Mondi (MNDI) Investor Update summary

Strategic positioning and market leadership

• Holds leading global positions in flexible, industrial, and consumer packaging, including #1 global sack kraft paper and paper bags producer, and #1 speciality kraft paper producer in Europe, with unique integration across the value chain and a strong focus on customer-led innovation.

• Operates a diversified portfolio with strong exposure to both developed and emerging markets, serving a wide range of industrial and consumer end-uses.

• Maintains a well-invested asset base, with €3.4 billion capital employed in flexible packaging and recent expansions in key facilities, including investments in new paper machines, coating technologies, and greenfield plants.

• Synergies across business units, including shared procurement, supply chain optimization, and talent development, enhance efficiency and innovation.

• R&D and innovation centers enable rapid co-development with customers, reducing time to market for new sustainable products.

Operational excellence and integration

• Achieves operational and commercial synergies through economies of scale, best practice sharing, and supply chain optimization across 14 mills.

• Over 80% of sack kraft paper capacity is in the lowest industry cost quartiles, supported by high self-sufficiency in electricity from biomass.

• Continuous improvement initiatives have led to a 1.9% annual productivity increase since 2015, with plant rationalization and expansion in growth markets.

Growth drivers and market trends

• Structural growth in both industrial and consumer packaging is driven by sustainability, e-commerce, and changing consumer preferences, with paperization and the shift from plastic to paper as major trends.

• Automation in e-commerce packaging and regulatory changes (e.g., PPWR) are accelerating demand for innovative solutions.

• The company is recognized as a one-stop shop for e-commerce packaging, offering a broad multi-material portfolio and trusted advisory services.

• Investments in specialty kraft paper and coatings position the business to capture growth from new applications and sustainability requirements.

• Recent investments include new paper bag plants in Morocco and Colombia, and capacity expansions at Štětí and Hinton mills.