlying operating          211        59        64      212      (17)            -      529
    profit/(loss)                                                                                 
                                                                                                  
    Operating segment           2,180     1,288     1,347    1,663         7        (165)    6,320
    assets                                                                                        
                                                                                                  
    Operating net segment       1,821       993     1,148    1,395         6            -    5,363
    assets                                                                                        
                                                                                                  
    Additions to                   68        65        40       56         -            -      229
    non-current                                                                                   
    non-financial assets                                                                          
                                                                                                  
    Capital expenditure            78        50        42       44         -            -      214
    cash payments                                                                                 
                                                                                                  
    Operating margin (%)         19.8       6.1       8.4     24.9         -            -     16.0
                                                                                                  
    Return on capital            24.5      12.6      11.6     32.5         -            -     21.2
    employed (%)                                                                                  
                                                                                                  
    Average number of             5.3       7.6       4.9      7.0       0.1            -     24.9
    employees (thousands)1                                                                        

    Year ended 31 December 2016

    € million, unless       Packaging     Fibre  Consumer Uncoated Corporate Intersegment    Total
    otherwise stated            Paper Packaging Packaging     Fine            elimination         
                                                             Paper                                
                                                                                                  
    Segment revenue             2,103     1,929     1,562    1,720         -        (652)    6,662
                                                                                                  
    Internal revenue            (579)      (32)       (4)     (37)         -          652        -
                                                                                                  
    External revenue            1,524     1,897     1,558    1,683         -            -    6,662
                                                                                                  
    Underlying EBITDA             527       194       198      481      (34)            -    1,366
                                                                                                  
    Depreciation and            (126)      (66)      (59)    (104)       (1)            -    (356)
    impairments                                                                                   
                                                                                                  
    Amortisation                  (4)       (5)      (18)      (2)         -            -     (29)
                                                                                                  
    Underlying operating          397       123       121      375      (35)            -      981
    profit/(loss)                                                                                 
                                                                                                  
    Special items                   -      (13)      (19)      (6)         -            -     (38)
                                                                                                  
    Operating segment           2,215     1,315     1,502    1,781         4        (161)    6,656
    assets                                                                                        
                                                                                                  
    Operating net segment       1,876     1,006     1,270    1,466         -            -    5,618
    assets                                                                                        
                                                                                                  
    Additions to                  168       161       217      134         -            -      680
    non-current                                                                                   
    non-financial assets                                                                          
                                                                                                  
    Capital expenditure           175       107        91       92         -            -      465
    cash payments                                                                                 
                                                                                                  
    Operating margin (%)         18.9       6.4       7.7     21.8         -            -     14.7
                                                                                                  
    Return on capital            23.1      13.5      10.5     32.3         -            -     20.3
    employed (%)                                                                                  
                                                                                                  
    Average number of             5.3       7.7       5.3      7.0       0.1            -     25.4
    employees (thousands)1                                                                        

    Year ended 31 December 2015

    € million, unless       Packaging     Fibre  Consumer Uncoated Corporate Intersegment    Total
    otherwise stated            Paper Packaging Packaging     Fine            elimination         
                                                             Paper                                
                                                                                                  
    Segment revenue             2,213     2,031     1,469    1,764         -        (658)    6,819
                                                                                                  
    Internal revenue            (578)      (37)       (4)     (39)         -          658        -
                                                                                                  
    External revenue            1,635     1,994     1,465    1,725         -            -    6,819
                                                                                                  
    Underlying EBITDA             547       187       177      448      (34)            -    1,325
                                                                                                  
    Depreciation and            (121)      (63)      (54)    (105)       (1)            -    (344)
    impairments                                                                                   
                                                                                                  
    Amortisation                  (3)       (4)      (15)      (2)         -            -     (24)
                                                                                                  
    Underlying operating          423       120       108      341      (35)            -      957
    profit/(loss)                                                                                 
                                                                                                  
    Special items                (14)      (21)      (22)        -         -            -     (57)
                                                                                                  
    Operating segment           2,202     1,224     1,333    1,542         6        (148)    6,159
    assets                                                                                        
                                                                                                  
    Operating net segment       1,861       935     1,146    1,276         1            -    5,219
    assets                                                                                        
                                                                                                  
    Additions to                  302       118       173      139         1            -      733
    non-current                                                                                   
    non-financial assets                                                                          
                                                                                                  
    Capital expenditure           278       118        92      107         -            -      595
    cash payments                                                                                 
                                                                                                  
    Operating margin (%)         19.1       5.9       7.4     19.3         -            -     14.0
                                                                                                  
    Return on capital            25.9      13.9      10.7     27.0         -            -     20.5
    employed (%)                                                                                  
                                                                                                  
    Average number of             5.6       7.7       4.6      7.3       0.1            -     25.3
    employees (thousands)1                                                                        

    Note:

    1    Presented on a full time employee equivalent basis.

    Capital Markets Day 2017

    Mondi will hold a Capital Markets Day on the morning of Tuesday 17 October in
    London, and a site visit to two consumer packaging plants in Germany on
    Wednesday 18 October. This event will give attendees the opportunity to meet
    our leadership team and gain insights into how we operate the business in line
    with our strategic priorities.

    The London presentations and a link to the live webcast of the event will be
    available at www.mondigroup.com/CMD2017. Registration is still open for the
    London event, please email CMD.Info@mondigroup.com if you would like to attend.

    Contact details:

    Mondi Group                                                                          
                                                                                         
    Andrew King                                +44 193 282 6355                          
                                                                                         
    Lora Rossler                               +27 83 627 0292                           
                                                                                         
    FTI Consulting                                                                       
                                                                                         
    Richard Mountain                           +44 7909 684 466                          
                                                                                         
    Frances Bussey                             +44 20 3727 1340                          

    Conference call dial-in details

    Please see below details of our dial-in conference call that will be held on 11
    October 2017 at 8:00 (UK) and 9:00 (SA).

    The conference call dial-in numbers are:

    South Africa                0800 200 648 (toll-free)UK                               0808 162 4061 (toll-free)

    Europe & Other           +800 246 78 700 (toll-free) or +27 10 201 6800

    Should you have any issues on the day with accessing the dial-in conference
    call, please call +27 11 535 3600.

    A replay facility will be available until 31 October 2017. Dial in: +27 (0)
    11 305 2030.

    Pin no: 17568#

    Editors' notes

    We are Mondi: In touch every day

    At Mondi, our products protect and preserve the things that matter.

    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.

    We offer over 100 packaging and paper products, customised into more than
    100,000 different solutions for customers, end consumers and industrial end
    uses - touching the lives of millions of people every day. In 2016, Mondi had
    revenues of €6.7 billion and a return on capital employed of 20.3%.

    The Mondi Group is 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. Our innovative technologies and products can be found in a variety
    of applications including hygiene components, stand-up pouches, superstrong
    cement bags, clever retail boxes and office paper. Our key customers are in
    industries such as automotive; building and construction; chemicals; food and
    beverage; home and personal care; medical and pharmaceutical; packaging and
    paper converting; pet care; and office and professional printing.

    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.

    For us, acting sustainably makes good business sense and is part of the way we
    work every day. 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 (Pty) Ltd