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MNDI Mondi News Story

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REG-Mondi PLC: Half-year Report

Mondi
plc                                            

(Incorporated in England and Wales)

(Registered number: 6209386)

LEI: 213800LOZA69QFDC9N34

LSE share code: MNDI                       ISIN:
GB00B1CRLC47

JSE share code: MNP

4 August 2022

Results for the six months ended 30 June 2022

Highlights
* Strong performance across the business
* Margin expansion in all continuing businesses, supported by good selling
price realisation and solid operating performance in challenging conditions
* Key capital investments contributing to performance
* Underlying EBITDA from continuing operations (excluding Russian operations)
of €942 million, up 66% year-on-year
* Total EBITDA including discontinued Russian operations (prior to special
items) of €1,170 million, up 65% year-on-year
* Around €1 billion of expansionary projects underway, approved or under
advanced evaluation – capturing growth in our packaging markets, building on
our leading market positions and adding to our strong track record of
disciplined capital allocation
* Completed sale of the Personal Care Components business for an enterprise
value of €615 million, delivering greater focus
* Process to dispose Russian operations ongoing - now reported as discontinued
operations held for sale
* Continued progress on sustainability roadmap, Mondi Action Plan 2030
(MAP2030)
* Balance sheet at 0.8x net debt to underlying EBITDA (continuing operations)
* Interim dividend declared of 21.67 euro cents per share, up 8% year-on-year
* Well-positioned for the future, with unique portfolio of leading sustainable
packaging solutions, cost-advantaged asset base, culture of continuous
improvement and strong financial position
Financial summary

As at 30 June 2022, the Group’s operations in Russia are reported as
discontinued operations held for sale.

 € million, except for percentages and per share measures                     Six months ended 30 June 2022  Six months ended 30 June 2021  Six months ended 31 December 2021 
 From continuing operations (excluding Russian operations)                                                                                                                    
 Group revenue                                                                                        4,505                          3,283                              3,691 
 Underlying EBITDA (1)                                                                                  942                            566                                591 
 Profit before tax                                                                                      933                            354                                358 
 Cash generated from operations                                                                         519                            407                                594 
                                                                                                                                                                              
 Basic underlying earnings per share (1)(euro cents)                                                   98.7                           53.4                               56.7 
 Basic earnings per share (euro cents)                                                                148.4                           54.4                               57.6 
 Interim dividend per share (euro cents)                                                              21.67                          20.00                                    
                                                                                                                                                                              
 Underlying EBITDA margin (1)                                                                         20.9%                          17.2%                              16.0% 
 Return on capital employed (ROCE) (1)                                                                19.2%                          12.8%                              13.9% 
                                                                                                                                                                              
 Net debt (1)                                                                                         1,220                          1,926                              1,689 
                                                                                                                                                                              
 From continuing and discontinued operations (including Russian operations)                                                                                                   
 Total EBITDA (prior to special items) (1)                                                            1,170                            709                                794 
 Basic total earnings per share (prior to special items) (1)(euro cents)                              129.3                           70.7                               83.3 
 Return on capital employed (ROCE) (1)                                                                22.5%                          14.8%                              16.9% 

Note:

1  The Group presents certain measures of financial performance, position or
cash flows that are not defined or specified according to International
Financial Reporting Standards (IFRS). These measures, referred to as
Alternative Performance Measures (APMs), are defined at the end of this
document and where relevant, are reconciled to IFRS measures in the notes to
the condensed consolidated financial statements.

Andrew King, Mondi Group Chief Executive Officer, said:

"Performance was strong across the Group in the first half of 2022, with
underlying EBITDA from continuing operations of €942 million, up 66%
year-on-year. Our vertical integration, the agility of our organisation and
strong collaboration with our customers ensured we delivered at a time when
supply chains continued to be disrupted around the world. We achieved strong
price realisation while maintaining tight cost control against a backdrop of
strong inflationary pressures. 

My sincere thanks goes to the teams across Mondi for their dedication and
ongoing commitment, delivering so strongly in these challenging times.

Sustainable packaging continues to be a key priority for our customers and
wider society. We are well placed to support our customers to achieve their
environmental goals with circular driven solutions that are sustainable by
design, a unique product portfolio, superior technical know-how, expertise in
understanding the best material choices and leading innovation
capabilities.  

Our capital investments continue to generate value-accretive growth, enhance
our cost competitiveness and drive sustainability benefits. We have an
ambitious expansionary capital investment programme to further capture growth
in our packaging markets, building on our leading market positions and long
track record of disciplined capital allocation. Our pipeline currently
includes around €1 billion of expansionary projects in our continuing
operations already approved or under advanced evaluation, which we anticipate
will generate mid-teen returns when in full operation. We continue to actively
consider further capital investments for growth in the packaging markets in
which we operate.

We are pleased to have completed the sale of the Personal Care Components
business to Nitto ahead of schedule. This enables us to simplify our portfolio
and focus on our strategic priority to grow in sustainable packaging.

Looking forward, pricing remains strong going into the second half, although
we do anticipate continued inflationary pressures on our cost base and ongoing
supply chain challenges. While significant geopolitical and macroeconomic
uncertainties remain, we expect a year of good progress.

Mondi remains well-placed to deliver sustainably into the future, underpinned
by our integrated cost advantaged asset base, culture of continuous
improvement, portfolio of sustainable packaging solutions and the strategic
flexibility offered by our strong cash generation and financial position."

Group performance review

Mondi performed strongly in the first half of 2022. Underlying EBITDA from
continuing operations of €942 million was up 66% compared to the first half
of 2021, and up 59% compared to the second half of 2021 ('sequentially').
Including the Russian operations, total EBITDA (prior to special items) of
€1,170 million was up 65% year-on-year.

The commentary below refers to the Group's continuing operations (which
exclude the Russian operations) unless otherwise stated.

Our packaging businesses continued to demonstrate the benefits of our
integrated value chain, our unique portfolio of innovative and sustainable
packaging solutions and our attention to quality and service. Uncoated Fine
Paper performance recovered strongly, benefiting from the successful
commissioning of the rebuilt recovery boiler in Richards Bay (South Africa) in
early 2022 and good price momentum in all markets. Our customers recognise the
stability of a long-term supplier, the sustained quality of our products and
our reliable and consistent service.

Revenue was up 37% on the comparable prior year period reflecting the benefit
of the implemented selling price increases. Input costs were significantly up
on the first half of 2021 and sequentially, due to materially higher energy,
wood, resins, transport, chemical and paper for recycling costs. Energy costs
were driven by sharp increases in the price of European gas and electricity.
Our pulp and paper mills generate most of their energy needs internally, with
biomass sources accounting for around 80% of the fuels used in this process,
thereby mitigating the impact of the significant surge in external fuel costs.

Wood costs in Central and Eastern Europe were materially higher on the
comparable prior year period and sequentially. Increasing demand for firewood
as an alternative energy source to fossil fuels, coupled with reduced supply
due to less calamity wood on the market and the impact of sanctions on Russian
and Belarusian timber, have contributed to the tightness in Central European
wood markets impacting both cost and availability.

Cash fixed costs were slightly higher, with inflationary cost pressures
mitigated by ongoing cost reduction initiatives. The non-cash forestry fair
value gain of €30 million in the first half was up €22 million on the
prior year period.

The impact of planned maintenance shuts on underlying EBITDA during the period
was around €40 million (2021: €25 million).  Based on prevailing market
prices, we estimate the full year impact on underlying EBITDA of the Group's
planned maintenance shuts at around €100 million (2021: €140 million).

Currency movements had a net positive effect on underlying EBITDA versus the
comparable prior year period as a result of the positive impact on certain of
our export-oriented businesses of a stronger US dollar, partly offset by
translation losses from a materially weaker Turkish lira relative to the euro.

Depreciation and amortisation charges were slightly up year-on-year as a
result of our ongoing capital investment programme.

We are pleased to have completed the disposal of the Personal Care Components
business ('PCC') at the end of June 2022 for an enterprise value of €615
million, allowing for greater focus on our strategic priority to grow in
sustainable packaging. As a result of the sale, we recognised a pre-tax gain
on disposal of €246 million.

As announced on 4 May 2022, having assessed all options for the Group’s
interests in Russia and recognising the Group's corporate values and
stakeholder responsibilities, the Board decided to divest the Group’s
Russian assets. As at 30 June 2022, these operations have been classified as
held for sale and presented as discontinued operations. The divestment process
is underway. The disposal of such significant assets is operationally and
structurally complex and it is being undertaken in an evolving political and
regulatory environment.

Profit before tax was €933 million, up 164% on the comparable prior year
period. Basic underlying earnings were 98.7 euro cents per share, up 85%
year-on-year. After taking the effect of special items into account, basic
earnings from continuing operations were 148.4 euro cents per share, up 173%
compared to the prior year period.

An interim dividend of 21.67 euro cents per share has been declared, up 8%
year-on-year. The Group has a strong financial position, with net debt to
underlying EBITDA of 0.8 times at 30 June 2022, providing the strategic
flexibility to pursue further organic growth projects, M&A opportunities
and/or additional shareholder distributions, in line with our long-established
capital allocation framework.

Mondi Action Plan 2030 (MAP2030)

Sustainability is at the centre of our purpose, strategy and culture. We
recognise the importance of working with others across the value chain to
drive positive change, and believe that being part of the solution to global
sustainability challenges will secure the long-term success of our business
and benefit our stakeholders.

Our sustainability framework, MAP2030, launched in 2021, builds on the strong
progress we have made to date and sets out the actions we need to take over
the next decade to achieve our ambitious goals. MAP2030 focuses on the areas
where we can have the most impact - circular driven solutions, created by
empowered people, taking action on climate. Each of these action areas has
three high-level commitments underpinned by more detailed targets. The
framework is founded on responsible business practices spanning business
ethics and governance, human rights, communities, procurement and
environmental impact.

Demand for sustainable products continues to grow, with brands and consumers
wanting to contribute to a low carbon, circular economy. Our conversations
with customers focus on how to design solutions that are efficient,
fit-for-purpose and help to convey and deliver their sustainability
commitments. Our unique product portfolio, expertise in understanding the best
material choices and customer-focused innovation capabilities, mean we can
create packaging solutions that are sustainable by design. This helps us to
eliminate unsustainable packaging, lead the transition to a circular economy
and grow our customer base of forward-thinking brands.

Building on almost two decades of progress, including science-based targets
approved by the Science Based Targets initiative (SBTi) in 2019, we have
accelerated our climate plans by committing to transition to Net-Zero by 2050.
Our Net-Zero commitment  has been developed to align with the SBTi's new
Net-Zero Standard and commits Mondi to reducing greenhouse gas emissions
across Scopes 1, 2 and 3 in line with a 1.5°C scenario. We are working with
the SBTi to validate our new targets, while we continue to take action today
to achieve our 2025 milestones.

For more details on our sustainability performance, please refer to our 2021
Sustainable Development report. You can find more details on our approach to
sustainability and MAP2030 in a video with the Group CEO and other senior
leaders at www.mondigroup.com/en/sustainability/approach.

Capital investments

Our disciplined approach to investigating, approving and executing capital
projects is one of our key strengths and plays an important role in
successfully delivering strong returns. Medium and long-term growth in the
packaging markets we serve is underpinned by the structural drivers of
eCommerce and the demand for more sustainable packaging. The Group's capital
investment programme is focused on driving organic growth, enhancing our
product offering, quality and service to customers, strengthening our cost
competitiveness and improving our environmental footprint.

During the first half of the year, we invested €218 million (2021:
€239 million) in our continuing operations' property, plant and equipment.
In addition, investment in our South African forestry assets amounted to
€25 million (2021: €23 million).

Our capital investment programme continues to deliver. We are seeing strong
contributions from capital projects completed in 2021, such as the new 300,000
tonne per annum kraft top white machine at Ruzomberok (Slovakia), the
converted speciality kraft paper machine at Steti (Czech Republic) and several
other projects. The incremental underlying EBITDA contribution from capital
investment projects from continuing operations in 2022 is expected to be
around €60 million.

Looking forward, we continue to see the opportunity to accelerate growth
across our packaging businesses supporting our customers and strengthening our
leading market positions in our growing markets. We have an ambitious
expansionary capital investment programme to support this growth. In this
context, our pipeline currently includes around €1 billion of expansionary
projects in our continuing operations already approved or under advanced
evaluation, that we anticipate will generate mid-teen returns when in full
operation. These investments, which include the projects below, will deliver
volume growth, lower our cost base and enhance our environmental footprint.

In Corrugated Packaging we are investing €125 million in our Kuopio mill
(Finland) to increase semi-chemical fluting capacity by around 55,000 tonnes,
enhance product quality, drive cost competitiveness and strengthen the
mill’s environmental performance, with start-up expected in the fourth
quarter of 2023. We are also investing €95 million to debottleneck
kraftliner production by 55,000 tonnes at our Swiecie mill (Poland), with
commissioning expected during 2024.

To strengthen our leading market position, support growth in eCommerce and
enhance our product and service offering, we are investing around €185
million across our Central and Eastern European Corrugated Solutions plant
network.

In Flexible Packaging, to meet growing demand for sustainable paper-based
flexible packaging, we are well advanced in the evaluation of an investment in
a new 200,000 tonne kraft paper machine at Steti for an anticipated total of
around €350 million. We expect to be in a position to make a final decision
on the investment in the second half of 2022.

We continue to expand the global reach of our leading Paper Bags business,
ramping up production at our new plant in Cartagena (Colombia), growing
capacity in Egypt, investing in a new plant in Morocco, upgrading the
capabilities in our North American plants and expanding our capacity of
paper-based flexible packaging solutions for eCommerce across Europe and the
US.

We are investing €65 million in our consumer flexibles plants, cementing our
leading position in the fast growing pet food packaging market. We also plan
to invest around €50 million to enhance our coating capabilities and meet
our customers' growing demand for innovative, sustainable paper-based
packaging with the necessary barrier properties.

On the back of this programme, total capital expenditure for the Group's
continuing operations is expected to be around €500-600 million in 2022 and
around €750-850 million in 2023.

We continue to evaluate further capital investment projects for growth in the
packaging markets where we operate, leveraging our high-quality,
cost-advantaged asset base.

Corrugated Packaging (continuing operations)

 € million                           Six months ended 30 June 2022  Six months ended 30 June 2021  Six months ended 31 December 2021 
 Segment revenue                                             1,564                          1,037                              1,312 
 Underlying EBITDA                                             375                            218                                325 
 Underlying EBITDA margin                                    24.0%                          21.0%                              24.8% 
 Underlying operating profit                                   308                            164                                262 
 Capital expenditure cash payments                              86                             89                                100 
 Operating segment net assets                                2,284                          2,060                              2,018 
 ROCE                                                        28.9%                          20.8%                              24.3% 

Corrugated Packaging delivered strongly in the first half, with underlying
EBITDA of €375 million up 72% on the comparable prior year period, driven
by significantly higher average selling prices achieved and the contribution
from acquisitions and capital investment projects previously completed.

Containerboard sales volumes were up on the comparable prior year period
supported by our broad, high-quality product offering and recently completed
investments. Corrugated Solutions box volumes were up on the prior year
including the effect of acquisitions and lower on a like-for-like basis. We
continue to see the benefits of our innovative product portfolio, our strong
customer proposition, disciplined pricing policy and the ongoing investment in
the business. Generally softer demand in Central Europe and Turkey, when
compared with the strong volume growth delivered in the prior year period,
impacted volumes in these regions.

Selling prices were significantly higher than the comparable prior year period
and higher sequentially, on the back of a series of price increases
implemented in 2021 and the first half of 2022. Average benchmark European
selling prices for unbleached kraftliner were up around 40% on the prior year
period and 15% on the second half of 2021, while average benchmark European
selling prices for recycled containerboard were up around 50% on the first
half of 2021 and 20% sequentially. European benchmark semi-chemical fluting
and white top kraftliner prices were up 20% to 25% on the comparable prior
year period and around 10% sequentially. We were successful in passing on
higher input paper costs through box price increases during the period.

