Mondi Group
Integrated report and financial statements 2024
Sustainable
by Design
Mondi’s Integrated report
and financial statements 2024
is our primary report to
shareholders, providing an
overview of the Group's
performance for the year
ended 31 December 2024.
Alternative Performance Measures
The Group presents certain measures of financial
performance, position or cash flows in this report that
are not defined or specified according to International
Financial Reporting Standards (IFRS) and UK-adopted
International Accounting Standards. Refer to pages
216-218 for further details.
We report against the Sustainability Accounting
Standards Board (SASB): Containers & Packaging
Industry Standard. Relevant disclosures are
highlighted by the icon above with further disclosures
made in our Sustainable Development report and GRI
& SASB index as part of our 2024 suite of reports.
Strategic report
Welcome
i
The Mondi Way
1
Letter from the Chair
2
Our businesses
4
Where we operate
5
Market context
6
Our business model
8
Our strategy
14
Chief Executive Officer’s
strategic review
15
Reasons to invest
21
Key performance indicators
22
Business unit trading review
24
Financial review
26
Mondi Action Plan 2030
30
Stakeholder engagement
and Section 172
50
Task Force on Climate-related
Financial Disclosures (TCFD)
52
Principal risks
60
Viability statement
70
The Strategic report was approved by the
Board on 19 February 2025 and is signed
on its behalf by:
Andrew King
Mike Powell
Group CEO
Group CFO
Governance
Chair’s introduction
72
Board of directors
75
Executive Committee
and Company Secretary
78
Corporate governance report
80
Nominations Committee
94
Audit Committee
99
Sustainable Development
Committee
108
Remuneration report
111
Other statutory information
136
Financial statements
Financial statements introduction
138
Directors’ responsibility statement
139
Independent auditors’ report
140
Financial statements
150
Other information
Production statistics
and exchange rates
213
Group financial record
214
Alternative Performance Measures
216
Additional information
for shareholders
219
Shareholder information
221
About this report
225
Welcome
Integrated report 2024
Our reporting suite
Mondi's complete 2024 Integrated and
Sustainable Development reporting suite
will be made available on our website
from publication date
www.mondigroup.com
Non-financial and sustainability information statement
In accordance with Sections 414CA and 414CB of the Companies Act 2006
(as amended by The Companies (Strategic Report) (Climate-related Financial
Disclosure) Regulations 2022), the required non-financial and sustainability information
disclosures can be found integrated throughout the Strategic report. The table below
sets out where our stakeholders can find more information on these key areas of
disclosure. In addition, our policies, which are listed on page 108 of this report, can
be found on our website (www.mondigroup.com/sustainability/approach/governance).
Our MAP2030 section (found on pages 30-49) outlines our performance against
our policies and sustainability targets.
Reporting requirement
Further information
Business model
Page 8-13
Climate-related disclosures
Page 41-45, 52-59
Information relating to environmental matters
Page 41-46, 48
Information relating to employees
Page 37-40
Information relating to social matters
Page 47, 49
Information relating to respect for human rights
Page 47-49
Information relating to anti-corruption and anti-bribery matters
Page 49
Principal risks
Page 60-69
Non-financial key performance indicators
Page 23, 32, 46-47
Mondi Group
Integrated report and financial statements 2024
1
The Mondi Way
Purpose
SUSTAINABLE
by design
We contribute to a better
world by making innovative,
sustainable packaging and
paper solutions
Strategy
Drive value accretive
growth, sustainably
Drive performance
along the value chain
Invest in quality assets
Empower our people
Partner with customers
Our strategy
Page 14-20
Culture
Grow. create.
Inspire. Together.
Performance
We are passionate,
entrepreneurial and empowered
Care
We are respectful and look
out for each other
Integrity
We are honest, transparent
and inclusive
MAP2030
Page 30-49
The Mondi Way connects our
22,000 people through a shared
sense of purpose. We nurture
an environment in which high
performance, collaboration and
innovation thrive, empowering
our teams to drive progress
against our strategic priorities.
Mondi demonstrated resilience
throughout 2024 in difficult trading
conditions – highlighting the strength
of our cost-competitive, strategically
located integrated assets and our great
people.
Philip Yea
Chair
Underlying EBITDA
€1,049 million
Cash generated from operations
€970 million
Ordinary dividend per share
70.0 euro cents
2024 was marked by stubbornly
challenging economic conditions,
unresolved political uncertainties and
persistent geopolitical tensions. Against
this background, Mondi has focused on its
customers, people and communities, and
has been able to perform resiliently despite
the somewhat soft demand and challenging
pricing environment. Underlying EBITDA
at €1,049 million was 13% below last year.
Mondi remains committed to creating
value for stakeholders through the
production of high-quality packaging
and paper solutions that are sustainable
by design. Our strategy is unchanged,
and supported by our strong balance
sheet and low-cost position. The Group
was able to substantially complete the
more significant elements of our multi-year
capital expenditure programme while
continuing to support our customers on
their journeys towards sustainable solutions.
Maintaining our competitive cost position
remains a key priority and in this and
other areas we are grateful for the support
of our people as we navigate these
difficult conditions.
Investing in quality assets
At the heart of Mondi’s disciplined
approach to capital management are
two key objectives. The first is to enable
investment through cycle where we see
the opportunity for attractive returns; the
second is to be able to support sustainable
dividends. In 2024, Mondi generated
€970 million in cash from operations,
maintaining a strong financial position,
as demonstrated by a leverage ratio of
1.7 times net debt to underlying EBITDA.
The Board has recommended a total
ordinary dividend of 70.0 euro cents per
share for 2024, reinforcing our confidence
in the Group’s future.
Mondi is nearing the end of its significant
three-year expansion programme across
both corrugated and flexible packaging
mills and plants, where we are investing
€1.2 billion in total to expand capacity,
increase cost competitiveness and
improve our environmental footprint.
Five of these projects became operational
in 2024, with Štětí (Czech Republic)
commencing operations in December
2024. Duino (Italy) is on track to start
up in the next few months as planned.
We continue to see further opportunities
for organic growth investment across
our packaging portfolio.
A continuing objective within our
Corrugated Packaging business has been
to grow the geographical footprint of
our converting operations to support our
customers while delivering integration
benefits with our mill operations. Early
in 2024 we explored a combination with
DS Smith which would have greatly
accelerated this element of our strategy.
However, value creation is vital and
following a period of due diligence your
Board decided that it would not be in
our own shareholders’ interests to
pursue this opportunity.
Pleasingly, in October we reached an
agreement to acquire the Western
Europe Packaging Assets of Schumacher
Packaging, for €634 million, adding
substantial corrugated converting capacity
and broadening our geographic coverage
in Northern Europe, notably in Germany.
This investment is expected to complete
in the first half of 2025.
Mondi Group
Integrated report and financial statements 2024
2
Letter from the Chair
Delivering value accretive growth
Leadership in sustainability
Mondi remains steadfast in its commitment
to reducing its environmental impact while
supporting customers and stakeholders
to achieve their sustainability objectives.
This element of our strategy, set out in our
MAP2030 framework, has explicit targets
across three core areas, being the delivery
of circular driven solutions, created by
empowered people and taking action on
climate. Key elements of our progress are
to be found elsewhere in this report.
People and culture
Our people are at the heart of Mondi’s
business success and fundamental to our
growth plans. Our focus is on empowering
leaders to attract, develop and retain talent
to drive performance and foster innovation
by creating an inspiring, inclusive and
safe workplace.
Your Board attaches great importance
to assessing the company’s culture and
wherever possible we meet with our
leaders and their teams to assess progress.
We were able to visit a number of Mondi
operations in 2024 to listen to colleague
feedback about safety and health, and their
working environment.
Ensuring the safety of colleagues is always
our top priority, and we are proud to be
a leader in our industry. All our major
expansion projects and maintenance
shuts have been completed with no major
incidents, which is a great accomplishment
considering there can be thousands of
colleagues and contractors on site each
day, many doing non-routine tasks. I am
however very sad to report that during the
year one of our colleagues tragically lost his
life at our Merebank mill in South Africa, a
loss that has deeply affected the broader
Mondi community. The Group is resolute
in its commitment to investigating every
incident thoroughly to ensure that everyone
returns home safely at the end of each day.
Board developments
Effective boards are built on finding the
right mix of skills, experience and judgement.
In October, after a comprehensive search,
Sucheta Govil was appointed to the Board
as an independent non-executive director.
Sucheta has extensive experience in
commercial and operational leadership
roles, including within multinational
industrial businesses.
In September, Dominique Reiniche
retired after completing her nine-year
tenure on Mondi’s Board. I would like
to record our thanks to Dominique for
her significant contribution, in particular
as Chair of the Sustainable Development
Committee and, more recently, as
Senior Independent Director.
Looking ahead
As we move into 2025, geopolitical
uncertainties remain, and there are no
obvious signs of a significant improvement
in economic conditions. Mondi’s core
strengths are our portfolio of sustainable
packaging and paper products, our scale,
our quality asset base and our people and
culture. I am confident that these are key
differentiators and will support the Group
in delivering long-term growth, strong
cash generation, attractive returns and
sustainable value for shareholders.
Philip Yea
Chair
Mondi Group
Integrated report and financial statements 2024
3
Sustainability performance at a glance
87%
0.68
31%
of our packaging and paper revenue is
from products that are reusable,
recyclable or compostable
Total Recordable Case Rate
safety performance
reduction in Scope 1 and 2 GHG
emissions compared with our 2019
baseline
MAP2030
Page 30-49
Corrugated Packaging
Flexible Packaging
Uncoated Fine Paper
Mondi is a leading producer of
corrugated packaging with a cost-
competitive asset base and strong
customer offering focused on
quality, reliability and service. We
are the leading virgin
containerboard producer in Europe
and the largest containerboard
producer in emerging Europe. Our
virgin containerboard is a high-
quality product with excellent
properties for specialised end-use
applications, ideal to meet our
customers' needs around the globe.
We are also a leading corrugated
solutions producer across central
and emerging Europe. We leverage
our integrated production network
and partner with our customers to
create fully recyclable corrugated
boxes and packaging.
We are a global flexible packaging
producer with a unique portfolio of
solutions. We primarily produce kraft
paper which is converted into paper
bags or used for specialist consumer
or industrial applications. As the
global leader in kraft paper and
paper bag production, and together
with our high level of integration, our
customers come to us for scale,
security of supply and global reach.
We are also a leading producer of
high-quality, flexible plastic-based
packaging for consumer end-uses in
Europe. Furthermore, we have broad
coating capabilities which add
barriers to create functional paper
solutions that protect the goods
inside while continuing to be
recyclable in paper waste streams.
Our Uncoated Fine Paper business
produces a wide range of home,
office, converting and professional
printing papers at our mills in central
Europe and South Africa. We have
strong customer relationships,
leveraging our leading positions in
these regions. We also produce and
sell market pulp to customers
around the world.
Leading positions
Leading positions
Leading positions
#1
#1
#2
virgin containerboard producer
in Europe
kraft paper producer globally
uncoated fine paper producer
in Europe
#1
#1
#1
containerboard producer
in emerging Europe
paper bags producer globally
uncoated fine paper producer
in South Africa
#1
#3
corrugated solutions producer
in emerging Europe
consumer flexible packaging
producer in Europe
End-uses
End-uses
End-uses
Corrugated Packaging
Page 11 and 24
Flexible Packaging
Page 12 and 24
Uncoated Fine Paper
Page 13 and 25
Mondi Group
Integrated report and financial statements 2024
4
Our businesses
Packaging and paper that is sustainable by design
Consumer and retail
Industrial and agriculture
Consumer and retail
Building and construction
Industrial and agriculture
Uncoated fine paper
Market pulp
Mondi employs 22,000 people in more than 30 countries.
We operate around 100 production sites, mostly located
across Europe, North America and Africa.
Corrugated Packaging
6
18
mills
converting plants
Flexible Packaging
5
65
mills
converting plants
Uncoated Fine Paper
5
mills
Mondi Group
Integrated report and financial statements 2024
5
Where we operate
A global network delivering for our customers
Corrugated Packaging
Mill
Flexible Packaging
Converting plant
Uncoated Fine Paper
Head offices
Production sites as at 31 December 2024.
The Ružomberok mill (Slovakia) and Richards
Bay mill (South Africa) are mixed-use mills,
producing products for more than one business
unit. These mills are therefore presented
in triplicate and duplicate respectively.
We offer our customers a unique and broad
range of sustainable packaging and paper
solutions across several end-markets.
Markets served based on Group revenue*
* Approximate.
Consumer and retail
Industrial and agriculture
Product examples
– Food and pet food packaging
– eCommerce packaging
– Paper for grocery and fashion bags
Relevant business units
– Corrugated Packaging
– Flexible Packaging
Product examples
– Dairy powder, feed and seed packaging
– Automotive logistics packaging
– Paper-based pallet wrapping
Relevant business units
– Corrugated Packaging
– Flexible Packaging
Building and construction
Paper for printing
Product examples
– Cement bags
– Other paper-based building material bags
Relevant business units
– Flexible Packaging
Product examples
– Office paper
– Professional printing paper
Relevant business units
– Uncoated Fine Paper
Mondi Group
Integrated report and financial statements 2024
6
Market context
Broad range of sustainable packaging and paper solutions
Consumer and retail
Industrial and agriculture
Building and construction
Paper for printing
55%
15%
15%
15%
Around 85% of our revenue
is derived from packaging
markets, with the remaining
15% generated from our
uncoated fine paper
offering. Packaging growth
is supported by the
structural drivers of growing
demand for sustainable
solutions and eCommerce.
Demand for packaging is broadly linked
to macroeconomic indicators such
as GDP, consumption trends and
industrial production growth. In the
short term, demand may diverge from
macroeconomic indicators, either
positively or negatively, due to factors
such as inventory level management
(destocking or restocking) or
consumers prioritising the purchase of
goods over services (or services over
goods). These factors can exacerbate
cyclicality of demand.
In addition, market growth is supported
by changing consumer and industry
trends. These trends are providing our
industry with opportunities including
the growing demand for sustainable
solutions and increasing online
purchasing that is driving more demand
for eCommerce packaging solutions,
both of which are outlined in further
detail under 'Packaging growth drivers'.
We anticipate packaging market
growth in the region of 2-4% per
annum through-cycle. Furthermore, we
see opportunities to outperform these
market growth rates by leveraging our
leading market positions, innovation
capabilities and broad product offering
across the Group.
2-4%
average packaging market growth
per annum (through-cycle)
Packaging growth drivers
Sustainable solutions
eCommerce
Overview
– Demand for renewable and recycled
materials is increasing as consumers
seek products and solutions with
lower carbon emissions and which
contribute to the circular economy.
– Sustainability regulation is rapidly
evolving including both product-
related regulation, such as the
Packaging and Packaging Waste
Regulation, and environmental
regulation, such as the EU Regulation
on Deforestation-free Products.
– There is a growing expectation
among suppliers and customers to
use responsibly sourced materials and
carbon-efficient manufacturing
across their value chains as the
scrutiny of products' sustainability
credentials intensifies.
Overview
– eCommerce is increasing its
penetration as digital access and
product availability increase globally.
– Product protection, light-weighting
and an increased use of recycled
content is influencing packaging
choices made by eCommerce
customers.
– We see customers transitioning from
plastic to paper-based eCommerce
packaging providing opportunities
for fibre-based producers with
scale and in-depth experience
to increase market share.
Our opportunity
– Our extensive portfolio positions
us strongly to meet the increasing
demand for sustainable solutions,
including fresh (virgin) and recycled
fibre-based products, flexible
plastic-based packaging or fibre-
based products that include barrier
coatings. The variety of products
in our portfolio ensures we find the
optimal solution for our customers,
no matter the material used.
– We continue to monitor, engage
and prepare for upcoming regulation
ensuring we are optimally placed to
benefit from the evolving regulatory
landscape by focusing on delivering
circular driven solutions.
– We have a long track record of
reporting and delivering against
our sustainability targets, including
greenhouse gas emission
reductions. This creates an
opportunity to support our
customers' sustainability credentials
with evidence provided in our life
cycle-based product assessments.
Our opportunity
– We are strongly positioned to
service our eCommerce customers
with our fully recyclable portfolio
of multi-material solutions made of
fresh fibre (virgin) or recycled paper.
– We partner with our customers to
understand their packaging needs
ensuring we provide fit-for-purpose
solutions that are sustainable by
design. Considerations include
product properties such as durability,
barrier protection, quality and
convenience features which are
incorporated into the product design.
– Our broad range of eCommerce
solutions includes our corrugated
boxes and mailers, paper bags and
flexible paper-based mailer bags,
and functional barrier paper solutions.
This offering, together with our
in-depth papermaking expertise
and innovation capabilities, makes
us the ideal supplier to our
eCommerce customers.
Mondi Group
Integrated report and financial statements 2024
7
Structurally growing packaging markets
We are a global leader in sustainable packaging and paper,
operating an integrated business across the value chain, producing
innovative solutions for consumer and industrial applications.
We support the
circular economy at
each stage of our
integrated value chain…
Sustainable by design
Responsibly
sourced raw
materials
Efficient
production
Sustainable
packaging and
paper solutions
Integrated value chain
Page 9-10
Building on
the competitive
advantages of our
three businesses…
Corrugated Packaging
Flexible Packaging
Uncoated Fine Paper
Business unit value chains
Page 11-13
To deliver on our
purpose and create
sustainable value for
our stakeholders.
Employees
We create an inspiring, inclusive and
safe workplace while investing in the
development of our people to foster
innovation and make Mondi a great
place to work.
Customers
We deliver a broad range of
innovative sustainable packaging
and paper solutions to our
customers, with our continuous
focus on customer centricity.
Suppliers and contractors
We are a reliable and financially stable
business partner. We engage and
collaborate with our suppliers to build
stable relationships that result in
consistent demand, opportunities
for innovation and mutual growth.
Communities
Our local community initiatives
support health, environmental
protection, education, local
enterprise and infrastructure
development. We also generate
energy and provide wastewater
treatment for surrounding
communities.
Investors
We aim to maximise long-term
shareholder value through
sustainable growth and a disciplined
approach to capital allocation.
Partners and industry
associations
Our initiatives find sustainable
solutions to the collective challenges
we face and bring about meaningful
change at scale.
Stakeholder engagement
Page 50-51
Mondi Group
Integrated report and financial statements 2024
8
Our business model
Creating value for all our stakeholders
Responsibly
sourced
raw materials
Efficient
production
Sustainable
packaging and
paper solutions
What we do
– We require materials such as wood,
paper for recycling, chemicals and
resins, access to natural resources
(most notably water), and energy
in our manufacturing processes.
– Wood is the primary raw material
used in our fibre-based solutions,
with more than 90% of our wood
sourced in the countries where our
mills are located. Our European
mills procure wood regionally from
responsible external sources while
our South African mills primarily source
wood from our own sustainably
managed certified plantations.
– Our pulp and paper mills produce
pulp, containerboard, kraft paper
and uncoated fine paper. Our key
mills have integrated pulp and paper
processes which provide efficient
and cost-competitive production
as well as energy generation.
– Our converting operations use
containerboard or kraft paper together
with other raw materials to produce a
broad range of innovative corrugated
and flexible packaging products
by leveraging our product expertise
and quality asset base.
– We offer our customers a broad and
unique range of packaging and paper
solutions for consumer and industrial
end-uses.
– Our converted corrugated solutions
and flexible packaging products
are predominantly delivered to
customers regionally while our pulp,
containerboard, kraft paper and
uncoated fine paper is sold globally.
100%
responsibly sourced wood
79%
of energy from renewable sources
€7.4 billion
revenue generated
What makes us sustainable by design
– We support sustainable forestry
management standards and have
a due diligence system in place to
ensure we source wood responsibly.
– We engage with suppliers to promote
greater transparency, mitigate risk
and improve our understanding of
sustainability performance in our
supply chain.
– Our water stewardship and biodiversity
assessments provide insights on our
impact and information for developing
subsequent action plans.
– We promote a diverse and inclusive
work culture along with providing
employee training and upskilling
opportunities that drive productivity
and efficiency gains.
– Our focus on safety, with our Social
Psychology of Risk approach, supports
continuous improvement in our safety
performance.
– We engage and support surrounding
communities to understand their
concerns and partner with them to
find solutions for our joint success.
– Our focus on operational excellence
ensures we continue to reduce waste
and air, water and greenhouse gas
emissions in our production processes.
– We design products to have a
sustainable end-of-life and ensure
product quality and safety standards
are maintained throughout the
product's life cycle.
– We partner with our customers to
understand their needs, providing an
opportunity to innovate and develop
fit-for-purpose solutions that
contribute to a circular economy.
– Our involvement in cross-value chain
initiatives provides opportunities
to contribute towards developing
industry-wide guidelines for recycling
and design for circularity.
90%
of water is returned to rivers or
oceans after treatment to meet
regulated quality standards
46%
reduction of specific waste to
landfill from our manufacturing
processes since 2020
87%
of our packaging and paper
revenue is reusable, recyclable
or compostable
Mondi Group
Integrated report and financial statements 2024
9
Our three business units produce a unique range of sustainable products for our global customers,
primarily focused in consumer and industrial markets. Innovating across our two packaging
businesses provides the Group with further opportunities to combine both corrugated and flexible
products to give our customers a broader choice of sustainable packaging solutions.
Integrated value chain1
Flexible Packaging
Ç
Ç
Ç
Kraft paper3
0.4 mt
Paper bags
5.6 billion bags
Market pulp3
0.2 mt
Ç
Ç
Consumer
flexibles
1.9 billion m2
Functional
paper
and films
3.1 billion m2
Uncoated Fine Paper
Ç
Ç
Uncoated fine
paper
0.9 mt
Market pulp3
0.2 mt
Ç
Kraft paper
1.2 mt
Ç
Converting plants
Ç
Uncoated fine paper
0.9 mt
Mondi Group
Integrated report and financial statements 2024
10
Our business model continued
1
Integrated value chain based on 2024 statistics.
2
The Group produces more pulp, containerboard and kraft paper than it consumes. We however procure some of these products externally due to commercial and logistic reasons.
3 Net exposure (calculated as the total volume produced that exceeds the total volume consumed).
Corrugated Packaging
Ç
Ç
Containerboard3
1.3 mt
Corrugated
solutions
1.9 billion m2
Ç
Containerboard
2.3 mt
Ç
Box plants
Wood
15.2 million m3
Paper for recycling
1.3 million tonnes (mt)
Other
materials2
Resins
and films
Ç
Pulp
3.7 mt
Ç
Ç
Ç
0.4
(0.7)
(0.3)
0.4
(0.7)
(0.3)
Corrugated Packaging
We are a leading producer of
corrugated packaging in Europe with an
integrated and cost-competitive asset
base. We offer our customers a broad
range of solutions, focusing on quality,
reliability and service.
Virgin containerboard
Virgin containerboard is made from
fresh fibres and used for applications
requiring strength, moisture resistance,
hygiene and other unique properties.
End-use applications include fresh
fruit packaging as well as transport
packaging for heavy and fragile
goods. In Europe, only around 20%
of containerboard market demand
is for virgin grades.
Mondi is the leading virgin
containerboard producer in Europe.
Around 80% of our containerboard
production is virgin with most of this
produced at our cost competitive
European mills.
We are able to offer our customers
a wide range of high-quality virgin
containerboard grades including
unbleached kraftliner and niche grades
such as white top kraftliner, kraft top
white and semi-chemical fluting.
This portfolio, together with our
expertise across the value chain,
supports our customers to choose
the optimal containerboard solution
to meet their needs.
The majority of our virgin
containerboard is sold to, and converted
into packaging solutions by our
customers around the globe in the
regions where they operate.
We produce virgin containerboard at
our mills in Świecie (Poland), Kuopio
(Finland), Richards Bay (South Africa)
and Ružomberok (Slovakia).
Recycled containerboard
Around 20% of our containerboard
production is recycled with most
produced at our cost-competitive mill
in Świecie (Poland).
The majority of our recycled
containerboard is integrated, and used
by our corrugated solutions plants
securing supply for our customers.
The capital investment project at Duino
(Italy), which is expected to start up in the
first half of 2025, will increase our recycled
containerboard production and further
integrate our paper supply.
Corrugated solutions
We are the leading corrugated solutions
producer in emerging Europe. Our network
of box plants creates fully recyclable,
paper-based corrugated boxes and
packaging (made from virgin and recycled
containerboard) for our customers’
consumer, eCommerce, transit and
industrial packaging needs in the region.
We focus on innovation and collaboration
with our customers in order to deliver
sustainable solutions that meet their needs,
protect the product inside and provide
added convenience features for the
end consumer.
The acquisition of the Western Europe
Packaging Assets of Schumacher
Packaging is on track to complete in the
first half of 2025. It will add substantial
corrugated converting capacity and
broaden our geographic coverage in
Northern Europe, notably in Germany.
Customers will benefit from an enhanced
offering, including the most comprehensive
product portfolio in the industry.
80%
of our containerboard
production is virgin based
Virgin containerboard
(million tonnes) (2024)
Recycled containerboard
(million tonnes) (2024)
Corrugated Packaging trading review
Page 24
Mondi Group
Integrated report and financial statements 2024
11
1.9
(0.3)
1.6
Produced
Consumed
Net amount
sold
Produced
Consumed
Net amount
purchased
Flexible Packaging
We primarily produce kraft paper which
is converted into paper bags or used
for specialist consumer or industrial
applications and, in some instances, with
the addition of a coating or a barrier.
Kraft paper, which comprises sack
kraft and speciality kraft, is produced
at our mills in Štětí (Czech Republic),
Frantschach (Austria), Dynäs (Sweden)
and Ružomberok (Slovakia).
Sack kraft paper and paper bags
We are the global leader in the
production of sack kraft paper and
paper bags. With our high level of
integration, our customers come to
us for scale, security of supply, in-depth
paper making expertise, quality, reliability
and global reach.
Our European mills produce kraft paper,
of which around two-thirds is sack kraft
paper, a niche and high-quality product
made from fresh fibres that is strong
and porous and has high elasticity and
high tear resistance. These properties
make it an ideal solution for packaging
which demands strength and durability
such as for cement and other building
materials, as well as animal food, feed
and seed.
Sack kraft paper is a globally traded
product which is converted mostly by
our own paper bag plants located in
close proximity to our customers around
the world. We have a global paper bag
plant footprint, with leading positions in
Europe, North America, the Middle East
and North Africa.
Speciality kraft paper and
functional paper solutions
We produce a broad range of speciality
kraft paper that is versatile and strong,
and used in a wide range of end-uses
including paper-based consumer
products, grocery and fashion
bags, pallet wrapping and other
industrial solutions.
The majority of our speciality kraft
paper is converted by our customers
across Europe into specialist packaging
for food or industrial applications.
For some of our paper, we leverage
our extensive coating capabilities and
add barriers to the paper ensuring
it protects the goods inside while
continuing to be recyclable in paper
waste streams.
Consumer flexibles
We are a leading producer of high-
quality, flexible plastic-based packaging
for consumer end-uses. We have
leading positions in food and pet
food applications across Europe, and
extensive customer relationships with
large Fast Moving Consumer Good
(FMCG) companies and major retailers.
Market pulp
The majority of Flexible Packaging's market
pulp is produced at the Hinton Pulp mill
(Canada) and sold on the open market.
60%
of Flexible Packaging's
revenue is from Kraft Paper
and Paper Bags
Sack kraft paper
(million tonnes) (2024)
Speciality kraft paper
(million tonnes) (2024)
Flexible Packaging trading review
Page 24
Mondi Group
Integrated report and financial statements 2024
12
Our business model continued
0.4
(0.1)
0.3
Produced
Consumed
Net amount
sold
0.8
(0.7)
0.1
Produced
Consumed
Net amount
sold
Uncoated Fine Paper
We produce uncoated fine paper which
is sold predominantly into Europe and
Southern Africa. We also produce and
sell market pulp to customers around
the world. We own and manage forestry
landholdings in South Africa, providing
wood for our own pulp and paper
production in that country.
Uncoated fine paper
(Europe)
We are the second largest uncoated fine
paper producer in Europe. The majority
of our uncoated fine paper production in
this region is from our integrated mill in
Ružomberok (Slovakia). As an integrated
producer, we benefit from a lower cost
of production and higher energy self-
generation, which provides cost
competitiveness compared to non-
integrated producers. We have a majority
51% ownership in the mill. We also
produce uncoated fine paper focused on
niche applications at our Neusiedler
operations (Austria).
We remain well placed with our
comprehensive customer offering, scale
and reliability, supported by our
extensive operational capabilities.
Uncoated fine paper
(Southern Africa)
We are the leading uncoated fine paper
producer in the region. We operate one
uncoated fine paper machine at our
Merebank mill (South Africa).
Forestry assets
We own and manage forestry landholdings
in South Africa that produce sufficient
wood to meet our own requirements for
pulp production in the country, thereby
ensuring security of supply. We recognise
changes in the fair value of these assets in
the consolidated income statement
through the fair value gain or loss on
forestry assets.
Market pulp
The majority of Uncoated Fine Paper's
market pulp is produced at our
Richards Bay mill (South Africa). In
addition to providing pulp for
packaging and paper production
to our South African operations, this
market pulp is sold into both domestic
and export markets.
Uncoated Fine Paper trading review
Page 25
Mondi Group
Integrated report and financial statements 2024
13
Our strategy
We drive value accretive growth, sustainably.
Our strategic
value drivers
The Mondi Way
Page 1
Drive performance along
the value chain
Invest in quality assets
Drive performance along
the value chain to optimise
productivity, enhance efficiency
and prevent waste.
Invest in quality assets to drive growth,
improve competitiveness, and enhance
sustainability, product quality and
customer service.
Page 16
Page 17-18
Empower our people
Partner with customers
Create an inspiring, inclusive and safe
workplace that empowers leaders
to take accountability for attracting,
developing, and retaining talent
to foster innovation, growth and
contribute to a better world.
Innovate in partnership with
our customers to create a unique
range of sustainable packaging
and paper solutions that are fit
for a circular economy.
Page 19
Page 20
Strategic
enablers
Market leadership positions
Structurally growing markets
Our businesses
Page 4
Market context
Page 6-7
Integrated business model
Well-located, high-quality assets
Business model
Page 8-13
Where we operate
Page 5
Robust financial position
Entrepreneurial culture
Financial review
Page 26-29
Created by Empowered People
Page 37-40
Our delivery
frameworks
Disciplined capital allocation policy
Our strong financial position and investment
grade rating enables us to invest through the
cycle and take advantage of opportunities.
Mondi Action Plan 2030
MAP2030 is our sustainability framework
for circular driven solutions, created by
empowered people, taking action on climate.
Page 18
Page 30-49
Key performance
indicators
– Underlying EBITDA*
– Return on capital employed (ROCE)*
– Investment grade credit rating
– Total shareholder return (TSR)*
– Scope 1 and 2 GHG emissions*
– Waste to landfill*
– Reusable, recyclable or compostable
products
– Total Recordable Case Rate (TRCR)*
Key performance indicators
Page 22-23
Remuneration report
Page 111-135
*
Links to remuneration. See the Remuneration report on pages 111-135.
Mondi Group
Integrated report and financial statements 2024
14
Our strategy
A global leader in sustainable packaging and paper
The demand for sustainable products is
providing many opportunities for Mondi
and is a key driver of our growth. Our
investments over the last few years,
enhancing our unique packaging and paper
platform and product offering for our
customers, will support this growth.
Andrew King
Group CEO
Group performance review
Mondi demonstrated resilience during the
year delivering an underlying EBITDA of
€1,049 million, achieved against a backdrop
of softness in demand and a challenging
pricing environment. This performance
highlights the strength of our cost-
competitive, strategically located integrated
assets and our great people. Furthermore,
our ability to adapt with agility and flexibility
to market uncertainties, combined with our
unwavering focus on product quality,
reliability and innovation in offering a
diverse portfolio of sustainable packaging
and paper solutions, has been central to
delivering value to our stakeholders.
2024 started with some encouraging signs of
recovery, with restocking and price increases
across all our paper grades combined with
lower input costs. As the year progressed
the market recovery faltered with many of
our markets experiencing a lacklustre
demand environment resulting in prices first
stabilising and then declining into the end of
the year.
Underlying EBITDA of €1,049 million was
13% below last year primarily due to the
significantly lower forestry fair value gain in
2024 of €7 million and a €32 million one-
off currency loss recognised in the first half
of 2024 from the devaluation of the
Egyptian pound (2023: €1,201 million,
forestry fair value gain of €128 million).
Volume growth and lower wood, energy
and chemical costs offset lower average
prices and inflationary increases in
operating costs.
Corrugated Packaging delivered an
improved performance in the second half
of the year when compared to the first half
of the year. Margin expansion and an
improvement in underlying EBITDA in the
second half were driven by higher average
selling prices which more than offset lower
volumes as a result of a higher number of
scheduled mill maintenance shuts
compared to the first half. Excluding the
one-off currency loss in the first half,
Flexible Packaging's underlying EBITDA
was down in the second half as higher
average selling prices through the second
half were offset by lower volumes and
higher fixed costs from scheduled mill
maintenance shuts. After a strong start to
the year, Uncoated Fine Paper had a
weaker second half of the year due to a
forestry fair value loss, lower prices and
scheduled mill maintenance shut impacts.
Basic underlying earnings per share were
82.7 euro cents (2023: 107.8 euro cents)
reflecting lower profitability.
Special item pre-tax charges in the year
were €150 million which included €110
million of closure costs at the Stambolijski
kraft paper mill in Bulgaria.
Over the last three years Mondi has
undertaken a meaningful capital expenditure
programme across both corrugated and
flexible packaging mills and converting plants
investing €1.2 billion in total to expand
capacity, increase cost competitiveness and
improve our environmental footprint. By the
end of 2024 80% of the investment had
been completed – on time and within
budget. Five of the major capacity expansion
projects, including the new paper machine at
Štětí (Czech Republic) which commenced
operations in December 2024, are now
operational. Duino (Italy) remains on track to
complete in the first half of 2025. Our focus
turns to executing our operational and
commercial strategy ensuring all these
projects ramp up capacity efficiently to
maximise value from our investments and
deliver mid-teen returns through cycle.
Return on capital employed was 9.6%
(2023: 12.8%), reflecting the ongoing
challenging trading conditions, the
significantly lower forestry fair value gain
and a one-off currency loss from the
devaluation of the Egyptian pound.
Maintaining a strong and flexible balance
sheet, reflected in an investment grade credit
rating, coupled with strong cash generation,
enables the Group to continue investing
through the cycle alongside paying dividends
to shareholders. Cash generated from
operations was €970 million, a reduction on
the prior year (2023: €1,312 million) due to
working capital movements. Net debt to
underlying EBITDA at 31 December 2024
was 1.7 times (31 December 2023: 0.3
times) as the business continued to invest
in its meaningful capital expenditure
programme. We are on track to complete
the acquisition of the Western Europe
Packaging Assets of Schumacher
Packaging, for an enterprise value of €634
million, in the first half of 2025, which will
increase leverage in the short term.
The Board has recommended paying a
total ordinary dividend for 2024 in line with
last year, at 70.0 euro cents per share,
reflecting our continued confidence in the
future of our business.
Mondi Group
Integrated report and financial statements 2024
15
Chief Executive Officer's strategic review
Strong platform for growth
Drive performance along
the value chain
Drive performance along the value chain to optimise
productivity, enhance efficiency and prevent waste.
Key achievements in 2024
– Delivered improvements across the
value chain, including procurement
synergies to reduce input costs,
increase energy efficiency and
further enhance product quality
– Decreased our waste to landfill per
tonne of production by 4% which,
when compared to the 2020
baseline, is a reduction of 46%
Relevant KPIs
– Underlying EBITDA
– Return on capital
employed (ROCE)
– Total shareholder return
(TSR)
– Waste to landfill
By implementing continuous improvement
initiatives to optimise productivity, enhance
our efficiency and eliminate waste across
our operations, we gain considerable
competitive advantage.
During 2024 we delivered improvements
across the value chain to reduce input
costs, largely from procurement initiatives,
increase energy efficiency and further
enhance product quality. The completion of
a number of significant capital expenditure
projects during the year will further improve
productivity and efficiency.
Our focus on minimising the environmental
impacts of our operations is demonstrated
by our target to reduce waste to landfill per
tonne of production by 30% by 2030,
against a 2020 baseline. In 2024 we
decreased our waste to landfill per tonne of
production by 4% which, when compared
to the 2020 baseline, is a reduction of 46%.
We undertake projects to keep materials in
circulation by recycling and reusing waste
as secondary raw materials with this year's
improvement mainly from our mills in
Richards Bay (South Africa), Kuopio
(Finland) and Dynäs (Sweden).
MAP2030
Page 30-49
Mondi Group
Integrated report and financial statements 2024
16
Chief Executive Officer's strategic review continued
Sustainable by design: Protective Mailer
Innovating with purpose
An innovative paper-padded envelope for eCommerce shipments, replacing plastic
bubble wrap padding with a shock-absorbent, fully paper-based, protective padding that
is designed for the circular economy and recyclable in all markets. Due to the lightweight
lining, the package is lighter than equivalent-sized cardboard boxes and easy to fill
without wasted space due to its flexibility.
Read more about our products
www.mondigroup.com/products-and-solutions/explore-solutions/
Invest in quality assets
Invest in quality assets to drive growth, improve
competitiveness, and enhance sustainability,
product quality and customer service.
Key achievements in 2024
– Completion of new kraft paper
machine at Štětí (Czech Republic);
major mill modernisations in Świecie
(Poland) and Kuopio (Finland);
expansions of box plants in Warsaw
and Simet (both Poland)
– Reduced Scope 1 and 2 greenhouse
gas emissions by 11%
– Agreement to acquire the Western
Europe Packaging Assets of
Schumacher Packaging
Relevant KPIs
– Underlying EBITDA
– Return on capital
employed (ROCE)
– Investment grade
credit rating
– Total shareholder
return (TSR)
– Scope 1 and 2 GHG
emissions
We invest in quality assets through the
cycle. Our investments ensure we have
capacity in structurally growing markets
and a broad range of products to meet the
increasing demand for sustainable
packaging from our customers.
Over the last three years we have invested
€1.2 billion to increase capacity in both
Corrugated Packaging and Flexible
Packaging. When fully ramped up, these
projects will add more than 500,000 tonnes
of additional virgin and recycled
containerboard capacity (Świecie, Kuopio
and Duino) and 210,000 tonnes of kraft
paper capacity (Štětí). We also expanded
our converting capacity, primarily through
major box plant expansions at Warsaw and
Simet (both Poland) and projects across
Flexible Packaging. These include
expanding our market-leading pet food
packaging converting capability and a new
extrusion line at Mondi Coating Štětí
(Czech Republic) to support the growth of
food and non-food contact packaging.
With this investment and build phase
largely complete, we are now focused on
executing our operational and commercial
strategy to ensure these capacity
expansion projects ramp up efficiently to
maximise value from our investments and
deliver mid-teen returns through cycle.
We also invest in our mills and plants to
drive operating efficiency, increase energy
self-sufficiency, reduce environmental
impacts and maintain a competitive
advantage. In 2024 we continued to make
progress towards reducing our greenhouse
gas emissions. Compared to our target of a
46% reduction in Scope 1 and 2 emissions
by 2030 against our 2019 baseline, we
achieved an 11% reduction compared to
2023 which, when compared to our 2019
baseline, is a reduction of 31%. Contributing
to this is our continued focus on switching
fuel mix towards renewable energy,
including using biomass-based energy in
our mills. In 2024, 79% of our energy was
from renewables (2023: 75%). Further
reductions will follow at our Richards Bay
mill (South Africa), where we are replacing
the coal-fired boilers with a biomass boiler,
removing our reliance on externally
procured energy, and at our Dynäs mill
(Sweden), where we are replacing our
existing boiler with a new energy-efficient
boiler. These energy investments reduce
both costs and emissions, enabling us to
offer our customers products with a lower
carbon footprint, supporting their
sustainability journey.
Mondi Group
Integrated report and financial statements 2024
17
Sustainable by design: Snug&Strong
Replacing EPS in white goods packaging
Snug&Strong is a recyclable corrugated solution that can ease supply chain complexity
and improve packaging processes. It is custom-fit, 100% paper-based industrial packaging
to replace expanded polystyrene (EPS) for high protection white goods and electronic
equipment. Snug&Strong is delivered flat, saving space and money for storage and
transportation.
Read more about our products
www.mondigroup.com/products-and-solutions/explore-solutions/
Returns focused capital allocation
Our disciplined capital allocation policy
gives us the flexibility to invest through
the economic cycle to drive long-term
growth and to deliver attractive returns,
while supporting the ordinary dividend.
Cash generated from operations was
€970 million in 2024 and we ended the
year in a robust financial position
demonstrated by a leverage ratio of 1.7
times net debt to underlying EBITDA.
While 2024 was another year of
navigating challenging markets, the
Board has recommended a full year
ordinary dividend of 70.0 euro cents
per share reflecting its continued
confidence in the future of the
business.
Following the sale of the Group’s
Russian assets at the end of 2023, and
on obtaining shareholder approval,
Mondi returned the net proceeds
received of €769 million to
shareholders as a €1.60 per share
special dividend in February 2024. The
special dividend was accompanied by a
share consolidation, whereby
shareholders received 10 new ordinary
shares for every 11 existing ordinary
shares held.
Mondi sees excellent growth and return
opportunities from investing in its
packaging verticals of Corrugated
Packaging and Flexible Packaging
through both organic growth and
acquisitions, while continuing to
optimise its well-located and
competitive Uncoated Fine Paper
operations. Geographically, the focus
for growth in Corrugated Packaging is
in leveraging our leading positions and
vertical integration strengths in Europe
and adjacent markets. In Flexible
Packaging we will continue to seek
opportunities to develop our leading
global franchise in kraft paper and
paper bags, while focusing our
consumer flexibles business on serving
the more developed markets of Europe
and North America.
In February 2024 we completed the
acquisition of the Hinton Pulp mill (Canada)
and have made good progress developing
team excellence and improving its
productivity, sustainability performance and
quality parameters for high-quality pulp
suitable for kraft paper. Feasibility studies
for a new sack kraft paper machine at the
mill are ongoing in line with our intention to
fully integrate our American paper bags
business.
In October 2024 we reached an agreement
to acquire the Western Europe Packaging
Assets of Schumacher Packaging for an
enterprise value of €634 million. The
acquisition, due to complete in the first half
of 2025, complements Mondi’s Corrugated
Packaging operations in Europe. It includes
two state-of-the-art mega-box plants in
Germany and secures significant capacity
for Mondi to continue to meet growing
demand for sustainable packaging,
particularly in eCommerce markets.
We continue to look at further
opportunities for organic and inorganic
growth investment across our packaging
portfolio and to improve operating
efficiency across all our operations to
ensure we are well positioned to benefit
from structural growth in our markets and
meet the demands of our customers for
sustainable packaging and paper.
Mondi Group
Integrated report and financial statements 2024
18
Chief Executive Officer's strategic review continued
Empower our people
Create an inspiring, inclusive and safe workplace
that empowers leaders to take accountability for
attracting, developing, and retaining talent to foster
innovation, growth and contribute to a better world.
Key achievements in 2024
– Maintained high levels of
engagement with colleagues and
took action based on their opinions
and feedback
– Undertook a pulse survey
on speaking up with 78%
participation rate
– Continued to be recognised
as a leader in safety in our industry
with a TRCR of 0.68
Relevant KPIs
– Underlying EBITDA
– Total shareholder
return (TSR)
– Total Recordable
Case Rate (TRCR)
We are focused on creating an inspiring,
inclusive and safe workplace that
empowers our teams and enables leaders
to take accountability for attracting,
developing, and retaining talent to foster
innovation and growth. We engage with
colleagues throughout Mondi and take
action based on their opinions and
feedback. Over the past year, we
implemented local actions across the
Group to address points raised in the 2023
Employee Survey. On a Group level we
have been looking at how we can promote
psychological safety and reinforce a culture
of listening and caring. As part of this, we
conducted a pulse survey on speaking up
in 2024, which had a 78% participation rate.
This high level of engagement provides us
with a representative sample and enables
us to take meaningful action across the
organisation.
We are committed to inspiring colleagues
across Mondi to become lifelong learners,
encouraging everyone to take
accountability for their own development.
We want to equip our colleagues with the
knowledge, skills, behaviours and attitudes
that will enable both business success
and personal growth. To ensure we
meet individual needs, we are intensifying
our efforts to differentiate our learning
offerings so that people attend the right
course at the right time in their
development journey.
Ensuring the safety of our colleagues
remains our top priority and although we
saw a slight increase in our Total
Recordable Case Rate (TRCR) this year to
0.68 (2023: 0.64) we are still recognised as
a leader in our industry. We did however
regrettably experience a fatality of an
employee at our Merebank mill (South
Africa), and three people suffered serious
finger injuries at our other operations. We
are resolute in our commitment to
investigating every incident thoroughly.
Procedures and practices are rigorously
revised to prevent any recurrence and
ensure everyone returns home safely at the
end of each day. In 2024, colleagues and
contractors across Mondi completed
566,333 hours of training (2023: 502,916), of
which 39% were dedicated to safety.
Created by Empowered People
Page 37-40
Mondi Group
Integrated report and financial statements 2024
19
Sustainable by design: Paper bag without free film
Shaping a more sustainable construction industry
An innovative solution in industrial packaging, designed to protect filling goods like building
materials, chemicals and feeds. It significantly reduces the plastic content by replacing the
free film layer with a coated barrier paper. The bag is certified recyclable based on tests
conducted in Mondi’s recycling laboratory in Frantschach (Austria) according to Cepi's v.2
test method and 4evergreen’s fibre-based packaging recyclability evaluation protocol and
scored 19 out of 20 points in the certification of Interseroh.
Read more about our products
www.mondigroup.com/products-and-solutions/explore-solutions/
Partner with customers
Innovate in partnership with our customers to create
a unique range of sustainable packaging and paper
solutions that are fit for a circular economy.
Key achievements in 2024
– Increased the proportion of
our products that are reusable,
recyclable or compostable to
87% of revenue
– 1,776 product impact assessments
completed for our customers
enabling them to manage their
Scope 3 emissions
– Provided our customers with high-
quality packaging and paper solutions
that comply with all relevant health
and safety requirements
Relevant KPIs
– Underlying EBITDA
– Return on capital
employed (ROCE)
– Total shareholder
return (TSR)
– Reusable, recyclable or
compostable products
We believe that the global transition to
sustainable packaging offers an important
growth opportunity for Mondi. We innovate
in partnership with our customers to create
a unique range of fibre and high-end
sustainable plastic packaging products that
are fit for a future circular economy and
support our customers’ sustainability
journeys.
Complementing our corrugated solutions
‘Think Box’ innovation hubs, we recently
opened ‘FlexStudios’ at Steinfeld
(Germany) to help us co-create with our
customers a range of new flexible
packaging solutions. Working in
collaboration with Amazon, we launched a
fully recyclable, paper-based padded mailer
this year and, reflecting the strength of our
innovative ideas and technologies, we
received ten 2025 WorldStar Packaging
Awards.
We are focused on providing our
customers with sustainable low-carbon
packaging solutions that support their
climate targets and keep materials in
circulation. In Europe, our growth plans are
supported by legislation that is increasingly
driving the move towards more sustainable
packaging products, including the
Packaging and Packaging Waste
Regulation. We continue to improve our
data collection and analytics capabilities to
enable us to support our customers with
product-related data to manage their
Scope 3 emissions, as well as maintaining
traceability of our fibre sources.
We have increased the proportion of
Mondi revenue from reusable, recyclable or
compostable products to 87% (2023: 85%).
In 2021, as part of MAP2030, we set a
target of 100% of packaging and paper
revenue to be reusable, recyclable or
compostable by 2025. Corrugated
Packaging and Uncoated Fine Paper are
fully recyclable so our focus is on Flexible
Packaging where we are making good
progress. In 2024, we had a sustainable
alternative in place, or identified and in
development, for 97% of our Flexible
Packaging revenue. With customer
adoption rates slower than expected due
to a number of factors including the weak
macroeconomic environment, we recognise
that achieving 100% in the coming year is
unlikely. As we reach the midpoint of
MAP2030 and with the expansion of our
global footprint, we will be reviewing, and
where relevant, updating our MAP2030
targets.
Circular Driven Solutions
Page 33-36
Mondi Group
Integrated report and financial statements 2024
20
Chief Executive Officer's strategic review continued
Sustainable by design: Eco-Cage
A fresh, sustainable way to package fruit
Eco-Cage is a basket made of corrugated packaging, designed to reduce plastic waste
and enhance fruit freshness through ventilation holes. Its lightweight yet strong design
ensures durability, making it an ideal choice for supermarkets, farmers' markets and
homes. A significant advantage of Eco-Cage is its flat transport capability, allowing for
over 2,000 baskets per pallet. The carrying handle is reinforced with tape to ensure
sufficient load capacity.
Read more about our products
www.mondigroup.com/products-and-solutions/explore-solutions/
Mondi is a returns-focused, cash generative business
delivering through-cycle value accretive growth
A market leader in sustainable packaging
and paper
Mondi is a leading producer of corrugated packaging in
Europe, a global leader in the production of kraft paper
and paper bags and a regional leader in uncoated
fine paper.
Robust financial position
We have strong cash generation through-cycle and a
robust balance sheet with an investment grade credit
rating that provide strategic flexibility.
Broad product range drives innovation
and strengthens long-term customer
relationships
We can offer our customers a choice including paper
and high-quality plastic-based solutions and, in some
instances, with the addition of a coating or a barrier.
Investment through-cycle for value
accretive organic growth
Mondi invests to deliver value for all stakeholders
whether through new capacity expansion projects
or to improve productivity and operational excellence.
Structurally growing markets
underpinned by increasing demand for
sustainable packaging
Mondi is operationally focused in long-term structurally
growing markets driven by consumption and industrial
production growth, underpinned by increasing demand
for eCommerce and sustainable packaging.
Disciplined capital allocation strategy
focused on returns
The Group has a balanced strategy of investing in both
organic and inorganic growth opportunities alongside
returning capital to shareholders.
Competitive advantage and resilience
from quality asset base and integrated
business model
We operate high-quality, integrated assets which
are well invested with close proximity to low-cost
sustainable fibre which delivers significant cost
advantages and reduced volatility.
Sustainability at our core
Mondi is ‘Sustainable by Design’ and a recognised
leader in sustainability. The MAP2030 framework is
focused on contributing to a better world by making
circular driven solutions, created by empowered people,
taking action on climate supported by responsible
business practices.
Mondi Group
Integrated report and financial statements 2024
21
Reasons to invest
Our key performance indicators (KPIs) provide a broad measure of the Group’s performance
against our strategic objectives. We set individual targets for each of our business units in
support of these Group KPIs.
Underlying EBITDA
(€ million)
Why this is a KPI
Underlying EBITDA provides a measure
of the cash-generating ability of the Group
that is comparable from year to year.
Tracking our cash generation is one of the
components we measure when we assess
our value creation through the cycle.
2024 performance
Underlying EBITDA of €1,049 million was 13%
below last year primarily due to the
significantly lower forestry fair value gain in
2024 of €7 million and a €32 million one-off
currency loss recognised in the first half of
2024 from the devaluation of the Egyptian
pound (2023: €1,201 million, forestry fair value
gain of €128 million).
Link to strategy
Return on capital employed (ROCE)
% (12-month trailing)
Why this is a KPI
ROCE provides a measure of the efficient
and effective use of capital in our operations.
2024 performance
The Group ROCE of 9.6% reflected the
ongoing difficult trading conditions, the
significantly lower forestry fair value gain and
the devaluation of the Egyptian pound.
Link to strategy
Investment grade credit rating
(at 31 December 2024)
Why this is a KPI
We aim to maintain an investment grade
credit rating to ensure we have access to
funding for value accretive investment
opportunities through the business cycle.
2024 performance
The Group maintains its investment grade
credit rating and has an A- (stable outlook)
credit rating from Standard & Poor’s and a
Baa1 (stable outlook) credit rating from
Moody’s.
Link to strategy
Total shareholder return (TSR)
(%)
Why this is a KPI
TSR provides a market-related measure
of the Group’s progress against our
objective of delivering long-term value
for our shareholders.
TSR measures the total return to Mondi’s
shareholders, including both share price
movement and dividends paid.
2024 performance
Although the share price decreased during the
year, the Group paid a €1.60 special dividend
per share to shareholders in February 2024
and recommended a total ordinary dividend
per share for the year of 70.0 euro cents,
in line with last year.
Link to strategy
Mondi Group
Integrated report and financial statements 2024
22
Key performance indicators
Tracking our performance
15.2%
13.9%
23.7%
12.8%
9.6%
2020
2021
2022
2023
2024
-19%
-26%
-19%
Mondi plc
-50
-25
—
25
50
1-year
3-year
5-year
1,353
1,157
1,848
1,201
1,049
20.3%
16.6%
20.8%
16.4%
14.1%
Underlying EBITDA margin
2020
2021
2022
2023
2024
Standard & Poor’s
A+
A
A-
BBB+
BBB
BBB-
Moody’s
A1
A2
A3
Baa1
Baa2
Baa3
Aligning KPIs to remuneration
Our executive directors are assessed against specific
performance targets. For the LTIP, these performance
measures, assessed over a three-year period, are ROCE
and TSR (and basic underlying earnings per share from
the performance period ending in 2025).
For the Group annual bonus, in which more than 3,000 employees
participate (including the Group CEO and Group CFO), performance is
assessed against ROCE, underlying EBITDA, sustainability metrics
(safety, GHG emissions and waste to landfill) and personal objectives.
Remuneration report
Page 111-135
Scope 1 and 2 GHG emissions
(million tonnes CO2e)
Why this is a KPI
Our focus is to reduce our GHG emissions
to address climate-related impacts and secure
the long-term success of our business. We
have a target to reduce our Scope 1 and 2
GHG emissions by 46% by 2030 from a
2019 baseline.
2024 performance
We have reduced our absolute Scope 1 and 2
GHG emissions by 31% compared to our
2019 baseline and remain on track to meet
our targets. Our GHG emission intensity was
also lower at 0.36 tonnes CO2e per tonne of
saleable production.
Link to strategy
Waste to landfill
(thousand tonnes)
Why this is a KPI
Our goal is to keep materials in circulation.
We are focused on reducing our waste
and reusing or recycling unavoidable waste
generated in our production processes
instead of disposing of it to landfill.
Our target is to reduce waste to landfill
per tonne of production by 30% by 2030,
against a 2020 baseline.
2024 performance
We continue to reduce our specific waste to
landfill, delivering a 46% reduction compared
to our 2020 baseline.
Link to strategy
Reusable, recyclable or compostable
products
(% of Group revenue)
Why this is a KPI
The demand for sustainable packaging
continues to rise, with brands and consumers
looking for solutions to help meet their
sustainability pledges and support the
transition to a circular economy. We have
a target to make 100% of our packaging
and paper solutions reusable, recyclable
or compostable by 2025.
2024 performance
We continue to make progress on our
ambitious target. In 2024, 87% of our revenue
was from products that were reusable,
recyclable or compostable, up from 74%
in 2020, our baseline year for this target.
Link to strategy
Total Recordable Case Rate (TRCR)
(per 200,000 hours worked)
Why this is a KPI
Keeping people safe and healthy is a moral
and business imperative that applies to all who
work for and on behalf of Mondi. Our Social
Psychology of Risk approach supports our
goal of sending everybody home safely,
every day. Our Total Recordable Case Rate
target is a 15% reduction by 2030 against a
2020 baseline.
2024 performance
Our Total Recordable Case Rate performance
of 0.68 is a 2% increase on our 2020 baseline.
In addition, we deeply regret the fatality at our
Merebank mill (South Africa) and three life-
altering injuries at other operations in the year.
Link to strategy
Mondi Group
Integrated report and financial statements 2024
23
121
124
116
65
66
23.79
23.45
21.93
13.28
12.75
Specific (kg of waste per tonne of saleable production)
2020
baseline
2021
2022
2023
2024
74%
77%
82%
85%
87%
2020
baseline
2021
2022
2023
2024
2.70
2.41
2.18
2.10
1.86
0.53
0.45
0.41
0.43
0.36
GHG intensity
2019
baseline
2021
2022
2023
2024
0.67
0.71
0.63
0.64
0.68
2020
baseline
2021
2022
2023
2024
(tonnes CO2e per tonne of saleable production)
Corrugated Packaging
Corrugated Packaging delivered an improved performance
compared to 2023 with underlying EBITDA of €328 million and
margin of 14.6% (2023: €310 million, 13.6%). The business exhibited
good cost control, achieving a reduction in input costs which more
than offset inflationary cost pressures. Performance in the second
half of the year was stronger when compared to the first half
mainly due to higher average selling prices.
In Containerboard, our sales volumes were broadly flat compared
to the prior year as the business continued to deliver its broad
range of high-quality paper grades to customers. We achieved
selling price increases through the year before some modest
reductions during the last quarter resulting in broadly similar
average selling prices for the year compared to the prior year. We
are currently implementing containerboard price increases.
In Corrugated Solutions, box volumes were broadly flat but
improved over the year, with higher volumes in the second half
compared to the first half supported by the growing demand for
sustainable packaging solutions used in eCommerce and other
consumer end-use applications.
The majority of our major capacity expansion projects have started
up and are ramping up capacity. In Containerboard, this includes
the €125 million modernisation investment at our Kuopio mill
(Finland) which is increasing semi-chemical fluting capacity by
55,000 tonnes while enhancing efficiency and improving
environmental performance at the mill. In addition, our €95 million
debottlenecking project at Świecie mill (Poland) is increasing
kraftliner capacity by 55,000 tonnes. In Corrugated Solutions,
completed investments include our Warsaw and Simet plant
expansions in Poland, transforming these sites into state-of-the-
art corrugated packaging facilities tailored to serve the specialised
needs of our customers in Poland and beyond.
We continue to make good progress with our €200 million
investment at our Duino mill (Italy) to convert the existing paper
machine into a high-quality, cost-competitive recycled
containerboard machine with an annual capacity of 420,000
tonnes. Start-up of the machine is expected in the first half of
2025.
Flexible Packaging
Flexible Packaging's underlying EBITDA was €558 million for the
year with margin of 14.1% (2023: €637 million, 16.5%) as higher
sales volumes and reduced input costs were offset by lower
average selling prices and inflationary cost pressures. A €32 million
one-off currency loss from the devaluation of the Egyptian pound,
as previously reported, was also recognised in the first half of the
year. Excluding this one-off loss, Flexible Packaging's underlying
EBITDA was down in the second half as higher average selling
prices through the second half were offset by lower volumes and
higher fixed costs from scheduled mill maintenance shuts.
In Kraft Paper, improvements in market demand, supported by the
drive for more sustainable solutions, led to higher sales volumes
compared to 2023. While kraft paper selling prices increased
during the first half and into the second half of the year, average
prices for the year remained below the prior year's averages. In
2025, kraft paper has seen some early signs of improving demand
with order books tightening, supporting price increase
announcements.
Paper Bags increased sales volumes by 3% compared to the prior
year. This was supported by the growing demand for traditional
building material and cement applications across our main
emerging markets served, as well as increasing demand for
eCommerce solutions as our customers transition from plastic
mailers to our paper-based MailerBAGs. Input costs were lower
compared to the prior year primarily due to lower average kraft
paper prices. This mitigated the impact of lower paper bag selling
prices.
Consumer Flexibles and Functional Paper and Films delivered
resilient performances with good margins and higher sales volumes
compared to 2023, continuing to provide customers with
innovative and sustainable packaging solutions.
During the year, we made good progress on our major capacity
expansion projects. Our €400 million investment in a new 210,000
tonne per annum kraft paper machine and pulp mill upgrade at our
Štětí mill (Czech Republic) commenced operations in December
2024. We also have a number of investments across our
converting plant network including expanding and upgrading the
global reach of our paper bag network, starting up a new extrusion
line at Štětí and investments to consolidate our leading position in
European pet food packaging.
In February 2024 we completed the acquisition of the Hinton Pulp
mill (Canada) and have made good progress developing team
excellence and improving its productivity, sustainability
performance and quality parameters for high-quality pulp suitable
for kraft paper. Feasibility studies for a new sack kraft paper
machine at the mill are ongoing in line with our intention to fully
integrate our American paper bags business.
Mondi Group
Integrated report and financial statements 2024
24
Business unit trading review
2024 performance
This section includes Alternative Performance Measures which are defined on pages 216-218.
Uncoated Fine Paper
In Uncoated Fine Paper, underlying EBITDA of €198 million and
margin of 15.0% were below last year due to the significantly lower
forestry fair value gain in 2024 of €7 million (2023: Underlying
EBITDA of €289 million, margin of 22.4% and forestry fair value
gain of €128 million). Excluding the impact of the significantly
lower forestry fair value gain, the business delivered an improved
performance when compared to the prior year driven by higher
sales volumes and reduced input costs despite lower average
selling prices.
In Europe, sales volume increases were supported by a recovery in
market demand during the year, market share gains and restocking
effects in the first half of the year which abated in the second half.
In South Africa, sales volumes were modestly down on the prior
year due to weaker domestic demand.
Uncoated fine paper selling prices increased in the first half of the
year however these largely reversed in the second half and ended
the year below 2024 average prices.
Average market pulp prices were higher than the prior year. These
increased sharply during the first half of the year before decreasing
over the course of the second half, ending the year below average
2024 price levels.
The forestry fair value gain of €7 million in the year (2023:
€128 million) comprised a €49 million gain in the first half which
largely reversed in the second half (loss of €42 million) as a result
of wood price decreases in South Africa.
Mondi Group
Integrated report and financial statements 2024
25
Corrugated Packaging
Flexible Packaging
Uncoated Fine Paper
328
558
198
Read more about our products
www.mondigroup.com/products-
and-solutions/
Underlying EBITDA by business unit
(€ million)
Product examples that are sustainable by design
Mix-Berry
Fully recyclable and paper based
Designed to safely transport
groceries, especially berries,
while extending shelf life.
The packaging features
a pick-up-and-go handle
and can be transported flat
to support stacking tabs
and optimise logistics.
Re/cycle FunctionalBarrier Paper 95/5
Built for strength
Our range of barrier papers
with the highest and strongest
mechanical properties – the
perfect packaging solution
that offers high strength
without compromising
on sustainability.
PERGRAPHICA®
Sustainably produced paper
Full-spectrum premium
printing papers for creative
communications, design,
publishing and luxury
packaging.
Mike Powell
Group CFO
Financial performance
€ million, except where noted
2024
2023
Group revenue
7,416
7,330
Underlying EBITDA
1,049
1,201
Underlying EBITDA margin (%)
14.1%
16.4%
Depreciation, amortisation and impairments (underlying)
(443)
(411)
Underlying operating profit
606
790
Special items (pre-tax)
(150)
(27)
Operating profit
456
763
Underlying operating profit
606
790
Net loss from joint ventures
(3)
(5)
Impairment of investments in joint ventures
—
(5)
Net monetary (loss)/gain arising from hyperinflationary
economies
(5)
2
Net finance costs
(70)
(73)
Underlying profit before tax
528
709
Underlying tax charge
(117)
(167)
Effective tax rate (%)
22.2%
23.6%
Non-controlling interests
(44)
(19)
Underlying earnings attributable to shareholders
367
523
Basic earnings per share (euro cents)
49.1
103.5
Basic underlying earnings per share (euro cents)
82.7
107.8
ROCE (%)
9.6%
12.8%
Financial position
€ million
2024
2023
Property, plant and equipment
5,160
4,619
Goodwill
767
765
Working capital
1,188
1,084
Other assets
657
673
Other liabilities
(690)
(626)
Net assets excluding net debt
7,082
6,515
Equity
4,857
5,655
Non-controlling interests in equity
493
441
Net debt
1,732
419
Capital employed
7,082
6,515
Mondi Group
Integrated report and financial statements 2024
26
Financial review
Disciplined capital allocation
This section includes Alternative Performance Measures which are defined on pages 216-218.
In October 2024 we reached an agreement to acquire the Western Europe Packaging Assets of Schumacher Packaging with completion expected in the first half of 2025.
All 2025 guidance provided in this section excludes this acquisition.
1,201
132
(385)
254
(121)
(32)
1,049
(443)
(150)
456
Underlying
EBITDA
(2023)
Sales
volumes
Sales
prices
Costs
Forestry fair
value gain
Egyptian
pound
devaluation
Underlying
EBITDA
(2024)
Depreciation,
amortisation
and
impairments
Special items
Operating
profit
Group performance
Group revenue of €7,416 million was up on
the prior year with higher sales volumes
despite lower average selling prices (2023:
€7,330 million). Underlying EBITDA was
lower than the prior year at €1,049 million
(2023: €1,201 million) due to the
significantly lower forestry fair value gain
and a one-off currency loss from the
devaluation of the Egyptian pound
recorded in the period. The Group's
underlying EBITDA margin was 14.1% (2023:
16.4%).
In 2024, input costs were lower than the
prior year following price declines across
most input cost categories in 2023, with
the largest benefits achieved from lower
wood costs in central Europe as well as
energy and chemical costs. Paper for
recycling costs were higher due to price
increases during the first half of 2024 which
largely reversed over the second half of the
year. As we enter 2025, input costs are
broadly stable and similar to average 2024
levels.
Total maintenance costs were higher in the
year mainly as a result of the inclusion of
the Hinton Pulp mill (Canada) that was
acquired in February 2024. In 2025, we
expect a similar phasing of planned
maintenance shuts as in 2024 with the
majority to be undertaken in the second
half of the year.
Personnel costs were also higher, driven by
the inclusion of Hinton's employee costs
following the acquisition and inflationary
cost pressures most notably from the
hyperinflationary environment in Türkiye.
We remain focused on cost control, driving
efficiency improvements and taking
decisive restructuring actions where
necessary. In regard to the latter, we closed
three production sites in the year and
transferred volumes to other sites to
ensure continuity of supply to our
customers. Other net operating expenses
were negatively impacted by the
significantly lower forestry fair value gain
and one-off currency loss as outlined
above, together with lower income
received from green energy sales and
disposal of emissions credits. Comparability
was also impacted by income received in
the prior year from an insurance claim.
Depreciation, amortisation and impairment
underlying charges were higher at €443
million (2023: €411 million) as a result of
starting up a number of capital investment
projects in the year. These are expected to
be €450-475 million in 2025.
Net finance costs of €70 million were in
line with the prior year (2023: €73 million).
In 2025, we expect net finance costs of
around €90 million due to a higher average
net debt balance.
The underlying tax charge for the year was
€117 million, giving an effective tax rate of
22.2% (2023: €167 million, 23.6%). In 2025,
we expect our effective tax rate to be
around 23%.
A special item pre-tax charge of
€150 million was recognised in the year.
This included, as previously reported,
closure costs at the Stambolijski kraft
paper mill in Bulgaria which totalled €110
million and primarily related to a non-cash
asset impairment charge of €73 million.
The remaining costs comprised €22 million
from closing two paper bag plants during
the year, as well as €18 million of
transaction-related costs.
Basic underlying earnings per share were
82.7 euro cents (2023: 107.8 euro cents)
reflecting the lower underlying earnings and
the effect of the share consolidation that
accompanied the special dividend paid in
February 2024. After taking special items
into account, basic earnings per share were
49.1 euro cents (2023: 103.5 euro cents,
special item pre-tax charge of €27 million).
Mondi Group
Integrated report and financial statements 2024
27
Underlying EBITDA development
(€ million)
Cash flow
Cash generated from operations was €970
million, lower than the prior year (2023:
€1,312 million) as a result of a working
capital cash outflow in the year of €108
million compared to an inflow in 2023 of
€229 million, impacted in part by an
increase in inventory levels following the
start-up of our major capacity expansion
projects.
Capital expenditure cash payments were
€933 million (2023: €830 million) as we
continued to invest in our meaningful
capital expenditure programme alongside
investing to improve efficiency, reduce
environmental impacts and increase energy
self-sufficiency. In 2025 we expect capital
expenditure to be €750-850 million which,
in addition to regular stay in business
capital expenditure, includes the final
payments associated with our €1.2 billion
capital expenditure programme, and the
ongoing investments to replace the boilers
in both Richards Bay (South Africa) and
Dynäs (Sweden).
