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 May 2017

    This trading update provides an overview of our financial performance and
    financial position since the year ended 31 December 2016, based on management
    information up to 31 March 2017 and estimated results for April 2017. These
    results have not been audited or reviewed by Mondi's external auditors.

    Reviewed results for the half-year ending 30 June 2017 will be published on 3
    August 2017.

    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 31 December 2016 up to the date of this statement.

    Group performance overview

    Underlying operating profit for the first quarter of 2017 of €252 million was
    6% down on the comparable prior year period (€269 million). Strong sales volume
    growth was more than offset by a significantly lower forestry fair value gain,
    inflationary cost pressures and lower average selling prices. Underlying
    operating profit was up 12% on the fourth quarter of 2016 (€225 million) as the
    Group benefited from higher sales volumes and prices.

    Sales volumes grew across the Group's Packaging Paper, Fibre Packaging and
    Consumer Packaging business units compared to the first quarter of 2016. This
    was further enhanced by the acquisitions in our Corrugated and Consumer
    Packaging businesses during 2016.

    Selling prices for the Group's main paper grades were, on average, below those
    of the comparable prior year period as prices decreased over the course of
    2016. As previously highlighted, during the first quarter of 2017, we
    implemented price increases across a number of our paper grades, although these
    had only limited impact in the quarter.

    Wood costs were higher than the comparable prior year period, while benchmark
    paper for recycling prices rose sharply, up 17% compared to the first quarter
    of 2016, and were at similar levels to the fourth quarter of 2016. Benchmark
    polyethylene prices were also higher, on the back of higher crude oil prices.
    Energy costs increased due to the weather conditions in Europe and higher
    energy input costs. Inflationary cost pressure resulted in higher fixed costs
    and the depreciation charge was up due to the impact of the Group's capital
    investment programme.

    Currency movements had a small net positive impact on operating profit versus
    the comparable prior year period and a small net negative impact when compared
    to the fourth quarter of 2016.

    Planned maintenance shuts were completed in Packaging Paper during the quarter
    with an estimated impact on operating profit of €10 million. There were no
    significant maintenance shuts during the first quarter of 2016. Based on
    prevailing market prices, we continue to estimate that the impact of planned
    maintenance shuts on operating profit for 2017 will be around €80 million, of
    which around €35 million will be incurred in the first half of the year (€
    20 million in the first half of 2016).

    Divisional overview

    In Packaging Paper, average selling prices for containerboard were down on the
    comparable prior year period due to price erosion seen over the course of 2016.
    Compared to the first quarter of 2016, average benchmark European kraftliner
    prices were down 2.7%, recycled containerboard prices were down 5.8%, and
    white-top kraftliner prices were marginally down. Supported by strong demand,
    price increases were implemented in recycled containerboard, with a cumulative
    €80/tonne increase having been achieved by the beginning of the second quarter.
    In unbleached kraftliner grades, increases of €50/tonne were implemented
    towards the end of the first quarter, while increases of up to €30/tonne in
    white top kraftliner have been agreed for implementation in the second quarter
    of 2017. Given sustained good demand and a strong order position, we have
    announced a further price increase of €50/tonne for unbleached kraftliner
    grades to take effect during the second quarter of 2017.

    Sales volumes for sack kraft paper remained at similar levels to the comparable
    prior year period. As previously indicated, selling prices were increased by 3?
    4% from the beginning of 2017 in all markets. Demand remains strong,
    particularly in our export markets, supporting further price increases during
    the second quarter of 2017 of 3?4% in our European business and, where not
    fixed by annual contracts, in overseas markets.

    Our Fibre Packaging business benefited from good volume growth, particularly in
    Corrugated Packaging, and a positive contribution from the acquisitions
    completed during 2016. Recent paper price increases are impacting margins in
    the near term, while strong cost management continues to limit the impact of
    other inflationary cost pressures.

    Consumer Packaging was impacted by inflationary cost pressures and negative
    sales mix effects which were offset by increased volumes and the contributions
    from recent acquisitions. Short term profit growth is proving challenging due
    to low growth in certain value added product areas.

    Uncoated Fine Paper continued to perform strongly despite weaker European
    pricing, benefiting from good demand, stable Russian domestic pricing and a
    stronger Russian rouble. Average benchmark European selling prices were down 4%
    on the comparable prior year period. During the first quarter, price increases
    of around €15?€25 per tonne were implemented in Europe. Given continued good
    demand, a further price increase of up to 6% was announced to be implemented in
    Europe during May.

    Our South Africa Division was impacted by a significantly lower forestry fair
    value gain, lower average export selling prices for both hardwood pulp and
    white top kraftliner, and a stronger rand, which more than offset higher
    average domestic selling prices.

    Capital investment projects

    We are making good progress on our capital investment projects. The recently
    completed projects in our Richards Bay (South Africa) and Syktyvkar (Russia)
    mills are making good contributions. Ramp-up of the rebuilt paper and inline
    coating machine in Steti (Czech Republic) remains challenging. Our investment
    at Swiecie (Poland) to provide an additional 100,000 tonnes per annum of
    softwood pulp and 80,000 tonnes per annum of lightweight kraftliner is
    currently in ramp-up. The process of obtaining approval for tax incentives and
    permitting for the proposed new paper machines at our Steti and Ruzomberok
    (Slovakia) mills is ongoing and work has started on the modernisation of the
    Steti pulp mill.

    Cash flow and financing activities

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

    In April 2017, we redeemed our 5.75% €500 million Eurobond from available cash
    and committed undrawn debt facilities. This will result in a lower finance cost
    charge for 2017.

    There have been no other significant changes in the Group's borrowing
    facilities since 31 December 2016.

    Outlook

    As previously advised, we are experiencing some inflationary cost pressures
    across the Group and the forestry fair value gain is expected to be lower than
    in 2016. Supported by good demand, we have successfully implemented price
    increases in a number of key paper grades and we expect to continue to benefit
    from our recently completed capital projects and acquisitions. We remain
    confident of making progress in the year and continuing to deliver industry
    leading returns.

    Contact details:

    Mondi Group                                                                          
                                                                                         
    Andrew King                                +27 11 994 5415                           
                                                                                         
    Lora Rossler                               +27 83 627 0292                           
                                                                                         
    FTI Consulting                                                                       
                                                                                         
    Richard Mountain                           +44 7909 684 466                          
                                                                                         
    Frances Elworthy                           +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
    May 2017 at 7:30 (UK) and 8:30 (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 May 2017. Dial in: +27 (0)11 305
    2030.

    Pin no: 13034#

    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