Input costs were materially higher when compared to the prior year period, as
well as sequentially, with higher energy, wood, transport, paper for recycling
and chemicals costs. Our strong cost control focus mitigated fixed cost
inflationary effects.

We completed planned maintenance shuts at Kuopio and Richards Bay during the
first half. Maintenance shuts at Swiecie and Ruzomberok are planned for the
second half.

Flexible Packaging (continuing operations)

 € million                           Six months ended 30 June 2022  Six months ended 30 June 2021  Six months ended 31 December 2021 
 Segment revenue                                             2,082                          1,594                              1,698 
 Underlying EBITDA                                             416                            295                                272 
 Underlying EBITDA margin                                    20.0%                          18.5%                              16.0% 
 Underlying operating profit                                   328                            212                                187 
 Special items before tax                                        —                              5                                  2 
 Capital expenditure cash payments                              85                             98                                 84 
 Operating segment net assets                                3,053                          2,770                              2,822 
 ROCE                                                        18.7%                          14.8%                              15.2% 

Volume growth, significantly higher average selling prices and good cost
control drove Flexible Packaging's underlying EBITDA up 41% on the comparable
prior year period to €416 million.

Volume growth was supported by our innovative and sustainable packaging
portfolio. We grew our volumes in retail applications, in particular
paper-based shopping and eCommerce bags, as well as consumer applications,
such as food and pet food, where we have leading market positions. Demand for
building materials, construction and other specialised applications was also
positive during the period. Functional paper and films (FPF) benefited from
increased demand for sustainable packaging solutions although volumes were
slightly lower mainly due to restructuring initiatives in the prior year.

Pricing across the paper value chain was significantly higher compared to the
prior year period following price increases implemented in 2021 and the first
half of 2022. On the back of strong order books and tight markets, further
price increases were implemented early in the second half of the year across
our range of kraft papers, paper bags and functional paper and films, where
not fixed by annual or semi-annual contracts.

Input costs were materially up year-on-year and sequentially, with higher
plastic resins, energy, wood, transport and chemical costs. While cash fixed
costs were higher due to inflationary effects, this was mitigated by our
strong cost control initiatives.

The majority of planned mill maintenance shuts are scheduled for the second
half of the year.

We continue to drive innovation to support our customers' transition to more
sustainable packaging, and to partner along the value chain to create products
for a circular economy, incorporating paper where possible, leveraging our
coating capabilities and developing recyclable, flexible plastic-based
packaging solutions and increasing recycled content in our packaging.

Uncoated Fine Paper (continuing operations)

 € million                            Six months ended 30 June 2022  Six months ended 30 June 2021  Six months ended 31 December 2021 
 Segment revenue                                                793                            590                                604 
 Underlying EBITDA                                              171                             58                                (3) 
 Underlying EBITDA margin                                     21.6%                           9.8%                             (0.5%) 
 Underlying operating profit/(loss)                             135                             22                               (39) 
 Capital expenditure cash payments                               38                             38                                 47 
 Operating segment net assets                                 1,234                          1,196                              1,119 
 ROCE                                                          9.8%                           0.9%                             (1.7%) 

Uncoated Fine Paper delivered a good performance, with underlying EBITDA of
€171 million, up 195% on the prior year period. This was driven by our
strong customer offering, significantly higher average uncoated fine paper and
pulp prices, good operational performance following the successful
commissioning of the rebuilt recovery boiler in Richards Bay in early 2022,
and focused cost control.

The European uncoated fine paper market remains tight due to solid demand and
recent capacity reductions. We grew our share of the European market, with our
customers valuing us as a supplier of choice while capacity leaves the market,
and recognising the strength of our strategic position, underpinned by a broad
product portfolio and excellent service. Uncoated fine paper volumes in South
Africa were lower than the prior year period, due to severe floods around the
city of Durban in mid-April affecting production for most of the second
quarter. Production has now resumed and we are working with our customers to
restart deliveries. Pulp sales volumes were up sequentially following the
start up of the rebuilt recovery boiler at Richards Bay.

Average benchmark European uncoated fine paper selling prices were up around
35% on the comparable prior year period and 30% up sequentially. Average
benchmark European bleached hardwood pulp prices were up 50% compared with the
prior year period and up 10% sequentially.

Input costs were up significantly with higher energy, chemical, wood and
transport costs. Cash fixed costs were higher, mitigated by our cost control
initiatives.

Higher export timber prices during the period resulted in a non-cash forestry
fair value gain of €30 million in the first half, up €22 million on the
prior year period. Based on current market conditions, we expect a similar
level of forestry fair value gain in the second half.

A maintenance shut at Ruzomberok is planned for the second half.

H1 2022 EBITDA reconciliation between prior and current reporting segments

 € million                                                                                       Corrugated Packaging  Flexible Packaging  Engineered Materials  Uncoated Fine Paper  PCC (divested)  Corporate  Group  Discontinued operations (Russian operations) 
 Underlying EBITDA per prior reported segments                                                                    451                 380                    36                  324                       (21)  1,170                                               
 Reorganisation of FPF following PCC disposal                                                                                          35                  (36)                                    1                                                                 
 Reclassification of Russian operations                                                                          (76)                   1                                      (153)                             (228)                                           228 
 Underlying EBITDA per segment (continuing operations) and EBITDA from discontinued operations                    375                 416                                        171               1       (21)    942                                           228 
 Post-tax profit from continuing / discontinued operations                                                                                                                                                         777                                           148 

Russian operations (discontinued operations)

As announced on 4 May 2022, having assessed all options for the Group’s
interests in Russia and recognising the Group's corporate values and
stakeholder responsibilities, the Board decided to divest the Group’s
Russian assets. As at 30 June 2022, these operations have been classified as
held for sale and presented as discontinued operations.

The divestment process is underway. The disposal of such significant assets is
operationally and structurally complex and it is being undertaken in an
evolving political and regulatory environment.

The Russian operations generated EBITDA of €228 million in the first half
of the year (H1 2021: €143 million), of which around a third relates to
corrugated packaging-related products and two thirds to uncoated fine papers.
The Syktyvkar mill supplies the domestic uncoated fine paper market and has
managed supply chain and operational constraints during the period. The mill
also supplies white top kraftliner, a speciality containerboard product, to
the local market and some export destinations. Sales of containerboard to
Europe, which represented around a third of Syktyvkar's containerboard sales
volumes in 2021, were stopped towards the end of the first quarter.

The Russian operations' profit after tax for the period amounted to €148
million.

Syktyvkar's planned maintenance shut is scheduled for the second half of the
year.

As announced on 4 May 2022, all significant capital expenditure projects in
Russia are suspended.

Please refer to note 16 for further information.

Special items

Special items during the period amounted to a net income of €241 million
after tax as a result of the gain on disposal of PCC (2021: €5 million net
income).

Tax

The underlying effective tax rate from continuing operations in the first half
was 22% (2021: 22%), in line with our expectation.

Cash flow

Cash generated from continuing operations of €519 million (2021:
€407 million), including the impact of an increase in working capital,
reflects the continued strong cash generating capacity of the Group.

Working capital at 30 June 2022 was 14.5% of annualised revenue, below the
prior year's level (30 June 2021: 15.0%). This reflects the normal seasonal
increase in the first half of the year together with significantly higher
selling prices.

Tax paid of €97 million in the first half (2021: €67 million) was higher
mainly due to higher profitability, coupled with the timing of tax payments.
Interest paid was €52 million (2021: €55 million).

We completed the disposal of PCC for an enterprise value of €615 million at
the end of June 2022. Capital expenditure due to our ongoing capital
expenditure programme amounted to €218 million (2021: €239 million).

We paid the 2021 final dividend to shareholders of €218 million.

Treasury and borrowings

The Group has a strong financial position. Continuing operations' net debt at
30 June 2022 was €1,220 million, down from €1,689 million at
31 December 2021, reflecting the Group's strong cash generation capacity, the
disposal of PCC as well as the ongoing investment in the business, including
the increase in working capital. Net debt to underlying EBITDA was 0.8 times.

At 30 June 2022, the Group's continuing operations have a strong liquidity
position of around €1.6 billion, comprising €757 million of undrawn
committed debt facilities and net cash of €870 million. The weighted average
maturity of our committed debt facilities is 3.8 years. The Group's financing
agreements do not contain financial covenants.

Net finance costs of €66 million were above those of the comparable prior
year period (€40 million). This was driven by higher interest rates in
Central and Eastern Europe, in particular in the Czech Republic and Poland,
and currency mix effects.

The Group's credit is rated by Standard & Poor’s and Moody’s Investors
Service at BBB+ (stable outlook) and Baa1 (negative outlook), respectively.

Dividend

The Board aims to offer shareholders long-term ordinary dividend growth within
a targeted dividend cover range of two to three times on average over the
cycle. 

An interim dividend of 21.67 euro cents per share, up 8% year-on-year, has
been declared by the directors. The interim dividend will be paid on Thursday
29 September 2022 to those shareholders on the register of Mondi plc on
Friday 26 August 2022. The dividend will be paid from distributable reserves.

Outlook

Looking forward, pricing remains strong going into the second half, although
we do anticipate continued inflationary pressures on our cost base and ongoing
supply chain challenges. While significant geopolitical and macroeconomic
uncertainties remain, we expect a year of good progress.

Mondi remains well-placed to deliver sustainably into the future, underpinned
by our integrated cost advantaged asset base, culture of continuous
improvement, portfolio of sustainable packaging solutions and the strategic
flexibility offered by our strong cash generation and financial position.

Principal risks and uncertainties

The Board is responsible for the effectiveness of the Group’s risk
management activities and internal control processes. It has put procedures in
place for identifying, evaluating, and managing the significant risks that the
Group faces. In combination with the Audit Committee, at the beginning of
2022, the Board conducted a robust assessment of the principal and emerging
risks to which Mondi is exposed and it is satisfied that the Group has
effective systems and controls in place to manage its key risks within the
risk tolerance levels established.

The Group’s Integrated report and financial statements 2021 set out our
principal risks on pages 86 to 97. To the extent there is a change in the
assessment of those principal risks, it is reported below.

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.

Pandemic risk (COVID-19)

COVID-19 continues to impact the way we do business due to various health,
social and economic measures implemented by authorities around the world to
combat the pandemic. The health, safety and welfare of the Group’s employees
and our communities remain our top priority.

The Executive Committee and Board continue to monitor our exposure and the
impact of COVID-19 on the Group and evaluate actions to mitigate the risk, and
where possible, identify opportunities that have arisen. In future, these
actions and other monitoring techniques which we have developed, will enable
the Group to be dynamic in its reaction to the risk of a pandemic as it
emerges.

Strategic risks

The industries and geographies in which we operate expose us to specific
long-term risks which are accepted by the Board as a consequence of the
Group’s chosen strategy and operating footprint.

We have significant operations in Russia, including our integrated pulp,
packaging paper and uncoated fine paper mill located in Syktyvkar (Komi
Republic). The Group also has three converting plants in Russia. All these
facilities primarily serve the domestic market and have continued to operate
through the six months ended 30 June 2022. As announced on 4 May 2022, having
assessed all options for the Group’s interests in Russia and recognising the
Group's corporate values and stakeholder responsibilities, the Board decided
to divest the Group’s Russian assets. Further information is provided under
the heading 'Russian operations (discontinued operations)' above.

In Ukraine, Mondi has one paper bag plant located in Lviv, west of the
country, where production was temporarily suspended until it resumed gradually
starting in the second quarter. We are actively monitoring the war, the
international response and the implications for the Group.

We continue to track capacity announcements, demand developments and how
consumers are demanding more sustainable packaging. We continue to increase
our understanding of climate change-related risks and its impact whilst
continuing to improve our disclosures and develop our responses.

The Executive Committee and Board monitor our exposure to these risks and
evaluate investment decisions against our overall exposures so that our
strategic capital allocation takes advantage of the opportunities arising from
our deliberate exposure to such risks.

Our principal strategic risks relate to the following:
* Industry productive capacity
* Product substitution
* Fluctuations and variability in selling prices or gross margins
* Country risk
* Climate change-related risk
Financial risks

We aim to maintain an appropriate capital structure and to manage our
financial risk exposures in compliance with all laws and regulations.

An attentive approach to financial risk management remains in response to
continued scrutiny of the tax affairs of multinational companies and ongoing
short-term currency volatility.

Our principal financial risks relate to the following:
* Capital structure
* Currency risk
* Tax risk
Operational risks

As a Group we focus on operational excellence and investment in our people and
are committed to the responsible use of resources.

Our investments to improve our energy efficiency, engineer out our most
significant safety risks and improve operating efficiencies continues to
reduce the likelihood of operational risk events. Physical and transitional
risks arising due to climate change are anticipated to have an operational
impact on the Group, particularly on supply of wood fibre and energy within
the EU.

The risk of energy security and higher energy costs has heightened during the
period. Our pulp and paper mills generate most of their energy needs
internally, with biomass sources accounting for around 80% of the fuels used
in this process, thereby mitigating the impact of the significant surge in
external fuel costs. However, certain Group operations are reliant on gas
supply - we continue to actively monitor the supply situation, invest to
diversify our fuels sources and drive energy efficiency.

Our principal operational risks relate to the following:
* Cost and availability of raw materials
* Energy security and related input costs
* Technical integrity of our operating assets
* Environmental impact
* Employee and contractor health and safety
* Attraction and retention of key skills and talent
* Cyber security risk
Compliance risk

We have a zero tolerance approach to our compliance risk. Our strong culture
and values, emphasised in every part of our business, with a focus on
integrity, honesty, and transparency, underpin our approach.

Our principal compliance risk relates to Reputational risk.

Going concern

The directors have reviewed the Group’s current financial position and
performance expectations for the period until 30 June 2024, including
consideration of the principal risks which may impact the Group’s
performance in the near term. The going concern assessment has been based on
the Group's continuing operations (which exclude the Russian operations)
unless otherwise stated.

The Group has a strong balance sheet. Continuing operations' net debt at
30 June 2022 was €1,220 million, down from €1,689 million at
31 December 2021 reflecting the Group's strong cash generation capacity, the
disposal of PCC as well as the ongoing investment in the business, including
the increase in working capital. Net debt to underlying EBITDA was 0.8 times.
At 30 June 2022, the Group has a strong liquidity position of around €1.6
billion, comprising €757 million of undrawn committed debt facilities and
net cash of €870 million. The weighted average maturity of our committed
debt facilities is 3.8 years.

The Group has prepared a base case forecast for the Group's continuing
operations (which exclude the Russian operations) reflecting recent trading
performance in the first half of the year and expectations for market
developments over the period to 30 June 2024. The base case forecasts were
sensitised to reflect a severe but plausible downside scenario including
possible future impacts of the principal risks on Group performance. In the
severe but plausible downside scenario there remains significant liquidity
headroom.

In addition to its modelled downside going concern scenario, the Board has
reverse stress tested the model to determine the extent of downturn which
would result in no liquidity headroom. A decline of around 75% to the planned
underlying EBITDA in the period until 30 June 2024, well in excess of that
contemplated in the plausible downside scenario, would need to persist
throughout the observed period to result in no liquidity headroom, which is
considered very unlikely. This stress test also does not incorporate
mitigating actions like reductions and deferrals of capital and operational
expenditure or cash preservation responses, which the Group would implement in
the event of a severe and extended revenue decline.

Following its assessment, the directors have formed a judgement, at the time
of approving the condensed consolidated financial statements, that there are
no material uncertainties that cast doubt on the Group’s going concern
status and that it is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. For
this reason, the Group continues to adopt the going concern basis in preparing
the condensed consolidated financial statements for 30 June 2022.

Enquiries

Investors/analysts:

Clara
Valera                                                                                         
+44 193 282 6357

Mondi Group Head of Strategy and Investor
Relations               

Media:

Kerry
Cooper                                                                                       
+44 788 145 5806 

Mondi Group Communication Director 

Richard Mountain (FTI
Consulting)                                                 
+44 790 968 4466

Audiocast and dial-in conference call details

Please see below details for the audiocast and conference call that will be
held at 09:00 (BST) and 10:00 (CEST/SAST) today.