Tax paid was €120 million (2023: €178
million) and interest paid including
derivative interest was €79 million (2023:
€103 million).
The Group returned €1,081 million of
dividends to shareholders during the year.
This comprised a €1.60 per share special
dividend payment in February 2024
totalling €769 million from the disposal of
the Group´s Russian operations in 2023. In
addition, ordinary dividends totalling 70.0
euro cents per share were paid to
shareholders representing a distribution of
€312 million.
Liquidity, treasury and
borrowings
Net debt at 31 December 2024 was
€1,732 million with net debt to underlying
EBITDA at 1.7 times (31 December 2023:
€419 million, 0.3 times), the increase in
leverage reflecting the ongoing investment
into the business and the special dividend
payment to shareholders in February 2024.
In April 2024, the Group repaid a €500
million Eurobond on maturity and in May
2024, issued a 3.75% €500 million
Eurobond with an 8-year tenor, thereby
extending the Group's maturity profile.
Mondi's available liquidity at 31 December
2024 was €1,028 million, comprising the
undrawn Syndicated Revolving Credit
Facility (RCF) of €750 million and cash and
cash equivalents of €278 million. The
weighted average maturity of our
committed debt facilities at the end of the
year was 3.9 years with no significant
short-term debt maturities. Our financing
agreements do not contain financial
covenants.
In addition, and effective from January
2025, we increased the RCF by €250
million (to €1 billion) to further strengthen
our liquidity position.
The Group maintains its investment grade
credit rating and has an A- (stable outlook)
credit rating from Standard & Poor’s and a
Baa1 (stable outlook) credit rating from
Moody’s.
Disciplined capital allocation
Strategic financial priorities
We believe that a strong and stable
financial position, supported by an
investment grade credit rating, increases
our flexibility and provides access to capital
markets through the business cycle.
This in turn allows us to invest through the
cycle and take advantage of strategic
opportunities when they arise.
We are focused on undertaking selective
organic capital investment opportunities in
our packaging businesses and supporting
the ordinary dividend. To the extent we
have capacity beyond these requirements,
we are able to consider acquisitions and/or
additional shareholder distributions.
We remain focused on allocating capital
while maintaining solid investment grade
credit metrics.
Ordinary dividend
The Board has recommended a final 2024
ordinary dividend of 46.67 euro cents per
share. This final ordinary dividend, together
with the interim ordinary dividend, amount
to a total ordinary dividend for the year of
70.0 euro cents per share, in line with both
2022 and 2023.
The final dividend is subject to the approval
of the shareholders of Mondi plc at the
Annual General Meeting scheduled for
Thursday 8 May 2025 and, if approved, will
be paid on Friday 16 May 2025 to
shareholders on the register at the close of
business on Friday 4 April 2025.
Mondi Group
Integrated report and financial statements 2024
28
Financial review continued
Movement in net debt (€ million)
(419)
1,049
(108)
(933)
(240)
(1,081)
(1,732)
Net debt at 31
December 2023
Underlying
EBITDA
Working capital
outflow
Capital
expenditure
Interest, tax
and other
Dividends
Net debt at 31
December 2024
0.3x
Net debt to
underlying
EBITDA
1.7x
Net debt to
underlying
EBITDA
Managing our financial risks
Our capital structure
Capital employed is used to fund our
business and is managed on a basis that
enables the Group to continue trading as
a going concern, while delivering attractive
returns to shareholders.
We maintain an appropriate capital
structure, with a balance between equity
and net debt, in order to sustain our
investment grade credit rating. We have
diverse sources of funding with various
debt maturities.
The primary sources of the Group’s liquidity
include our €3 billion Guaranteed Euro
Medium Term Note Programme, our
Syndicated Revolving Credit Facility that
was increased to €1 billion effective from
January 2025, and financing from various
banks, thus providing us with access to
diverse sources of debt financing with
varying debt maturities.
Currencies
Our global presence results in exposure to
foreign exchange risk in the ordinary course
of business. Currency exposures arise from
commercial transactions denominated in
foreign currencies, financial assets and
liabilities denominated in foreign currencies
and translational exposure on our net
investments in foreign operations.
Our policy is to fund subsidiaries in their
local functional currency wherever practical.
External funding is obtained primarily in
euros and, where required, converted into
the subsidiaries’ functional currencies via
foreign exchange swaps.
We hedge material net balance sheet
exposures and committed capital
expenditure. We do not hedge our
exposures to projected future sales or
purchases. We do not take speculative
positions with derivative contracts.
Tax
We aim to manage our tax affairs in
accordance with national legislative
provisions and within the guidelines set
down by the Organisation for Economic
Co-operation and Development (OECD),
including the OECD Pillar 2 model rules
which came into effect as of 1 January
2024. Our objective is to structure our
operations tax efficiently and take
advantage of available incentives and
exemptions provided by governments for
eligible capital investments, R&D and similar
expenditure. We do not enter into any
artificial arrangements and tax decisions
are made in response to business
transactions and activities.
Our approach to tax is formalised in our
publicly available tax strategy, which the
Board reviews and approves each year.
While ultimate responsibility for the tax
affairs of the Group rests with the Board,
the Executive Committee ensures that the
tax governance framework is aligned with
the principles of financial management
applied throughout the Group.
We have dedicated internal tax resources
throughout the organisation. This includes
a centralised Group Tax function, reporting
to the Group CFO, which is responsible for
providing operational guidelines aimed at
ensuring a robust tax control environment,
implementing risk management initiatives
and supporting local management on tax
matters. The Group Tax function partners
with our businesses to ensure any
commercial changes are aligned with tax
laws and regulations. In addition, we seek
regular professional advice to ensure that
we remain up to date with changes in tax
legislation, disclosure requirements and
best practices.
Tax risks are monitored on a continuous
basis and are more formally reviewed
by the Audit Committee twice yearly as
part of our reporting process. The Board
formally reviews tax management activities
on an annual basis. As Mondi operates
in a number of countries, each with a
different tax system, the Group is regularly
subject to routine tax audits and tax
authority reviews which may take a
considerable period of time to conclude.
We maintain a constructive dialogue with
tax authorities, working in a transparent
manner to resolve disputes. Where
necessary, provision is made for known
issues and the expected outcomes of
any negotiations or settlements.
Gross debt maturity profile
at 31 December 2024 (€ million)
Gross debt composition
at 31 December 2024 (€ million)
Mondi Group
Integrated report and financial statements 2024
29
Within 1 year
1-2 years
2-5 years
>5 years
63
625
783
544
Bonds
Bank loans and overdrafts
Lease liabilities
1,842
45
128
The Mondi Action Plan 2030 (MAP2030) sets out our targets, actions and milestones to meet
our ambitious 2030 sustainability commitments. MAP2030 is built on our purpose to contribute
to a better world by making innovative packaging and paper solutions that are sustainable
by design.
Our approach
Sustainability is at the core of our strategy.
Our MAP2030 framework sets out the three action
areas we focus on to enable us to deliver our
strategy, create value for our stakeholders, grow
our business and have the most positive impact.
These three action areas are Circular Driven
Solutions, Created by Empowered People,
Taking Action on Climate.
Our strategy
Page 14-20
Each MAP2030 action area has commitments
that are underpinned by targets so we can
monitor and communicate our progress.
Our action areas are supported by responsible
business practices covering human rights,
communities, responsible procurement
and environmental performance.
On the following pages, we report on our
MAP2030 progress in 2024 and how
it contributes to our strategy and continued
success.
Sustainability KPIs covering key MAP2030
action areas represent 20% of the Group’s
annual bonus metrics.
Remuneration report
Page 111-135
Built on Responsible Business Practices
Human rights | Communities | Procurement | Environmental performance
We are recognised as a leader in sustainability by external corporate ratings and indices
CDP
MSCI ESG Rating
ISS ESG
Sustainalytics
A List, with double ‘A’ for climate
change and forests and an ‘A-’
score for water
Top ‘AAA’ score for strong
resilience to environmental,
social and governance risks
‘Prime’ rating as the highest
sector-specific score for ESG
performance
Ranked first in Paper and
Forestry industry out of 76
companies rated in the sector
(January 2025)
Transition Pathway Initiative
1 of 4 companies (out of 35)
with a transition planning and
implementation Level 5 rating
Carbon performance aligned
with Paris Pledges
FTSE4Good Index Series
EcoVadis
WBCSD’s Reporting Matters
Member of Index Series,
demonstrating strong ESG
practices
Platinum status as one
of the top 1% globally in
EcoVadis Corporate Social
Responsibility ratings
Included in ‘Top performer’
category since 2018 by
WBCSD and Radley Yeldar
Mondi Group
Integrated report and financial statements 2024
30
Mondi Action Plan 2030
Our sustainability framework
Our material sustainability topics
Our double materiality assessment
Under the EU Corporate Sustainability
Reporting Directive (CSRD), double
materiality considers impacts, risks
and opportunities from financial and
non-financial perspectives. Our double
materiality assessment considers how
our internal operations and due diligence
systems monitor, assess and manage our
impacts, risks and opportunities, as well
as how our operations affect the
environment and society.
In 2023, we conducted a double
materiality assessment in line with
the European Sustainability Reporting
Standards (ESRS). We consider a
sustainability topic as material when it
meets the following (either or both):
– Impact material: our actual or
potential, positive and negative
impacts on people or the
environment.
– Financially material: sustainability
information, risks and opportunities
which, if left out, misrepresented
or hidden, could influence
financial decisions.
Our comprehensive double materiality
process included desk-based
research, internal and external
stakeholder engagement and a
financial materiality assessment.
The outcomes were approved by
the Sustainable Development
Committee (SD Committee).
Outcomes
We have identified 10 material
sustainability topics, which align with
our MAP2030 commitments.
Climate change mitigation is the top
priority for our stakeholders, with
customers and investors paying close
attention to our Net-Zero progress.
Circularity is the most important topic
for our customers. They see Mondi as a
trusted supplier of fibre-based products
and rely on our policies for responsible
sourcing and human rights practices.
Environmental topics are highlighted
in our outward impacts, given our
reliance on natural resources and
energy consumption in manufacturing.
Read more about our double materiality
process in our 2023 Sustainable
Development report
www.mondigroup.com/sd23
External assurance
ERM Certification and Verification
Services Limited (ERM CVS) has provided
third-party reasonable assurance on our
Scope 1 and 2 GHG emissions and limited
assurance on other selected sustainability
information and KPIs, including whether
our Sustainable Development report has
been prepared in accordance with the
GRI Universal Standards (2021) and
the SASB: Containers & Packaging
Industry Standard.
The signed ERM CVS Independent
Assurance Report is in our 2024
Sustainable Development report.
Our Sustainable Development reporting suite
Visit our website to find our full suite of detailed sustainability insights,
including our MAP2030 2024 progress:
– Sustainable Development report
– ESRS & Performance index
– GRI & SASB index
– GRI Biodiversity disclosures
Read more on our sustainability reports and publications
www.mondigroup.com/sustainability/
reports-and-publications
Mondi Group
Integrated report and financial statements 2024
31
MAP2030 areas
Material topics
Circular economy
Product quality and safety1
Diversity, equity and inclusion1
Working conditions and human rights1
Biodiversity and fibre sourcing
Climate change adaptation2
Climate change mitigation
Energy
Water
Business conduct2
1
Only material from an impact perspective.
2
Only financially material.
Innovative packaging and
paper solutions that keep
materials in circulation
and prevent waste
2024 performance
Make our packaging and paper
solutions reusable, recyclable
or compostable
100% of our packaging and
paper products are reusable,
recyclable or compostable
by 2025
ò
Avoid waste by keeping materials
in circulation
Eliminate waste to landfill from
our manufacturing processes
ò
Work with others to eliminate
unsustainable packaging
Progress made through our
partnerships and stakeholder
engagement activities
each year
ò
Circular Driven Solutions
Page 33-36
An empowered and
inclusive team that
contributes to a
better world
2024 performance
Build skills that support long-
term employability
Enable our employees
to participate in
upskilling programmes
ò
Provide purposeful employment
for all our employees in a diverse
and inclusive workplace
Achieve 90% Purpose
Satisfaction score in our
Employee Survey
ò
Achieve 90% Inclusiveness
score in our Employee Survey ò
Employ 30% women
across Mondi
ò
Create an environment that
enables a positive work-life
experience, valuing our safety,
health and mental wellbeing
Zero fatalities
ò
Zero life-altering injuries
ò
15% reduction of Total
Recordable Case Rate
ò
Support our employees
in pursuit of a work-life
experience that enhances
their wellbeing
ò
Our operations drive
awareness of and take
measures to improve health
and mental wellbeing
ò
Created by Empowered People
Page 37-40
Climate resilience
through our forests
and operations for the
future of the planet
2024 performance
Reduce our greenhouse gas
emissions in line with science-
based Net-Zero targets
Reduce Scope 1 and 2 GHG
emissions by 46.2% by 2030
from a 2019 baseline
ò
Reduce Scope 3 GHG
emissions by 27.5% by 2030
from a 2019 baseline
ò
Reduce Scope 1, 2 and 3 GHG
emissions by 90% by 2050
from a 2019 baseline
ò
Maintain zero deforestation in
our wood supply, sourcing from
resilient forests
Maintain 100% FSCTM
certification in our own
forestry landholdings
ò
100% responsibly sourced
fibre with 75% FSCTM- or
PEFC-certified fibre procured
by 2025 and the remainder
meeting the FSC Controlled
Wood standard
ò
Implement leading
forestry measures to
ensure productive and
resilient forests
ò
Safeguard biodiversity and
water resources in our operations
and beyond
Conduct water stewardship
assessments at our mills and
forestry operations by 2025,
and implement required
actions to address the findings
by 2030
ò
Conduct biodiversity
assessments at our mills and
forestry operations, introducing
biodiversity action plans where
necessary by 2025
ò
Taking Action on Climate
Page 41-45
Mondi Group
Integrated report and financial statements 2024
32
Mondi Action Plan 2030 continued
Delivering on our MAP2030 commitments
Read the SD report for more information on
our performance key page 106
2024 performance key
Completed
ò On track
ò Behind target
ò Not on track
Material topics
– Circular economy
– Product quality and safety
Innovative packaging and paper solutions that
keep materials in circulation and prevent waste
Our approach
Sustainable packaging has moved from
being a preference to a necessity, driven
by growing customer and consumer
requirements and stricter regulations, such
as the Packaging and Packaging Waste
Regulation (PPWR). Global investment,
collaboration and innovation in sustainable
solutions are accelerating. As a leading
packaging and paper producer, we aim
to capture these opportunities.
We are committed to: making all our
packaging and paper solutions reusable,
recyclable, or compostable; avoiding waste
by keeping materials in circulation; and
working with partners to eliminate
unsustainable packaging.
We collaborate along the value chain to
produce innovative, sustainable packaging
and paper solutions to position Mondi as
the partner of choice for our customers,
and drive our future growth. We focus on
high product quality, which is one of our
material topics, to meet customer
expectations, as well as eliminating waste
and using our resources wisely.
Circularity is at the core of our product
development. We consider the
sustainability performance of our products
at each stage of the value chain: from how
we source raw materials to ensuring
material efficiency, product design and
safety, as well as giving products a
sustainable end-of-life. This is another
material issue for our stakeholders.
Read more on our Sustainable Design Principles
www.mondigroup.com/sustainability/mondi-
action-plan-2030/circular-driven-solutions/
Our leading innovation capabilities,
strong market position and long-standing
customer relationships allow Mondi
to develop solutions that support the
transition to a circular economy and
create positive impact at scale.
Sustainability is a clear driver of our future
business growth. For example, our 2024
eCommerce survey shows that around 80%
of consumers are demanding sustainable or
recyclable eCommerce packaging.
Read more in our eCommerce trend report
www.mondigroup.com/news-and-insight/
Mondi Group
Integrated report and financial statements 2024
33
Circular Driven Solutions
Sustainable by design: ProVantage SmartKraft Brown and White
An innovative blend of fresh and recycled fibres
ProVantage SmartKraft White and ProVantage SmartKraft Brown combine sustainability, strength
and printability. Made with 100% fresh fibre on top and 100% recycled fibre underneath, they are
fully recyclable and responsibly sourced. ProVantage SmartKraft White offers excellent printability,
while ProVantage SmartKraft Brown excels in strength and runnability.
Read more about our products
www.mondigroup.com/products-and-solutions/explore-solutions/
Commitment: Make our packaging and paper solutions reusable, recyclable or compostable
Target
Performance against baseline
This year at a glance
2023
2024
100% of our packaging and paper
products are reusable, recyclable
or compostable by 2025
ò
ò
In 2024, 87% of products were reusable, recyclable or
compostable based on revenue (2023: 85%). With our entire
Corrugated Packaging and Uncoated Fine Paper businesses
compliant, we are working to close the gap in our Flexible
Packaging business. We had a sustainable alternative in place, or
identified and in development, for 97% of our Flexible Packaging
products (2023: 94%).
As a market leader, we are
driving the circular economy
for packaging and transforming
our portfolio to support a
regenerative, low-carbon
circular economy that
eliminates waste and helps
our customers to transition
to sustainable packaging.
We take a science-based, material-agnostic
approach to identify the optimal solution
for each specific application. Over 2024,
we have increased the proportion of our
revenues from products that are reusable,
recyclable or compostable to 87% (up from
85% in 2023).
With the portfolios of our Uncoated Fine
Paper and Corrugated Packaging business
units 100% recyclable or verified as
compostable, we are focused on closing
the gap in our Flexible Packaging business.
To drive progress in 2024, we had a
sustainable alternative in place, or identified
and undergoing development, for 97% of
our Flexible Packaging products, up from
94% in 2023 (based on revenue). Our aim is
to have 100% circular alternatives in place
by the end of 2025, with a clear focus on
targeted product innovation initiatives, for
example to meet high shelf life or burst
resistance requirements with a recyclable
or compostable solution.
Our Path to Circularity
To be deemed circular, Mondi products
must be designed to achieve a sustainable
end-of-life. To ensure we are sustainable
by design throughout our packaging and
paper portfolio, our seven Sustainable
Design Principles (SDP) encompass
different dimensions of sustainability.
Our SDP guides our product development
and innovation teams, and are integrated
into our Path to Circularity Scorecard,
which offers a clear definition for reusable,
recyclable and compostable solutions and
enables us to measure our progress
towards our commitment.
Enhancing our assets and
innovation capabilities
We are investing in our quality assets
to drive growth, improve our cost
competitiveness, and enhance sustainability,
product quality and customer service.
For example, our €400 million investment
into a new kraft paper machine in our Štětí
mill (Czech Republic) will help us grow the
share of renewable and fully recyclable
solutions for the market. We also continue
to invest in R&D, with €31 million invested
(2023: €30 million) to improve our
product innovation capabilities, process
technologies, energy and material efficiency
and support close collaboration across the
value chain.
FlexStudios, our new innovation hub for
Flexible Packaging in Germany, enables our
customers to participate in the innovation
process and reduces time-to-market for
new packaging and paper solutions. In our
Corrugated Packaging business, we also
have three ‘ThinkBox’ engagement centres
to support innovation for customers
in Europe.
Award-winning solutions
We are exploring ways to achieve sustainable
packaging with more durability, safety,
flexibility and effective barrier protection.
We received ten 2025 WorldStar
Packaging awards, the highest number
of awards in a single year in our history.
Our new innovative Protective Mailer,
developed with Amazon, and launched in
2024, was also recognised with multiple
awards from EUROSAC and 4evergreen,
among others. This new sustainable
packaging provides protection equivalent
to traditional bubblewrap plastic-padded
envelopes, and addresses customer
demand for easily recyclable packaging
that delivers strong protection for
damage-free delivery.
Focus on quality
Our high-quality packaging and paper
solutions are subject to stringent regulation
and comply with all relevant health, hygiene
and quality requirements. Our Group-wide
quality KPIs are part of Mondi’s Quality
Performance Measurement System, which
aims to improve customer satisfaction and
reduce customer complaints and customer
net claim costs. Our first-time right
approach to quality ensures on-time and
in-full delivery of in-specification products
and saves resources and waste while
reducing associated costs.
A life cycle-based approach
We continue to enhance our life cycle-
based tools and assessments for
customers, looking at both carbon
and water scarcity with our in-house
Product Impact Assessment tool.
Demand continues to grow, with ever
more requests by customers to support
their decarbonisation efforts and achieve
their own sustainability targets.
1,776
products assessed using our in-house
life cycle-based tools
Reusable, recyclable or compostable
products
(% of Group revenue)
Mondi Group
Integrated report and financial statements 2024
34
Mondi Action Plan 2030 continued
Circular Driven Solutions continued
74%
77%
82%
85%
87%
2020
baseline
2021
2022
2023
2024
Commitment: Avoid waste by keeping materials in circulation
Target
Performance against baseline
This year at a glance
2023
2024
Eliminate waste to landfill from
our manufacturing processes
ò
ò
In 2024, specific waste to landfill decreased by 4% since last
year, and decreased by 46% compared with our 2020 baseline,
mainly due to projects in Richards Bay (South Africa), Kuopio
(Finland) and Dynäs (Sweden).
Our approach to circular design
considers the full product life
cycle to avoid waste. We see
waste to landfill as lost
resources, and are committed
to finding alternative uses
for our waste streams.
In 2024, 73% of our manufacturing waste
was recycled or repurposed. Less than 8%
was landfilled. We recognise the
opportunity to progress in our target
to eliminate waste to landfill, reduce
related costs and generate additional
revenue streams by selling by-products
from our processes.
In the long term, our ambition is to eliminate
all waste to landfill from our manufacturing
processes. In addition to this absolute
reduction, we measure our waste to landfill
as a proportion of the amount we produce
(referred to as specific waste to landfill per
tonne of saleable product). We have a
target to reduce specific waste to landfill
by 30% by 2030, against a 2020 baseline.
Responsible Business Practices
Page 46-49
Transforming waste to
secondary raw materials
Through innovation and collaboration, we
maximise resource efficiencies and turn
production waste into valuable secondary raw
materials, rather than landfilling and losing
these resources. For example, we use ash
from our bark boilers for brick production.
The use of biogenic fuels is another key
lever to achieve sustainability goals in
the pulp and paper industry. In 2024, we
implemented a new conversion technology
that turns biogenic residues, which are
waste materials from natural resources,
into process energy. This process enables
us to replace fossil fuels with fuels from
renewable sources, supporting a lower
carbon footprint. As an example, tall oil
is a by-product that can be extracted
and used as an alternative fuel source
in our lime kilns.1 It has a heating value
comparable to heavy fuel oils but with
a lower sulphur content, which reduces
emissions and contributes to a lower
carbon footprint.
Partnering for waste solutions
We continue to partner with our customers
to develop innovative solutions to reduce
waste and re-use production materials.
Through strategic partnerships in 2024,
two Mondi production sites are now able
to repurpose 95% of their production
waste, which was previously used for
energy generation.
The elimination of green liquor dregs2
remains an ongoing challenge for our mills.
We have reduced green liquor dregs by
developing calcium carbonate free filtration
technologies, and continue to work on
solutions to eliminate the need for
landfilling green liquor dregs.
As part of the TU-Austria Innovation
Marathon in 2024, we launched a scientific
challenge on green liquor dregs and will
develop the most promising concepts
together with partners from academia
and industry.
Our Richards Bay mill (South Africa) has
significantly reduced waste to landfill in
recent years by using effluent fibre as
landfill cover. At our Dynäs mill (Sweden),
we have reduced specific waste to landfill
by reducing lime mud consumption in the
green liquor dregs filtration process.
Additionally, we are using the mill’s bark
boiler ash for road construction, and
reduced green liquor sludge by optimising
the chemical recovery processes. In Finland,
ashes from our Kuopio mill are being used
for sanding roads.
ESRS & Performance index
www.mondigroup.com/esrsperformance24
46%
reduction of specific waste to landfill
from our manufacturing processes
since 2020
Read more in Environmental performance
Page 46
Mondi Group
Integrated report and financial statements 2024
35
1 A lime kiln uses heat, motion and air flow to convert
lime mud (calcium carbonate) to lime (calcium oxide).
Lime is used in several applications in pulp and paper
mills, including the pulping process.
2 Green liquor dregs are residues formed during the
kraft pulp process and typically contain sodium
carbonate, calcium carbonate and sodium sulphide, as
well as some other insoluble solids in small quantities.
Commitment: Work with others to eliminate unsustainable packaging
Target
Performance against baseline
This year at a glance
2023
2024
Progress made through our partnerships
and stakeholder engagement activities
each year
ò
ò
We actively collaborated with cross-value chain initiatives and
multiple industry associations, including 4evergreen, FEFCO,
Cepi and CEFLEX on emerging legislation.
With the scale of our business
and close collaboration with
our customers and across our
value chain, we can lead the
way and drive the transition
to sustainable packaging and
paper solutions in the industry.
As well as tackling climate change,
sustainable packaging has a vital role to
play in product protection, particularly for
food packaging where meeting shelf-life
requirements and keeping contents safe
for consumption help to eliminate food
waste. There is ever increasing demand for
innovative solutions that address different
industry and customer needs, including
low-carbon, fully recyclable and/or
compostable solutions.
Driving progress across the
packaging industry
In partnership with industry associations
and by leveraging our long-standing
relationships with our customers, we
are innovating for a sustainable,
circular economy.
We see an increasing number of
organisations joining leading value chain
initiatives and helping to develop design
guidelines, from 4evergreen and CEFLEX,
with the potential for adoption under the
Packaging and Packaging Waste
Regulation secondary legislation.
Sharing best practice
We share our expertise and innovations
with leading research institutions and
industry organisations. For example,
together with our partners, we are piloting
a new collection and recycling system for
used industrial paper bags. Building on a
pilot in Spain, the ‘Paper Sacks Go Circular’
initiative is now being scaled across
Europe. Over 60 companies have joined
the initiative, with more than 170
construction sites engaged in segregating
waste materials, including paper bags.
Together with Biedronka, Poland’s
largest retail chain, we have formed
a sustainable closed-loop programme
to encompass the supply, collection,
recycling and reproduction for Mondi
Corrugated Packaging.
We are a signatory to the Ellen MacArthur
Foundation’s (EMF) Global Commitment
to eliminate plastic pollution and create
100% reusable, recyclable or compostable
plastic packaging by 2025. We report
annually to EMF on our progress against
these commitments and how we are
designing our plastic solutions for recyclability.
Contributing to UNICEF's
Project Play
In 2024, we had the opportunity to
contribute to UNICEF’s Project Play, which
aims to repurpose cardboard boxes and
other packaging as fun, inclusive and
appropriate toys to support Early
Childhood Development interventions
for malnourished children in nutrition
programmes. Colleagues participated in
an ideation workshop and helped to create
guidelines for advancing inclusive play
while supporting sustainability through
repurposing of packaging.
Renewal of World Food
Programme partnership
Building on the positive contributions
made in our collaboration with the UN
World Food Programme (WFP), we
renewed our partnership agreement at the
end of 2024. Over the next three years,
we will provide our packaging expertise
and R&D infrastructure to help WFP to
continue to optimise its packaging, while
minimising the environmental impacts of
its life-saving operations.
What’s next in Circular
Driven Solutions?
– Accelerate the transition to
circular solutions through
continued close engagement
with our customers.
– Continue to support our
customers to achieve their
decarbonisation targets through
our product impact assessments.
– Continue to explore ways to
eliminate waste from our
production processes and
repurpose waste as input for
secondary raw materials.
– Maintain our engagement with
our industry associations, the
CEN standardisation committees
and the European Commission
on how to harmonise the
assessment of packaging
recyclability.
Mondi Group
Integrated report and financial statements 2024
36
Mondi Action Plan 2030 continued
Circular Driven Solutions continued
Sustainable by design: Ad/Vantage TrayWrap
The replacement for plastic shrink film
Ad/Vantage TrayWrap is a paper-based alternative for plastic tray wrapping. Made from
our Ad/Vantage StretchWrap, it is used for bundling products such as coffee packs, liquid
cartons and folding boxes during transport, and is removed at the point of sale.
Read more about our products
www.mondigroup.com/products-and-solutions/explore-solutions/
Material topics
– Diversity, equity and inclusion
– Working conditions and human
rights
An empowered and inclusive team that
contributes to a better world
Our approach
We aim to be an employer of choice by
creating an inspiring, inclusive and safe
workplace that empowers our people
to perform at their best. By fostering
an environment where employees
feel supported and valued, we enable
innovation, drive growth and secure
the long-term success of our business.
At Mondi, we believe that a committed
and engaged workforce is integral to
achieving our MAP2030 targets and
fulfilling our purpose.
With 22,000 Mondi employees across more
than 30 countries, our MAP2030 framework
outlines clear commitments to empower
our people. We are dedicated to building
skills that enhance long-term employability,
offering purposeful employment in a
diverse and inclusive workplace, and
creating an environment that values safety,
health and mental wellbeing. This holistic
approach reflects our belief that a thriving
workforce underpins a thriving business.
Skill-building for long-term employability
is central to our strategy. We aim to equip
our people with the tools they need to
adapt to a fast-changing industry, ensuring
both their personal growth and Mondi’s
ongoing success. From technical upskilling
to leadership development, we are
committed to fostering a culture of
continuous learning.
We aim to foster an inclusive and purpose-
driven workplace, where every employee
feels respected, treated fairly and
empowered to excel. This commitment
extends to people with disabilities aiming
to provide them with equal career and
learning opportunities at Mondi. Diversity
is key to unlocking innovation and fostering
collaboration, which is why we strive
to build teams that reflect the diverse
communities in which we operate.
Safety is a non-negotiable priority,
particularly given the high-risk nature of
some of our operations. Every employee
and contractor should return home safely
each day.
To achieve this, our safety approach is
rooted in the Social Psychology of Risk,
which emphasises three key dimensions:
– Workspace: focusing on the physical
aspects and controls related to the
working environment;
– Headspace: understanding why people
make decisions, which influence safe or
unsafe behaviour; and
– Groupspace: influencing the culture
and promoting the need to take care
of each other.
By focusing on proactive engagement, risk
identification, appropriate controls, and
regular evaluation of their effectiveness,
we aim to foster a workplace where safety
and health remain a high value.
Furthermore, we recognise the importance
of supporting a positive work-life balance,
and promote physical and mental wellbeing
at our operations. Mondi continues to build
a resilient and empowered workforce
aligned with our MAP2030 targets,
supporting the long-term prosperity of
our people, business and the communities
we serve.
Mondi Group
Integrated report and financial statements 2024
37
Created by Empowered People
Commitment: Build skills that support long-term employability
Target
Performance against baseline
This year at a glance
2023
2024
Enable our employees to participate
in upskilling programmes
ò
ò
Mondi colleagues participated in multiple people development
initiatives, including Mondi Academy, talent and graduate
programmes, and performance and development reviews.
Providing lifelong learning
opportunities is part of our
responsibility as a global
employer and supports long-
term employability.
We aim to attract, develop and retain the
right people for each position and offer
individual development opportunities that
align with both individual aspirations and
our business objectives.
We are committed to offering consistent
and fair training, career development
and promotions.
Developing potential at Mondi
Throughout their Mondi career, we provide
our employees with continuous learning
opportunities via the Mondi Academy,
our Group-wide training hub, with local
academies in Czech Republic, Poland,
Slovakia, South Africa and the USA.
We offer ongoing learning and coaching,
including in relation to leadership skills
and personal development. Our learning
portfolio also includes business-sponsored
expert academies, with well-established
programmes and clear business outcomes.
Our comprehensive training offering
demonstrates progress against our
MAP2030 commitment to enable our
people to participate in upskilling
programmes.
Our mentoring programmes nurture talent
and facilitate succession planning, and
contribute to fostering diversity and
inclusion at Mondi. By pairing individuals
from different backgrounds, genders or
cultures, mentorship can break down
barriers and provide an opportunity for
cross-cultural learning.
Early career development
We offer multiple early career development
programmes to build a strong and diverse
talent pipeline and encourage our
employees from the early stages to
pursue leadership or expert positions.
Our International Graduate Programme
provides graduates with the opportunity
to gain experience in different Mondi
locations and departments over 18 months.
The programme supports Mondi’s position
as employer of choice, empowering a
diverse base of talent in terms of gender,
nationality and academic background.
We work to encourage more internal
cross-business placements within Mondi,
for example through our NEXGEN training
programme for emerging leadership talents,
which includes experience-based learning,
regular exposure to senior management,
networking opportunities, plant visits
and competency building. After our first
NEXGEN programme, 67% of participants
transitioned to new roles.
Recognising outstanding
employee performance
We carry out structured Performance and
Development Reviews between employees
and their managers to reflect on individual
performance and set goals. We have a
number of performance-related pay
schemes that reward employees for the
pursuit and achievement of business
objectives, in which the majority of our
employees participate.
Our global Mondi Diamond Awards
recognise outstanding achievements
and initiatives from employees across
our operations. In 2024, eight teams
won Mondi Diamond Awards for
achievements in product innovation and
customer collaboration, energy resilience,
operational excellence, diversity and
inclusion and safety.
566,333
training hours completed by
employees and contractors in 2024
Our strategy – Empower our people
Page 19
Mondi Group
Integrated report and financial statements 2024
38
Mondi Action Plan 2030 continued
Created by Empowered People continued
Commitment: Provide purposeful employment for all our employees in a diverse and inclusive workplace
Target
Performance against baseline
This year at a glance
2023
2024
Achieve 90% Purpose Satisfaction score
in our Employee Survey
ò
ò
Following up on our latest Employee Survey in 2023, where we
achieved a 79% score in the Purposeful Workplace Index, we
conducted a 'Safe to Speak Up' pulse survey in 2024 to
address this area of improvement identified.
Achieve 90% Inclusiveness score in our
Employee Survey
ò
ò
In our latest Employee Survey in 2023 we achieved a 77%
Inclusiveness score. In 2024, we continued initiatives such as
the Employee Resource Groups and Curious Community.
Employ 30% women across Mondi
ò
ò
23.4% women employed across Mondi, representing an
improvement on last year (2023: 22.6%), but still behind target.
At Mondi, a diverse and
inclusive workplace includes
understanding, accepting and
valuing differences between
people. Fostering this positive
culture is essential to our business
success and driving real change.
We want all our employees to feel they
belong at Mondi and enjoy working here,
so they can thrive at work.
Engaging to listen
and understand
We maintain high levels of engagement
with our employees throughout the year on
global and local levels to listen to what our
employees are saying on key topics, capture
their feedback and understand where we
need to improve. We use formal and
informal processes including our intranet,
local engagement sessions, virtual events for
all colleagues, management dialogues and
employee surveys. In 2024, we introduced
Viva Engage as a new social engagement
channel that connects all Mondi employees,
including production colleagues.
Encouraging new ideas
We believe ‘safe to speak up’ means that
someone feels free and safe to ask for
help, admit mistakes, raise concerns,
suggest new ideas, challenge ways of
working and question each other’s ideas.
We believe that it can lead to enhanced
productivity, with our employees looking
after the safety of others, as well as
supporting each other.
Over the past year, we have implemented
local actions across the Group to address
issues raised in the 2023 Employee Survey.
On a Group level we been looking at how
we can promote psychological safety and
reinforce a culture of listening and caring.
As part of this, we conducted a pulse survey
on speaking up in 2024, which had a 78%
participation rate. This high level of
engagement provides us with a
representative sample and enables us
to take meaningful action across the
organisation as we work towards meeting
our 2030 milestones of 90% Purpose
Satisfaction and Inclusiveness scores.
Embedding inclusion at work
Through our nine Employee Resource
Groups, we encourage employee
engagement, foster inclusivity and gain
access to a richer pool of ideas from
diverse perspectives. These groups
embody our commitment to a workplace
that celebrates diversity, encourages
dialogue and empowers every individual.
In 2024, we hosted 36 ERG-related events.
Opportunities for women
at Mondi
We aim to be an inclusive employer with
inspiring female role models and attractive
career opportunities for women. While
attracting women to our manufacturing
operations can be challenging, especially
in remote locations, we are committed to
increasing female hires through targeted
initiatives and fostering a workplace where
women can thrive.
There are multiple initiatives to increase
the rate of female hires in Mondi and we
recognise that we need to continue working
on becoming an attractive employer for
women. For example, we have invested in
increasing our visibility at career events for
attracting women to tech-related jobs and
ran a series of engaging events across
universities in Poland aimed at women. We
created a clear information campaign on
recruiting more women featuring evidence-
based tips and case study examples from
different locations to support sharing
information and learning from our successes.
At the end of 2024, we had 23.4% female
employees (2023: 22.6%), showing an
improvement over last year but still behind
target. In 2024, 32.3% of all new hires were
women (2023: 28.4%), with significant
variations between individual operations
and functions. The female representation
on our Executive Committee was 29%
(2023: 17%). We had 40% female directors
on the Mondi Board (2023: 40%).
ESRS & Performance index
www.mondigroup.com/esrsperformance24
Nominations Committee
Page 94-98
Mondi Group
Integrated report and financial statements 2024
39
Gender diversity 2024
Male
%
Female
%
Other**
%
Directors
6
60.0%
4
40.0%
—
—%
Senior managers*
177
79.0%
47
21.0%
—
–%
Employees***
17,032
76.6%
5,207
23.4%
1
–%
* As at 31 December 2024. Senior managers as defined by Mondi and including directors of all subsidiaries in
accordance with the definition set out in Section 414C of the UK Companies Act 2006.
** Not specified/prefer not to say.
*** Headcount of employees that are active or on leave as at 31 December 2024.
Commitment: Create an environment that enables a positive work-life experience, valuing our
safety, health and mental wellbeing
Target
Performance against baseline
This year at a glance
2023
2024
Zero fatalities
ò
ò
Regrettably, we had an employee fatality at our Merebank mill
(South Africa) which occurred during a routine maintenance activity.
Zero life-altering injuries
ò
ò
We sadly had three life-altering injuries in 2024: in our Bupak
plant (Czech Republic), Tire mill (Türkiye) and Wellsburg, West
Virginia plant (USA).
15% reduction of Total Recordable
Case Rate
ò
ò
Our Total Recordable Case Rate (TRCR) of 0.68 in 2024
reflects a 2% increase compared with our 2020 baseline, and
an increase of 7% since last year.
Support our employees in pursuit of
a work-life experience that enhances
their wellbeing
ò
ò
We have achieved a 77% score in our Wellbeing Index in our
Employee Survey in 2023. In 2024, we promoted the Mental
Health Awareness Month and local initiatives were launched,
for example in Mondi Thailand and Mondi Jackson (USA).
Our operations drive awareness
of and take measures to improve
health and mental wellbeing
ò
ò
Professional counselling is accessible for 100% of our
employees through our Employee Assistance Programme
(EAP) and EAP-equivalent system for support and help (up
from 94% in 2023).
We focus on our top safety
and health risks at sites,
aiming at preventing fatalities
and life-altering injuries,
improving occupational
health and reducing injuries.
We strive to ensure that
everybody returns home safely
every day and prioritise health
and mental wellbeing.
Although we are one of the safety leaders
in our industry, regrettably we had an
employee fatality during a routine
maintenance activity at our Merebank mill
(South Africa) during the year.
Unfortunately, we also experienced three
life-altering injuries where three colleagues
suffered serious injuries to their fingers.
All our incidents were investigated
thoroughly to identify the root causes and
contributing factors, and the necessary
actions were taken to reduce our risks
and prevent reoccurrences. Outcomes of
investigations were shared among all our
operations to ensure common learning.
If an employee suffers a life-altering injury
at work, we facilitate medical treatment and
rehabilitation, and support their continued
employment by finding alternative
equivalent jobs for them, where required.
Putting people at the centre
To drive continuous improvement in our
culture and safety performance, our
approach encompasses the Social
Psychology of Risk (SPoR). As an evolution
from traditional safety, this approach aims
to balance workplace controls and
psychological and cultural influences.
Over the past three years, all safety and
health professionals and around 400
leaders were trained in the fundamentals
of SPoR and our Engagement Board tool,
which facilitates open conversations within
teams on safety and health topics.
Risk-based approach
Risk assessments are crucial and our
operations are required to consider the
top three risk controls – elimination,
substitution and engineering – before
considering administrative controls or
issuing personal protective equipment.
Our risk assessments are based on SPoR,
and include behavioural, psychological,
social, cultural and sub-cultural influences.
We train and engage with our employees
during risk assessment processes,
and regularly revise assessments
when necessary.
Projects and maintenance shuts
Annual maintenance shuts to maintain,
replace or upgrade machinery and
equipment, as well as other complex and
large projects, involve non-routine work,
with many employees and contractors
working on-site at the same time.
Some of our highest-risk activities occur
during these times and therefore the Group
Safety and Health network focuses on pre-
shut risk assessments with selected
contractors. This process has led to the
elimination of fatalities and life-altering
injuries during our shuts and large projects
in recent years.
We also support our contractors to
manage safety and health risks and align
with Mondi’s requirements. This also
includes driving awareness for our SPoR
approach when working at our sites.
Caring about health and
wellbeing
We promote occupational health
programmes and support mental wellbeing
initiatives tailored to local needs. In 2024,
Mondi Jackson (USA) organised voluntary
workshops on retirement savings for
employees to address concerns expressed.
As of 2024, all employees had access to
the EAP or an EAP-equivalent offer,
providing support for professional or
personal matters as needed.
What’s next in Created by
Empowered People?
– Continue to foster belonging
through Employee Resource
Group activities.
– Operationalise our action plans
from the 2024 ‘Safe to Speak
Up’ pulse survey to foster a
culture of transparency and
continuous learning.
– Advance efforts to ensure our
hiring practices contain no bias and
invest in our internal talent pipeline
through accelerated development
programmes for diverse talent.
– Address our high-risk activities,
including working with moving and
rotating equipment, as well as
workplace transportation.
– Continue our focus on large
projects and annual maintenance
shuts and maintain our
engagement with our contractors.
Mondi Group
Integrated report and financial statements 2024
40
Mondi Action Plan 2030 continued
Created by Empowered People continued
Material topics
– Biodiversity and fibre sourcing
– Climate change adaptation
– Climate change mitigation
– Energy
– Water
Climate resilience through our forests and operations
for the future of the planet
Our approach
The climate crisis is the most pressing
global challenge of our time, requiring
businesses to adopt proactive strategies
that address both immediate and
long-term risks. At Mondi, we recognise
the need for bold action to contribute
to the rapid and substantial reduction in
greenhouse gas (GHG) emissions needed
to limit global warming to 1.5°C.
Our climate action is designed to address
the interconnected challenges of climate
change, deforestation, water scarcity and
biodiversity loss. These issues are deeply
intertwined, and tackling them holistically
is central to our MAP2030 commitments.
We are focused on reducing GHG
emissions, improving the resilience of
forests, and managing our impacts on
biodiversity and freshwater ecosystems.
As part of our commitments to climate
action, we are driving the transition to a
low-carbon economy. In 2022, we were
one of the first companies in the packaging
and paper industry with approved science-
based Net-Zero targets.
These ambitious targets address GHG
emissions across both our operations and
supply chain and are aligned with the
reductions required to limit the global
temperature rise to 1.5°C.
Achieving these targets requires ongoing
investment. We are prioritising energy and
process efficiency improvements at our
operations, as well as increasing the use of
renewable energy sources. These efforts
are critical to reduce our carbon footprint
while ensuring our operations remain
resilient and efficient.
As a business reliant on responsibly
sourced wood fibre, maintaining zero
deforestation across our forestry
operations and supply chain is fundamental
to our success. Forests contribute to
mitigating climate change by storing
carbon above and below ground, as well
as enabling a low carbon bioeconomy.
We are committed to maintaining
responsible wood sourcing throughout
our supply chain.
Water and biodiversity are equally
important topics to our climate action.
We are committed to managing our
impacts and dependencies on water
resources, promoting their efficient use
and protecting biodiversity to maintain
the resilience of ecosystems.
By taking a holistic approach to climate
action, we strive to protect natural
resources, while strengthening our
operational resilience and enhancing
long-term value for our stakeholders.
TCFD
Page 52-59
Mondi Group
Integrated report and financial statements 2024
41
Taking Action on Climate
Commitment: Reduce our greenhouse gas emissions in line with science-based Net-Zero targets
Target
Performance against baseline
This year at a glance
2023
2024
Reduce our Scope 1 and 2 GHG emissions
by 46.2% by 2030 from a 2019 baseline
ò
ò
Absolute Scope 1 and 2 emissions decreased by 31%
compared with our 2019 baseline, and by 11% since last year,
mainly due to projects in Richards Bay, Merebank (both South
Africa), Štětí (Czech Republic) and the purchase of green
electricity in several operations.
Reduce Scope 3 GHG emissions by 27.5%
by 2030 from a 2019 baseline
ò
ò
Absolute Scope 3 emissions decreased 15% compared with
our 2019 baseline, and increased by 8% since last year,
primarily due to more purchased goods as a result of higher
production volumes.
Reduce Scope 1, 2 and 3 emissions by 90%
by 2050 from a 2019 baseline
ò
ò
Total Scope 1, 2 and 3 emissions decreased by 22% compared
with our 2019 baseline and by 1% since last year.
Our science-based Net-Zero
targets underline our long-term
commitment to climate action.
We are working to phase out
fossil fuels and improve our
operational performance, while
reducing GHG emissions in our
own operations and across the
supply chain.
Our Net-Zero targets cover GHG
emissions from our operations and supply
chain across Scope 1, 2 and 3.
Reducing our own GHG
emissions
Our Scope 1 GHG emissions occur mainly
through the combustion of fuels to
generate energy for our manufacturing
processes. Our Scope 2 GHG emissions
relate to purchased energy.
In 2024, we reduced our Scope 1 and 2
GHG emissions by 31% compared with
our 2019 baseline. We remain committed
to achieving our Net-Zero GHG emissions
reduction targets, through energy
efficiency projects and investment in high-
quality modernisation projects throughout
our sites. We anticipate that these
measures will drive operational excellence,
improve our cost competitiveness and
enhance our carbon footprint as a Group.
31%
reduction of absolute Scope 1 and 2
GHG emissions compared with our
2019 baseline
Changing our energy mix and
optimising our manufacturing
We combine strategic energy-related
investments with good management
practices and knowledge sharing across
our operations. We also stay up to date
on energy technology trends for fuel
diversification and to keep our energy
portfolio future-fit.
We invest in optimising energy and
process efficiencies and replacing fossil
fuel-based energy with renewable sources.
In 2024, our share of renewable energy
increased to 79% (2023: 75%). Energy
self-sufficiency can reduce costs, increase
energy security and reduce GHG emissions.
Since 2019 we have invested and approved
around €500 million of energy and
process efficiency projects, including
a new recovery boiler and biomass boiler
in Richards Bay (South Africa) and a
modernisation project at Dynäs (Sweden).
79%
energy from renewable sources
Tackling supply chain
GHG emissions
Most of our Scope 3 GHG emissions result
from purchased goods and services, fuel and
energy-related activities, as well as upstream
and downstream transportation. We focus
on raw materials and fuel suppliers to
engage on GHG emissions reduction targets
and Net-Zero transition plans. We also
engage with logistics partners on replacing
carbon-intensive practices and materials.
We also aim to increase primary data on
GHG emissions from our suppliers to
improve the quality and accuracy of our
Scope 3 GHG emissions reporting.
In 2024, we engaged on decarbonisation
topics with strategic raw material suppliers,
who significantly contribute to our Scope 3
category ‘Purchased goods and services’.
Our Scope 3 GHG emissions were
estimated to represent 59% of our total
GHG emissions in 2024.
ESRS & Performance index
www.mondigroup.com/esrsperformance24
TCFD
Page 52-59
Mondi Group
Integrated report and financial statements 2024
42
Mondi Action Plan 2030 continued
Taking Action on Climate continued
Group GHG emissions1
Milestones and target years
million tonnes CO2e
2024
2023
% change
2023 – 2024
2019 baseline
2030
2050
% change
2019 – 2024
Scope 1
1.54
1.75
(12) %
2.02
(24) %
Scope 2
0.32
0.35
(9) %
0.68
(53) %
Total Scope 1 and Scope 2
1.86
2.10
(11) %
2.70
(46.2) %
(31) %
Scope 3
2.72
2.53
8%
3.19
(27.5) %
(15) %
Total GHG emissions
4.58
4.63
(1) %
5.90
(90) %
(22) %
1 The update of our baseline to include disposals and acquisitions is ongoing. With improved granularity of Scope 3 data, additional Scope 3 emissions have been quantified
as part of this ongoing update. To enable comparability of our current and past year performance the updated Scope 1, 2 and 3 emissions will be disclosed once the new
baseline figures have been validated by SBTi.
Note: We report our GHG emissions according to the Greenhouse Gas Protocol, published by the WBCSD and the WRI, and have reported our Scope 1 and 2 GHG data
in compliance with ISO 14064:1-2006. ERM CVS has assured, to a reasonable level of assurance, our 2024 absolute Scope 1 and absolute Scope 2 GHG emissions data,
in accordance with ISO 14064-3.
Group energy consumption and GHG emissions2
2024
2023
Mondi Group
UK operations3
Mondi Group
UK operations3
Total energy use (billion kWh)
27.97
—
27.15
—
Energy purchased (billion kWh)
1.47
—
1.58
—
Scope 1 emissions (million tonnes CO2e)
1.54
—
1.75
—
Scope 2 emissions (million tonnes CO2e)
0.32
—
0.35
—
Scope 3 emissions (million tonnes CO2e)
2.72
—
2.53
—
Total GHG emissions (million tonnes CO2e)
4.58
—
4.63
—
Specific GHG emissions (tonnes CO2e per tonne of saleable production)4
0.36
—
0.43
—
2 This table fulfils the Group’s Streamlined Energy and Carbon Reporting (SECR) disclosure requirements.
3 The Group did not own or operate any production sites in the UK in 2023 and 2024.
4 Specific GHG emissions are calculated based on Group total Scope 1 and Scope 2 GHG emissions divided per tonne of saleable production of pulp and paper mills.
Note: In previous years, disclosed GHG emissions and energy consumption figures have been primarily based on the Group’s pulp and paper mills. In this report, we disclose
total figures for the Group. Therefore, 2023 and 2019 baseline figures have been restated and presented as Group figures.
Mondi Group
Integrated report and financial statements 2024
43
Driving energy resilience
and efficiency
Our operational excellence teams are key contributors to
our Net-Zero pathway. A great example comes from Mondi
Richards Bay (South Africa). Over the last four years, the
local team adopted a new approach to energy savings and
a broad range of initiatives were executed, resulting in a 7%
improvement in energy efficiency.
The team has executed 14 energy efficiency projects
over two years and integrated further energy efficiency
improvements into its energy projects portfolio. It also
participated in the Group’s Energy Efficiency programme,
conducted via the best practice ISO 50001 framework.
By the end of 2023, the mill achieved ISO 50001 certification
in half the target time.
Read more on our website
www.mondigroup.com/news-and-insight/
Commitment: Maintain zero deforestation in our wood supply, sourcing
from resilient forests
Target
Performance against baseline
This year at a glance
2023
2024
Maintain 100% FSCTM certification in our
own forestry landholdings
ò
ò
We have maintained all certifications in our South African
forestry landholdings.
Procure 100% responsibly sourced fibre with
75% FSC- or PEFC-certified fibre procured
by 2025 and the remainder meeting the FSC
Controlled Wood standard
ò
ò
100% of our fibre was responsibly sourced, with 76% of wood
FSC or PEFC certified, and the remainder FSC Controlled
Wood.
Implement leading forestry measures to
ensure productive and resilient forests
ò
ò
Continued to implement best management practices in our
plantation forests to support improved growth and minimise
disturbances.
Forests play an essential role
in a circular bioeconomy as
a source of low-carbon,
renewable, recyclable and
compostable material.
Wood fibre is our most important raw
material for producing our packaging and
paper solutions. We take a science-based
approach to active forest management.
Increasing the use of wood-based
products that are responsibly sourced
can help to mitigate the climate crisis
and secure long-term benefits for society.
The cost and availability of raw materials,
including wood, is one of our Group’s
principal risks. There are several factors
which may affect wood supply, such as
increasing competition for wood, driven
by demand for renewable raw materials
and for renewable energy generation,
as well as growing restrictions related
to biodiversity conservation and climate
change mitigation.
We promote a cascading use of wood
approach, which promotes leveraging the
full value of fibre, successively recycling
fibre for products with shorter lifespans
before it is finally burned for green
energy generation.
Principal risks
Page 60-69
Secure wood fibre sourcing
Our total wood consumption in 2024 was
15.2 million m3 (2023: 12.8 million m³). Most
of our mill operations are located in Europe,
where we source wood fibre from external
sources. More than 90% of our wood fibre
is procured from the countries where our
pulp and paper mills are located, offering
multiple benefits including more resilience
and transparency in our supply chain with
lower risks and shorter transportation
distances, which in turn offer cost
advantages and lower GHG emissions.
In South Africa, where we manage
forestry landholdings, we are developing
best practice silviculture and other forestry
management measures to promote tree
growth and resilience.
Responsible forest management
We support the development of resilient
forest landscapes by scaling forest
certification development. International
forest certification schemes, such as the
Programme for the Endorsement of
Forest Certification (PEFC) and Forest
Stewardship Council (FSC),1 play an
important role in promoting responsible
practices and increasing availability of
sustainable fibre sources.
In 2024, 100% of our fibre was responsibly
sourced, with 76% FSC- or PEFC-certified,
and the remainder meeting the FSC
Controlled Wood standard (2023: 75%).
We also successfully integrated our new
operations in Canada and our Hinton mill
passed recertification audits against the
PEFC and FSC Chain-of-Custody
standards.
Supporting suppliers
Working in close collaboration with our
suppliers and using regionally sourced
wood fibre and biomass, we aim to ensure
a steady supply chain.
Our most vulnerable suppliers are forestry
smallholders, who require support to meet
certification requirements and sell certified
goods. We have made significant progress
in our work with small timber growers in
South Africa through our Group Scheme
certification in recent years.
Impact of industry regulation
Our sector faces increasing regulatory
requirements with the new EU Regulation
on Deforestation-free Products (EUDR),
which aims to reduce the EU’s impact
on global deforestation and forest
degradation. We are committed and well-
positioned to meet these requirements for
compliance by the end of 2025. We are
updating our existing due diligence
processes and IT systems, as well as
actively engaging with our suppliers and
customers to ensure we will meet all
regulatory requirements.
We actively engaged with industry
associations, such as Cepi and FEFCO,
on EUDR implementation. We also
promote resilience in European forests
through our TEAMING UP 4 FORESTS
science-business partnership with the
International Union of Forest Research
Organizations (IUFRO). We believe
scientific research is crucial to inform
effective policies and forestry management
best practice, considering the long-term
planning horizons in forestry.
100%
wood fibre responsibly sourced,
with 76% FSC- or PEFC-certified
ESRS & Performance index
www.mondigroup.com/esrsperformance24
Procurement
Page 47-49
Mondi Group
Integrated report and financial statements 2024
44
Mondi Action Plan 2030 continued
Taking Action on Climate continued
1 The license number of Mondi Paper Sales GmbH – Fibre Packaging/Paper is FSC-C012179 and Mondi Paper Sales – Uncoated Fine Paper is FSC – C015522.
Commitment: Safeguard biodiversity and water resources in our operations and beyond
Target
Performance against baseline
This year at a glance
2023
2024
Conduct water stewardship assessments at
our mills and forestry operations by 2025,
and implement required actions to address
the findings by 2030
ò
ò
We have completed assessments for 92% of our mills and
forestry operations, up from 54% in 2023.
Conduct biodiversity assessments at our
mills and forestry operations, introducing
biodiversity action plans where necessary
by 2025
ò
ò
We have developed action plans for 92% of our mills and
forestry operations, up from 54% in 2023.
We focus on managing our
impacts and dependencies on
water resources and
biodiversity to support
ecosystem resilience and
promote the sustainable and
efficient use of natural
resources.
Within our MAP2030 framework, we have
a holistic approach to climate action and
conserving natural resources. In our pulp
and paper mills, the main impacts on nature
and water relate to withdrawal from and
discharge to freshwater ecosystems. In our
plantation forests, the main nature- and
water-related risks and impacts are
biodiversity loss and reduced water quality
and availability for our own forestry
operations and other land users.
Managing our biodiversity
impacts
We have conducted biodiversity status
reviews for all our pulp and paper mills
and forestry operations, evaluating our
potential impacts on biodiversity. We have
developed biodiversity action plans for 92%
of our mills and forestry operations.
The plans include strategic investments,
collaboration with other businesses,
scientific organisations and NGOs, as
well as environmental community projects.
We have also identified important
biodiversity sites within a 5km buffer zone
and evaluated the potential impacts on
these. So far, no negative impacts have
been identified.
GRI Biodiversity disclosure
www.mondigroup.com/gribio24
Our water stewardship
approach
At our mills, we manage water cycles
and maintain the resilience of freshwater
ecosystems, with location-specific
considerations in mind. Our Group Water
Stewardship Standard, developed in
collaboration with WWF and the Alliance
for Water Stewardship, lists the
requirements related to our water
stewardship policy, plans and strategy and
outlines the framework for our water
stewardship assessments. In our South
African forestry operations, we monitor the
state of wetlands using a sample-based
approach and conduct freshwater
monitoring assessments in relevant
river ecosystems.
Working in partnership
for nature
Through our collaboration with NGOs and
scientific institutions, we aim to improve
our understanding of robust approaches to
ecosystem stewardship, biodiversity and
natural capital management. Our 2024
actions included:
– As a member of WBCSD’s Forest
Solutions Group, we contributed to the
development of the Forest and Nature
Metrics tool, which provides a set of
prioritised metrics most relevant and
practical for measuring and reporting
on the impacts of sustainable forest
management.
– WWF South Africa and Mondi South
Africa extended their WWF-MWSP
partnership for another three years.
The partnership will continue to focus on
water and explore other areas such as
circular economy, land and biodiversity
stewardship, and climate resilience in the
wider Richards Bay area.
– As part of Mondi South Africa's three-
year partnership with the Endangered
Wildlife Trust, which aims to map
biodiversity footprints in our South
African forestry operations, we identified
a list of relevant species and continued
to explore accounting methods for
biodiversity impacts.
ESRS & Performance index
www.mondigroup.com/esrsperformance24
What’s next in Taking
Action on Climate?
– Continue to improve operational
performance and reduce our
GHG emissions in line with our
Net-Zero targets.
– Continue to engage with our key
suppliers to reduce our Scope 3
GHG emissions, with a focus on
purchased goods and services.
– Continue updating and pilot-
testing our systems to comply
with the EU Regulation on
Deforestation-free Products.
– Review status of biodiversity and
water stewardship assessments
ahead of our 2025 milestone.
Mondi Group
Integrated report and financial statements 2024
45
Material topics
– Biodiversity and fibre sourcing
– Business conduct
– Circular economy
– Water
– Working conditions and
human rights
Underpinning our MAP2030 commitments
Our responsible business practices encompass environmental performance, human rights, community
and responsible procurement. Each area has its own commitments and targets to guide our actions.
Environmental performance
Commitment: We continually work on improving the environmental performance of our operations
to minimise environmental impacts
Target
Performance against baseline
This year at a glance
2023
2024
Reduce specific contact water consumption by 10%
by 2030 from a 2020 baseline
ò
ò
Specific contact water consumption reduced by 4% compared with
our 2020 baseline and remained at the same level as last year.
Reduce specific effluent load (measure COD) by 15%
by 2030 from a 2020 baseline
ò
ò
Specific COD emissions decreased by 12% compared with our
2020 baseline, and decreased by 13% since last year, due to
efficiency improvement in wastewater treatment plants in Richards
Bay (South Africa) and Dynäs (Sweden).
Reduce specific NOx emissions from our pulp and
paper mills by 10% by 2030 from a 2020 baseline
ò
ò
Specific NOx emissions decreased by 14% compared with our 2020
baseline, and were 4% lower than last year. This is mainly due to
projects in Ružomberok (Slovakia) and Štětí (Czech Republic).
Reduce specific waste to landfill by 30% by 2030
from a 2020 baseline
ò
ò
Specific waste to landfill decreased by 46% compared with our
2020 baseline and 4% since last year, mainly due to projects in
Richards Bay (South Africa), Kuopio (Finland) and Dynäs (Sweden).
100% of our operations will be certified according to
globally accepted environmental standards equivalent
to ISO 14001 by 2025
ò
ò
100% of our pulp and paper mills and 78% of our converting
operations are ISO 14001 certified. The Group certification figure
increased from 79% in 2023 to 81% in 2024.
2024 performance key
Completed
ò On track
ò Behind target
ò Not on track
Mondi Group
Integrated report and financial statements 2024
46
Mondi Action Plan 2030 continued
Responsible Business Practices
Human rights
Commitment: Strengthen governance systems to prevent human rights violations and remedy any
adverse impacts
Target
Performance against baseline
This year at a glance
2023
2024
Develop the due diligence and risk assessment
methodology and guidance with the support of the
Danish Institute for Human Rights (DIHR) by the end
of 2021
We completed this target in 2021 and have initiated a review
of the methodology against new legislative requirements on
due diligence.
100% of operations with a completed Human Rights Due
Diligence and risk assessment and action plan in place to
address findings by 2025
ò
ò
We are on track with the implementation of our due diligence
roadmap, which was developed based on the findings from our initial
human rights risk assessment completed by all operations in 2023.
100% of operations to have addressed their human rights
impacts (investigate, prevent future occurrences and
remedy adverse impacts) by 2030
ò
ò
No adverse impacts were identified in our operations. To further
mitigate our human rights risks, we will continue to work on the
areas defined.
Communities
Commitment: Maintain social investments in our communities to support sustainable development
aligned with local needs
Target
Performance against baseline
This year at a glance
2023
2024
Report on our total social investment annually
ò
ò
In 2024, we spent €6.7 million on social investments
(2023: €7.3 million).
Procurement
Commitment: We mitigate risks and create greater transparency in our supply chains through our
Responsible Procurement process
Target
Performance against baseline
This year at a glance
2023
2024
We will minimise the supplier risk ratio* year-on-year
ò
ò
In 2024, we have scaled up the number of supplier sites screened
from 460 to 2,436. The supplier risk ratio remained at 1%, with 32
supplier sites classified as high risk at year end.
Commitment: Ensure that all our wood fibre (round wood, wood chips and market pulp) is sourced
solely from credible wood sources
Target
Performance against baseline
This year at a glance
2023
2024
Maintain 100% of wood fibre compliant with credible
standards (FSC, PEFC, or Controlled Wood)
ò
ò
Achieved in 2024. 100% of our fibre was responsibly sourced, with
76% FSC or PEFC certified, and the remainder meeting the FSC
Controlled Wood standard.
For high risk countries, maintain 100% FSC-certified
fibre sourcing or implement additional risk
mitigation measures
ò
ò
This target was achieved in 2024, as no wood from high-risk
countries was imported.
100% PEFC- or FSC-certified market pulp
ò
ò
94% of market pulp procured in 2024 was PEFC or FSC certified,
with the remainder procured from low risk countries as FSC
Controlled Wood, in line with our minimum standard. Changes in
certification status of forests in our sourcing areas in Europe
impacted the availability of FSC-certified pulp in 2024 and
resulted in us not reaching 100% for the year.
100% PEFC or FSC Chain-of-Custody certification
for our pulp and paper mills
ò
ò
Achieved in 2024 for all operating pulp and paper mills. Our paper
mill in Duino (Italy), which is not yet operational and had no
production in 2024, will be certified in early 2025.
We will continue to work with certification bodies to
ensure credibility of the certification and controlled
wood systems
ò
ò
In 2024, we engaged with PEFC and FSC at relevant forums, with
a particular focus on implications of emerging EU regulations,
including the EU Regulation on Deforestation-free Products
(EUDR) and the EU Renewable Energy Directive (EU RED).
* Total number of residual high-risk suppliers divided by the total number of suppliers screened.
Mondi Group
Integrated report and financial statements 2024
47
Environmental performance
We aim to use resources wisely and
continuously improve the environmental
performance of our operations to mitigate
potential negative impacts on nature and
local communities.
We work to improve our operational
efficiencies, maintain quality standards,
enhance our long-standing relationships
with our suppliers and partners, increase
operational excellence, and maintain
our position as a recognised leader
in sustainability.
We comply with applicable laws,
regulations and permit requirements,
but go beyond legal compliance through
our ambitious MAP2030 environmental
targets for water, air emissions and waste.
We identify potential impacts and take
mitigation measures to reduce the risk
of negative impact on the environment.
Water
Water scarcity and decreasing
groundwater levels are among the most
serious risks facing society. Water is a vital
resource for our production processes and
supply chain; we aim to reduce water
consumption and increase water recycling
in our operations.
We focus on managing water resources
in an efficient and sustainable way, and
investing in our water infrastructure, in
particular in regions with high water-related
risks. Our approach includes:
– assessing and managing our water-
related risks;
– reducing water consumption, e.g. by
investing in water recycling in our mills;
– investing in best available techniques
to treat our waste water and minimise
emissions; and
– developing partnerships with other water
users to manage water-related risks
across entire catchments.
In 2024, we conducted water stewardship
assessments at our pulp and paper mills in
Austria, Finland and Sweden.
We used 218.4 million m3 of water in
our operations and discharged 90% back
to the aquatic environment after treatment
in 2024.
Each operation is responsible for taking
action to reduce its water footprint and
mitigating water-related risks. The
operations regularly review flood
prevention plans, collaborate with local
governments and hydropower energy
providers, and invest in flood protection
solutions where necessary.
In our wastewater treatment facilities, we
treat process water before returning it back
to the aquatic environment. We regularly
monitor the emissions of wastewater
contamination, including chemical oxygen
demand (COD) and adsorbable organic
halogen compounds (AOX), as well as
phosphorous and nitrogen compounds.
90%
water released back to the aquatic
environment after treatment
Air emissions
Our main source of air emissions is the
on-site energy generation in our recovery,
bark and auxiliary boilers, as well as our
lime kilns in our pulp and paper mills.
By modernising our energy facilities,
including up-to-date combustion
modification technologies (such as low
NOx burners), and implementing flue gas
abatement techniques, we have reduced
NOx emissions per unit of energy at our
mills in Ružomberok (Slovakia) and Štětí
(Czech Republic) in 2024.
The air emissions of our plants are strictly
monitored in accordance with regulations.
We regularly monitor SO2, NOx, total
reduced sulphur (TRS) and dust emissions,
and we calculate our CO2 emissions based
on fuel consumption, the use of chemicals,
the emissions of ozone depleting
substances and the methane emissions
from our landfills. We strictly adhere to
permitted limits.
Waste
We aim to use resources efficiently ,
reduce our waste disposal and increase the
circularity of material flows. If we are unable
to turn production waste into valuable
secondary raw materials, we focus on
reducing waste to landfill by exploring other
methods of treatment and/or disposal.
We mainly landfill non-hazardous, inorganic
waste streams, such as ashes, green
liquor dregs, and lime mud. Incorrect waste
management may lead to environmental
impacts and can incur treatment and
disposal costs, regulatory penalties and
damage to our reputation.
In 2024, we generated around 0.9 million
tonnes of waste, of which 73% was brought
back into value creation processes. 66,358
tonnes of waste were sent to landfill (2023:
65,213 tonnes). We sent 814 tonnes of
hazardous waste to landfill in 2024,
accounting for only 1% of our total landfill
waste (2023: 1%).
ESRS & Performance index
www.mondigroup.com/esrsperformance24
Human rights
We respect and support internationally
proclaimed human rights in our own
operations and across our supply chain.
Working conditions and human rights
are material topics for Mondi. While we
consider all human rights as important,
we focus on the most significant topics
for our operations: fair working conditions,
freedom of association and collective
bargaining, land rights and safeguarding
our environment. We also pay specific
attention to measures preventing modern
slavery and child labour.
Our Human Rights Due Diligence is a
continuous management process that
enables us to identify and assess risks,
define action plans and ensure appropriate
management controls are in place.
Our commitment to human rights as
part of our MAP2030 framework is
to strengthen our governance systems
to prevent human rights violations and
remedy any adverse impacts. We have
clear targets and are on track with the
implementation of our human rights
roadmap, developed based on the findings
of our risk assessment. In 2024, we did not
identify any significant changes in Mondi’s
risk areas, and no adverse human rights
impacts or incidents were reported
in our operations.
