Mondi South Africa. Mondi South Africa. Chairman & CEO: Andrew Thompson. 18 June 2003

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1 Mondi Chairman & CEO: Andrew Thompson 18 June 2003

2 Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth

3 MONDI SA S CURRENT POSITION Businesses managed in three integrated value chains serving export and domestic markets - Eucalyptus fibre and woodfree papers - Packaging - Mechanical papers

4 Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth

5 MONDI SA S COMPETITIVE ADVANTAGES Established sustainable low cost pulpwood plantations Economies of scale and sharp productivity focus $2 million per year forestry research, pursuing higher fibre yield Logistics planning

6 MONDI SA S COMPETITIVE ADVANTAGES World class facilities at Richards Bay and Durban Scale, energy costs, established skilled workforce Provide platform for uncoated woodfree paper business

7 MONDI SA S COMPETITIVE ADVANTAGES Integrated corrugated packaging Leader in SA corrugated market Whitetop kraftliner from Richards Bay globally competitive in cost and quality

8 Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth

9 RELEVANT MARKETS FOR MONDI SA BEKP Uncoated woodfree papers Europe and SA Whitetop kraftliner in Europe Domestic cartonboard, corrugated packaging and publications papers

10 MARKET PULP DEMAND Million tonnes 50 Projected Growth : 1% p.a Projected BEKP Growth : 4% p.a F 2003F 2004F 2005F 2006F BEKP OTHER BHKP BSKP OTHER Source: Hawkins Wright

11 BKP PULP COST CURVE Q1/2003 Capital charges Delivery to Rotterdam Other manuf. costs Personnel Energy Chemicals Wood Source: JP Mondi Riau Andalan Arauco Richards Bay Monsteras Alizay Enocell Kotlas Lavos Saint-Gaudens Celbi Kemi Pietarsaari Musi Cenibra Jacarei Bahia Sul Aracruz

12 BEKP SUPPLIERS Phoenix 3% Votarantim 5% Riocell 4% Jarcel 5% AA 3% Mondi 4% Morocco 2% Other 5% Nordic 2% ENCE 13% Celbi 4% CMPC 3% Cenibra 12% Bahia Sul 6% Arauco 2% Aracruz 18% Portucel 7% Soporcel 2% BEKP Capacity : 7140mt Source: Hawkins Wright Nov 2002

13 SA UNCOATED WOODFREE MARKET SA market some tonnes Cut sheet market tonnes Volume growth has been 8% per year

14 MONDI IN THE SA WOODFREE PAPER MARKET Largest market share Brand leader in Rotatrim Technologically superior Own distribution via Paperlink

15 EUROPEAN WHITETOP KRAFTLINER DEMAND Mondi Switzerland Benelux UK Spain France Italy Germany TONNES Total market tonnes Source: ECO Report January 2003

16 WHITETOP LINER COST CURVE Svetogorsk PM1 Steti PM1 Syktyvkar PM2 Swiecie PM2 Kemi PM1 Munksund PM1 West Point PM3 Tugela PM2 Cell du Pin PM5 La Tuque PM3 Moss PM4 Ngodwana PM1 USD/t Mondi Capital charges Delivery to Barcelona Other manuf. costs Personnel Energy Chemicals Purchased fibre Wood Source: JP Richards Bay PM2, model Richards Bay PM2, actual

17 MONDI SALES OF BAYWHITE IN WESTERN EUROPE Up 13% in 2002 to tonnes Market share reached 17% Spain the largest market with tons of sales Good growth also in Italy, Germany, UK and Benelux

18 SA CORRUGATED MARKET Sheet Board 11% Other non Food Stuffs 9% Clothing & Textiles 6% Agricultural 35% Cosmetics 8% Processed Food & Bev 21% Fresh Chicken/Meat/Fish 10% Total market tonnes Industrial packaging growth has slowed to less than GDP Fruit exports have provided a boost

19 SA CORRUGATED MARKET IN % 7.8% 7.7% 31.7% Mondipak Nampak New Era 3.8% Sun Homes 5.2% Corruseal APL 8.2% Houers 29.8% Independents Total Market tonnes

20 SA CCM CAPACITY VS DEMAND Virgin Liner Testliners White Top Fluting Mondi Sappi Nampak Swazi / Other Unicel Demand

21 Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth

22 MONDI SA CAPACITIES BEKP UKP WTKLB Brown liner Fluting tonnes tonnes tonnes tonnes tonnes Corrugated Board 400 million m 2 Woodfree papers Cut Paper Converting tonnes tonnes

23 Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth

24 MONDI SA OPERATING PROFIT TREND $m Graphic paper Packaging Pulp Other

25 MONDI SA FIVE YEAR EBIT MARGIN TREND Operating Earnings - US$m Turnover - US$m Operating Profit Turnover % EBIT Margin 200 4

26 COST REDUCTIONS US$m Total

27 Current Position Competitive advantages Relevant markets Capacities Financial Performance Key uncertainties and future growth

28 KEYS FOR THE FUTURE n inflation - currently 9% - target 6% R/$ exchange rate - 60% of revenues; 80% of costs in Rand SA economic performance GDP growth projected at 2.0%

29 KEYS FOR THE FUTURE Export projects - RB720 - woodfree paper - packaging papers Empowerment Further efficiency gains

30 SUMMARY Highly competitive, sustainable FSC plantation base Low cost BEKP and uncoated woodfree paper production Leading global cost position for whitetop liner Substantial local and export market positions Record on expansionary capex and efficiency gains