Audiocast:

An audiocast of the presentation will be accessible via
https://www.mondigroup.com/en/investors/

A PDF of the slides will be available to download from the above website 30
minutes before the audiocast commences. Written questions can be submitted via
the audiocast platform. If you wish to ask a question verbally, please connect
via the dial-in conference call (details below).

For queries regarding access to the audiocast please e-mail
group.communication@mondigroup.com.

A recording of the presentation will be available on Mondi’s website during
the afternoon of 4 August 2022.

Dial-in conference call:

To access the facility please register your name and contact details:
https://register.vevent.com/register/BI4efd3654616e47ad918c2020a236e0f9

Directors’ responsibility statement

The directors confirm that to the best of their knowledge:
* the condensed consolidated financial statements of the Group have been
prepared in accordance with International Accounting Standard 34, ‘Interim
Financial Reporting’, as adopted for use in the United Kingdom and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority;
* the half-year results announcement includes a fair review of the significant
events during the six months ended 30 June 2022 and a description of the
principal risks and uncertainties for the remaining six months of the year
ending 31 December 2022;
* there have been no significant individual related party transactions during
the first six months of the financial year; and
* there have been no significant changes in the Group’s related party
relationships from those reported in the Integrated report and financial
statements 2021.
The Group’s condensed consolidated financial statements, and related notes,
were approved by the Board and authorised for issue on 3 August 2022 and were
signed on its behalf by:

Andrew
King                                                                       
Mike Powell

Director                                                                                 
Director

3 August 2022

Independent review report to Mondi plc

Report on the condensed consolidated financial statements

Our conclusion

We have reviewed Mondi plc’s condensed consolidated financial statements
(the “interim financial statements”) in the half year results announcement
of Mondi plc for the six month period ended 30 June 2022 (the “period”).

Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, ‘Interim Financial Reporting’ and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom’s Financial Conduct
Authority.

The interim financial statements comprise:
* the condensed consolidated statement of financial position as at
30 June 2022;
* the condensed consolidated income statement and the condensed consolidated
statement of comprehensive income for the period then ended;
* the condensed consolidated statement of cash flows for the period then
ended;
* the condensed consolidated statement of changes in equity for the period
then ended; and
* the explanatory notes to the interim financial statements.
The interim financial statements included in the half year results
announcement of Mondi plc have been prepared in accordance with UK adopted
International Accounting Standard 34, ‘Interim Financial Reporting’ and
the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority.

Basis for conclusion

We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, ‘Review of Interim Financial Information Performed by
the Independent Auditor of the Entity’ issued by the Financial Reporting
Council for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures.

A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.

We have read the other information contained in the half year results
announcement and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with this ISRE. However, future events or
conditions may cause the group to cease to continue as a going concern.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The half year results announcement, including the interim financial
statements, is the responsibility of, and has been approved by the directors.
The directors are responsible for preparing the half year results announcement
in accordance with the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom’s Financial Conduct Authority. In preparing the half
year results announcement, including the interim financial statements the
directors are responsible for assessing the group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend
to liquidate the group or to cease operations, or have no realistic
alternative but to do so.

Our responsibility is to express a conclusion on the interim financial
statements in the half year results announcement based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom’s Financial Conduct Authority and for no other purpose.
We do not, in giving this conclusion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.

PricewaterhouseCoopers LLP

Chartered Accountants

London

3 August 2022

Condensed consolidated income statement
for the six months ended 30 June 2022

                                                                                                                                         Restated (1)                                    Restated (1)                   
                                                                                 Six months ended 30 June 2022                   Six months ended 30 June 2021                    Year ended 31 December 2021           
 € million                                                        Notes  Underlying  Special items (Note 5)       Total  Underlying  Special items (Note 5)       Total  Underlying  Special items (Note 5)       Total 
 From continuing operations                                                                                                                                                                                             
 Group revenue                                                        4       4,505                       —       4,505       3,283                       —       3,283       6,974                       —       6,974 
 Materials, energy and consumables used                                     (2,370)                       —     (2,370)     (1,688)                       —     (1,688)     (3,663)                       —     (3,663) 
 Variable selling expenses                                                    (362)                       —       (362)       (267)                       —       (267)       (547)                       —       (547) 
 Gross margin                                                                 1,773                       —       1,773       1,328                       —       1,328       2,764                       —       2,764 
 Maintenance and other indirect expenses                                      (155)                       —       (155)       (137)                       —       (137)       (328)                       —       (328) 
 Personnel costs                                                              (549)                       —       (549)       (512)                       3       (509)     (1,025)                       5     (1,020) 
 Other net operating expenses                                                 (127)                       —       (127)       (113)                       —       (113)       (254)                     (2)       (256) 
 Gain on disposal of business, net of related transaction costs      17           —                     246         246           —                       —           —           —                       —           — 
 EBITDA                                                               4         942                     246       1,188         566                       3         569       1,157                       3       1,160 
 Depreciation, amortisation and impairments                                   (194)                       —       (194)       (181)                       3       (178)       (375)                       4       (371) 
 Operating profit                                                     4         748                     246         994         385                       6         391         782                       7         789 
 Net profit from joint ventures                                                   3                       —           3           3                       —           3           6                       —           6 
 Net monetary gain arising from hyperinflationary economies           2           2                       —           2           —                       —           —           —                       —           — 
 Investment income                                                    7           2                       —           2           1                       —           1           5                       —           5 
 Foreign currency losses                                              7         (2)                       —         (2)           —                       —           —         (2)                       —         (2) 
 Finance costs                                                        7        (66)                       —        (66)        (41)                       —        (41)        (86)                       —        (86) 
 Profit before tax                                                              687                     246         933         348                       6         354         705                       7         712 
 Tax (charge)/credit                                                  8       (151)                     (5)       (156)        (76)                     (1)        (77)       (154)                       2       (152) 
 Profit from continuing operations                                              536                     241         777         272                       5         277         551                       9         560 
 From discontinued operations                                                                                                                                                                                           
 Profit from discontinued operations                                 16                                             148                                              84                                             213 
 Profit for the period                                                                                              925                                             361                                             773 
 Attributable to:                                                                                                                                                                                                       
 Non-controlling interests                                                                                           57                                              13                                              17 
 Shareholders                                                                                                       868                                             348                                             756 
                                                                                                                                                                                                                        
 Earnings per share (EPS) attributable to shareholders                                                                                                                                                                  
 euro cents                                                                                                                                                                                                             
 From continuing operations                                                                                                                                                                                             
 Basic EPS                                                            9                                           148.4                                            54.4                                           112.0 
 Diluted EPS                                                          9                                           148.4                                            54.4                                           111.9 
 Basic underlying EPS                                                 9                                            98.7                                            53.4                                           110.1 
 Diluted underlying EPS                                               9                                            98.7                                            53.4                                           110.0 
 From continuing and discontinued operations                                                                                                                                                                            
 Basic EPS                                                            9                                           178.9                                            71.8                                           155.9 
 Diluted EPS                                                          9                                           178.9                                            71.7                                           155.8 
 Basic total EPS (prior to special items)                             9                                           129.3                                            70.7                                           154.0 
 Diluted total EPS (prior to special items)                           9                                           129.2                                            70.7                                           153.9 

Note:

1 The Group’s operations in Russia are presented as held for sale as at 30
June 2022 and classified as discontinued operations for the period then ended.
Accordingly, in accordance with IFRS 5, 'Non-current Assets Held for Sale and
Discontinued Operations', the comparative figures for the periods ended 31
December 2021 and 30 June 2021 were restated to separate the net profit and
cash flows associated with the Russian operations. APMs, as defined at the end
of this document, were accordingly restated to exclude the effect of the
Russian operations. Refer to notes 1, 2 and 16 for further details.

Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2022

                                                                                                                                                                                              Restated                     Restated 
 € million                                                                                                                         Notes  Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
                                                                                                                                                                                                                                    
 Profit for the period                                                                                                                                              925                            361                          773 
                                                                                                                                                                                                                                    
 Items that may subsequently be reclassified to the condensed consolidated income statement                                                                                                                                         
 Fair value gains/(losses) arising from cash flow hedges of continuing operations                                                                                     1                            (1)                          (1) 
 Fair value gains arising from cash flow hedges of discontinued operations                                                            16                              5                              —                            — 
 Exchange differences on translation of foreign continuing operations                                                                                               165                             59                         (16) 
 Exchange differences on translation of foreign discontinued operations                                                               16                            417                             33                           42 
 Reclassification of foreign currency translation reserve to the condensed consolidated income statement on disposal of business      17                            (4)                              —                            — 
 Share of other comprehensive income of joint ventures                                                                                                                —                              —                            1 
 Items that will not subsequently be reclassified to the condensed consolidated income statement                                                                                                                                    
 Remeasurements of retirement benefits plans of continuing operations                                                                                                 5                              5                           11 
 Remeasurements of retirement benefits plans of discontinued operations                                                               16                              2                              —                            1 
 Tax effect thereof                                                                                                                                                 (2)                            (2)                          (4) 
 Other comprehensive income for the period                                                                                                                          589                             94                           34 
                                                                                                                                                                                                                                    
 Total comprehensive income for the period                                                                                                                        1,514                            455                          807 
                                                                                                                                                                                                                                    
 Attributable to:                                                                                                                                                                                                                   
 Non-controlling interests                                                                                                                                           77                             11                           13 
 Shareholders                                                                                                                                                     1,437                            444                          794 
                                                                                                                                                                                                                                    
 Total comprehensive income for the period attributable to shareholders arises from:                                                                                                                                                
 Continuing operations                                                                                                                                              865                            327                          538 
 Discontinued operations                                                                                                                                            572                            117                          256 

Condensed consolidated statement of financial position
as at 30 June 2022

 € million                                                   Notes  As at 30 June 2022  As at 30 June 2021  As at 31 December 2021 
 Property, plant and equipment                                                   4,083               4,822                   4,870 
 Goodwill                                                       11                 788                 929                     926 
 Intangible assets                                                                  67                  77                      76 
 Forestry assets                                                12                 389                 387                     348 
 Investments in joint ventures                                                      20                  15                      17 
 Financial instruments                                                              32                  31                      33 
 Deferred tax assets                                                                37                  33                      43 
 Net retirement benefits asset                                  15                  11                  22                      26 
 Other non-current assets                                                           11                   —                       1 
 Total non-current assets                                                        5,438               6,316                   6,340 
 Inventories                                                                     1,191               1,007                   1,099 
 Trade and other receivables                                                     1,553               1,322                   1,333 
 Current tax assets                                                                  4                   8                      12 
 Financial instruments                                                               9                   8                       4 
 Cash and cash equivalents                                     18b                 916                 288                     473 
                                                                                 3,673               2,633                   2,921 
 Assets held for sale                                           16               1,695                   1                       — 
 Total current assets                                                            5,368               2,634                   2,921 
 Total assets                                                                   10,806               8,950                   9,261 
                                                                                                                                   
 Short-term borrowings                                          14               (162)               (175)                   (124) 
 Trade and other payables                                                      (1,434)             (1,313)                 (1,444) 
 Current tax liabilities                                                         (153)                (92)                   (116) 
 Provisions                                                                       (20)                (40)                    (33) 
 Financial instruments                                                            (15)                 (7)                    (18) 
                                                                               (1,784)             (1,627)                 (1,735) 
 Liabilities directly associated with assets held for sale      16               (391)                   —                       — 
 Total current liabilities                                                     (2,175)             (1,627)                 (1,735) 
 Medium and long-term borrowings                                14             (1,975)             (2,121)                 (2,104) 
 Net retirement benefits liability                              15               (167)               (213)                   (197) 
 Deferred tax liabilities                                                        (270)               (302)                   (283) 
 Provisions                                                                       (31)                (35)                    (35) 
 Other non-current liabilities                                                    (12)                (16)                    (18) 
 Total non-current liabilities                                                 (2,455)             (2,687)                 (2,637) 
 Total liabilities                                                             (4,630)             (4,314)                 (4,372) 
                                                                                                                                   
 Net assets                                                                      6,176               4,636                   4,889 
                                                                                                                                   
 Equity                                                                                                                            
 Share capital                                                                      97                  97                      97 
 Own shares                                                                       (14)                (16)                    (18) 
 Retained earnings                                                               5,411               4,449                   4,760 
 Other reserves                                                                    223               (288)                   (341) 
 Total attributable to shareholders                                              5,717               4,242                   4,498 
 Non-controlling interests in equity                                               459                 394                     391 
 Total equity                                                                    6,176               4,636                   4,889 

The Group’s condensed consolidated financial statements, and related notes 1
to 23, were approved by the Board and authorised for issue on 3 August 2022
and were signed on its behalf by:

Andrew King       
                                                                               
Mike Powell

Director                                                                                                 
Director

Mondi plc company registered
number:                                         
6209386

Condensed consolidated statement of changes in equity
for the six months ended 30 June 2022

 € million                                         Equity attributable to shareholders  Non-controlling interests  Total  equity 
 At 1 January 2021                                                               4,002                        380          4,382 
 Total comprehensive income for the period                                         444                         11            455 
 Dividends                                                                       (201)                        (4)          (205) 
 Purchases of own shares                                                           (5)                          —            (5) 
 Acquisition of business                                                             —                          7              7 
 Other                                                                               2                          —              2 
 At 30 June 2021                                                                 4,242                        394          4,636 
 Total comprehensive income for the period                                         350                          2            352 
 Dividends                                                                        (97)                        (2)           (99) 
 Purchases of own shares                                                           (2)                          —            (2) 
 Other                                                                               5                        (3)              2 
 At 31 December 2021                                                             4,498                        391          4,889 
 Hyperinflation monetary adjustment (see note 2)                                  (12)                        (5)           (17) 
 Restated balance at 1 January 2022                                              4,486                        386          4,872 
 Total comprehensive income for the period                                       1,437                         77          1,514 
 Dividends                                                                       (218)                        (4)          (222) 
 Purchases of own shares                                                           (4)                          —            (4) 
 Hyperinflation monetary adjustment (see note 2)                                    15                          —             15 
 Other                                                                               1                          —              1 
 At 30 June 2022                                                                 5,717                        459          6,176 

Equity attributable to shareholders

 € million                                   As at 30 June 2022  As at 30 June 2021  As at 31 December 2021 
 Share capital                                               97                  97                      97 
 Own shares                                                (14)                (16)                    (18) 
 Retained earnings                                        5,411               4,449                   4,760 
 Cumulative translation adjustment reserve                (454)               (944)                 (1,007) 
 Post-retirement benefits reserve                          (34)                (48)                    (43) 
 Share-based payment reserve                                 12                  11                      16 
 Cash flow hedge reserve                                      5                   —                     (1) 
 Merger reserve                                             667                 667                     667 
 Other sundry reserves                                       27                  26                      27 
 Total                                                    5,717               4,242                   4,498 

Condensed consolidated statement of cash flows
for the six months ended 30 June 2022

                                                                                                                                        Restated                     Restated 
 € million                                                                  Notes   Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
                                                                                                                                                                              
 Cash flows from operating activities                                                                                                                                         
 Cash generated from continuing operations                                     18a                            519                            407                        1,001 
 Dividends received from other investments                                                                      —                              —                            1 
 Income tax paid                                                                                             (97)                           (67)                        (138) 
 Net cash generated from operating activities from discontinued operations      16                            193                            132                          286 
 Net cash generated from operating activities                                                                 615                            472                        1,150 
                                                                                                                                                                              
 Cash flows from investing activities                                                                                                                                         
 Investment in property, plant and equipment                                                                (218)                          (239)                        (481) 
 Investment in intangible assets                                                                              (4)                            (8)                         (16) 
 Investment in forestry assets                                                  12                           (25)                           (23)                         (45) 
 Investment in joint ventures                                                                                   —                            (1)                          (1) 
 Proceeds from the disposal of property, plant and equipment                                                    4                             19                           21 
 Proceeds from the disposal of business, net of cash and cash equivalents       17                            646                              —                            — 
 Acquisition of businesses, net of cash and cash equivalents                                                    —                           (63)                         (63) 
 Loans advanced to related and external parties                                                                 —                              —                          (1) 
 Interest received                                                                                              1                              1                            3 
 Other investing activities                                                                                     8                              —                            4 
 Net cash used in investing activities from discontinued operations             16                           (33)                           (47)                         (91) 
 Net cash generated from/(used in) investing activities                                                       379                          (361)                        (670) 
                                                                                                                                                                              
 Cash flows from financing activities                                                                                                                                         
 Proceeds from other medium and long-term borrowings                           18c                              —                             63                           59 
 Repayment of other medium and long-term borrowings                            18c                           (49)                              —                            — 
 Net proceeds from/(repayment) of short-term borrowings                        18c                             12                             11                          (4) 
 Repayment of lease liabilities                                                18c                           (11)                           (10)                         (21) 
 Interest paid                                                                                               (52)                           (55)                         (67) 
 Dividends paid to shareholders                                                 10                          (218)                          (201)                        (298) 
 Dividends paid to non-controlling interests                                                                  (4)                            (4)                          (6) 
 Purchases of own shares                                                                                      (4)                            (5)                          (7) 
 Non-controlling interests bought out                                                                           —                              —                          (3) 
 Net cash outflow from debt-related derivative financial instruments                                         (65)                           (14)                         (12) 
 Other financing activities                                                                                     —                              1                            — 
 Net cash used in financing activities from discontinued operations             16                           (11)                            (7)                         (13) 
 Net cash used in financing activities                                                                      (402)                          (221)                        (372) 
                                                                                                                                                                              
 Net increase/(decrease) in cash and cash equivalents                                                         592                          (110)                          108 
                                                                                                                                                                              
 Cash and cash equivalents at beginning of period                                                             455                            348                          348 
 Cash movement in the period                                                   18c                            592                          (110)                          108 
 Effects of changes in foreign exchange rates                                  18c                             98                            (1)                          (1) 
 Cash and cash equivalents at end of period                                    18b                          1,145                            237                          455 

Notes to the condensed consolidated financial statements
for the six months ended 30 June 2022

1   Basis of preparation

These condensed consolidated financial statements as at and for the six months
ended 30 June 2022 comprise Mondi plc and its subsidiaries (referred to as
the ‘Group’), and the Group’s share of the results and net assets of its
associates and joint ventures.