We have continued our human rights
awareness raising campaign in 2024 with
training sessions to develop a general
understanding of our human rights focus
areas and actions needed to address risks
and potential impacts.
Mondi Group
Integrated report and financial statements 2024
48
Mondi Action Plan 2030 continued
Responsible Business Practices continued
Our anonymous whistleblowing and
grievance platform, SpeakOut, is available
to the public and employees alike. In 2024,
we had 120 reports (2023: 90), raising
topics including work-related harassment,
unfair treatment, labour rights, safety,
health and environment matters and
business integrity.
Communities
We engage with our local stakeholders
through a variety of methods, which
help us to understand the needs of our
communities and how we impact them.
We then use our findings and insights
to take action.
We have a commitment and target as part
of our MAP2030 framework to report on
our social investment every year. Our social
investments are guided by core principles
of sustainable development, including the
United Nations Sustainable Development
Goals, national and local development
priorities, MAP2030 and our own business
objectives. Our total social investments in
2024 were €6.7 million (2023: €7.3 million),
including monetary and in-kind
contributions, as well as employees sharing
their skills, time and networks. Our social
investment areas include education,
employment and enterprise support,
environmental protection, health and
wellbeing, as well as infrastructure and
community development.
Local engagement plans are developed by
our operations. In South Africa, Community
Engagement Plans are a key part of our
stakeholder engagement approach and are
crucial to improving community relations
and operational sustainability. In 2024,
we focused on understanding progress
on initiatives arising from concerns and
inputs provided by stakeholders in previous
Stakeholder Engagement Conversations.
Our findings showed that local operations
have implemented defined measures
and are strengthening their engagement.
We have gained valuable insights and
the feedback is helping to improve our
relationship with local stakeholders.
Procurement
An essential part of our responsible
business practices is continuously
improving transparency and sustainability
in our supply chain through our responsible
procurement. Working in collaboration with
our suppliers, we aim to minimise supply
chain risk and enhance our suppliers’ own
sustainability practices. We have clear
responsible procurement commitments and
targets as part of our MAP2030 framework.
In 2024, our global supply chain included
around 11,000 suppliers in 72 countries. We
procured €6.2 billion in goods and services
from these suppliers (2023: €6.2 billion),
with 58% sourced locally (2023: 57%).
We coordinate global fibre procurement
through a dedicated fibre sourcing team,
using our Due Diligence Management
System to stipulate that we purchase all
our wood fibre from responsible sources
in line with our commitment to zero
deforestation. In 2024, 100% of our wood
fibre was compliant with credible standards
(FSC, PEFC or controlled wood).
Our Central Procurement function
manages the sourcing and leads our
processes for all other materials and
services. We identify sustainability risks and
assess supplier performance through our
Responsible Procurement process. In 2024,
we have scaled up our Responsible
Procurement process from 460 supplier
sites screened in the 2023 pilot, to 2,436
supplier sites, focusing on the highest risk
categories. From these screened supplier
sites, we identified 250 suppliers with
potential high sustainability risk and
followed up with in-depth sustainability risk
assessments. We were able to address
concerns related to 129 of these suppliers
based on their sustainability performance,
and 89 suppliers were either in progress
of conducting the assessment or have
corrective action plans defined. Out of
the 2,436 suppliers screened, 32 did not
engage in our risk assessment or corrective
actions and are therefore considered
potential high risk (1%).
2,436
supplier sites screened for
sustainability risks in 2024
Business conduct
As a global company, the way we conduct
business and uphold our values impacts
our stakeholders and our business success.
Through our policies, procedures and
regular training, we strive to meet legal
requirements, maintain high business
standards and provide clear guidance
on the behaviour we expect from our
employees when they interact with others.
Our Group Code of Business Ethics sets
out five fundamental ethical principles
(legal compliance; honesty and integrity;
human rights; stakeholders; and
sustainability), which are relevant for
anyone performing services and/or acting
on our behalf. The applications are detailed
in Mondi’s policies and procedures.
Read more on our policies and procedures
www.mondigroup.com
Prevention and detection of
corruption and bribery
We have zero tolerance for corruption and
bribery. Our Business Integrity Policy details
our values and defines unacceptable
business practices, including bribery and
corruption. Suspected cases of corruption
and bribery are monitored and reported
through line management reporting, as well
as through our anonymous whistleblowing
and grievance platform, SpeakOut.
Employees that are regularly in contact
with business counterparts must complete
mandatory online business integrity training
each year. The training covers topics
including the definition of corruption and
our policies and procedures helping to
identify potential cases.
Mondi Group
Integrated report and financial statements 2024
49
Read more in the Sustainable Development
report 2024
www.mondigroup.com/sd24
Effective stakeholder engagement helps us to understand our operational context better,
including our actual and potential impacts on people and environment. We aim to act
transparently and involve stakeholders across the value chain in planning, decision-making
and project execution. We promote ongoing communication, listening and collaboration to
manage expectations and address concerns.
Our employees
Key topics raised and our response
Key themes this year focused on
feedback, an inclusive and safe workplace,
recruiting more women and opportunities
for focused development. We remained
committed to attracting and developing
talent through tailored programmes. In
total 566,333 hours of training were
completed by employees and contractors.
We continued our efforts to foster an
open and inclusive culture through the
Curious Community and Employee
Resource Groups. All employees have
access to our Employee Assistance
Programme or equivalent. We have been
working on promoting psychological
safety and reinforcing a culture of listening
and caring. As part of this, we conducted
a pulse survey on speaking up in 2024,
which had a 78% participation rate. This
high level of engagement provides us with
a representative sample and enables us to
take meaningful action across the
organisation. Safety continued to be a
cornerstone of our efforts. We continued
our focus on Social Psychology of Risk
and trained around 400 leaders.
Our customers
Key topics raised and our response
Our ongoing customer engagement
covers a wide range of topics, from
innovative solutions for recyclable or
compostable products designed for a
circular economy, to legislative
developments, such as the Packaging and
Packaging Waste Regulation or the EU
Deforestation legislation, automation
services and our annual Trend Report for
eCommerce, product quality, closed loop
sourcing, carbon emissions and life cycle-
based assessments. In 2024, we assessed
product impacts for 1,776 products and
calculated 224 product carbon footprints.
Together with Amazon, we developed an
innovative padded mailer eCommerce
solution, which received multiple awards.
We hosted two customer events at Mondi
Simet and Mondi Warsaw (Poland)
focused on the need for innovative and
sustainable packaging solutions. We
continued our customer collaboration to
develop solutions to meet customers’
sustainability goals and maintained our
ongoing collaborations with multi-
stakeholder initiatives, such as 4evergreen,
CEFLEX and the Ellen MacArthur
Foundation.
Our suppliers and
contractors
Key topics raised and our response
Responsible procurement, quality
management and fair and transparent
tender processes are key topics for our
supplier engagement. We focus on the
sustainability performance of suppliers and
contractors and support them via
continuous capacity building. In 2024, we
scaled up our Responsible Procurement
process and screened 2,436 supplier sites,
focusing on the highest-risk categories.
250 suppliers with potential high
sustainability risk were followed up with
in-depth risk assessment. At year end, 32
supplier sites (1% of suppliers screened)
were classified as high risk. We are
working closely with local procurement
teams to mitigate residual risk; potential
actions include revisiting contractual
agreements, document checks, audits and
switching to alternative suppliers.
The safety of our contractors remained a
priority, particularly during maintenance
shuts. We continued to engage with our
contractors and conducted pre-shut
sessions with the most significant agreeing
on safe methods of work for the high-risk
tasks. No life-altering injuries happened
during annual maintenance shuts in 2024.
Mondi Group
Integrated report and financial statements 2024
50
Stakeholder engagement and Section 172
How stakeholder considerations shape decision-making
Section 172 statement
Mondi's Board of Directors act to promote the long term success of the company in a way that considers relationships with our key
stakeholders, their interests, the consequences of our decisions and the impact of our business on the wider world. Pages 50-51 of
the strategic report identify these key stakeholder groups and, along with pages 82-85, provide examples of how we have engaged
with customers, employees and investors during the year. This disclosure illustrates how the directors have fulfilled their duties under
Section 172 of the Companies Act 2006.
Our communities
Key topics raised and our response
Mondi’s investments are targeted to the
needs of its local communities, supporting
health, environmental protection,
education, local enterprise and
infrastructure. We use a variety of
methods to have effective local
stakeholder engagement. Examples
include Stakeholder and Community
Engagement Plans, Stakeholder
Engagement Conversations and grievance
mechanisms. In 2024, our social
investments were €6.7 million. Examples
comprise supporting five Caritas
Lerncafés that are located close to our
operations in Austria, where children
receive free learning support.
In Ružomberok (Slovakia) the Guardian
Angel project combines stopping unsafe
behaviour with donations to local people
in need. Mondi Świecie (Poland) supports
many cultural events in its local region and
Mondi Štětí (Czech Republic) celebrated
its 75th anniversary with the community,
planting trees and hosting an ecological
programme for children as part of its
EcoDays. Mondi Zimele in South Africa
continues to support livelihoods by helping
to develop local businesses
through various programmes.
Our investors
Key topics raised and our response
Regular meetings were held with
shareholders, debt and equity investors
and analysts, with key topics raised
relating to the Group’s performance,
strategy, capital allocation, expansionary
capital investment projects, returns and
approach to sustainability. Engagement
was primarily through General Meetings,
one-on-one meetings, investor roadshows
and conferences. In January 2024, the
Group held a General Meeting for
shareholders to approve and authorise the
payment of a €1.60 per share special
dividend (totalling €769 million) and
associated share consolidation from the
net proceeds received in 2023 from the
disposal of the Group’s Russian
operations. In May 2024 the Group hosted
its Annual General Meeting, when,
amongst other resolutions, shareholders
approved the final ordinary dividend for
2023. This, together with the interim
dividend, resulted in a total ordinary
dividend for the year of 70.0 euro cents
per share. We also engage with our
banking syndicate and debt ratings
agencies. We held a fixed income investor
roadshow prior to the issuance of a €500
million Eurobond in May 2024.
Our partners and
industry associations
Key topics raised and our response
Our partnerships aim to promote solutions
for climate change, biodiversity and water
stewardship, responsible sourcing and
circular economy. We announced a new
collaboration with traceless to develop
bio-based coatings for paper products,
replacing plastic coatings. We are also
working together with EUROSAC and
Cepi Eurokraft to scale the ‘Paper Sacks
Go Circular’ initiative across Europe.
We renewed our partnership agreement
with the World Food Programme for
another three years. We completed the
first phase of our TEAMING UP 4
FORESTS partnership with IUFRO and
presented a joint study on future wood
supply in Europe at COP29. Mondi South
Africa and WWF South Africa extended
their partnership agreement for another
three years.
We engaged with our industry
associations like FEFCO, CEFLEX, and
Cepi on evolving legislation. As part of
EUROPEN committees, we engaged on
the harmonisation of EU rules and the
Packaging and Packaging Waste
Regulation. We remained an active
4evergreen member contributing to its
deliverables and steering group.
.
Mondi Group
Integrated report and financial statements 2024
51
We are committed to
continuing to reduce carbon
emissions across our operations.
Our TCFD journey
Our ambitious targets have steered our
progress over a number of years and
established a platform for our future
investments. As we advance our transition
to a circular economy, we remain committed
to further reducing our emissions.
We recognise that the impact of climate
change gives rise to physical and transition
risks. We also recognise clear opportunities
for our business to drive value accretive
growth with sustainability at the centre
of our strategy.
At Mondi, we are aiming to reduce our
emissions in line with a 1.5°C scenario
by committing to achieve Net-Zero
greenhouse gas (GHG) emissions reduction
targets by 2050. In 2022, the Science Based
Targets initiative (SBTi) approved our near-
and long-term Net-Zero GHG targets.
We report on our progress against these
targets in line with guidance from the
Financial Stability Board's Task Force on
Climate-Related Financial Disclosures
(TCFD).
The Group’s focus remains on risk
management and mitigation of our
climate change-related risks and
maximising our opportunities.
Consistency statement
In line with the UK Listing Rules, we confirm that the disclosures included in the Integrated report and financial statements 2024
are consistent with the four TCFD recommendations and 11 recommended disclosures in the all-sector guidance. The table on
this page contains the relevant disclosure locations.
TCFD recommendations and recommended disclosures
Disclosure location
Further information
Governance
a) Describe the Board’s oversight of climate-related risks and opportunities
Page 53
Corporate governance report
Page 80-110
b) Describe management’s role in assessing and managing climate-related
risks and opportunities
Page 53
Taking Action on Climate
Page 41-45
Strategy
a) Describe the climate-related risks and opportunities the organisation
has identified over the short, medium and long term
Page 54-57
Principal risks
Page 60-69
b) Describe the impact of climate-related risks and opportunities on the
organisation’s businesses, strategy and financial planning
Page 54-55
Our strategy
Page 14
Taking Action on Climate
Page 41-45
c) Describe the resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios, including a 2°C
or lower scenario
Page 54-55
Our strategy
Page 14
Taking Action on Climate
Page 41-45
Risk management
a) Describe the organisation’s processes for identifying and assessing
climate-related risks
Page 58
Principal risks
Page 60-69
b) Describe the organisation’s processes for managing climate-related risks
Page 58
Principal risks
Page 60-69
c) Describe how processes for identifying, assessing and managing climate-
related risks are integrated into the organisation’s overall risk management
Page 58
Principal risks
Page 60-69
Metrics and targets
a) Disclose the metrics used by the organisation to assess climate-related
risks and opportunities in line with its strategy and risk management process
Page 59
Key performance indicators
Page 22-23
Taking Action on Climate
Page 41-45
Environmental performance
Page 46
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions,
and the related risks
Page 42
Taking Action on Climate
Page 41-45
c) Describe the targets used by the organisation to manage climate-related
risks and opportunities and performance against targets
Page 43
Taking Action on Climate
Page 41-45
Remuneration report
Page 111-135
Mondi Group
Integrated report and financial statements 2024
52
Task Force on Climate-related Financial Disclosures (TCFD)
Our climate-related financial disclosures
Governance
The Board
While the Board as a whole has
responsibility for overseeing our approach to
sustainability, the Sustainable Development
Committee (SD Committee), on behalf
of the Board, oversees and monitors our
sustainable development policies, practices
and progress against our MAP2030
commitments and targets. It provides
guidance in relation to sustainability matters,
including climate change-related issues,
and reviews updates of the Group’s
framework of sustainability policies and
strategies, taking into account global best
practice. The Board considers the impact
of climate change-related matters as
part of its decision-making, including in
relation to major capital expenditure,
acquisitions and disposals.
The relevant Board committees
The SD Committee met seven times during
2024, with climate change-related matters
discussed by the committee at the majority
of these meetings. Every Board member
normally attends each meeting of the SD
Committee, even if they are not a member
of the committee, providing context for
Board discussions.
The Chair of the SD Committee also reports
back to the Board after every meeting.
Read our Board members' biographies
for more information on their skills
and experience, including in respect
of sustainability-related matters,
on pages 76-77.
Progress against our sustainability
commitments and targets, outlined in
MAP2030, was an integral part of the
SD Committee’s agenda throughout the
year, with each of the key action areas
reviewed and focus given not only to the
current status of each commitment, but
also to the actions being taken towards
achieving these commitments.
Further details of our performance in this
regard can be found on pages 41-45.
Alongside this, the SD Committee also
spent time considering the climate
change-related risks and opportunities
facing the Group in the context of the
TCFD recommendations.
Each risk and opportunity was reviewed,
considering in particular the potential
impact. This is an iterative process, with the
quantification of the financial impact
and the methodologies applied being
refined where required, and that these
reviews support the development of the
committee’s understanding of these risks
and opportunities and provide context not
only for Mondi’s plans for addressing
climate change, but also for its wider
decision-making.
Our Sustainability Governance Framework
Consisting of management frameworks, including the Sustainable Development Management System,
the Corporate Governance Code and other management systems, policies and standards
Mondi Board
Relevant Board committees
t u
Executive Committee
Chaired by independent non-executive directors
Chaired by the Group CEO
SD Committee
Audit Committee
Remuneration Committee
Purpose
Oversees the Group’s
sustainability approach,
policies, performance and
commitments
Oversees the Group's
corporate financial reporting,
the internal control system,
risk management and the
relationship with the
external auditor
Responsible for
recommending overall
remuneration policy
and setting executive
and senior management
remuneration
Management responsibility
for sustainability performance
within operations guided by
the SD Committee
Responsibilities
Responsible for the
governance of sustainability
matters including those
related to environment,
climate change, labour,
diversity and inclusion, human
rights, biodiversity and
product stewardship
Ensures alignment with
global best practice
Oversees the Group’s
corporate financial reporting
and the risk assessment
process, including sustainability
risks which form part of the
Group's principal risks
Monitors the effectiveness
of the internal control
systems, including the
SpeakOut platform
Responsible for remuneration
being appropriately aligned to
our MAP2030 commitments
Ensures that business unit
line management holds
primary responsibility
and accountability for
sustainability performance
Group functions and expert networks
Business
unit and
operational
level
responsibilities
Provide expert insights and support to business on topics such as sustainable development, legal, human resources,
communications, procurement and internal audit
Expert networks: Safety and occupational health; Social sustainability; Energy; Fire safety;
Environment; Product stewardship; Kraft recovery boiler; and Wood supply
Mondi Group
Integrated report and financial statements 2024
53
Governance continued
During 2024, the SD Committee also
addressed a number of other key matters
including safety performance and serious
incidents, product stewardship, people
development and diversity, environmental
performance and climate change, nature
and responsible wood sourcing, responsible
procurement, stakeholder relationships and
sustainable development governance and
risks. Further details on the key matters
considered by the SD Committee during
the year can be found on page 110.
Additional governance oversight is
provided by the Audit Committee and
Remuneration Committee. The Audit
Committee oversees the Group’s corporate
financial reporting, annual planning process,
internal control framework and risk
assessment process, which includes climate
change risks. Details on the key matters
considered by the Audit Committee during
the year can be found on page 101. The
Board is considering any changes required
to our approach to internal controls as a
result of the revisions to the UK Corporate
Governance Code, particularly in respect of
non-financial information. More information
can be found on page 100. The
Remuneration Committee is responsible for
ensuring that our incentive arrangements
drive the appropriate behaviours that
deliver our strategy, including the alignment
of remuneration to performance against
our MAP2030 focus areas. Details on the
key matters considered by the
Remuneration Committee during the year
can be found on page 111-113.
The Executive Committee
The Executive Committee, chaired by the
Group CEO, and operational management
teams consisting of senior executives from
across the Group monitor our approach
to sustainability. The Executive Committee
regularly reviews progress against our
sustainability commitments and targets.
In addition, all papers and updates
prepared for the SD Committee, including
those relating to climate change, are
reviewed and discussed by the Executive
Committee, prior to submission to the
SD Committee, allowing the Executive
Committee to develop its understanding
and awareness of sustainability matters
and to provide relevant input.
The Group Technical & Sustainability
Director and the Group Head of
Sustainable Development are responsible
for coordinating actions related to the
Group’s climate change-related risks
and opportunities and providing reports
to the Executive Committee to enable
it to discharge its responsibility.
Strategy
Sustainability is at the core of Mondi’s
strategy and values and we have a
long-standing focus on reducing
greenhouse gas emissions, which has been
achieved through targeted investments to
reduce our reliance on fossil fuels and a
focus on improving energy efficiency
across our operations.
We believe that we have the right strategy,
including our climate transition plan to Net-
Zero by 2050, to address the challenges and
opportunities arising from climate change.
We recognise that there are many
uncertainties around the potential impacts
of climate change and continue to enhance
the quality of our scenario modelling
to further understand these impacts.
We consider that, based on our current
understanding, our strategy is resilient.
The Group’s climate change-related risks
and opportunities are routinely considered
in our strategic and financial planning,
our capital allocation decisions and our
operational management. Climate change
risks have been identified as one of
our strategic principal risks and are
reflected in our accounting policies
and financial reporting.
Climate change in our financial
statements
The impact of climate change is considered
in the estimates of future cash flows used
in the impairment assessment of goodwill
and property, plant and equipment, as
detailed on pages 167, 169-170 and 199.
Climate change is, as detailed on page 170,
included as a factor that impacts the
conversion factor used in the assumptions
for valuation of the Group’s forestry assets
and as a factor incorporated into the risk
premium applied to mature and immature
timber. Climate change was considered in
the assessment of the fair value of assets
and liabilities acquired in business
combinations, as detailed on page 184-185.
The Group accounting policies reflect the
impact of climate change considerations
in relation to the assessment of the residual
values and estimated useful economic lives
of property, plant and equipment, as
detailed on pages 198-199, and in relation
to the accounting policy applied for the
valuation of forestry assets and the
assessment of goodwill for impairment.
Sustainability-linked financing
The Group’s €750 million revolving multi-
currency credit facility agreement (RCF)
was increased to €1 billion on
2 January 2025. The margin on the facility
is linked to a number of the Group’s key
MAP2030 sustainability targets, classifying
it as a Sustainability-Linked Loan. Linking
our access to capital to our sustainability
performance reflects our commitment to
meeting our strategic sustainability targets.
Capital investments
Energy-related investments can drive
decarbonisation and enhance our asset
base. Since 2019, we have invested in and
approved around €500 million of energy
and process efficiency projects, including
a new recovery boiler and biomass boiler
at Richards Bay (South Africa), and a
modernisation project at Dynäs (Sweden).
Our investments aim to optimise energy
and process efficiency and replace fossil
fuel-based energy with renewable sources.
Our current commitments, outlined in
MAP2030, build on the progress we
have achieved so far and set ambitious
near- and long-term Net-Zero targets
into the future.
Mondi Group
Integrated report and financial statements 2024
54
Task Force on Climate-related Financial Disclosures (TCFD) continued
Our climate-related financial disclosures continued
Our risks and opportunities
We identified six climate change-related
risks and two climate change-related
opportunities as financially material to our
business.
We evaluate and report on our short-
(up to three years), medium- (three to
seven years) and long-term (more than
seven years) climate-related transition
and physical risks and opportunities,
and the financial implications.
Transition risks may occur when moving
towards a less polluting, low-carbon
economy. Some sectors of the economy
might face big shifts in asset values or
higher costs of doing business. Climate
change means we may face more frequent
or severe weather events like flooding,
droughts and storms.
The TCFD recommends applying widely
used reference scenarios that are publicly
available and peer reviewed.
Our assessment of the financial
implications of our climate change-related
risks and opportunities was prepared
considering 1.5°C, 2°C and business-as-
usual (BAU) scenarios1, 2, 3.
Physical risks and opportunities are
considered more severe under the BAU
scenario, as under this scenario, physical
climate change-related events are more
frequent and severe with an increased
likelihood of impact on our business.
Under the 1.5°C and 2°C scenarios we still
observe some impacts of physical climate
risks. Our mitigation measures are designed
to reduce the impact of these risks under
the three presented scenarios.
In contrast to physical risks, transition risks and
opportunities increase in likelihood under the
2°C scenario compared with BAU, with earlier
policy action and a more aggressive transition,
and are further amplified under the 1.5°C
scenario. This is driven by an increase in
stricter regulations around carbon and energy
as well as the increased scrutiny of target
achievements through increased market
and customer pressure.
Given the nature of transition risks, the
likelihood of occurrence is lower under
the BAU scenario, as there is limited
change projected to current regulation
and litigation pressures.
During the year, we assessed our climate
change-related risks and opportunities and
have specified the estimated financial
impact, outlining a potential reduction in
operating profit for risks and a potential
increase in operating profit for opportunities,
as disclosed in the tables below and on
pages 56-57, taking into consideration
mitigation measures implemented by the
Group. These risks and opportunities only
reflect our climate change-related risks and
opportunities and reflect an update of the
risks and opportunities presented in our 2023
Integrated report. For an overview of all our
Group principal risks, please refer to page 63.
Key changes in the year
The climate change-related risks and
opportunities are consistent with those
reported in 2023. One risk, chronic changes
in precipitation is removed from this year's
report due to reassessment of water risk.
One opportunity, sale of by-products, is
removed from this year's report as it is no
longer material, due to being partly realised.
The estimated financial impact for the
below risks and opportunities is consistent
with the prior year except for risks 1, 4 and
5, which have been revised lower, taking
into account current expectations
concerning wood and energy costs.
1
The IPCC’s most optimistic scenario describes
a world where global CO2 emissions are cut to
Net-Zero by around 2050. The scenario meets the
Paris Agreement’s goal of keeping global warming
to around 1.5°C above pre-industrial temperatures,
with warming hitting 1.5°C but then dipping back
down and stabilising around 1.4°C by the end of
the century.
2
The International Energy Agency’s 2°C scenario is
based on limiting global temperature rise to below
2°C above pre-industrial levels under an emissions
trajectory that allows CO2 emissions to be reduced
by almost 60% by 2050 compared with 2013.
Under this scenario emissions are projected to
decline from 2020 and they continue their decline
after 2050 to reach carbon neutrality.
3 The Representative Concentration Pathway’s
8.5 (RCP8.5) scenario is a business-as-usual
(BAU) scenario, which projects the global mean
temperature to rise by 2.6°C to 4.8°C and the
global mean sea level to rise by 0.45 metres
to 0.82 metres by the late 21st century.
Climate change-related risks and opportunities
Climate change-related risks
Annual estimated
financial impact (€m)
Timeframe
Scenario sensitivity
Short
Medium
Long
1.5°C
2°C
BAU
Physical
risks
1. Higher wood procurement costs
75-140
2. Risk of flooding
15-85
3. South African plantation yield loss
15-20
Transition
risks
4. Energy supply costs
60-110
5. GHG emissions regulatory changes
(net impact)
40-80
6. Asset impairment risk1
10-30
Total climate change-related risks
215-465
Climate change-related opportunities
1. Changing customer behaviour
120-240
2. Reduced operating costs through energy efficiency
15-25
Total climate change-related opportunities
135-265
Anticipated onset of
risk or opportunity
Estimated full impact
of risk or opportunity
High likelihood
Low likelihood
1 The asset impairment risk is a one-off write-down and not annually recurring.
Mondi Group
Integrated report and financial statements 2024
55
Climate change-related risks: Physical risks
1. Higher
wood
procurement
costs
Timeframe:
Long term
Temperature increase, changes in rainfall patterns
and windstorms can result in large-scale forest damage.
In Europe, at lower altitudes, fibre losses from pests
(e.g. bark beetles) and diseases are expected to continue
unless precipitation increases.
A reduction in the cutting capacity of sawmills due
to a lack of spruce saw logs could lead to a change
in the mix of available pulpwood and sawmill chips.
Increasing competition for wood is being driven
by demand for renewable raw materials and timber
for green energy generation to achieve EU GHG reduction
and Net-Zero targets. At the same time, there is a call
to increase forest areas set aside for conservation, which
is reflected in the 2030 EU Forest Strategy.
In mountainous regions, we expect an increase in yearly
forest growth due to rising temperatures. At lower
altitudes, spruce will be mainly replaced with other
softwood species. We are investigating alternatives
to support flexibility in species mix for our future
pulp production.
We invest in research and development projects and
strategic partnerships with forest owners and industries,
NGOs and scientific institutions to foster sustainable
forest management.
This is supported by the sustainable working forest model
and fit-for-purpose certification concepts, which we
developed and promote with our partners.
We also promote the cascading use of wood nationally
and via Cepi on a European level.
75-140
2. Risk of
flooding
Timeframe:
Long term
Our mills are often located close to rivers which provide
the water needed for our operations.
Climate change may increase the frequency and extent
of flooding events through surface water flooding
(e.g. after extreme rainfall or rapid snow melting)
or flooding of low-lying coastal regions (due to sea
level rise) which may cause damage to our operations.
While taking into account the investments we have made
at our operations to mitigate the potential impact of
flooding, our risk quantification considers mill downtime
due to wider local infrastructure damage in the event of
a significant flooding event.
Our operations regularly review their flood prevention
plans, collaborate with governments and hydropower
energy providers in the regions where we operate and
invest in flood protection solutions where necessary.
Our current flooding assessments show that our mills are
mostly on elevated ground in relation to flood sources. The
measures implemented are generally sufficient to mitigate
flood risk to an acceptable level. We have ongoing
assessments of additional measures such as
implementation of physical barriers, flood gates and
elevating critical equipment where necessary.
Our geographic diversification enables operational
flexibility to meet customer orders if flooding were
to occur at a mill.
15-85
3. South
African
plantation
yield loss
Timeframe:
Medium term
Increased severity and frequency of extreme weather
events may result in disruptions and decreased harvesting
capacity of our managed plantation forests. Extreme
weather conditions may impact plantations through
sustained higher temperatures, which can lead to stronger
winds and increased windfalls. Plantations may be
vulnerable to changes in rainfall patterns and erosion.
Higher temperatures may increase vulnerability of trees
to pests and diseases. Fire remains a challenge for our
South African plantations, exacerbated in years when
drought conditions occur.
Our tree improvement programme aims to produce
stronger, more robust trees that can resist disturbances
such as drought, pests and diseases. We mitigate fire risks
with naturally vegetated open corridors acting as
firebreaks between forest plantations, management of
biomass under the forest canopy and investment in a
modern firefighting fleet and professional firefighters.
We have improved pre- and post-burning assessments at
harvesting sites. These aim to mitigate the risks of erosion
and nutrient loss after prescribed burning to ensure healthy
soils, which are critical for productive plantation forests.
15-20
Risk
Risk description
How we manage and mitigate this risk
Annual
estimated
financial impact
(€m)
Climate change-related risks: Transition risks
Risk
Risk description
How we manage and mitigate this risk
Annual
estimated
financial impact
(€m)
4. Energy
supply costs
Timeframe:
Medium term
Due to increasing regulation on fossil-based energy
sources, increased demand for renewable energy and the
shifting energy supply mix, the Group estimates that our
total energy costs could increase in the medium term by
up to 10-20%.
In the medium to long term, the energy supply mix
transition in Europe includes the closing of coal-fired
power plants, selective closure of nuclear power capacity
and increased reliance on renewable sources of energy.
Wind and solar energy supply can be inconsistent due to
weather patterns leading to reliance on fossil fuels during
the energy transition period.
We continue to focus on energy efficiency and to
deliver incremental improvements through operational
enhancements and our ongoing capital investment
programme. Biomass, which is sourced mainly from by-
products of the pulp process, accounts for 66% of the
fuels used to generate on-site energy at our operations.
This has been made possible through significant
investments over a number of years in making our facilities
more energy efficient and increasing backward integration,
primarily into biomass-based energy generation.
Investment in improvements to our sourcing of energy and
increased electricity self-sufficiency, including the use of
renewable energy sources, strengthens the energy
efficiency of our operations while reducing operating
costs. Where we generate electricity surplus to our own
requirements, we may sell such surplus.
60-110
Mondi Group
Integrated report and financial statements 2024
56
Task Force on Climate-related Financial Disclosures (TCFD) continued
Our climate-related financial disclosures continued
Climate change-related risks: Transition risks continued
5. GHG
emissions
regulatory
changes
(net impact)
Timeframe:
Short to
medium term
9 of Mondi’s 13 pulp and paper mills fall under the
EU Emissions Trading Scheme (EU ETS). Our mill in Bulgaria
was closed during the year and is not included in the
estimate. No converting operations are part of the EU ETS.
Some of our mills have sufficient EU ETS allowances, while
five may face a deficit in the short to medium term, resulting
in a potential Group net deficit position. Our Swedish mill,
Dynäs, will no longer participate in the EU ETS from 2026
due to investment in biomass-based energy generation,
which takes it above the 95% maximum biomass-based
energy emissions share threshold required for inclusion.
Our quantification excludes the risk that additional mills are
excluded from the EU ETS or allowances cease at our
material operations. Our risk quantification considered an EU
ETS carbon price range of €50 to €150 per tonne CO2.
There is a South African carbon tax on emissions from
fossil fuel combustion at our Richards Bay and Merebank
operations. The South African carbon tax is currently offset
by our forestry-related sequestration allowance; however,
a small cost is anticipated from 2026 onwards.
We collect detailed information on GHG emissions from
our mills and consider the cost of carbon when making
investment decisions.
Our ongoing investments reduce our reliance on fossil
fuels, improve energy efficiency and help to mitigate the
risk of insufficient CO2 allowances for our EU-based
operations, and reduce CO2 emissions for our South
African operations.
40-80
6. Asset
impairment
risk
Timeframe:
Long term
Driven by evolving regulation, there is a risk that certain
of the Group’s assets may be susceptible to impairment
if regulations require fossil-based energy plants to be
decommissioned by a certain date.
Our risk quantification considers the estimated carrying value
of fossil fuel-based energy plants in our mills based within the
EU at 2030 and their potential impairment. An impairment is a
one-off write-down of an asset. The mill’s remaining carrying
value is excluded from our quantification as our medium- to
long-term capital investment programme aims to replace
fossil fuel-based energy with renewable sources.
We aim to keep abreast of new and evolving regulations
and take actions to mitigate the impact of changes either
in our own operations or through participation in cross-
value chain partnerships. We also have the resources and
capacity to accelerate low-carbon energy-related
investments to achieve base load capacity in the instance
of regulatory and/or other required changes.
10-30
Total annual estimated financial impact of climate change-related risks
215-465
Risk
Risk description
How we manage and mitigate this risk
Annual
estimated
financial impact
(€m)
Climate change-related opportunities
1. Changing
customer
behaviour
Timeframe:
Short to
long term
The growing demand for sustainable packaging is driving
investment, collaboration and innovation to meet evolving
customer needs. Paper-based packaging is renewable and
generally recyclable making it an ideal alternative to less
sustainable solutions. Where certain barriers are required,
flexible plastic packaging can be a better alternative when
manufactured, used and disposed of appropriately.
Leveraging our unique portfolio of paper-based, hybrid and
flexible plastic solutions, we see an opportunity to meet the
demand for more sustainable products, using our leading
corrugated packaging and flexible packaging footprint and
increasing the focus on recyclability and the amount of
recycled content used within our solutions.
Our estimated quantification is based on 1-2% per annum
revenue growth in our packaging businesses in the long
term, driven by growing demand for more sustainable
packaging solutions.
As a leading packaging producer, Mondi is well positioned
to leverage the Group’s innovation capabilities, leading
market positions and strong customer base.
We actively collaborate with our customers to develop
innovative solutions that are sustainable by design,
taking industry-wide design for circularity guidelines
into consideration.
We are also investing in our asset base to increase
our cost-advantaged packaging capacity to meet
growing demand.
We are leveraging strong partnerships to bring
about positive change and drive the transition to
a circular economy.
120-240
2. Reduced
operating
costs
through
energy
efficiency
Timeframe:
Medium term
The production of pulp, paper and packaging is energy
intensive and energy generation is the major source
of our GHG emissions. By improving the efficiency of our
energy plants and manufacturing operations, we have
the opportunity to realise cost savings.
Our current capital investment programme continues to
prioritise investments in energy efficiency measures and in
increasing biomass-based energy in our mills.
Further investment projects are planned to meet our
science-based Net-Zero GHG emission reduction targets,
which is also expected to reduce our specific energy costs
and improve energy efficiency.
15-25
Total annual estimated financial impact of climate change-related opportunities
135-265
Opportunity
Opportunity description
How we realise this opportunity
Annual
estimated
financial impact
(€m)
Mondi Group
Integrated report and financial statements 2024
57
Risk management
Climate change is specifically identified
as a standalone Group principal risk, as
detailed on page 65. Climate change
risks, and the related mitigating actions,
are reviewed and updated annually by
the SD Committee and the Audit
Committee. Read about the Group’s risk
management framework on pages 60-61.
A cross-functional climate risk
team identifies and assesses our
material climate change-related risks
and opportunities through an iterative
process. The annual review considers the
breadth of our business, across operating
locations and our product portfolio,
including consultations with internal
and external technical subject experts
and senior operational management.
Our climate change-related risks and
opportunities are reviewed and approved
by the Executive Committee and the
SD Committee annually.
Climate change-related risks and
opportunities are managed and where
possible mitigated by our operational
management team and through
our capital investment programme.
The climate change-related risks and
opportunities are considered in the
preparation of, and integrated in, the
Group’s three-year 2025-2027 plan
(budget period).
Climate-related risk integration into our risk
management framework
Group risk
– Climate change is specifically identified as a standalone Group principal risk
– Detailed annual risk assessments performed across the Group
– Regular review of climate change-related matters by the SDC
Risk monitoring
– Monitor progress against our science-based Net-Zero targets for Scope 1, 2 and 3
emissions based on a 1.5°C global warming scenario
– Review of the impact of climate change-related risks and opportunities on budget planning
Operational mitigation and controls
– Invest to optimise energy and process efficiency and replace fossil fuel-based energy with
renewable sources
– Risk mitigation tools such as detailed flood management plans
Risk management framework
Page 60-61
Mondi Group
Integrated report and financial statements 2024
58
Task Force on Climate-related Financial Disclosures (TCFD) continued
Our climate-related financial disclosures continued
Metrics and targets
The Group uses a variety of metrics to
measure the current and potential impact
of our climate change-related risks and
opportunities, such as GHG emissions.
The targets covering GHG emissions
from Mondi’s operations and value chain
(Scope 1, 2 and 3) are consistent with a
reduction required to keep global warming
to 1.5°C by 2050 and prevent the most
damaging effects of climate change
according to the latest climate science.
Direct GHG emissions are from our energy
plants through combustion of fuels to
generate the energy required for our
manufacturing (Scope 1). We also purchase
energy from the grid (Scope 2) and have
indirect GHG emissions throughout the value
chain, mainly as a result of our purchase of
raw materials, fuel and transportation, which
together make up 97% of our total Scope 3
emissions. We are acting across all three
Scopes and working closely with our
partners to reduce GHG emissions for
our business and our value chain.
Our science-based Net-Zero targets
include both near- and long-term GHG
emissions reduction targets and are
approved by the SBTi. Due to changes in
our company structure, we have initiated a
recalculation of our emissions, in line with
the SBTi guidelines.
We understand that forests have a key
role in tackling climate change. We remain
committed to zero deforestation in
our wood fibre supply chains and to
maintaining carbon sinks in forestry
through implementation of best forest
management and silviculture practices.
Taking Action on Climate
Page 41-45
We report our GHG emissions according
to the Greenhouse Gas Protocol, published
by the WBCSD and the WRI, and have
reported our Scope 1, 2 and 3 GHG data
in compliance with ISO 14064:1-2006.
ERM CVS has assured, to a reasonable level
of assurance, our 2024 absolute Scope 1
and absolute Scope 2 GHG emissions data,
in accordance with ISO 14064-3, and to
a limited level of assurance our Scope 3
GHG data.
Given the strategic importance
of sustainability, a portion of the Group’s
executive directors' and the wider senior
management's remuneration is linked
to their contribution to the overall success
of MAP2030, including our GHG reduction
targets. 20% of the annual bonus awarded
to members of the Executive Committee,
which includes the Group CEO
and the Group CFO, and more than
3,000 employees across the Group,
is linked to sustainability objectives.
Remuneration report
Page 111-135
Metrics and targets used to assess and manage outcomes of climate-related risks and opportunities
Climate-related risk or opportunity
Metrics and targets
Further information
Risk
1. Higher wood procurement
costs
Trends in raw material market prices and availability are closely monitored through internal
procurement reporting
Page 49
2. Risk of flooding
Insurance report prepared internally and by external specialists provide monitoring
and preparedness assessments
Page 48
3. South African plantation
yield loss
Climate-related impacts on plantation yields are measured and reflected as a component
of the risk premium applied to immature and mature timber in the Group's forestry asset
valuation, including factors for the anticipated impact of climate change on water scarcity
and fire risks. Yield metrics for South African plantations are tracked
Page 44
4. Energy supply costs
Metric: Biomass sources, mainly from by-products of the pulp process
Unit of measure: Percent of fuels used to generate on-site energy at our operations
2024: 66% 2023: 62%
Page 42
5. GHG emissions regulatory
changes (net impact)
Metric: Total Scope 1 and Scope 2 emissions
Unit of measure: million tonnes CO2e
2024: 1.86 2023: 2.10
Page 42-43
Related target: Reduce our Scope 1 and 2 GHG emissions by 46.2% by 2030
from a 2019 baseline.
6. Asset impairment risk
Annual impairment assessments are performed including considerations
of climate-related risks
Page 57
Opportunity
1. Changing customer
behaviour
Metric: Reusable, recyclable or compostable products
Unit of measure: Percent of Group revenue
2024: 87% 2023: 85%
Page 34
Related target: 100% of our packaging and paper products are reusable, recyclable
or compostable by 2025
2. Reduced operating costs
through energy efficiency
Metric: Total share of renewable energy
Unit of measure: Percent of Group energy from renewable sources
2024: 79% 2023: 75%
Page 42
Mondi Group
Integrated report and financial statements 2024
59
Our Group risk management
framework and internal control
environment are designed to
protect shareholder value while
managing risks and identifying
opportunities.
Our risk management
framework
The Board has overall responsibility
for setting the Group’s strategy and is
responsible for monitoring and maintaining
the effectiveness of the Group’s risk
management activities and internal control
processes. The Board has put in place
procedures for identifying, evaluating and
managing the risks faced by the Group.
The Board has determined the Group’s
residual risk exposure and related risk
appetite, using a risk rating matrix
which takes into consideration both the
likelihood of the risk event occurring and
the magnitude of the impact in the event
that the risk event occurs. The risk rating
matrix is based on the residual risk
that the Group faces after taking into
consideration the internal control
environment and related mitigating actions
and controls. The Board has established
specific appetite levels for each principal
risk, ensuring that our risk exposure
remains appropriate at all times. The Board
considers changes to principal risks and risk
appetite, and also reviews emerging risks
during the year.
The Audit Committee performs an annual
review of the Group’s principal risks and
related mitigation, including consideration
of acceptable risk appetite levels for the
Group. Each of the Group’s principal risks,
related risk appetite and emerging risks are
reviewed in detail by either the Board, the
Audit Committee or the Sustainable
Development Committee through the
course of the year, considering the detailed
risk description, the controls and mitigating
actions in place, the level of internal and
external assurance obtained, and the
resultant residual risk exposure.
Business units are required to conduct
an annual, detailed review of their risks
and maintain a risk register which is
reviewed and approved by the business
unit operating committees. The risk
management process ensures that the
various business unit operating committees
review the principal and emerging risks
in their respective businesses and identify
the actions and controls to mitigate these
risks. Risk management is embedded in all
decision-making processes and captured
in our policies, procedures and delegated
authorities, with ongoing review by the
Board and risk assessments forming part
of all investment decisions.
In combination with the Audit Committee,
the Board has conducted, over the course
of the year, a robust assessment of the
Group’s principal and emerging risks and it
is satisfied that the Group has effective
systems and controls in place to manage
these risks relative to the risk appetite
levels established.
Our internal control
environment
Our internal controls aim to provide
reasonable assurance as to the accuracy,
reliability and integrity of our financial
information and non-financial disclosures
and the Group’s compliance with
applicable laws, regulations and internal
policies, as well as the effectiveness
of internal processes.
Through our structured approach, the
control environment is subject to regular
monitoring and review to reduce the
likelihood of any significant deficiencies
arising. Control weaknesses are identified
and addressed, and new or emerging risks
are identified early and monitored regularly.
The Group’s internal control systems have
been in place for the year under review and
up to the date of approval of the Integrated
report and financial statements 2024 and
are in accordance with the Guidance on
Risk Management, Internal Control and
Related Financial and Business Reporting
issued by the Financial Reporting Council.
No significant failings or weaknesses were
identified in the internal control systems
for the year under review.
The Board and its committees have
approved the Group’s financial, business
conduct, operating and administrative
policies, including those relating to
delegation of signing authorities and
information security. The policies provide
a framework for the Group’s internal
control environment and prescribe required
standards of behaviour. Business units are
required to ensure that they adhere to
approved Group policies and that they
have implemented their own supporting
policies where appropriate. In line with the
approved delegation of authorities, specific
matters are reserved for Executive
Committee or Board approval, including
the approval of major capital investments,
acquisitions and disposals.
Management is responsible for regularly
reviewing the Group’s financial
performance, and it is the responsibility
of management at all operational levels
to ensure that risks are appropriately
managed and a proper internal control
environment is in place to anticipate and
respond to risks. The Group’s financial
reporting process includes the monthly
results and management reports, the
three-year 2025-2027 plan (budget period),
and three updates to the first budget year
during the course of that budget year.
Detailed monthly management reports and
variance analyses comparing actual with
prior year results are prepared. In-depth
reviews of business units and market
developments are performed regularly, and
are designed to ensure ongoing monitoring
of financial and sustainability performance
and early identification of potential issues
and/or emerging risks. In addition, the
Board reviews the Integrated report and
financial statements to ensure it is fair,
balanced and understandable, and the
Audit Committee reviews and approves
the accounting policies each financial year.
The Board is considering any changes
required to our approach to internal
controls as a result of the revisions to
the UK Corporate Governance Code,
particularly in respect of non-financial
information. More information can be
found on page 100.
Mondi Group
Integrated report and financial statements 2024
60
Principal risks
Managing our risks
Our risk management framework and internal control environment
External audit
External assurance
is provided through
external audit which
is designed to detect
material errors and
material irregularities
that impact the
financial statements
Board
Overall responsibility for the Group’s strategy and risk management
Determines risk appetite in line with Group strategy, and approves the Group’s risk management framework
Approves the annual three-year plan
Sustainable Development Committee
Audit Committee
Monitors and reviews material safety, health, environmental
and other sustainable development risks, including climate
change risks and opportunities
Reviews and monitors the adequacy and
effectiveness of the Group’s internal control and risk
management processes
Ongoing review of the principal risks through the course of the year
Approves the annual internal audit plan
Internal audit
The Group has a
centrally coordinated
Internal Audit function
that reports directly
to the Audit
Committee and is
mandated to perform
Group-wide reviews
of key processes,
projects and systems,
based on the
Group’s strategy
and principal risks
Executive Committee
Formulates risk management policies in terms of the approved risk management framework to ensure risks are managed considering
established risk appetite levels
Assesses and monitors risks on an ongoing basis
Business units
Group functions
Hold the ownership, responsibility and accountability for assessing
and mitigating risks as well as implementing risk management
policies and procedures
Responsible for oversight of adherence to the Group’s policies,
procedures and controls; facilitation of the implementation of
risk management practices; and management of specific risk
areas that benefit from central coordination (e.g. finance, information
technology, legal, procurement, safety and health,
sustainable development, tax and treasury)
Work closely with the business units to manage and monitor these risk areas
The three levels of assurance in our internal control environment
Operational management
– Key policies and procedures covering all main areas
of business conduct are approved by the Board
and each business unit and Group function is required
to adhere to these overall Group policies.
– Management is responsible for regularly reviewing
its entity’s operating, financial and sustainability
performance and for preparing and reviewing
monthly management accounts and business
reports as appropriate.
– Twice a year, all financial managers are required
to complete an internal control assessment
and provide written confirmation of compliance
with Group policies and procedures. This formal
confirmation highlights any control weaknesses
or deficiencies identified.
Management review
– Management is responsible for regularly reviewing
the Group’s operating, financial and sustainability
performance, including monthly management
accounts, and the progress of significant capital
investment projects.
– Management at Group level and, in more depth,
at business unit level, is responsible for a detailed
assessment of current market conditions.
– The Group functions (including finance, information
technology, safety and health, sustainable
development, tax and treasury) each have
Board-approved policies in place against which
conduct is regularly assessed.
Independent assurance
– Internal audit.
– Regular reviews and vetting by external regulatory
and non-regulatory parties, as required and as part
of our operational management, including ISO
certification, Sustainable Development report
assurance and information security programmes.
– The Group sustainable development key
performance indicators are externally verified.
Sustainable Development report 2024
www.mondigroup.com/sd24
Risk management process
Continuous
improvement
strengthens our
processes in line with
our risk management
framework
Mondi Group
Integrated report and financial statements 2024
61
Principal risks in 2024
Over the course of the past year, the Board
and the Audit Committee have reviewed
the Group’s principal and emerging risks.
In evaluating the Group’s risk management
and internal control processes, the Audit
Committee has considered both internal
and external audit reports and received
confirmation from the finance directors
of the business units that the Group’s
control frameworks have operated
satisfactorily. The sustainable development
risks considered throughout our business
have been reviewed by the Sustainable
Development Committee during the year.
Sustainable development risks that are
considered to be principal risks are
reviewed by the Audit Committee as
part of the annual review process.
A detailed risk assurance map is used
to present our principal risks to the
Board, Audit Committee and Sustainable
Development Committee, facilitating
comprehensive discussions on risk.
The Group remains committed to
the continuous improvement of risk
assessment, risk management and
risk reporting.
Key changes in the year
The Group’s most significant risks are
long term in nature. The assessment
of the principal risks is updated annually
to reflect the developments in our
strategic priorities and Board discussions
on principal and emerging risks.
The outcome of the review of the Group
principal risks is that there are no changes
to the risk ratings as presented on the
Group risk map.
The Board considered decreasing the
risk rating for cost and availability of raw
materials due to a stabilised procurement
environment; however, the risk rating
was maintained due to longer-term
structural changes in the pricing and
availability of wood.
Emerging risks
The Board introduced a new emerging
risk related to the integration of a
major acquisition, prompted by the
announced acquisition of the Western
Europe Packaging Assets of
Schumacher Packaging, which is
scheduled to complete in the first half
of 2025.
The risks noted relating to a major
acquisition included the integration
of a private company into a public
company environment, the scale of
the acquisition, the need to integrate
IT systems and the combining of
different corporate cultures.
The Board is confident that risks
associated with the acquisition will be
well mitigated, and that inclusion as an
emerging risk and not as a principal
risk is the correct assessment.
In 2023, the Group noted one emerging
risk concerning the execution of major
capital expenditure projects. This
emerging risk was amended in 2024 to
an emerging risk labelled start-up and
commercial ramp-up of major capital
projects. The amendment is due to the
current phase of the Group’s capital
investment programme. The emerging
risk is managed through mitigating
activities, such that the residual risk
exposure is not considered significant.
Asset start-up and commercial ramp-
up are planned in detail and updated
from initial project inception through
to completion. Post-investment reviews
are conducted on major capital
investments to evaluate the project
execution against the plan and identify
lessons learnt. We will continue to
monitor and mitigate potential
risks relating to the start-up and
commercial ramp-up of major capital
projects in the year ahead.
Mondi Group
Integrated report and financial statements 2024
62
Principal risks continued
Our principal risks
Link to strategy
Delegated risk owner
Strategic
Industry productive capacity
Executive Committee
●
●
Product substitution
●
●
Fluctuations and variability in selling prices
or gross margins
●
●
●
Country risk
●
Climate change risks
Group Head of Sustainable Development
●
●
●
Financial
Capital structure
Group CFO
●
●
Currency risk
Group Treasurer
●
●
Tax risk
Group Head of Tax
●
●
Operational
Cost and availability of raw materials
Chief Procurement Officer
●
Energy security and related input costs
Group Head of Operations
●
●
Technical integrity of our operating assets
●
●
Environmental impact
Group Head of Sustainable Development
●
Employment and contractor health and safety Group Head of Safety & Health
●
Attraction and retention of key skills and talent
Chief People Officer
●
Cyber security risk
Chief Information Officer
●
●
●
●
Compliance
Reputational risk
Executive Committee
●
●
●
Link to strategy
Our principal risks, independently or in combination, may impact the Group’s ability to deliver on its strategy. The above table
indicates the components of our strategy that are most likely to be impacted as a result of each principal risk and are defined below:
Group risk map
The risk map presents our principal
risks based on a risk exposure score
which assigns a higher weighting
to the impact of a risk event than
to the perceived likelihood. This
emphasises the prioritisation and
escalation of risks that could have
the greatest impact to our business.
The principal risks reflected on the risk
map are updated annually. There were
no changes to the risk positions since
last year.
Mondi Group
Integrated report and financial statements 2024
63
Drive performance along the value chain
Invest in quality assets
Empower our people
Partner with customers
Strategy key
Risk trend key
Drive performance along
the value chain
Invest in quality assets
Empower our people
Partner with customers
Increased
No change
Decreased
Strategic risks
Industry productive capacity
Description
Key mitigation
Risk owner
Executive
Committee
(oversight CEO)
Risk trend
Link to
strategy
– Market supply/demand balance is impacted by large
incremental new capacity additions.
– Unless market growth exceeds capacity additions, excess
capacity may lead to lower selling prices.
– Plant utilisation levels are the main driver of profitability in
our production sites.
– Monitor industry developments in terms of changes in capacity and
utilisation levels both short and long term, as well as market trends and
trade flows in our product markets, enabling us to establish target
capacity utilisation levels in the short term and to evaluate capital
investment projects in the long term.
– Strategic focus on owning cost-advantaged assets, with consistent
investment to secure our competitiveness, coupled with increasing our
exposure and focusing on developing solutions in structurally growing
packaging markets.
– Maintaining strong relationships with machine suppliers to identify
current market developments and technologies, coupled with a routine
review of our asset portfolio and capacity utilisation levels to identify
underperforming assets and take decisive action to drive performance.
Product substitution
Description
Key mitigation
Risk owner
Executive
Committee
(oversight CEO)
Risk trend
Link to
strategy
– Changes in consumer preferences and socio-economic
and demographic trends can affect the demand for
packaging and paper products in general, and demand
for specific grades of our products in particular.
– Substitution can be to a different packaging or paper
substrate or to a different solution meeting the same need.
– With increased public awareness of sustainability
challenges and our customers’ focus on sustainable
packaging, on balance, our business faces more
opportunities than risks, underpinned by the transition to
more sustainable solutions, although there could be
pressures on certain areas of our portfolio.
– Product substitution trends, many of which benefit
Mondi, are, for example: replacing plastic-based with
paper-based packaging; moving to mono-material
recyclable plastic packaging solutions; lighter weighting
of products; increasing the recycled content in
packaging; demand for certified and responsibly
produced materials; and the impact of digital media on
uncoated fine paper demand.
– The EU's Packaging and Packaging Waste Regulation
(PPWR) is expected to further influence product
substitution.
– A wide portfolio of paper-based and flexible plastic-based solutions
provides protection from the effects of substitution.
– Engagement with customers and consumers to help understand and
drive a more sustainable approach to their packaging requirements.
– Development of sustainable, competitive and cost-effective products.
– Continuous focus on products enjoying positive substitution dynamics
and growing regional markets.
– Regular monitoring of trends and new developments in our
product markets.
– Continued collaboration with stakeholders across the value chain such
as the Ellen MacArthur Foundation and Cepi.
– Providing product impact and life cycle analysis insights to customers
through our Product Impact Assessment tool, product carbon
footprints and other expert analysis on trade-offs.
Fluctuations and variability in selling prices or gross margins
Description
Key mitigation
Risk owner
Executive
Committee
(oversight CEO)
Risk trend
Link to
strategy
– Price fluctuations in our key paper products can have
material profit and cash flow implications.
– Selling prices are influenced by changes in capacity and
demand for our products, which are, in turn, influenced
by macroeconomic conditions, competitive behaviour,
consumer spending preferences and inventory levels
maintained by our customers.
– Changes in prices differ between products and
geographic regions, and the timing and magnitude of
such changes have varied significantly over time.
– Gross margins in our converting operations are impacted
by fluctuations in key input costs, such as paper, which
cannot be passed on to customers in all cases.
– Strategic focus on higher growth markets and products where we
enjoy a competitive advantage through innovation, proximity or
production cost.
– Continued investment in our high-quality, cost-advantaged asset base,
ensuring we maintain our competitive cost position while developing
businesses in higher growth markets with better long-term fundamentals.
– Exposure to price volatility of key input costs is reduced by our high
levels of vertical integration.
– Financial policies and contract structures take the inherent price
volatility of the markets in which we operate into consideration.
– Ongoing monitoring of current market fundamentals, market demand
trends and market prices, enabling evaluation of price expectations in
the short term and increased understanding of long-term trends.
– Continuous monitoring of our order intake to identify changing trends
and developments in our own product markets.
– Frequent review of gross margin development in order to monitor price
pass-through to customers.
Mondi Group
Integrated report and financial statements 2024
64
Principal risks continued
Strategic risks continued
Country risk
Description
Key mitigation
Risk owner
Executive
Committee
(oversight CEO)
Risk trend
Link to
strategy
– The Group operates in a number of countries with
differing political, economic and legal systems. In some
countries, such systems are less predictable than in
countries with more developed institutional structures.
Political or economic upheaval, changes in laws,
nationalisation, or expropriation of assets may have a
material effect on our operations in those countries.
– The current macroeconomic environment is impacted by
a number of uncertainties, including the effects of
increased protectionism, use of trade tariffs and
economic sanctions.
– In South Africa, the Group is subject to land claims and
could face adverse land claim rulings.
– Sustained higher inflation is evident in many economies.
Türkiye is experiencing a hyperinflationary economic
environment.
– Our geographic diversification and decentralised management
structure reduce our exposure to any specific jurisdiction.
Our operational management teams have strong localised operational
experience.
– Capital and debt are structured in each country based on assessed
risks and exposures in order to mitigate the effect of country specific
risks.
– Regular review of our sales strategies to ensure compliance with trade
restrictions and sanctions and to mitigate export risk in countries with
less predictable environments and, where possible, obtaining credit
insurance.
– Country-specific risk premiums are approved by the Board to be
added to the required returns on investment projects in those
countries where risks are deemed to be higher; new investments
are subject to rigorous strategic and commercial evaluation.
– Maintain a permanent internal audit presence and operate asset
protection units in large operations in higher risk locations.
– In South Africa, the Group has settled a number of land claims
structured as sale and leaseback arrangements, which provide
a framework for settling future land claims.
– Regular formal and informal interaction with government officials, local
communities and business partners helps us to remain abreast of
changes and new developments.
Climate change risks
Description
Key mitigation
Risk owner
Group Head of
Sustainable
Development
Risk trend
Link to
strategy
– Climate change risks will likely impact our business in the
future.
– Greenhouse gas (GHG) emissions are regulated in many
countries and regions where we operate, with increasing
regulation and climate change-related transition risks
potentially impacting our costs. The energy we require to
manufacture our products results in Scope 1 and Scope
2 GHG emissions. Our value chain emissions contribute
to our Scope 3 emissions.
– Climate change is creating both physical and transition
risks which impact forests, and which pose a threat to
our access to sustainable fibre, the main raw material for
our paper products.
– Customers and consumers are concerned about the
consequences of climate change and are looking for
solutions produced from renewable materials and
reduced carbon footprints. Investors consider the climate
impact of their portfolios.
– Our climate change risks include transition and physical
risks. Transition risks include regulatory risks, for example
GHG emission-related regulatory changes and energy
supply cost volatility due to changes in future energy
supply mix. Physical risks include the impact of changing
precipitation patterns and increased costs driven by a
shortage of wood supply in the long term due to physical
impacts such as droughts, pests and diseases.
– Reducing our GHG emissions through a combination of capital
investment and ongoing efficiency programmes to improve our energy
efficiency, increasing the use of biomass-based fuels and decreasing
carbon-intensive energy sources.
– Our geographically diverse mill locations mean that the Group sources
wood from diverse regions and forest types, mitigating the potential
impacts of climate change on our wood fibre raw materials, particularly
in Europe. In South Africa, we continue to investigate and select trees
which require less water and are more resistant to pests and disease.
– Monitoring and measuring our impact on climate change, reporting and
having our GHG emissions and energy usage independently assured.
– Committing to transition to Net-Zero in line with a 1.5°C scenario
by 2050 and working on reducing our emissions in line with our
approved SBTi targets across Scope 1, 2 and 3 emissions.
– Investigating and reporting on climate change risks and opportunities in
adherence to internationally accepted recommendations, such as those
published by the FSB’s TCFD.
TCFD
Page 52-59
Mondi Group
Integrated report and financial statements 2024
65
Financial risks
Capital structure
Description
Key mitigation
Risk owner
Group CFO
Risk trend
Link to
strategy
– An inability to maintain a strong and stable financial
position would limit the Group's strategic flexibility and
ability to take advantage of opportunities.
– Our ability to raise debt and/or equity financing is
significantly influenced by general economic conditions,
developments in credit markets, equity market volatility
and our credit rating.
– Failure to obtain financing at reasonable rates could
prevent us from realising our strategy and have a
negative impact on our competitive position.
– Maintaining strong investment grade credit metrics provides access to
global debt capital markets.
– Our central Treasury function operates under a Board-approved
Treasury Policy, targeting investment grade credit ratings and with
access to diverse sources of funding with varying maturities.
– Our financing agreements do not contain financial covenants.
– Regular reporting to the Board on our treasury management policies.
– Compliance with treasury policies is monitored and we engage external
advisers to review the Treasury function at regular intervals.
Currency risk
Description
Key mitigation
Risk owner
Group Treasurer
Risk trend
Link to
strategy
– We are exposed to the effect of changes in foreign
currency rates; the impact of currency fluctuations
affects us because of mismatches between the
currencies in which our operating costs are incurred and
those in which revenues are received.
– Key operating cost currencies that are not fully offset by
local currency denominated revenues include the South
African rand, Polish zloty, Czech koruna and Swedish
krona, while the fluctuations in the US dollar, pound
sterling and Turkish lira can also have a material impact
as our revenues in these currencies are greater than
operating costs incurred.
– Appreciation of the euro compared with the currencies
of the other key paper-producing regions or paper
pricing currencies, notably the US dollar, reduces the
competitiveness of Mondi products in Europe compared
with imports, which can result in lower revenues and
earnings.
– Hedging is utilised for balance sheet exposures and material forecasted
capital expenditures upon identification.
– Diversification of the Group’s currency exposure creates natural
hedges, and as such we do not hedge our exposure to projected
future sales or operating costs and our businesses respond to adverse
currency fluctuations by increasing selling prices or increasing exports
where competitiveness improves as operating currencies weaken;
entities also borrow in their local currencies to minimise translation risk.
– Continuous monitoring of exchange rate movements and sensitivities,
and evaluation of the impact of exchange variances on our results.
– Regular review of our prices and monitoring of import and export
trade flows.
Tax risk
Description
Key mitigation
Risk owner
Group Head of Tax
Risk trend
Link to
strategy
– There is an increasing disclosure compliance burden in
the international tax environment, requiring increasing
transparency and reporting and in-depth scrutiny of the
tax affairs of multinational companies. The introduction of
the global minimum tax rules (Pillar 2 rules) increases
compliance complexity for the Group.
– We make significant intra-group charges, the basis for
which is subject to review during tax audits.
– A Board-approved Group tax strategy is reviewed annually.
– Appropriate and attentive management of our affairs, with operations
structured tax efficiently to benefit from available incentives and
exemptions.
– Dedicated tax resources throughout the Group supported by a
centralised Group tax team.
– Arm’s length principles are applied in the pricing of all intra-group
transactions in accordance with Organisation for Economic
Co-operation and Development (OECD) guidelines.
– External advisory opinions are obtained where relevant, including major
projects such as acquisitions and restructuring activities.
– Regular engagement with external advisers to stay up to date with
changes in tax legislation and tax practice.
Mondi Group
Integrated report and financial statements 2024
66
Principal risks continued
Operational risks
Cost and availability of raw materials
Description
Key mitigation
Risk owner
Chief Procurement
Officer
Risk trend
Link to
strategy
– We use significant amounts of wood, pulp, paper for
recycling, polymers and chemicals in our production
processes, meaning access to these raw materials is
essential to our operations.
– The prices for many raw material inputs fluctuate in
correlation with global commodity cycles.
– Wood prices and availability may be adversely affected
by reduced quantities of available suitable wood supply
due to increased frequency of severe weather events,
changes in rainfall, increased pest and disease outbreaks,
increased use of wood as biofuel, alternative use of wood
for heating and changes in demand for wood as a
building material.
– Climate change will create long-term structural changes
to the pricing and availability of wood, with temperature
and precipitation changes resulting in a geographic shift
of optimal forest growth areas, and an impact from
forest-related legislative policies, particularly in the EU.
– Force majeure events can influence raw material supply
and pricing, directly affecting the market production and
supply balance.
– We are committed to acquiring our raw materials from responsible
sources and avoiding the use of any controversial or illegal supply.
Our Responsible Procurement process helps us to assess and evaluate
the performance of our suppliers and their adherence to our policies.
– Multi-stakeholder processes address challenges in meeting demand
for sustainable fibre; we encourage legislation for the local collection
of recycled materials.
– Our operations use multiple suppliers and a centralised procurement
team works closely with our operations in actively pursuing longer-term
agreements with strategic suppliers; in Europe, our geographically
diverse mill locations mean that the Group sources wood from diverse
regions and forest types to mitigate the potential supply impacts of
unforeseen events. We source wood from our own managed forests
in South Africa.
– Strong relationships with suppliers of critical raw materials
enable higher volume allocation in times of shortages, and a safety
stock programme facilitates exchange of raw materials within
our plant network.
– Where relevant, indexation clauses in revenue contracts allow
the pass-through of major raw material price movements.
– Wood and pulp suppliers are assessed as part of our Due
Diligence Management System which addresses the main legal
and sustainability risks.
– In South Africa, we have tree improvement programmes to
produce stronger trees; fire prevention and firefighting capacity
are integrated into a fire management system with local
Fire Protection Associations and neighbouring operations.
Energy security and related input costs
Description
Key mitigation
Risk owner
Group Head of
Operations
Risk trend
Link to
strategy
– Availability of sufficient and reliable energy supply is a
key focus area; as the transition to cleaner energy
sources accelerates, accompanied by increased
regulation, the energy supply portfolio is undergoing
long-term changes, such as an increase in demand for
renewable energy and an increase in carbon taxes, which
increases the risk of more volatile pricing as well as
potential for severe energy interruptions.
– Security of supply of gas is subject to political pressures
and could be intermittent, while renewable energy
sources, such as wind and solar, are subject to
unpredictable physical weather patterns. Competition for
sources of renewable energy, such as biomass, causes
cost and availability pressures.
– Rapid increases in fuel and energy costs represent higher
direct costs to the Group as well as for our suppliers,
which in turn may seek to increase prices which may be
difficult to pass on to customers and could cause a
contraction of gross margins.
– Income from the sale of renewable energy, either from
sales of certificates, subsidies or sales of renewable
energy to the grid, represents a source of income for
various pulp and paper mills and is subject to both
volatility in price and regulatory changes.
– Availability of sufficient and reliable electricity supply in
South Africa remains a concern and above inflationary
increases are virtually certain.
– Investment in improvements to our energy profile and increased
electricity self-sufficiency, including the use of renewable energy
sources, strengthens the energy efficiency of our operations while
reducing ongoing operating costs and carbon emission levels.
– Where we generate electricity surplus to our own requirements,
we may sell such surplus externally; we also generate income
from the sale of green energy credits in certain of our operations
at prices determined in the open market.
– Optimised use of biomass-based fuels enables reduced use of fossil-
based energy sources, such as carbon-intensive coal.
– Energy costs are closely monitored and benchmarked against external
sources and we monitor our electricity usage, carbon emission levels
and use of renewable energy; most of our larger operations have high
levels of electricity self-sufficiency.
– Monitoring of renewable energy market fundamentals and changes
in legislation supported by contact with local energy regulators.
– Detailed compliance assessments regarding Industry Emissions
and Energy Efficiency Directives to determine future investment
requirements.
Mondi Group
Integrated report and financial statements 2024
67
Operational risks continued
Technical integrity of our operating assets
Description
Key mitigation
Risk owner
Group Head of
Operations
Risk trend
Link to
strategy
– Our four major mills, Świecie (Poland), Štětí (Czech
Republic), Ružomberok (Slovakia) and Richards Bay
(South Africa), account for approximately 70% of our
total pulp and paper production capacity. If operations
at any of these key facilities are interrupted for any
significant length of time, it could have a material effect
on our financial position or performance. Our converting
operations are spread over a considerably larger number
of plants, providing risk diversification.
– Incidents such as fires, explosions, pollution events
or large machinery breakdowns, or the inability of our
assets to perform the required function effectively and
efficiently while protecting our people, the business, the
environment and stakeholders, could result in property
damage, loss of production, reputational damage, and/or
safety and environmental incidents.
– Regular maintenance and project-related shuts can
experience delays in start-up and ramp-up due to
reliance on external suppliers and contractors for
engineering services and equipment supplies.
– A capital investment programme supports the replacement of older
equipment to improve both reliability and integrity, and our proactive
repair and maintenance approach is designed to improve production
reliability and minimise breakdown risks.
– Detailed risk assessments of high-priority equipment are conducted
with specific processes and procedures in place for the ongoing
management and maintenance of such equipment.
– Production optimisation throughout the organisation by learning from
our best performing operations and identifying emerging issues early.
– All incidents are actively monitored with a formal reporting process
which allows us to share lessons learnt across our operations, identify
emerging issues, conduct benchmarking, and evaluate
the effectiveness of our risk reduction activities.
– External experts perform technical integrity assessments at our major
sites and enhance our engineering and loss prevention competencies
and capabilities.
– A Fire Protection programme supported by external experts and
independent loss prevention audits with property insurance cover
for key risks.
Environmental impact
Description
Key mitigation
Risk owner
Group Head of
Sustainable
Development
Risk trend
Link to
strategy
– Our operations require water and energy and generate
emissions to air, water and land. We are subject to a
wide range of environmental laws and regulations, as well
as the requirements of our customers and expectations
of our broader stakeholders. Costs to meet compliance
requirements, and increasing costs from the effects of
emissions could have an adverse impact on our
profitability.
– The availability of water in water scarce and stressed
areas could pose a risk to continuing to operate our
production facilities to their full potential.
– As we purchase significant amounts of wood and fibre
on the market and manage plantation forestry
landholdings in South Africa, a decline in ecosystem
functions and loss of biodiversity could impact the natural
resources that we rely on.
– Compliance with all applicable environmental requirements where we
operate and with our own policies and procedures, at or above local
policy requirements, supported by externally accredited environmental
management systems.
– A clean production philosophy to address the impact from emissions,
discharge and waste.
– Conducting water stewardship assessments to address risks related to
water scarcity, and promotion of equitable use of water resources
among local stakeholders wherever we operate.
– Specialist internal networks share best practices and comprehensively
report and investigate environmental incidents to avoid reoccurrence.
– Monitoring and reporting of our environmental performance indicators
against our targets, with our Scope 1 and 2 GHG emissions
independently assured to a reasonable assurance level and Scope 3
receiving limited assurance.
– Biodiversity assessments at our manufacturing and forestry operations
to evaluate our impact on biodiversity and ecosystems, and action
plans to manage impacts.
Employee and contractor health and safety
Description
Key mitigation
Risk owner
Group Head of
Safety & Health
Risk trend
Link to
strategy
– Accidents, incidents and exposure to occupational health
hazards, such as noise and stress, may cause injury or
harm to employees and contractors, property damage,
lost production time, and/or harm to our reputation.
– Risks include fatalities, serious injuries, occupational
diseases, substance abuse and instances of violent crime
in some jurisdictions.
– Continuous improvement of safety standards through monitoring
incidents, major close calls and recordable case rates to transfer
learnings across our operations with the goal of sending everybody
home safely every day.
– Embedded safety management systems including, among others,
risk assessments, safety procedures and controls.
– Continuous focus on improving our 24-hour safety mindset
and developing the desired safety culture as well as focusing
on the Social Psychology of Risk.
– An Employee Assistance Programme and wellness initiatives are
offered across the countries in which the Group operates in order
to help employees with general health and mental health concerns.
– Continuously engineer out the most significant risks in our operations,
supported by robust controls and procedures for operating those
assets and conducting related tasks.
– Our Permit to Work methodology across the Group supports us
to achieve our safety targets.
– Extensive training to ensure that performance standards and practice
notes are communicated and understood and our incentives are
impacted by the non-achievement of safety milestones (lag indicators)
as well as achievement of lead indicators.
– We apply externally accredited safety management systems, with
continuous benchmarking against global safety standards, and
conduct regular audits of our operations to ensure our facilities
remain fit for purpose.
Mondi Group
Integrated report and financial statements 2024
68
Principal risks continued
Operational risks continued
Attraction and retention of key skills and talent
Description
Key mitigation
Risk owner
Chief People Officer
Risk trend
Link to
strategy
– Operations in remote locations or highly competitive
markets make attracting and retaining skilled employees
challenging.
– Two-thirds of our employees are production workers
largely engaged in shift work, making it challenging to
attract individuals to work these schedules. Losing skills
or failing to attract new talent to our business could
impact our ability to drive performance and deliver on
our strategic objectives.
– An ageing workforce presents challenges in the future.
Socio-political issues in South Africa result in skilled
workers looking to emigrate.
– Clear employee KPIs with credible, measurable targets, each
accompanied by an action plan to drive performance and embed in
daily management.
– Strategically focus our employer branding initiatives on key markets,
aligning them with the specific skill sets and talent pools most critical
to our business priorities.
– Transparent and efficient recruitment practices.
– Competitive compensation levels maintained through benchmarking.
– Measures to monitor and manage succession planning for critical roles,
enhance retention and accelerate development of key talent.
– Monitor relevant employee KPIs, such as staff turnover, number of
training sessions, internal placements, diversity and inclusion,
engagement data, and succession plans.
– Transparent performance reviews, including engagement sessions to
encourage open dialogue and identify issues and opportunities.
– Regular employee surveys and targeted pulse surveys provide
employee engagement and feedback.
– Through an anonymous whistleblowing and grievance platform,
SpeakOut, employees and external stakeholders can raise concerns
about conduct that may be contrary to our values.
Cyber security risk
Description
Key mitigation
Risk owner
Chief Information
Officer
Risk trend
Link to
strategy
– The Group could experience targeted and untargeted
cyber-attacks as cybercrime continues to increase and
attempts are increasingly sophisticated.
– More employees are working remotely, placing pressure
and further reliance on our IT systems, increasing data
processing requirements and providing new channels
for cyber-attacks.
– The consequences of successful attacks include
compromised data, financial fraud and system
shutdowns.
– A comprehensive IT Security Policy approved by the Board.
– Extensive training and awareness programmes are provided for all
our users.
– IT infrastructure is regularly tested and our systems are based on well-
proven products.
– Regular threat assessments utilising external providers.
– The Group’s core IT services are ISO 27001 certified.
– Established incident response and business contingency plans
are in place.
Compliance risk
Reputational risk
Description
Key mitigation
Risk owner
Executive
Committee
(oversight CEO)
Risk trend
Link to
strategy
– Non-compliance with the legal and governance
requirements and globally established responsible
business conduct in any of the jurisdictions in which we
operate and within our supply chain could expose us to
significant risk if not actively managed.
– Failure to successfully manage relationships with our
stakeholders could disrupt our operations and adversely
impact the Group’s reputation.
– Fines imposed by authorities for non-compliance are
severe and, in some cases, legislation can result in
criminal sanction for entities and individuals found guilty.
– Areas of weaker governance present the challenge of
addressing potential human rights issues in our
operations and supply chain; human rights legislation
further highlights the need to identify and address
potential risks of child labour, forced or bonded labour,
modern slavery, human trafficking and other human rights
risks in our supply chain.
– A comprehensive training and compliance programme, supported
by self-certification and reporting, with personal sanction for failure
to comply with Group policies.
– Engagement with local stakeholders through formal and
informal processes.
– Screening of our suppliers for sustainability risk in accordance with our
Code of Conduct for Suppliers to better align with our risk criteria.
– Ongoing assessment of our governance of human rights issues
and any potential risks in our operations and supply chain.
– Compliance committees are established at a Group level to
monitor the risk relating to trade controls, data protection, competition
compliance and business integrity – chaired by the Group CFO with
representatives from across the business. Our legal and governance
compliance is supported by a centralised legal compliance team and is
subject to regular internal audit review.
– We have an anonymous whistleblowing and grievance
platform (SpeakOut), enabling employees, customers, suppliers,
communities and other stakeholders to raise concerns about
conduct that may be contrary to our values.
Mondi Group
Integrated report and financial statements 2024
69
As part of the approval of this
Integrated report, the Board has
assessed the Group’s prospects
and viability.
Factors in assessing long-term
prospects
The Group’s business model and strategy
are described in detail on pages 8-13
and 14 respectively. Our strategy is to
deliver value accretive growth sustainably.
We do this by driving performance along
the value chain, investing in quality assets,
empowering our people and partnering
with customers. Our performance against
our strategic objectives is discussed in
more detail on pages 15-23.
Mondi’s geographical footprint, with around
100 production sites; employees working in
more than 30 countries, and broad product
range help mitigate potential risks of
customer or supplier liquidity issues. With
our scale, quality asset base, integrated
operations and excellent customer
proposition, we create value for our
stakeholders in line with the Mondi Way.
The Group’s financial position, cash flows,
liquidity position and borrowing facilities
are described in the financial statements.
At 31 December 2024, the Group had
€750 million of undrawn, committed debt
facilities. The weighted average maturity of
the Group’s committed debt facilities was
3.9 years. The principal loan arrangements
are disclosed in note 21 of the financial
statements. In addition, the Group had
€278 million of cash and cash
equivalents available.
Assessment of viability
The Board believes that the three years
to December 2027 is an appropriate period
over which a reasonable expectation of
the Group’s longer-term viability can be
evaluated. In coming to this view, the Board
has considered the inherent volatility in selling
prices, input costs and exchange rates, the
time taken for new capacity expansion
investments to be introduced into the
market, typical new product development
cycles, and the Group’s capital structure.
Given our principal risks, the Board believes
that the ability to assess the Group’s longer-
term viability beyond this period becomes
increasingly reduced. For these reasons,
three years also represents the period of the
Group’s formal planning horizon.
The Board has considered the Group’s
current financial position, strategy and
plans for the next three years.
The Group’s principal risks identified on
pages 60-69 have been assessed for their
potential impact on the Group’s viability
over the next three years as part of the
risk assessment. Our structurally growing
packaging markets are described in
more detail on page 7.
The Group’s three-year 2025-2027 plan
(budget period) has been tested for severe
but plausible downside scenarios. These
are summarised in the table at the bottom
of this page.
While linked to the Group’s principal risks,
the scenarios detailed in the table below
are hypothetical and designed to test the
ability of the Group to withstand such
severe outcomes. In an event that a
scenario partly or fully takes place, the
Group has various options available to
maintain liquidity and continue operations.
The scenarios modelled are linked to those
principal risks which are most likely to
occur and have the most significant impact.
The sales volume compression scenario
(Scenario 1) was calculated with assumed
reductions of up to 7% depending on
the relevant product compared with
the assumptions in each year of the
budget period.
The margin compression scenario (Scenario 2)
was calculated with assumed reductions
of up to 7% depending on the relevant
product compared with the assumptions
in each year of the budget period.
Both margin and volume sensitivities have
been modelled considering current and
potential future market developments.
Wood, gas and electricity prices in our major
European operations have been tested in
Scenario 3, based on internal management
assumptions. The impact of the other
input costs, which are usually passed on
through higher sales prices in the converting
operations, have been excluded from the
downside sensitivities, similar to prior years.
Furthermore, in Scenario 4 the currency risk
was tested as the wide geographic spread
exposes the Group to the potential impact
of exchange rate fluctuations. We have
evaluated the impact of weaker US dollar
and pound sterling exchange rates, and
stronger other emerging market currencies
including the South African rand, relative
to the euro. These currencies were chosen
as the Group has a significant exposure
in them. A 10% weakening and a 10%
strengthening of the respective currencies
against the euro was applied, based on
historical exchange rate developments.
While the assumptions we have applied in
all four scenarios are possible, they do not
represent our view of the likely outcome.
Testing was performed for Scenarios 1
and 2 individually and in combination for
a duration of three years, as these two
scenarios are the ones we consider are
most likely to happen in combination.
The likelihood of other scenarios happening
in combination is considered remote.
We have assessed the impact of these
assumptions on the Group’s key financial
metrics over the assessment period,
including profitability, net debt, and net
debt to underlying EBITDA.
Based on the results of these scenarios
individually and in combination for Scenarios 1
and 2, the Board is satisfied that the
Group would be able to respond to such
circumstances through various means which
could include a reduction and deferral of
capital expenditure and further rationalisation
and/or restructuring of operations, to
ensure that the Group continues to meet
its ongoing obligations.
Scenario testing
Scenario modelled
Link to principal risks
Scenario 1
Volume compression
Sales volume reduction across pulp and paper mills and
converting operations
Industry productive capacity
Product substitution
Technical integrity of our operating assets
Scenario 2
Margin compression
Sales prices reduction in pulp and paper mills and gross margin
reduction in converting operations
Fluctuations and variability in selling prices
or gross margins
Scenario 3
Input costs inflation
Increase in materials, energy, consumables used and variable
selling expenses
Costs and availability of raw materials
Energy security and related input costs
Scenario 4
Currency risk
Volatility in foreign exchange rates
Currency risk
Mondi Group
Integrated report and financial statements 2024
70
Viability statement
The Group meets its funding requirements
from a variety of sources, as more fully
described in the financial statements in note
21. The Board is satisfied that the Group will
have sufficient liquidity to meet its needs over
the Group’s formal planning horizon. Testing
compliance with financial covenants is not
needed as none of the Group’s loan
agreements have a financial covenant.
The Group announced on 9 October 2024
that it entered into an agreement to acquire
the Western Europe Packaging Assets of
Schumacher Packaging for an enterprise
value of €634 million. The required financing
for the transaction has been considered in all
scenarios tested.
For the purposes of assessing viability over a
longer period, the assessment was carried out
against the Group’s current committed debt
facilities. The Board notes that the Group has
a track record of successfully accessing both
banking and debt capital markets for funding,
and the Group’s management is expecting to
be able to refinance the facilities maturing
during the viability assessment period.
The Board believes that the strong and stable
financial position of the Group, supported by
a continued strong investment grade credit
rating from both Moody’s (Baa1, outlook
stable) and Standard & Poor’s (A-, outlook
stable), ensures the Group has access to
funding through the business cycle. For this
reason, the assessment was carried out
against the Group’s committed debt facilities
on the assumption that the Group’s €600
million Eurobond maturing in April 2026 will
be successfully refinanced.
Additionally, the Board has conducted a
reverse stress test on the budget period
to assess the extent of downturn required
to result in no liquidity headroom. The analysis
determined that a 39% decline in the planned
underlying EBITDA, significantly exceeding
the outcomes of the four scenarios tested,
including the combined impact of Scenario 1
and 2, would need to persist through the
budget period. Such a downturn is considered
highly unlikely. This reverse stress test also
does not incorporate mitigation 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.
Taking into account the Group’s strategy,
principal risks and the results of the downside
scenario assessments, and on the assumption
that over the extended viability assessment
the Group will continue to be able to
successfully refinance its debt as it has
done historically, the directors have a
reasonable expectation that the Group will be
able to continue in operation and meet its
liabilities as they fall due over the three-year
period of the viability assessment.
Going concern
The directors have reviewed the Group’s
budget and considered the assumptions
contained in the budget, including
consideration of the principal risks which
may impact the Group’s performance in
the 18 months following the balance sheet
date and considerations of the period
immediately thereafter.
The Group has a strong balance sheet.
At 31 December 2024, the Group had
a liquidity position of €1,028 million,
comprising €750 million of undrawn
committed debt facilities and cash and
cash equivalents of €278 million available.
As the Group’s debt facilities and loan
agreements contain no financial covenants,
in performing its going concern assessment
the directors have focused on liquidity.
The Group announced on 9 October 2024
that it entered into an agreement to
acquire the Western Europe Packaging
Assets of Schumacher Packaging for
an enterprise value of €634 million. The
required financing for the transaction has
been considered in all scenarios tested. In
order to provide increased liquidity
headroom for the Group following the
agreed Schumacher Packaging acquisition,
the Group utilised the accordion increase in
its €750 million RCF, to increase the
available facility by €250 million to €1 billion,
effective 2 January 2025. All of the banks
agreed to the increase.
The Group has a track record of successfully
accessing both bank and debt capital
markets for funding, and the Group’s
management is expecting to be able
to refinance any facility maturing during
the going concern period. The Board believes
that the strong and stable financial position
of the Group, supported by a continued
strong investment grade credit rating
from both Moody’s (Baa1, outlook stable) and
Standard & Poor’s (A-, outlook stable),
ensures the Group has access to funding
through the going concern period.
The current and possible future impact from
the macroeconomic environment on the
Group’s activities and performance has been
considered by the Board in preparing its going
concern assessment. The base case forecasts
for the Group, being those arising over the 18-
month going concern assessment period as
reflected in the Group’s 2025-2027 plan, were
sensitised to reflect a severe but plausible
downside scenario on Group performance.
The scenario testing assumed severe but
plausible volume and margin reductions
happening in combination (consistent with the
sensitivities described in Scenarios 1 and 2 in
the viability statement) and was carried out
against Mondi’s current committed debt
facilities, and on the assumption that the
Group’s €600 million Eurobond maturing in
April 2026 will be successfully refinanced.
Given the Group’s track record of successfully
accessing both the bank and debt capital
markets for funding, the Board is confident
that the Group will be able to refinance the
bond. This testing does not incorporate any
mitigation actions such as reductions and
deferrals of capital and operational
expenditure or cash preservation responses,
which the Group would implement in the
event of severe and extended revenue
decline.
In the severe but plausible downside scenario,
the Group has sufficient liquidity headroom
throughout the entire period covered by the
going concern assessment.
A further scenario has been modelled
which, while considered highly unlikely,
assumes that no refinancing takes place
during the going concern period. In this
scenario the Group would implement
mitigating actions including reductions
and deferrals of capital and operational
expenditure and other cash preservation
responses to maintain sufficient liquidity.
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. The test was conducted
based on the Group’s current committed debt
facilities, with the assumption that any facility
maturing during the assessment period will be
refinanced. A decline of 45% to the planned
underlying EBITDA in the period until 30 June
2026, well in excess of that contemplated in
the severe but plausible downside scenario,
would need to persist throughout the
observed period to result in no liquidity
headroom, which is considered very unlikely.
This reverse stress test also does not
incorporate mitigating actions such as
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 Integrated report and
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 going
concern period. For this reason, the Group
continues to adopt the going concern basis
in preparing the Integrated report and
financial statements 2024.
Mondi Group
Integrated report and financial statements 2024
71
Philip Yea
Chair
Governance
Chair’s introduction
72
Board of directors
75
Executive Committee and Company Secretary
78
Corporate governance report
80
Nominations Committee
94
Audit Committee
99
Sustainable Development Committee
108
Remuneration report
111
Other statutory information
136
Dear fellow shareholder
On behalf of the Board, I am pleased to
introduce our Governance report for 2024.
This report provides you with a more
detailed look at our approach to
governance, how it supports our purpose
and the creation of sustainable, long-term
value for our stakeholders, and the Board's
key focus areas during the year.
Good governance is critical to ensuring
continued trust in the Board and its
decision-making. Having a governance
framework that supports the Board in
leading with integrity and reflects our
culture and values is fundamental,
particularly in times of uncertainty.
I am confident that our robust governance
processes and practices have continued to
function effectively during the year, and
that they will continue to evolve to reflect
the expectations of our stakeholders,
enabling the Board to operate to the
highest standards.
Board composition
At the end of September 2024, Dominique
Reiniche retired as an independent
non-executive director after nine years in
office. Dominique played an important role
during this time, particularly as Chair of the
Sustainable Development Committee,
a role she held for more than six years,
and more recently as Senior Independent
Director. I would like to thank Dominique
for her commitment and contribution
to Mondi and wish her all the best for
the future.
In preparation for Dominique's retirement,
a recruitment process was undertaken,
facilitated by an external search agency.
I am pleased to confirm that, as a result,
Sucheta Govil joined the Board as an
independent non-executive director in
October 2024. Sucheta brings extensive
experience to the Board, and to the
committees to which she has been
appointed. I look forward to working
with her over the coming years.
Alongside this, Sue Clark was appointed as
Senior Independent Director and Chair of
the Remuneration Committee, while Dame
Angela Strank was appointed as Chair of
the Sustainable Development Committee,
bringing fresh perspectives to each of
these key roles.
Mondi Group
Integrated report and financial statements 2024
72
Chair’s introduction
How has our governance framework
supported our progress in 2024?
Good governance is critical to ensuring
continued trust in the Board and its
decision-making, and having a governance
framework that supports the Board in
leading with integrity and reflects our
culture and values is fundamental.
Philip Yea
Chair
How we comply with the
UK Corporate Governance Code
During the year ended 31 December
2024, Mondi aimed to comply with the
principles and provisions of the
July 2018 edition of the UK Corporate
Governance Code (the Code) issued by
the Financial Reporting Council
(available at www.frc.org.uk).
It is the view of the Board that
Mondi has applied the principles,
and complied with the provisions, of the
Code throughout the year, with one
exception. The 2024 grant of Long-
Term Incentive Plan awards was not
wholly compliant with provision 36 of
the Code as the total vesting and
holding period for the executive
directors' awards was slightly shorter
than the standard five-year period. As
explained on page 130, this was the
result of the grant being unavoidably
delayed from March to May 2024 owing
to Mondi being in a closed period due
to the potential offer for DS Smith.
Given the exceptional circumstances of
the delay, the Remuneration Committee
determined that the awards should vest
at the usual date in March 2027 to
provide consistency for participants.
Awards remained subject to the usual
three-year performance period.
The Governance report is structured
according to the sections of the 2018
edition of the Code in order to clearly
demonstrate how we have applied
the principles.
The Board notes that the 2024 edition
of the Code came into effect on 1
January 2025. Consideration is being
given to any changes required to our
practices as a result of the revisions to
the Code and Mondi will report against
the 2024 edition of the Code in its
Integrated report and financial
statements for the year ending
31 December 2025.
Our people
The safety and wellbeing of our
workforce and promoting a culture that
reflects our values and attracts people to
join and stay with the Group are
priorities for the Board.
Our approach to safety, how well it is
embedded and any further measures we
can take to keep our people safe are
always top of the agenda. The Board
promotes the extensive work that is
undertaken across the Group in this
respect. Despite these efforts, we were
deeply saddened by the fatality at our
Merebank mill (South Africa) during the
year. We also experienced three life-
altering injuries in our operations. Our
thoughts have been with all those affected.
Such incidents have a devastating
impact and our first priority as an
organisation is to ensure that the
necessary support is provided to those
involved. The actions taken in this regard
form a key part of the reports received
by the Board when an incident occurs.
Alongside this, there is a strong focus on
understanding the circumstances of any
incident, establishing root causes and
identifying actions that can be taken
to minimise the risk of a reoccurrence.
The knowledge acquired from these
investigations is shared across the
Group, with the agreed actions
also implemented at any other sites
as appropriate.
The Board remained focused during the
year on the approach to safety and how
as an organisation we can drive further
improvements. The continued evolution
of Mondi's approach to encompass the
Social Psychology of Risk remained
central to these discussions, focusing on
the psychological and cultural elements
that can contribute to unsafe behaviour.
We were encouraged to hear that
significant time has been dedicated to
training not only our safety and health
professionals but also leaders across
the organisation. Sue Clark attended
one of these training sessions on behalf
of the Board and was extremely positive
in her feedback on the commitment and
buy-in of local management, which is
critical if we are to further improve our
safety performance. More information
on our approach to safety can be found
on page 40.
More broadly, we were pleased to have
further opportunities during the year
to engage with our people, both on a
formal and informal basis. The insights
we acquire from such engagements
inform the Board’s discussions in
relation to a range of matters, from our
culture and how well it is embedded,
to our decisions on capital allocation.
The Board benefits greatly from being
exposed to the views of our colleagues
across the Group. More information on
the engagement undertaken during
2024 can be found on page 82-84.
Our wider stakeholders
As a Board, we also value the views
of our wider stakeholders, which are
critical to our decision-making.
We spent time throughout the year
developing our understanding of
the views and interests of our key
stakeholders, with insights gained
directly or through our delegation
framework, and in a variety of formats.
Much of this insight comes from our
colleagues on the ground who have
regular contact with the stakeholders
concerned and a deep understanding
of what they expect from Mondi.
Mondi Group
Integrated report and financial statements 2024
73
SpeakOut
The Group has an
anonymous whistleblowing
and grievance platform
called ‘SpeakOut’,
operated by an
independent third party.
SpeakOut, monitored by the
Internal Audit function and
overseen by the Board and Audit
Committee, is a simple, accessible
and confidential platform through
which our employees, customers,
suppliers and other stakeholders
can raise concerns about any
unethical practices or conduct
contrary to Mondi’s values.
The service is fundamental to
ensuring the confidence of our
employees and other stakeholders
in our culture and values.
Any type of concern can be raised
via SpeakOut. The Board and
Audit Committee receive regular
reports of SpeakOut messages
received and ensure that
appropriate investigation into
each message has been undertaken
and responses given, with actions
taken where any allegation proves
to have some foundation.
The reports allow the Board
to identify any particular trends
and common issues, with messages
classified into categories including
HR-related concerns, business
integrity issues and environmental
and safety topics, and to consider
whether any changes to Mondi's
risk management processes are
required as a result.
The effectiveness of the SpeakOut
platform is kept under regular
review.
More information about Mondi's
approach to anti-bribery and
corruption in particular can be
found on page 49.
This knowledge provides context for all
of the Board's discussions but it was
particularly relevant this year with regard
to our deliberations as to whether to make
an offer for DS Smith and our decision to
acquire Schumacher Packaging's Western
Europe Packaging Assets. The interests of
a wide range of stakeholders, including our
investors, customers and employees, were
at the forefront in both cases.
We will continue to assess if we have the
right mechanisms in place in this regard
and to ensure that we continue to have full
visibility of the likely impact of our decisions
on our key stakeholders. More information
on our key stakeholders and the
engagement undertaken during the year
can be found on pages 50-51 and 82-85.
Long-term sustainability
Operating in a sustainable manner, with
a focus on managing the impact our
organisation has on the environment in
which we do business, remains central to
Mondi's strategy, and our ability to deliver
the strategy in such a way is regularly
tested and challenged.
The primary role of the Sustainable
Development Committee is to oversee
and monitor, on behalf of the Board, our
approach and performance across a broad
range of sustainability matters, including
safety, environmental performance, climate
change-related risks and opportunities,
people-related matters and relationships
with many of our key stakeholders.
The Sustainable Development Committee's
discussions in this respect provide context
for many of the Board's decisions, as well
as the Board's ongoing monitoring and
review of Mondi's strategy and principal
risks, and ensure that the long-term
impacts of the decisions we make, and any
potential trade-offs, are fully considered.
More information on the work of the
Sustainable Development Committee
and its key focus areas during 2024 can
be found on pages 108-110.
Looking forward
While we expect the current geopolitical
and macroeconomic uncertainties to
persist in 2025, our focus remains on
achieving long-term sustainable value for
our stakeholders. I am confident that our
strong culture and values and robust
governance framework ensure that we are
well placed as an organisation not only to
navigate the risks and challenges these
uncertainties present, but also to take
advantage of opportunities as they arise.
I would like to thank our colleagues across
the organisation and all of our stakeholders
for their commitment to Mondi during the
year, and I look forward to continued
engagement in 2025.
Philip Yea
Chair
Mondi Group
Integrated report and financial statements 2024
74
Chair’s introduction continued
Composition of the Board
Diversity of the Board
Independent non-executive
director tenure
Nationalities represented on the Board
The directors holding office at the date of this report, together with their biographical details
and an explanation of the skills and experience they bring to the Board, are set out below.
See biographies
Page 76
Mondi Group
Integrated report and financial statements 2024
75
Board of directors
0-3 years
3-6 years
6-9 years
South African
British
German
Norwegian
Chair
Executive directors
Independent non-executive directors
10%
20%
70%
Male
Female
60%
40%
2
6
1
1
3
3
1
Philip Yea
Chair
Appointed to the Board
April 2020 and as Chair in May 2020
Independent
Yes (on appointment)
Committee memberships
Nominations (Chair), Remuneration
Qualifications
Graduated with an MA in Modern
Languages from Oxford University,
Fellow of the Chartered Institute
of Management Accountants (UK)
Skills and experience
Philip has extensive listed company
experience, both as an executive
and non-executive director, across
a range of sectors. His broad industry
background and knowledge of operating
within large, international corporates,
as well as his significant leadership
experience, bring valuable insight to the
Board and are relevant to the future
growth and development of Mondi.
Philip’s experience and knowledge
of UK listed companies underpin
the Board’s commitment to delivering
best practice corporate governance.
Philip started his career as a graduate
trainee at Perkins Engines before
holding a range of finance roles at
companies including Mars Ltd and
Guinness plc, becoming Group Finance
Director of Diageo plc on its creation
in 1997. He was a managing director
at Investcorp from 1999 to 2004, leaving
to become CEO of 3i Group plc, a role
he held until 2009.
He has held a number of non-executive
roles, including Chair at Equiniti Group
plc, Greene King plc and bwin.party
digital entertainment plc; Senior
Independent Director at Vodafone
Group plc, Manchester United plc and
Computacenter plc; and non-executive
director at Marshall of Cambridge
(Holdings) Ltd, Aberdeen Standard Asia
Focus plc, Rocket Internet SE and
HBOS plc.
Current external appointments
None.
Andrew King
Group CEO
Appointed to the Board
October 2008 and as Group CEO
in April 2020
Independent
No
Committee memberships
Executive (Chair), Sustainable
Development
Qualifications
Graduated in Commerce from the
University of Cape Town, Chartered
Accountant (South Africa)
Skills and experience
Andrew has more than 22 years’
experience with Mondi in various
strategy, business development and
leadership roles, giving him a detailed
understanding of Mondi’s strategy,
capital allocation priorities and financial
structure and the environment in which
the Group operates. He has played a
key role in defining the Group’s strategic
direction and re-shaping the capital
structure since listing. Andrew’s long
and varied experience with Mondi brings
extensive knowledge of the markets and
conditions in which the Group operates,
providing a key contribution in
developing and executing Mondi’s
strategy to enhance competitiveness
and deliver sustainably into the future.
Andrew completed articles with
Deloitte & Touche in Johannesburg
in 1994. In 1995 he joined Minorco, part
of Anglo American, as a financial analyst,
before assuming responsibility for the
group’s investment management
activities, and transferring to its
corporate finance department in 1998.
He worked on a number of group M&A
activities before being appointed a vice
president of Anglo American Corporate
Finance in 1999.
He was appointed Mondi’s Vice
President of Business Development
in 2002 and Corporate Development
Director in 2004. He served as CFO
of Mondi from June 2005 to May 2006.
He was then appointed as Group
Strategy and Business Development
Director before becoming the CFO
of the Mondi Group in 2008.
Andrew was appointed CEO of the
Mondi Group on 1 April 2020.
Current external appointments
None.
Mike Powell
Group CFO
Appointed to the Board
November 2020
Independent
No
Committee membership
Executive
Qualifications
Graduated in Computer Science &
Accounting from the University of
Manchester, member of the Chartered
Institute of Management Accountants (UK)
Skills and experience
Mike has significant financial and
strategic experience and extensive
experience leading finance teams, having
been chief financial officer and an
executive director of a number of large
international listed companies.
He brings a clear operational focus, strong
leadership experience and knowledge of
operating in large industrial groups across
a variety of geographies. The strategic
financial insight Mike brings drives
Mondi’s strong financial performance
and culture of continuous improvement.
Mike started his career at Pilkington plc,
spending 15 years in a variety of finance
and operational roles. He went on
to become Chief Financial Officer
at Nippon Sheet Glass and then
AZ Electronic Materials plc.
He was subsequently appointed Group
Finance Director at BBA Aviation plc,
before being appointed Group Chief
Financial Officer at Ferguson plc, a
multinational distributor of plumbing and
heating products. Mike also served as a
non-executive director of Low & Bonar
from December 2016 to May 2020.
Mike joined Mondi as Group CFO
in November 2020.
Current external appointments
None.
Sue Clark
Senior Independent Director
Appointed to the Board
April 2021
Independent
Yes
Committee memberships
Audit, Nominations, Remuneration
(Chair)
Qualifications
BSc in Biological Sciences from the
University of Manchester and an MBA
from Heriot-Watt University
Skills and experience
Sue has a wealth of commercial and
strategic experience gained across
different industries and geographies,
having worked with a broad range of
stakeholders in both an executive and
non-executive capacity. She understands
the challenges of changing customer
and consumer preferences and the
need to build and protect the Group's
reputation with all its stakeholders. Sue's
experience enables her to bring
knowledge and insight to her new roles
as Senior Independent Director and
Chair of the Remuneration Committee.
Starting her career with the Central
Electricity Generating Board, Sue held
communication roles at National Power
plc, moving to Scottish Power plc,
where she became Director of
Corporate Affairs. In 2000, Sue joined
Railtrack Group plc, before moving to
SABMiller plc in 2003, where she was a
member of the executive management
team, Director of Corporate Affairs and
then Managing Director, Europe, until
the business was acquired in 2016.
Sue was a non-executive director of
Bakkavor Group plc until 2020, Tulchan
Communications LLP until 2023 and
Britvic plc until March 2024, and a
member of the Supervisory Board of
AkzoNobel NV until April 2021.
Sue was the non-executive director
responsible for engaging with employees
until the end of September 2024, stepping
down to become Senior Independent
Director and Remuneration Committee
Chair.
Current external appointments
Senior Independent Director and
remuneration committee chair at
Imperial Brands plc and easyJet plc.
Svein Richard Brandtzaeg
Non-executive director
Appointed to the Board
April 2021
Independent
Yes
Committee memberships
Audit, Nominations, Sustainable
Development
Qualifications
PhD in Chemical Engineering from
the Norwegian University of Science
and Technology
Skills and experience
Svein Richard has a strong commercial
and strategic background as a former
chief executive of Norsk Hydro ASA
and more recently as a non-executive
director on a number of boards.
His experience of leading a global
industrial group brings valuable insight
to the Board’s strategic planning and
driving growth in key geographies.
His leadership experience in developing
business synergies and harnessing
sustainable opportunities is a valuable
addition to Board discussions.
He started his career at Ardal og
Sunndal Verk AS, the Norwegian
state-owned aluminium business,
before it merged with Norsk Hydro
ASA. Svein Richard went on to hold
a variety of management roles at
Norsk Hydro ASA, leading a number of
its businesses, before being appointed
chief executive in 2009, a position he
held until retiring in 2019. Svein Richard
was also Chair of Veidekke ASA from
2019 until May 2022, Vice Chair of
Den Norske Bank ASA until April 2023,
Vice Chair of Swiss Steel Holding AG
until October 2023 and a non-executive
director of Eramet Norway until
December 2024.
Current external appointments
Chair of dormakaba Holding AG and a
non-executive director of Rotork plc.
Mondi Group
Integrated report and financial statements 2024
76
Board of directors continued
Sucheta Govil
Non-executive director
Appointed to the Board
October 2024
Independent
Yes
Committee memberships
Nominations, Remuneration
Qualifications
Degree in Economics with
Mathematics from Delhi University
and an MBA from the Indian Institute
of Management, Calcutta
Skills and experience
Sucheta has extensive commercial and
operational leadership experience having
held senior positions across a range of
sectors. Her experience operating in
multinational industrial businesses
including in her current executive role
brings knowledge and insight to the
Board.
Sucheta started her career with
GlaxoSmithKline plc, spending 17 years
there in various management roles,
before moving to PepsiCo, Inc. in 2003.
In 2011, she was appointed Global Head
of Marketing, Decorative Paints at
AkzoNobel NV, a role she held until
2015. In 2015, Sucheta became Chief
Marketing Officer of DSM NV, before
moving in 2019 to her current role of
Chief Commercial Officer and member
of the board at Covestro AG, one
of the world's leading manufacturers
of high-quality polymer materials and
their components.
Sucheta was previously a non-executive
director of Eurocell plc between 2018
and 2022.
Current external appointments
Chief Commercial Officer and member
of the board at Covestro AG.
Anke Groth
Non-executive director
Appointed to the Board
April 2023
Independent
Yes
Committee memberships
Audit, Nominations
Qualifications
Degree in Business Economics from
the University of Dortmund
Skills and experience
Anke has a strong financial and
commercial background and extensive
leadership experience. Her experience
operating in large international listed
companies covering energy and
industrial sectors, and her strategic
and operationally focused knowledge
bring valuable insight and perspective
to the Board.
Anke began her career in the energy
industry, initially in business development
and mergers and acquisitions in two
regional energy companies, before
working for E.ON SE from 2001 to 2018.
Her roles at E.ON SE included Vice
President of Mergers & Acquisitions;
Chief Financial Officer, Spain; Senior
Vice President Investor Relations;
and, from 2016 to 2018, Chief Financial
Officer of E.ON UK plc. In 2018 Anke
joined KION Group AG, active in the
capital goods sector and publicly listed
on the German stock exchange, as
Group Chief Financial Officer & HR
Director, a role she held until stepping
down in 2022.
Anke was appointed as the non-
executive director responsible for
engaging with employees on behalf
of the Board in October 2024.
Current external appointments
Member of the Supervisory Board at
E.ON SE and the Administrative Board
at DKV Mobility Group SE.
Saki Macozoma
Non-executive director
Appointed to the Board
May 2022
Independent
Yes
Committee memberships
Audit, Nominations
Qualifications
BA in Economics and Politics from
the University of South Africa
Skills and experience
Saki has a strong track record as a chair
and non-executive director across
a number of listed and private entities
and brings to the Board significant
experience from a range of industries.
He also brings extensive insight into
the South African business environment,
including into key regulatory and
sustainability considerations for
Mondi’s operations in South Africa.
From 1993 to 1994, Saki worked for
South African Breweries as Business
Development Manager, before being
elected a member of South African
Parliament in 1994, a position he held
until 1996. Saki went on to be appointed
a managing director at Transnet Limited,
the company responsible at that time
for South Africa’s rail network and
harbours and South African Airways.
In 2001, he joined New African
Investments Limited, a publicly listed
investment company, as Chief Executive
Officer, a role he held until 2004. He
was also previously chair of MTN Group
Limited and a non-executive director
of Standard Bank Group Limited,
Liberty Holdings and Murray and
Roberts Holdings Limited.
Current external appointments
Chair of Vodacom Group Limited, Safika
Holdings (Pty) Ltd, Tshipi é Ntle
Manganese Mining (Pty) Ltd and
Ntsimbintle Mining (Pty) Ltd.
Dame Angela Strank
Non-executive director
Appointed to the Board
April 2021
Independent
Yes
Committee memberships
Nominations, Remuneration,
Sustainable Development (Chair)
Qualifications
BSc and PhD in Geology from the
University of Manchester and a
Chartered Engineer
Skills and experience
Angela has extensive experience of
operating in large, international
companies in both executive and non-
executive roles, with expertise including
operations, technology and sustainability.
Her valuable knowledge of combining
technology, sustainability and low-
carbon energy brings key insight into
innovation for circular driven solutions
and business growth, and her experience
of international executive leadership
in the UK listed environment enables
her to bring guidance and challenge
to the Board.
Angela started her career with the
Institute of Geological Sciences before
joining BP plc in 1982, where she held
various international senior leadership
and strategic technology/engineering-
focused roles, including Chief Scientist
and Head of Downstream Technology,
and was a member of the group
executive committee from 2018 until
her retirement in 2020. Angela was
honoured with a Damehood (DBE)
in 2017, and is a Fellow of the
Royal Society, the Royal Academy of
Engineers and the Institute of Chemical
Engineers, as well as an honorary Fellow
of the UK Energy Institute.
Angela was also a non-executive
director of Severn Trent plc until
March 2022. Angela was Chair of Mondi
plc's Remuneration Committee from
May 2022 until the end of September
2024 when she stepped down from the
role to become Chair of the Sustainable
Development Committee.
Current external appointments
Non-executive director of SSE plc and
Rolls-Royce Holdings plc.
Stephen Young
Non-executive director
Appointed to the Board
May 2018
Independent
Yes
Committee memberships
Audit (Chair), Nominations,
Sustainable Development
Qualifications
Graduated in Mathematics from
Southampton University, member
of the Chartered Institute of
Management Accountants (UK)
Skills and experience
Stephen brings a strong financial
and general management background
to the Board with experience gained
internationally across a variety of sectors,
including industrial and engineering.
Stephen’s experience brings crucial
insight to maintaining and developing
Mondi’s robust risk management
system and allows him to act as
an experienced sounding board
for executive management.
He spent his early career in commercial
accounting and finance roles at
companies including Ford Motor
Company, Mars, Inc. and Grand
Metropolitan plc (now Diageo plc).
He was Group Finance Director of
the Automobile Association until its
acquisition by Centrica in 2000 before
becoming Group Finance Director
at Thistle Hotels plc.
In 2004 Stephen was appointed Group
Finance Director at Meggitt plc, an
international engineering business
specialising in aerospace equipment.
He held this role for nine years, before
being appointed CEO in 2013. Stephen
stepped down from the board of
Meggitt plc on 31 December 2017.
He was also a non-executive director
and audit committee chair of Derwent
London plc from 2010 until May 2019
and of The Weir Group plc from
January 2018 until July 2024.
Current external appointments
None.
Mondi Group
Integrated report and financial statements 2024
77
Diversity of the
Executive Committee
Andrew King biography
Page 76
Mike Powell biography
Page 76
Mondi Group
Integrated report and financial statements 2024
78
Executive Committee and Company Secretary
Male
Female
South African
British
Austrian
German
Swiss
2
1
2
1
1
71%
29%
Nationalities of Executive
Committee members
Marita Erler
Chief People Officer
Appointed to the Executive
Committee
April 2024
Qualifications
Graduated in Business Administration
from the University of Economics and
Business in Vienna
Skills and experience
Marita has extensive experience in
the HR field and a strong strategic
and operational business focus, having
held senior HR roles in a complex
multinational environment for more
than 20 years.
Marita started her career as a
consultant focusing on change
management and structural and
process improvements across a range
of industries. She went on to join
Jenbacher AG in 2002 as Organisation
and Talent Development Leader, before
being appointed HR Integration Leader
when Jenbacher AG was taken over
by General Electric (GE) in 2003.
Since 2003, Marita has held various
senior HR roles at GE, including Global
HR Director for GE Jenbacher, which
subsequently became GE Gas Engines,
and Vice President HR Europe, GE
Energy Management. In 2015, Marita was
appointed Vice President HR, Steam
Power Systems Rotating Equipment
and Product Management, and then
Executive Vice President HR, Steam
Power in 2017, leading a global HR
organisation with teams in Europe, the
Middle East, India, China, Southeast
Asia and the Americas. Marita held this
role until joining Mondi as Chief People
Officer in April 2024.
Current external appointments
None.
Markus Gärtner
CEO, Corrugated Packaging
Appointed to the Executive
Committee
October 2018
Qualifications
Doctorate of Technical Sciences from
ETH Zürich and a Master of Science
in Electrical Engineering from
Stanford University
Skills and experience
Markus has significant industrial and
international business experience.
He started his career at McKinsey &
Company, working on numerous
operational and strategic projects
across a variety of industries.
Markus went on to join Novelis AG,
a leading producer of rolled aluminium
products, where he held various roles
in strategy and sales with growing
responsibility, until he eventually
became the head of one of Novelis’
three businesses as Vice President &
General Manager Specialities.
In this capacity, he was responsible for
a diverse range of applications, including
consumer packaging solutions and
industrial products.
Markus joined Mondi in September 2018
as CEO, Fibre Packaging/Paper and was
appointed to the Executive Committee
in October that year. He subsequently
became CEO, Corrugated Packaging
in October 2019.
Current external appointments
None.
Lars Mallasch
Group Technical & Sustainability
Director
Appointed to the Executive
Committee
September 2020
Qualifications
Graduated in Paper Technology
from the University of Applied Science
in Munich
Skills and experience
Lars has extensive experience in the
pulp and paper industry, having worked
in the industry for over 25 years.
Lars began his career with a paper
making apprenticeship and then
studied Paper Technology in Munich.
He joined Voith, the global technology
company, in 1997 as Commissioning
Engineer for Capital Projects. Lars
subsequently held a variety of
management roles in Voith Paper’s
board and packaging division, gaining
a wide range of experience and
working internationally in a number
of different countries.
After 14 years with Voith, Lars joined
Mondi in 2011 as Group Head of Capital
Expenditure, a role he held for six years.
Alongside this, he held the role of
Technical Director Containerboard
between 2012 and 2014 and Technical
Director Packaging Paper from 2014
until 2018. He also held the role of
Operations Director at Mondi’s Štětí mill
between 2017 and 2019.
In 2019, Lars was appointed as Mondi’s
Corrugated Packaging Technology
and Capex Director and alongside
this, was appointed as Director of
Containerboard Operations at Mondi’s
Syktyvkar and Richards Bay mills in
February 2020.
Lars was appointed to his current role,
and as a member of the Executive
Committee, in September 2020.
Current external appointments
None.
Vivien McMenamin
CEO, Uncoated Fine Paper &
South Africa
Appointed to the Executive
Committee
October 2017
Qualifications
MSc in Economics from the University
of London and Advanced High
Performance Leadership Certificate
from IMD Switzerland
Skills and experience
Viv has more than 20 years’ experience
in the pulp and paper industry, having
held executive responsibility in Mondi
South Africa for marketing and sales,
human resources, corporate affairs and
transformation. Viv’s roles have included
Mondi Group Head of Sustainable
Development and Director Land
and Forestry, giving her significant
sustainability experience and insight. In
October 2017, she was appointed CEO
of Mondi South Africa and in October
2023, she was appointed CEO,
Uncoated Fine Paper.
Viv was instrumental in the
establishment of Mondi Zimele, Mondi’s
small business development
organisation, and crafting Mondi’s
innovative approach to land reform.
Prior to Mondi, Viv worked in
government and the anti-apartheid
movement in South Africa, serving
Nelson Mandela as a member of the
President’s Task Force on Local
Economic Development and as a
member of President Thabo Mbeki’s
Economic Advisory Panel.
Viv previously served on the boards
of SiyaQhubeka Forests, the
South African Association for Marine
Biological Research (SAAMBR)
and Durban Girls College.
Current external appointments
Non-executive director of KAP
Industrial Holdings Limited and of
Business Leadership South Africa.
Thomas Ott
CEO, Flexible Packaging
Appointed to the Executive
Committee
January 2022
Qualifications
Graduated in Business Administration
from the WU-Vienna business school
Skills and experience
Thomas has extensive experience
in the industrial bags and consumer
packaging industries, having held
a variety of roles with Mondi for
more than 25 years, building Mondi’s
Industrial Bags business and shaping
Mondi’s portfolio in Europe.
Thomas started his career with Deloitte
& Touche in 1992, before joining Mondi
in 1995 as a financial controller.
He went on to hold a number of
leadership roles within Mondi before
becoming COO, Industrial Bags in 2012,
a role he held until 2019. During this time,
he successfully restructured Western
Europe and supported Mondi’s growth
in North America, the Middle East
and Africa.
Thomas briefly moved to Amcor EMEA,
focusing on consumer packaging as a
member of the EMEA executive team
in the role of VP Food, Snacks and
Confectionery, before returning to
Mondi in March 2021 as COO, Kraft
Paper & Paper Bags.
In January 2022, he was appointed CEO
of Mondi’s Flexible Packaging business.
Current external appointments
None.
Jenny Hampshire
Company Secretary
Skills and experience
Jenny, a fellow of the Chartered
Governance Institute, joined Mondi in
May 2007 and has held various roles
in the company secretariat, including five
years as Assistant Company Secretary.
She was appointed Company Secretary
of Mondi plc in December 2016. Prior to
joining Mondi, Jenny worked for The
BOC Group plc in its company
secretariat.
Mondi Group
Integrated report and financial statements 2024
79
Promoting long-term
sustainable success
The role of businesses in society remained
a subject of close public scrutiny in 2024,
with continued focus on how companies
impact the environments in which they
operate. Having an effective board in place,
consisting of directors with the necessary
skills, knowledge and integrity, is key
to understanding and managing these
impacts, and ensuring that Mondi
understands and fulfils its responsibility
to society. The Board provides leadership
to the Group, establishing its strategy with
the aim of achieving long-term sustainable
success for Mondi, our shareholders and
our other stakeholders. The biographies
for Mondi’s Board members, setting out the
competencies they bring to the Board and
the skills and experience that allow them
to contribute to the long-term success of
Mondi, can be found on pages 76-77.
Mondi’s purpose, strategy and culture
define The Mondi Way and how we run
our business. This is illustrated in our
business model, set out on pages 8-13,
which explains how we achieve our
purpose and deliver value for stakeholders
while ensuring sustainability is at the
centre of everything we do. Strong,
ethical leadership, supported by a robust
corporate governance framework, is
crucial to the achievement of our purpose
and strategy in a way that balances the
interests of our key stakeholders while
creating long-term sustainable value.
Supported by its committees, the Board has
responsibility for setting and overseeing the
implementation of the Group’s strategy,
ensuring the implementation of an
appropriate risk management framework
and overseeing sustainable financial
performance. Mondi’s governance
framework and our culture of transparency
ensure that the Board has the information
it needs to assess the risks and
opportunities facing the Group and
the sustainability of the business model.
The structure of the Board and its
committees, the division of responsibilities
and the policies and procedures in place
to facilitate the effective operation of
the Board are detailed on pages 86-87.
How the Board monitors
culture
Mondi’s culture defines our behaviour
and the way we do business, across
the Group, within our operations and in
the boardroom. It is critical to fulfilling
our purpose and achieving long-term
sustainable success. The Mondi Way sets
out the key values that form the foundation
of our culture. It is reinforced by our Code
of Business Ethics which comprises the
principles governing the way we behave
and conduct business – legal compliance,
behaving with honesty and integrity,
respect for human rights, consideration of
stakeholders and sustainability. The Board’s
responsibility for assessing and monitoring
the culture of the Group is embedded in
the Matters Reserved for the Board.
There are a number of ways in which
the Board monitors and assesses culture
and how well it is embedded across the
Group, with the insight acquired used
as context for discussions and decision-
making, including:
Site visits
The directors regularly take opportunities
to visit Mondi’s key assets and operations
so that they can get a more in-depth
understanding of the business. Such
visits offer directors the opportunity
to see for themselves how our safety
and sustainability culture is working in
practice, to talk to local management
and employees and to see how Mondi’s
values are communicated at a local level.
During 2024, in addition to visits to sites
by individual directors, the Board visited
Mondi’s mill in Ružomberok (Slovakia),
more details of which can be found on
page 83.
Board leadership and company purpose
Page 82-85
Mondi Group
Integrated report and financial statements 2024
80
Corporate governance report
Board leadership and company purpose
SpeakOut
Mondi has an anonymous whistleblowing
and grievance platform called ‘SpeakOut’
operated by an independent third party.
Any type of concern can be raised via
SpeakOut, and the Board and Audit
Committee receive regular reports of the
messages received. These reports provide
insight into matters of concern to our
employees and other stakeholders and
draw out behaviour that is contrary to
Mondi’s values.
SpeakOut
Page 74
Board presentations
The Board has in place a rolling programme
of presentations from members of the
Executive Committee and other senior
management. These presentations give the
directors direct exposure to members of
senior management beyond the executive
directors, allowing directors the opportunity
to ask questions and hear their views.
The directors also gain valuable additional
insight helpful to succession planning
discussions. Presenters and members
of local management are also invited
to attend Board dinners, which offer a
more informal setting for discussion.
Division of responsibilities
Page 86-90
Employee Survey results
The Board receives regular reports on the
results of our Employee Surveys, the issues
raised and the follow-up actions being
taken, giving the Board an insight into how
employees feel about the culture of the
Group. Our global Employee Surveys also
help us to measure progress towards our
MAP2030 Created by Empowered People
commitments. The results of the last Group-
wide survey, undertaken in the first half of
2023, were used to calculate our Purposeful
Workplace Index and Inclusiveness Index
scores, which provide the Board with an
objective way to assess employee views
in relation to, among other things, respect,
fairness, trust, recognition, the working
environment and mental wellbeing.
These indices also give us a way of directly
measuring and monitoring aspects of
culture over time, with targets in respect
of the Purposeful Workplace Index and
Inclusiveness Index scores forming part
of our MAP2030 Created by Empowered
People commitments. In response to the
survey findings, a global 'Safe to Speak Up'
pulse survey was conducted in 2024 to draw
further insights from employees on the
factors they felt might deter them from
speaking openly and honestly.
Created by Empowered People
Page 37-40
Safety reports and statistics
The Board reviews safety statistics and key
safety focus areas at every meeting.
Caring for our employees is fundamental
to Mondi’s culture and this includes ensuring
safe behaviour. Reviewing the safety reports
highlights to the Board any concerns
around the approach to safety specifically
or indications of wider leadership or cultural
issues at particular plants or mills. Safety is
also a key focus during site visits, with
behaviour on the ground an indicator as to
how well Mondi's culture is embedded.
Created by Empowered People
Page 37-40
Review of key policies
The Board undertakes an annual review
of Mondi’s key policies. This gives the
Board the opportunity to assess whether
policies remain suitable for Mondi, reflect
the Group's culture and values and support
its long-term sustainable success. While
there were no material changes to Mondi’s
policies as a result of this review during
2024, the opportunity was taken to update
Mondi's Diversity & Inclusion Policy to align
with current practice.
Feedback from non-executive
director responsible for engaging
with employees
During the year, Anke Groth was appointed
as the independent non-executive director
responsible for engaging with employees
on behalf of the Board, replacing Sue Clark.
This engagement with our employees
provides the Board with valuable insight into
how groups of our employees are feeling
about Mondi and any matters of concern to
them, giving the Board helpful information
concerning how well the Group’s culture is
embedded across the organisation and any
issues that might need greater attention.
Information relating to the outcomes of this
engagement during 2024 can be found on
pages 82-83.
Board leadership and company purpose
Page 82-85
Mondi Group
Integrated report and financial statements 2024
81
Stakeholder engagement
Understanding the impact of our business
on our key stakeholders, their long-term
interests, and the environment in which
we operate is central to the Board’s
decision-making. This is reflected in Mondi’s
Code of Business Ethics, recognising the
fact that engagement and collaboration
with our stakeholders is essential if we are
to fulfil our purpose, deliver our strategy
and create long-term, sustainable value in
a manner that reflects our high standards
of business conduct. Understanding what
matters most to all our stakeholders allows
us to make balanced judgements.
Our approach
Mondi categorises its stakeholders into
six key groups, as set out on pages 50-51,
and the Board reviews and agrees these
annually. The Board's rolling agenda is
designed to ensure that throughout the
year, the directors are able to continually
evolve their understanding of these
stakeholders and the material issues
relevant to them, with this knowledge
ultimately feeding into their deliberations.
This is supported by a detailed materiality
assessment conducted at least every three
years which helps us to identify the issues
of greatest importance to our stakeholders.
The results are driven by inputs from a
range of sources, including surveys and
interviews with internal and external
stakeholders.
While the Board undertakes a level
of direct engagement, engagement
responsibilities are embedded throughout
the organisation, ensuring that regular
feedback is obtained from those colleagues
with the strongest day-to-day relationships
with stakeholders. Through our delegation
framework, the output from this
engagement is relayed to the Board,
through the Executive and other
committees of the Board and members
of senior management.
Information enabling the Board to assess
and understand the views and priorities
of our key stakeholders comes from
a number of different sources, including:
– presentations from the CEO of each
business unit, and other members of
senior management, highlighting those
stakeholder issues that are of specific
relevance to their business or area
of responsibility. This included the views
of our customers and how these
influence product development
and key sustainability considerations
(see page 90 for more information);
– updates on the global initiatives Mondi
participates in, primarily related to
sustainability matters, and collaboration
with external bodies;
– regular environmental performance
reviews, including metrics on our
greenhouse gas emissions, given
at meetings of the Sustainable
Development Committee, which all
Board members usually attend;
– detailed review of the results of the
latest customer satisfaction survey; and
– updates and briefings in relation to
matters impacting the environment in
which we operate, including regulatory
changes and market developments,
as well as legislative developments
impacting our customers and suppliers.
During 2024, the Board also heard directly
from one of Mondi's largest customers,
providing valuable insight into its priorities,
its biggest challenges from a packaging
perspective and what it expects from its
suppliers.
To assist the Board, in addition to the
above, all papers requiring material
decisions include clear explanation as to
the expected impact on those stakeholders
relevant to the decision, whether positive or
negative. For capital expenditure decisions
in particular, a more comprehensive review
of the impact on our stakeholders is part
of the established process we have for
developing the necessary business case.
On the following pages, we focus more
specifically on how we have engaged with
employees and investors.
Impact on decision-making
The decision to acquire Schumacher
Packaging's Western Europe Packaging
Assets is just one example of how the
Board has considered the interests of our
key stakeholders, and its wider duties under
Section 172 of the Companies Act. Of
particular relevance for the Board were the
potential benefits to customers, through
the expansion of Mondi's corrugated
footprint in Western Europe, the ability to
broaden its product portfolio and the
enhancement of its eCommerce offering.
From an investor perspective, alignment
with Mondi's strategy was considered, as
well as the growth opportunities and
expected financial contribution offered by
the acquisition. As with all Board decisions,
the interests of Mondi's employees, as well
as those affected Schumacher Packaging
employees, were also at the forefront.
Alongside this, the likely impact of the
transaction on Mondi's risk profile and
relevant principal risks was considered,
enhancing the Board's understanding of
the likely consequences of the transaction
in the long term.
How the Board engages
with employees
Our employees are core to Mondi’s
long-term sustainable success, and as
a global employer, employing around
22,000 people across more than
30 countries, we have a responsibility
to provide a safe and healthy working
environment, to operate with integrity
and to instil a culture that supports
our people in fulfilling their potential.
Our approach
Understanding the experiences and
views of our employees, and the issues
that matter most to them, is an area
of focus for the Board, with this insight
allowing the directors to assess the
impact of their decisions on our
workforce. We use a combination of
different methods to engage with our
employees. Some of our people are
office based but many work in our
production facilities and so no single
method is suitable. By using a range
of methods, we aim to reach as many
people as we can, engaging with them
in the manner most suitable for them.
In October 2024, Anke Groth, an
independent non-executive director,
was appointed as the director
responsible for engaging with Mondi’s
employees on behalf of the Board.
Anke replaced Sue Clark in this role
following Sue's appointment as Senior
Independent Director and Chair of
the Remuneration Committee. Anke's
leadership roles and exposure to a
broad range of stakeholders during her
executive career, including during her
time as Chief Financial Officer and
HR Director of KION Group AG, mean
she is well positioned to take on
this responsibility.
Key initiatives in 2024
During 2024, between them, Sue and
Anke have undertaken a number
of engagements with a broad range
of employees, the format of which varies
depending upon the location and audience
to ensure the sessions are as productive
and valuable as possible.
Mondi Group
Integrated report and financial statements 2024
82
Corporate governance report continued
Board leadership and company purpose continued
The subject matter is usually driven by the
employees and can cover topics ranging
from safety and strategy, to sustainability
and remuneration. Feedback is provided to
the Board after each event on the matters
raised and the themes emerging during
these engagements.
As an example, in May 2024, during a visit
to Mondi's Kuopio mill (Finland), Sue,
together with Philip Yea, undertook a
number of engagement sessions with
a cross-section of employees, including
HR and local employee representatives,
safety personnel and members of local
management. The sessions consisted of
open, two-way discussions in relation to
a broad range of topics including safety,
culture, diversity and inclusivity and the
recent investment at the mill, including the
mill's relevance to the Group's broader
strategy. The results of the last Employee
Survey were also discussed, with insight
given into why employees might not feel
sufficiently recognised for their efforts, a
theme also identified from the broader
survey results. These discussions provide
insight into what matters to our employees
on a local level and how specific local
cultural elements can influence behaviour,
providing an alternative to the Group-wide
perspective that the Board usually sees.
Sue also joined a Social Psychology
of Risk training session at the Štětí mill
(Czech Republic) during the year. The
interactive session was aimed at educating
local management on the psychological
and cultural elements that can result in
unsafe behaviour. Sue's feedback from
the session reinforced the Board's belief
that there is a strong commitment to safety
and clear leadership buy-in within the
operations, and that the Group's safety
culture is well embedded. However, there
is a continued need to proactively focus
on human behaviour when considering how
to further improve safety performance.
Alongside this, Mondi has a European
Works Council, a formally constituted body
designed to facilitate communication with
our employees. The meetings offer
employee representatives an opportunity to
hear about developments across the
business, while also providing an open forum
for employees to ask questions and to
express their views directly to members of
senior management.
The last meeting of the European Works
Council was held in October 2024. The
meeting was attended by representatives
from across Mondi’s European operations,
as well as the Group CEO, the Chief People
Officer and the Group Head of Safety &
Health. Anke Groth also attended the
meeting, further reinforcing the value of
these meetings and providing employee
representatives with a direct channel
of communication to the non-executive
members of the Board. The meeting
consisted of presentations relating to
matters including safety performance,
financial performance, progress with
major capex projects and the HR strategy,
providing attendees with a wide range of
information on the operation of the business.
The formal presentations were followed
by a question and answer session, allowing
participants to openly engage and to raise
questions and comments on a broad range
of topics. Of particular focus for participants
were the recently announced acquisition
of Schumacher Packaging's Western
Europe Packaging Assets, recent safety
performance, the 2025 budget process in
the context of the uncertain macroeconomic
environment and actions in response to the
recent 'Safe to Speak Up' pulse survey.
Matters raised during these meetings are
subject to subsequent follow-up where
appropriate, with further information
provided to participants where required.
A dinner was also held for participants,
allowing further opportunity for
more informal engagement outside
of the meeting.
Mondi Group
Integrated report and financial statements 2024
83
Board site visits
The June 2024 Board programme
was held at our Ružomberok mill
(Slovakia). The two-day visit
incorporated the scheduled Board
and committee meetings but also
included presentations from the local
management team and a tour of the
mill. The Board was given insight into
the mill's product portfolio, safety and
financial performance, local diversity
and inclusion initiatives and progress
against the MAP2030 commitments,
before seeing the mill in action.
A dinner with representatives
from the mill was also held, offering
the opportunity for direct and
more informal engagement with
Board members.
Such visits are invaluable to the Board,
with the programmes designed to
facilitate broad engagement. They
allow the directors to experience the
culture and safety approach first hand
and to engage directly with those on
the ground in the operations.
In addition to Ružomberok, Philip Yea
and Sue Clark visited Mondi's Kuopio
mill (Finland) in May 2024, more details
of which can be found opposite. Philip
also visited Mondi's Izmit and Gebze
plants (Türkiye) in September 2024.
In January 2024, the Board
programme was held at our Group
office in Vienna (Austria), facilitating
in-person engagement between the
Board and members of senior
management based in Vienna.
In particular, an invitation to attend
a Board dinner was extended to a
wide group of people, with attendees
ranging from function heads to HR
business partners and key members
of operational management. Such
events offer valuable insight for the
purposes of succession planning and
monitoring and assessment of the
organisational culture.
The Board undertook a similar visit to
the Vienna Group office in January
2025 and intends to undertake a
further site visit later in the year.
Other mechanisms
The Board also uses the following
mechanisms to ensure it has a broad view
of the issues affecting our employees
and their views on key matters:
– feedback from the CEO and other
Executive Committee members, who are
in regular contact with a wide spectrum
of employees from across the Group;
– results of global and local Employee
Surveys, providing insight into the issues
that matter most to our employees and
how they feel about working for Mondi,
guiding decisions that might impact
employees and allowing the Board to
identify areas for future focus. A number
of the questions are also designed to
test the culture in the organisation and
to allow the Board to judge how well
the desired culture is embedded;
– leadership forums, incorporating the
Mondi Diamond Awards, usually
attended by the Chair of the Board
and held approximately every two
years, providing the opportunity for
engagement with a wider range
of senior employees from across
all areas of the business;
– SpeakOut reports, which are presented
to the Audit Committee and Board at
meetings throughout the year. The reports
provide details of the messages received
via our whistleblowing and grievance
platform, SpeakOut, giving the Board
insight into specific issues affecting
our employees and allowing the Board
to identify any trends. Further details on
SpeakOut can be found on page 74; and
– review of usage rates for Mondi’s Employee
Assistance Programme which offers
an anonymous counselling service for
employees.
The Board continues to believe that
this combination of methods remains
appropriate and effective, providing
insight into the views of a broad range
of employees from across Mondi’s
locations and allowing for two-way
engagement, with employees having
direct access to members of the Board
and senior management.
How the Board engages
with investors
Our approach
Understanding the views of our investors
is fundamental to the way we run the
business, the development of our strategy
and how we shape our priorities. The
engagement we have with investors, both
directly and indirectly, allows the Board
to determine which issues are of most
importance to them and to understand what
long-term, sustainable value means from
their perspective. While recognising that
every investor has their own rationale for
investing in Mondi and that their investment
goals vary, ongoing engagement allows the
Board to take fully informed decisions, with
an understanding of how different groups
of investors may be impacted.
While the Chair is responsible for ensuring
effective communication with shareholders,
day-to-day management of this
engagement is delegated to the Group
CEO and Group CFO. They undertake
active engagement with investors on a
regular basis, meeting with Mondi’s largest
shareholders, analysts and other fund
managers. Meetings with the Chair are
offered on a regular basis and the Senior
Independent Director is available to meet
with shareholders as required, should any
issues arise that are not resolved through
the more regular channels. The committee
chairs are also available for engagement
with investors and other stakeholders
where appropriate.
In addition, the executive directors and
the Head of Investor Relations make
themselves available to investors on an
ongoing basis in order to maintain an
open dialogue, resulting in a number of
ad hoc meetings and calls taking place
throughout the year.
We also maintain ongoing contact with
our debt providers, and the Group CFO
and Group Treasurer hold regular meetings
with the credit rating agencies, relationship
banks and debt investors.
The directors are kept informed of the
views raised, with feedback from investors,
particularly from the full- and half-year
investor roadshows, presented and
discussed at Board meetings. Analyst
reports are also shared regularly with the
Board and consideration given to any views,
both positive and negative, regarding the
Group’s performance and future direction
and the perceptions of the management
team. These views provide context for,
and feed into, the Board’s discussions
around strategy, capital allocation and
succession planning.
Mondi Group
Integrated report and financial statements 2024
84
Corporate governance report continued
Board leadership and company purpose continued
Key initiatives in 2024
Details of the key investor events that took
place during 2024 can be found opposite,
with feedback from these events covering
investor views on a range of topics, including
on the Group's performance, strategy, capital
allocation, the major capacity expansion
project pipeline, returns and sustainability
topics. One of Mondi's brokers also
presented to the Board during the year,
providing detailed insight into current
market perceptions of Mondi, the key focus
areas for Mondi's largest investors and
areas of focus for potential new investors.
This insight feeds into the development of
Mondi's investor communication strategy.
Mondi’s Annual General Meeting (AGM)
also presents an opportunity for
shareholders to question the directors
about our activities, performance and
prospects and continues to be a valuable
opportunity for direct engagement
between the Board and shareholders.
The AGM in 2024 was held as a fully
hybrid meeting, in line with the approach
taken in 2022 and 2023. Those shareholders
joining virtually were able to hear the meeting,
ask questions both verbally and in written
form and vote live during the meeting.
To maximise engagement, shareholders were
also able to submit their questions in advance
of the meeting, with written answers provided
in advance of the proxy voting deadline
wherever possible. All resolutions were
passed, with approximately 76% of the total
Group shares voted, indicating high levels
of engagement.
However, given the cost involved with
holding a fully hybrid meeting and the
extremely low number of shareholders taking
advantage of the hybrid facility, we have
looked at ways in which we can simplify the
arrangements while continuing to maximise
levels of engagement. As a result, for the
2025 AGM we have decided not to hold a
fully hybrid meeting. Instead, alongside the
ability to attend in person, we will offer a
webinar facility so that those shareholders
who cannot attend in person are still able
to listen to the meeting and ask questions.
However, shareholders using the webinar
facility will not be able to vote during the
meeting. As always, shareholders will also be
able to submit questions in advance of the
meeting, either to be read out and answered
during the AGM or, if preferred, for response
prior to the proxy voting deadline. We hope
that these arrangements continue to provide
flexibility for our shareholders and encourage
engagement, while at the same time
minimising cost and complexity.
Full details of the arrangements for the
2025 AGM, and explanations of each
resolution to be proposed at the AGM,
can be found in the 2025 AGM notice,
which is contained in a separate circular
to be made available to all shareholders
in advance of the meeting.