The Group’s condensed consolidated financial statements have been prepared
in accordance with International Accounting Standard 34, ‘Interim Financial
Reporting’ as adopted for use in the United Kingdom (UK) and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial
Conduct Authority. They should be read in conjunction with the Group’s
Integrated report and financial statements 2021, prepared in accordance with
UK-adopted International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.

The condensed consolidated financial statements have been prepared on a going
concern basis as discussed in the commentary under the heading ‘Going
concern’, which is incorporated by reference into these condensed
consolidated financial statements.

The financial information set out above does not constitute statutory accounts
as defined by section 434 of the Companies Act 2006. A copy of the statutory
accounts for the year ended 31 December 2021 has been delivered to the
Registrar of Companies. The auditors have reported on those accounts; their
report was (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 Companies Act 2006. The financial information set out above has been
reviewed, not audited.

These condensed consolidated financial statements have been prepared on the
historical cost basis, as modified by forestry assets, pension assets,
financial assets and financial liabilities held at fair value through profit
and loss and accounting in hyperinflationary economies.

No changes in the provisional amounts of the fair value of the assets acquired
and liabilities assumed for the acquisition of Olmuksan International Paper
Ambalaj Sanayi ve Ticaret A.S on 31 May 2021 have been recognised during the
six months ended 30 June 2022. Accounting for the transaction is finalised.

The preparation of these condensed consolidated financial statements includes
the use of estimates and assumptions. Although the estimates used are based on
management's best information about current circumstances and future events
and actions, actual results may differ from these estimates.

In preparing these condensed consolidated financial statements, the critical
accounting judgements made by management in applying the Group’s accounting
policies and significant accounting estimates as identified in the Group’s
Integrated report and financial statements 2021 were largely the same, with
the exception of the judgements applied in relation to the Group’s Russian
operations as to whether the Group should continue to consolidate its Russian
businesses, if and when the businesses satisfied the requirements to be
classified as held for sale, and whether the Russian businesses should be
presented as discontinued operations, and significant estimates and
assumptions in the valuation of its Russian assets (see note 16).

2   Accounting policies

The same accounting policies, methods of computation and presentation have
been followed in the preparation of the condensed consolidated financial
statements for the six months ended 30 June 2022 as were applied in the
preparation of the Group’s annual financial statements for the year ended
31 December 2021, except as follows:
* Non-current assets held for sale and discontinued operations
Non-current assets, and disposal groups, are classified as held for sale if
their carrying amount will be recovered through a sale transaction rather than
through continuing use. Non-current assets, and disposal groups, classified as
held for sale are measured at the lower of carrying amount and fair value less
costs to sell from the date on which these conditions are met.

Any resulting impairment is reported through the condensed consolidated income
statement. On classification as held for sale, the assets are no longer
depreciated or amortised. Comparative amounts in the condensed consolidated
statement of financial position are not adjusted.

Discontinued operations are either a separate major line of business or
geographical area of operations that have been disposed of or are part of a
single coordinated plan for disposal. Once an operation has been identified as
discontinued, its net profit or loss, other comprehensive income or expense
and cash flows are presented separately in the condensed consolidated income
statement, the condensed consolidated statement of comprehensive income and
the condensed consolidated statement of cash flows, including related notes to
these statements, and comparative information is restated. The Group’s
assets and liabilities related to comparative periods are not separated
between continuing and discontinued operations in the condensed consolidated
statement of financial position.
* Hyperinflation accounting
Effective from 1 January 2022, the Group has applied IAS 29, Financial
Reporting in Hyperinflationary Economies, for its subsidiaries in Turkey,
whose functional currencies have experienced a cumulative inflation rate of
more than 100% over the past three years. Assets, liabilities, the financial
position and results of foreign operations in hyperinflationary economies are
translated to Euro at the exchange rates prevailing on the reporting date. The
exchange differences are recognised directly in other comprehensive income,
and accumulated in the currency translation adjustment reserve in equity. Such
translation differences are reclassified to profit or loss only on disposal or
partial disposal of the overseas operation.

Prior to translating the financial statements of foreign operations, the
non-monetary assets and liabilities stated at historical cost are restated to
account for changes in the general purchasing power of the local currencies
based on the consumer price index (TUFE, 2003=100) published by the Turkish
Statistical Institute (TURKSTAT). The consumer price index for the six months
ended 30 June 2022 increased by 42% from 687 at 31 December 2021 to 978 at
30 June 2022. On the date of first-time application, being 1 January 2022,
the adjustment of the carrying amounts of non-monetary assets and liabilities
was recognised in retained earnings in equity as presented in the condensed
consolidated statement of changes in equity. The subsequent gains or losses
resulting from the restatement of non-monetary assets and liabilities are
recorded in the condensed consolidated income statement.

For the six months ended 30 June 2022, the adjustments from
hyperinflationary accounting have resulted in an increase in total assets of
€107 million, an increase in Group revenue of €47 million, a decrease in
underlying EBITDA of €28 million and a net monetary gain of €2 million.
Comparative amounts presented in Euro were not restated for subsequent changes
in the price level or exchange rates.

The Group also operates a paper bags plant in Lebanon, which became a
hyperinflationary economy in September 2020. IAS 29 has not been applied for
this subsidiary as the impact from hyperinflation accounting is considered
immaterial.
* A number of amendments to IFRS became effective for the financial period
beginning on 1 January 2022, but the Group did not have to change its
accounting policies or make any retrospective adjustments as a result of
adopting these amendments.
* Consistent with previous half year reports, taxes on income in the interim
period are accrued using the tax rate that would be applicable to expected
total annual profits or losses.
Alternative Performance Measures

The Group presents certain measures of financial performance, position or cash
flows in the condensed consolidated financial statements that are not defined
or specified according to IFRS. These measures, referred to as APMs, are
defined at the end of this document and where relevant reconciled to IFRS.

As at 30 June 2022, the Group’s operations in Russia are presented as held
for sale and classified as discontinued operations for the period then ended.
For comparability purposes, the APMs based on amounts recognised in the
condensed consolidated statement of financial position have been adjusted for
the Russian assets and liabilities as described at the end of this document.
Note, no restatement of the IFRS condensed consolidated statement of financial
position has been made for such items. APMs measuring the profitability of the
Group are presented for continuing operations (i.e. excluding the results for
the Russian discontinued operations) and comparatives are presented on the
same basis, consistent with the presentation of the IFRS condensed
consolidated income statement. Where these changes have impacted the APMs for
comparative periods as presented previously, these have been described as
restated.

3   Seasonality

The seasonality of the Group’s operations had no significant impact on the
condensed consolidated financial statements.

4   Operating segments

The Group’s operating segments are reported in a manner consistent with the
internal reporting provided to the Executive Committee, the chief operating
decision-making body. The operating segments are managed based on the nature
of the underlying products produced by those businesses and comprise three
(2021: four) distinct segments.

Each of the operating segments represents a reportable segment and derives its
income from the sale of manufactured products.

The Group’s operations in Russia, comprising its high-margin,
cost-competitive, integrated pulp, packaging paper and uncoated fine paper
mill in Syktyvkar (Komi Republic) and three converting plants, are reported as
discontinued operations for the period ended 30 June 2022. The discontinued
operations' net profit and cash flows are presented separately in the
condensed consolidated income statement and condensed consolidated statement
of cash flows for all periods presented. Financial information relating to the
discontinued operations is provided in note 16.

Effective from 30 June 2022 and following the completion of the sale of the
Personal Care Components (PCC) business, the Group reorganised its operating
segments. Functional Paper and Films, previously part of the Engineered
Materials operating segment, was moved to Flexible Packaging to strengthen
integration along the kraft paper value chain and further support the
development of innovative functional papers with barrier properties,
fulfilling customers’ needs for sustainable packaging. The remaining part of
the previously reported Engineered Materials operating segment, namely the
disposed PCC business (see note 17), has been reported in the Personal Care
Components (divested) operating segment up to the date of disposal.

Accordingly, the Group has restated the previously reported segment
information to present the Group’s operations under the new organisational
structure.

Six months ended 30 June 2022

 € million, unless otherwise stated              Corrugated Packaging  Flexible Packaging  Uncoated Fine Paper  Corporate  Personal Care Components (divested)  Intersegment elimination  Total Continuing operations  Discontinued operations (1)  Intersegment elimination  Total Group 
 Segment revenue                                                1,564               2,082                  793          —                                  181                      (76)                        4,544                                                   (39)        4,505 
 Internal revenue                                                (35)                (25)                 (43)          —                                 (12)                        76                         (39)                                                     39            — 
 External revenue                                               1,529               2,057                  750          —                                  169                         —                        4,505                                                      —        4,505 
 Underlying EBITDA                                                375                 416                  171       (21)                                    1                         —                          942                                                      —          942 
 Depreciation and impairments                                    (64)                (84)                 (35)          —                                  (3)                         —                        (186)                                                      —        (186) 
 Amortisation                                                     (3)                 (4)                  (1)          —                                    —                         —                          (8)                                                      —          (8) 
 Underlying operating profit/(loss)                               308                 328                  135       (21)                                  (2)                         —                          748                                                      —          748 
 Special items before tax                                           —                   —                    —          —                                  246                         —                          246                                                      —          246 
 Profit from discontinued operations                                                                                                                                                                                                           148                                    148 
 Operating segment assets                                       2,624               3,809                1,562          9                                    —                      (70)                        7,934                                                   (29)        7,905 
 Operating segment net assets                                   2,284               3,053                1,234          5                                    —                         —                        6,576                                                   (16)        6,560 
 Trailing 12-month average capital employed                     1,969               2,782                  983       (90)                                  345                         —                        5,989                          773                         —        6,762 
 Additions to non-current non-financial assets                     91                  93                   59          —                                    9                         —                          252                                                      —          252 
 Capital expenditure cash payments                                 86                  85                   38          —                                    9                         —                          218                                                      —          218 
 Underlying EBITDA margin (%)                                    24.0                20.0                 21.6          —                                  0.6                         —                         20.9                                                      —         20.9 
 Return on capital employed (%)                                  28.9                18.7                  9.8          —                                  1.1                         —                         19.2                                                      —         22.5 
 Average number of employees (thousands) (2)                      6.3                11.4                  3.0        0.1                                  0.9                         —                         21.7                          5.3                         —         27.0 

Notes:

1     The Group’s assets and liabilities in Russia are classified as
held for sale as at 30 June 2022 and its operations are reported as
discontinued operations for the period then ended. The discontinued
operations' net profit and cash flows are presented separately in the
condensed consolidated income statement and condensed consolidated statement
of cash flows and comparative information has been restated. The assets and
liabilities related to comparative periods are not separated between
continuing and discontinued operations in the condensed consolidated statement
of financial position (see note 2)

2     Presented on a full time employee equivalent basis

Six months ended 30 June 2021 (restated)

 € million, unless otherwise stated              Corrugated Packaging  Flexible Packaging  Uncoated Fine Paper  Corporate  Personal Care Components (divested)  Intersegment elimination  Total Continuing operations  Discontinued operations (1)  Intersegment elimination  Total Group 
 Segment revenue                                                1,037               1,594                  590          —                                  160                      (72)                        3,309                                                   (26)        3,283 
 Internal revenue                                                (27)                (25)                 (32)          —                                 (14)                        72                         (26)                                                     26            — 
 External revenue                                               1,010               1,569                  558          —                                  146                         —                        3,283                                                      —        3,283 
 Underlying EBITDA                                                218                 295                   58       (17)                                   12                         —                          566                                                      —          566 
 Depreciation and impairments                                    (52)                (79)                 (35)          —                                  (8)                         —                        (174)                                                      —        (174) 
 Amortisation                                                     (2)                 (4)                  (1)          —                                    —                         —                          (7)                                                      —          (7) 
 Underlying operating profit/(loss)                               164                 212                   22       (17)                                    4                         —                          385                                                      —          385 
 Special items before tax                                           —                   5                    —          —                                    1                         —                            6                                                      —            6 
 Profit from discontinued operations                                                                                                                                                                                                            84                                     84 
 Operating segment assets                                       2,406               3,346                1,454          4                                  424                      (68)                        7,566                          918                      (50)        8,434 
 Operating segment net assets                                   2,060               2,770                1,196          —                                  381                         —                        6,407                          784                         —        7,191 
 Trailing 12-month average capital employed                     1,560               2,620                  998       (97)                                  356                         —                        5,437                          640                         —        6,077 
 Additions to non-current non-financial assets                    157                  78                   55          —                                   15                         —                          305                                                      —          305 
 Capital expenditure cash payments                                 89                  98                   38          —                                   14                         —                          239                                                      —          239 
 Underlying EBITDA margin (%)                                    21.0                18.5                  9.8          —                                  7.5                         —                         17.2                                                      —         17.2 
 Return on capital employed (%)                                  20.8                14.8                  0.9          —                                  2.5                         —                         12.8                                                      —         14.8 
 Average number of employees (thousands) (2)                      5.5                11.2                  3.0        0.1                                  1.0                         —                         20.8                          5.2                         —         26.0 

Notes:

1     The Group’s assets and liabilities in Russia are classified as
held for sale as at 30 June 2022 and its operations are reported as
discontinued operations for the period then ended. The discontinued
operations' net profit and cash flows are presented separately in the
condensed consolidated income statement and condensed consolidated statement
of cash flows and comparative information has been restated. The assets and
liabilities related to comparative periods are not separated between
continuing and discontinued operations in the condensed consolidated statement
of financial position (see note 2)

2     Presented on a full time employee equivalent basis

Year ended 31 December 2021 (restated)