2024 investor events
January
General meeting to approve special dividend
and share consolidation
Bank of America SMID Conference
February
Preliminary results announcement
Johannesburg and Cape Town full-year results roadshow
March
London full-year results roadshow
ESG engagement calls
April
Discussions with investors and advisory bodies
prior to Annual General Meeting
May
Annual General Meeting and trading update
BNP Paribas Exane Future of Packaging Conference
Fixed income investor roadshow
August
Half-year results announcement
Johannesburg and Cape Town half-year results roadshow
September
London half-year results roadshow
Frankfurt investor roadshow
Morgan Stanley Big Five Conference
Jefferies fireside chat
October
Trading update
ESG engagement calls
November
UBS European Conference
December
Bank of America European Materials Conference
Mondi Group
Integrated report and financial statements 2024
85
Composition and independence
of the Board
The directors holding office during the
year ended 31 December 2024 are listed
below, together with their attendance
at Board meetings. Biographical details
for those in office at the date of this report
can be found on pages 76-77.
The size and composition of the Board
and its committees are kept under review
by the Nominations Committee. While
we are of the view that collectively there
is an appropriate balance of capabilities,
business experience, independence
and skills diversity on the Board to meet
the Group’s current business needs,
we are constantly assessing the mix
of competencies on the Board and its
committees and considering succession
planning requirements.
Meetings between the Chair and
non-executive directors without
management present are held prior to
every Board meeting. Sue Clark as Senior
Independent Director also met with the
other directors without the Chair present to
lead the review of the Chair’s performance.
Board policies and procedures
There are a number of policies in place
designed to ensure that the Board can
function effectively. These include:
Professional advice
A policy is in place pursuant to which
each director and each of the committees
may obtain independent professional
advice at Mondi’s expense in the
furtherance of their duties.
Directors’ and officers’ liability
insurance
Throughout the year to 31 December
2024, in line with market practice,
Mondi maintained directors’ and officers’
liability insurance.
Procedure for conflicts of interest
Company law and the articles of
association of Mondi plc allow directors
to manage potential conflicts. A formal
procedure is in place requiring any potential
conflicts to be reported to the Company
Secretary so that the conflict can be
discussed by the Board and authorised if
appropriate. The Board may impose any
restrictions on the authorisation that it
thinks appropriate. Conflict authorisations
are reviewed on an annual basis.
External directorships policy
To ensure that our directors are able to
dedicate sufficient time to Mondi, Mondi
has a policy setting out the parameters
regarding external appointments. Executive
directors must notify and obtain agreement
from the Nominations Committee before
accepting external positions. They are
permitted to retain any fee paid to them in
respect of directorships external to Mondi.
Neither of Mondi’s executive directors
currently holds a directorship external
to Mondi.
The policy also covers non-executive
directors, who are required to notify the
Chair of any proposed appointments,
including the time commitment and any
potential conflicts of interest, so that the
Board can consider and, if appropriate,
agree to the appointment. During the year,
it was agreed that Svein Richard
Brandtzaeg could join the board of Rotork
plc as a non-executive director. After
considering his other commitments,
including his decision to step down from
the board of Eramet Norway, and his
attendance record to date, it was
determined that he would continue to have
the necessary time to dedicate to Mondi.
Division of responsibilities
The division of responsibilities between
the Chair and the Group CEO has been
clearly defined and approved by the Board.
The functions and duties of the Senior
Independent Director are also set out
in a separate statement.
The primary role of the Board, led by
the Chair, is to ensure the long-term
sustainable success of the Group, taking
into consideration the views and interests
of our key stakeholders. Our governance
processes and procedures provide a
framework to support the Board in the
fulfilment of this role.
There is a clearly defined Schedule of
Matters Reserved for the Board, setting
out those key matters that require Board
approval. The Board meets at least
seven times a year and an annual rolling
agenda is agreed with the Board to ensure
that all key matters reserved for its
consideration are covered in the annual
cycle of meetings. The Board is supported
by a number of committees, each of which
has its own terms of reference and annual
work programme. The Matters Reserved
for the Board and the terms of reference
are reviewed at least annually and are
available on the Group’s website.
The Chair, with support from the Company
Secretary, ensures the distribution of
appropriate materials, with meeting packs
being circulated electronically a week
before each meeting.
Where appropriate, other senior executives
and advisers are invited to attend and
present at meetings, providing the
non-executive directors with a broader
perspective on matters under consideration
and assisting the Board with monitoring
performance and achieving its objectives
(see page 90 for more information).
Board attendance1
Directors
Philip Yea
10/10
Saki Macozoma
10/10
Svein Richard Brandtzaeg
10/10
Mike Powell
10/10
Sue Clark
10/10
Dominique Reiniche3
7/8
Sucheta Govil2
1/2
Dame Angela Strank
10/10
Anke Groth
10/10
Stephen Young4
9/10
Andrew King
10/10
1
The maximum number of meetings held during the year that each director could attend is shown next to the number attended.
2
Sucheta Govil joined the Board on 1 October 2024. Sucheta was unable to attend one meeting following her appointment due to a pre-existing commitment.
3 Dominique Reiniche retired from the Board on 30 September 2024. Dominique was unable to attend one meeting prior to her retirement. The meeting was arranged at short
notice and Dominique provided her views ahead of the meeting.
4 Stephen Young was unable to attend one meeting during the year. The meeting was arranged at short notice and Stephen provided his views ahead of the meeting.
Mondi Group
Integrated report and financial statements 2024
86
Corporate governance report continued
Division of responsibilities
Board leadership and governance
The Board
Chair Philip Yea
– Leads and manages the Board, setting the agenda,
providing direction and focus and ensuring
effectiveness and open and transparent debate
– Undertakes regular engagement with the Group CEO
in between meetings
– Ensures there is a constructive relationship between
the executive and non-executive directors
– Ensures high standards of corporate governance
and ethical behaviour and oversees the culture
of the Group
– Oversees the induction, training and
development of directors and the consideration
of succession
– Ensures effective communication with
shareholders and other stakeholders
– Ensures the Board receives accurate, timely
and clear information to support discussion
and decision-making
Group CEO Andrew King
Group CFO Mike Powell
– Leads and manages the business
with day-to-day responsibility for
running the operations and, in
particular, the execution of strategy
within the delegated authority from
the Board
– Ensures the communication of
Mondi’s values and goals throughout
the organisation, leading by example
– Chairs the Executive Committee
and leads and motivates the
management team
– Ensures the Group has effective
processes, controls and risk
management systems
– Develops and implements Group
policies, including with regard to
safety and sustainability
– Together with the Group CFO,
leads the relationship with
institutional shareholders
– Manages the day-to-day
operations of the Group, in this
case within his remit as Group
CFO, in accordance with authority
delegated by the Board
– Together with the Group CEO,
leads the relationship with
institutional shareholders
Senior Independent Director
Sue Clark
Independent non-executive directors
Svein Richard Brandtzaeg, Sucheta Govil, Anke Groth, Saki Macozoma,
Dame Angela Strank, Stephen Young
– Provides support to, and acts as a sounding board
for, the Chair and the non-executive directors
– Acts as a point of contact for shareholders
– Available as a trusted intermediary for other directors,
as necessary
– Manages Chair succession
– Provide independent oversight of the
Group’s activities
– Offer an external perspective to, and
constructively challenge, management
– Provide to the Board a diversity of
knowledge and experience
– Monitor management performance and the
development of the organisational culture
– Review and agree strategic priorities and
monitor the delivery of the Group’s strategy
– Ensure the integrity of financial reporting
and the effectiveness of internal controls
and risk management
– Determine executive director remuneration
Board committees
Nominations Committee
Philip Yea, Svein Richard Brandtzaeg,
Sue Clark, Sucheta Govil, Anke Groth,
Saki Macozoma, Dame Angela Strank,
Stephen Young
Oversees the composition of
the Board and committees and
considers succession planning and
diversity, making recommendations
to the Board
Audit Committee
Stephen Young, Svein Richard
Brandtzaeg, Sue Clark, Anke Groth, Saki
Macozoma
Oversees the Group’s corporate
financial reporting, the internal control
system, risk management and the
relationship with the external auditor
Remuneration Committee
Sue Clark, Sucheta Govil, Dame Angela
Strank, Philip Yea
Responsible for recommending overall
remuneration policy and the setting
of executive and senior management
remuneration
Sustainable Development Committee
Dame Angela Strank, Svein Richard
Brandtzaeg, Andrew King, Stephen
Young
Oversees the Group’s strategy,
commitments, targets and performance
relating to safety, the environment,
climate-related matters and other
sustainable development issues
Nominations Committee report
Page 94
Audit Committee report
Page 99
Remuneration report
Page 111
Sustainable Development
Committee report
Page 108
Executive Committee
Disclosure Committee
Day-to-day management of the Group
Responsible for classifying and overseeing the prompt disclosure of inside
information and overseeing the creation of insider lists
Company Secretary Jenny Hampshire
– Supports the Chair in the delivery of accurate
and timely information ahead of each meeting
– Ensures compliance with Board and
committee procedures
– Acts as a key point of contact for the Chair and
non-executive directors
– Provides support to the Board and committees,
and advises on governance, statutory and
regulatory requirements
– Provides advice on legal, governance and listing
requirements, in particular relating to continuing
obligations and directors’ duties
Mondi Group
Integrated report and financial statements 2024
87
Board activity
The key matters considered by the Board during the year are set out below. While this is not an exhaustive list, it provides insight into the
discussions of the Board and how it aims to promote the long-term success of the Group and achieve its key objectives. In addition to
the matters set out, each meeting includes a report from the Group CEO providing a market and operational update; a report from the
Group CFO on the Group’s financial performance; an update on safety performance; an update on the status of major capex projects;
and a report from the Company Secretary on recent governance and regulatory matters.
Strategy key
Drive performance along
the value chain
Invest in quality assets
Empower our people
Partner with customers
Topic
Activity
Operational
performance
Link to strategy
Stakeholders
impacted
– Investors
– Employees
– Customers
– Suppliers and
contractors
– Received regular updates from the Group CEO and detailed reports from the CEOs of the business units,
enabling the Board to monitor operational performance and feeding into the annual strategy review.
– Monitored the implementation of a number of large capital expenditure projects, including ongoing projects
at our mills in Štětí (Czech Republic) and Duino (Italy), and at a number of our converting sites (see page 17
for more information).
– Received presentations in relation to pulp and paper technology developments, and detailed insights into
research and development activities, improving the Board’s knowledge and providing context for capital
investment decisions.
Strategy
formulation
and monitoring
Link to strategy
Stakeholders
impacted
– Investors
– Customers
– Communities
– Employees
– Concluded a strategy review session resulting in continued support for Mondi’s strategic direction and
confidence that Mondi’s strategy is sustainable in the long term (see page 89 for more information).
– Considered the potential acquisition of Schumacher Packaging's Western Europe Packaging Assets, taking
into consideration factors including the interests of key stakeholders (see page 82 for more information),
Mondi's ability to finance the acquisition and the likely impact on Mondi's risk profile. The acquisition was
ultimately approved for an enterprise value of €634 million.
– Considered whether to make an offer for DS Smith, taking into consideration a broad range of internal and
external factors, including the interests of our investors, customers and employees and other stakeholders,
financing considerations, risks and opportunities from a sustainability perspective, the Group's broader risk
profile and cultural and integration considerations. After detailed discussions, the Board ultimately decided
not to proceed with an offer.
Financial
performance,
funding and
capital
Link to strategy
Stakeholders
impacted
– Investors
– Reviewed and approved the full- and half-year results and trading updates.
– Reviewed and approved the Mondi Group Integrated report and financial statements, ensuring it is fair,
balanced and understandable (see page 105 for more information).
– Considered dividend recommendations and declarations in light of the Group’s stated dividend policy, trading
performance and investor expectations. This resulted in the decisions to pay an interim ordinary dividend for
2024 in September 2024 and to recommend a final ordinary dividend for payment in May 2025 (see page 28
for more information).
– Reviewed and approved the Group business plan for 2025–2027, including the budget for 2025, considering
assumptions made and the reasonableness of the plan and focusing on the operational overviews, cash flow
management and capital allocation.
– Annual reviews of the Group Treasury and Group Tax functions and performance, including funding and
liquidity, providing context for capital allocation decisions. The Board concluded that it remained comfortable
with the approach in each of these areas and re-confirmed its support for the key treasury and tax policies
in place.
Mondi Group
Integrated report and financial statements 2024
88
Corporate governance report continued
Division of responsibilities continued
Topic
Activity
Governance and
stakeholders
Link to strategy
Stakeholders
impacted
– Investors
– Employees
– Partners and
industry
associations
– Customers
– Reviewed the Group’s corporate governance framework in light of governance and regulatory developments,
concluding it remains appropriate.
– Reviewed investor feedback following the full- and half-year results announcements, providing input relevant
to future capital allocation decisions.
– Received a presentation from a key Mondi customer, giving the Board first-hand insight into the
requirements of our customers and where Mondi needs to prioritise its efforts.
– Considered the results of the customer satisfaction survey undertaken during the year, identifying the key
areas of focus and actions required.
– Reviewed the output from the Board performance review and agreed an action plan (see page 93 for
more information).
Safety and
sustainability
Link to strategy
Stakeholders
impacted
– Employees
– Suppliers and
contractors
– Customers
– Communities
– Monitored safety performance across the Group, including the number, type and severity of incidents.
There was particular focus on understanding the events that tragically resulted in a fatality at Mondi’s
Merebank mill (South Africa) and the life-altering injuries in our operations (see page 40 for
more information).
– Received updates on key sustainability regulatory and best practice developments from the Group Head
of Sustainable Development through the Sustainable Development Committee, and via regular business
unit reviews.
– Monitored the work of the Sustainable Development Committee, focusing in particular on progress
against Mondi’s MAP2030 sustainability commitments, the Group’s most material sustainability risks
and opportunities and preparations for reporting in accordance with the EU Corporate Sustainability
Reporting Directive. A detailed explanation of the work of the Sustainable Development Committee
can be found on pages 108-110.
Strategy review
In 2024, the Board undertook its annual
review of Mondi's strategy, examining
the Group's current position, strategic
priorities, opportunities for future
growth, and detailed initiatives across
the business units. This comprehensive
review is designed to rigorously
evaluate the strategy and the
assumptions underpinning it, ensuring it
remains capable of delivering long-
term, sustainable value for
stakeholders, aligns with Mondi's
purpose and reflects the Group's values
and way of doing business.
Rather than being a standalone
exercise, the strategy review builds
on the Board's ongoing discussions
and committee work throughout
the year. These prior deliberations
provide vital context, culminating
in this in-depth assessment of the
Group's strategic direction.
The 2024 review specifically considered
key demand drivers, such as evolving
macroeconomic conditions, the growing
importance of sustainable packaging
and trends in eCommerce. It also
factored in the ongoing geopolitical
and macroeconomic uncertainties,
alongside recent market consolidation,
ensuring the strategy reflects current
and emerging challenges.
The Group’s principal risks were
also considered during the Board’s
discussions, with particular attention
given to whether changes in the risk
landscape might require adjustments
to Mondi’s strategy.
After detailed discussion, the Board
reaffirmed its confidence in the Group's
strategic direction.
Our strategy
Page 14
Mondi Group
Integrated report and financial statements 2024
89
Topic
Activity
Risk
management
Link to strategy
Stakeholders
impacted
– Employees
– Customers
– Investors
– Reviewed the Group’s risk management processes, plan and risk appetite levels and internal controls, with
consideration of risk monitoring, activities to ensure risk mitigation and independent assurance processes.
While the Board concluded that no changes to the principal risks were required, the emerging risks were
updated (see page 62 for more information).
– Received half-yearly presentations on IT risks and cyber security (see page 100 for more information).
– Reviewed the Group's insurances, ensuring an appropriate balance of risk between the Group and our
external insurers.
People and
culture
Link to strategy
Stakeholders
impacted
– Employees
– Customers
– Suppliers and
contractors
– Received updates from the non-executive director responsible for engaging with employees, through
the Sustainable Development Committee, providing insight into the culture and key employee issues
(see pages 82-84 for more information). These insights help to identify areas of focus for the Board
and feed into discussions with the Chief People Officer.
– Reviewed reports received via Mondi’s anonymous whistleblowing and grievance platform, SpeakOut
(see page 74 for more information), with consideration given to common themes and emerging trends.
– Reviewed and approved the Group’s Human Trafficking and Modern Slavery Statement.
Leadership
Link to strategy
Stakeholders
impacted
– Employees
– Investors
– In response to Dominique Reiniche's retirement from the Board, considered and approved, following
recommendations from the Nominations Committee, the appointment of Sucheta Govil as an
independent non-executive director (see page 96 for more information), as well as other associated
changes, including changes to the chairs of the Sustainable Development and Remuneration Committees
and the non-executive director responsible for engaging with employees.
– Monitored the work of the Nominations Committee in relation to succession and talent management plans,
particularly in relation to the Group CEO and CFO, as well as other senior management roles (see page 95
for more information).
Presentations from senior management
During the year, members of Mondi’s
senior management presented
to the Board on a variety of topics.
These presentations not only provide
insight into the business and culture
directly from those on the ground
but also support the Board’s focus
on succession planning, allowing
Board members to hear from, speak
to and get to know potential
future leaders.
Each of the business unit CEOs
provided updates on their areas
of responsibility within Mondi,
focusing on safety performance,
market position and dynamics,
evolving customer demands, financial
performance and people development,
as well as performance against key
sustainability metrics.
The specific impacts on each
business of developing trends and
key strategic drivers were also
reviewed, including sustainability,
eCommerce and digitalisation.
The other members of the Executive
Committee also presented to the
Board in relation to their areas of
responsibility. These presentations
included updates on technology
developments in Mondi’s core
manufacturing processes, operational
excellence and Mondi’s strategy in
respect of energy usage and security,
as well as the approach to succession
planning and the attraction and
retention of talent within the
organisation.
In addition, the Group Head of
Fibre Sourcing presented Mondi’s
wood sourcing strategy, the Group Head
of Digital Excellence provided an update
on the Group’s digitalisation journey, and
the Group Communication Director
provided insight into internal and external
engagement priorities, focusing
particularly on the drive to increase
employee engagement through the
introduction of new employee
communication platforms.
The Group Heads of Tax and Treasury
also updated the Board on their
current focus areas.
These presentations provided insight
into the priorities of a number of
Mondi’s key stakeholders and current
risk areas, and formed the backdrop
to other discussions, including the
annual strategy review.
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Integrated report and financial statements 2024
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Corporate governance report continued
Division of responsibilities continued
Induction, training
and development
Training and development are important
in ensuring the ongoing effectiveness
of the Board and that we have the right
combination of skills and knowledge.
This begins with an induction for all
new directors. While there is an outline
induction programme in place, this is
discussed with each new director and is
tailored to meet any specific requirements.
The aim is to familiarise a new director with
the nature of the Group’s business and
operations, highlighting the key challenges
and opportunities as well as the regulatory
environment in which the Group operates.
The induction incorporates the key duties
of the director, including in relation to
Section 172 and stakeholder interests, and
the culture and values of the Group.
All directors are given access to an online
director handbook containing documents
including key policies and the terms of
reference for each committee. Details of
the induction programme for Sucheta
Govil, who joined the Board in October
2024, are provided below.
We also aim to ensure that existing
directors receive ongoing training and
development opportunities. We offer
the directors the opportunity to keep
up to date with regulatory, governance
and economic changes as well as
developments in the markets and
environments in which we operate. We do
this through Board presentations, both from
internal and external presenters, site visits,
updates aimed at providing wider context
to the Group’s activities and position in
the market, and regular reports from the
Company Secretary highlighting developing
trends and future changes in governance
and regulation.
In addition, we aim to hold at least
one Board meeting a year at one of
Mondi’s sites, giving Board members the
opportunity to refresh and develop their
understanding of Mondi’s operations.
Further details can be found on page 83.
Each director can discuss any development
needs with the Chair at any time, but the
opportunity arises more formally during the
annual review process, when discussions
regarding individual performance are held.
In addition, all directors are encouraged
to strengthen and refresh their knowledge
by attending any workshops, seminars
and courses relevant to their respective
roles, and details of the availability
of these are provided regularly.
Director induction process
Sucheta Govil's
induction
Following Sucheta's appointment to
the Board in October 2024, a number
of meetings and briefings were
organised in order to provide her with
a detailed overview of the Group, and
to give her the insight and knowledge
required to make as full and effective
a contribution as possible.
Meetings were held with each of the
Executive Committee members, allowing
Sucheta the opportunity to gain
an understanding of the Group's business
units, culture, risk areas and priorities,
and providing the context necessary
for matters discussed at Board and
committee meetings. Sucheta also met
the Company Secretary early on in the
induction process, with the session
covering matters including directors'
duties, share dealing procedures, Mondi's
approach to managing conflicts of interest
and key policies.
Given Sucheta's membership of the
Remuneration Committee, she also had
an in-depth briefing with the Group Head
of Reward and Head of Executive Reward
in relation to the Directors' Remuneration
Policy and the key focus areas for the
committee. The briefing provided context
for the matters the committee was
required to consider early in 2025 and the
discussions the committee will be
undertaking during the year in advance
of the new policy being put to a
shareholder vote in 2026.
Sucheta's induction is ongoing, with
further meetings and briefings being
arranged as appropriate. Site visits are
also a crucial element of the induction
process and so opportunities for
Sucheta to undertake such visits and
to see our operations first hand are
being identified.
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Integrated report and financial statements 2024
91
Composition, succession and evaluation
Board performance review process
Year 1 (2022)
External review
– Independent external board
performance review provider
selected and appointed.
– Scope refined and agreed between
the Chair and external provider.
– Questionnaires issued and one-
to-one interviews undertaken by
the reviewer with each director
and the Company Secretary.
– One-to-one calls between
the Chair and each director
to discuss the results.
– Results and actions discussed by
the Nominations Committee and
action plan agreed by the Board.
Years 2 and 3 (2023 and 2024)
Internal reviews
– Outcome from previous
performance review and progress
against each action assessed.
– Independent external provider
previously used for the external
performance review appointed
to facilitate internal reviews,
providing continuity.
– Questionnaires issued to
directors, Company Secretary
and other regular Board
attendees.
– One-to-one calls between Chair
and directors to discuss results.
– Results and actions discussed by
the Nominations Committee and
action plan agreed by the Board.
In 2023, we conducted an internal Board performance review. The process was facilitated by Lintstock, an independent governance
advisory firm. Below are the key actions reported last year, and details of the progress we have made against those actions:
Action agreed from 2023 performance review
Progress achieved
To arrange for the Board to hear directly from major customers,
to supplement the insight already provided to the Board in
respect of customer requirements through presentations
from management.
In July 2024, the Global Head of Procurement Packaging from
one of Mondi's key customers presented to the Board, providing
detailed insight into the factors influencing its packaging
requirements and choices, the perceptions of its end consumers
and the input and support required from its suppliers.
To further develop and enhance the Nominations Committee's
approach to succession planning, particularly in respect of the
executive directors, with support from the newly appointed
Chief People Officer.
Following the appointment of the Chief People Officer in April
2024, a detailed succession planning session in respect of the
Group CEO was undertaken. More details can be found on
page 95. Similar sessions have also been held in respect of the
Group CFO and other Executive Committee members.
To continue to identify opportunities for interaction between the
Board and senior management on a less formal basis, with the aim
of supporting succession planning discussions and giving Board
members deeper insight into the organisation from both an
operational and cultural perspective.
Throughout the year, the Board has continued to engage with
senior management during Board meetings and site visits but has
also taken the opportunity to invite management to a combination
of formal and informal gatherings.
Mondi Group
Integrated report and financial statements 2024
92
Corporate governance report continued
Composition, succession and evaluation continued
2024 Board performance review
In 2024, the Board took the decision to undertake a questionnaire-based performance
review facilitated by Lintstock. Given Lintstock carried out Mondi's external review in
2022 and supported its internal review in 2023, it was agreed that the continuity, follow-
up support and insight Lintstock could offer would be valuable. Lintstock has no other
connection to Mondi beyond the provision of board performance reviews. Anonymity
was ensured throughout the process to allow for the provision of candid and open
feedback by participants. The review process was led by Philip Yea in conjunction with
the Nominations Committee and is set out below. The review of the Chair was led by
Sue Clark as Senior Independent Director.
As a result of the process, the Board
concluded that it continues to operate
in an effective manner, benefitting from
positive dynamics, strong engagement
and relationships with senior
management and a boardroom culture
that allows for open and constructive
challenge. Each director continues to
contribute effectively to the Board.
There was consensus around the
priorities for the forthcoming year, and
the key actions agreed by the Board
include:
– to maintain focus on value accretive
growth opportunities in line with
Mondi's strategy notwithstanding the
prevailing trading environment;
– to review the format of the annual
strategy review process, ensuring early
input from the Board so that the
agenda is tailored to focus on key
topics identified by both management
and the Board; and
– to review the structure and content of
Board agendas to ensure that topics
covered are appropriately spread
across the year.
The Board considers that it continues
to benefit from the annual review
process, the results of which help
guide the future focus of meeting
agendas and behaviours.
Engagement
Decision to engage Lintstock to conduct the performance review
Questionnaires completed
Questionnaires relating to the Board, committees and individual performance
completed by directors, the Company Secretary and other regular attendees
at Board and committee meetings
Report issued
Detailed report from Lintstock setting out the questionnaire findings issued
and reviewed with the Chair
One-to-one calls between Chair and directors
One-to-one calls undertaken by the Chair with each director to discuss findings
and individual performance and findings related to individual committees reviewed
and considered by committee chairs
Report considered
Report considered at a meeting of the Nominations Committee
Action plan recommended
Action plan recommended by the Nominations Committee and agreed by the Board
Mondi Group
Integrated report and financial statements 2024
93
Philip Yea
Chair of the Nominations Committee
A primary responsibility of the committee is to
ensure that the composition of the Board and its
committees is appropriate and relevant to the
Group and that the Board continues to be in the
best position to deliver the Group's strategy.
Composition and attendance1
Members throughout the year
Committee member since
Meeting attendance
Philip Yea, Chair
April 2020
5/5
Svein Richard Brandtzaeg April 2021
5/5
Sue Clark
April 2021
5/5
Sucheta Govil2
October 2024
1/2
Anke Groth
April 2023
5/5
Saki Macozoma
May 2022
5/5
Dominique Reiniche3
October 2015
3/3
Dame Angela Strank
April 2021
5/5
Stephen Young
May 2018
5/5
1
The maximum number of meetings held during the year that each director could
attend is shown next to the number attended.
2
Sucheta Govil joined the committee on 1 October 2024. Sucheta was unable to
attend one meeting following her appointment due to a pre-existing
commitment.
3 Dominique Reiniche retired from the Board and the committee on 30 September
2024. Dominique attended all meetings up to the date of her retirement.
Other regular attendees
– Group CEO
Dear Shareholder
I am pleased to present this report,
which provides an overview of the areas
of focus for the committee during the year,
and those for the year ahead, as well as its
key activities and the framework within
which it operates.
Composition
To ensure the committee has access to as
wide a range of knowledge and experience
as possible, each non-executive director
is a member. In line with this practice,
Sucheta Govil joined the committee
upon her appointment to the Board
in October 2024.
Areas of focus
A primary responsibility of the committee is
to ensure that the composition of the Board
and its committees is appropriate and relevant
to the Group and that the Board continues to
be in the best position to deliver the Group’s
strategy, and to ensure that the business
operates in line with Mondi’s purpose, culture
and values. This includes overseeing Board
diversity and succession matters.
At the end of September 2024, we said
goodbye to Dominique Reiniche, who
retired after completing nine years on the
Board. I am grateful to Dominique for the
insight she provided to the committee's
discussions during her time with Mondi. In
preparation for Dominique's retirement, the
committee spent time considering the skills
and experience required by the Board and
its committees in the coming years and
how the committee memberships might
need to evolve. These discussions resulted
in a recruitment process being conducted
through an external search agency and I am
pleased to confirm that Sucheta Govil joined
the Board, and the committee, as an
independent non-executive director in
October 2024.
Dominique's retirement and Sucheta's
appointment also offered the opportunity
to refresh some of the key roles on the
Board. We were pleased to have the
breadth and depth of experience among
our existing Board members to be able
to manage succession to a number of key
roles effectively. In particular, Sue Clark
succeeded Dominique as Senior
Independent Director and was also
appointed as Chair of the Remuneration
Committee, while Dame Angela Strank
succeeded Dominique as Chair of the
Sustainable Development Committee.
They each bring a wealth of experience
to their respective roles and the committee
is confident that these changes ensure the
Board and its committees are well placed
to take the Group forwards.
Mondi Group
Integrated report and financial statements 2024
94
Corporate governance report continued
Nominations Committee
The committee's other primary focus is
succession planning in relation to the Group
CEO, the Group CFO and other senior
management roles. While the committee
routinely reviews succession plans in this
regard, in light of the appointment of a new
Chief People Officer during the year, the
opportunity was taken to refresh its
approach. In particular, while there is no
current intention for Andrew King to step
down from the role, the committee took the
time to delve more deeply into the
succession plans for the Group CEO role,
focusing on the attributes required of a
successor and the potential candidates,
both internal and external. From an internal
perspective, the committee was keen to
understand the actions required in the short
and medium term to develop and prepare
potential candidates. From an external
perspective, the committee spent time, with
the support of an independent consultant,
debating the key criteria for the role and
exploring the universe of potential
candidates, including those likely to be ready
to take on the role in the longer term. The
exercise enabled the committee to develop
its thinking in this area and the output will
drive future conversations in this respect.
Similarly, the plans for the Group CFO
and other Executive Committee roles were
refreshed and discussed in detail.
The committee's succession planning
discussions take place in the context of
the Group's commitment to increasing
levels of diversity across the organisation.
While it is clear that there is still a long
way to go in this respect, and that the
MAP2030 target of 30% women across
the organisation by 2030 remains
challenging, it is encouraging to see the
significant work being undertaken in this
regard through the presentations given to
the Sustainable Development Committee.
Diversity is a clear focus of executive
management, in conjunction with local
management, and every effort is being
made to ensure that our succession plans
reflect our commitments in this area. More
information can be found on pages 96-98.
A more detailed overview of the key
matters considered by the committee
during the year can be found below.
Committee effectiveness
The committee’s performance and
effectiveness were reviewed as part
of the Board performance review
undertaken during the year, more details of
which can be found on page 93. I am
pleased to confirm that the committee is
seen to be operating effectively and
fulfilling the duties delegated to it by the
Board.
Philip Yea
Chair, Nominations Committee
Nominations Committee activity
Set out below are some of the key matters addressed by the committee.
Board and committee composition
– Following the conclusion of a
recruitment process facilitated by an
external search agency, recommended
to the Board the appointment of
Sucheta Govil as an independent
non-executive director.
– In response to Dominique Reiniche's
retirement, recommended to the
Board the appointment of Sue Clark
as Senior Independent Director and
Chair of the Remuneration Committee,
Dame Angela Strank as Chair of
the Sustainable Development
Committee and Anke Groth as the
director responsible for engaging
with employees.
– Reviewed the continued independence
of each non-executive director,
including consideration of their term
in office and any potential conflicts
of interest, concluding that each
non-executive director remained
independent.
– Reviewed the time commitment
required of each non-executive
director, concluding that all
non-executive directors continued
to devote appropriate time to fulfil
their duties to Mondi. Particular focus
was given to Stephen Young, who
reached his six-year term on the
Board in May 2024, and Svein Richard
Brandtzaeg, Sue Clark and Dame
Angela Strank, who each reached
their three-year term in April 2024.
Succession planning
– Considered the Board’s succession
plans, in relation to existing directors,
the requirements of the Board and
committees in the longer term and
the skills and experience required
to support the Group’s future
growth strategy.
– Reviewed the succession plans in
place for members of the Executive
Committee in the short and long term
(see above for more detail).
Board performance review
– Monitored progress against the agreed
action plan from the 2023 performance
review process (see page 92 for more
detail).
– Considered and agreed the process
for the 2024 performance review of
the Board, committees and individual
directors, to be facilitated by Lintstock
(see page 93 for more detail).
Corporate governance and
other matters
– Considered, and recommended to
the Board, the re-election of all
directors at the AGM.
– Reviewed the committee’s terms
of reference, performance and work
programme for 2025, agreeing minor
changes to the terms of reference
to align with the new UK Corporate
Governance Code.
– Considered, and agreed to, the
committee’s report for inclusion in
the Group’s Integrated report and
financial statements.
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Integrated report and financial statements 2024
95
Board appointments
Mondi has a rigorous and transparent process in place for the recruitment and
appointment of directors, led by the committee. This process was followed in relation
to the appointment of Sucheta Govil as an independent non-executive director in 2024
and is set out below.
Russell Reynolds Associates, an external
search agency and signatory to the
Voluntary Code of Conduct for Executive
Search Firms, was engaged to assist
with the recruitment of an independent
non-executive director in preparation for
the retirement of Dominique Reiniche.
This led to the appointment of Sucheta
Govil with effect from 1 October 2024.
Russell Reynolds Associates does not
provide any services to the Mondi Group
other than Board-level recruitment and
has no current connections with any
individual directors.
On appointment, each non-executive
director receives a letter of appointment
setting out, among other things, their
term of appointment, the expected
time commitment for their duties to
Mondi and details of any committee
memberships. Non-executive directors
are initially appointed for a three-year
term, subject to annual re-election by
shareholders, after which a review is
undertaken to consider renewal of the
term for a further three years.
Diversity and inclusion
Mondi has a well-established
commitment to encouraging and
promoting diversity and inclusion (D&I).
This is reflected in our behaviour and
in our culture and values.
As a global organisation operating in more
than 30 countries, D&I is integral to how
we do business. We are committed to
creating an inclusive working environment
that is fair and non-discriminatory, from
recruitment and people development
to reward and our approach to
talent management.
The Group’s D&I Policy, which was
approved by the Board, and updated
in January 2024, is intended to help
us meet these goals and support the
development of a diverse workforce.
It sets out guidelines for matters such
as recruitment, the use of search firms,
succession and annual reviews. You can
read the full policy on our website.
Key requirements agreed and candidate specification drawn up
taking into account succession planning requirements, gender, ethnic and other
forms of diversity and the key skills and experience required to strengthen
Board and committee capabilities and to ensure they have the competencies
necessary to manage the impacts of the business
External independent search agent engaged
to assist with the selection process
Search conducted and longlist of potential
candidates provided for consideration
which should include male and female candidates from a variety of backgrounds
Shortlist chosen from longlist
for interview by the Chair and at least one other appropriate director
Shortlist reduced to an agreed number of candidates
for interview by other executive and non-executive directors
Nominations Committee considers the preferred candidates
including ability to commit time to the role, confirmation that each individual
would be deemed independent on appointment and the likely views of key
stakeholders, including major shareholders and regulatory bodies and in relation
to financial, sustainability, strategy and risk management experience.
A recommendation is made to the Board
Board considers the recommendation
and whether to proceed with the appointment
Read more about the policy
www.mondigroup.com/en/sustainability/
governance-of-sustainability
Mondi Group
Integrated report and financial statements 2024
96
Corporate governance report continued
Nominations Committee continued
Key elements of the D&I policy include:
At Board and committee level:
– The Board supports the
recommendations and targets outlined
in the FTSE Women Leaders Review,
and is committed to ensuring gender
diversity on the Board and its
committees, and among the Executive
Committee and its direct reports.
– The Board supports the Parker Review
principles in relation to ethnic diversity
on boards and among senior
management.
– For Board appointments, we will, where
possible, engage executive search firms
signed up to the Voluntary Code of
Conduct for Executive Search Firms.
– Search firms will be asked to include
a sufficient number of qualified female
candidates and candidates from a variety
of ethnic backgrounds.
– At least annually, the Nominations
Committee will review succession plans
for the Board, Executive Committee
and other senior managers in light
of Group D&I levels, skills, experience
and diversity requirements.
– Mondi commits to the UN ‘Women
Empowerment Principles’.
At employee level:
– Recruitment activities are aligned with
our D&I Policy and applicable legislation
in jurisdictions in which we operate,
including to promote diversity of all types
and to ensure fair and non-discriminatory
working practices.
– We aim to ensure that a pipeline
of diverse candidates is considered
during succession planning.
– We aim to ensure that the nationalities
of candidates at long and shortlist stages
are appropriately representative of our
international footprint, subject to the
availability of suitable candidates.
– We aim to ensure fair and equal training
and development opportunities.
– We set targets where meaningful
and report on them as appropriate.
While appointments at all levels will
continue to be made based on skill and
ability, it is clear that all forms of diversity
are key to ensuring that we have access to
a broad mix of backgrounds, knowledge
and experience to meet our future business
needs. D&I is central to our succession
planning discussions and is critical to the
long-term success of our business. The
specific process followed for Board-level
appointments can be found on page 96.
In 2024, we reported to the FTSE Women
Leaders Review that as at 31 October 2024,
we had 29% female representation on our
Executive Committee and 31% in the
direct reports to the Executive Committee,
giving a combined total of 30%. As at
31 December 2024, our combined total
was 29% (2023: 28%). While this represents
an increase compared to 31 December
2023, indicating we have increased our
gender diversity, we are not where we
would like to be. We have a diverse pool of
high-calibre employees who have been
identified as having the potential to be
appointed to Executive Committee roles
in the future and every effort is being
made to prepare these employees for
progression within Mondi.
As at 31 December 2024, Mondi was in
compliance with the diversity targets set
out in Listing Rule 6.6.6(R)(9). There were
four female directors, representing 40%
of the composition of the Board, and
two directors from an ethnic minority
background. In October 2024, Sue Clark
was appointed as Senior Independent
Director, replacing Dominique Reiniche
following her retirement from the Board,
consistent with the requirement for one of
the senior positions on the Board to be
held by a woman. Mondi remained in
compliance with the relevant targets
at the date of this report.
More detailed information relating to the
gender and ethnic diversity of Mondi’s
Board and executive management can be
found in the tables on page 98. The data is
provided in the form specified under Listing
Rule 6.6.6(R)(10) and was collected directly
from the individuals concerned. In line with
the Listing Rule definition, ‘executive
management’ in this case consists of
Mondi's Executive Committee members
and the Company Secretary.
During 2024, we also reported to the
Parker Review that we were in compliance
with the target of having at least one ethnic
minority director on the Board. We are fully
supportive of the objectives of the Parker
Review and the ambition to improve the
diversity of businesses. However, after
careful consideration, for a number of
practical reasons set out below, the Board
has decided not to set a target in relation
to the ethnic diversity of our senior
management. We will instead continue to
promote the recruitment and development
of a diverse workforce through
programmes suited to the locations where
we operate.
Mondi is a global organisation, with only
around 50 of our 22,000 people based
in the UK. In light of this, setting a UK-
specific target as requested by the
Parker Review is inappropriate for Mondi.
From a global perspective, the availability of
reliable census data in relation to ethnicity
varies significantly by country, with limited
or no reliable data available in some of our
largest jurisdictions. This means that setting
a realistic global target reflecting the ethnic
make-up of the populations from which we
draw our employees is impractical. Legal
restrictions around the collection of data
relating to the ethnicity of our employees
also exist in a number of the more
significant countries in which we operate.
Mondi Group
Integrated report and financial statements 2024
97
Diversity and inclusion continued
Instead, we continue to focus on promoting
all forms of diversity, including ethnicity,
and inclusiveness in order to build a diverse
pipeline up to senior management and
Board level. There are a number of ongoing
initiatives in this respect, many of which are
implemented at a local level to allow them
to be tailored to specific circumstances
and country requirements. Notably, in
South Africa, we have taken active steps
to meet the requirements of Broad-Based
Black Economic Empowerment (BBBEE),
including establishing transformation
committees in our South African operations
to allow our employees to discuss equity
and training-related issues and ideas.
Read more about our current BBBEE certificate
www.mondigroup.com/investors/corporate-
governance/regulatory-reports
More broadly, a governance framework
around D&I has been established to focus
our efforts. The Group Talent and D&I
function, forming part of the Group HR
function, plays a key role in advancing the
D&I agenda across Mondi's operations.
Mondi's approach to D&I is focused on
embedding good D&I practices across all
stages of the employee life cycle. Standards
include diverse panels for recruitment and
incorporating a diversity element into
leadership training. Mondi also focuses on
community development through our
Curious Community and Employee
Resource Groups, with the aim of creating
cultures that are welcoming and foster
belonging. These groups are sponsored by
senior leaders to promote engagement.
More details can be found on page 39.
In support of our commitment to D&I, a D&I
target is included in the Mondi Action Plan
2030 (MAP2030), and we have committed
to providing purposeful employment for all,
in a diverse and inclusive workplace.
Progress is measured by the Purposeful
Workplace Index and Inclusiveness Index
scores in our global Employee Survey
(each to reach 90% by 2030) and by the
overall percentage of women that we
employ across Mondi (to reach a minimum
of 30% women globally by 2030, against
a 2020 baseline of 21%).
In many of the countries in which we
operate, a cultural shift is required, with
education and a change of mindset
needed, as well as changes to underlying
recruitment processes, to remove the
barriers that discourage women from
entering our workforce.
Gender identity/sex of members of the Board and executive management
as at 31 December 20241
Board
members
Percentage
of the Board
Senior Board
positions
(CEO, CFO,
SID and Chair)
Executive
management
Percentage
of executive
management
Men
6
60%
3
5
63%
Women
4
40%
1
3
38%
Not specified/prefer not to say
—
—%
—
—
—%
Ethnic background of members of the Board and executive management
as at 31 December 20241
Board
members
Percentage
of the Board
Senior Board
positions
(CEO, CFO,
SID and Chair)
Executive
management
Percentage
of executive
management
White British or other White
(including minority White
groups)
7
70%
4
8
100%
Mixed/multiple ethnic groups
—
—%
—
—
—%
Asian/Asian British
1
10%
—
—
—%
Black/African/Caribbean/
Black British
1
10%
—
—
—%
Other ethnic group
—
—%
—
—
—%
Not specified/prefer not to say
1
10%
—
—
—%
1 In line with the Listing Rule definition, ‘executive management’ consists of Mondi's Executive Committee members
and the Company Secretary.
We therefore acknowledge that meeting
the target of 30% women will be
challenging. Read more about our
MAP2030 commitments and our progress
in this regard on page 39.
While it is recognised that there are many
challenges and there is more work to do,
management and the Board are fully
committed to our diversity journey and
we believe that our ambitious goals will
be achieved by working across the
business and engaging our stakeholders
on our 2030 commitments, sharing good
practice, and collaborating both internally
and externally.
Mondi Group
Integrated report and financial statements 2024
98
Corporate governance report continued
Nominations Committee continued
Stephen Young
Chair of the Audit Committee
Following the recent evolution of the approach
to developing and updating the Group's risk map,
the committee remained comfortable that there
are robust processes in place to identify, measure
and manage the Group's risk exposure.
Composition and attendance1
Members throughout the year
Committee member since
Meeting attendance
Stephen Young, Chair2
May 2018
5/5
Svein Richard Brandtzaeg April 2021
5/5
Sue Clark
April 2021
5/5
Anke Groth
April 2023
5/5
Saki Macozoma
May 2022
5/5
1
The maximum number of meetings held during the year that each director could
attend is shown next to the number attended.
2
Stephen Young satisfies the requirement for the committee to have a member
with recent and relevant financial experience given his previous role as Group
Finance Director at Meggitt plc and the other commercial accounting and
finance roles he has held during his career. Stephen is a member of the
Chartered Institute of Management Accountants.
Other regular attendees
– Group CEO
– Group CFO
– Chair and non-executive directors who are not members
of the committee
– Head of Group Finance
– Group Head of Internal Audit
– Representatives from PricewaterhouseCoopers LLP
as external auditor
Dear Shareholder
I am pleased to present this report,
which provides an overview of the areas of
focus for the committee during the year, as
well as its key activities and the framework
within which it operates.
Composition
Following a number of changes in recent
years, the composition of the committee
remained stable in 2024, with the Board
comfortable that the committee members
have the appropriate knowledge, skills and
experience to fulfil the duties delegated
to the committee.
Each member of the committee has
appropriate knowledge and understanding
of financial matters and commercial
expertise gained from industries with
similar manufacturing, engineering
and technology-focused international
operations, to give the committee as
a whole competence relevant to the
sector in which the Group operates.
We continue to keep the composition
of the committee under review to ensure
that, in the long term, it continues to have
the breadth of knowledge it requires.
Areas of focus
The committee’s primary responsibilities
are to oversee the Group’s corporate
financial reporting, including the relationship
with the external auditor, to assist the
Board with any judgements required and
to monitor the effectiveness of the Group's
risk management processes and internal
control framework. These remained the
key focus areas of the committee during
the year.
In line with these responsibilities, the
committee was required to consider
a number of key accounting judgements
and significant estimates during the year,
including in respect of the valuation
of forestry assets and defined benefit
retirement obligations, the acquisition
of the Hinton Pulp mill (Canada) in
February 2024, the classification and
treatment of special items, goodwill
and asset impairment tests and the
assumptions underlying the going
concern assessment.
A more detailed explanation of the
significant issues considered by the
committee in respect of the financial
statements can be found on
pages 102-104.
Mondi Group
Integrated report and financial statements 2024
99
Audit Committee
Areas of focus continued
Alongside this, the committee continued to
monitor the approach to risk management
and the identification, assessment and
mitigation of the Group's principal risks.
This included reviewing and agreeing the
principal risks, considering management's
assessment of the Group's risk appetite
and actual risk exposure in each case
and ensuring the annual review of each
risk by the Board or relevant committee.
Emerging risks and opportunities were also
considered. Following the recent evolution
of the approach to developing and
updating the Group's risk map, the
committee remained comfortable that
there are robust processes in place to
identify, measure and manage the Group's
risk exposure. It did not recommend any
changes to the Group's principal risks
following its review. The committee
recognised focus areas in the coming year,
related to the start-up and commercial
ramp-up phases of the Group's growth
capital projects and the integration of
Schumacher Packaging's Western Europe
Packaging Assets upon completion of the
announced acquisition. These focus areas
represent opportunities for the Group
where the associated risks are managed
and well mitigated, such that the risks have
been included as emerging risks and not as
principal risks. Further details can be found
on page 62.
Cyber security remained a notable focus
for the committee during the year, given
the increasing number and sophistication
of the methods being employed by cyber
attackers. The committee continued
to receive half-yearly updates from the
Chief Information Officer covering matters
including measures taken in response to
the evolving risk landscape, the findings
of internal and external audits of Mondi's
IT infrastructure, the ongoing strengthening
and development of Mondi's cyber
defences and Mondi's approach to the use
of AI. The Group continues to undertake
significant work in relation to cyber security
and further increasing the resilience of the
IT infrastructure and the committee was
pleased to hear that external testing, which
is undertaken regularly, indicated that the
measures we have in place remain effective
and robust in this developing landscape.
More information on Mondi’s approach to
cyber security can be found on page 69.
The committee also spent time
understanding the implications of the
revisions to the UK Corporate Governance
Code in respect of the internal control
framework, due to come into effect in
the coming years. While the committee
is comfortable that Mondi already has
a robust framework in place, with the
committee reviewing the key elements
of this framework on an ongoing basis, it is
acknowledged that non-financial reporting
requirements are increasing and that the
internal control framework will need to
develop to incorporate such reporting.
The EU Corporate Sustainability Reporting
Directive in particular will introduce
extensive non-financial disclosure
requirements. This has been identified,
therefore, as an area of focus from an
internal control perspective by both
the committee and the Sustainable
Development Committee. Work is already
underway in this regard and will continue
into 2025, although it is accepted that the
approach will need to evolve over time.
A more detailed overview of the key
matters considered by the committee
during the year can be found on page 101.
In addition, the Committee noted that the
FRC had carried out a review of Mondi's
Integrated report and financial statements
for the year ended 31 December 2023
as part of its review of compliance with
relevant reporting requirements. While the
review was based solely on the Integrated
report and not on detailed knowledge
of the business, and the FRC does not
provide assurance, the Committee was
pleased that no questions or queries were
raised as a result of the review.
Minimum Standard for Audit
Committees
This report aims to provide the disclosures,
and report on the actions, where applicable,
set out in the Audit Committees and the
External Audit: Minimum Standard
published by the Financial Reporting
Council (FRC).
In particular, this report explains how the
committee has had oversight of, and
assessed, the relationship with the external
auditor and the effectiveness and quality
of the external audit process, and the
approach to managing non-audit services
(see pages 106-107 for more information).
The committee believes it has complied
with the provisions of the Minimum
Standard during 2024, with the exception
of those relating to the tendering of the
external audit, which were not applicable
during the year. The committee intends to
comply with these provisions when it does
undertake a tender process.
Committee effectiveness
The committee’s performance and
effectiveness were reviewed as part of the
Board performance review undertaken
during the year, more details of which can
be found on page 93. I am pleased to
confirm that the committee is seen to be
operating effectively and fulfilling the duties
delegated to it by the Board.
Stephen Young
Chair, Audit Committee
Mondi Group
Integrated report and financial statements 2024
100
Corporate governance report continued
Audit Committee continued
Audit Committee activity
Set out below are some of the key matters addressed by this committee.
Financial reporting
– Reviewed the integrity of all financial
announcements with input provided
by the Group CFO, the Head of
Group Finance and PwC as
appropriate.
– Reviewed the Mondi Group
Integrated report and financial
statements for tone and consistency,
agreed the application of critical
accounting policies and key
judgements, and considered whether
the report as a whole was fair,
balanced and understandable
(see page 105 for more information).
– Considered the accounting
implications of the acquisition of
the Hinton Pulp mill (Canada) (see
page 103 for more information).
– Reviewed and agreed the accounting
policies to be applied for the year
ending 31 December 2024.
– Reviewed new accounting
pronouncements and any impact
for the Group’s financial reporting.
– Reviewed the going concern basis
of accounting and the longer-term
viability statement (see pages 70-71
for more information).
External audit matters
– Recommended to the Board that the
appointment of PwC for the 2024
audit be put to shareholders at the
Annual General Meeting.
– Reviewed the independence,
objectivity and effectiveness of PwC
and the quality of the audit process
(see page 106 for more information).
– Reviewed and approved the external
audit plan, taking account of the
scope, materiality and audit risks
and agreed the audit fees.
– Reviewed and agreed the
engagement and representation
letters.
– Held two meetings with PwC without
management present; the committee
Chair also engaged regularly with
the lead audit partner.
Risk management and
internal controls
– Undertook a detailed review of the
Group’s risk management policy
and plan, risk appetite levels and
principal risks, ultimately agreeing
that no changes were required and
recommending to the Board as such.
Emerging risks and opportunities
were also considered, with a new
risk added and other appropriate
adjustments made. Further
information can be found on page 62.
– Undertook a more in-depth review
of a number of the most significant
Group risks, with presentations
from relevant members of senior
management, considering the level
of risk and the monitoring and
mitigation measures in place.
– Received half-yearly presentations
on IT risk management and cyber
security, focusing in particular on
key measures taken to continuously
strengthen Mondi’s protection
against IT risk and cyber-attacks
and internal and external testing
undertaken to assess the robustness
of the IT infrastructure.
– Undertook a review of Mondi's
internal control environment,
concluding that it continues to
operate effectively.
Internal audit matters
– Reviewed and agreed the internal
audit plan, confirming the focus on
key risk areas and adequate cover
of all material operations.
– Received reports from the Group
Head of Internal Audit (see page 107
for more information).
– Undertook a review of the
effectiveness of the Internal Audit
function (see page 107 for more
information).
– Reviewed summaries of messages
from SpeakOut, providing insight into
the culture of the Group and issues
of particular concern to stakeholders.
– Undertook the annual review of the
Internal Audit Charter, which governs
the Group Internal Audit function and
confirms the function's intention to
adhere to the standards set by the
Institute of Internal Auditors. No
changes to the Charter were
proposed following the review.
– Held two meetings with the Group
Head of Internal Audit without
management present.
Governance and other
– Monitored the continued
implementation of those elements
of the Group’s Code of Business
Ethics reserved for review by
the committee.
– Undertook the annual review of
Mondi's Business Integrity Policy,
which, among other things, outlines
Mondi's zero tolerance approach to
bribery and corruption.
– Reviewed the compliance risks faced
by the Group, including in relation
to competition compliance.
– Considered the implications of the
changes to the UK Corporate
Governance Code, particularly in
respect of internal controls, leading to a
focus by management on the controls
relating to non-financial reporting.
– Reviewed the committee’s terms
of reference, performance and
work programme, with changes made
to the terms of reference to align
with the new UK Corporate
Governance Code.
Mondi Group
Integrated report and financial statements 2024
101
Internal control
The Group’s internal control and risk management framework, embedded in all key operations, is designed to address all the significant
strategic, financial, operational and compliance risks that could undermine our ability to achieve our business objectives in the future and
is managed within risk tolerance levels defined by the Board. In accordance with the provisions of the UK Corporate Governance Code,
the Group has established an internal control environment to protect the business from principal risks that have been identified.
Management is responsible for establishing and maintaining adequate internal controls over financial reporting, while the Board is
responsible for ensuring the effectiveness of these controls. The Board monitors and reviews the effectiveness of the risk management
and internal control framework at least annually, covering all material controls, including financial, operational, reporting and compliance
controls. Full details of Mondi’s internal control and risk management framework can be found in the Strategic report on pages 60-61.
The committee has reviewed the risk management process and the Group’s system of internal controls. The committee considers that
the system of internal controls operated effectively throughout the financial year and up to the date on which the financial statements
were signed.
Significant issues related to the financial statements
The committee has considered each of the following items based on discussions with, and submissions by, management and satisfied
itself as to the accounting treatment and presentation thereof. These significant items were discussed with the external auditors
during the planning stage and on completion of the audit.
The key considerations in relation to the 2024 financial statements were:
Matter considered
Action
Special items are those financial items which the Group considers
should be separately disclosed on the face of the consolidated
income statement to assist in understanding the underlying
financial performance achieved by the Group on a basis that
is comparable from year to year. Special items are generally
material, non-recurring items that exceed €10 million.
Subsequent adjustments to items previously reported as
special items continue to be reflected as special items in
future periods even if they do not exceed the quantitative
reporting threshold.
The total special items before tax charge for the year was €150
million (2023: €27 million), consisting of closure costs for a kraft
paper mill and two paper bags plants and transaction-related
costs for planned acquisitions. Details of the special items are
included in note 3 of the consolidated financial statements.
The committee has:
– critically reviewed the items presented by management as
being special to ensure that the items are in line with the
Group’s accounting policy;
– considered both the quantification and presentation of the
special item;
– reviewed the adequacy of the description of the special item
in the consolidated financial statements and the Strategic
report; and
– considered whether any significant transactions not treated as
a special item were appropriately disclosed in the consolidated
financial statements and the Strategic report.
The consolidated financial statements have been prepared on a
going concern basis. The directors have made this assessment
based on the Group’s financial position at 31 December 2024.
The directors have reviewed the Group’s budget and considered
the assumptions contained in the budget, including consideration
of the principal risks which may impact the Group’s performance
in the 18 months following the balance sheet date and
considerations of the period immediately thereafter.
Details on the going concern assumption are discussed in the
Strategic report within ‘Viability statement’ under the heading
‘Going concern’ on page 71.
The committee has:
– evaluated the assessment of going concern (see page 71 for
further information);
– considered the Group’s financial position, cash flows, liquidity
position and borrowing facilities as described in the
consolidated financial statements;
– reviewed the Group’s budget and challenged management's
judgement and assumptions contained in the budget, including
taking into account the Group’s strategy and principal risks;
– considered the results of the downside scenario assessments,
including the appropriateness of the assumptions used in the
severe but plausible downside scenarios;
– satisfied itself that the Group’s funding needs and the
assumptions on the Group’s ability to refinance facilities during
the assessment period are considered appropriately; and
– reviewed the going concern basis of accounting and the
longer-term viability statement.
Mondi Group
Integrated report and financial statements 2024
102
Corporate governance report continued
Audit Committee continued
On 5 February 2024, the Group announced the completion
of the acquisition of Hinton Pulp mill in Alberta (Canada) from
West Fraser Timber Co. Ltd for an agreed consideration of
USD 5 million, before working capital adjustments. The purchase
price allocation resulted in a net gain on purchase of €9 million,
net of transaction-related costs, as the fair value of net assets
acquired was in excess of the consideration paid. The gain on
purchase is attributable to the mill’s loss-making operations at the
time of the transaction and the need for investment to improve
productivity and sustainability performance.
Details of the fair value of assets acquired and liabilities assumed
as a result of the business combination are included in note 26
of the consolidated financial statements.
The committee has:
– considered reports from management in relation to the acquisition;
– evaluated management reports of the purchase price allocation
which were completed with the support of independent
specialists; and
– satisfied itself that the fair value of assets acquired and liabilities
assumed in the business combination, including the related gain
on purchase, is initially measured and recognised appropriately
in accordance with the Group’s accounting policy.
At 31 December 2024, the Group recognised property, plant and
equipment of €5,160 million, intangible assets of €70 million and
goodwill of €767 million as non-current assets on the
consolidated statement of financial position.
As set out in the Group’s accounting policies, the goodwill is
tested for impairment annually and property, plant and equipment
and intangible assets whenever there is any indication that those
assets are impaired.
Details of goodwill impairment tests and impairments of property,
plant and equipment are included in notes 3, 11 and 13 of the
consolidated financial statements.
The committee has:
– considered a report from management describing potential
impairment indicators for tangible and intangible assets and
the outcomes of related impairment tests where performed;
– considered a report from management on the outcomes
of the annual goodwill impairment test;
– reviewed and challenged management's underlying assumptions
and compared them with the Group’s three-year 2025-2027
plan (budget period) and the current macroeconomic
environment;
– considered the sensitivities underlying the primary assumptions
to determine the consequences that reasonably possible
changes in such assumptions may have on the recoverable
amount of the underlying assets; and
– satisfied itself that no impairments related to goodwill or
intangible assets were required and impairments of property,
plant and equipment were justified.
Significant estimation is required in determining the assumptions
to be applied for the valuation of the Group’s forestry assets
and retirement benefit obligations. Such assumptions are based,
as far as possible, on observable market data and, in the case
of the retirement benefit obligations, on the input and advice
of actuaries.
Details are included in the consolidated financial statements
(forestry assets in note 15 and retirement benefits in note 25).
The committee has:
– considered reports from management;
– reviewed and challenged management's assumptions applied in
the valuation of the forestry assets and retirement benefits;
– considered the basis on which these assumptions were
determined, and evaluated the assumptions by comparing
them with prior years and considering market developments
during 2024; and
– satisfied itself that the assumptions, and the changes to
those assumptions when compared with the year ended
31 December 2023, were appropriate.
Matter considered
Action
Mondi Group
Integrated report and financial statements 2024
103
Internal control continued
Matter considered
Action
The Group has operations in a number of countries, each with
a different tax system.
The Group is regularly subject to routine tax audits and provisions
are made based on the tax laws in the relevant country and the
expected outcomes of any negotiations or settlements.
The Group’s recognition of deferred tax assets, relating to future
utilisation of accumulated tax losses, is dependent on the future
profitability and performance of the underlying businesses.
The committee has:
– received regular reports from management about new
legislative developments that may impact the Group’s
tax positions;
– considered reports from management outlining the Group’s
most significant tax exposures, including ongoing tax audits
and litigation, and has reviewed the related tax provisions
recognised by management, satisfying itself these are
appropriate and the risk of new unexpected exposures
arising is low; and
– considered a report from management outlining the key
assumptions relating to the recognition of deferred tax assets
and satisfied itself that the assumptions made are reasonable
and consistent from year to year.
Understanding of the Group’s risks and implications related
to climate change is continuously being enhanced. While the
Group’s assessments still reflect that these may not be severe
in the short-term, it is believed that climate change risks are likely
to have a medium- and long-term impact on the business.
The financial statement disclosures consider the impact of
climate change, notably in the estimates used to calculate the
fair value of our forestry assets (see note 1 of the consolidated
financial statements). The Group continues to assess accounting
policies, judgements and estimates to consider the impact
of climate change.
The committee has:
– participated in overseeing the Group’s approach to
sustainability;
– received regular reports from management about climate
change and related legislative developments that may impact
the Group’s disclosure;
– reviewed the Integrated report (including the TCFD section)
and the consolidated financial statements for consistency with
respect to climate change risks;
– reviewed the assumptions applied in the valuation of the
forestry assets;
– considered accounting policies, judgements and estimates
on the basis of expected climate change impacts; and
– satisfied itself that the assumptions, and the changes
to those assumptions when compared with the year
ended 31 December 2023, were appropriate.
Mondi Group
Integrated report and financial statements 2024
104
Corporate governance report continued
Audit Committee continued
Fair, balanced and
understandable
In line with the committee’s responsibility
for ensuring there are robust financial
reporting procedures and internal controls
in place, and the UK Corporate Governance
Code requirement for the committee to
advise the Board in relation to the annual
report and accounts, in particular whether,
taken as a whole, it is fair, balanced and
understandable, the committee undertook
an assessment of the Integrated report
and financial statements 2024. This
incorporated the work undertaken by
the committee throughout the year to
monitor financial reporting.
Oversight throughout the year
– Review of applicable accounting policies and pronouncements and their application
– Review of regular financial results and announcements
– Reports from the Group CFO, the Head of Group Finance and PwC
– Reports from the Group Head of Internal Audit
Review included
– Provision of an outline plan including content and structure, design concepts and timetable
– Consideration of regulatory and governance requirements for reporting
– Review of detailed reports from the Group CFO, the Head of Group Finance and PwC
providing the opportunity for debate and challenge
– Summaries of areas where management judgements or significant accounting estimates
had been made
– Consideration of going concern and longer-term viability
– Separate meetings with PwC without management present
Review confirmed
– Well-documented planning and procedures for the preparation of the report
– Collaborative approach between all parties required to contribute to the report
– Basis of preparation consistent with financial reporting throughout the year
– All significant issues had been considered
– Messaging was consistent, particularly the narrative reflecting the financials
Conclusion
– After completion of the detailed review, the committee was satisfied that:
– taken as a whole, the Group’s Integrated report and financial statements 2024 was fair,
balanced and understandable;
– the report accurately reflected the information shareholders would require in order
to assess the Group’s position and performance, business model and strategy; and
– the use of Alternative Performance Measures contained in the report assists in presenting
a fair review of the Group’s business.
Recommendation
– The committee reported its findings to the Board, and recommended its conclusions to the
Board for approval
Mondi Group
Integrated report and financial statements 2024
105
External audit
PricewaterhouseCoopers LLP (PwC) was
first appointed as auditor by shareholders
at the Annual General Meeting in May 2017
following a tender process. The 2024 audit
was PwC’s eighth for Mondi and Andrew
Hammond's first as lead audit partner.
Andrew replaced Simon Morley following
completion of Simon's maximum tenure.
Following an assessment of the
independence, objectivity and
effectiveness of the external auditor,
details of which can be found below,
the committee has concluded that it
remains satisfied with the effectiveness
and quality of the audit work.
However, we are required to
undertake a mandatory audit tender
process after 10 years, so in respect
of the 31 December 2027 year end at
the latest.
After considering a number of factors,
including the time required to transition
non-audit services away from a new audit
firm should one be appointed, the
committee has agreed that a tender
process will be undertaken during 2025.
The committee confirms its compliance for
the financial year ended 31 December 2024
with the provisions of The Statutory Audit
Services for Large Companies Market
Investigation (Mandatory Use of
Competitive Tender Processes and Audit
Committee Responsibilities) Order 2014.
External audit independence, objectivity and effectiveness
A formal framework for the assessment of the effectiveness and quality of the external audit process has been adopted by the
committee, covering all aspects of the audit service provided by PwC. While part of the assessment is managed annually, it is
treated as an ongoing review throughout the cycle.
Evaluation focus
– Robustness of audit process.
– Audit quality, including quality
controls.
– Audit partners and team, including
skills, character and knowledge.
– Independence and objectivity.
– Formal reporting.
– Met with PwC twice during
the year without executive
management present.
Management:
– Feedback from engagement with the
Group CFO, Group finance team and
Group Head of Internal Audit.
– Feedback from questionnaires issued
at corporate and business unit levels
to those personnel involved with
the audit.
PwC:
– Provided the committee with
confirmation that it operates in
accordance with the ethical standards
required of audit firms.
– Confirmed the policies and
procedures it has in place to maintain
its independence.
Regulators:
– The UK Financial Reporting Council’s
(FRC) 2023/24 report on Audit
Quality Inspections included a review
of audits carried out by PwC.
– PwC demonstrated a strong
commitment to audit quality and a
good understanding of the Group
and its internal control systems, and
had identified and focused on the
areas of greatest financial reporting
risk.
– PwC’s reporting to the committee
was clear, open and thorough.
– It was confirmed that, through
the review of management papers
and analyses and the discussion
of key matters with management
and the auditor, there had been
an appropriate level of challenge
during the course of the audit. The
external auditor and the Audit
Committee challenged
management’s judgements and
assumptions on matters including
critical accounting judgements
and key sources of estimation
uncertainty; impairment of property,
plant and equipment and goodwill;
and assumptions underlying the
going concern basis of accounting
in preparing the financial statements
and the viability statement. Ultimately,
the external auditor and Audit
Committee confirmed they were
comfortable with these judgements
and assumptions.
Key inputs
Audit Committee:
– Monitored audit performance
throughout the year.
– Reviewed and agreed the audit plan.
The Committee was comfortable
with the robustness of the plan and
did not ask for any additional specific
matters to be reviewed by the
auditor.
– Reviewed the quality of reporting to
the committee, the level of challenge
and professional scepticism and the
understanding demonstrated by PwC
of the business of the Group.
– Reviewed the quality of the audit
team, technical skills and experience
and the allocation of resources
during the audit.
– Considered the interaction with
management and the level of
challenge.
– Regular meetings held between
the Chair of the committee and
the audit engagement partner.
– Reviewed feedback from committee
members.
– Considered the effectiveness of
Mondi’s policies and procedures for
maintaining auditor independence.
Key outputs
– The quality of the audit partners
and team was confirmed, with
no material issues raised in the
feedback received.
– The audit had been well planned
and delivered, with work completed
on schedule and management
comfortable that any key findings
had been raised appropriately, as
well as active engagement on
misstatements and appropriate
judgements on materiality.
Conclusion
The committee, having considered
all relevant matters, has concluded that
it is satisfied that auditor independence,
objectivity and effectiveness have
been maintained.
Mondi Group
Integrated report and financial statements 2024
106
Corporate governance report continued
Audit Committee continued
Non-audit services
A policy is in place that governs the
provision of non-audit services provided
by PwC to Mondi, setting out those services
that are permissible and the process to be
followed to obtain approval for such services.
All such services must be approved – there
are no pre-approvals in place. Authority is
delegated by the committee to the Chair
of the committee to approve such services.
For all non-audit services, the business
must submit a formal request setting
out the objectives, scope of work, likely
fee level and rationale for requiring the
work to be carried out by the Group’s
external auditor.
The committee monitors compliance
with the policy and the monetary cap
on non-audit fees, receiving reports at
each meeting detailing all approved
non-audit services.
Total fees for non-audit services amounted
to €0.8 million, representing 12.7% of the
audit fee, with the vast majority of the
non-audit fees incurred relating to
the half-year review, services provided
in relation to the aborted all-share
combination with DS Smith and other
audit-related assurance services.
Internal audit
Mondi’s Internal Audit function forms
an integral part of Mondi’s governance
and risk management and internal control
frameworks. The primary purpose of
the Internal Audit function is to help the
Board and executive management to protect
the assets, reputation and sustainability of
the organisation and to manage and mitigate
its risks effectively. This includes assessing
whether all significant risks are identified
and appropriately reported by management
to the Board and executive management,
and whether they are adequately controlled.
The Audit Committee has primary
responsibility for monitoring and reviewing
the scope and effectiveness of the Group’s
Internal Audit function. The Group Head
of Internal Audit has direct access and
responsibility to the committee, as well
as regular access to Mondi’s executive
management. The Audit Committee
meets with the Group Head of Internal
Audit without management present at
least twice each year.