 € million, unless otherwise stated              Corrugated Packaging  Flexible Packaging  Uncoated Fine Paper  Corporate  Personal Care Components (divested)  Intersegment elimination  Total Continuing operations  Discontinued operations (1)  Intersegment elimination  Total Group 
 Segment revenue                                                2,349               3,292                1,194          —                                  335                     (133)                        7,037                                                   (63)        6,974 
 Internal revenue                                                (56)                (53)                 (59)          —                                 (28)                       133                         (63)                                                     63            — 
 External revenue                                               2,293               3,239                1,135          —                                  307                         —                        6,974                                                      —        6,974 
 Underlying EBITDA                                                543                 567                   55       (34)                                   26                         —                        1,157                                                      —        1,157 
 Depreciation and impairments                                   (112)               (160)                 (70)        (1)                                 (16)                         —                        (359)                                                      —        (359) 
 Amortisation                                                     (5)                 (8)                  (2)          —                                  (1)                         —                         (16)                                                      —         (16) 
 Underlying operating profit/(loss)                               426                 399                 (17)       (35)                                    9                         —                          782                                                      —          782 
 Special items before tax                                           —                   7                    —          —                                    —                         —                            7                                                      —            7 
 Profit from discontinued operations                                                                                                                                                                                                           213                                    213 
 Operating segment assets                                       2,394               3,456                1,415          7                                  440                      (89)                        7,623                          989                      (87)        8,525 
 Operating segment net assets                                   2,018               2,822                1,119        (1)                                  394                         —                        6,352                          844                         —        7,196 
 Trailing 12-month average capital employed                     1,754               2,667                  983       (91)                                  359                         —                        5,672                          677                         —        6,349 
 Additions to non-current non-financial assets                    258                 174                  133          6                                   24                         —                          595                                                      —          595 
 Capital expenditure cash payments                                189                 182                   85          2                                   23                         —                          481                                                      —          481 
 Underlying EBITDA margin (%)                                    23.1                17.2                  4.6          —                                  7.8                         —                         16.6                                                      —         16.6 
 Return on capital employed (%)                                  24.3                15.2                (1.7)          —                                  2.5                         —                         13.9                                                      —         16.9 
 Average number of employees (thousands) (2)                      5.9                11.2                  3.0        0.1                                  1.0                         —                         21.2                          5.2                         —         26.4 

Notes:

1     The Group’s assets and liabilities in Russia are classified as
held for sale as at 30 June 2022 and its operations are reported as
discontinued operations for the period then ended. The discontinued
operations' net profit and cash flows are presented separately in the
condensed consolidated income statement and condensed consolidated statement
of cash flows and comparative information has been restated. The assets and
liabilities related to comparative periods are not separated between
continuing and discontinued operations in the condensed consolidated statement
of financial position (see note 2)

2     Presented on a full time employee equivalent basis

External revenue by location of production and by location of customer(1)

                                                      External revenue by location of production                                                  External revenue by location of customer                          
                                                                                   Restated                     Restated                                                      Restated                     Restated 
 € million                     Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021  Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Africa                                                                                                                                                                                                             
 South Africa                                            229                            235                          451                            207                            192                          394 
 Rest of Africa                                           39                             28                           56                            191                            131                          272 
 Africa total                                            268                            263                          507                            398                            323                          666 
 Western Europe                                                                                                                                                                                                     
 Austria                                                 874                            641                        1,280                            105                             75                          159 
 Germany                                                 486                            420                          877                            618                            467                          996 
 United Kingdom                                            2                              2                            3                            120                             87                          191 
 Rest of western Europe                                  411                            317                          699                          1,024                            742                        1,511 
 Western Europe total                                  1,773                          1,380                        2,859                          1,867                          1,371                        2,857 
 Emerging Europe                                                                                                                                                                                                    
 Czech Republic                                          409                            290                          602                            146                            107                          223 
 Poland                                                  775                            554                        1,242                            435                            318                          707 
 Turkey                                                  331                            171                          434                            404                            202                          512 
 Rest of emerging Europe (2)                             582                            353                          764                            333                            248                          515 
 Emerging Europe total                                 2,097                          1,368                        3,042                          1,318                            875                        1,957 
 Russia                                                    —                              —                            —                             14                             17                           34 
 North America                                           313                            233                          480                            506                            374                          804 
 South America                                             1                              —                            —                             85                             56                          128 
 Asia and Australia                                       53                             39                           86                            317                            267                          528 
 Group total                                           4,505                          3,283                        6,974                          4,505                          3,283                        6,974 

Notes:

1     Excludes external revenue generated by the discontinued operations
(see note 16)

2     External revenue for Rest of emerging Europe by location of
production and customer has been further analysed to separately show revenue
for Turkey.

Reconciliation of operating segment assets

                                              As at 30 June 2022        As at 30 June 2021       As at 31 December 2021    
 € million                                    Segment   Segment net     Segment   Segment net       Segment   Segment net  
                                                assets        assets      assets        assets        assets        assets 
 Group total                                     7,905         6,560       8,434         7,191         8,525         7,196 
 Unallocated                                                                                                               
 Assets held for sale (see note 16)              1,695         1,304           —             —             —             — 
 Investments in joint ventures                      20            20          15            15            17            17 
 Deferred tax assets/(liabilities)                  37         (233)          33         (269)            43         (240) 
 Other non-operating assets/(liabilities)          226         (255)         173         (297)           201         (321) 
 Group capital employed                          9,883         7,396       8,655         6,640         8,786         6,652 
 Financial instruments/(net debt)                  923       (1,220)         295       (2,004)           475       (1,763) 
 Total assets/equity                            10,806         6,176       8,950         4,636         9,261         4,889 

Other non-operating assets/(liabilities) include non-current financial
instruments, current tax assets/(liabilities), provisions for restructuring
costs, employee related and other provisions, derivative financial instruments
and other non-operating receivables/(payables).

5   Special items

The Group separately discloses special items, an APM as defined at the end of
this document, on the face of the condensed consolidated income statement to
assist its stakeholders in understanding the underlying financial performance
achieved by the Group on a basis that is comparable from year to year.

 € million                                                                      Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Operating special items                                                                                                                                                  
 Reversal of impairment of assets                                                                           —                              3                            4 
 Restructuring and closure costs:                                                                                                                                         
 Personnel costs                                                                                            —                              3                            5 
 Other restructuring and closure costs                                                                      —                              —                          (2) 
 Gain on disposal of business, net of related transaction costs (see note 17)                             246                              —                            — 
 Total special items before tax                                                                           246                              6                            7 
 Tax (charge)/credit (see note 8)                                                                         (5)                            (1)                            2 
 Total special items                                                                                      241                              5                            9 

The operating special items resulted in a cash outflow from operating
activities for the six months ended 30 June 2022 of €8 million (six months
ended 30 June 2021: €13 million; year ended 31 December 2021: €15
million). The net cash received from the sale of the Personal Care Components
business totalled €646 million and is presented within cash flows from
investing activities.

To 30 June 2022 (Reviewed)

The special items during the period comprised:
* Personal Care Components (divested)
* €246 million gain on the sale of the Personal Care Components business to
Nitto Denko Corporation. Transaction costs of €6 million were recognised in
the prior year and were not treated as a special item. Further detail is
provided in note 17.
To 31 December 2021 (Audited)

The special items during the year ended 31 December 2021 comprised:
* Flexible Packaging
* Release of restructuring and closure provision of €2 million and partial
reversal of impairment of assets of €3 million were recognised relating to
the closure of a functional paper and films plant in the US. The credits are
linked to a special item from the prior year, of which total costs accumulated
to €9 million.
* Release of restructuring and closure provision of €2 million, partly
offset by additional restructuring costs of €1 million, and reversal of
impairment of assets of €1 million were recognised. All credit/(charges)
related to special items from prior years.
6   Write-down of inventories to net realisable value

                                                                                                                 Restated                     Restated 
 € million                                                   Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Write-down of inventories to net realisable value                                    (47)                           (24)                         (42) 
 Aggregate reversal of previous write-downs of inventories                              29                             19                           30 

7   Net finance costs

                                                                                                                 Restated                     Restated 
 € million                                                   Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Investment income                                                                       2                              1                            5 
 Net foreign currency losses                                                           (2)                              —                          (2) 
 Finance costs                                                                                                                                         
 Interest expense                                                                                                                                      
 Interest on bank overdrafts and loans                                                (59)                           (35)                         (75) 
 Interest expense from lease liability                                                 (4)                            (3)                          (7) 
 Net interest expense on net retirement benefits liability                             (3)                            (3)                          (4) 
 Total interest expense                                                               (66)                           (41)                         (86) 
 Total finance costs                                                                  (66)                           (41)                         (86) 
 Net finance costs                                                                    (66)                           (40)                         (83) 

Net interest expense, an APM as defined at the end of this document, for the
six months ended 30 June 2022 was €61 million (six months ended
30 June 2021 (restated): €37 million; year ended 31 December 2021
(restated): €77 million).

8   Tax charge

The Group’s effective tax rate before special items, an APM as defined at
the end of this document, was 22% for the six months ended 30 June 2022 (six
months ended 30 June 2021: 22%; year ended 31 December 2021: 22%).

                                                                                                                                Restated                     Restated 
 € million                                                                  Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 UK corporation tax at 19% (2021: 19%)                                                                  —                              1                            — 
 Overseas tax                                                                                         149                             69                          160 
 Current tax in respect of prior periods                                                              (5)                              —                            4 
 Current tax                                                                                          144                             70                          164 
 Deferred tax in respect of the current period                                                         15                              9                          (6) 
 Deferred tax in respect of prior periods                                                             (4)                            (3)                          (4) 
 Deferred tax attributable to a change in the rate of domestic income tax                             (4)                              —                            — 
 Tax charge before special items                                                                      151                             76                          154 
 Current tax on special items                                                                           5                              —                          (1) 
 Deferred tax on special items                                                                          —                              1                          (1) 
 Tax charge/(credit) on special items (see note 5)                                                      5                              1                          (2) 
 Tax charge for the period                                                                            156                             77                          152 
 Current tax charge                                                                                   149                             70                          163 
 Deferred tax charge/(credit)                                                                           7                              7                         (11) 
                                                                                                                                                                      

9   Earnings per share (EPS)

                                                                           EPS attributable to shareholders                              
 euro cents                                    Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 From continuing operations                                                                                                              
 Basic EPS                                                             148.4                           54.4                        112.0 
 Diluted EPS                                                           148.4                           54.4                        111.9 
 Basic underlying EPS                                                   98.7                           53.4                        110.1 
 Diluted underlying EPS                                                 98.7                           53.4                        110.0 
                                                                                                                                         
 From discontinued operations                                                                                                            
 Basic EPS                                                              30.5                           17.3                         43.9 
 Diluted EPS                                                            30.5                           17.3                         43.9 
                                                                                                                                         
 From continuing and discontinued operations                                                                                             
 Basic EPS                                                             178.9                           71.8                        155.9 
 Diluted EPS                                                           178.9                           71.7                        155.8 
 Basic total EPS (prior to special items)                              129.3                           70.7                        154.0 
 Diluted total EPS (prior to special items)                            129.2                           70.7                        153.9 
 Basic headline EPS                                                    129.0                           70.7                        155.3 
 Diluted headline EPS                                                  129.0                           70.7                        155.2 

The calculation of basic and diluted EPS, basic and diluted total EPS (prior
to special items) and basic and diluted headline EPS is based on the following
data:

                                                                                                    Earnings                                          
                                                                                                                Restated                     Restated 
 € million                                                  Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Profit for the period attributable to shareholders                                   868                            348                          756 
 Arises from:                                                                                                                                         
 Continuing operations                                                                720                            264                          543 
 Discontinued operations (1)                                                          148                             84                          213 
 Special items (see note 5)                                                         (246)                            (6)                          (7) 
 Related tax (see note 5)                                                               5                              1                          (2) 
 Total earnings for the period (prior to special items)                               627                            343                          747 
 Arises from:                                                                                                                                         
 Continuing operations                                                                479                            259                          534 
 Discontinued operations (1)                                                          148                             84                          213 
 Special items not excluded from headline earnings                                      —                              3                            3 
 (Gain)/loss on disposal of property, plant and equipment                             (2)                            (1)                            1 
 Related tax                                                                            1                            (2)                            2 
 Headline earnings for the period                                                     626                            343                          753 

Note:

1     Profit from discontinued operations are wholly attributable to
shareholders.

Underlying earnings, total earnings (prior to special items) and headline
earnings represent APMs which are defined at the end of this document.

                                                                            Weighted average number of shares                              
 million                                         Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Basic number of ordinary shares outstanding                             485.1                          485.0                        485.0 
 Effect of dilutive potential ordinary shares                              0.2                            0.2                          0.3 
 Diluted number of ordinary shares outstanding                           485.3                          485.2                        485.3 

10   Dividends

The interim dividend for the year ending 31 December 2022 of 21.67 euro cents
per ordinary share will be paid on Thursday 29 September 2022 to those
shareholders on the register of Mondi plc on Friday 26 August 2022. The
dividend will be paid from distributable reserves of Mondi plc, as presented
in the annual financial statements for the year ended 31 December 2021. The
interim dividend is not recognised as a liability at 30 June 2022.

                                                   Six months ended 30 June 2022           Year ended 31 December 2021       
                                               euro cents  per share        € million  euro cents  per share       € million 
 Final dividend in respect of prior year                       45.00              218                  41.00             201 
 Interim dividend in respect of current year                   21.67              105                  20.00              97 

The interim dividend declared for the year ended 31 December 2021 of 20 euro
cents per ordinary share was paid in September 2021.

Dividend timetable

The interim dividend for the year ending 31 December 2022 will be paid in
accordance with the following timetable:

 Last date to trade shares cum-dividend                                                                                                          
 JSE Limited                                                                                                              Tuesday 23 August 2022 
 London Stock Exchange                                                                                                  Wednesday 24 August 2022 
                                                                                                                                                 
 Shares commence trading ex-dividend                                                                                                             
 JSE Limited                                                                                                            Wednesday 24 August 2022 
 London Stock Exchange                                                                                                   Thursday 25 August 2022 
                                                                                                                                                 
 Record date                                                                                                               Friday 26 August 2022 
                                                                                                                                                 
 Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository Participants    Thursday 1 September 2022 
                                                                                                                                                 
 Last date for DRIP elections to UK Registrar and South African Transfer Secretaries:                                                            
 South African Register                                                                                                  Friday 2 September 2022 
 UK Register                                                                                                            Monday 12 September 2022 
                                                                                                                                                 
 Payment Date                                                                                                         Thursday 29 September 2022 
                                                                                                                                                 
 DRIP purchase settlement dates (subject to market conditions and the purchase of shares in the open market):                                    
 UK Register                                                                                                               Monday 3 October 2022 
 South African Register                                                                                                 Wednesday 5 October 2022 
                                                                                                                                                 
 Currency conversion dates                                                                                                                       
 ZAR/euro                                                                                                                 Thursday 4 August 2022 
 Euro/sterling                                                                                                          Friday 16 September 2022 

Share certificates on Mondi plc's South African register may not be
dematerialised or rematerialised between Wednesday 24 August 2022 and Friday
26 August 2022, both dates inclusive, nor may transfers between the UK and
South African registers of Mondi plc take place between Wednesday 17
August 2022 and Friday 26 August 2022, both dates inclusive.

Information relating to the dividend tax to be withheld from 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 Thursday 4 August 2022.

11   Goodwill

 € million                                                As at 30 June 2022  As at 30 June 2021  As at 31 December 2021 
 Net carrying value                                                                                                      
 At 1 January                                                            926                 923                     923 
 Hyperinflation monetary adjustment (see note 2)                          11                   —                       — 
 Restated balance at 1 January                                           937                 923                     923 
 Acquired through business combinations                                    —                   2                       — 
 Disposal of business (see note 17)                                    (141)                   —                       — 
 Reclassification to assets held for sale (see note 16)                 (34)                   —                       — 
 Hyperinflation monetary adjustment (see note 2)                           8                   —                       — 
 Currency movements                                                       18                   4                       3 
 At 30 June / 31 December                                                788                 929                     926 

12   Forestry assets

 € million                       As at 30 June 2022  As at 30 June 2021  As at 31 December 2021 
 At 1 January                                   348                 372                     372 
 Investment in forestry assets                   25                  23                      45 
 Fair value gains/(losses)                       30                   8                     (7) 
 Felling costs                                 (34)                (37)                    (62) 
 Currency movements                              20                  21                       — 
 At 30 June / 31 December                       389                 387                     348 

The fair value of forestry assets is a level 3 measure in terms of the fair
value measurement hierarchy (see note 21), consistent with prior years. The
fair value of forestry assets continues to be determined using a market-based
approach. The valuation process and key observable inputs were largely
consistent with those applied for the year ended 31 December 2021, as
described in note 14 of the Group’s Integrated report and financial
statements 2021. The main reason for the fair value gain for the six months
ended 30 June 2022 was higher net selling prices during the period.