An Internal Audit Charter, approved by
the committee, is in place. The charter
sets out the purpose, remit and authority
of the Internal Audit function. Each year,
the committee considers and approves
the internal audit plan, which is designed
to focus on the Group’s key risks to
ensure that they are managed effectively
within the context of our business
objectives and that appropriate internal
controls are in place.
The committee ensures that all material
operations and relevant business
processes are covered and that there
is an appropriate degree of financial
and geographical coverage. Every Mondi
operation is visited at least once every five
years, with all major plants audited annually.
Reports are given at each committee
meeting, providing an update on activities,
resourcing levels, progress against plan,
results from audits carried out and
management’s response to address
any areas highlighted for improvement.
The committee will consider deviations
from plan as the need arises during the
year, usually in response to a material
acquisition or change in the Group’s risk
profile, highlighted through audit reports
and through matters raised via the
anonymous whistleblowing and grievance
platform, SpeakOut.
The effectiveness of the Group's Internal
Audit function is kept under close
review by the committee, with a formal
review undertaken annually. The last
comprehensive, external review of the
Internal Audit function was carried out in
2020 by Independent Audit (a consultancy
firm specialising in board evaluations
and effectiveness reviews). The overall
conclusions in respect of the effectiveness
of the Internal Audit function, its leadership
and its relationship with the Audit
Committee were positive, and all
recommendations were addressed.
An internal review was undertaken in 2024.
The committee has concluded following
the review that the Internal Audit function
remains effective in carrying out its remit.
Mondi Group
Integrated report and financial statements 2024
107
Dame Angela Strank
Chair of the Sustainable Development Committee
The committee continued to review progress
against our MAP2030 commitments during the
year, with each area reviewed in detail by the
committee on a rotational basis.
Composition and attendance1
Members throughout the year
Committee member since
Meeting attendance
Dame Angela Strank,
Chair2
April 2021
7/7
Svein Richard Brandtzaeg April 2021
7/7
Andrew King
May 2020
7/7
Dominique Reiniche,
Chair3
May 2017
5/5
Stephen Young
May 2018
7/7
1
The maximum number of scheduled meetings held during the year that each
director could attend is shown next to the number attended.
2
Dame Angela Strank was appointed Chair of the committee on 1 October 2024
following Dominique Reiniche's retirement from the Board on 30 September
2024.
3 Dominique Reiniche retired from the Board and the committee on 30 September
2024. Dominique attended all meetings prior to her retirement.
Other regular attendees
– Group CFO
– Chair and non-executive directors who are not members
of the committee
– Group Technical & Sustainability Director
– Group Head of Sustainable Development
– Group Head of Safety & Health
Dear Shareholder
I am pleased to present this, my first report
as Chair of the Sustainable Development
Committee (the committee). I succeeded
Dominique Reiniche following her
retirement from the Board at the end
of September.
This report provides an overview of the
areas of focus for the committee during
the year, as well as its key activities and
the framework within which it operates.
While the Board as a whole has
responsibility for overseeing Mondi’s
approach to sustainability, the committee,
on behalf of the Board, oversees
and monitors Mondi’s sustainable
development policies and practices,
and progress against our sustainability
commitments and targets. It provides
guidance in relation to sustainability
matters, including climate change-related
issues and reviewing and approving
updates to the Group’s framework
of sustainability policies and strategies,
ensuring they are aligned with global
best practice.
Our sustainability policies include: Safety
and Occupational Health; Labour and
Human Rights; Sustainable Forestry; Energy
and Climate Change; Environment; Supply
Chain and Responsible Procurement;
Product Stewardship; Communities; and
Sustainable Development Governance.
A summary report from the directors
on the Group’s sustainability practices
is set out on pages 30-59.
Areas of focus
The safety of our employees
and contractors is a priority for the
committee, and safety performance
continues to be a focus at every meeting,
ensuring that our high standards are
maintained. Despite this, we were deeply
saddened by the tragic fatality at our
Merebank mill (South Africa) in August.
Unfortunately we also experienced three
life-altering injuries at our operations
during the year. Full investigations were
undertaken and the committee was kept
informed throughout. We understand
the significant impact that such incidents
have on those involved and on their
families, friends and colleagues, and every
effort is made to understand the lessons
that can be learnt and to minimise the risk
of a reoccurrence. It was extremely
important for the committee to spend time
understanding these events in detail, and
the underlying causes and actions taken in
response. Further details of the actions being
undertaken can be found on page 40.
Mondi Group
Integrated report and financial statements 2024
108
Corporate governance report continued
Sustainable Development Committee
We continue to work hard to embed
proactively our safety culture across the
Group, with a particular focus on the
Social Psychology of Risk, addressing the
psychological and cultural elements that
can pose a risk to safety. A bespoke
programme to train leaders and safety
professionals was conducted during the
year, reinforcing our belief that culture and
mindset are critical to improving our safety
record. Sue Clark, in her previous role as
non-executive director responsible for
engaging with employees, joined one
of these sessions at our Štětí mill (Czech
Republic) to gain further insight and
learning. Her subsequent feedback to the
committee confirmed our view that there is
a strong commitment to safety from local
management, and that our people have
the confidence to intervene and stop work
in the event of seeing an unsafe situation.
More information on our approach to
safety can be found on page 40. The safety
of our people, both staff and contractors,
will remain at the top of our agenda
in 2025.
The committee continued to review
progress against our MAP2030
commitments during the year, with each
area reviewed in detail by the committee
on a rotational basis. The committee was
particularly focused on the actions that
need to be taken now and in the coming
years in order to achieve our commitments
and targets, and to understand the key
challenges. In particular, in considering the
commitment to making 100% of Mondi's
packaging and paper solutions reusable,
recyclable or compostable by 2025, the
focus was on the actions being taken in
the Flexible Packaging business unit, given
100% of the Corrugated Packaging and
Uncoated Fine Paper portfolios are already
recyclable. While sustainable alternatives
are in place, identified or undergoing
development for most products, there
remains continued complexity in managing
the transition to a circular economy. More
information can be found on pages 33-36.
The committee also paid particular
attention to forthcoming capital investment
projects and their important contribution
towards achieving our targeted reduction
in greenhouse gas (GHG) emissions.
The committee was pleased to see the
actions being taken and progress made
during 2024 towards achieving Net-Zero
but acknowledged the extent of the work
still required, as well as the likely need
to consider trade-offs during future
investment decisions. More information
can be found on pages 41-45.
The committee also reviewed sustainability
risks and opportunities. Climate change
mitigation remained a priority, and
associated risks and opportunities were
considered in detail. In particular, the
committee spent time understanding how
Mondi assesses and responds to water risk,
including efforts to reduce water use.
Further information, including Mondi’s
disclosures in line with the
recommendations of the Task Force
on Climate-Related Financial Disclosures
(TCFD), can be found on pages 52-59.
Discussions in respect of people-related
targets continued to form a key part of the
committee's agenda in 2024, focusing on
our progress in respect of diversity and
inclusion, and in particular on the target
of 30% women across the organisation by
2030. The committee acknowledged that
meeting the target of 30% women will be
challenging, and that local factors can play
a role and impact the performance against
our targets; however, there were examples
of initiatives that resulted in material
progress and the committee was pleased
to see that learnings from these initiatives
are being shared elsewhere in the Group.
The focus from management on raising
awareness, creating processes and
opportunities, and developing the female
talent pipeline is clear, but local ownership
and leadership at all levels is critical to be
successful. Further information on our
diversity and inclusion initiatives can
be found on pages 39 and 96-98.
After it was identified as a focus area in our
2023 Employee Survey, the committee held
further discussions in relation to the
psychological safety of our employees,
including the actions taken in response.
These actions included a pulse survey
designed to draw further insights from
employees on the factors they felt might
deter them from speaking openly and
honestly. More information can be found on
page 39.
All these discussions took place against
a backdrop of increasing regulation in the
sustainability field, from the Packaging and
Packaging Waste Regulation, and the
EU Deforestation Regulation, to the
EU Corporate Sustainability Reporting
Directive. The committee was provided
with regular updates on legislative
developments throughout the year, with
a focus on the impact for Mondi. These
updates will continue into the coming year,
with the committee undertaking deep dives
into relevant topics as necessary.
A more detailed overview of the matters
considered by the committee during
the year can be found on page 110.
Committee effectiveness
The committee’s performance and
effectiveness were reviewed as part
of the Board performance review
undertaken during the year, more details
of which can be found on page 93. I am
pleased to confirm that the committee
is seen to be operating effectively
and fulfilling the duties delegated to
it by the Board.
Dame Angela Strank
Chair, Sustainable
Development Committee
Mondi Group
Integrated report and financial statements 2024
109
Sustainable Development Committee activity
Set out below are some of the key matters addressed by this committee.
Safety performance and
serious incidents
– Received detailed reports on the fatality
at the Merebank mill (South Africa) and
the life-altering injuries, and follow-up
reports on the outcomes of the
investigations into these incidents.
– Received regular reports on safety
performance at Group and business
unit level, including individual mill
performance, classification of incidents
and peer comparisons, giving the
committee insight into the safety culture,
and into specific sites that required
further focus. Annual maintenance shuts,
involving thousands of contractors on
site, remained a key focus.
– Received updates on the Social
Psychology of Risk, with a continued
focus on bringing the unconscious
behaviours to the conscious, and the
ways in which culture can be influenced
to promote safe behaviour in the
workplace.
– Considered and agreed the safety
milestones and leading and lagging
indicators for the next reporting period.
Product stewardship
– Received an update on the Group’s
approach to product stewardship
practices in the context of the MAP2030
Circular Driven Solutions commitments,
focusing on the tools to assess the impact
of Mondi’s products and the partnerships
designed to support the achievement
of Mondi’s commitments. The committee
spent time understanding the challenges
and opportunities that we face, along with
our customers and suppliers, to transition
to a circular economy.
– Reviewed the developing regulatory
landscape from a sustainability
perspective, focusing on those regulations
likely to have the greatest impact on
Mondi and its stakeholders.
People development and diversity
– Received an update on the Group’s
approach to people management
and diversity in the context of the
MAP2030 Created by Empowered
People commitments.
– Reviewed the performance against
MAP2030 KPIs and diversity statistics
and initiatives for the Group, discussing,
in particular, actions to continue to make
further progress against the target of
employing 30% women by 2030.
– Following on from the 2023 Employee
Survey, the committee reviewed actions
and progress made against the areas
highlighted as needing improvement,
both on a global and local level.
– Received an overview of risk associated
with the attraction and retention of key
skills and talent, and the key areas of
focus needed to build an effective
succession plan.
Environmental performance and
climate change
– Reviewed climate-related risks and
opportunities and the potential impacts
on the business in line with the TCFD
recommendations (see pages 52-59
for more information).
– Reviewed performance against each
of the environmental key performance
indicators and commitments, including
progress in reducing GHG emissions
in line with science-based targets.
– Reviewed the Group’s performance,
progress and key contributing factors
needed to meet the MAP2030
milestones.
– Discussed and agreed the sustainability
KPIs for inclusion in the 2025 cash
bonus (see page 116 for more details).
Nature and responsible wood
sourcing
– Received an update on forestry-related
sustainability topics, focusing in
particular on the MAP2030 forestry
and nature-related commitments and
targets and progress to date.
– Reviewed focus areas and actions being
taken to promote resilient forests in
Europe and South Africa.
Responsible procurement
– Reviewed the development of Mondi’s
Responsible Procurement process,
including the progress on rolling out
and scaling up the supplier screening
process designed to identify and
manage high-risk suppliers.
– Received an overview of supplier
engagement activities, particularly
focused on the work being undertaken
to increase awareness around GHG
emissions and reduction plans, as well
as the data Mondi requires in this
respect to support progress on our
Scope 3 GHG target.
Stakeholder relationships
– Reviewed the Group’s relationships
and engagement with key stakeholders,
including governments and
non-governmental organisations,
focusing on the partnerships that
will be required to support Mondi in
achieving MAP2030 and the primary
areas for engagement.
– Reviewed progress on actions arising
from Stakeholder Engagement
Conversations (following the transition
from the previous Socio-Economic
Assessment Toolbox (SEAT) process),
which covered topics tailored to site-
specific issues.
– Reviewed Mondi’s ESG ratings in order
to understand which ratings are most
important to our stakeholders, how we
perform and where there is potential
for improvement.
Sustainable development
governance and risks
– Reviewed the material sustainability
issues, risks and opportunities and an
update on the progress made to
prepare for CSRD reporting following
the double materiality assessment
undertaken last year.
– Reviewed and approved the annual
Sustainable Development report.
– Reviewed and approved the Group’s
Human Trafficking and Modern Slavery
Statement, giving consideration to
the actions being taken to minimise
such risks in our organisation and
supply chain.
– Received an update on the MAP2030
human rights commitment, which
confirmed that no human rights adverse
impacts or severe risks had been
reported by the operations through
the risk identification process. Areas
for improvement were reviewed and
action plans presented.
– Reviewed Group sustainable
development policies and approved
amendments to reflect best practice.
– Reviewed the committee’s terms of
reference and performance, agreeing
that no changes to the terms of
reference were required.
– Considered and agreed the committee’s
annual work programme.
Mondi Group
Integrated report and financial statements 2024
110
Corporate governance report continued
Sustainable Development Committee continued
Sue Clark
Chair of the Remuneration Committee
The remuneration strategy is intended to be
simple, fair and transparent, leading to reward
outcomes that are reflective of business
performance and the wider stakeholder
experience.
Composition and attendance
Members throughout the year
Committee member since
Meeting attendance1
Sue Clark, Chair2
April 2021
5/5
Sucheta Govil3
October 2024
0/1
Dominique Reiniche4
October 2015
4/4
Dame Angela Strank2
April 2021
5/5
Philip Yea
April 2020
5/5
1
The maximum number of meetings held during the year that each director could
attend is shown next to the number attended.
2
Sue Clark was appointed as Chair of the committee, following Dame Angela
Strank's appointment as Chair of the Sustainable Development Committee on
1 October 2024.
3 Sucheta Govil joined the committee on 1 October 2024. Sucheta was unable
to attend the one meeting of the committee held following her appointment due
to a commitment made prior to her appointment.
4 Dominique Reiniche retired from the Board and the committee on 30 September
2024. Dominique attended all meetings up to her retirement.
Other regular attendees
– Non-executive directors who are not members of the committee
– Group CEO
– Chief People Officer
– Group Head of Reward
– Head of Executive Reward
– External remuneration consultant
Dear Shareholder
I am pleased to present this Directors'
remuneration report, my first as Chair
of the Remuneration Committee
(the committee). I succeeded Dame Angela
Strank in October 2024 and would like to
thank Angela for her leadership of the
committee. I am sure she will continue to
provide a valuable contribution as a
committee member.
Compliance statement
This report has been prepared on behalf
of, and has been approved by, the Board. It
complies with the Large and Medium-sized
Companies and Groups (Accounts and
Reports) Regulations 2008 (as amended)
(the Regulations), the UK Corporate
Governance Code and the UK Listing
Rules, and takes into account the Directors'
Remuneration Reporting Guidance and the
relevant policies of shareholder
representative bodies.
In accordance with the UK Companies Act,
shareholders will be asked to vote on the
following resolutions at the 2025 Annual
General Meeting (AGM):
– an advisory vote on the Directors'
remuneration report excluding the
Directors' Remuneration Policy (DRP),
which provides details of the
remuneration earned by directors
for performance in the year ended
31 December 2024, and how the DRP
will be implemented for 2025; and
– binding votes to approve the rules of
Mondi plc's Bonus Share Plan 2025 and
Long-Term Incentive Plan 2025 in
advance of the expiry of the current
rules.
The committee continues to focus
on performance driven reward that
aligns the remuneration of our executives
to the interests of our shareholders. We are
confident that the DRP and our approach
to its implementation will continue to
support Mondi’s success, incentivising the
management team to deliver long-term
sustainable shareholder value.
Mondi Group
Integrated report and financial statements 2024
111
Remuneration report
Statement from the Chair of the Remuneration Committee
Performance in 2024
Context of remuneration
In assessing remuneration outcomes
for 2024, the committee considered the
ongoing investment in our business to
deliver long-term sustainable growth in the
context of ongoing difficult trading
conditions, soft demand and a challenging
pricing environment. Remuneration
outcomes were also considered against
the background of the wider stakeholder
experience and the broader financial,
operating and strategic performance.
Our remuneration structure is designed to
incentivise our people through-cycle while
underpinning our financial and sustainability
KPIs including safety.
Reflecting the Board's confidence in
Mondi’s future, a final dividend of 46.67
euro cents per share has been
recommended. The final dividend, together
with the interim dividend, amount to a total
ordinary dividend for the year of 70.00
euro cents per share. This is in addition to
the special dividend that was paid in
February 2024 in respect of the proceeds
from the sale of the Russian operations.
Further details on performance in 2024
are set out on page 2.
Remuneration outcomes
aligned to performance
Annual bonus
The majority (60%) of our annual bonus is
assessed against key financial measures
of EBITDA and ROCE. The remaining
bonus performance is assessed against
sustainability (20%) and personal (20%)
targets, reflecting the importance of these
to Mondi.
– Performance assessed against adjusted
EBITDA resulted in 15.9% out of a
maximum of 35%.
– Performance assessed against adjusted
ROCE resulted in 10.8% out of a
maximum of 25%.
– The reduction of specific Scope 1 and 2
greenhouse gas (GHG) emissions
and reduction of specific waste to
landfill targets (both progressing
towards our MAP2030 milestones)
within our sustainability scorecard were
achieved in full, together contributing
the maximum 10% to the annual bonus.
– The safety component of the
sustainability scorecard accounts for
10% and is assessed against lag and
forward-looking lead indicators. The
formulaic outcome is 7 out of 10, relating
to the safety lead indicator being
achieved in full and the lag indicator
being partially achieved. Regrettably we
experienced a fatality at our Merebank
mill (South Africa) during 2024. The
committee gave careful consideration to
the treatment of this fatality which was
discussed over multiple meetings.
Taking account of the fact pattern and
actions resulting therefrom, the
committee determined it was
appropriate to apply a downward
discretion of 50% to the formulaic
outcome of the entire safety
component. As a result, the safety
component will contribute 3.5 out of a
possible 10 percentage points to the
annual bonus as opposed to the
formulaic outcome of 7 out of 10.
– Performance against personal strategic
and operational objectives of the bonus
resulted in 16% out of a maximum of
20% for both the CEO and CFO.
Delivery against these objectives has
been achieved in a difficult trading
environment.
EBITDA and ROCE performance was
assessed against adjusted financial
numbers to neutralise the impact of
material factors outside of management's
control. Further details are set out on page
127. Annual bonuses of 56.2% of maximum
have been awarded in respect of
performance in 2024 for Andrew King and
Mike Powell. In accordance with the DRP,
half of these annual bonus awards will be
delivered in deferred shares which
vest after three years.
LTIP
The performance period for the 2022
Long-Term Incentive Plan (LTIP) ended
on 31 December 2024. Performance was
assessed equally against average ROCE
and relative Total Shareholder Return
(TSR) performance over the three-year
performance period.
– Performance assessed against adjusted
ROCE targets resulted in 49.7% of the
LTIP award vesting out of a maximum of
50%. A year ago, when the committee
set the targets for the 2024 LTIP award,
the upper end of the average ROCE
target range was reduced from 18% to
16%, to reflect the lost contribution from
Mondi's Russian assets following their
divestment, which concluded in 2023.
This year, the committee determined
that a consistent adjustment should be
applied to the ROCE targets for the
inflight 2022 and 2023 awards, so that
the approach for all the awards reflected
the divestment of our Russian assets.
The Russian assets had typically
contributed an additional 300 basis
points towards ROCE and, as such, this
adjustment of 200 basis points to the
stretch target does not fully reflect the
lost contribution from our Russian
operations. Therefore, in the
committee's view the upper end of the
target range is more stretching than
when it was originally set.
– Performance for the TSR condition
was below the median of the bespoke
peer group. As a result, threshold
performance for this element was not
achieved and 0% of the award will vest
out of a maximum of 50%.
As a result, 49.7% of the 2022 LTIP award
will vest in February 2025. For our
executive directors, their vested shares
will be subject to a two-year post-vesting
holding period until 2027.
Summary
The committee gave careful consideration
to the use of downward discretion and the
adjustments described above, and
considers that the overall variable pay
outturns are appropriate in the context of
the wider business performance.
Further information about the levels of
executive remuneration earned in 2024,
including details of performance against
the relevant targets for both bonus
and LTIP, is given on pages 125-135.
Remuneration in 2025
Base salary
At Mondi, the overarching philosophy is
that pay is fair and well positioned to the
external market for all our workforce.
In determining the base salary for our
executive directors, the pay and pay
practices for both senior management
and the wider workforce across all
of Mondi's key markets were shared with
the committee. Increases for Mondi plc's
UK workforce were 3.5%. The base salaries
for Andrew King and Mike Powell were
increased by 3% to £1,133,348 and £722,661
respectively, effective from 1 January 2025,
below the increases applied to Mondi plc's
UK workforce.
The committee considers that the salaries
for the executive directors are appropriate
for a global organisation of Mondi’s size
and complexity.
Mondi Group
Integrated report and financial statements 2024
112
Remuneration report continued
Statement from the Chair of the Remuneration Committee
continued
Pension
Andrew King, Mike Powell and the majority
of Mondi plc's UK workforce receive a
pension allowance of 8% of base salary.
Variable pay
There are no proposed changes to the
structure or quantum of the annual bonus
and LTIP awards. For 2025, Andrew King
will be eligible for a maximum bonus
of 185% of base salary and an LTIP award
of 230% of base salary. Mike Powell will
be eligible for a maximum bonus of 170%
of base salary and an LTIP award of 210%
of base salary. Actual award levels for both
the annual bonus and LTIP remain below
the policy maxima.
Annual bonus
The annual bonus for 2025 will continue
to be assessed against underlying
EBITDA (35%) and ROCE (25%) as
key financial performance indicators,
our sustainability scorecard (20%) and
personal objectives (20%).
The committee determined that from 2025
the approach to the assessment of safety
would be revised. Under the current
approach the lag and lead indicators each
contribute up to 5% to the annual bonus,
the achievement of each is mutually
exclusive. The actions and activities under
the lead indicators underpin our Social
Psychology of Risk forward looking
approach and reinforce our safety strategy.
The lead indicators will therefore be
retained as a gateway, however the
achievement of these indicators will no
longer directly contribute to bonus
outturns. Successful achievement of the
lead indicator will instead be the threshold
for any outturns based on the assessment
of TRCR performance under the lag
indicator. If the lead indicator is not met,
there will be no assessment of the TRCR
performance and no outturn under the
safety component. This is a higher hurdle
than under the previous structure, with a
heightened focus on output measures with
quantifiable targets.
LTIP
For the 2025 LTIP grant, performance will
continue to be assessed against ROCE
(50%), relative TSR (25%) and cumulative
EPS (25%).
The committee carefully considered the
ROCE targets to apply for the 2025 LTIP.
The threshold target has been set at 10%
(previously 12%), retaining the maximum
target level at 16% average ROCE. This is
to reflect the ramp-up period following the
start-up of a number of major capital
expenditure projects in 2024 and early
2025, and the initially dilutive effect of the
acquisition of the Western Europe
Packaging Assets of Schumacher
Packaging for an enterprise value of
€634 million, which is expected to
complete in the first half of 2025. Given
the uncertain economic environment in the
Group's core markets, the committee
believes these targets are suitably
stretching for this cycle.
Details of the annual bonus and LTIP
performance measures and targets are
on pages 116-130.
Executive director pay and the
wider workforce
When setting the remuneration for
executive directors, the committee
considers the pay practices and incentives
of the wider workforce. This includes a
review of pay approaches across the
global workforce in all geographies and
business units. The committee is updated
annually on the details of collectively
bargained and discretionary pay increases
being applied across the globe.
The majority of Mondi employees’
pay is negotiated under local collective
bargaining agreements, details
of which are shared with the committee.
The committee is well positioned
when determining executive director
pay, to take into account reward for
the wider workforce and all other
relevant information.
The key difference in the remuneration
of executive directors and employees is
the proportion of the remuneration
package that is performance related and
'at-risk'. The variable pay, delivered under
the short- and long-term incentive plans,
is higher for executive directors and also
realised over an extended time horizon.
Stakeholder engagement
The remit of the designated non-executive
director responsible for engaging with
employees covers a variety of subjects,
including remuneration-related topics.
The insights from this engagement and the
views of the wider workforce are reported
back to the Board.
For further details on wider employee
engagement, see pages 82-84.
In 2025 we will review our DRP and I
very much look forward to engaging
with our shareholders in determining
our new policy.
Conclusion
I hope that you will continue to provide
constructive feedback and support the
remuneration resolutions proposed at
the 2025 AGM.
Sue Clark
Chair, Remuneration Committee
Mondi Group
Integrated report and financial statements 2024
113
Linking our reward and strategy
Our strategy: Drive value accretive growth, sustainably
Underpinned by our four strategic value drivers:
ò At or above maximum
ò Between threshold and maximum
ò Below threshold
Drive performance along the value chain
Invest in quality assets
Empower our people
Partner with customers
.
Mondi Group
Integrated report and financial statements 2024
114
Remuneration report continued
Remuneration at a glance
Maximum
Outturn
Link to strategy
Annual bonus
Adjusted underlying EBITDA1
35%
ò 15.9%
Adjusted ROCE1
25%
ò 10.8%
Sustainability scorecard
20%
ò 13.5%
Personal – Andrew King
20%
ò 16.0%
Personal – Mike Powell
20%
ò 16.0%
Total
Andrew King
100%
ò 56.2%
Mike Powell
100%
ò 56.2%
2022 LTIP (vesting 2025)
TSR
50%
ò 0.0%
ROCE2
50%
ò 49.7%
Total
100%
ò 49.7%
1 Further details are set out on page 127.
2 Adjusted for 2024, as set out on page 127.
Andrew King
Mike Powell
¢ Base salary
£1,100,338
£701,613
¢ Annual bonus (rounded)
£1,143,046
£669,750
¢ 2022 LTIP (vesting 2025, rounded)
£1,193,805
£695,031
¢ Benefits, pension contributions and other
£182,382
£130,151
Total remuneration 2024 (rounded)
£3,619,571
£2,196,545
Fixed vs variable remuneration outcomes
Andrew King, Group CEO
Mike Powell, Group CFO
Time horizons of realised pay
Actual shareholding against Minimum
Shareholding Requirement (MSR)
The structure of the remuneration is to underpin the focus
on long-term performance that drives sustainable value
for shareholders.
As at 31 December 2024, Andrew King exceeded the MSR. Mike
Powell, who joined the Board in November 2020, has achieved 76%
of his MSR, and is on track to meet the MSR within the timeframe
permitted.
The time period to realise each element of pay is illustrated below:
1 Including base salary, benefits and pension.
Executive directors are required to hold shares equivalent to 300% and 250%
of salary respectively for the CEO and CFO. This requirement continues for
two years post-employment.
The shares that are included for the purposes of the MSR include deferred BSP
shares, net of tax, and vested LTIP shares subject to a post-vesting holding
requirement. Unvested LTIP awards do not count towards the MSR.
Mondi Group
Integrated report and financial statements 2024
115
348%
190%
300%
250%
Shareholding
MSR
35%
42%
31%
32%
17%
43%
33%
41%
26%
Salary, benefits, pension & other
Bonus
LTIP
2024
2023
2022
38%
42%
35%
30%
18%
51%
32%
40%
14%
Salary, benefits, pension & other
Bonus
LTIP
2024
2023
2022
Year 1
Fixed pay1
Annual
bonus
50% cash
50% in shares – deferred for three
years
LTIP
Three-year performance period
Two-year post-vesting
holding period
Mike Powell, Group CFO
Andrew King, Group CEO
£3,619,571
£3,360,699
£4,196,451
£1,959,608
£2,101,525
£2,196,545
Base salary for 2025
Name
Base salary
effective
1 Jan 2025
Previous
base salary
% change
Andrew King
£1,133,348
£1,100,338
3.0%
Mike Powell
£722,661
£701,613
3.0%
Andrew King’s and Mike Powell's base salaries were each increased by 3.0%, below Mondi plc's UK increases of 3.5%.
Bonus Share Plan (BSP) for 2025
The bonus structure for 2025 is shown below. Andrew King’s and Mike Powell’s maximum bonus opportunities will be 185% of base salary
and 170% of base salary respectively.
Measure
Weighting (%)
Why chosen?
How targets are set
Underlying EBITDA
35%
Underlying EBITDA provides a measure
of the cash-generating ability of the business
that is comparable from year to year.
Targets and ranges are set each year by
the committee taking account of required
progress towards strategic goals, and the
prevailing market conditions.
ROCE
25%
ROCE provides a measure of the efficient
and effective use of capital in our operations.
Sustainability scorecard
Reflects the strategic importance of progress
towards our MAP2030 framework.
Both lead and lag targets are set each year by
the committee, based on the specific priorities
in our MAP2030 framework.
The committee considers input from the
Sustainable Development Committee, and sets
appropriate standards and goals to reduce waste
and GHG emissions.
Safety
10%
One of the key indicators of whether the
business is meeting its sustainability goal
of sending everybody home safely, every day.
Greenhouse gas
emissions
5%
One of our key Taking Action on Climate
indicators in our MAP2030 framework.
Waste to landfill
5%
One of our key Circular Driven Solutions
indicators in our MAP2030 framework.
Personal objectives
20%
An indicator of the contribution and impact
that each executive director is making to the
overall success of the management team.
Targets are set each year by the committee,
based on the specific priorities, milestones
and areas of responsibility of the role.
Targets for the annual bonus will be disclosed collectively in next year’s report as the committee considers the financial targets
to be commercially sensitive. Half of any bonus earned in respect of 2025 performance will be paid out in cash and the other half
will be deferred into shares for three years as nil-cost options.
Long-Term Incentive Plan (LTIP) for 2025
LTIP awards that are to be made in 2025 will be assessed against three performance measures: ROCE, TSR and EPS, weighted 50%,
25% and 25% respectively and measured over the three-year performance period commencing on 1 January 2025. The awards will be
subject to a two-year holding period from the date of vesting. The committee’s intention is to grant at the level of 230% of base salary
and 210% of base salary for Andrew King and Mike Powell respectively.
Measure
Weighting (%)
Why chosen?
How targets are set
Average 3-year ROCE
50%
A key indicator of the efficient and effective
use of capital.
The committee sets threshold and stretch levels,
aligned to the Group’s strategic targets. ROCE
targets for the LTIP are detailed on the next page.
TSR, relative to a peer
group of competitors
25%
TSR measures the total returns to Mondi’s
shareholders, so provides close alignment
with shareholder interests.
The committee sets the performance
requirements for each grant. A bespoke peer
group of packaging and paper sector companies
is used. TSR targets with respect to the LTIP
are detailed on the next page.
Basic underlying EPS,
measured on a
3-year cumulative basis
25%
EPS was introduced as a performance metric
for awards granted in/after 2023. A key
growth measure that represents the bottom-
line return and provides a balance to the
ROCE and TSR metrics.
EPS targets are set in the context of the long-
term financial plan, reflecting basic underlying
EPS. The EPS figures for each year in the
performance period are added together to
form a cumulative 3-year target.
Mondi Group
Integrated report and financial statements 2024
116
Remuneration report continued
Statement of implementation of Directors’
Remuneration Policy in 2025
The targets for the three-year performance period for the 2025 LTIP awards are as follows:
Measure
Weighting
(%)
Threshold
(25% vesting)
Maximum
(100% vesting)
ROCE (average)
50%
10%
16%
Mondi’s TSR relative to bespoke peer group
25%
Median
Upper quartile
Cumulative EPS (euro cents per share)
25%
363
443
Between threshold and maximum, the LTIP awards will vest on a straight-line basis. The TSR peer group for the 2025 LTIP awards consists
of the following companies. These are peers who are subject to broadly the same market forces and trading environment as Mondi.
BillerudKorsnäs
International Paper
Metsä Board
Smurfit WestRock
UPM
Holmen
Klabin
PCA
Stora Enso
Huhtamaki
Mayr-Melnhof
Sappi
The Navigator Company
The committee has discretion to amend variable pay vesting outturns should any formulaic output be inappropriate (e.g. unreflective of
underlying performance). Where the provision is utilised, the committee will explain clearly the basis for this decision.
Non-executive directors’ remuneration
Fee levels are reviewed annually and, if appropriate, increased. For 2025, the fee levels are as set out in the table below and are being
held at 2024 levels.
Role
Fees from
1 January 2025
Fees from
1 January 2024
Board Chair fee
£484,313
£484,313
Non-executive base fee
£81,870
£81,870
Additional fees:
Supplement for Senior Independent Director
£21,000
£21,000
Supplement for Audit Committee Chair
£22,000
£22,000
Supplement for Remuneration Committee Chair
£21,000
£21,000
Supplement for Sustainable Development Committee Chair
£21,000
£21,000
Supplement for the non-executive director responsible for engaging with employees
£11,000
£11,000
Attendance fee for meetings outside country of residence (per meeting)
£2,680
£2,680
Mondi Group
Integrated report and financial statements 2024
117
This part of the Directors’ remuneration report sets out the Directors’ Remuneration Policy (DRP) for the Group and has been prepared
in accordance with The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended).
The DRP is not being put to shareholders for approval this year and is reproduced for information only.
Remuneration Policy principles
Mondi’s approach is that remuneration should underpin the Group’s strategy. The remuneration is intended to attract, incentivise and retain
high-calibre individuals.
The committee considers the principles set out in Provision 40 of the UK Corporate Governance Code when determining the design,
implementation and assessment of remuneration.
Simplicity
We operate a simple remuneration structure of fixed pay + short-term incentive + long-term incentive,
avoiding undue complexity or the potential to deliver unintended outcomes.
Clarity
The committee is committed to transparency regarding the components of the remuneration structure,
the potential outcome and the rationale for the quantum of awards made. The choice of metrics and the
targets set for the assessment of performance under our variable pay plans underpin the overall strategy.
Risk
The remuneration structure and the variable pay plans reflect the risk appetite set by the Board.
The performance measures, and the targets set, do not encourage inappropriate behaviours or excessive
risk-taking. Holding periods are in place for the LTIP. Mitigation is provided through the application
of market practice aligned recovery provisions (both malus and clawback). The committee also retains
discretion to override formulaic vesting outcomes, where pay outcomes do not reflect the wider business
performance. The post-employment Minimum Shareholding Requirement (MSR) has been extended such
that 100% of the in-employment shareholding guideline must be held for two years post-employment,
further promoting the delivery of sustainable share price performance.
Predictability
The committee is confident that the remuneration structure and its operation are well understood
by participants, including potential outcomes driven by performance levels achieved.
Proportionality
The potential outcomes under the remuneration structure at threshold, target and maximum performance
levels have been assessed and are understood. The committee carefully considers the targets set for the
variable pay elements to ensure reward is appropriately linked to performance and to minimise the risk
of excessive outturns. The annual bonus and LTIP outturns are at the discretion of the committee.
Alignment to culture
The committee considers that the remuneration strategy supports the wider strategy. The approach to pay
positioning, pension contribution levels and variable pay participation is applied consistently and underpins
the Mondi Group values.
Remuneration policy for executive directors compared to other employees
The remuneration policy for executive directors reflects the different levels of responsibility and market practices. The key difference
to the remuneration of the wider workforce is the proportion of remuneration that is 'at-risk'. For senior roles, a higher proportion of the
remuneration package is comprised of variable pay which drives an increased emphasis on pay for performance. Only a small number
of the most senior colleagues participate in the LTIP and the BSP. Participation in these plans is focused on those individuals who have
the greatest accountability for the performance of the Group.
Mondi Group
Integrated report and financial statements 2024
118
Remuneration report continued
Directors’ Remuneration Policy
Executive directors’ remuneration policy table
The tables below set out the DRP (available on the Group website at www.mondigroup.com/investors/results-reports-and-
presentations/?year=2022 in the Integrated report and financial statements 2022) for executive directors and non-executive directors
approved by shareholders on 4 May 2023 at the 2023 AGM. Awards made prior to the approval of this policy remain subject to the
prevailing approved policy at grant.
Base salary
Purpose and link to strategy
To recruit and reward executives of a suitable calibre for the role and duties required.
Operation
Ordinarily reviewed annually by the committee, taking account of a number of factors including (but not limited
to) Group and individual performance, the skills and experience of the individual and changes in role scope
and responsibilities. The committee also takes into consideration the levels of increase for the broader
employee population.
Reference is also made to remuneration levels in companies of similar size and complexity to Mondi.
The committee considers the impact of any base salary increase on the total remuneration package.
Salaries (and other elements of the remuneration package) may be paid in different currencies as appropriate
to reflect their geographic location.
Performance measures
While no formal performance conditions apply, an individual’s performance in role is taken into account when
determining any salary increase.
Maximum opportunity
There is no prescribed maximum base salary or annual increase.
However, increases will normally not exceed the general level of increase awarded in the UK or the location
in which the executive is based (in percentage of salary terms). On occasion a higher increase may be awarded
in appropriate circumstances, for example:
– on promotion or development in role or change in responsibilities of the individual;
– where an individual has been appointed to the Board at lower than typical market salary to allow for growth
in the role, in which case larger increases may be awarded to move salary positioning to a typical market
level as the individual gains experience;
– change in size and/or complexity of the Group; and/or
– significant market movement.
Benefits
Purpose and link to strategy
To provide market competitive benefits.
Operation
The Group typically provides:
– car allowance or company car;
– medical insurance;
– death and disability insurance;
– limited and specific personal taxation and financial advice; and
– other ancillary benefits based on individual circumstances, including relocation and assistance with
expatriate expenses.
Other benefits may be introduced from time to time to ensure the benefits package is appropriately
competitive and reflects the circumstances of the individual director.
Performance measures
Not applicable.
Maximum opportunity
While the committee has not set an absolute maximum on the level of benefits executive directors may
receive, the value is set at a level which the committee considers to be appropriately positioned taking into
account relevant market levels based on the nature and location of the role, and individual circumstances.
Pension
Purpose and link to strategy
To provide market competitive pension contributions or allowances.
Operation
Defined contribution to pension, or cash allowance of equivalent value. Only base salary is pensionable.
Performance measure
Not applicable.
Maximum opportunity
Executive directors receive a company contribution and/or equivalent cash allowance not exceeding
the contribution available to the majority of the workforce in the relevant country (currently 8% of salary
for the UK workforce).
Benefits under any non-UK pension arrangement may be provided in accordance with the terms of the
applicable scheme.
Mondi Group
Integrated report and financial statements 2024
119
Executive directors’ remuneration policy table continued
Bonus Share Plan (BSP)
Purpose and link to strategy
To provide incentive and reward for annual performance achievements. To also provide sustained alignment with
shareholders through a deferred component.
Operation
Awards are based on annual performance against stretching financial and non-financial targets. Targets are
reviewed annually and any pay-out is determined by the committee after the year end based on targets set for
the financial period. For 2025, the table on page 116 provides details of performance metrics, weightings, the
rationale and how targets are set.
The policy gives the committee the authority to select suitable performance metrics, aligned to Mondi’s strategy
and shareholders’ interests, and to assess the performance outcome.
The committee has discretion to amend the pay-out should any formulaic output not reflect the committee’s
assessment of overall business performance, or if the committee considers the formulaic outturn is not
appropriate in the context of other factors considered by the committee to be relevant.
Ordinarily, half of the award is delivered in cash and half is deferred into a conditional share award or a nil
(or nominal) cost option which normally vests following a three-year service period. Any dividend equivalents
accruing on shares between the date when the award was granted and when it vests will be delivered in shares.
Malus and clawback provisions apply (page 121).
Performance measures
Performance is normally assessed against a balanced scorecard of metrics as determined by the committee from time
to time, such as underlying EBITDA, ROCE and sustainability. Individual performance may also be assessed against
suitable objectives aligned to the delivery of Mondi’s strategy. The majority of the bonus is assessed against
quantifiable financial and science-based sustainability measures, with over 50% assessed against financial targets.
The on-target bonus, as a percentage of maximum, has been reduced from 53% to 50% for non-financial targets,
aligned to the approach for financial targets for performance awards made in, and after, 2023. Subject to the
committee’s discretion to override formulaic outturns, for financial measures and non-financial measures, no more
than 25% of maximum is earned for threshold performance, 50% of maximum is earned for on-target performance
and 100% of maximum is earned for maximum performance.
Maximum opportunity
The maximum annual bonus opportunity for executive directors is 200% of base salary.
The committee retains discretion to set the actual maximum below the policy maximum.
Long-Term Incentive Plan (LTIP)
Purpose and link to strategy
To provide incentive and reward for the delivery of the Group’s strategic objectives, and provide further
alignment with shareholders through the use of shares.
Operation
The committee may grant awards annually as conditional shares or as nil (or nominal) cost options.
Awards will usually vest to the extent that performance conditions are met, typically measured over three years.
A two-year post-vesting holding period normally applies to LTIP shares that vest (net of tax). The two-year
holding requirement will normally continue if the director leaves employment during the holding period or is
permitted to retain any part of the award as a good leaver. The shares held will count towards the executive
director’s normal shareholding requirement. For 2025, the tables on pages 116 to 117 provide details of
performance metrics, weightings, the rationale and how targets are set.
The committee has discretion to vary the formulaic vesting outturn if it considers that the outturn does not
reflect the committee’s assessment of performance or is not appropriate in the context of other factors
considered by the committee to be relevant.
Dividend equivalents will accrue to the first date shares can be acquired and will be delivered in shares, based
on the proportion of the award that vests.
Under the plan rules, in exceptional circumstances, the committee has the ability to cash-settle awards, if
necessary. There is no current intention for awards for the executive directors to be delivered in this way.
Malus and clawback provisions apply (page 121).
Performance measures
Performance measures and targets are set each year by the committee, before the grant. The committee
annually reviews the performance measures, and in line with the rules of the LTIP, reserves the right to change
the measures and/or set different targets for future grants to ensure they remain appropriately challenging
in the prevailing economic environment.
Performance measures under the LTIP will be based on financial measures (which may include, but not be
limited to, total shareholder return, return on capital employed, and earnings per share) and may include
non-financial measures (such as ESG measures). For awards granted in 2025, metrics comprise ROCE
(50% weighting), relative TSR (25% weighting) and cumulative EPS (25% weighting).
Subject to the committee’s discretion to override formulaic outturns, no more than 25% of the awards will
vest at threshold performance, increasing to 100% for maximum performance.
Maximum opportunity
The maximum award level under the LTIP in respect of any financial year is 250% of base salary.
Mondi Group
Integrated report and financial statements 2024
120
Remuneration report continued
Directors’ Remuneration Policy continued
Share ownership policy
Purpose and link to strategy
To further align the interests of executive directors with those of shareholders.
Operation
The Minimum Shareholding Requirement (MSR) for the CEO is 300% of base salary and 250% for the CFO.
On appointment, an executive director is normally required to meet the MSR within five years from the date
of appointment.
While the executive director is building to the required shareholding level, deferred bonus awards under
the BSP, net of the expected tax liability, will count towards the requirement. Once the required shareholding
has been met, such shares will not count unless the committee, at its sole discretion, determines that a number
of deferred shares may count towards the holding requirement of a director.
Unvested LTIP awards (i.e. those awards where performance targets and/or a service requirement must still
be met for awards to vest) will not count towards the holding requirement. LTIP shares that have vested and
on which tax has been paid and that are within the two-year post-vesting holding period will count towards
the holding requirement.
Previously compliant directors who do not meet the minimum requirement on annual assessment are normally
expected to achieve compliance by 31 December of the same year.
The executive directors are entitled to participate in the Company's all-employee share plans on the same
basis as all other employees.
Post-employment MSR:
A post-employment shareholding requirement applies. Under the policy, executive directors will be expected
to retain a shareholding for two years post-employment.
For both years post-employment, the full in-employment MSR level applies. New executive directors who have
not achieved the necessary in-employment MSR level at date of exit will be required to retain the actual level
of shares held at date of exit.
In order to allow the committee to deal with unexpected circumstances, the committee retains discretion on
how to operate the policy and may make exceptions and allowances as it sees fit.
Recovery provisions (Malus and Clawback)
The committee may operate malus and clawback (i) for a period of three years from the payment of the BSP cash award or (ii) until the
date of release for BSP share awards, and for a period of three years following the vesting date of LTIP awards.
The malus and clawback provisions for the BSP and LTIP are set out in the rules for each plan but, in summary, may be applied in the event of:
– misstatement of financial results;
– error or misstatement of performance;
– gross or serious misconduct;
– corporate failure;
– severe downturn in financial or operational performance; or
– severe reputational damage.
Committee discretion
The committee, consistent with market practice, retains discretion over a number of areas relating to the operation and administration of
the DRP. These include (but are not limited to) the following:
– who participates in the incentive plans;
– the timing of award grants and/or payments;
– the size of an award and/or a payment (within the limits set out in the DRP table on pages 119 to 121);
– the choice and weighting of performance metrics (in accordance with the statements made in the DRP table on pages 119 to 121);
– in exceptional circumstances, determining that any share-based award (or any dividend equivalent) shall be settled (in full or in part) in cash;
– discretion relating to the measurement of performance and pro-rating for time for LTIP awards in the event of a change of control or
restructuring;
– determination of a good leaver (in addition to any specified categories) for incentive plan purposes based on the rules of each plan
and the appropriate treatment in such circumstances;
– determining the extent of payment or vesting of an award based on the assessment of any performance conditions, including
discretion as to the basis on which performance is to be measured if an award vests in advance of normal timetable (on cessation of
employment as a good leaver or on the occurrence of a corporate event) and whether (and to what extent) pro-ration shall apply in
such circumstances;
– whether (and to what extent) malus and/or clawback shall apply to any award;
– adjustments required in certain circumstances (e.g. rights issues, corporate restructuring, on a change of control and special dividends); and
– the ability to adjust existing performance conditions for exceptional events so that they can still fulfil their original purpose whilst being
no less stretching.
Mondi Group
Integrated report and financial statements 2024
121
Executive directors’ remuneration policy table continued
Remuneration scenarios at different performance levels
CEO – Andrew King
n Fixed pay n BSP cash n BSP shares n LTIP
Minimum
Target
Maximum
Share Price
Growth
£0
£1,000,000
£2,000,000
£3,000,000
£4,000,000
£5,000,000
£6,000,000
£7,000,000
CFO – Mike Powell
n Fixed pay n BSP cash n BSP shares n LTIP
Minimum
Target
Maximum
Share Price
Growth
£0
£1,000,000
£2,000,000
£3,000,000
£4,000,000
£5,000,000
£6,000,000
£7,000,000
The charts above illustrate the total potential remuneration for each executive director at three performance levels.
Assumptions1:
Minimum = fixed pay only (salary + benefits + pension), resulting in £1,316,571 and £852,696 respectively.
On-Target = 50% vesting of the annual bonus and LTIP awards, resulting in £3,668,268 and £2,225,752 respectively.
Maximum = 100% vesting of the annual bonus and LTIP awards, resulting in £6,019,965 and £3,598,808 respectively.
Share Price Growth = to reflect the impact of a share price increase between award and vesting, the LTIP value in the ‘Maximum’ column has been increased by 50%, resulting
in £7,323,316 and £4,357,602 respectively.
Salary levels (on which other elements of the package are calculated) are based on those applying on 1 January 2025.
Remuneration policy for non-executive directors
Element
Non-executive Board Chair fee
Other non-executive fees
Purpose and link to strategy
To attract and retain a high-calibre Chair and non-executives, with the necessary experience and skills.
To provide fees which take account of the time commitment and responsibilities of the role.
Operation
The Chair receives an
all-inclusive fee. The
Chair’s fee is reviewed
periodically by the
committee.
The non-executives are paid a basic fee.
Attendance fees are also paid to reflect the requirement for non-executive
directors to attend meetings in various international locations.
Additional fees may be paid to reflect the extra responsibilities and time
commitments, including but not limited to chairing main Board committees, and
in respect of the role of non-executive director responsible for engaging
with employees. Non-executive directors’ fees are reviewed periodically by the
Chair and executive directors.
Non-executive directors are not eligible to participate in any of the Group’s share schemes, incentive
schemes or pension schemes.
The Group may reimburse the reasonable expenses of Board directors that relate to their duties on behalf
of Mondi (including tax thereon if applicable). The Group may also provide advice and assistance with
Board directors’ tax returns where these are impacted by the duties they undertake on behalf of Mondi.
Maximum opportunity
While there is not a maximum fee level, fees are set by reference to market median data for companies
of similar size and complexity to Mondi.
Mondi Group
Integrated report and financial statements 2024
122
Remuneration report continued
Directors’ Remuneration Policy continued
1
1
1
1
1
1
1
1
100%
36%
14%
14%
36%
23%
18%
17%
14%
17%
43%
54%
14%
100%
38%
14%
14%
34%
24%
20%
17%
14%
17%
42%
52%
14%
Directors' contracts and notice periods
Executive directors
Andrew King's and Mike Powell's service contracts provide for termination on one year’s notice by either party. The Group may elect
to make a payment in lieu of notice and, if it does so, to apply mitigation. Payment in lieu of notice would comprise base salary, benefits
and pension contributions for the notice period (or, if applicable, the balance of the notice period).
A director’s service contract may be terminated without notice and without any further payment or compensation, except for sums
accrued up to the date of termination, on the occurrence of certain events such as gross misconduct.
Non-executive directors
All non-executive directors have letters of appointment with Mondi plc for an initial period of three years. In accordance with best
practice, non-executive directors are subject to annual re-election at the Annual General Meeting. Appointments may be terminated
by either party with six months’ notice. No compensation is payable on termination, other than accrued fees and expenses.
Service contracts for new appointments
Normally, for any new executive director appointments, the Group’s policy is that the service contracts should provide for one year’s
notice by either party. The contract would provide that, in the event of termination by the company, other than for ‘cause’, the executive
would be eligible for payment of the base salary, pension contribution and benefits in respect of the unexpired portion of the 12-month
notice period.
The committee would take account of the remuneration and contract features that the executive may be forgoing or relinquishing
in order to join Mondi, in comparison with the overall remuneration package that Mondi is able to offer.
The committee may consider compensating a newly appointed executive director for other relevant contractual rights forfeited when
leaving their previous employer and/or remuneration forgone as a result of leaving their previous employer.
Approach to remuneration on recruitment
The appointment of high-calibre executives to the Board, whether by internal promotion or external recruitment, is important for the
success of the Group. The remuneration package for a newly appointed executive director would be set in accordance with the prevailing
approved Remuneration Policy at the time of appointment. Base salary would be set at an appropriate level taking into consideration the
skills and experiences of the individual, the complexity of the role and the individual's current remuneration. The variable pay would be
considered consistent with that of existing executive directors and would be subject to the maximum limits of the policy. Certain relocation
expenses may be met, as appropriate.
For an internal appointment, any existing pay components awarded in respect of the prior role would be allowed to pay out in accordance
with the terms of the award.
For external appointments, the committee may offer additional cash and/or share-based payments to replace any variable pay awards an
individual may have forgone to join Mondi, if it considers these to be in the best interests of the Group and its shareholders. This includes
awards made under Section 9.3.2 of the UK Listing Rules. Any such payments would take account of the remuneration forgone including
the nature of the award, the time horizons and any performance conditions attached to the award. The key terms and an explanation
of the rationale for such a component would be disclosed in the remuneration report for the relevant year.
Depending on the timing of the appointment, the committee may consider it appropriate to set different annual performance conditions
for the first performance year of appointment. An LTIP award may be made shortly after appointment, or as soon as practical following
a closed period.
Mondi Group
Integrated report and financial statements 2024
123
Policy on loss of office
Notice periods will not normally exceed 12 months. The Group may elect to make a payment in lieu of notice as determined by the
respective contract of employment, taking account of local employment law, and, if it does, to apply mitigation. The committee reserves
the right to make any other payments in connection with an executive director’s cessation of office or employment where the payments
are made in good faith in discharge of an existing legal obligation (or by way of damages for breach of such an obligation) or by way of
settlement of any claim arising in connection with the cessation of a director’s office or employment. Any such payments may include but
are not limited to paying any fees for outplacement assistance and/or the director’s legal and/or professional advice fees in connection
with their cessation of office or employment.
The Group would seek to apply the principles of mitigation to any payment in lieu of notice by, for example, making payments in
instalments that can be reduced or ended if the former executive wishes to commence alternative employment during the payment
period. An executive director’s eligibility for bonus on cessation of employment will be determined by the committee in accordance with
the relevant plan rules, taking into account the reason for their departure and prevailing local legislation. Where eligible, the departing
director’s bonus would typically be determined in the normal way after the relevant year end, i.e. based on the applicable performance
conditions, pro-rated for the period worked in that year, save that no portion would be required to be deferred into a BSP award.
However, the committee has the discretion to apply different treatment. Any share-based entitlements granted to an executive director
under the Group’s share plans will be determined based on the relevant plan rules. The default treatment is that any outstanding
awards lapse on cessation of employment. However, in certain prescribed circumstances, such as death, disability, retirement or other
circumstances at the discretion of the committee (taking into account the individual’s performance and the reasons for their departure)
‘good leaver’ status can be applied. For good leavers, vesting of BSP awards is accelerated to as soon as practical after employment
termination (as they are not subject to performance conditions). Typically, LTIP awards remain subject to performance conditions
(measured over the original time period) and are reduced pro-rata to reflect the proportion of the performance period actually served.
The committee has the discretion to apply different treatment (including to disapply the application of performance conditions and/or
time pro-rating) if it considers it appropriate to do so. However, it is envisaged that this would only be applied in exceptional
circumstances. Post-vesting holding periods will normally continue to apply, notwithstanding any cessation of employment.
Statement of consideration of employment conditions elsewhere in the Group
The remuneration of the executive directors and other senior colleagues is set, taking into appropriate account the pay, pay practices
and employment conditions of the wider workforce, on which the committee receives regular detailed updates. In determining the
proposed salary increases for the executive directors and individuals within the remit of the committee, the committee is well positioned
to consider the wider workforce increases as part of its decision-making.
Employees are encouraged to provide feedback, on remuneration and wider topics, across a number of channels. A purposeful
workplace is a key theme of MAP2030 and understanding the views of our employees to address the things that matter to them
is at the core.
During 2024, Anke Groth, our non-executive director responsible for engaging with employees, participated in Mondi's annual European
Works Council meeting, alongside representatives from our European plant network. Anke and Sue Clark, who held the role until the end
of September, also engaged with a cross-section of employees during other site visits during the year, more details of which can be
found on page 83.
The Board receives feedback from these, and other activities, to better understand the experience of a Mondi employee and to support
its decision-making.
Statement of consideration of shareholder views
The committee takes into account the views of shareholders in the formulation of the DRP and the implementation of the policy.
Over the course of the year, the Chair, the Remuneration Committee Chair and executive directors engaged with shareholders on
a number of matters including remuneration with feedback presented to the Board. Feedback received from shareholders at the
Annual General Meeting is also considered. The Remuneration Committee Chair is anticipating engaging with shareholders over the
course of the DRP review in 2025, in advance of a new policy being taken to shareholders for approval at the 2026 AGM.
Legacy arrangements
For the avoidance of doubt, authority is given to the Group to honour any commitments entered into with current or former directors
that have been disclosed to shareholders in previous remuneration reports. Details of any payments to former directors will be set out in
the annual report on remuneration as they arise.
Mondi Group
Integrated report and financial statements 2024
124
Remuneration report continued
Directors’ Remuneration Policy continued
Mondi’s TSR performance over the last 10 years
The following graph sets out the comparative TSR of Mondi plc relative to the FTSE 100 Index, for the period between 31 December 2014
and 31 December 2024. Mondi is a constituent of the FTSE 100, which is an appropriate index for this report. The value by 31 December 2024
of £100 invested in Mondi plc on 31 December 2014, compared with the value of £100 invested in the FTSE 100 Index on the same date,
is shown. The TSR has been calculated on a three-month average basis. This includes a special dividend paid in February 2024 to return
the net proceeds from the sale of the Group’s Russian assets which was accompanied by a share consolidation.
Total shareholder return – Mondi vs FTSE 100
Historical CEO remuneration
Year
CEO
Total remuneration
% of maximum
bonus earned
% of LTI
vested
2024
Andrew King
£3,619,571
56%
49.7%
20231
Andrew King
£3,360,699
29%
61.3%
2022
Andrew King
£4,196,451
96%
50.0%
2021
Andrew King
£3,497,506
97%
45.6%
20202
Andrew King / Peter Oswald
£3,559,580
42%
50.0%
2019
Peter Oswald
£3,322,216
44%
67.2%
2018
Peter Oswald
£3,906,849
88%
76.6%
20173
Peter Oswald / David Hathorn
£3,354,544
63%
72.5%
2016
David Hathorn
£4,867,142
69%
92.5%
2015
David Hathorn
£5,255,561
90%
100.0%
1
The three-year performance cycle of the 2021 LTIP award ended on 31 December 2023. The award value shown in the 2023 remuneration report was calculated using
the average share price, being £13.98. The actual share price on vesting was £15.50. The award value for 2023 has been restated on this basis.
2
Andrew King and Peter Oswald's 2020 total remuneration of £1,995,465 and £1,564,115 respectively is in respect of their tenure as Group CEO. Their salary and bonus have
been subject to a pro-rata time reduction. The bonus earned and LTIP vested were based on their remuneration in the role as Group CEO. Peter's bonus earned was 41%
of maximum bonus opportunity.
3 For 2017 the CEO remuneration reflects David Hathorn’s total remuneration of £991,584 up to his retirement from the Boards (the simplification of Mondi's corporate
structure into a single holding company structure under Mondi plc became effective in 2019) on 11 May 2017, including the pro-rata CEO annual bonus, and Peter Oswald’s
total remuneration of £2,362,960, including base salary, pension, benefits and pro-rata CEO annual bonus, as well as the 2015 LTIP vesting amount, with effect from
11 May 2017.
Mondi Group
Integrated report and financial statements 2024
125
Annual report on remuneration
Value (£)
10 year Mondi plc
10 year FTSE 100
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
0
100
200
300
2024 remuneration of directors (audited)
The Remuneration Policy operated as intended in 2024. The provisions of malus and clawback have not been applied in 2024.
The table below sets out the total remuneration for each person who served as a director in the years ended 31 December 2024
and 31 December 2023. A full breakdown of fixed pay and pay for performance in 2024 is detailed below.
Executive directors
Fixed pay
Pay for performance
Base salary
Benefits1
Pension
contribution2
Total fixed
remuneration
Annual bonus
including
grant value of
BSP award3
Value of LTIP
vesting in
respect of the
performance
period ended
in the year 4 5
Value of LTIP
vesting at
date of grant
Share price
gain on
vesting
LTIP award
between
grant and
vest dates
Other1
Total variable
remuneration
Total
2024
Andrew
King
£1,100,338 £92,555
£88,027 £1,280,920
£1,143,046
£1,193,805 £1,157,398
— £1,800 £2,338,651 £3,619,571
Mike
Powell
£701,613 £72,222
£56,129
£829,964
£669,750
£695,031 £673,835
— £1,800 £1,366,581 £2,196,545
2023
Andrew
King
£1,073,500 £255,638
£85,880
£1,415,018
£575,934
£1,367,947 £1,391,855
— £1,800 £1,945,681 £3,360,699
Mike
Powell
£684,500
£72,978
£54,760
£812,238
£349,096
£796,474
£810,364
— £1,800 £1,147,370
£1,959,608
1
Including accommodation costs, car allowance, life and health cover. For Andrew King, this figure includes a total of £12,778 for UK, South African and Austrian tax advice
benefit, a total tax equalisation and other benefit gross-ups of £50,604 and a car allowance of £19,300. For Mike Powell, this figure includes UK and Austrian tax advice
benefit of £5,597, a total tax equalisation and other benefit gross-ups of £39,915 and a car allowance of £19,300. The column 'Other' shows matching SIP shares.
2
Pension benefits of 8% of salary respectively are delivered as pension contribution of £10,000 and cash allowance of £78,027 to Andrew King and as cash allowance of
£56,129 to Mike Powell.
3 This is the total annual bonus amount awarded in respect of the financial year 2024, and includes both the upfront cash element and the deferred share award (pages 127-129).
4 For 2024, the three-year performance cycle of the 2022 LTIP ended on 31 December 2024 and the awards will vest in February 2025 and be subject to a two-year post
vesting holding period until 2027. The award value (including equivalent dividends on LTIP shares due to vest in February 2025 set out on page 129) shown is based on the
average share price over the last three months of the financial year ended 31 December 2024 of £12.46. The 2022 LTIP awards were granted on 10 March 2022, when the
share price was £13.67. This equated to a decrease in value of £1.21 per share. As a consequence a zero gain is shown. Andrew’s and Mike's loss due to share price
depreciation was £102,447 and £59,645 respectively (excluding dividend equivalents).
5 In the 2023 remuneration report, the value of the 2021 LTIP awards vesting for which the three-year performance cycle ended on 31 December 2023 was calculated using the
average share price for the three months ended 31 December 2023, being £13.98 (including equivalent dividends on LTIP shares exercised in May 2024). The actual share
price on vesting was £15.50. The award values for 2023 have been restated on this basis. The 2021 LTIP awards were granted on 12 March 2021, when the share price was
£17.66. This equated to a decrease in value of £2.16 per share. As a consequence a zero gain is shown. Andrew’s and Mike's loss due to share price depreciation was
£169,966 and £98,958 respectively (excluding dividend equivalents).
Non-executive directors
Year ended 31 December 2024
Year ended 31 December 2023
Fees
Other1
Total
Fees
Other1
Total
Philip Yea
£484,313
—
£484,313
£484,313
—
£484,313
Svein Richard Brandtzaeg
£100,630
£2,690
£103,320
£100,630
£8,214
£108,844
Sue Clark
£105,980
—
£105,980
£95,550
—
£95,550
Sucheta Govil2
£23,148
—
£23,148
—
—
—
Anke Groth
£103,380
£7,198
£110,578
£74,803
£2,200
£77,003
Saki Macozoma
£100,630
£3,230
£103,860
£95,270
£495
£95,765
Dominique Reiniche3
£103,623
£3,447
£107,070
£132,873
£4,521
£137,394
Dame Angela Strank
£108,230
—
£108,230
£105,550
—
£105,550
Stephen Young
£109,230
—
£109,230
£111,004
—
£111,004
1
Svein Richard Brandtzaeg, Anke Groth, Saki Macozoma and Dominique Reiniche received tax advice in the year, constituting taxable benefits to the gross values shown
in this column.
2
Sucheta Govil was appointed as a non-executive director on 1 October 2024. The 2024 figures reflect her remuneration as a non-executive director from 1 October 2024
to 31 December 2024.
3 Dominique Reiniche retired from the Board on 30 September 2024. The 2024 figures reflect her remuneration as a non-executive director from 1 January 2024 to
30 September 2024.
4 None of the non-executive directors have entitlements to pension-related benefits.
Mondi Group
Integrated report and financial statements 2024
126
Remuneration report continued
Annual report on remuneration continued
Annual bonus
2024 bonus outcomes (audited)
The majority of the 2024 annual bonus was assessed against financial measures, underlying EBITDA and ROCE.
The safety element of the sustainability scorecard includes lead and lag indicators:
– Five percentage points relate to the achievement of lead indicators. This is reflective of Mondi’s values and proactive approach to
safety. This is a shared objective requiring individual involvement of all members of the Executive Committee. All the individual
activities must be completed by the Executive Committee members to achieve the five points. If all the activities in their entirety are
not achieved, then these five points lapse in full for all.
– Five percentage points relate to the lag indicator, assessed against an annually defined Total Recordable Case Rate.
In the event of any work-related fatality, the Remuneration Committee makes an assessment on a case-by-case basis and will utilise its
discretion to adjust any pay-outs under the bonus, if appropriate.
Performance targets related to the reduction of specific Scope 1 and 2 GHG emissions and reduction of specific waste to landfill (both
progressing towards our MAP2030 milestones) account for a further 10% of the sustainability scorecard.
The remaining 20 points of the annual bonus are assessed against personal objectives (page 128).
Performance measure
Weighting
Threshold
% of bonus payable for
threshold performance
Maximum
Outcome2
% of bonus
opportunity achieved
Underlying EBITDA1
35%
€1,012m
8.75%
€1,370m
€1,158m
15.9%
ò
ROCE1
25%
10.1%
6.25%
13.7%
11.4%
10.8%
ò
Sustainability scorecard
Safety lead indicators (SLI)
5%
Binary
Binary
Achieved in full
3.5%3
ò
Safety lag (TRCR)
5%
0.70
1%
0.63
0.68
Greenhouse gas (GHG) emissions
5%
Binary
0.42 t/t
0.36 t/t
5.0%
ò
Waste to landfill (WtL)
5%
Binary
16.47 kg/t
12.75 kg/t
5.0%
ò
Personal objectives – CEO
20%
n/a
20
16
16.0%
ò
Personal objectives – CFO
20%
n/a
20
16
16.0%
ò
ò
At or above maximum ò
Between threshold and maximum ò
Below threshold
1
50% of the maximum bonus is payable for on-target performance against financial metrics. On-target EBITDA and on-target ROCE were €1,191m and 11.9% respectively.
2
Underlying EBITDA and ROCE were adjusted to neutralise the impact of the forestry fair value gain and the one-off loss recognised in the year from the devaluation of the
Egyptian pound. These are both matters which could not be foreseen when the targets were set and are outside of management's control, both on the upside and downside.
The committee determined the targets were no less stretching as a result of the adjustments.
3 Representing the application of downward discretion of 50% to the formulaic outturn of the entire safety component.
There was a work-related fatality in 2024 at the Merebank mill (South Africa). The Remuneration Committee (the committee)
and Sustainable Development Committee independently reviewed the detailed investigation report of the incident and agreed with
the findings. After careful deliberation, the committee concluded that a discretionary downward adjustment of 50% of the formulaic
outcome for the entire safety element was appropriate.
Mondi Group
Integrated report and financial statements 2024
127
Bonus outcome as percentage of maximum opportunity – CEO: 56.2%
Underlying EBITDA
35%
(Max)
ROCE
25%
(Max)
Sustainability scorecard
20%
(Max)
Personal objectives
20%
(Max)
Safety
GHG
WtL
15.9%
10.8%
3.5%
5.0%
5.0%
16.0%
Bonus outcome as percentage of maximum opportunity – CFO: 56.2%
Underlying EBITDA
35%
(Max)
ROCE
25%
(Max)
Sustainability scorecard
20%
(Max)
Personal objectives
20%
(Max)
Safety
GHG
WtL
15.9%
10.8%
3.5%
5.0%
5.0%
16.0%
Performance measure achieved
Sustainability performance measure achieved
Performance measure not achieved
Annual bonus continued
Achievement against personal objectives of executives for 2024 bonus (audited)
Key personal objectives and achievements
The executive directors share many key objectives and also have individual objectives that are specific to their
roles. Key objectives, and achievements against these objectives during 2024, included:
Strategy development and execution
– Drive performance along the value chain
– Continued focus on initiatives to optimise productivity, enhance efficiency and eliminate waste across our operations:
◦Delivered improvements across the value chain, including procurement synergies to reduce input costs, energy savings and
further enhance product quality.
◦Decreased our waste to landfill per tonne of production by 4% which, when compared to the 2020 baseline, is a reduction of
46%.
– Invest in quality assets
– Continued investment in our quality assets to drive growth, improve our cost competitiveness, and enhance sustainability, product
quality and service to customers:
◦Invested €1.2 billion to increase capacity in both corrugated and flexible packaging.
◦Completion of new kraft paper machine at Štětí (Czech Republic); major mill modernisations in Świecie (Poland) and Kuopio
(Finland); expansions of box plants in Warsaw and Simet (both Poland).
◦Recycled containerboard mill at Duino (Italy) remains on track to start up in the first half of 2025.
◦Completed the acquisition of the Hinton Pulp mill in Alberta (Canada), and successfully improved productivity and sustainability
performance.
◦Further reduced our Scope 1 and 2 emissions by 11% with overall reduction of 31% when compared with our 2019 baseline,
continuing to make progress towards our target of 46% reduction by 2030.
◦Announced the acquisition of the Western Europe Packaging Assets of Schumacher Packaging for an enterprise value of
€634 million with completion expected in H1 2025.
– Empower our people
– Create an inspiring, inclusive and safe workplace that empowers our teams and enables leaders to take accountability for
attracting, developing and retaining talent to foster innovation and growth:
◦Maintained high levels of engagement with colleagues and took action based on their opinions and feedback.
◦Undertook a pulse survey on speaking up with 78% participation rate.
◦Continued to be recognised as a leader in safety in our industry with a TRCR of 0.68.
– Partner with customers
– Innovate in partnership with our customers to create a unique range of sustainable packaging and paper solutions that are
fit for a circular economy:
◦Increased the proportion of our products that are reusable, recyclable or compostable to 87% of revenue.
◦Provided our customers with high-quality packaging and paper solutions that comply with all relevant health and safety
requirements.
◦1,776 product impact assessments completed for our customers enabling them to manage their Scope 3 emissions.
◦Opened a new Flexible Packaging R&D and innovation centre in Steinfeld (Germany).
– Maintained strong financial position
– Net debt at 31 December 2024 was €1,732 million, with net debt to underlying EBITDA at 1.7 times.
– At 31 December 2024, Mondi's liquidity position was €1,028 million, comprising the undrawn Syndicated Revolving Credit Facility
(RCF) of €750 million and cash and cash equivalents of €278 million.
– Maintained investment grade credit ratings A: (stable outlook) credit rating from Standard & Poor's and a Baa1 (stable outlook)
credit rating from Moody.
– Issued €500 million of euro bonds and refinanced the revolving credit facility.
The overall personal ratings of
the executive directors were:
– Andrew King 16/20
– Mike Powell 16/20
Mondi Group
Integrated report and financial statements 2024
128
Remuneration report continued
Annual report on remuneration continued
Detail of annual bonus awarded for the year (audited)
Name
Maximum bonus
(% of salary)
Maximum
bonus
% of maximum
(shown to 1 dp)
Awarded
in cash
Awarded
in shares
Total
Andrew King
185% of salary
£2,035,625
56.2%
£571,523
£571,523
£1,143,046
Mike Powell
170% of salary
£1,192,742
56.2%
£334,875
£334,875
£669,750
Overall, the committee considers that annual bonus outturns for Andrew and Mike of 56.2% of maximum respectively are a fair and
reasonable reflection of the performance of the business and their individual performance against personal objectives.
In accordance with our DRP, 50% of the bonuses earned are paid in cash and the remaining 50% is deferred into shares which are
released after three years. No further conditions are attached to these shares, except for being in service at date of vesting.
Long-Term Incentive Plan (LTIP) (audited)
LTIP awards vesting for the performance period ending 31 December 2024 (2022 awards)
The LTIP awards that were granted in 2022, with a three-year performance period ending on 31 December 2024, will vest in February
2025 at 49.7% of maximum against the (equally weighted) relative TSR and ROCE performance conditions, as shown in the table below.
The targets for the 2022 LTIP awards were approved by the committee prior to the conflict in the Ukraine. The financial results from 2022
onwards were based on our operations excluding our Russian assets. Following the divestment of the Russian assets, which had typically
contributed approximately an additional 300 basis points towards ROCE, the committee has adjusted the stretch performance level of
average ROCE p.a. to 16% (from 18%) while retaining the threshold target at 12%. This adjustment of 200 basis points to the stretch
target does not fully reflect the lost contribution from the Russian assets. The committee therefore considers the target to be more
stretching and the level of pay-out to be reflective of the performance of the Group. This aligns with the target range the committee set
for the 2024 LTIP, which was revised, following the divestment of the Russian assets.
The committee has also determined to apply the same adjustment to the maximum target for the 2023 awards, to ensure alignment
across all inflight awards. Whilst the committee has currently decided not to reduce the threshold target, it will keep the position under
review and assess performance at the end of the performance period after considering all relevant facts.
Measure
Weighting (%)
Threshold
(25% vesting)
Maximum
(100% vesting)
Actual
Actual vesting
(% of max. LTIP
opportunity)
Mondi’s TSR relative to bespoke peer group
50%
Median
Upper quartile
Below median
0.0%
ROCE (average)
50%
12% p.a.
16% p.a.
15.9% p.a.1
49.7%
Total vesting (% of max)
49.7%
1
The three-year average ROCE that was achieved was 15.9% (23.7% in 2022, 12.8% in 2023 and 11.4% in 2024). Adjusted ROCE for 2024 as set out on page 127.
Mondi plc achieved a TSR of -23.9%, over the three-year performance period, ranking 9th in the TSR peer group, below median
TSR performance, resulting in 0% vesting for this element.
Mondi plc achieved a three-year average ROCE of 15.9%. This resulted in vesting of 99.4% of this element. Therefore, 49.7% of the
maximum 2022 LTIP award will vest as a result of the ROCE performance.
Taking into account both ROCE and TSR performance, in total, 49.7% of the maximum 2022 LTIP award will vest.
Details of LTIP vesting for the performance period ending 31 December 2024 (2022 awards)
Name
Number of
awards granted
Vesting
performance
Awards vesting
Dividend
equivalents
Total number of
awards vesting
Average share
price
Total estimated
value of award
on vesting
Andrew King
170,389
49.7%
84,667
11,144
95,811
£12.46
£1,193,805
Mike Powell
99,201
49.7%
49,293
6,488
55,781
£12.46
£695,031
In accordance with the DRP, vested awards are subject to a two-year holding period whereby the executive (including those who have
left employment) must retain the number of vested shares net of tax for a minimum of two years from the point of vesting. The award
value shown is the three month average share price over the last quarter of the financial year ended 31 December 2024 of £12.46.
BSP awards granted in 2024 (audited)
On 3 May 2024 the committee made the following awards under the Group’s BSP to the following executive directors in relation
to the 2023 bonus outcome.
Name
Type of award
Relating to FY
Number of shares
Share price at grant1
Face value of shares
Andrew King
Nil-cost option
2023
20,395
£14.12
£287,977
Mike Powell
Nil-cost option
2023
12,362
£14.12
£174,551
1
Being a three-day average share price commencing on the day of announcement of financial results.
Mondi Group
Integrated report and financial statements 2024
129
LTIP awards granted in 2024 (audited)
LTIP and BSP awards are normally granted in early March of each year. In March 2024, Mondi was in a closed period due to discussions
regarding a possible combination with DS Smith, prohibiting the grant of awards at the normal time. Following the Board’s decision not to
make an offer and publication of the Group's trading update, awards were granted on 3 May 2024. The committee determined that the
awards would vest in line with the original vesting date (i.e. the date they would have vested had the grant date not been delayed), to
provide consistency for participants. Similarly, the share price for determining the number of awards was calculated using the normal
approach, being the three-day average commencing on the day of announcement of financial results.
On 3 May 2024, the committee made the following awards under the Group’s LTIP to the following executive directors:
Name
Type of award
Basis of award
Number of shares
Share price at
grant1
Face value of
shares
Vesting at
minimum
performance
End of performance
period
Andrew King
Nil-cost option
230% of salary
179,234
£14.12
£2,530,784
25%
31/12/26
Mike Powell
Nil-cost option
210% of salary
104,348
£14.12
£1,473,394
25%
31/12/26
1
Being a three-day average share price commencing on the day of announcement of financial results.
The performance conditions, as summarised in the table below, are based on three performance measures – ROCE (50%), TSR, relative to a
peer group (25%) and cumulative EPS (25%) – measured over a three-year performance period ending on 31 December 2026. The TSR
performance condition is based on the Group’s TSR relative to a group of competitor companies. The following companies were
selected: BillerudKorsnäs, Holmen, Huhtamaki, International Paper, Klabin, Mayr-Melnhof, Metsä Board, PCA, Sappi, Smurfit WestRock,
Stora Enso, The Navigator Company and UPM. DS Smith was acquired by International Paper on 31 January 2025 and was removed from
the peer group for all inflight awards. Smurfit Kappa and WestRock were separate members of the comparator group prior to their
merger in July 2024 and performance will be measured with reference to the combined entity going forward.
This combination of metrics provides an appropriate means of aligning the operation of the LTIP with shareholders’ interests and the Group’s
strategy.
Measure
Weighting
(%)
Threshold
(25% vesting)
Maximum
(100% vesting)
ROCE (average)
50%
12%
16%
Mondi’s TSR relative to bespoke peer group
25%
Median
Upper quartile
Cumulative EPS (euro cents per share)
25%
365
446
Between threshold and maximum the LTIP awards will vest on a straight-line basis. The committee has discretion to amend the vesting
outturn should the formulaic assessment not be reflective of the underlying business performance. Where the provision is utilised the
committee will seek to explain clearly the basis for this decision.
Payments to past directors (audited)
There were no payments made to past directors during the period.
Payments for loss of office (audited)
There were no payments for loss of office made to directors or past directors during the period.
Mondi Group
Integrated report and financial statements 2024
130
Remuneration report continued
Annual report on remuneration continued
CEO pay ratio
Mondi is not required to report the CEO pay ratio, employing fewer than the threshold 250 people in the UK. However, in line with our
commitment to transparency, a voluntary disclosure is being made.
The Option A methodology was selected as being the most accurate means of identifying the respective percentiles. The full-time
equivalent total remuneration for all permanent Mondi plc UK employees, received in the financial year, has been used to identify the
employees whose remuneration positions them at the 25th percentile, median and 75th percentile. No element of pay was excluded.
The snapshot day is 31 December in any year.
Mondi employs approximately 22,000 individuals globally. On 31 December 2024, 29 people were employed by Mondi plc in the UK,
representing less than 1% of Mondi's workforce.
A significant proportion of the CEO's total remuneration is delivered as performance-related pay. Performance outcomes and share price
for equity-settled awards may fluctuate significantly year on year, impacting the CEO pay ratio.
Year
Method
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
2024
Option A
38:1
24:1
13:1
2023
Option A
43:1
23:1
14:1
2022
Option A
51:1
35:1
20:1
2021
Option A
50:1
36:1
24:1
2020
Option A
48:1
34:1
27:1
2019
Option A
126:1
97:1
67:1
2024
CEO
25th percentile
Median
75th percentile
Salary
£1,100,338
£69,344
£120,367
£215,250
Total remuneration
£3,619,571
£94,796
£153,189
£269,987
The median pay ratio is consistent with the pay, reward and progression policies for the UK workforce.
Relative importance of spend on pay
The table below shows the total remuneration paid across the Group together with the total ordinary dividends paid in 2024 and 2023.
A special dividend was paid in February 2024 to return the net proceeds from the sale of the Group’s Russian assets which is not
included in the 2024 figure. This was accompanied by a share consolidation. There have been no share buybacks during 2024 and 2023.
€ million
2024
2023
% change
Overall remuneration expenditure1
1,228
1,087
13.0%
Ordinary dividends paid to shareholders
312
345
-9.6%
1
Remuneration expenditure for all Mondi Group employees, reported as personnel costs in the consolidated income statement.
Mondi Group
Integrated report and financial statements 2024
131
Percentage change in directors' remuneration
The table below shows the percentage change in each director’s salary/fees, benefits and bonus between the year ended 31 December 2024
and the four preceding years, and the average percentage change in the same remuneration over the same period in respect of the
employees of the listed parent entity and the Group on a full-time equivalent basis. Data for joiners and leavers has been excluded in the
relevant year. To provide a meaningful base year for comparison, the remuneration is annualised in the year of joining for the purposes
of the subsequent year's calculation. Changes in Board appointments and attendance of Board meetings outside of country of residence
may have a marked effect on the year-on-year comparison shown for the non-executive directors. Non-UK tax resident non-executive
directors receive tax return support. Differences in the amount of tax support required between years can also have a marked effect on
the comparison.
For 2024 relative to 2023, there have been no increases to the fee structure for the Chair or non-executive directors and the salary
increases for the executive directors were 2.5% respectively. Significant percentage changes in the taxable benefits for the non-
executive directors figures are driven by small absolute tax advice fees as detailed on page 126.
Average
employee
Mondi plc1
Average
employee
Mondi
Group
Andrew
King
Mike
Powell
Philip Yea
Svein
Richard
Brandtzaeg
Sue Clark Anke Groth
Saki
Macozoma
Dame
Angela
Strank
Stephen
Young
Salary/fees
2024
5.5%
6.6%
2.5%
2.5%
0.0%
0.0%
10.9%
4.1%
5.6%
2.5%
-1.6%
2023
7.8%
9.2%
6.0%
6.0%
5.0%
5.0%
15.0%
—
1.9%
9.6%
-10.5%
2022
-1.3%
4.5%
2.5%
2.5%
2.5%
20.3%
9.2%
—
—
26.6%
12.6%
2021
14.5%
3.6%
1.9%
0.0%
12.8%
—
—
—
—
—
23.6%
2020
-11.2%
0.6%
0.0%
—
—
—
—
—
—
—
-6.2%
Taxable
benefits2
2024
-2.0%
N/A
-63.8%
-1.0%
0.0%
-67.3%
—
146.5%
554.3%
—
—
2023
-7.5%
N/A
23.0%
86.5%
—
137.7%
—
—
-91.1%
—
—
2022
1.2%
N/A
55.3%
59.7%
—
11.3%
—
—
—
—
—
2021
3.2%
N/A
-26.4%
-78.7%
—
—
—
—
—
—
—
2020
-0.6%
N/A
238.3%
—
—
—
—
—
—
—
—
Annual
bonus3
2024
-62.2%
13.8%
98.5%
91.9%
—
—
—
—
—
—
—
2023
-9.1%
-18.8%
-68.0%
-67.2%
—
—
—
—
—
—
—
2022
82.9%
22.3%
1.4%
3.6%
—
—
—
—
—
—
—
2021
-28.9%
18.1%
164.6%
138.1%
—
—
—
—
—
—
—
2020
-58.1%
5.2%
-5.5%
—
—
—
—
—
—
—
—
1
The number of employees of the listed parent company is substantially less than 1% of the Group and as a consequence any changes to the remuneration of an Executive
Committee member or a particular single individual, or a change in the profile of the employee group, e.g. leavers or new hires, can have a marked effect on the year-on-year
comparison. Consequently, the percentage changes may be highly variable.
2
Taxable benefits for Mondi plc employees include healthcare, car allowance and SIP matching shares. The majority of employees in the Group receive no taxable benefits
beyond those provided through the local social security regime. Additional benefits represent less than 5% of the total remuneration.
3 The percentage change in the annual bonus for the executive directors is not a like for like comparison to the employees. The calculation for the executive directors is based
on the bonus earned for the respective financial year. For employees, it is the bonus paid in the year.
Mondi Group
Integrated report and financial statements 2024
132
Remuneration report continued
Annual report on remuneration continued
Statement of directors’ shareholdings and share interests (audited)
The CEO and CFO are required to build and maintain a Minimum Shareholding Requirement (MSR) equivalent to 300% and 250% of
base salary respectively. New appointees are required to meet the relevant requirement within five years from appointment. Therefore,
Andrew King and Mike Powell have until 31 March 2025 and 31 October 2025 to meet their respective shareholding requirements.
Deferred bonus awards under the BSP (net of tax) and vested LTIP shares that are subject to the two-year post-vesting holding period
will count towards the holding requirement. As at 31 December 2024, Andrew King exceeded the MSR. Mike Powell, who joined Mondi in
November 2020, has achieved 76% of his MSR and is on track to meet this in the timeframe required.
Directors' shareholdings were impacted by the share consolidation implemented in early 2024 when the net proceeds from the sale
of the Group’s Russian assets were returned to shareholders, as disclosed in the 2023 Integrated report and in note 28 to the financial
statements. The beneficial and non-beneficial share interests of the directors and their connected persons as at 1 January 2024 and as
at 31 December 2024 were as follows:
Executive directors (audited)
Shares held
outright at
1 Jan 2024
Shares held
outright at
31 Dec 2024
Deferred BSP
shares net of tax
at 31 Dec 20242
Total
shareholding
attributed to
MSR
MSR
Achievement
Deferred LTIP
shares
outstanding at
31 Dec 20243
Deferred LTIP
shares as
multiple of base
salary1 (%)
Andrew King
203,327
241,745
81,963
323,708
300%
348%
524,733
565%
Mike Powell
39,510
64,357
48,252
112,609
250%
190%
305,496
515%
1
The one-month volume weighted average share price of £11.84 as at 31 December 2024 was used in calculating the percentage figures shown above divided
by the executive's respective salary as at 31 December 2024. Total shareholding as a multiple of base salary includes BSP shares net of estimated tax of 45%.
2
BSP shares subject to service condition, net of estimated tax of 45%. All shares shown in this column were awarded as nil-cost options.
3 LTIP shares subject to service and performance conditions. All shares shown in this column were awarded as nil-cost options.
Non-executive directors (audited)
Philip Yea
Svein
Richard
Brandtzaeg
Sue Clark
Sucheta
Govil1
Anke Groth
Saki
Macozoma
Dominique
Reiniche2
Dame
Angela
Strank
Stephen
Young
Shareholding at 1 Jan 2024
(or, if later, on appointment)
27,500
1,250
4,229
—
—
441
1,000
899
2,026
Shareholding at 31 Dec 2024
(or date of resignation, if earlier)
40,000
1,130
3,845
—
500
400
909
817
1,841
1
Appointed to the Board on 1 October 2024.
2
Stepped down from the Board on 30 September 2024.
The shareholdings were impacted by the share consolidation implemented in early 2024 when the net proceeds from the sale of the
Group’s Russian assets were returned to shareholders, as disclosed in the 2023 Integrated report and in note 28 to the financial
statements.
There has been no change in the interests of the directors and their connected persons between 31 December 2024 and the date of this
report other than the amounts shown in the footnote to the ‘SIP’ table on page 134.
Mondi Group
Integrated report and financial statements 2024
133
Share awards granted to executive directors (audited)
The following tables set out the share awards granted as nil-cost options to the executive directors. All share awards are determined by
the three-day average share price commencing the day Mondi announces its results, unless stated otherwise.
Awards under BSP and LTIP
Andrew King
Type of award
Awards
held at
beginning
of year
Awards
granted
during year
Shares
lapsed
Awards
exercised
during year
Dividend
equivalents
Share price
at the date
of exercise
Date of award
Awards
held as at
31 December
2024
Release date
Status
BSP
18,970
—
—
18,970
2,270
£15.50
Mar 2021
0
Feb 2024
Vested and
exercised
BSP
64,849
—
—
—
—
—
Mar 2022
64,849
Feb 2025
Unvested
BSP
63,779
—
—
—
—
—
Mar 2023
63,779
Mar 2026
Unvested
BSP
—
20,395
—
—
—
—
May 2024
20,395
Mar 2027
Unvested
LTIP1
128,675
— 49,861
78,814
9,421
£15.50
Mar 2021
0
Feb 2024
Vested and
exercised
LTIP2
170,389
—
—
—
—
—
Mar 2022
170,389
Feb 2025
Unvested
LTIP3
175,110
—
—
—
—
—
Mar 2023
175,110
Mar 2026
Unvested
LTIP4
—
179,234
—
—
—
—
May 2024
179,234
Mar 2027
Unvested
Mike Powell
BSP
2,038
—
—
2,038
247
£15.50
Mar 2021
0
Feb 2024
Vested and
exercised
BSP
37,607
—
—
—
—
—
Mar 2022
37,607
Feb 2025
Unvested
BSP
37,761
—
—
—
—
—
Mar 2023
37,761
Mar 2026
Unvested
BSP
—
12,362
—
—
—
—
May 2024
12,362
Mar 2027
Unvested
LTIP1
74,916
— 29,029 45,887
5,487
£15.50
Mar 2021
0
Feb 2024
Vested and
exercised
LTIP2
99,201
—
—
—
—
—
Mar 2022
99,201
Feb 2025
Unvested
LTIP3
101,947
—
—
—
—
—
Mar 2023
101,947
Mar 2026
Unvested
LTIP4
—
104,348
—
—
—
—
May 2024
104,348
Mar 2027
Unvested
1
The performance conditions applying to the 2021 LTIP are set out on page 144 of the 2023 Integrated report.
2
The performance conditions applying to the 2022 LTIP are set out on page 129.
3 The performance conditions applying to the 2023 LTIP are set out on pages 144-145 of the 2023 Integrated report.
4 The performance conditions applying to the 2024 LTIP are set out on page 130.
All-employee share plans (audited)
The Group currently operates one HM Revenue & Customs approved all-employee share plan in the UK (the SIP).
Share Incentive Plan (SIP)
Employees resident in the UK are eligible to participate in the SIP. Contributions of up to £150 per month are taken from participants’
gross salary and used to purchase ordinary shares in Mondi plc each month (partnership shares). Participants receive one matching
Mondi plc ordinary share free of charge for each share purchased (matching shares). The shares are placed in trust and the matching
shares are forfeited if participants resign from the Group’s employment within three years. If the shares remain in the trust for at least
five years, they can be removed free of UK income tax and National Insurance contributions. Directors' shareholdings were impacted by
the share consolidation implemented in January 2024 when the net proceeds from the sale of the Group’s Russian assets were returned
to shareholders, as disclosed in the 2023 Integrated report and in note 28 to the financial statements. Shareholders received 10 New
Ordinary Shares for every 11 Existing Ordinary Shares that they held.
Shares held at beginning
of year
(pre share consolidation)
Partnership shares
acquired during the year
Matching shares awarded
during the year
Shares released
during the year
Total shares held as at
31 December 2024
Andrew King1
6,900
127
127
—
6,524
Mike Powell1
612
127
127
—
808
1
Since 1 January 2025 and up to the date of this report Andrew King acquired 25 partnership shares and was awarded 25 matching shares and Mike Powell acquired 25
partnership shares and was awarded 25 matching shares.
Mondi Group
Integrated report and financial statements 2024
134
Remuneration report continued
Annual report on remuneration continued
Statement of voting at Annual General Meeting
The Annual General Meeting was held on 3 May 2024. All resolutions were passed. The voting result in respect of the Remuneration
report is given below. Overall in excess of 75% of the total Group shares were voted.
Resolution
Votes for
%
Votes against
%
Votes total
% of ISC voted
Votes withheld
To approve the Remuneration report
(other than the DRP)
321,686,048
97.05
9,763,499
2.95
331,449,547
75.09%
4,181,383
The DRP was last approved at the AGM held on 4 May 2023, with 87.71% of the votes for the resolution and 12.29% against, with 896,082
withheld.
Remuneration Committee governance
The Remuneration Committee
The Remuneration Committee is a formal committee of the Board (composition of the Remuneration Committee on page 111).
Its remit is set out in terms of reference adopted by the Board. A copy of the terms of reference is available on the Group’s website
at www.mondigroup.com. The committee’s performance against these terms of reference is reviewed on an annual basis and the
committee is satisfied that it has acted in accordance with its terms of reference during the year.
The primary purposes of the committee are set out on page 87.
No director or other attendee takes part in any discussion regarding his or her personal remuneration.
The committee is authorised to seek information from any director and employee of the Group and to obtain external advice.
The committee is solely responsible for the appointment of external remuneration advisers and for the approval of their fees and
other terms.
Deloitte was appointed by the Remuneration Committee as its independent remuneration consultant with effect from 29 September 2020,
following a competitive tender process. Total fees paid to Deloitte for providing remuneration advice to the committee were determined
based on time and materials and amounted to £93,950 for the year ended 31 December 2024 (£87,225 for 2023). Deloitte also provided
other tax, payroll and due diligence services to the Mondi Group during the year. All advice to the Remuneration Committee, received
from Deloitte, was objective and independent. Deloitte is a founder member of the Remuneration Consultants Group and, as such,
voluntarily operates under the Code of Conduct in relation to executive remuneration consulting in the UK.
The committee reviews the appointment of its advisers annually and is satisfied that the advice it receives is objective and independent.
Sums paid to third parties in respect of a director’s services
No consideration was paid or became receivable by third parties for making available the services of any person as a director
of Mondi plc (‘the Company’), or while a director of the Company, as a director of any of the Company’s subsidiary undertakings,
or as a director of any other undertaking of which he/she was (while a director of the Company) a director by virtue of the
Company’s nomination, or otherwise in connection with the management of the Company or any undertaking during the year
to 31 December 2024.
Sue Clark
Chair, Remuneration Committee
Mondi Group
Integrated report and financial statements 2024
135
For the purposes of the Companies Act 2006, the disclosures below, including those incorporated by reference, together with
the Corporate governance report set out on pages 72-110, form the Directors’ report.
In addition, disclosures relating to the following items, which also form part of the Directors’ report, have been included in the
Strategic report which starts on the inside front cover of this Integrated report and finishes on page 71:
– Dividends, page 28
– Financial risk management objectives and policies, page 29
– Principal risks, pages 60-69
– Likely future developments in the business, page 7
– Research and development activities, pages 9, 20, 34, 50
– Greenhouse gas (GHG) emissions and energy consumption,
pages 42-43
– Employees, pages 37-40
Information required to be disclosed under UK Listing Rule 6.6
The UK Listing Authority Listing Rules require the disclosure of certain specified information in the annual financial report of Mondi plc.
The information required under rule 6.6 (1) in relation to interest capitalised and related tax relief can be found on page 162.
The information required under rules 6.6 (11) and (12) in relation to dividend waivers can be found on page 177. This information
is incorporated by reference into this Directors’ report.
Besides the above, the information required to be disclosed under rule 6.6 is not applicable to Mondi plc, and therefore no disclosures
have been made in this regard.
Employee and stakeholder engagement
Information relating to engagement with employees and other stakeholders, including customers and suppliers, can be found in the
Strategic report on pages 50-51 and in the Corporate governance report on pages 82-85.
Share capital
Full details of Mondi’s share capital can be found in note 23 to the financial statements.
Substantial interests
As at 31 December 2024, Mondi plc had received notifications from the following parties in the voting rights of Mondi plc. The number
of voting rights and percentage interests shown are as disclosed at the date on which the holding was notified.
Shareholder
Number of voting rights
%1
Public Investment Corporation Soc Limited
43,892,394
9.94
BlackRock Inc
34,388,089
7.06
Coronation Fund Managers
31,008,392
7.02
Allan Gray Proprietary Limited
26,512,115
6.01
Ninety One UK Ltd
21,635,121
4.90
AXA S.A.
17,210,471
4.69
Standard Life Investments Limited
16,476,021
4.49
Old Mutual plc
11,978,984
3.26
Sanlam Investment Management Proprietary Limited
10,936,128
3.00
1 Percentage provided was correct at the date of notification. No further notifications have been received under DTR 5 as at the date of this report, except as detailed below.
The following changes in interests have been notified between 1 January 2025 and the date of this report.
Date
Shareholder
Number of voting rights
%
8 January 2025
Coronation Fund Managers
30,819,311
6.98
5 February 2025
Coronation Fund Managers
30,904,741
7.00
17 February 2025
Coronation Fund Managers
30,533,396
6.92
Mondi Group
Integrated report and financial statements 2024
136
Other statutory information
Additional information for shareholders
The information for shareholders required pursuant to the Companies Act 2006 can be found on pages 219-220 of this report.
Political donations
No political donations were made during 2024 or the prior year, and it is Mondi’s policy not to make such donations.
Auditor
Each of the directors of Mondi plc at the date when this report was approved confirms that:
– so far as each of the directors is aware, there is no relevant audit information of which the Group’s auditor is unaware; and
– each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware
of any relevant audit information and to establish that the Group’s auditor is aware of that information.
PricewaterhouseCoopers LLP (PwC) has indicated its willingness to continue as auditor of Mondi plc. The Board has decided that
a resolution to reappoint PwC will be proposed at the Annual General Meeting scheduled to be held on 8 May 2025.
The reappointment of PwC has the support of the Audit Committee, which will be responsible for determining its audit fee on behalf
of the directors (see page 101 for more information).
Note 4 to the financial statements sets out the auditor’s fees, both for audit and non-audit work.
Events occurring after 31 December 2024
Aside from the final ordinary dividend proposed for 2024 (see note 10), there have been no material reportable events since
31 December 2024.
Annual General Meeting
The Annual General Meeting will be held at 10:30 (UK time) on Thursday 8 May 2025 at Mercedes-Benz World, Brooklands Drive,
Weybridge KT13 0SL, UK. The notice convening the meeting, which is sent separately to shareholders, provides further details including
the business to be considered and explanatory notes for each resolution. The notice is available on the Mondi Group website at:
www.mondigroup.com.
This Directors’ report was approved by the Board on 19 February 2025 and is signed on its behalf.
Jenny Hampshire
Company Secretary
Mondi plc
Ground Floor, Building 5
The Heights
Brooklands
Weybridge
Surrey
KT13 0NY
Registered No. 6209386
19 February 2025
Mondi Group
Integrated report and financial statements 2024
137
Financial statements
Directors’ responsibility statement
139
Independent auditors' report to the
members of Mondi plc
140
Financial statements
Consolidated income statement
150
Consolidated statement
of comprehensive income
151
Consolidated statement
of financial position
152
Consolidated statement
of changes in equity
153
Consolidated statement
of cash flows
154
Notes to the consolidated financial
statements:
Note 1 Basis of preparation
155
Note 2 Operating segments
156
Notes 3–8 Notes to the
consolidated income statement
160
Notes 9–10 Per share measures
165
Notes 11–20 Notes to the
consolidated statement of
financial position
167
Notes 21–24 Capital management
174
Note 25 Retirement benefits
180
Notes 26–27 Notes to the
consolidated statement of cash flows
184
Notes 28–34 Other disclosures
187
Note 35 Accounting policies
195
Mondi plc parent company balance sheet
203
Mondi plc parent company
statement of changes in equity
204
Notes to the Mondi plc parent
company financial statements
205
Mondi Group
Integrated report and financial statements 2024
138
Financial statements introduction
The directors are responsible for preparing the Integrated report and financial statements 2024 in accordance with applicable law
and regulation.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared
the Group’s consolidated financial statements in accordance with UK-adopted International Accounting Standards and the Mondi plc
parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, comprising FRS 101, 'Reduced Disclosure Framework', and applicable law). In preparing the Group’s consolidated
financial statements, the directors have also elected to comply with IFRS Accounting Standards as issued by the International Accounting
Standards Board (IFRS Accounting Standards).
Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view
of the state of affairs of the Group and parent company and of the profit or loss of the Group for that period. In preparing the financial
statements, the directors are required to:
– select suitable accounting policies and then apply them consistently;
– state whether applicable UK-adopted International Accounting Standards and IFRS Accounting Standards have been followed for
the Group’s consolidated financial statements and United Kingdom Accounting Standards, comprising FRS 101, have been followed
for the parent company financial statements, subject to any material departures disclosed and explained in the financial statements;
– make judgements and accounting estimates that are reasonable and prudent; and
– prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and parent company
will continue in business.
The directors are also responsible for safeguarding the assets of the Group and parent company and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s and
parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and parent company
and enable them to ensure that the financial statements and the Remuneration report comply with the Companies Act 2006.
The directors are responsible for the maintenance and integrity of the Group’s website. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Directors' confirmations
The directors consider that the Integrated report and financial statements 2024, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess the Group’s and parent company’s position and performance, business
model and strategy.
Each of the directors, whose names and functions are listed in the Governance section of the Integrated report confirm that, to the best
of their knowledge:
– the Group’s consolidated financial statements, which have been prepared in accordance with UK-adopted International Accounting
Standards and IFRS Accounting Standards, give a true and fair view of the assets, liabilities, financial position and profit of the Group;
– the parent company financial statements, which have been prepared in accordance with United Kingdom Accounting Standards,
comprising FRS 101, give a true and fair view of the assets, liabilities and financial position of the Mondi plc parent company; and
– the Strategic report includes a fair review of the development and performance of the business and the position of the Group
and parent company, together with a description of the principal risks and uncertainties that they face.
The Directors’ responsibility statement was approved by the Board on 19 February 2025 and is signed on its behalf by:
Andrew King
Mike Powell
Director
Director
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Integrated report and financial statements 2024
139
Directors’ responsibility statement
Report on the audit of the financial statements
Opinion
In our opinion:
– Mondi plc’s group financial statements and parent company financial statements (the “financial statements”) give a true and fair view
of the state of the group’s and of the parent company’s affairs as at 31 December 2024 and of the group’s profit and the group’s cash
flows for the year then ended;
– the group financial statements have been properly prepared in accordance with UK-adopted international accounting standards as
applied in accordance with the provisions of the Companies Act 2006;
– the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”, and applicable law);
and
– the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Integrated report and financial statements 2024 (the “Annual Report”),
which comprise: the consolidated statement of financial position and the Mondi plc parent company balance sheet as at
31 December 2024; the consolidated income statement, the consolidated statement of comprehensive income, the consolidated
statement of cash flows and the consolidated and Mondi plc parent company statements of changes in equity for the year then ended;
and the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities
under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.
Other than those disclosed in note 4, we have provided no non-audit services to the parent company or its controlled undertakings
in the period under audit.
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140
Independent auditors’ report to the members of Mondi plc
Our audit approach
Overview
Audit scope
– We identified twenty nine components (2023: twenty eight) requiring an audit of their complete financial information, where a full
scope audit was performed by the component teams for the purpose of the group audit. These twenty nine components include the
components that are identified as significant due to size and significant due to risk. Group level work was performed at two (2023:
two) of these components, which include treasury operations. An audit of specific financial statement line items was performed at a
further eight components (2023: ten) and group level procedures on selected transactions or balances were performed at three
components (2023: four).
– In aggregate, the locations subject to audit procedures represented approximately 77% (2023: 77%) of the group’s revenue.
Key audit matters
– Audit of the fair value of forestry assets (group)
– Valuation of property, plant and equipment (group)
– Impairment indicator assessment of the parent company investment in subsidiaries (parent)
Materiality
– Overall group materiality: €42 million (2023: €35 million) based on approximately 5% of a three-year rolling-average of profit before
tax ("PBT") adjusted for special items (2023: based on approximately 5% of PBT from continuing operations adjusted for special items).
– Overall parent company materiality: €48 million (2023: €47 million) based on approximately 1% of total assets.
– Performance materiality: €31 million (2023: €26 million) (group) and €36 million (2023: €35 million) (parent company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)
identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures
thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
Divestment of Russian operations (group), and application of hyperinflation accounting related to subsidiaries in Türkiye (group),
which were key audit matters last year, are no longer included because of the following reasons:
– The completion of the disposal transaction of the group’s Russian operations in the prior year resulted in a decreased audit risk in the
current year; and.
– The audit risk relating to the calculation of hyperinflation adjustments has been reduced as IAS 29 accounting has been applied by the
group for the third year, with no further changes in the associated accounting process in the current year, following the successful
automation of certain areas in the prior year.
Mondi Group
Integrated report and financial statements 2024
141
Audit of the fair value of forestry assets (group)
The group’s forestry assets are held at fair value and are material,
amounting to €503 million as at 31 December 2024 (2023:
€519 million). The determination of the fair value is dependent
upon various assumptions that are subject to significant
estimation. The most significant assumptions included in the
valuation model relate to the determination of the estimated net
selling prices to be applied to the forestry assets, the conversion
factor used to convert hectares of land under afforestation to
tonnes of standing timber and the risk premium applied to
immature and mature timber, alongside any manual adjustments
that are made outside the underlying model – leading to a fair
value gain or loss that could also be material. The fair value gain in
the year ended 31 December 2024, which is recorded in the
consolidated income statement, is €7 million (2023: €128 million).
Given the estimation inherent in the determination of fair value
and sensitivity of the fair value gain to fluctuations in the inputs,
resulting in volatility of the fair value year-on-year, this was
determined to be a key audit matter. Refer to notes 15 and 35,
and the Audit Committee’s views set out on page 103.
We evaluated the group’s valuation model used for calculating
the fair value of the forestry assets against the criteria in IAS 41,
‘Agriculture’ and IFRS 13, ‘Fair Value Measurement’. In assessing
the valuation of the forestry assets, our procedures primarily
consisted of substantive tests of detail, where we assessed
the appropriateness of the inputs and the assumptions used
in the valuation model taking into account supporting evidence
(where available), and analytical procedures.
We compared the inputs and assumptions in the 31 December
2023 valuation with the 31 December 2024 valuation to identify,
and subsequently investigate, any unexpected variances.
Our analytical procedures also focused on comparisons of
the assumptions and inputs with industry averages. In addition,
we performed procedures over the mathematical accuracy of
the valuation model.
We compared the estimated net selling prices used in the model
with third party evidence and the inputs used in the conversion
factor to convert hectares of land under afforestation to
tonnes of standing timber with historical evidence, as well as
benchmarking the conversion factor against industry data.
Forestry assets were physically verified on a sample basis
including using satellite imaging. We also assessed the risk
premium applied in the valuation model to immature and mature
timber by comparing the factors taken into account in the risk
adjustment with historical experience, industry data and other
evidence. We evaluated whether the climate change risks relevant
to the valuation of the forestry assets were appropriately included
within the model, by comparison with historical data and the
climate risk assessments performed by group management.
Adjustments outside the underlying model have been tested
through challenging assumptions made by management,
independently reperforming the calculations and obtaining
supporting evidence, on a sample basis.
We evaluated the director’s assessment of the sensitivity of
the valuation to reasonably possible changes in assumptions
and we considered the appropriateness of the related disclosures
in note 15 and note 35 to the financial statements. Based on
the procedures performed, we considered the fair value of
forestry assets reported to be reasonable.
Key audit matter
How our audit addressed the key audit matter
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142
Independent auditors’ report to the members of Mondi plc continued
Valuation of property, plant and equipment (group)
The group has property, plant and equipment (“PPE”) of
€5,160 million (2023: €4,619 million). Management has assessed
whether indicators of impairment or impairment reversal existed
in relation to PPE as at 31 December 2024, performed at the
cash generating unit (“CGU”) level, being the lowest level at which
largely independent cash inflows are generated. There is
judgement involved in the determination of appropriate CGUs,
the assessment of whether an indicator of impairment or
impairment reversal exists for a specific CGU and the estimation
of the recoverable amount of the relevant CGU in order to
assess whether an impairment exists.
The determination of recoverable amount, being the higher of
value in use ("VIU") and fair value less costs to dispose ("FVLCD")
reflects management’s consideration of key internal inputs and
external market conditions, such as future paper prices, customer
demand and forecast growth rates, which all impact future cash
flows, and the determination of the most appropriate discount
rate. Given the inherent judgement required and the quantum of
the PPE balances for certain CGUs with impairment indicators, we
considered it to be a key audit matter. Refer to notes 11 and 35
of the group financial statements, and the Audit Committee’s
views set out on page 103.
We satisfied ourselves as to the appropriateness of the
judgement related to the level at which impairment of these
assets is assessed, being the lowest level at which largely
independent cash inflows can be identified (the “CGU”).
We evaluated management’s assessment of impairment and
impairment reversal indicators by comparing actual performance
with the budget and considering other internal and external
factors, including those set out in IAS 36 ‘Impairment of Assets’.
In relation to the CGUs where impairment indicators were
identified, we challenged the basis for management’s estimates of
future cash flows with reference to historical trading performance,
working capital assumptions, market expectations and future
climate change considerations. We also checked the mathematical
accuracy of management’s valuation models and agreed them to
the Board approved budgets. We compared the prior year budget
and actual figures and challenged management on any significant
variation to assess their historical forecasting accuracy. We used
our internal valuation experts to independently recalculate the
discount rates and evaluate the long-term growth assumptions
applied by management and where relevant, we engaged our
local internal valuation experts to obtain insights into the local
market for a number of the key inputs when assessing the
reasonableness of management’s discount rates and growth rates.
Where management had obtained independent, third party
valuations to determine the fair value less costs to dispose of
individual assets of specific CGUs, we assessed the external
valuation reports and the competence, capabilities and objectivity
of these experts.
We considered the appropriateness of the disclosures in note 11
to the financial statements. Based on the procedures performed,
we considered the valuation of PPE reported to be reasonable.
Impairment indicator assessment of the parent company investment in subsidiaries (parent)
The investment in Mondi South Africa (Pty) Limited held by
Mondi plc at 31 December 2024 amounts to €666 million
(2023: €666 million), with an accumulated impairment of
€117 million. No further impairment charges have been
recorded in the year as there was no impairment trigger
identified. The assessment of whether there is an indicator
of impairment or of an impairment reversal requires judgement
in relation to the internal and external factors considered.
No indicator of impairment or impairment reversal was identified
based on consideration of the qualitative and quantitative factors
outlined in IAS 36 ‘Impairment of Assets’. Given the inherent
judgement required and the quantum of the balances in the
parent company’s balance sheet, this matter was determined
to be a key audit matter. Refer to notes 1 and 6 of the parent
company financial statements.
We considered the adequacy and completeness of management’s
impairment and impairment reversal indicator analysis as at
31 December 2024 by assessing it against the requirements
of IAS 36 ‘Impairment of Assets’. We also validated the accuracy
of the data supporting the trigger assessment. We considered
the appropriateness of the disclosures in the parent company
financial statements. Based on the procedures performed, we
considered the carrying value of the investment in subsidiaries to
be reasonable.
Key audit matter
How our audit addressed the key audit matter
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143
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the group and the parent company, the accounting processes and controls, and the
industry in which they operate.
In establishing the overall approach to the group audit, we determined the type of work that needed to be performed at components
by us, as the group engagement team, or component auditors operating under our instruction.
Our audit included full scope audits of twenty nine components (2023: twenty eight). Out of these, we identified two components as
significant due to size and four components as significant due to risk. We obtained full scope audit reporting for these twenty nine
components. Together, these components were in ten countries (2023: ten), representing the group’s principal businesses, and
accounted for 64% (2023: 62%) of the group’s revenue from continuing operations. The group engagement team performed work at two
of these components, with component auditors operating under our instruction performing the work on the other full scope components.
An audit of specific financial statement line items was performed at a further eight (2023: ten) components, with the component
auditors operating under our instruction. In addition, the group engagement team performed specified procedures at three components
(2023: four) related to transactions or balances. In aggregate, the locations subject to audit procedures represented approximately 77%
(2023: 77%) of the group’s revenue from continuing operations.
The components included within the scope of our audit were determined based on the individual component's contribution to the
group’s key financial statement line items (in particular revenue and profit before tax adjusted for special items) and relative contribution
to risks identified at group level.
Where work was performed by component auditors, we determined the level of involvement we needed to have in the audit work at
components to be able to conclude on whether sufficient appropriate audit evidence had been obtained as a basis for our opinion on
the group financial statements as a whole.
We issued formal written instructions to all component auditors setting out the audit work to be performed by each of them and
maintained regular communication with them throughout the audit cycle. These interactions included attending certain component
audit clearance meetings, in person or by video conferencing, as well as reviewing and assessing any matters reported. We also held
an in-person and a virtual planning meeting with the component auditors ahead of the year-end audit to agree on effective working
arrangements and key areas of audit focus.
Senior members of the group engagement team visited component teams in Austria, Poland, Slovakia, South Africa and Türkiye.
These visits included meetings with local management and with the component auditors, and typically involved operating site tours.
In addition to these on-site visits, we maintained regular virtual communication with the component teams, and as part of our
oversight procedures, we reviewed selected audit working papers for these components.
For non-full scope components which were not considered inconsequential components, we performed targeted risk assessment
procedures.
Audit procedures were performed centrally at the group level in relation to various balances and activities accounted for centrally,
including consolidation adjustments, impairment of goodwill, impairment of property, plant and equipment, taxation, and non-recurring
matters classified as special items. We also supported the work of certain component teams through centralised procedures over
taxation matters, IT systems and impairment.
Our audit of the parent company financial statements was undertaken by the group audit team and included substantive audit
procedures over all material balances and transactions.
The impact of climate risk on our audit
In planning our work, including identifying areas of audit risk and determining an appropriate response, we were mindful of the increased
focus on the impact of climate change risk on companies and their financial reporting, and also that the group has identified climate
change as a principal risk. Climate change risk is expected to have a significant impact on the group’s business as the operations and
strategy of the group evolve to address the potential physical and transition risks that could arise and the opportunities associated
with climate change. Climate change initiatives and commitments impact the group in a variety of ways, as described within the
Integrated Report.
The Board has made commitments to achieve Net-Zero GHG emissions reduction targets by 2050. As part of our audit we made
enquiries of management to understand the process management adopted to assess the extent of the potential impact of climate
change risk on the group’s financial statements, including considering the Mondi Action Plan 2030 (“MAP2030”) science-based targets
as detailed within the Integrated Report.
We challenged the completeness of management’s climate risk assessment by reading external reporting made by management,
including the Sustainable Development Report and Carbon Disclosure Project ("CDP") submissions, and making management aware of
any apparent internal inconsistencies there may be in its climate reporting by reviewing management’s underlying workings and support.
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Independent auditors’ report to the members of Mondi plc continued
We also considered the key financial statement line items and estimates that are most likely to be impacted by climate risks, as set out
in note 1 of the group financial statements. Given that the impact of climate change on the group is likely, principally, to crystallise in
the medium to long-term, we concluded that the risks of material misstatement in the financial statements associated with climate
change related primarily to the valuation of forestry assets and estimates of future cash flows, which are used, for example, when testing
assets for impairment. Management considers that the impact of climate change currently does not give rise to a material financial
statement impact.
We also considered the consistency of the disclosures in relation to climate change (including the disclosures in relation to the
Task Force on Climate-related Financial Disclosures ("TCFD") made in the other information within the Integrated Report with the
financial statements and our knowledge from our audit. This included:
– Understanding which models management has used in the TCFD scenario analysis and considering whether the assumptions in the
models are consistent with the assumptions used in the financial statements; and
– Challenging the consistency of the disclosures given in the narrative reporting within the other information with the impact disclosed
within the financial statements.
Where applicable, our audit response to climate change risk is included in relevant key audit matters above. Our procedures did not
identify any material impact in the context of our audit of the financial statements as a whole, or our key audit matters for the year ended
31 December 2024.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually
and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Financial statements – group
Financial statements – parent company
Overall materiality
€42 million (2023: €35 million).
€48 million (2023: €47 million).
How we
determined it
approximately 5% of a three-year rolling-average of PBT
adjusted for special items (2023: based on approximately
5% of PBT from continuing operations adjusted for
special items)
approximately 1% of total assets
Rationale for
benchmark applied
For overall group materiality, we chose an adjusted PBT
from continuing operations based on a three-year
rolling-average as the benchmark. The materiality
benchmark has been changed from an annual measure
in the prior year to a three-year rolling-average of
adjusted profit before tax. This is to reflect the cyclical
nature of the markets in which the group operates. The
adjusted profit before tax measure removes the impact
of significant items which do not recur from year to year
or otherwise significantly affect the underlying trend
of performance from continuing operations. This is
the metric against which the performance of the
group is most commonly assessed by management
and reported to members. We chose 5% as this is
consistent with the quantitative materiality threshold
typically used for other profit-oriented companies.
For overall Mondi plc parent company materiality,
we determined the materiality based on total assets,
which is more appropriate than a performance-related
measure as the parent company is an investment
holding company for the Group. Using professional
judgement, we have determined materiality for this year
at €48 million (2023: €47 million), which equates to
approximately 1% of the current year’s total assets.
For each component in the scope of our group audit, we allocated a materiality that is less than our overall group materiality. The range
of materiality allocated across components was €2 million to €33 million.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit
and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample
sizes. Our performance materiality was 75% (2023: 75%) of overall materiality, amounting to €31 million (2023: €26 million) for the group
financial statements and €36 million (2023: €35 million) for the parent company financial statements.
In determining the performance materiality, we considered a number of factors – the history of misstatements, risk assessment and
aggregation risk and the effectiveness of controls – and concluded that an amount at the middle of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above €3.5 million
(group audit) (2023: €3 million) and €3.5 million (parent company audit) (2023: €3 million) as well as misstatements below those
amounts that, in our view, warranted reporting for qualitative reasons.
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Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group's and the parent company’s ability to continue to adopt the going concern basis
of accounting included:
– We assessed management’s going concern cash flow projections, agreeing them to the latest Board approved forecasts;
– We evaluated management’s future cash flows with reference to historical forecasting accuracy, historical trading performance, market
expectations from industry or economic reports and management's capital investment plans;
– We tested the available committed debt facilities, including checking that the key terms were applied appropriately in the going
concern assessment in relation to the maturity dates of available committed debt facilities and we have satisfied ourselves that the
refinancing of the maturing debt is appropriate to include in the base case scenario. We also checked that there are no financial
covenants in these facilities;
– We considered the potential downside sensitivities that management had applied and considered their likelihood and further
challenged management on the modelling of a more severe scenario and the associated impact on committed liquidity;
– We assessed management’s reverse stress test and considered the likelihood of events arising that could erode liquidity within the
forecast period;
– We assessed the performance of the group since year end and compared it with the Board approved cash flow forecast;
– We read the basis of preparation note to the financial statements and validated that it accurately described management’s going
concern considerations; and
– We reviewed management’s draft disclosures to ensure the different scenarios modelled in the going concern assessment were
appropriately and clearly described.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the group's and the parent company’s ability to continue as a going concern for a period
of at least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group's and the
parent company's ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate
to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report
thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report,
any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform
procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other
information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by the UK Companies
Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and
matters as described below.
Strategic report and Directors’ report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors'
report for the year ended 31 December 2024 is consistent with the financial statements and has been prepared in accordance with
applicable legal requirements.
In light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit,
we did not identify any material misstatements in the Strategic report and Directors' report.
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Independent auditors’ report to the members of Mondi plc continued
Directors’ Remuneration
In our opinion, the part of the Remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the
corporate governance statement relating to the parent company’s compliance with the provisions of the UK Corporate Governance
Code specified for our review. Our additional responsibilities with respect to the corporate governance statement as other information
are described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance
statement, included within the Strategic report and the Corporate governance report is materially consistent with the financial statements
and our knowledge obtained during the audit, and we have nothing material to add or draw attention to in relation to:
– The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
– The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and
an explanation of how these are being managed or mitigated;
– The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis
of accounting in preparing them, and their identification of any material uncertainties to the group’s and parent company’s ability
to continue to do so over a period of at least twelve months from the date of approval of the financial statements;
– The directors’ explanation as to their assessment of the group's and parent company’s prospects, the period this assessment covers
and why the period is appropriate; and
– The directors’ statement as to whether they have a reasonable expectation that the parent company will be able to continue in
operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention
to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the group and parent company was substantially less in
scope than an audit and only consisted of making inquiries and considering the directors’ process supporting their statement; checking
that the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and considering whether the
statement is consistent with the financial statements and our knowledge and understanding of the group and parent company and their
environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial statements and our knowledge obtained during the audit:
– The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides
the information necessary for the members to assess the group’s and parent company's position, performance, business model
and strategy;
– The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
– The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the parent company’s
compliance with the Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules
for review by the auditors.
Mondi Group
Integrated report and financial statements 2024
147
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Directors' responsibility statement, the directors are responsible for the preparation of the financial
statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also
responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company’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 the parent company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations
related to breaches of environmental regulations, and we considered the extent to which non-compliance might have a material effect on
the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the
Listing Rules of the UK Financial Conduct Authority, the Companies Act 2006 and relevant tax legislation. We evaluated management’s
incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and
determined that the principal risks were related to posting inappropriate journal entries to increase revenue and management bias in
accounting estimates and judgements. The group engagement team shared this risk assessment with the component auditors so that
they could include appropriate audit procedures in response to such risks in their work. Audit procedures performed by the group
engagement team and/or component auditors included:
– Made enquiries with management, Internal Audit and the group’s internal legal counsel, including consideration of potential instances of
non-compliance with laws and regulation and fraud;
– Assessing matters reported through the group’s whistleblowing helpline and the results of management’s investigation of such matters;
– Testing controls in relation to IT systems within the group, in part to identify whether opportunities exist to carry out fraud through
inappropriate access to systems and data;
– Testing a sample of journal entries posted to revenue based on specific risk criteria; and
– Challenging assumptions and judgements made by management in its significant accounting estimates or judgements as a whole and
assessing whether there has been any management bias in aggregate.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance
with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not
detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques.
However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek
to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to
draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the parent company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, 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.
Mondi Group
Integrated report and financial statements 2024
148
Independent auditors’ report to the members of Mondi plc continued
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
– we have not obtained all the information and explanations we require for our audit; or
– adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
from branches not visited by us; or
– certain disclosures of directors’ remuneration specified by law are not made; or
– the parent company financial statements and the part of the Remuneration report to be audited are not in agreement with the
accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members on 11 May 2017 to audit the financial
statements for the year ended 31 December 2017 and subsequent financial periods. The period of total uninterrupted engagement is
eight years, covering the years ended 31 December 2017 to 31 December 2024.
Other matter
The company is required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules to include these financial
statements in an annual financial report prepared under the structured digital format required by DTR 4.1.15R – 4.1.18R and filed on the
National Storage Mechanism of the Financial Conduct Authority. This auditors’ report provides no assurance over whether the structured
digital format annual financial report has been prepared in accordance with those requirements.
Andrew Hammond
(Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
19 February 2025
Mondi Group
Integrated report and financial statements 2024
149
2024
2023
€ million
Notes
Underlying
Special items
(note 3)
Total
Underlying
Special items
(note 3)
Total
From continuing operations
Group revenue
2
7,416
—
7,416
7,330
—
7,330
Materials, energy and consumables used
(3,696)
—
(3,696)
(3,971)
—
(3,971)
Variable selling expenses
(645)
—
(645)
(618)
—
(618)
Gross margin
3,075
—
3,075
2,741
—
2,741
Maintenance and other indirect expenses
(425)
—
(425)
(374)
—
(374)
Personnel costs
5
(1,228)
(18)
(1,246)
(1,087)
(9)
(1,096)
Other net operating expenses
(373)
(58)
(431)
(79)
(14)
(93)
EBITDA
2
1,049
(76)
973
1,201
(23)
1,178
Depreciation, amortisation and impairments
(443)
(74)
(517)
(411)
(4)
(415)
Operating profit
2
606
(150)
456
790
(27)
763
Net loss from joint ventures
16
(3)
—
(3)
(5)
—
(5)
Impairment of investments in joint ventures
16
—
—
—
(5)
—
(5)
Net finance costs
6
(70)
—
(70)
(73)
—
(73)
Investment income
6
30
—
30
45
—
45
Foreign currency (losses)/gains
6
(3)
—
(3)
1
—
1
Finance costs
6
(97)
—
(97)
(119)
—
(119)
Net monetary (loss)/gain arising from
hyperinflationary economies
7
(5)
—
(5)
2
—
2
Profit before tax
528
(150)
378
709
(27)
682
Tax (charge)/credit
8a
(117)
1
(116)
(167)
6
(161)
Profit from continuing operations
411
(149)
262
542
(21)
521
From discontinued operations
Loss from discontinued operations
28
—
(655)
Profit/(loss) for the year
262
(134)
Attributable to:
Non-controlling interests
33
44
19
Shareholders
218
(153)
Earnings per share (EPS) attributable to
shareholders1
euro cents
From continuing operations
Basic EPS
9
49.1
103.5
Diluted EPS
9
49.1
103.5
Basic underlying EPS
9
82.7
107.8
Diluted underlying EPS
9
82.6
107.8
From continuing and discontinued operations
Basic EPS
9
49.1
(31.5)
Diluted EPS
9
49.1
(31.5)
Note:
1
On 13 February 2024, the Group returned the net proceeds from the sale of the Group’s Russian assets to its shareholders by way of a special dividend. In addition, in
order to maintain the comparability, so far as possible, of Mondi plc’s share price before and after the special dividend, the special dividend was accompanied by a share
consolidation, which took effect on 29 January 2024, resulting in shareholders receiving 10 new ordinary shares for every 11 existing ordinary shares. Further details are
provided in notes 9, 10 and 23.
Mondi Group
Integrated report and financial statements 2024
150
Consolidated income statement
for the year ended 31 December 2024
2024
2023
€ million
Before tax
amount
Tax
credit
Net of tax
amount
Before tax
amount
Tax
credit
Net of tax
amount
Profit/(loss) for the year
262
(134)
Items that may subsequently be or have been reclassified to the
consolidated income statement
Fair value losses arising from cash flow hedges of continuing operations
(2)
1
(1)
—
—
—
Exchange differences on translation of continuing non-euro operations
75
—
75
(70)
—
(70)
Exchange differences on translation of discontinued non-euro
operations (see note 28)
—
—
—
(227)
—
(227)
Reclassification of foreign currency translation reserve to the
consolidated income statement on disposal of businesses of
discontinued operations (see note 28)
—
—
—
633
—
633
Items that will not subsequently be reclassified to the consolidated
income statement
Remeasurements of retirement benefits plans of continuing operations:
(2)
—
(2)
(23)
7
(16)
Return on plan assets
(5)
(3)
Actuarial gains arising from changes in demographic assumptions
—
1
Actuarial gains/(losses) arising from changes in financial assumptions
7
(4)
Actuarial losses arising from experience adjustments
(4)
(17)
Other comprehensive income for the year
71
1
72
313
7
320
Other comprehensive income/(expense) attributable to:
Non-controlling interests
11
(3)
Shareholders
61
323
Total comprehensive income attributable to:
Non-controlling interests
55
16
Shareholders
279
170
Total comprehensive income/(expense) attributable to shareholders
arises from:
Continuing operations
279
419
Discontinued operations
—
(249)
Total comprehensive income for the year
334
186
Mondi Group
Integrated report and financial statements 2024
151
Consolidated statement of comprehensive income
for the year ended 31 December 2024
€ million
Notes
2024
2023
Property, plant and equipment
11
5,160
4,619
Goodwill
13
767
765
Intangible assets
14
70
68
Forestry assets
15
503
519
Investments in joint ventures
16
5
8
Financial instruments
29
28
Deferred tax assets
8b
22
24
Net retirement benefits asset
25
3
5
Other non-current assets
3
5
Total non-current assets
6,562
6,041
Inventories
17
1,194
1,049
Trade and other receivables
18
1,275
1,254
Current tax assets
22
14
Financial instruments
10
14
Cash and cash equivalents
27b
278
1,592
Total current assets
2,779
3,923
Total assets
9,341
9,964
Short-term borrowings
22
(63)
(559)
Trade and other payables
19
(1,281)
(1,219)
Current tax liabilities
(67)
(78)
Provisions
20
(65)
(21)
Financial instruments
(9)
(4)
Total current liabilities
(1,485)
(1,881)
Medium- and long-term borrowings
22
(1,952)
(1,460)
Net retirement benefits liability
25
(161)
(159)
Deferred tax liabilities
8b
(342)
(322)
Provisions
20
(32)
(27)
Other non-current liabilities
(19)
(19)
Total non-current liabilities
(2,506)
(1,987)
Total liabilities
(3,991)
(3,868)
Net assets
5,350
6,096
Equity
Share capital
23
97
97
Own shares
23
(20)
(17)
Retained earnings
4,582
5,434
Other reserves
23
198
141
Total attributable to shareholders
4,857
5,655
Non-controlling interests in equity
33
493
441
Total equity
5,350
6,096
The Group’s consolidated financial statements on pages 150-202 were authorised for issue by the Board on 19 February 2025 and were
signed on its behalf by:
Andrew King
Mike Powell
Director
Director
Mondi plc company registered number: 6209386
Mondi Group
Integrated report and financial statements 2024
152
Consolidated statement of financial position
as at 31 December 2024
€ million
Share
capital
Own shares
Retained
earnings
Other
reserves
Equity
attributable to
shareholders
Non-
controlling
interests
Total
equity
At 1 January 2023
97
(16)
5,895
(182)
5,794
460
6,254
Total comprehensive income/(expense) for the
year:
—
—
(153)
323
170
16
186
(Loss)/profit for the year
—
—
(153)
—
(153)
19
(134)
Other comprehensive income/(expense)
—
—
—
323
323
(3)
320
Hyperinflation monetary adjustment
—
—
16
(2)
14
1
15
Transactions with shareholders in their capacity
as shareholders
Dividends
—
—
(345)
—
(345)
(7)
(352)
Purchases of own shares
—
(8)
—
—
(8)
—
(8)
Distribution of own shares
—
7
(7)
—
—
—
—
Mondi share schemes’ charge
—
—
—
9
9
—
9
Issue of shares under employee share schemes
—
—
7
(7)
—
—
—
Non-controlling interests bought out
—
—
21
—
21
(29)
(8)
At 31 December 2023
97
(17)
5,434
141
5,655
441
6,096
Total comprehensive income for the year:
—
—
218
61
279
55
334
Profit for the year
—
—
218
—
218
44
262
Other comprehensive income
—
—
—
61
61
11
72
Hyperinflation monetary adjustment (see note 7)
—
—
11
(4)
7
—
7
Transactions with shareholders in their capacity
as shareholders
Dividends (see note 10)
—
—
(1,081)
—
(1,081)
(6)
(1,087)
Purchases of own shares
—
(12)
—
—
(12)
—
(12)
Distribution of own shares
—
9
(9)
—
—
—
—
Mondi share schemes’ charge (see note 24)
—
—
—
9
9
—
9
Issue of shares under employee share schemes
—
—
9
(9)
—
—
—
Injection from non-controlling interests
—
—
—
—
—
3
3
At 31 December 2024
97
(20)
4,582
198
4,857
493
5,350
Mondi Group
Integrated report and financial statements 2024
153
Consolidated statement of changes in equity
for the year ended 31 December 2024
€ million
Notes
2024
2023
Cash flows from operating activities
Cash generated from continuing operations
27a
970
1,312
Dividends received from other investments
1
2
Income tax paid
(120)
(178)
Net cash generated from operating activities of discontinued operations
28
—
223
Net cash generated from operating activities
851
1,359
Cash flows from investing activities
Investment in property, plant and equipment
2
(933)
(830)
Investment in intangible assets
14
(13)
(16)
Investment in forestry assets
15
(48)
(48)
Proceeds from the disposal of property, plant and equipment
17
25
Proceeds from the disposal of financial asset investments
—
2
Acquisition of businesses, net of cash and cash equivalents
26
(6)
(37)
Loans advanced to related and external parties
—
(1)
Interest received
32
38
Other investing activities
15
17
Net cash generated from investing activities of discontinued operations
28
—
368
Net cash used in investing activities
(936)
(482)
Cash flows from financing activities
Proceeds from issue of Eurobonds
27c
496
—
Repayment of Eurobonds
27c
(500)
—
Proceeds from medium- and long-term borrowings
27c
215
—
Repayment of medium- and long-term borrowings
27c
(215)
—
Proceeds from short-term borrowings
27c
9
16
Repayment of short-term borrowings
27c
(18)
(33)
Repayment of lease liabilities
27c
(26)
(22)
Interest paid
27c
(44)
(50)
Dividends paid to shareholders
10
(1,081)
(345)
Dividends paid to non-controlling interests
(6)
(7)
Purchases of own shares
(12)
(8)
Injection from non-controlling interests
3
—
Non-controlling interests bought out
—
(8)
Net cash outflow from debt-related derivative financial instruments
27c
(47)
(77)
Net cash used in financing activities of discontinued operations
28
—
(7)
Net cash used in financing activities
(1,226)
(541)
Net (decrease)/increase in cash and cash equivalents
(1,311)
336
Cash and cash equivalents at beginning of year
1,592
1,381
Cash movement in the year
27c
(1,311)
336
Effects of changes in foreign exchange rates
27c
(12)
(125)
Cash and cash equivalents at end of year
27b
269
1,592
Mondi Group
Integrated report and financial statements 2024
154
Consolidated statement of cash flows
for the year ended 31 December 2024
1 Basis of preparation
These consolidated financial statements as at and for the year ended 31 December 2024 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 consolidated financial statements have been 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 material
accounting policies adopted are set out in note 35 and were applied consistently throughout the year and preceding year.
The Group also applies IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB), and there are no
differences with applying IFRS Accounting Standards adopted for use in the UK which may significantly or materially affect the Group’s
accounting policies.
The consolidated financial statements have been prepared on a going concern basis. The directors have reviewed the Group’s budget and
considered the assumptions contained in the budget, including consideration of the principal risks which may impact the Group’s performance in
the 18 months following the balance sheet date and considerations of the period immediately thereafter. The Group has a strong balance sheet.
At 31 December 2024, the Group had a liquidity position of €1,028 million, comprising €750 million of undrawn committed debt facilities
and cash and cash equivalents of €278 million available. As the Group’s debt facilities and loan agreements contain no financial
covenants, in performing its going concern assessment the directors have focused on liquidity. The assessment of going concern is
further described in the Strategic report under the heading Going concern on page 71, which is incorporated by reference into these
financial statements. Based on this evaluation, the Board considered it appropriate to prepare the consolidated financial statements
on the going concern basis.
The consolidated financial statements have been prepared under the historical cost basis of accounting, as modified by forestry assets,
pension assets, certain financial assets and financial liabilities held at fair value through profit and loss, assets acquired and liabilities
assumed in a business combination and accounting in hyperinflationary economies.
The Group presents certain measures of financial performance, position or cash flows that are not defined or specified according to IFRS
Accounting Standards and UK-adopted International Accounting Standards. These measures, referred to as Alternative Performance
Measures (APMs), are defined on pages 216-218.
Critical accounting judgements and significant accounting estimates
The preparation of the Group’s consolidated financial statements requires the use of accounting estimates which, by definition, may differ
from actual results. The estimates are based on management’s best information available about current circumstances and future events.
The critical accounting judgements and significant accounting estimates with a significant risk of a material change to the carrying value
of assets and liabilities within the next year in terms of IAS 1, 'Presentation of Financial Statements', are:
Significant accounting estimates
– Fair value of forestry assets – refer to note 15
– Actuarial valuations of retirement benefit obligations – refer to note 25
Other areas of judgement and accounting estimates
The consolidated financial statements include other areas of judgement and accounting estimates. While these areas do not meet the
definition under IAS 1 of significant accounting estimates or critical accounting judgements, the recognition and measurement of certain
material assets and liabilities are based on assumptions and/or are subject to longer-term uncertainties. The other areas of judgement
and accounting estimates include:
– Hyperinflation accounting – refer to notes 7 and 35
– Taxation – refer to notes 8 and 35
– Estimates of future cash flows used in the impairment assessment of goodwill and property, plant and equipment – refer to notes 11,
13 and 35
– Residual values and useful economic lives of property, plant and equipment – refer to notes 11 and 35
– Fair value of assets acquired and liabilities assumed in business combinations – refer to notes 26 and 35
Climate change
Management has considered the impact of climate change in preparing these consolidated financial statements, in particular in the context
of the disclosures included in the Strategic report, including the Group’s Net-Zero GHG emission reduction targets as detailed in the
Mondi Action Plan 2030 (MAP2030) Taking Action on Climate section on pages 41-45. These considerations, which are integral to
the Group’s strategy, did not have a material impact on the accounting estimates and judgements, including the following areas:
– Fair value of forestry assets – refer to note 15
– Estimates of future cash flows used in the impairment assessment of goodwill and property, plant and equipment – refer to notes 11,
13 and 35
– Residual values and useful economic lives of property, plant and equipment – refer to note 35
– Fair value of assets acquired and liabilities assumed in business combinations – refer to note 26
While these considerations did not have a material impact on the estimates, this may change in future periods as management evolves
its understanding of climate change-related impacts on the Group.
Mondi Group
Integrated report and financial statements 2024
155
Notes to the consolidated financial statements
for the year ended 31 December 2024
2 Operating segments
The Group generates revenue from the sale of manufactured products across the packaging and paper value chain. Revenue is generally
recognised at a point in time, typically when the goods have been delivered to a contractually agreed location in line with the shipment
terms agreed with customers. Customer payment terms vary within the Group due to its global operations and do not contain significant
financing components.
The Group provides transport services after control of certain goods has passed to the customer. The Group generated transport
revenue of €63 million (2023: €91 million), which was recognised over time. The stage of completion is used to determine the amount of
revenue recognised, which is based on the transportation days completed at the reporting date relative to the total expected delivery
days.
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, consistent with prior year, comprise three distinct segments.