13   Leases

The Group has entered into various lease agreements. The Group’s
right-of-use assets were €120 million as at 30 June 2022 (€179 million
as at 30 June 2021; €177 million as at 31 December 2021) and the related
depreciation charge was €12 million for the six months ended 30 June 2022
(six months ended 30 June 2021 (restated): €11 million; year ended
31 December 2021 (restated): €22 million). The decrease in the
right-of-use assets is mainly driven by the Russian forestry leases, which
have been reclassified to assets held for sale in June 2022.

14   Borrowings

Financing facilities

Group liquidity is provided through a range of committed debt facilities. The
principal loan arrangements in place are the following:

 € million                                   Maturity   Interest rate %  As at 30 June 2022  As at 30 June 2021  As at 31 December 2021 
 Financing facilities                                                                                                                   
 Syndicated Revolving Credit Facility       June 2027  EURIBOR + margin                 750                 750                     750 
 €500 million Eurobond                     April 2024            1.500%                 500                 500                     500 
 €600 million Eurobond                     April 2026            1.625%                 600                 600                     600 
 €750 million Eurobond                     April 2028            2.375%                 750                 750                     750 
 European Investment Bank Facility          June 2025  EURIBOR + margin                   —                  38                      33 
 Long Term Facility Agreement           December 2026  EURIBOR + margin                  30                  70                      70 
 Other                                        Various           Various                   9                  56                      57 
 Total committed facilities                                                           2,639               2,764                   2,760 
 Drawn                                                                              (1,882)             (1,966)                 (1,957) 
 Total committed facilities available                                                   757                 798                     803 

The effective interest rate, an APM as defined at the end of this document,
was 5.8% for the trailing 12-month period to 30 June 2022 (30 June 2021
(restated): 4.0%; 31 December 2021 (restated): 4.3%). The Group’s Eurobonds
incur a fixed rate of interest but swapping this EUR debt into other
currencies to fund subsidiaries exposes the Group to floating interest rates.

Mondi currently has investment grade credit ratings from both Moody’s
Investors Service (Baa1, outlook negative) and Standard & Poor’s (BBB+,
outlook stable).

                                     As at 30 June 2022             As at 30 June 2021            As at 31 December 2021      
 € million                     Current  Non-current   Total   Current  Non-current   Total    Current  Non-current    Total   
 Secured                                                                                                                      
 Bank loans and overdrafts            1            1        2        3            2        5         2            1         3 
 Lease liabilities                   19          111      130       20          184      204        20          184       204 
 Secured                             20          112      132       23          186      209        22          185       207 
 Unsecured                                                                                                                    
 Bonds                                —        1,842    1,842        —        1,839    1,839         —        1,840     1,840 
 Bank loans and overdrafts          138           21      159      125           96      221        77           79       156 
 Other loans                          4            —        4       27            —       27        25            —        25 
 Total unsecured                    142        1,863    2,005      152        1,935    2,087       102        1,919     2,021 
 Total borrowings                   162        1,975    2,137      175        2,121    2,296       124        2,104     2,228 
 Committed facilities drawn                             1,882                          1,966                            1,957 
 Uncommitted facilities drawn                             255                            330                              271 
                                                                                                                              

The decrease in the lease liabilities is mainly driven by the Russian forestry
leases, which have been reclassified to liabilities held for sale in June
2022.

15   Retirement benefits

All assumptions related to the Group’s material defined benefit schemes and
post-retirement medical plan liabilities were re-assessed individually and the
remaining defined benefit schemes and unfunded statutory retirement
obligations were re-assessed in aggregate for the six months ended
30 June 2022. The net retirement benefits liability decreased by €30
million to €167 million as at 30 June 2022 (31 December 2021: €197
million) due to changes in assumptions, exchange rate movements and the
reclassification of the liability in Russia to total liabilities directly
associated with assets classified as held for sale (see note 16). The net
retirement benefits asset decreased by €15 million to €11 million as at
30 June 2022 (31 December 2021: €26 million) which was caused by changes
in assumptions and exchange rate movements. The assets backing the defined
benefit scheme liabilities reflect their market values as at 30 June 2022.
The net remeasurement gains of the continuing operations' retirement benefit
plans, which arose from changes in assumptions, amounted to €5 million
before tax and have been recognised in the condensed consolidated statement of
comprehensive income.

16   Russian operations (discontinued operations)

The Group has significant operations in Russia, which generated segment
revenue of €604 million, an EBITDA of €228 million and a profit from
discontinued operations of €148 million for the six months ended 30 June
2022.

The most significant facility is a wholly owned integrated pulp, packaging
paper and uncoated fine paper mill located in Syktyvkar (Komi Republic). The
Group also has three converting plants in Russia. All these facilities
primarily serve the domestic market and have continued to operate throughout
the six months ended 30 June 2022.

The Russian businesses have, to date, managed supply chain constraints.
However, the situation remains fluid, with interruptions to pulp and paper
production possible going forward. All significant capital expenditure
projects in Russia are suspended.

On 4 May 2022, recognising its corporate values and wider stakeholder
responsibilities, the Group decided to divest the Group’s Russian assets.
The divestment process for the Russian businesses is operationally and
structurally complex and is being undertaken in an evolving political and
regulatory environment. Accordingly, there can be no certainty when a
transaction will be completed or as to the structure of any possible
transaction.

In the context of an increased level of uncertainty, the Group has exercised
critical judgements in applying its accounting policies as follows and as
further described below:
* Control assessment: whether the Group should continue to consolidate its
Russian businesses; and
* Held for sale and discontinued operation: if and when the businesses
satisfied the requirements to be classified as held for sale, and whether the
Russian businesses should be presented as discontinued operations.
In addition, the Group has also applied significant estimates and assumptions
in the valuation of its Russian assets, as described below.

Impairment

The Syktyvkar mill and three converting plants each individually represent
separate cash generating units (CGUs) for impairment assessment purposes. The
Group has assessed whether each Russian CGU is impaired as a direct or
indirect result of the war in Ukraine and the severe economic sanctions
imposed by international and Russian governments.

Effective 24 February 2022, when the war in Ukraine started, the Group
performed an impairment trigger assessment. Given the temporary deterioration
of the Russian rouble and the sharp increase in interest rates, together with
the increased uncertainty relating to the operational and financial
performance of its businesses due to sanctions imposed by international
governments and countermeasures implemented by the Russian state, management
concluded that an impairment trigger existed and tested its CGUs in Russia for
impairment using value-in-use calculations in accordance with IAS 36,
Impairment of Assets.

The key assumptions reflected in the cash flow forecasts included sales
volumes, sales prices and variable input cost assumptions derived from a
combination of economic and industry forecasts for individual product lines
and the latest internal management projections approved by the Board. The cash
flow projections were prepared in Russian roubles and a post-tax discount rate
of 15% (equivalent to a pre-tax rate of 18%) was used for impairment testing.
Due to the increased uncertainty, no growth rate was assumed for the terminal
value. At this time (at 24 February 2022), the carrying value of the Russian
CGUs totalled RUB 66 billion (€677 million, at an exchange rate of 97.47
Russian rouble versus euro).

Due to the increased level of uncertainty resulting from the war in Ukraine,
management determined the recoverable amount of the CGUs based on three
probability-weighted scenarios. Aside from the base scenario derived from the
then latest internal management projections, management included a more
optimistic and a pessimistic scenario in the calculation of the recoverable
amount to address the uncertainty associated with the cash flow forecasts. The
impairment calculation is sensitive to changes in key assumptions, in
particular in relation to cash flow forecasts and the probability-weighting of
scenarios. Sensitivity analyses were performed by increasing the weighting of
the pessimistic case and at the same time reducing the weighting of the
optimistic case. At 24 February 2022, no impairment was identified.

Given, as described below, that in June the Board determined that the Russian
assets satisfied the criteria to be classified as held for sale, a further
impairment test had to be performed. At this time (mid June 2022), the
carrying value of the Russian CGUs totalled RUB 66 billion (€1,079 million,
at an exchange rate of 61.16 Russian rouble versus euro). This impairment test
was again performed using three probability weighted scenarios under a
value-in-use calculation based on similar assumptions as described above for
the test performed effective 24 February 2022. No impairment had arisen.

Upon classification as held for sale in mid-June 2022, management also
assessed the fair value less costs to dispose of the businesses, as required
by IFRS 5, ‘Non-current Assets Held for Sale and Discontinued Operations.’
The fair value less costs to dispose was reassessed at the balance sheet date.

As at 30 June 2022, while dialogue was ongoing with a number of potential
buyers, no committed offers had been received for the Russian operations. On
that basis, management had to estimate the fair value of the businesses. In
determining an appropriate fair value, management considered indicative offers
received to date, its value-in-use calculations of recoverable amount (as
described above) and typical, historical multiples of EBITDA to enterprise
value for similar businesses, and the extent to which these value-in-use
calculations and historical multipliers should be discounted, given the
current situation in Russia, to derive an approximate fair value. While the
estimates show a wide range of fair values, the estimates indicated that the
carrying value of the Group’s Russian businesses can be supported and hence
no impairment was required.

The situation in Russia is highly complex and continues to evolve. For this
reason, determination of fair value is particularly challenging, and the range
of potential fair values is wide. In addition, depending on the structure of
any disposal, it is likely that approval will be required by the Russian
authorities, both of the disposal itself and the associated price.
Furthermore, the Russian rouble to EUR foreign exchange rate has been volatile
in recent months, which impacts both the EUR carrying value of the associated
Russian net assets at any given time, and may also impact the disposal price
that is achieved in EUR terms if it is determined in roubles.

For these reasons, there can be no certainty that the price ultimately
achieved on disposal of the Russian businesses will be sufficient to support
the carrying value.

Control assessment

The Group has applied judgement in regards to whether the Group continues to
control its Russian subsidiaries due to the restrictions imposed by the
Russian government or any other authority. Control exists when the Group is
exposed, or has rights, to variable returns from its involvement with the
subsidiary and has the ability to affect those returns through its power over
the subsidiary. The Russian government introduced various sanctions in recent
months, including restrictions on the payment of dividends to “unfriendly
states” that require consent from the Ministry of Finance of Russia. Since
the Group continued to direct the operations and the Russian regulations
currently do not prohibit the declaration and payment of dividends, the Group
has taken the view that it has retained control through the six months ended
30 June 2022. Were the Group to conclude that it no longer retains control,
the Russian operations would be treated as if they had been disposed of, with
the associated assets and liabilities derecognised.

Held for sale and discontinued operation

On 4 May 2022, the Group decided to divest its Syktyvkar mill and three
converting plants in Russia. Given progress with the divestment process, the
Board subsequently concluded, in June 2022, that the Russian operations
satisfied the criteria to be classified as held for sale and that they should
also be classified as discontinued operations as at 30 June 2022 and for the
six months then ended.

The Group has applied judgement as to whether the operations in Russia meet
the held for sale presentation criteria at 30 June 2022 and whether these need
to be reported as discontinued operations.

Assets are held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use
provided the assets are available for immediate sale in their present
condition and a sale is highly probable. The divestment process is
operationally and structurally complex and is being undertaken in an evolving
political and regulatory environment. There is uncertainty as to when a
transaction will be completed and as to the structure of any possible
transaction. However, the Group is committed to dispose of its Russian
operations and has allocated relevant resources to complete a sale in due
course, which is why the Group has determined that a sale is highly probable
within the next 12 months and that, therefore, it is appropriate to adopt the
held for sale presentation for the Group's assets and liabilities in Russia as
at 30 June 2022.

From the point at which this classification was first applied, in mid-June
2022, depreciation on these Russian assets ceased. Notwithstanding that the
Board has concluded that it considers a sale is highly probable, the evolving
political and regulatory environment means that there can be no certainty as
to whether a transaction will be concluded successfully, or what form any
transaction might take. If the Board had concluded that a sale was not highly
probable, the assets and liabilities would have continued to be consolidated
on a line-by-line basis, as they had been historically, rather than presented
separately as assets held for sale and liabilities directly associated with
assets held for sale.

As the assets and liabilities of the Russian operations have been classified
as held for sale, the Group has to separately consider whether these
businesses also represent a discontinued operation, being a component of an
entity that either has been disposed of, or is classified as held for sale,
and represents a separate major line of business or geographical area of
operations, is part of a single coordinated plan to dispose of a separate
major line of business or geographical area of operations or is a subsidiary
acquired exclusively with a view to resale. The Russian operations represented
around 12% of the Group's revenue by location of production in 2021 and
generated around 20% of the Group’s underlying EBITDA over the last three
years. Taking into account its financial significance, the Group views the
Russian operations as a distinct major geographical area of operations that,
therefore, qualify for classification as discontinued operations. Hence, in
accordance with IFRS 5, the Group has reported its Russian businesses as
discontinued operations as at 30 June 2022 and for the six months then ended,
with the comparative income statement and cash flow statement periods
represented. Had the Group concluded that the businesses were not discontinued
operations they would instead have continued to be reported as part of
continuing operations.

The financial performance of the discontinued operations is set out below:

 € million                                                                               Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Segment revenue                                                                                                   604                            439                          961 
 Internal revenue                                                                                                 (86)                           (95)                        (212) 
 External revenue                                                                                                  518                            344                          749 
 Operating expenses                                                                                              (290)                          (201)                        (403) 
 EBITDA                                                                                                            228                            143                          346 
 Depreciation and amortisation (1)                                                                                (29)                           (31)                         (64) 
 Operating profit                                                                                                  199                            112                          282 
 Net finance costs                                                                                                (11)                            (5)                         (11) 
 Profit before tax                                                                                                 188                            107                          271 
 Related tax charge                                                                                               (40)                           (23)                         (58) 
 Profit for the period from discontinued operations attributable to shareholders                                   148                             84                          213 
 Fair value gains arising from cash flow hedges of discontinued operations                                           5                              —                            — 
 Exchange differences on translation of discontinued operations                                                    417                             33                           42 
 Remeasurements of retirement benefits plans of discontinued operations                                              2                              —                            1 
 Other comprehensive income from discontinued operations attributable  to shareholders                             424                             33                           43 
 Total comprehensive income from discontinued operations attributable  to shareholders                             572                            117                          256 

Note:

1     On classification as held for sale, property, plant and equipment
and intangible assets are no longer depreciated or amortised. Depreciation and
amortisation for the six months ended 30 June 2022 covers the period until the
classification as held for sale in mid-June 2022.

 € million                                                                Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Net cash generated from operating activities                                                       193                            132                          286 
 Net cash used in investing activities                                                             (33)                           (47)                         (91) 
 Net cash used in financing activities                                                             (11)                            (7)                         (13) 
 Net increase in cash and cash equivalents from discontinued operations                             149                             78                          182 

The following assets and liabilities were reclassified as held for sale in
relation to the discontinued operations as at 30 June 2022:

 € million                                                                       As at 30 June 2022 
 Property, plant and equipment                                                                1,117 
 Goodwill (see note 11)                                                                          34 
 Intangible assets                                                                                9 
 Deferred tax assets                                                                              1 
 Inventories                                                                                    142 
 Trade and other receivables                                                                    115 
 Financial instruments                                                                            2 
 Cash and cash equivalents                                                                      275 
 Total assets held for sale                                                                   1,695 
 Borrowings                                                                                   (123) 
 Trade and other payables                                                                     (174) 
 Current tax liabilities                                                                        (6) 
 Provisions                                                                                    (17) 
 Financial instruments                                                                          (2) 
 Net retirement benefits liability                                                             (16) 
 Deferred tax liabilities                                                                      (53) 
 Total liabilities directly associated with assets classified as held for sale                (391) 

The cumulative foreign exchange gain recognised in other comprehensive income
in relation to the discontinued operations as at 30 June 2022 was €25
million and will be recycled through the income statement on the date of
disposal.

17   Disposal of business

On 30 June 2022, the Group sold its Personal Care Components business (PCC) to
Nitto Denko Corporation for an enterprise value of €615 million. The sale
enables the Group to simplify its portfolio and focus on its strategic
priority to grow in sustainable packaging. PCC, previously part of the
Group’s Engineered Materials operating segment, manufactured a range of
components for personal and home care products needed in everyday life such as
diapers, feminine care, adult incontinence and wipes.

 € million                                                                                       Six months ended 30 June 2022 
 Proceeds from the disposal of business per the condensed consolidated statement of cash flows                             646 
 Cash and cash equivalents disposed                                                                                         15 
 Consideration in cash                                                                                                     661 
 Carrying amount of net assets disposed                                                                                  (412) 
 Gain on reclassification of foreign currency translation reserve                                                            4 
 Related transaction costs (1)                                                                                             (7) 
 Gain on disposal of business, net of related transaction costs                                                            246 
 Tax charge                                                                                                                (5) 
 Gain on disposal of business, net of related tax                                                                          241 

Note:

1     Excludes transaction costs of €6 million recognised in the prior
year, which were not treated as a special item

The carrying amounts of assets and liabilities as at the date of sale (30 June
2022) were:

 € million                                Six months ended 30 June 2022 
 Property, plant and equipment                                      174 
 Goodwill                                                           141 
 Intangible assets                                                    2 
 Inventories                                                         58 
 Trade and other receivables                                         88 
 Cash and cash equivalents                                           15 
 Total assets                                                       478 
 Trade and other payables                                          (49) 
 Net retirement benefits liability                                  (4) 
 Deferred tax liabilities                                           (8) 
 Other liabilities                                                  (5) 
 Total liabilities                                                 (66) 
 Carrying amount of net assets disposed                             412 

The carrying amount of net assets disposed include an appropriate allocation
of the goodwill previously allocated to the Engineered Materials operating
segment between the value of the PCC business that was disposed of and the
retained functional paper and films business.

18   Consolidated cash flow analysis

(a)   Reconciliation of profit before tax from continuing operations to cash
generated from continuing operations

                                                                                                                              Restated                     Restated 
 € million                                                                Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Profit before tax from continuing operations                                                       933                            354                          712 
 Depreciation, amortisation and underlying impairments                                              194                            181                          375 
 Share-based payments                                                                                 5                              4                            9 
 Net pre-tax cash flow effect of current and prior period special items                           (257)                           (19)                         (22) 
 Net finance costs                                                                                   66                             40                           83 
 Net monetary gain arising from hyperinflationary economies                                         (2)                              —                            — 
 Net profit from joint ventures                                                                     (3)                            (3)                          (6) 
 Decrease in provisions                                                                             (1)                              —                          (7) 
 Decrease in net retirement benefits                                                                (5)                            (6)                         (15) 
 Movement in working capital                                                                      (403)                          (172)                        (195) 
 Increase in inventories                                                                          (201)                          (120)                        (232) 
 Increase in operating receivables                                                                (403)                          (237)                        (310) 
 Increase in operating payables                                                                     201                            185                          347 
 Fair value (gains)/losses on forestry assets                                                      (30)                            (8)                            7 
 Felling costs                                                                                       34                             37                           62 
 Gain on disposal of property, plant and equipment                                                    —                            (2)                            — 
 Proceeds from insurance reimbursements for property damages                                        (8)                              —                            — 
 Other adjustments                                                                                  (4)                              1                          (2) 
 Cash generated from continuing operations                                                          519                            407                        1,001 
                                                                                                                                                                    

(b)   Cash and cash equivalents

 € million                                                                              As at 30 June 2022  As at 30 June 2021  As at 31 December 2021 
 Cash and cash equivalents per condensed consolidated statement of financial position                  916                 288                     473 
 Cash and cash equivalents classified as assets held for sale (see note 16)                            275                   —                       — 
 Bank overdrafts included in short-term borrowings                                                    (46)                (51)                    (18) 
 Cash and cash equivalents per condensed consolidated statement of cash flows                        1,145                 237                     455 

The cash and cash equivalents of €916 million (as at 30 June 2021: €288
million; as at 31 December 2021: €473 million) include money market funds
of €559 million (as at 30 June 2021: €135 million; as at 31 December
2021: €340 million) valued at fair value through profit and loss, with the
remaining balance carried at amortised cost.

The cash and cash equivalents classified as assets held for sale as per table
above are held by the Group’s Russian operations. These deposits are subject
to regulatory restrictions, and therefore may not be available for general use
by the other entities within the Group.

The fair value of cash and cash equivalents carried at amortised cost
approximate their carrying values presented.

(c)   Movement in net debt

The Group’s net debt position is as follows:

 € million                                                                            Cash and  cash  equivalents  Current financial asset investments  Total assets  Debt due  within one  year  Debt due  after one  year  Debt-related derivative financial instruments  Total debt  Total net  debt 
 At 1 January 2021                                                                                            348                                    1           349                        (94)                    (2,050)                                              4     (2,140)          (1,791) 
 Cash flow                                                                                                  (110)                                    —         (110)                           —                       (63)                                              —        (63)            (173) 
 Additions to lease liabilities                                                                                 —                                    —             —                        (18)                        (5)                                              —        (23)             (23) 
 Disposal of lease liabilities                                                                                  —                                    —             —                           2                          —                                              —           2                2 
 Acquired through business combinations                                                                         —                                    —             —                        (16)                        (1)                                              —        (17)             (17) 
 Movement in unamortised loan costs                                                                             —                                    —             —                           —                        (1)                                              —         (1)              (1) 
 Net movement in fair value of derivative financial instruments                                                 —                                    —             —                           —                          —                                            (1)         (1)              (1) 
 Reclassification                                                                                               —                                    —             —                         (5)                          5                                              —           —                — 
 Currency movements                                                                                           (1)                                    —           (1)                           7                        (6)                                              —           1                — 
 At 30 June 2021                                                                                              237                                    1           238                       (124)                    (2,121)                                              3     (2,242)          (2,004) 
 Cash flow                                                                                                    218                                    —           218                          27                          4                                             12          43              261 
 Additions to lease liabilities                                                                                 —                                    —             —                           9                       (21)                                              —        (12)             (12) 
 Disposal of lease liabilities                                                                                  —                                    —             —                         (1)                          1                                              —           —                — 
 Movement in unamortised loan costs                                                                             —                                    —             —                           —                        (1)                                              —         (1)              (1) 
 Net movement in fair value of derivative financial instruments                                                 —                                    —             —                           —                          —                                           (24)        (24)             (24) 
 Reclassification                                                                                               —                                    —             —                        (34)                         34                                              —           —                — 
 Currency movements                                                                                             —                                    —             —                          17                          —                                              —          17               17 
 At 31 December 2021                                                                                          455                                    1           456                       (106)                    (2,104)                                            (9)     (2,219)          (1,763) 
 Cash flow                                                                                                    592                                    —           592                           —                         49                                             65         114              706 
 Additions to lease liabilities                                                                                 —                                    —             —                         (7)                       (13)                                              —        (20)             (20) 
 Disposal of lease liabilities                                                                                  —                                    —             —                           1                          1                                              —           2                2 
 Movement in unamortised loan costs                                                                             —                                    —             —                           —                        (1)                                              —         (1)              (1) 
 Net movement in fair value of derivative financial instruments                                                 —                                    —             —                           —                          —                                           (55)        (55)             (55) 
 Reclassification                                                                                               —                                    —             —                        (16)                         16                                              —           —                — 
 Currency movements                                                                                            98                                  (1)            97                           8                       (42)                                              —        (34)               63 
 At 30 June 2022                                                                                            1,145                                    —         1,145                       (120)                    (2,094)                                              1     (2,213)          (1,068) 
 Reclassifications to assets and liabilities classified held for sale (see note 16)                         (275)                                    —         (275)                           4                        119                                              —         123            (152) 
 Net debt of continuing operations at 30 June 2022                                                            870                                    —           870                       (116)                    (1,975)                                              1     (2,090)          (1,220) 

Bank overdrafts of €46 million (as at 30 June 2021: €51 million; as at
31 December 2021: €18 million), presented in short-term borrowings in the
condensed consolidated statement of financial position, are included in cash
and cash equivalents (see note 18b).

Cash flow of cash and cash equivalents of €592 million include cash and cash
equivalents disposed of €15 million (see note 17).

The Group expensed interest of €63 million relating to its bank overdrafts,
loans and lease liabilities (six months ended 30 June 2021 (restated): €38
million; year ended 31 December 2021 (restated): €82 million) and paid
interest of €52 million (six months ended 30 June 2021 (restated): €55
million; year ended 31 December 2021 (restated): €67 million).

19   Capital commitments

The continuing operations' capital expenditure contracted for at the end of
the reporting period but not recognised as liabilities is €460 million (as
at 31 December 2021: €274 million).

20   Contingent liabilities

Contingent liabilities comprise aggregate amounts as at 30 June 2022 of
€7 million (as at 30 June 2021: €3 million; as at 31 December 2021:
€8 million) in respect of loans and guarantees given to banks and other
third parties.

21   Fair value measurement

Assets and liabilities that are measured at fair value, or where the fair
value of financial instruments has been disclosed in the notes to the
condensed 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 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 12.

As at 30 June 2022, the fair value of level 2 derivative financial assets is
€9 million (as at 30 June 2021: €7 million; as at 31 December 2021:
€4 million), whereas the fair value of level 2 derivative financial
liabilities is €15 million (as at 30 June 2021: €7 million; as at
31 December 2021: €18 million).

Cash and cash equivalents include money market funds measured at fair value
through profit and loss, with the remaining balance carried at amortised cost.
As at 30 June 2022, the fair value of level 1 cash and cash equivalents is
€559 million (as at 30 June 2021: €135 million; as at 31 December 2021:
€340 million).

The Group did not measure any financial assets or financial liabilities at
fair value on a non-recurring basis as at 30 June 2022.

There have been no transfers of assets or liabilities between levels of the
fair value hierarchy during the period.

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 and rely as little as possible on Group
specific estimates.

Specific valuation methodologies used to value financial instruments include:
* the fair values of foreign exchange contracts are calculated as the present
value of expected future cash flows based on observable yield curves and
exchange rates; 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 consolidated financial statements are approximately equal to their
fair values.

                                                Carrying amount                                                   Fair value                            
 € million               As at 30 June 2022  As at 30 June 2021  As at 31 December 2021  As at 30 June 2022  As at 30 June 2021  As at 31 December 2021 
 Financial liabilities                                                                                                                                  
 Borrowings                           2,137               2,296                   2,228               2,008               2,450                   2,353 

22   Related party transactions

The Group and its subsidiaries, in the ordinary course of business, enter into
various sale, purchase and service transactions with associated undertakings
in which the Group has a material interest. The related party transactions
entered into by the Group have been contracted on an arms-length basis and, in
total, are not considered to be significant. The level of these transactions
is consistent with prior year.

Transactions between Mondi plc and its subsidiaries, which are related
parties, and transactions between its subsidiaries have been eliminated on
consolidation. There have been no significant changes to the nature of its
related party transactions as disclosed in note 30 of the Group’s Integrated
report and financial statements 2021.

23   Events occurring after 30 June 2022

Aside from the interim dividend declared for the six months ended
30 June 2022 (see note 10), there have been no material reportable events
since 30 June 2022.

Production statistics

                                                                                                 Restated                     Restated 
                                             Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 Continuing operations                                                                                                                 
 Containerboard                  000 tonnes                          1,209                          1,169                        2,375 
 Kraft paper                     000 tonnes                            669                            627                        1,253 
 Uncoated fine paper             000 tonnes                            487                            550                        1,068 
 Pulp                            000 tonnes                          1,816                          1,798                        3,398 
 Internal consumption            000 tonnes                          1,626                          1,562                        3,007 
 Market pulp                     000 tonnes                            190                            236                          391 
 Corrugated solutions            million m²                          1,000                            943                        2,052 
 Paper bags                   million units                          3,083                          2,971                        5,928 
 Consumer flexibles              million m²                          1,098                          1,041                        2,057 
 Functional paper and films      million m²                          1,729                          1,752                        3,383 
 Personal care components     million m (2)                            801                            914                        1,746 

Note:

The production statistics have been restated for comparability purposes to
reflect the Group's new segment structure and to exclude the Russian
discontinued operations (see note 4)

Exchange rates

                                                              Average                                                                                    Closing                                           
 versus euro          Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021  Six months ended 30 June 2022  Six months ended 30 June 2021  Year ended 31 December 2021 
 South African rand                           16.85                          17.52                        17.48                          17.01                          17.01                        18.06 
 Czech koruna                                 24.65                          25.85                        25.64                          24.74                          25.49                        24.86 
 Polish zloty                                  4.64                           4.54                         4.57                           4.69                           4.52                         4.60 
 Pounds sterling                               0.84                           0.87                         0.86                           0.86                           0.86                         0.84 
 Russian rouble                               85.55                          89.55                        87.15                          56.55                          86.77                        85.30 
 Turkish lira (1)                             16.26                           9.52                        10.51                          17.32                          10.32                        15.23 
 US dollar                                     1.09                           1.21                         1.18                           1.04                           1.19                         1.13 

Note:

1     Hyperinflation accounting was adopted in 2022 to report the Group's
operations in Turkey (see note 2)

Alternative Performance Measures (APMs)

The Group presents certain measures of financial performance, position or cash
flows in the condensed consolidated financial statements that are not defined
or specified according to IFRS in order to provide additional
performance-related measures to its stakeholders. These measures, referred to
as Alternative Performance Measures (APMs), are prepared on a consistent basis
for all periods presented in this report.

By their nature, the APMs used by the Group are not necessarily uniformly
applied by peer companies and therefore may not be comparable with similarly
defined measures and disclosures applied by other companies. Such measures
should not be viewed in isolation or as a substitute to the equivalent IFRS
measure.

Internally, the Group and its operating segments apply the same APMs in a
consistent manner in planning and reporting on performance to management, the
Executive Committee and the Board. Two of the Group’s APMs (total EBITDA and
ROCE of continuing and discontinued operations) form part of the executive
directors and senior management remuneration targets. The Group has not
adjusted its APMs for the impact of the COVID-19 pandemic.

As at 30 June 2022, the Group’s operations in Russia are presented as held
for sale and classified as discontinued operations for the period then ended.
For comparability purposes, the APMs based on amounts recognised in the
condensed consolidated statement of financial position have been adjusted for
the Russian assets and liabilities as described below. Note, no restatement of
the IFRS condensed consolidated statement of financial position has been made
for such items. APMs measuring the profitability of the Group are presented
for continuing operations (i.e. excluding the results for the Russian
discontinued operations) and comparatives are presented on the same basis,
consistent with the presentation of the IFRS condensed consolidated income
statement. Where these changes have impacted the APMs for comparative periods
as presented previously, these have been described as restated.

The most significant APMs used by the Group are described below, together with
a reconciliation to the equivalent IFRS measure. The reconciliations are based
on Group figures. The reporting segment equivalent APMs are measured in a
consistent manner.

 APM description and purpose                                                                                                                                    Financial statement reference            Closest IFRS equivalent measure                                             
 Special items                                                                                                                                                                                                                                                                       
 Special items are generally material, non-recurring items that exceed €10 million. The Audit Committee regularly assesses the                                  Note 5                                   None                                                                        
 monetary threshold of €10 million and considers the threshold in the context of both the Group as a whole and individual                                                                                                                                                            
 operating segment performance.  The Group separately discloses special items on the face of the condensed consolidated income                                                                                                                                                       
 statement to assist its stakeholders in understanding the underlying financial performance achieved by the Group on a basis that                                                                                                                                                     
 is comparable from year to year.  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 quantitative reporting threshold.                                                                                                                                                                       
                                                                                                                                                                                                                                                                                     
 Underlying EBITDA                                                                                                                                                                                                                                                                   
 Operating profit before special items, depreciation, amortisation and impairments not recorded as special items provides a                                     Condensed consolidated income statement  Operating profit                                                            
 measure of the cash generating ability of the Group's continuing operations that is comparable from year to year.                                                                                                                                                                   
                                                                                                                                                                                                                                                                                     
 Underlying EBITDA margin from continuing operations                                                                                                                                                                                                                                 
 Underlying EBITDA expressed as a percentage of Group revenue (segment revenue for operating segments) provides a measure of the                                                                         None                                                                        
 cash generating ability relative to revenue.                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Underlying EBITDA (see condensed consolidated income statement)                                                                                            942                                      566                                                                       1,157 
 Group revenue from continuing operations (see condensed consolidated income statement)                                                                   4,505                                    3,283                                                                       6,974 
 Underlying EBITDA margin from continuing operations (%)                                                                                                   20.9                                     17.2                                                                        16.6 
                                                                                                                                                                                                                                                                                     
 Total EBITDA (prior to special items)                                                                                                                                                                                                                                               
 Operating profit before special items, depreciation, amortisation and impairments not recorded as special items provides a                                                                                                                                                          
 measure of the cash generating ability of the business that is comparable from year to year.  Total EBITDA from continuing and                                                                                                                                                      
 discontinued operations prior to special items is calculated to show as if the EBITDA of the Russian operations was not                                                                                                                                                             
 separately disclosed as arising from discontinued operations.                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 EBITDA from continuing operations                                                                                                                        1,188                                      569                                                                       1,160 
 EBITDA from discontinued operations                                                                                                                        228                                      143                                                                         346 
 Special items                                                                                                                                            (246)                                      (3)                                                                         (3) 
 Total EBITDA (prior to special items)                                                                                                                    1,170                                      709                                                                       1,503 
                                                                                                                                                                                                                                                                                     
 Underlying operating profit                                                                                                                                                                                                                                                         
 Operating profit from continuing operations before special items provides a measure of operating performance that is comparable                                Condensed consolidated income statement  Operating profit                                                            
 from year to year.                                                                                                                                                                                                                                                                  
 Underlying operating profit margin from continuing operations                                                                                                                                                                                                                       
 Underlying operating profit expressed as a percentage of Group revenue (segment revenue for operating segments) provides a                                                                              None                                                                        
 measure of the profitability of the operations relative to revenue.                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Underlying operating profit (see condensed consolidated income statement)                                                                                  748                                      385                                                                         782 
 Group revenue from continuing operations (see condensed consolidated income statement)                                                                   4,505                                    3,283                                                                       6,974 
 Underlying operating profit margin from continuing operations (%)                                                                                         16.6                                     11.7                                                                        11.2 
                                                                                                                                                                                                                                                                                     
 Net interest expense                                                                                                                                                                                                                                                                
 Net interest expense comprises interest expense on bank overdrafts, loans and lease liabilities net of investment income.  Net                                                                          None                                                                        
 interest expense provides an absolute measure of the net cost of borrowings.                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million                                                                                                                        Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Investment income (see note 7)                                                                                                                               2                                        1                                                                           5 
 Interest on bank overdrafts and loans (see note 7)                                                                                                        (59)                                     (35)                                                                        (75) 
 Interest on lease liabilities (see note 7)                                                                                                                 (4)                                      (3)                                                                         (7) 
 Net interest expense                                                                                                                                      (61)                                     (37)                                                                        (77) 
                                                                                                                                                                                                                                                                                     
 Effective interest rate                                                                                                                                                                                                                                                             
 Trailing 12-month net interest expense expressed as a percentage of trailing 12-month average net debt over the period.                                                                                 None                                                                        
 Effective interest rate provides a measure of the net cost of borrowings.                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Trailing 12-month net interest expense (see above)                                                                                                         101                                       74                                                                          77 
 Trailing 12-month average net debt of continuing operations                                                                                              1,755                                    1,830                                                                       1,804 
 Effective interest rate (%)                                                                                                                                5.8                                      4.0                                                                         4.3 
                                                                                                                                                                                                                                                                                     
 Underlying profit before tax                                                                                                                                                                                                                                                        
 Profit before tax and special items for continuing operations. Underlying profit before tax provides a measure of the Group’s                                  Condensed consolidated income statement  Profit before tax                                                           
 profitability before tax that is comparable from year to year.                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                     
 Effective tax rate                                                                                                                                                                                                                                                                  
 Underlying tax charge expressed as a percentage of underlying profit before tax.  A measure of the Group’s tax charge relative                                                                          None                                                                        
 to its profit before tax expressed on an underlying basis.                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Tax charge before special items (see note 8)                                                                                                               151                                       76                                                                         154 
 Underlying profit before tax (see condensed consolidated income statement)                                                                                 687                                      348                                                                         705 
 Effective tax rate (%)                                                                                                                                      22                                       22                                                                          22 
                                                                                                                                                                                                                                                                                     
 Underlying earnings (and per share measure)                                                                                                                                                                                                                                         
 Net profit after tax attributable to shareholders from continuing operations, before special items.                                                            Note 9                                   Profit for the period attributable to shareholders (and per share measure)  
                                                                                                                                                                                                                                                                                     
 Total earnings (prior to special items) (and per share measure)                                                                                                                                                                                                                     
 Net profit after tax attributable to shareholders, before special items, from continuing operations and discontinued operations.                                Note 9                                   Profit for the period attributable to shareholders (and per share measure)  
  Total earnings (and the related per share measure based on the basic, weighted average number of ordinary shares outstanding),                                                                                                                                                     
 provides a measure of the Group’s earnings.                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                     
 Headline earnings (and per share measure)                                                                                                                                                                                                                                           
 The presentation of headline earnings (and the related per share measure based on the basic, weighted average number of ordinary                                Note 9                                   Profit for the period attributable to shareholders (and per share measure)  
 shares outstanding) is mandated under the Listings Requirements of the JSE Limited and is calculated in accordance with Circular                                                                                                                                                     
 1/2021, ‘Headline Earnings’, as issued by the South African Institute of Chartered Accountants.                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
 Dividend cover                                                                                                                                                                                                                                                                      
 Basic underlying EPS from continuing operations divided by total ordinary dividend per share paid and proposed provides a                                      None                                     None                                                                        
 measure of the Group’s earnings relative to ordinary dividend payments.                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                     
 Capital employed (and related trailing 12-month average capital employed)                                                                                                                                                                                                           
 Capital employed comprises total equity and net debt. Trailing 12-month average capital employed is the average monthly capital                                Note 4                                   Total equity                                                                
 employed over the last 12 months adjusted for spend on major capital expenditure projects which are not yet in production.                                                                                                                                                          
 These measures provide the level of invested capital in the business. Trailing 12-month average capital employed is used in the                                                                                                                                                     
 calculation of return on capital employed.                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                     
 Return on capital employed (ROCE)                                                                                                                                                                                                                                                   
 Trailing 12-month underlying operating profit, including share of associate's and joint ventures' net profit/(loss), divided by                                                                         None                                                                        
 trailing 12-month average capital employed. ROCE provides a measure of the efficient and effective use of capital in the                                                                                                                                                            
 business and is presented on the basis of continuing operations for comparability.                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Trailing 12-month underlying operating profit (see condensed consolidated income statement)                                                              1,145                                      693                                                                         782 
 Trailing 12-month underlying net profit from joint ventures (see condensed consolidated income statement)                                                    6                                        1                                                                           6 
 Trailing 12-month underlying profit from operations and joint ventures                                                                                   1,151                                      694                                                                         788 
 Trailing 12-month average capital employed of continuing operations (see note 4)                                                                         5,989                                    5,437                                                                       5,672 
 ROCE (%) from continuing operations                                                                                                                       19.2                                     12.8                                                                        13.9 
                                                                                                                                                                                                                                                                                     
 The ROCE from continuing and discontinued operations is calculated to show as if the net profit of the Russian operations was                                                                                                                                                       
 not separately disclosed as arising from discontinued operations.                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Trailing 12-month underlying profit from operations and joint ventures                                                                                   1,151                                      694                                                                         788 
 Trailing 12-month operating profit of discontinued operations (see note 16)                                                                                369                                      205                                                                         282 
 Trailing 12-month profit from operations and joint ventures of the Group before special items (incl. discontinued operations)                            1,520                                      899                                                                       1,070 
 Trailing 12-month average capital employed of the Group (incl. discontinued operations) (see note 4)                                                     6,762                                    6,077                                                                       6,349 
 ROCE (%) from continuing and discontinued operations                                                                                                      22.5                                     14.8                                                                        16.9 
                                                                                                                                                                                                                                                                                     
 Net debt (and related trailing 12-month average net debt)                                                                                                                                                                                                                           
 A measure comprising short, medium, and long-term interest-bearing borrowings and the fair value of debt-related derivatives                                   Note 18c                                 None                                                                        
 less cash and cash equivalents, net of overdrafts, and current financial asset investments. Trailing 12-month average net debt                                                                                                                                                      
 is the average monthly net debt over the last 12 months. Net debt of continuing operations and trailing 12-month average net                                                                                                                                                        
 debt has been adjusted for net debt of the discontinued operations for comparability.  Net debt provides a measure of the                                                                                                                                                           
 Group’s net indebtedness or overall leverage.                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Net debt (see note 18c)                                                                                                                                  1,068                                    2,004                                                                       1,763 
 Net (cash)/debt of discontinued operations                                                                                                               (152)                                       78                                                                          74 
 Net debt of continuing operations                                                                                                                        1,220                                    1,926                                                                       1,689 
                                                                                                                                                                                                                                                                                     
 Net debt to underlying EBITDA                                                                                                                                                                                                                                                       
 Net debt of continuing operations divided by trailing 12-month underlying EBITDA. A measure of the Group’s net indebtedness                                                                             None                                                                        
 relative to its cash-generating ability.                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Net debt of continuing operations                                                                                                                        1,220                                    1,926                                                                       1,689 
 Trailing 12-month underlying EBITDA (see condensed consolidated income statement)                                                                        1,533                                    1,058                                                                       1,157 
 Net debt to underlying EBITDA (times)                                                                                                                      0.8                                      1.8                                                                         1.5 
                                                                                                                                                                                                                                                                                     
 Operating segment assets and operating segment net assets                                                                                                                                                                                                                           
 Operating segment assets and operating segment net assets comprise total assets (excluding financial instruments) and capital                                  Note 4                                   Total assets Net assets                                                     
 employed respectively but exclude assets and liabilities held for sale, investments in associates and joint ventures, deferred                                                                                                                                                      
 tax assets and liabilities and other non-operating assets and liabilities.  Operating segment assets and operating segment net                                                                                                                                                      
 assets provide a measure of the assets and net assets required in the daily operation of the business.                                                                                                                                                                              
                                                                                                                                                                                                                                                                                     
 Working capital as a percentage of revenue                                                                                                                                                                                                                                          
 Working capital, defined as the sum of trade and other receivables and inventories less trade and other payables, expressed as a                                                                         None                                                                        
 percentage of annualised Group revenue, which is calculated based on an extrapolation of average monthly year-to-date revenue. A                                                                                                                                                     
 measure of the Group’s effective use of working capital relative to revenue. Working capital has been adjusted for working                                                                                                                                                          
 capital of the discontinued operations in comparative periods for comparability purposes.                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Inventories (see condensed consolidated statement of financial position)                                                                                 1,191                                    1,007                                                                       1,099 
 Trade and other receivables (see condensed consolidated statement of financial position)                                                                 1,553                                    1,322                                                                       1,333 
 Trade and other payables (see condensed consolidated statement of financial position)                                                                  (1,434)                                  (1,313)                                                                     (1,444) 
 Working capital                                                                                                                                          1,310                                    1,016                                                                         988 
 Working capital of discontinued operations                                                                                                                   —                                       31                                                                          44 
 Working capital of continuing operations                                                                                                                 1,310                                      985                                                                         944 
 Annualised Group revenue (see condensed consolidated income statement)                                                                                   9,010                                    6,566                                                                       6,974 
 Working capital as a percentage of revenue                                                                                                                14.5                                     15.0                                                                        13.5 
                                                                                                                                                                                                                                                                                     
 Gearing                                                                                                                                                                                                                                                                             
 Net debt expressed as a percentage of capital employed provides a measure of the financial leverage of the Group. Net debt and                                                                          None                                                                        
 capital employed is adjusted for the discontinued operations for comparability.                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million, unless otherwise stated                                                                                               Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Net debt of continuing operations                                                                                                                        1,220                                    1,926                                                                       1,689 
 Capital employed of continuing operations (see note 4)                                                                                                   6,111                                    5,934                                                                       5,892 
 Gearing (%)                                                                                                                                               20.0                                     32.5                                                                        28.7 
                                                                                                                                                                                                                                                                                     
 Cash flow generation                                                                                                                                                                                                                                                                
 A measure of the Group’s cash generation before considering deployment of cash towards investment in property, plant and                                                                                Net increase/(decrease) in cash and cash equivalents                        
 equipment (‘capex’ or ‘capital expenditure’), acquisitions and disposals of businesses, investment in associates and joint                                                                                                                                                          
 ventures, payment of dividends to shareholders, acquisition or sale of non-controlling interests in a subsidiary and proceeds                                                                                                                                                       
 from and repayment of borrowings. Cash flow generation is a measure of the Group’s ability to generate cash through-the-cycle                                                                                                                                                       
 before considering deployment of such cash.  The cash flow generation is adjusted for the cash flows from the discontinued                                                                                                                                                          
 operations for comparability and has been re-presented for the effect from non-controlling interests bought out of €3 million                                                                                                                                                       
 for the year ended 31 December 2021.                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                     
 APM calculation:                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                Restated                                                                    Restated 
 € million                                                                                                                        Six months ended 30 June 2022            Six months ended 30 June 2021                                                 Year ended 31 December 2021 
 Net increase/(decrease) in cash and cash equivalents                                                                                                       592                                    (110)                                                                         108 
 Net increase in cash and cash equivalents from discontinued operations                                                                                   (149)                                     (78)                                                                       (182) 
 Investment in property, plant and equipment                                                                                                                218                                      239                                                                         481 
 Acquisition of businesses, net of cash and cash equivalents                                                                                                  —                                       63                                                                          63 
 Proceeds from the disposal of business, net of cash and cash equivalents                                                                                 (646)                                        —                                                                           — 
 Investment in joint ventures                                                                                                                                 —                                        1                                                                           1 
 Dividends paid to shareholders                                                                                                                             218                                      201                                                                         298 
 Non-controlling interests bought out                                                                                                                         —                                        —                                                                           3 
 Net repayment of/(proceeds from) borrowings                                                                                                                 48                                     (64)                                                                        (34) 
 Proceeds from other medium and long-term borrowings                                                                                                          —                                     (63)                                                                        (59) 
 Repayment of other medium and long-term borrowings                                                                                                          49                                        —                                                                           — 
 Net (proceeds from)/repayment of short-term borrowings                                                                                                    (12)                                     (11)                                                                           4 
 Repayment of lease liabilities                                                                                                                              11                                       10                                                                          21 
                                                                                                                                                                                                                                                                                     
 Cash flow generation from continuing operations                                                                                                            281                                      252                                                                         738 

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 the
Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation or
applicable law or any regulatory body applicable to Mondi, including the JSE
Limited, the FCA 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

Mondi is a global leader in packaging and paper, contributing to a better
world by making innovative solutions that are sustainable by design. Our
business is integrated across the value chain – from managing forests and
producing pulp, paper and films, to developing and manufacturing sustainable
consumer and industrial packaging solutions using paper where possible,
plastic when useful. Sustainability is at the centre of our strategy, with our
ambitious commitments to 2030 focused on circular driven solutions, created by
empowered people, taking action on climate.

In 2021, Mondi had revenues of €7.0 billion and underlying EBITDA of €1.2
billion from continuing operations, and employed 21,000 people worldwide.
Mondi has a premium listing on the London Stock Exchange (MNDI), where the
Group is a FTSE100 constituent, and also has a secondary listing on the JSE
Limited (MNP).

mondigroup.com

Sponsor in South Africa: Merrill Lynch South Africa Proprietary Limited t/a
BofA Securities.



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