The material product types from which the Group’s operating segments derive their internal and external revenues are as follows:
Operating segments
Product types
Corrugated Packaging
Containerboard
Corrugated solutions
Flexible Packaging
Kraft paper
Paper bags
Consumer flexibles
Functional paper and films
Pulp
Uncoated Fine Paper
Uncoated fine paper
Pulp
Year ended 31 December 20241
€ million, unless otherwise stated
Corrugated
Packaging
Flexible
Packaging
Uncoated Fine
Paper
Corporate
Intersegment
elimination
Total
continuing
operations
Segment revenue
2,251
3,964
1,317
—
(116)
7,416
Internal revenue
(22)
(37)
(57)
—
116
—
External revenue
2,229
3,927
1,260
—
—
7,416
Underlying EBITDA
328
558
198
(35)
—
1,049
Depreciation, amortisation and impairments2
(167)
(203)
(72)
(1)
—
(443)
Underlying operating profit/(loss)
161
355
126
(36)
—
606
Special items before tax
(5)
(132)
—
(13)
—
(150)
Capital employed
2,609
3,418
1,133
(78)
—
7,082
Trailing 12-month average capital employed
2,224
3,051
1,134
(126)
—
6,283
Additions to non-current non-financial assets
346
565
160
—
—
1,071
Capital expenditure cash payments
321
518
94
—
—
933
Underlying EBITDA margin (%)
14.6
14.1
15.0
—
—
14.1
Return on capital employed (%)
7.2
11.5
11.1
—
—
9.6
Average number of employees (thousands)3
6.4
12.0
2.7
0.1
—
21.2
Notes:
1
See pages 216-218 for definitions of APMs.
2
Includes only impairments not classified as special items.
3 Presented on a full-time employee equivalent basis.
Mondi Group
Integrated report and financial statements 2024
156
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
Year ended 31 December 20231
€ million, unless otherwise stated
Corrugated
Packaging
Flexible
Packaging
Uncoated Fine
Paper
Corporate
Intersegment
elimination
Total
continuing
operations
Segment revenue
2,280
3,866
1,292
—
(104)
7,334
Internal revenue2
(23)
(33)
(52)
—
104
(4)
External revenue
2,257
3,833
1,240
—
—
7,330
Underlying EBITDA
310
637
289
(35)
—
1,201
Depreciation, amortisation and impairments3
(151)
(191)
(68)
(1)
—
(411)
Underlying operating profit/(loss)
159
446
221
(36)
—
790
Special items before tax
—
—
(27)
—
—
(27)
Capital employed
2,318
3,167
1,095
(65)
—
6,515
Trailing 12-month average capital employed
2,057
3,068
1,075
(65)
—
6,135
Additions to non-current non-financial assets
379
427
129
—
—
935
Capital expenditure cash payments
326
425
79
—
—
830
Underlying EBITDA margin (%)
13.6
16.5
22.4
—
—
16.4
Return on capital employed (%)
7.7
14.4
20.6
—
—
12.8
Average number of employees (thousands)4
6.5
11.6
2.8
0.1
—
21.0
Notes:
1
See pages 216-218 for definitions of APMs.
2
Total continuing operations' internal revenue relates to transactions with discontinued operations.
3 Previously presented separately as 'depreciation and impairment' and 'amortisation' and includes only impairments not classified as special items.
4 Presented on a full-time employee equivalent basis.
Mondi Group
Integrated report and financial statements 2024
157
2 Operating segments continued
External revenue by location of contribution and by location of customer
External revenue
by location of contribution
External revenue
by location of customer
€ million
2024
2023
2024
2023
Western Europe
Austria
1,175
1,301
166
159
Germany
555
579
932
954
UK
3
3
196
192
Rest of Western Europe
721
792
1,620
1,691
Western Europe total
2,454
2,675
2,914
2,996
Emerging Europe
Czech Republic
705
657
264
252
Poland
1,347
1,275
729
722
Türkiye
490
426
533
486
Rest of emerging Europe
919
887
543
521
Emerging Europe total
3,461
3,245
2,069
1,981
Africa
South Africa
667
656
489
495
Rest of Africa
80
95
366
395
Africa total
747
751
855
890
Russia
—
—
—
5
North America
648
561
850
825
South America
7
3
93
94
Asia and Australia
99
95
635
539
Total Group revenue from continuing operations
7,416
7,330
7,416
7,330
There were no external customers which account for more than 10% of the Group’s total external revenue in either year.
There are no material contract assets or contract liabilities as at 31 December 2024 and 31 December 2023. No contract costs were
capitalised in either year presented.
The Group does not disclose information about remaining performance obligations that have original expected durations of one year
or less, as permitted under IFRS 15.
Mondi Group
Integrated report and financial statements 2024
158
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
Net assets by location
2024
2023
€ million
Non-current
non-financial
assets
Segment
assets
Segment
net assets
Non-current
non-financial
assets
Segment
assets
Segment
net assets
Western Europe
Austria
500
977
764
462
902
671
Germany
544
720
654
522
689
627
UK
31
34
32
31
37
34
Rest of Western Europe
1,026
1,248
1,140
782
1,015
922
Western Europe total
2,101
2,979
2,590
1,797
2,643
2,254
Emerging Europe
Czech Republic
1,133
1,245
1,102
965
1,063
927
Poland
989
1,302
1,132
929
1,215
1,047
Türkiye
217
401
318
168
328
254
Rest of emerging Europe
757
925
760
857
1,014
853
Emerging Europe total
3,096
3,873
3,312
2,919
3,620
3,081
Africa
South Africa
977
1,197
1,103
931
1,135
1,030
Rest of Africa
49
126
123
60
158
155
Africa total
1,026
1,323
1,226
991
1,293
1,185
North America
184
435
375
174
350
317
South America
16
24
24
17
27
27
Asia and Australia
80
166
151
78
159
147
Total
6,503
8,800
7,678
5,976
8,092
7,011
Reconciliation of operating segment assets
2024
2023
€ million
Segment
assets
Segment
net assets/
(liabilities)
Segment
assets
Segment
net assets/
(liabilities)
Group total
8,800
7,678
8,092
7,011
Unallocated
Investments in joint ventures
5
5
8
8
Deferred tax assets/(liabilities)
22
(320)
24
(298)
Other non-operating assets/(liabilities)
226
(281)
236
(206)
Group capital employed
9,053
7,082
8,360
6,515
Financial instruments/(net debt)
288
(1,732)
1,604
(419)
Total assets/equity
9,341
5,350
9,964
6,096
Other non-operating assets/(liabilities) include non-current financial instruments and current tax assets/(liabilities) as presented in the
consolidated statement of financial position, provisions for restructuring costs, employee-related and other provisions (see note 20),
derivative financial instruments (see note 31d) and other non-operating receivables/(payables) of €165 million and €354 million,
respectively, as at 31 December 2024 (2023: €181 million and €316 million).
Mondi Group
Integrated report and financial statements 2024
159
2 Operating segments continued
Average number of employees by principal location of employment1
thousands
2024
2023
Western Europe
6.4
6.5
Emerging Europe
10.4
10.4
Africa
1.9
1.9
North America
1.9
1.6
Asia and Australia
0.6
0.6
Total average number of employees of continuing operations
21.2
21.0
Note:
1
Presented on a full-time employee equivalent basis.
3 Special items
The Group separately discloses special items, an APM as defined on page 216, on the face of the 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
2024
2023
Operating special items
Impairment of assets
(74)
(4)
Restructuring and closure costs:
Personnel costs
(18)
(9)
Other restructuring and closure costs
(40)
(14)
Costs relating to the acquisition of Schumacher Packaging
(5)
—
Costs relating to the aborted all-share combination with DS Smith plc
(13)
—
Total special items before tax
(150)
(27)
Tax credit (see note 8)
1
6
Total special items
(149)
(21)
The operating special items resulted in a cash outflow from operating activities of €34 million for the year ended 31 December 2024
(2023: €10 million).
To 31 December 2024
The special items during the year ended 31 December 2024 comprised:
– Corrugated Packaging
– On 9 October 2024, the Group announced that it has entered into an agreement to acquire the Western Europe Packaging Assets
of Schumacher Packaging for an enterprise value of €634 million. The transaction, which is subject to certain customary regulatory
approvals, is expected to close in the first half of 2025. In 2024, transaction costs of €5 million were recognised and additional costs
will be incurred in 2025 with total costs expected to exceed €10 million.
– Flexible Packaging
– Closure of a paper bags plant in Maastricht (Netherlands). Restructuring and closure costs of €13 million were recognised.
– Closure of a paper bags plant in Pine Bluff (USA). Restructuring and closure costs of €8 million and related impairment of assets of
€1 million were recognised. Additional costs will be incurred in 2025 with total costs expected to exceed €10 million.
– Closure of Stambolijski paper mill (Bulgaria) following a fire in September 2024. Restructuring and closure costs of €37 million and
related impairment of assets of €73 million were recognised.
– Corporate
– €13 million of costs relating to the aborted all-share combination with DS Smith plc. On 19 April 2024, the Board announced
it did not intend to make an offer for DS Smith plc following a period of due diligence and after carefully considering the value
the all-share combination with DS Smith plc would deliver to Mondi's shareholders.
Mondi Group
Integrated report and financial statements 2024
160
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
To 31 December 2023
The special items during the year ended 31 December 2023 comprised:
– Uncoated Fine Paper
– Closure of a paper machine and streamlining the capacity of the finishing lines at the Neusiedler operations in Austria. Restructuring
and closure costs of €23 million and related impairment of assets of €4 million were recognised.
4 Auditors' remuneration
€ million
2024
2023
Fees payable to the auditors for the audit of Mondi plc’s annual financial statements
2.3
2.0
Fees payable to the auditors and their associates for the audit of Mondi plc’s subsidiaries
4.0
4.1
Total audit fees
6.3
6.1
Audit-related services
0.5
0.6
Other services
0.3
—
Total non-audit fees
0.8
0.6
Total fees
7.1
6.7
5 Personnel costs
€ million, unless otherwise stated
2024
2023
Within underlying operating costs
Wages and salaries
994
878
Social security costs
202
181
Defined contribution retirement plan contributions (see note 25)
14
14
Defined benefit retirement plan service costs net of loss from settlement (see note 25)
9
5
Share-based payments (see note 24)
9
9
Total within underlying operating costs
1,228
1,087
Within special items
Personnel costs relating to restructuring (see note 3)
18
9
Within net finance costs
Retirement benefit medical plan net interest costs
3
3
Retirement benefit pension plan net interest costs
6
5
Total within net finance costs (see note 6)
9
8
Total personnel costs
1,255
1,104
Continuing operations' average number of employees (thousands)1
21.2
21.0
Note:
1
Presented on a full-time employee equivalent basis.
Mondi Group
Integrated report and financial statements 2024
161
6 Net finance costs
€ million
2024
2023
Investment income
Investment income
30
45
Foreign currency (losses)/gains
Foreign currency (losses)/gains
(3)
1
Finance costs
Interest expense
Interest on bank overdrafts and loans
(100)
(115)
Interest on lease liabilities (see note 12)
(7)
(7)
Net interest expense on net retirement benefits liability (see note 25)
(9)
(8)
Total interest expense
(116)
(130)
Less: interest capitalised
19
11
Total finance costs
(97)
(119)
Net finance costs
(70)
(73)
The weighted average interest rate applicable to capitalised interest on general borrowings for the year ended 31 December 2024
was 4.2% (2023: 4.9%) and was mainly related to qualifying assets in Czech Republic and Poland (2023: Czech Republic).
7 Net monetary (loss)/gain arising from hyperinflationary economies
The Group applies IAS 29, 'Financial Reporting in Hyperinflationary Economies', for its subsidiaries in Türkiye and Lebanon. The consumer
price index increased in Türkiye by 44% from 1,859 at 31 December 2023 to 2,685 at 31 December 2024 and in Lebanon by 18% from
5,978 at 31 December 2023 to 7,061 at 31 December 2024. For the year ended 31 December 2024 a net monetary loss of €5 million was
recognised (2023: gain of €2 million). For the year ended 31 December 2024, the adjustments from hyperinflationary accounting have
resulted in an increase in Group revenue of €78 million (2023: €116 million) and a decrease in underlying EBITDA of €16 million
(2023: decrease of €16 million). As at 31 December 2024, the adjustments from hyperinflationary accounting have resulted in an
accumulated increase in total assets of €166 million (2023: €115 million). Comparative amounts presented in euros were not restated
for subsequent changes in the price level or exchange rates.
IAS 29 requires judgement to determine when to apply hyperinflationary accounting and which general price index to select and other
approximations to be made in order to restate the financial statements of subsidiaries operating in a hyperinflationary economy.
8 Taxation
(a) Analysis of tax charge for the year
The Group’s effective rate of tax before special items for the year ended 31 December 2024 was 22.2% (2023: 23.6%).
€ million
2024
2023
UK corporation tax at 25% (2023: 23.5%)
4
—
Overseas tax
105
135
Current tax in respect of the prior years
(4)
(13)
Current tax
105
122
Deferred tax in respect of the current year
10
62
Deferred tax in respect of the prior years
(5)
(24)
Deferred tax attributable to a change in the rate of domestic income tax
7
7
Tax charge before special items
117
167
Current tax on special items
—
(6)
Deferred tax on special items
(1)
—
Tax credit on special items (see note 3)
(1)
(6)
Tax charge for the year
116
161
Current tax charge
105
116
Deferred tax charge
11
45
Mondi Group
Integrated report and financial statements 2024
162
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
On 24 May 2021, legislation was substantively enacted in the UK to increase the corporate tax rate from 19% to 25% with effect from
1 April 2023. In the year ended 31 December 2023, the 23.5% UK corporation tax rate referenced in the table above reflects the average
tax rate that applied in that year.
As the Group operates in a number of countries, each with different tax systems, a degree of tax risk is inevitable, as tax laws are
complex and subject to changes in legislation and to differing interpretations. Consequently, provision has been made for such tax risk
exposures within current tax liabilities of €40 million (2023: €38 million), mainly in relation to transfer pricing risks arising from cross
border transactions. There is not expected to be any material change to the tax risk exposures or associated provisions within the next
12 months.
The Group is within the scope of the OECD Pillar 2 model rules as of 1 January 2024. The effective tax rate (as calculated under the Pillar
2 transitional safe harbour rules) in the majority of countries in which the Group operates exceeds 15% for the year ended 31 December
2024. Additional Pillar 2 top-up tax of €3 million has been included within the current tax charge for the year ended 31 December 2024,
mostly arising in a small number of jurisdictions benefitting from tax incentives on capital investments and tax holidays.
Factors affecting tax charge for the year
The Group’s total tax charge for the year can be reconciled to the tax on the Group’s profit before tax at the UK corporation tax rate
of 25% (2023: 23.5%), as follows:
€ million
2024
2023
Profit before tax
378
682
Tax on profit before tax, calculated at the UK corporation tax rate of 25% (2023: 23.5%)
95
160
Tax effects of:
Expenses not deductible for tax purposes
7
2
Special items not deductible
5
—
Other non-deductible expenses
2
2
Temporary difference adjustments
26
(13)
Balance sheet/fixed asset revaluation
(15)
(10)
Changes in local tax rates1
7
7
Current year tax losses and other temporary differences not recognised
39
14
Movements in unrecognised deferred tax
(10)
(24)
Prior year deferred tax adjustments
5
—
Other adjustments
(12)
12
Current tax prior year adjustments
(4)
(13)
Tax incentives2
(16)
(5)
Effect of difference between local rates and UK tax rate
(20)
(1)
Hyperinflation monetary adjustments (see note 7)
20
19
Other adjustments
5
12
Pillar 2 current tax
3
—
Tax charge for the year
116
161
Notes:
1
There has been a change in tax rate in Slovakia (2023: Czech Republic, Türkiye and Austria).
2
The tax incentives relate to a number of countries including Poland and Slovakia (2023: Poland and Serbia).
Mondi Group
Integrated report and financial statements 2024
163
8 Taxation continued
(b) Deferred tax
Deferred tax assets
Deferred tax liabilities
€ million
2024
2023
2024
2023
At 1 January
24
34
(322)
(307)
Charged to the consolidated income statement
(2)
(10)
(9)
(35)
Credited to the consolidated statement of comprehensive income
—
3
1
4
Acquired through business combinations (see note 26)
—
—
(4)
—
Reclassification
—
(1)
—
1
Hyperinflation monetary adjustment (see note 7)
—
(1)
(2)
—
Currency movements
—
(1)
(6)
15
At 31 December
22
24
(342)
(322)
The amount of deferred tax (charged)/credited to the consolidated income statement comprises:
€ million
2024
2023
Fixed assets temporary differences
(37)
(27)
Fair value adjustments
7
(23)
Tax losses recognised
9
24
Other temporary differences
10
(19)
Total deferred tax charge
(11)
(45)
Deferred tax comprises:
Deferred tax assets
Deferred tax liabilities
€ million
2024
2023
2024
2023
Fixed assets temporary differences
(19)
(34)
(320)
(265)
Fair value adjustments
—
—
(134)
(135)
Tax losses
14
17
31
19
Other temporary differences
27
41
81
59
Total
22
24
(342)
(322)
The key items within other temporary differences include retirement benefit obligations, inventory write-downs, other provisions
and accruals and elimination of intercompany profit in inventory.
Based on forecast data, the Group considers it probable that there will be sufficient future taxable profits available in the relevant
jurisdictions to utilise the tax losses and other temporary differences presented in the table above.
Deferred tax balances have been shown after offset when they relate to income taxes levied by the same tax authority and it is intended
to settle current assets and liabilities on a net basis.
The current expectation regarding the maturity of deferred tax balances is:
Deferred tax assets
Deferred tax liabilities
€ million
2024
2023
2024
2023
Recoverable within 12 months
10
13
—
—
Recoverable/(payable) after 12 months
12
11
(342)
(322)
Total
22
24
(342)
(322)
Mondi Group
Integrated report and financial statements 2024
164
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
The Group has the following amounts in respect of which no deferred tax asset has been recognised, as it is not considered probable
that there will be future profit streams or gains against which these could be utilised:
€ million
2024
2023
Tax losses - revenue
1,411
1,401
Tax losses - capital
16
16
Fixed asset temporary differences1
90
13
Other temporary differences1
69
43
Total
1,586
1,473
Note:
1 Other temporary differences as presented previously have been further analysed to separately show fixed asset temporary differences.
Of the total of €1,586 million (2023: €1,473 million), €1,245 million (2023: €1,248 million) relates to tax losses (with no expiry date)
and other timing differences not recognised in the UK and Luxembourg due to lack of future profit streams.
There were no significant changes during the year in the expected future profit streams or gains.
Included in unrecognised tax losses are losses that will expire as follows:
€ million
2024
2023
Expiry date
Within one year
7
7
One to five years
19
42
After five years
47
45
No expiry date
1,354
1,323
Total unrecognised tax losses
1,427
1,417
No deferred tax liability is recognised on gross temporary differences of €630 million (2023: €622 million) relating to the unremitted
earnings of overseas subsidiaries, as the Group is able to control the timing of the reversal of these temporary differences and it is
probable that they will not reverse in the foreseeable future. UK tax legislation largely exempts, from UK tax, overseas dividends received.
As a result, the gross temporary differences at 31 December 2024 represent only the unremitted earnings of those overseas subsidiaries
where remittance to the UK of those earnings would still result in a tax liability, principally as a result of dividend withholding taxes levied
by the overseas tax jurisdictions in which these subsidiaries operate and non-UK corporate taxes on dividends.
9 Earnings per share (EPS)
On 13 February 2024, the Group returned the net proceeds from the sale of the Group's Russian assets to its shareholders by way of
a special dividend (see note 10). In addition, in order to maintain the comparability, so far as possible, of Mondi plc’s share price before
and after the special dividend, the special dividend was accompanied by a share consolidation, which took effect on 29 January 2024,
resulting in shareholders receiving 10 new ordinary shares for every 11 existing ordinary shares (see note 23).
For calculating basic and diluted EPS measures, the Board concluded that the overall effect of the share consolidation and special
dividend was a share repurchase at fair value. Therefore, the reduction in the number of shares as a result of the share consolidation was
reflected in the denominator in the current year prospectively from the day the dividend was paid (i.e. 13 February 2024). The weighted
average number of ordinary shares outstanding for 2023 was not restated.
EPS attributable to shareholders
euro cents
2024
2023
From continuing operations
Basic EPS
49.1
103.5
Diluted EPS
49.1
103.5
Basic underlying EPS
82.7
107.8
Diluted underlying EPS
82.6
107.8
From continuing and discontinued operations
Basic EPS
49.1
(31.5)
Diluted EPS
49.1
(31.5)
Basic headline EPS
60.8
145.3
Diluted headline EPS
60.8
145.3
Mondi Group
Integrated report and financial statements 2024
165
9 Earnings per share (EPS) continued
The calculation of basic and diluted EPS, basic and diluted underlying EPS and basic and diluted headline EPS is based on the following data:
Earnings
€ million
2024
2023
Profit/(loss) for the year attributable to shareholders
218
(153)
Arises from:
Continuing operations
218
502
Discontinued operations (see note 28)
—
(655)
Special items attributable to shareholders (see note 3)
150
27
Related tax (see note 3)
(1)
(6)
Total earnings for the year (prior to special items)
367
(132)
Arises from:
Continuing operations
367
523
Discontinued operations (see note 28)
—
(655)
Gain on disposal of property, plant and equipment
(12)
(13)
Insurance reimbursements for property damages (see note 11)
(3)
(27)
Restructuring and closure costs (see note 3)
(58)
(23)
Costs relating to the aborted all-share combination with DS Smith plc (see note 3)
(13)
—
Costs relating to the acquisition of Schumacher Packaging (see note 3)
(5)
—
Gain on purchase of business before transaction-related costs (see note 26)
(13)
—
Impairments not included in special items (see note 11)
—
3
Loss arising from sale and leaseback transaction
3
—
Loss on disposal of businesses from discontinued operations (see note 28)
—
756
Impairments included in loss from discontinued operations (see note 28)
—
113
Related tax
4
28
Headline earnings for the year
270
705
Underlying earnings, total earnings (prior to special items) and headline earnings represent APMs which are defined on pages 216-218.
Weighted average number of shares
million
2024
2023
Basic number of ordinary shares outstanding
444.0
485.1
Effect of dilutive potential ordinary shares
0.1
—
Diluted number of ordinary shares outstanding
444.1
485.1
10 Dividends
2024
2023
euro cents
per share
€ million
euro cents
per share
€ million
Final ordinary dividend paid in respect of the prior year
46.67
209
48.33
231
Special dividend
160.00
769
—
—
Interim ordinary dividend paid in respect of the current year
23.33
103
23.33
114
Total ordinary and special dividends paid
1,081
345
Final ordinary dividend proposed to shareholders
46.67
206
46.67
209
The final ordinary dividend proposed in respect of the financial year ended 31 December 2024 has been recommended by the Board
and is subject to the approval of the shareholders of Mondi plc at the Annual General Meeting scheduled for 8 May 2025.
On 13 February 2024, the Group returned the net proceeds from the sale of the Group's Russian assets to shareholders by way of a special
dividend of €1.60 per existing ordinary share (see note 9). The final ordinary dividend for the year ended 31 December 2023 was declared
after the accompanying share consolidation took effect and therefore was declared based on the number of new ordinary shares.
Mondi Group
Integrated report and financial statements 2024
166
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
11 Property, plant and equipment
€ million
Land and
buildings1
Plant and
equipment
Assets under
construction
Other
Total
Net carrying value
At 1 January 2023
1,167
2,483
398
119
4,167
Additions
50
169
576
38
833
Disposal of assets
(7)
(4)
—
(7)
(18)
Acquired through business combinations
17
20
—
—
37
Depreciation charge for the year
(65)
(292)
—
(34)
(391)
Impairment losses recognised
(1)
(6)
—
—
(7)
Reclassification
51
168
(234)
13
(2)
Hyperinflation monetary adjustment
28
31
6
3
68
Currency movements
(22)
(41)
(2)
(3)
(68)
At 31 December 2023
1,218
2,528
744
129
4,619
Cost
2,139
7,216
761
409
10,525
Accumulated depreciation and impairments
(921)
(4,688)
(17)
(280)
(5,906)
Additions
123
316
529
38
1,006
Disposal of assets
(7)
(4)
—
(1)
(12)
Acquired through business combinations (see note 26)
3
1
—
—
4
Depreciation charge for the year
(70)
(319)
—
(38)
(427)
Impairment losses recognised (see note 3)
(3)
(49)
(21)
(1)
(74)
Reclassification
112
382
(511)
14
(3)
Hyperinflation monetary adjustment (see note 7)
27
30
4
2
63
Currency movements
(7)
(7)
(2)
—
(16)
At 31 December 2024
1,396
2,878
743
143
5,160
Cost
2,392
7,899
765
445
11,501
Accumulated depreciation and impairments
(996)
(5,021)
(22)
(302)
(6,341)
Note:
1
The land carrying value included in land and buildings is €255 million (2023: €227 million).
Included in the additions above is €19 million (2023: €11 million) of interest incurred on qualifying assets which has been capitalised
during the year. The amount is deductible for tax purposes either when incurred or included in the amount permitted to be deducted
for capital expenditure, depending on the jurisdiction in which they are capitalised.
The Group recognised income from insurance reimbursements relating to damages of property, plant and equipment of €3 million
(2023: €27 million) in other net operating expenses in the consolidated income statement with reimbursements received in cash
of €13 million (2023: €17 million) classified as other investing activities within the consolidated statement of cash flows.
The recoverable amount of property, plant and equipment is determined based on the use of the asset within the current business plans.
Any change in future intentions could result in an impairment of varying magnitude, depending on the assets affected.
Mondi Group
Integrated report and financial statements 2024
167
12 Leases
The Group has entered into various lease agreements with the weighted average term of:
– land and buildings: 36 years (2023: 35 years);
– plant and equipment: 12 years (2023: 12 years); and
– other assets: 5 years (2023: 5 years).
The principal lease agreements in place include the following:
South African land lease
The Group entered into a land lease agreement on 1 January 2001 for a total term of 70 years. The lease commitment and annual
escalation rate are renegotiated every five years. The lease does not contain any clauses with regard to contingent rent or an option
to purchase the land at the end of the lease term, and does not impose any significant restrictions on the Group as a lessee.
Office building
The Group entered into an office building lease agreement in Vienna (Austria) for a total term of 20 years from October 2013. The lease
may only be terminated by the Group, after six months’ notice, in September 2023 (which did not occur) and again in September 2028.
Rent escalates on an annual basis by the consumer price index of the local jurisdiction. The lease does not contain any option to
purchase the building at the end of the lease term, and does not impose any significant restrictions on the Group as a lessee. Variable
lease payments are included in the lease liability and calculated at the consumer price index. The Group does not intend to exercise
the termination option in September 2028, and thus it was not considered in the calculation of the right-of-use asset.
Right-of-use assets
Right-of-use assets
Depreciation charge
€ million
2024
2023
2024
2023
Land and buildings
62
61
(12)
(10)
Plant and equipment
41
39
(11)
(9)
Other
15
16
(8)
(7)
Total
118
116
(31)
(26)
Additions to the right-of-use assets during 2024 were €32 million (2023: €34 million).
Lease liabilities
€ million
2024
2023
Maturity analysis - contractual undiscounted cash flows
Less than one year
31
28
One to two years
25
24
Two to five years
46
49
More than five years
109
89
Total undiscounted cash flows
211
190
Total lease liabilities
128
125
Current
24
21
Non-current
104
104
Lease liabilities are effectively secured as the rights to the leased assets recognised in the consolidated financial statements revert to the
lessor in the event of default. The total cash outflow for leases during 2024 was €36 million (2023: €31 million).
Amounts recognised in the consolidated income statement
€ million
2024
2023
Depreciation charge in respect of leases
(31)
(26)
Interest on lease liabilities
(7)
(7)
Expenses relating to short-term leases
(2)
(1)
Expenses relating to leases of low-value assets
(1)
(1)
Mondi Group
Integrated report and financial statements 2024
168
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
13 Goodwill
(a) Reconciliation
€ million
2024
2023
Net carrying value
At 1 January
765
769
Hyperinflation monetary adjustment (see note 7)
11
11
Currency movements
(9)
(15)
At 31 December
767
765
(b) Assumptions
Goodwill acquired through business combinations is allocated to the group of cash-generating units (CGUs) that are expected to benefit
from the synergies of the combination and represents the lowest level at which goodwill is monitored for internal management purposes.
Goodwill is assessed for impairment at least annually. In performing this impairment test, the recoverable amounts of these groups of
CGUs are the higher of fair value less costs to dispose and value in use (see note 35 for further details).
Goodwill is allocated to three groups of CGUs, as follows:
Weighted average
pre-tax discount rate
Growth rate
beyond year 3
Carrying value
€ million, unless otherwise stated
2024
2023
2024
2023
2024
2023
Corrugated Packaging
10.3%
10.2%
3%
3%
327
328
Flexible Packaging
9.3%
9.2%
2%
2%
425
422
Uncoated Fine Paper
11.0%
11.1%
—%
—%
15
15
Total goodwill
767
765
Key assumptions for 2024
The key assumptions in the value-in-use calculations are as follows:
– Cash flow forecasts are derived from the budget most recently approved by the Board covering the three-year period
to 31 December 2027.
– Sales volumes, sales prices and input cost assumptions in the budget period are derived from a combination of economic forecasts
for the regions in which the Group operates, industry forecasts for individual product lines, internal management projections, historical
performance and announced and expected industry capacity changes.
– The impact of climate change such as regulatory risks on carbon pricing, yield losses on plantations or the effects of droughts as well
as climate-change related opportunities in the budget period are considered in the cash flow forecasts. The Group’s climate change
risks and opportunities identified according to the TCFD recommendations are disclosed on pages 52-59 of this report.
– Cash flow projections in year four are based on internal management projections taking into consideration industry forecasts and
growth rates in the regions in which the Group operates. Growth rates are applied to the groups of CGUs for all years from year four
onwards (as per the table above).
– Capital expenditure forecasts are based on historical experience and include expenditure necessary to maintain the assets in their
current condition.
The pre-tax discount rate is derived from the Group’s weighted average cost of capital. In determining the discount rate applicable
to each group of CGUs, adjustments are made to reflect the impacts of country risk.
Mondi Group
Integrated report and financial statements 2024
169
13 Goodwill continued
Sensitivity analyses
Expected future cash flows are inherently uncertain and could change materially over time. They are affected by a number of factors,
including market and production estimates, together with economic factors such as prices, discount rates, currency exchange rates,
estimates of production costs and future capital expenditure. Risks associated with increased operating costs such as carbon pricing
mechanisms have also been considered.
Sensitivity analyses of reasonably possible changes in the underlying assumptions for each group of CGUs included:
– 100 bps increase in discount rate;
– 0% growth rate assumed for cash flow projections beyond three years in the Corrugated Packaging and Flexible Packaging groups
of CGUs;
– 3% decrease in sales prices of paper in all years in the Corrugated Packaging group of CGUs;
– 6% decrease in sales prices of paper in 2025 and 4% decrease in all other years in the Flexible Packaging group of CGUs; and
– 2% decrease in sales prices of paper in all years in the Uncoated Fine Paper group of CGUs.
None of these downside sensitivity analyses, in isolation, indicated the need for an impairment.
14 Intangible assets
€ million
2024
2023
Net carrying value
At 1 January
68
64
Additions
13
16
Acquired through business combinations (see note 26)
—
1
Amortisation charge for the year
(16)
(17)
Reclassification
3
2
Hyperinflation monetary adjustment (see note 7)
2
4
Currency movements
—
(2)
At 31 December
70
68
Cost
246
251
Accumulated amortisation and impairments
(176)
(183)
The intangible assets comprise mainly software development costs.
R&D expenditure incurred by the Group and charged to the consolidated income statement during the year amounted to €31 million
compared to €30 million in 2023 (as previously disclosed: €21 million), with the prior year figure presented on the same basis for
consistent comparison.
15 Forestry assets
€ million
2024
2023
At 1 January
519
485
Investment in forestry assets
48
48
Fair value gains
7
128
Felling costs
(92)
(87)
Currency movements
21
(55)
At 31 December
503
519
Mature
371
359
Immature
132
160
The Group has 255,023 hectares (2023: 254,858 hectares) of owned and leased land available for forestry activities, all of which is in
South Africa. 80,667 hectares (2023: 80,614 hectares) are set aside for conservation activities and infrastructure needs. 1,044 hectares
(2023: 1,044 hectares) relate to non-core activities. The balance of 173,312 hectares (2023: 173,200 hectares) are under afforestation,
which forms the basis of the valuation set out above.
Mature forestry assets are those plantations that are harvestable, while immature forestry assets have not yet reached that stage of
growth. Timber is harvested according to a rotation plan, once trees reach maturity. The maturity period ranges from 6.5 to 14.5 years
(2023: 6.5 to 14.5 years) depending on species, climate and location. The fair value of forestry assets is a level 3 measure in terms of the
fair value measurement hierarchy, consistent with prior years.
Mondi Group
Integrated report and financial statements 2024
170
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
The following assumptions have a significant impact on the valuation of the Group’s forestry assets:
– The net selling price is defined as the selling price less the costs of transport, harvesting, extraction and loading, and all selling prices
and costs are denominated in South African rand. The net selling price is based on third-party transactions and is influenced by the
species, maturity profile and location of timber. In 2024, the net selling price used ranged from the South African rand equivalent
of €15 per tonne to €58 per tonne (2023: €15 per tonne to €53 per tonne), with a weighted average of €32 per tonne
(2023: €34 per tonne).
– The conversion factor, which is used to convert hectares of land under afforestation to tonnes of standing timber, is dependent on the
species, the maturity profile of the timber, the geographic location and a variety of other environmental factors, such as the anticipated
impact of climate change on water scarcity and fire risks. In 2024, the conversion factors ranged from 7.7 to 25.3 (2023: 7.6 to 25.0).
– The risk premium on immature timber of 12.6% (2023: 12.4%) is based on an assessment of the risks associated with forestry assets
in South Africa and is applied for the years the immature timber has left to reach maturity. A risk premium on mature timber of 4.0%
(2023: 4.0%) was applied. The risk premium applied to immature and mature timber includes factors for the anticipated impact of
climate change on water scarcity and fire risks. An increase in the severity and frequency of extreme weather events, such as higher
temperatures, changes in rainfall patterns and drought conditions, may result in higher timber losses in future years caused by stronger
winds, erosion, fires, pests and diseases.
The valuation of the Group’s forestry assets is determined in South African rand and converted to euro at the closing exchange rate
on 31 December of each year.
Management has performed sensitivity analyses of reasonably possible changes in the significant assumptions and the EUR/ZAR
exchange rate. The sensitivity table is based on historical experience; however, the estimates may vary by greater amounts. Therefore,
the Board considers the forestry assets valuation to be a significant accounting estimate. The reported value of owned forestry assets
would change as follows should there be a change in these underlying assumptions on the basis that all other factors remain unchanged:
€ million
2024
2023
Effect of €5/tonne increase in net selling price
80
79
Effect of 1% increase in conversion factor (hectares to tonnes)
5
6
Effect of 1% increase in risk premium
(7)
(8)
Effect of 10% increase in EUR/ZAR exchange rate
(46)
(47)
16 Investments in joint ventures
€ million
2024
2023
At 1 January
8
18
Net loss from joint ventures
(3)
(5)
Impairment losses recognised
—
(5)
At 31 December
5
8
The joint ventures of the Group as at 31 December 2024 are set out in note 11 of the Mondi plc parent company financial statements.
All of these interests are accounted for using the equity method. None of the joint ventures are assessed as being individually material
to the Group.
Mondi Group
Integrated report and financial statements 2024
171
17 Inventories
€ million
2024
20231
Raw materials and consumables
594
525
Work in progress
112
91
Finished goods
488
433
Total inventories
1,194
1,049
Of which, held at net realisable value
167
141
Note:
1 Previously disclosed separately by first-in, first-out cost formula and weighted average cost formula.
Consolidated income statement
€ million
2024
2023
Within materials, energy and consumables used
Cost of inventories recognised as an expense
(3,360)
(3,575)
Write-down of inventories to net realisable value
(69)
(77)
Aggregate reversal of previous write-downs of inventories
49
45
Within other net operating expenses
Green energy sales and disposal of emissions credits
36
92
The reversal of previous write-downs of inventories relates to goods that had been written down to their estimated net realisable value
and were subsequently sold above their carrying value.
18 Trade and other receivables
€ million
2024
2023
Trade receivables
1,062
995
Credit loss allowance
(21)
(25)
Net trade receivables
1,041
970
Other receivables
28
45
Tax and social security
149
148
Prepayments1
35
46
Prepayments for capital expenditure1
22
45
Total trade and other receivables
1,275
1,254
Note:
1 Prepayments as presented previously have been further analysed to separately show prepayments for capital expenditures.
Trade receivables: credit risk
The Group has a large number of unrelated customers and does not have significant credit risk exposure to any particular customer.
The Group considers that there is no significant geographical or customer concentration of credit risk.
Each business segment manages its own exposure to credit risk according to the economic circumstances and characteristics of the
relevant markets that it serves. The Group considers that management of credit risk on a decentralised basis enables it to assess and
manage credit risk more effectively. However, broad principles of credit risk management are observed across all business segments,
such as the use of credit rating agencies, credit guarantee insurance, where appropriate, and the maintenance of a credit control function.
€ million
2024
2023
Credit risk exposure
Gross trade receivables
1,062
995
Credit insurance
(902)
(837)
Net exposure to credit risk
160
158
Mondi Group
Integrated report and financial statements 2024
172
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
In addition, the Group is in possession of bank guarantees and letters of credit securing trade and other receivables to the value
of €7 million (2023: €6 million). Credit periods offered to customers vary according to the credit risk profiles of participants and invoicing
conventions established in the various markets in which the Group operates. Interest is charged at appropriate market rates on balances
which are considered overdue in the relevant market.
To the extent that recoverable amounts are expected to be less than their associated carrying values, impairment charges have been
recorded in the consolidated income statement and the carrying values have been written down to their expected recoverable amounts.
The total gross carrying value of trade receivables that were subject to credit loss allowance during the year was €25 million
(2023: €36 million).
Included within the Group’s aggregate trade receivables balance are specific debtor balances with customers totalling €149 million
(2023: €140 million) which are past due and where the Group considers that their credit quality remains intact.
The expected credit loss allowance for trade receivables was determined as follows:
2024/€ million, unless otherwise stated
Within terms
Past due by
Total
<1 month
1-2 months
2-3 months
>3 months
Expected loss rate %
—
2
4
14
50
Trade receivables
896
108
25
7
26
1,062
Credit loss allowance
(4)
(2)
(1)
(1)
(13)
(21)
2023/€ million, unless otherwise stated
Within terms
Past due by
Total
<1 month
1-2 months
2-3 months
>3 months
Expected loss rate %
1
3
4
14
68
Trade receivables
837
108
24
7
19
995
Credit loss allowance
(7)
(3)
(1)
(1)
(13)
(25)
Movement in the credit loss allowance
€ million
2024
2023
At 1 January
25
26
Increase in allowance recognised in consolidated income statement
5
7
Amounts written off or recovered
(8)
(6)
Currency movements
(1)
(2)
At 31 December
21
25
19 Trade and other payables
€ million
2024
2023
Trade payables
649
633
Capital expenditure payables
69
60
Tax and social security
65
59
Other payables
82
66
Accruals
404
387
Deferred income
12
14
Total trade and other payables
1,281
1,219
Mondi Group
Integrated report and financial statements 2024
173
20 Provisions
€ million
Restructuring
costs
Employee-
related provisions
Environmental
restoration
Other
Total
At 1 January 2024
7
26
4
11
48
Charged to consolidated income statement
43
9
14
13
79
Released to consolidated income statement
(1)
—
—
(2)
(3)
Amounts used
(17)
(7)
—
(6)
(30)
Unwinding of discount
—
1
—
—
1
Acquired through business combinations (see note 26)
—
—
2
—
2
At 31 December 2024
32
29
20
16
97
Current
32
7
11
15
65
Non-current
—
22
9
1
32
The provisions for restructuring costs are expected to be settled over the next year. Restructuring provisions include severance costs,
when management has made a formal decision to eliminate certain positions and this has been communicated to the groups of
employees affected, and other related costs that are typically expected to be incurred in the course of a restructuring programme.
Employee-related provisions comprise provisions for jubilee awards and other short-term benefits. Given the nature of jubilee provisions,
the amounts are likely to be settled over many years.
The Group provides for the costs of environmental remediation that have been identified at the time of plant closure, as part
of acquisition due diligence or in other circumstances where remediation by the Group is required and a probable outflow of
economic resources is identified. Judgement and experience are used by management in determining the expected timing, closure
and decommissioning methods, which can vary over time and between locations in response to the relevant legal requirements in each
territory or the impact of applying new technologies. As of 31 December 2024, such provisions totalled €20 million (2023: €4 million).
The Group does not provide for any potential future environmental remediation or asset retirement obligations in respect of plants
that the Group continues to own and operate into the foreseeable future based on the existing strategy of the Group, unless a legal
or constructive obligation exists at the reporting date. €11 million (2023: €nil) of provision for environmental restoration was recognised
in relation to the closure of Stambolijski paper mill (Bulgaria) this year (see note 3).
Provisions may be identified at a future date if a change in strategy results in planned plant closure or disposal and the Group identifies
the need for future environmental remediation subject to the existence of a legal or constructive obligation.
Other provisions are mainly attributable to potential claims against the Group and onerous contracts, none of which are individually
material to the Group. The Group expects to settle the majority of the provisions over the next year.
All non-current provisions are discounted using a discount rate relevant in the local countries, based on a pre-tax yield on
long-term bonds.
21 Capital management
The Group defines its capital employed as equity, as presented in the consolidated statement of financial position, plus net debt.
€ million
2024
2023
Equity attributable to shareholders
4,857
5,655
Equity attributable to non-controlling interests
493
441
Total equity
5,350
6,096
Net debt (see note 27c)
1,732
419
Capital employed (see page 217)
7,082
6,515
Capital employed is managed on a basis that enables the Group to continue trading as a going concern, while delivering acceptable
returns to shareholders. The Group is committed to managing its cost of capital by maintaining an appropriate capital structure, with
a balance between equity and net debt.
The Group utilises its capital employed to fund its business.
The primary sources of the Group’s liquidity include its €3 billion Guaranteed Euro Medium Term Note Programme, its €750 million
Syndicated Revolving Credit Facility (RCF), which has been increased to €1 billion effective from 2 January 2025, and financing from
various banks and other credit agencies, thus providing the Group with access to diverse sources of debt financing.
Mondi Group
Integrated report and financial statements 2024
174
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
The principal loan arrangements in place are the following:
€ million
Maturity
Interest rate %
2024
2023
Financing facilities
Syndicated Revolving Credit Facility1
June 2028
EURIBOR + margin
750
750
€500 million Eurobond
April 2024
1.500%
—
500
€600 million Eurobond
April 2026
1.625%
600
600
€750 million Eurobond
April 2028
2.375%
750
750
€500 million Eurobond
May 2032
3.750%
500
—
Long-Term Facility Agreement
December 2026
EURIBOR + margin
13
20
Other
Various
Various
—
4
Total committed facilities
2,613
2,624
Drawn
(1,863)
(1,870)
Total committed facilities available
750
754
Note:
1 In December 2024, the Group’s Syndicated Revolving Credit Facility was increased from a €750 million facility to a €1 billion facility effective from 2 January 2025.
The Group’s Eurobonds incur a fixed rate of interest. Swap agreements are utilised by the Group to raise non-euro-denominated
currency to fund subsidiaries' liquidity needs, thereby exposing the Group to floating interest rates.
In April 2024, the Group repaid its €500 million Eurobond at maturity and, in May 2024, issued a new €500 million 8 year Eurobond
maturing in May 2032 at a coupon of 3.750% per annum. The new Eurobond was issued under the Group’s Guaranteed Euro Medium
Term Note Programme and the proceeds were used for general corporate purposes.
The RCF incorporates key sustainability targets linked to MAP2030, classifying the facility as a Sustainability-Linked Loan. Under the
terms of the agreement, the margin will be adjusted according to the Group’s performance against specified sustainability targets.
Short-term liquidity needs are met by cash and the RCF. As at 31 December 2024, the Group had no financial covenants in any of its
financing facilities.
The Group currently has investment grade credit ratings from both Moody’s (Baa1, outlook stable) and Standard & Poor’s (A-, outlook
stable).
The Group reviews its capital employed on a regular basis and makes use of several indicative ratios which are appropriate to the nature
of its operations and consistent with conventional industry measures. The principal ratios used include:
2024
2023
Net debt to underlying EBITDA (times) (see page 218)
1.7
0.3
Return on capital employed (%) (see page 218)
9.6
12.8
In order to manage its cost of capital, maintain an appropriate capital structure and meet its ongoing cash flow needs, the Group may
issue new debt instruments; adjust the level of dividends paid to shareholders; issue new shares to, or repurchase shares from, investors;
or dispose of assets to reduce its net debt exposure.
Mondi Group
Integrated report and financial statements 2024
175
22 Borrowings
2024
2023
€ million
Current
Non-current
Total
Current
Non-current
Total
Secured
Lease liabilities (see note 12)
24
104
128
21
104
125
Total secured
24
104
128
21
104
125
Unsecured
Bonds
—
1,842
1,842
500
1,345
1,845
Bank loans and overdrafts
39
6
45
38
11
49
Total unsecured
39
1,848
1,887
538
1,356
1,894
Total borrowings
63
1,952
2,015
559
1,460
2,019
Committed facilities drawn
1,863
1,870
Uncommitted facilities drawn
152
149
The Group’s borrowings as at 31 December are analysed by nature and underlying currency as follows:
2024/€ million
Floating rate
borrowings
Fixed rate
borrowings
Total carrying
value
Fair value
Euro
15
1,908
1,923
1,918
South African rand
4
29
33
33
Turkish lira
5
18
23
23
US dollar
5
9
14
14
Other currencies
—
22
22
22
Carrying value
29
1,986
2,015
Fair value
29
1,981
2,010
2023/€ million
Floating rate
borrowings
Fixed rate
borrowings
Total carrying
value
Fair value
Euro
20
1,911
1,931
1,895
South African rand
—
23
23
23
Turkish lira
5
28
33
33
US dollar
—
12
12
12
Other currencies
—
20
20
20
Carrying value
25
1,994
2,019
Fair value
25
1,958
1,983
In addition to the above, the Group swaps euro debt into other currencies through the foreign exchange market using foreign exchange
contracts, as disclosed in note 31, which has the effect of exposing the Group to the floating interest rates of these currencies.
The fair values of the Eurobonds are estimated with reference to the last price quoted in the secondary market. All other financial
liabilities are estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group
for similar financial instruments.
Mondi Group
Integrated report and financial statements 2024
176
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
The maturity analysis of the Group’s borrowings, presented net of interest, is as follows:
2024/€ million
<1 year
1–2 years
2–5 years
>5 years
Total1
Bonds
—
599
747
496
1,842
Bank loans and overdrafts
39
6
—
—
45
Lease liabilities (see note 12)
24
20
36
48
128
Total borrowings
63
625
783
544
2,015
Effective interest on borrowings net of amortised costs
and discounts
58
46
93
107
304
Total undiscounted cash flows
121
671
876
651
2,319
2023/€ million
<1 year
1–2 years
2–5 years
>5 years
Total1
Bonds
500
—
1,345
—
1,845
Bank loans and overdrafts
38
6
5
—
49
Lease liabilities
21
18
36
50
125
Total borrowings
559
24
1,386
50
2,019
Effective interest on borrowings net of amortised costs
and discounts
45
33
62
40
180
Total undiscounted cash flows
604
57
1,448
90
2,199
Note:
1
It has been assumed that, where applicable, interest and foreign exchange rates prevailing at the reporting date will not vary over the time periods remaining for future cash outflows.
23 Share capital and other reserves
Mondi plc is not restricted in the number of shares that can be issued. Any issue of shares is subject to shareholder approval. Mondi plc
ordinary shares issued on the London Stock Exchange and Johannesburg Stock Exchange have a nominal value of €0.22 (2023: €0.20).
All ordinary shares are called up, allotted and fully paid.
On 13 February 2024, the Group returned the net proceeds from the sale of the Group’s Russian assets to shareholders by way of a
special dividend of €1.60 per existing ordinary share. In addition, in order to maintain the comparability, so far as possible, of Mondi plc’s
share price before and after the special dividend, the special dividend was accompanied by a share consolidation, which took effect on
29 January 2024, resulting in shareholders receiving 10 new ordinary shares with a nominal value of €0.22 each for every 11 existing
ordinary shares with a nominal value of €0.20 each.
To effect the share consolidation, the Group issued 3 additional ordinary shares prior to the record date for the share consolidation,
increasing the number of ordinary shares from 485,553,780 ordinary shares to 485,553,783 ordinary shares, so that the number of the
existing ordinary shares in issue at the time of the consolidation was exactly divisible by 11, such that there was no remaining fraction
of a share. Following the share consolidation, the total number of ordinary shares issued decreased by 44,141,253 ordinary shares from
485,553,783 ordinary shares to 441,412,530 ordinary shares, while the total nominal value of the share capital of the Group remained
unchanged at €97 million.
Number of shares
€ million
At 31 December 20231
485,553,780
97
Shares issued
3
—
Effect of share consolidation
(44,141,253)
—
At 31 December 2024
441,412,530
97
Note:
1 There were no movements in the share capital of Mondi plc in 2023.
Own shares
Own shares represent the cost of shares in Mondi plc purchased in the market to satisfy share awards under the Group’s employee share
schemes (see note 24). These costs are reflected in the consolidated statement of changes in equity.
Own shares held
2024
2023
at 31 December
Number of
shares held
Average price
per share
Number of
shares held
Average price
per share
Mondi Incentive Schemes Trust
107,170
ZAR220.30
128,478
ZAR201.84
Mondi Employee Share Trust
768,520
GBP12.90
492,184
GBP14.10
Dividend waivers are in place in respect of the shares held by the Mondi Incentive Schemes Trust and the Mondi Employee Share Trust.
Mondi Group
Integrated report and financial statements 2024
177
23 Share capital and other reserves continued
Other reserves
€ million
Cumulative
translation
adjustment
reserve
Post-
retirement
benefits
reserve
Share-based
payment
reserve
Cash flow
hedge
reserve
Merger
reserve
Other
sundry
reserves
Total
At 1 January 2023
(859)
(35)
17
1
667
27
(182)
Other comprehensive income/(expense) for the
year
339
(16)
—
—
—
—
323
Hyperinflation monetary adjustment
—
(2)
—
—
—
—
(2)
Mondi share schemes’ charge
—
—
9
—
—
—
9
Issue of shares under employee share schemes
—
—
(7)
—
—
—
(7)
At 31 December 2023
(520)
(53)
19
1
667
27
141
Other comprehensive income/(expense) for the
year
64
(2)
—
(1)
—
—
61
Hyperinflation monetary adjustment (see note 7)
—
(4)
—
—
—
—
(4)
Mondi share schemes’ charge (see note 24)
—
—
9
—
—
—
9
Issue of shares under employee share schemes
—
—
(9)
—
—
—
(9)
At 31 December 2024
(456)
(59)
19
—
667
27
198
A description of the nature and purpose of each reserve is provided below. The accounting policies applied to each reserve are further
described in note 35.
Cumulative translation adjustment reserve
Exchange differences arising on the translation of the Group’s non-euro operations into the presentation currency of the Group are
recognised in other comprehensive income and accumulated in the cumulative translation adjustment reserve. The cumulative amount
is reclassified to profit or loss only on disposal or partial disposal of the non-euro operation.
Post-retirement benefits reserve
Actuarial gains and losses and the return on plan assets arising from the Group’s defined benefit pension and post-retirement medical
plans are recognised in other comprehensive income and accumulated in the post-retirement benefits reserve. Remeasurements recorded
in other comprehensive income are not recycled to the consolidated income statement, but those amounts recognised in other
comprehensive income may be transferred to retained earnings within equity.
Share-based payment reserve
The share-based payment reserve is used to recognise the grant date fair value of options issued to employees but not exercised
and the grant date fair value of shares awarded to employees but not yet vested.
Cash flow hedge reserve
The cash flow hedge reserve is used to recognise the effective portion of changes in the fair value of derivative financial instruments
that are designated as hedges of future cash flows.
Merger reserve
The merger reserve was recognised in respect of the demerger from Anglo American plc in 2007 and the simplification of the dual-listed
company structure in 2019.
Other sundry reserves
The other sundry reserves comprise various other reserves, which individually are not material and typically are not subject
to material changes.
Mondi Group
Integrated report and financial statements 2024
178
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
24 Share-based payments
Mondi share awards
The Group has established its own share-based payment arrangements to incentivise employees. Further details of the Group’s share
schemes are set out in the Remuneration report on page 120.
The fair values of the share awards granted under the Mondi schemes are calculated with reference to the facts and assumptions
presented below:
BSP 2024
BSP 2023
BSP 2022
Date of grant
3 May 2024
6 March 2023
10 March 2022
Vesting period (years)
3
3
3
Expected leavers p.a. (%)
5
5
5
Grant date fair value per instrument (GBP)
15.64
13.98
14.03
Grant date fair value per instrument (ZAR)
363.00
306.00
281.55
Number of shares conditionally awarded
299,272
596,448
541,730
LTIP 2024
LTIP 2023
LTIP 2022
Date of grant
3 May 2024
6 March 2023
10 March 2022
Vesting period (years)
3
3
3
Expected leavers p.a. (%)
5
5
5
Grant date fair value per instrument (GBP)
ROCE component
15.64
13.98
14.03
TSR component1
3.91
3.50
3.51
EPS component
15.64
13.98
—
Grant date fair value per instrument (ZAR)
ROCE component
363.00
306.00
281.55
TSR component1
90.75
76.50
70.39
EPS component
363.00
306.00
—
Number of shares conditionally awarded
635,790
613,826
614,253
Note:
1
The base fair value has been adjusted for contractually determined market-based performance conditions.
Since the 2023 LTIP grant, performance has been assessed against ROCE, relative TSR and an additional EPS metric. The inclusion of
this growth metric, together with ROCE and relative TSR, provides a more rounded assessment of performance.
All of these scheme awards will be settled at the end of the vesting cycle in either the award of ordinary shares in Mondi plc or the award
of nil-cost options to ordinary shares in Mondi plc. The Group has no obligation to settle the awards made under these schemes in cash.
An amount equal to the dividends that would have been paid on Bonus Share Plan (BSP) and Long-Term Incentive Plan (LTIP) share
awards during the holding period is paid to participants upon vesting.
The total fair value charge in respect of all the Mondi share awards for the year ended 31 December is made up as follows:
€ million
2024
2023
Bonus Share Plan
7
6
Long-Term Incentive Plan
2
3
Total share-based payment expense
9
9
The weighted average share price of share awards that vested during the period is as follows:
2024
2023
London Stock Exchange
GBP14.62
GBP14.00
Johannesburg Stock Exchange
ZAR352.85
ZAR308.52
Mondi Group
Integrated report and financial statements 2024
179
24 Share-based payments continued
A reconciliation of share award movements for the Mondi share schemes is shown below:
number of shares
BSP
LTIP
At 1 January 2023
879,083
1,498,338
Shares conditionally awarded
596,448
613,826
Shares vested
(159,633)
(226,044)
Shares lapsed
(85,841)
(389,797)
At 31 December 2023
1,230,057
1,496,323
Shares conditionally awarded
299,272
635,790
Shares vested
(229,107)
(246,560)
Shares lapsed
(7,581)
(165,057)
At 31 December 2024
1,292,641
1,720,496
25 Retirement benefits
The Group operates post-retirement defined contribution, post-retirement defined benefit pension plans, and post-retirement
medical plans.
Defined contribution plans
The assets of the defined contribution plans are held separately in independently administered funds. The charge in respect of
these plans of €14 million (2023: €14 million) is calculated on the basis of the contribution payable by the Group in the financial year.
There were no material outstanding or prepaid contributions recognised in relation to these plans as at the reporting dates presented.
The expected contributions to be paid to defined contribution plans during 2025 are €15 million.
Defined benefit pension plans and post-retirement medical plans
The Group operates in excess of 100 defined benefit retirement plans across its global operations. A large proportion of the Group’s
defined benefit plans are closed to new members.
The majority of these plans are unfunded and provide pensions and severance benefits to members of those plans.
The most significant unfunded defined benefit plans are operated in Austria and Germany, and funded plans are operated primarily
in Canada and the UK. These plans are established in accordance with applicable local labour legislation and/or collective agreements
with participating employees.
The benefits are based on a variety of factors, the most significant of which are a combination of pensionable service and final salary.
A number of these plans also provide additional benefits in the event of death in service, disability or ill-health retirement, which are
derived from the final salary benefit formula.
The assets of the funded plans are held separately in independently administered funds, in accordance with statutory requirements or
local practice where those funds are operated. The boards of trustees of these plans are required to act in the best interests of the plans
and all relevant stakeholders of the plans (active employees, inactive employees, retirees and employers), and are responsible for the
Investment policy with regard to the assets of the plans.
The post-retirement medical plans provide health benefits to retired employees and certain of their dependants. Eligibility for cover
is dependent upon certain criteria. The South African plan is unfunded and has been closed to new participants since 1 January 1999.
Except for the actuarial risks set out below, the Group has not identified any additional specific risks in respect of these plans.
In June 2023, the UK High Court ruled that certain historical amendments for contracted out defined benefit schemes will be void unless
the scheme actuary had confirmed, when the amendment was made, that the pension scheme would continue to satisfy the statutory
standard for contracted-out schemes. Following a hearing in late June 2024, the UK Court of Appeal issued a judgement on 25 July 2024
upholding this ruling. The Trustees of the Group’s two UK Pension Schemes have recently undertaken Section 37 Reviews through their
lawyers and have confirmed that there is no material risk to either of the schemes resulting from historical deed amendments.
Mondi Group
Integrated report and financial statements 2024
180
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
Defined benefit plans typically expose the Group to the following actuarial risks:
Investment risk (asset volatility)
The present value of the net retirement benefit liability/asset is calculated using a discount rate
determined by reference to high-quality bond yields. If the return on plan assets is below this
rate, it will create a plan deficit that needs to be funded/guaranteed by the employer.
Interest risk
A decrease in the bond interest rate will increase plan liabilities; however, this will be partially
offset by an increase in the value of the plan’s fixed rate debt instruments.
Longevity risk
The present value of the net retirement benefit liability/asset is calculated by reference to the
best estimate of the mortality of plan participants both during and after their employment.
An increase in the life expectancy of the plan participants will increase the plan liabilities.
Salary risk
The present value of the net retirement benefit liability/asset is calculated by reference to the
expected future salaries of plan participants. An increase in the salary of the plan participants will
increase the plan liabilities.
Medical cost inflation risk
The present value of the post-retirement medical plans is calculated by reference to expected
future medical costs. An increase in medical cost inflation will increase the plan liabilities.
Independent qualified actuaries carry out full valuations every year using the projected unit credit method.
Actuarial assumptions
The weighted average principal assumptions used in the actuarial valuations are detailed below:
2024
2023
%
Europe
South
Africa
Other
regions1
Europe
South
Africa
Other
regions1
Discount rate
3.9
10.2
8.1
3.6
10.8
18.1
Rate of inflation
2.4
5.6
5.0
2.5
6.1
14.8
Rate of increase in salaries
2.8
6.5
6.8
2.7
7.1
15.9
Rate of increase of pensions in payment
2.6
—
2.0
2.7
—
—
Expected average increase of medical costs
—
7.0
—
—
8.7
—
Note:
1 The change in actuarial assumptions in other regions is mainly due to the pension plan related to the Hinton Pulp mill acquired in February 2024.
The assumption for the discount rate for plan liabilities is based on AA corporate bonds which are of a suitable duration and currency.
In South Africa, the discount rate assumption has been based on the zero coupon government bond yield curve.
Mortality assumptions
The assumed remaining life expectancies on retirement at age 65 are:
2024
2023
years
Europe
South
Africa
Other
regions
Europe
South
Africa
Other
regions
Retiring today
Males
13.6-25.0
16.3
15.3-22.0
13.6-23.3
16.3
15.3-20.7
Females
17.5-28.7
20.4
17.7-25.0
17.5-25.8
20.4
17.7-25.3
Retiring in 20 years
Males
13.6-27.5
16.3
15.3-24.0
13.6-26.6
18.7
15.3-20.0
Females
17.5-31.1
20.4
17.7-26.0
17.5-28.8
23.0
17.7-25.3
The mortality assumptions have been based on published mortality tables in the relevant jurisdictions.
Mondi Group
Integrated report and financial statements 2024
181
25 Retirement benefits continued
The amounts recognised in the consolidated statement of financial position are determined as follows:
2024
2023
€ million
Europe
South
Africa
Other
regions
Total
Europe
South
Africa
Other
regions
Total
Present value of unfunded liabilities
(97)
(29)
(14)
(140)
(97)
(29)
(14)
(140)
Present value of funded liabilities
(78)
—
(43)
(121)
(84)
—
—
(84)
Present value of plan liabilities
(175)
(29)
(57)
(261)
(181)
(29)
(14)
(224)
Fair value of plan assets
63
—
40
103
70
—
—
70
Plan liabilities net of plan assets
(112)
(29)
(17)
(158)
(111)
(29)
(14)
(154)
Amounts reported in consolidated
statement of financial position
Defined benefit pension plans
3
—
—
3
5
—
—
5
Net retirement benefits asset
3
—
—
3
5
—
—
5
Defined benefit pension plans
(115)
—
(17)
(132)
(116)
—
(14)
(130)
Post-retirement medical plans
—
(29)
—
(29)
—
(29)
—
(29)
Net retirement benefits liability
(115)
(29)
(17)
(161)
(116)
(29)
(14)
(159)
The changes in the present value of defined benefit liabilities and fair value of plan assets are as follows:
Defined benefit liabilities
Fair value of plan assets
Net liability
€ million
2024
2023
2024
2023
2024
2023
At 1 January
(224)
(220)
70
73
(154)
(147)
Included in consolidated income statement
Current service cost
(7)
(4)
—
—
(7)
(4)
Past service cost
(1)
—
—
—
(1)
—
Loss from settlement
—
(1)
(1)
—
(1)
(1)
Interest
(14)
(11)
5
3
(9)
(8)
Included in consolidated statement of comprehensive income
Remeasurement gains/(losses)
3
(20)
—
—
3
(20)
Return on plan assets
—
—
(5)
(3)
(5)
(3)
Acquired through business combinations (see note 26)
(38)
(3)
38
—
—
(3)
Contributions paid by employer
—
—
2
2
2
2
Benefits paid
22
28
(7)
(6)
15
22
Currency movements
(2)
7
1
1
(1)
8
At 31 December
(261)
(224)
103
70
(158)
(154)
Mondi Group
Integrated report and financial statements 2024
182
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
The expected maturity analysis of undiscounted retirement benefits is as follows:
2024
2023
€ million
Defined benefit
pension plans
Post-retirement
medical plans
Total
Defined benefit
pension plans
Post-retirement
medical plans
Total
Less than a year
12
3
15
10
3
13
Between one and two years
9
4
13
10
3
13
Between two to five years
27
11
38
29
11
40
After five years
225
138
363
148
135
283
The weighted average duration of the defined retirement benefits liability for South Africa is 7 years (2023: 7 years), Europe 10 years
(2023: 10 years) and other regions 18 years (2023: 15 years).
It is expected that the Group’s share of contributions will increase as the schemes’ members age. The expected contributions to be paid
to defined benefit pension plans and post-retirement medical plans during 2025 are €14 million.
The market values of the plan assets in these plans are detailed below:
2024
2023
€ million
Quoted
Unquoted
Total
Quoted
Unquoted
Total
External equity
—
15
15
—
—
—
Bonds
—
23
23
—
3
3
Insurance contracts
—
58
58
—
64
64
Cash
1
—
1
3
—
3
Other
—
6
6
—
—
—
Fair value of plan assets
1
102
103
3
67
70
The majority of the Group's plan assets are located in UK and Canada pension schemes.
The UK pension schemes are closed, have no active members and have undertaken ‘buy-ins’ in 2022 and 2023 by purchasing insured
annuity contracts to fund their future liabilities. The next stage for the two UK pension schemes is to complete buy-outs by transferring
their liabilities to third parties, followed by the closure of these schemes. The purchased insured annuity contracts exactly fund the future
payment benefits of the scheme, eliminating the risks for future scheme deficits.
As part of the acquisition of Hinton Pulp mill in Alberta (Canada) from West Fraser Timber Co. Ltd the Group was required to establish a
registered pension plan to replace the prior plan sponsored by West Fraser Mills Ltd. The plan has been established for all transferred
employees who participated in the prior plan sponsored by West Fraser Mills Ltd for service from and after the closing date.
The fair values of plan assets are determined in accordance with IAS 19.
The actual return on plan assets in respect of defined benefit plans was €nil (2023: €nil).
The market value of assets is used to determine the funding level of the plans and is sufficient to cover 85% (2023: 83%) of the benefits which
have accrued to members, after allowing for expected increases in future earnings and pensions. Companies within the Group are paying
contributions at rates agreed with the plans’ trustees and in accordance with local independent actuarial advice and statutory provisions.
In certain jurisdictions, Group plans are subject to minimum funding requirements. At 31 December 2024, these minimum funding
requirements did not give rise to the recognition of any additional liabilities.
Sensitivity analyses
The sensitivity analyses below have been determined based on reasonably possible changes to the respective assumptions occurring
at the end of the financial year, while holding all other assumptions constant.
The sensitivity analyses may not be representative of the actual changes in the net retirement benefits asset/(liability), as it is unlikely that
the changes in assumptions would occur in isolation of one another and some of the assumptions may be inter-related. The projected
unit credit method was used to calculate the sensitivity analyses below.
The sensitivity table is based on a 1% change by reference to the movement in actuarial assumptions in the tables above; however,
the estimates may vary by greater amounts. Therefore, the Board considers the retirement benefit obligations a significant
accounting estimate.
Mondi Group
Integrated report and financial statements 2024
183
25 Retirement benefits continued
€ million
1% increase
1% decrease
Discount rate
(Decrease)/increase in current service cost
(1)
2
(Decrease)/increase in net retirement benefits liability
(26)
32
Rate of inflation
Increase in current service cost
1
—
Increase/(decrease) in net retirement benefits liability
16
(12)
Rate of increase in salaries
Increase in current service cost
1
—
Increase/(decrease) in net retirement benefits liability
9
(6)
Rate of increase of pensions in payment
Decrease in current service cost
2
—
Increase/(decrease) in net retirement benefits liability
8
(6)
Medical cost trend rate
Decrease in aggregate of the current service cost and interest cost
—
—
Increase/(decrease) in net retirement benefits liability
1
(1)
Mortality rates
1-year increase
Decrease in current service cost
(1)
Increase in net retirement benefits liability
(8)
26 Business combinations
To 31 December 2024
On 5 February 2024, the Group announced the completion of the acquisition of Hinton Pulp mill in Alberta (Canada) from West Fraser
Timber Co. Ltd (West Fraser) for an agreed consideration of USD 5 million, before working capital adjustments. The mill has the capacity
to produce around 250,000 tonnes of pulp per annum and will provide the Group with access to local, high-quality fibre from a well-
established wood basket as part of a long-term partnership with West Fraser. The Group intends to invest in the mill to improve
productivity and sustainability performance and, subject to pre-engineering and permitting, expand the facility primarily with a new kraft
paper machine which will integrate its paper bag operations in the Americas and support future growth.
Hinton's revenue for the year ended 31 December 2024 was €115 million with a loss after tax of €21 million. Since the date of acquisition,
Hinton's revenue of €102 million and a loss after tax of €17 million have been included in the consolidated income statement.
Details of the net assets acquired, as adjusted from book to fair value, are as follows:
€ million
Fair value
Net assets acquired
Property, plant and equipment
4
Inventories
15
Trade and other receivables
17
Total assets
36
Trade and other payables
(11)
Deferred tax liabilities
(4)
Other provisions
(2)
Total liabilities
(17)
Net assets acquired
19
Gain on purchase before transaction-related costs
(13)
Net cash paid per consolidated statement of cash flows
6
Transaction costs of €4 million were charged to other net operating expenses in the consolidated income statement.
Mondi Group
Integrated report and financial statements 2024
184
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
The acquisition is a purchase of assets that constitutes a business accounted for under IFRS 3, 'Business Combinations'. The purchase
price allocation resulted in a net gain on purchase of €9 million, net of transaction-related costs, as the fair value of net assets acquired
was in excess of the consideration paid. The gain on purchase is attributable to the mill’s loss-making operations at the time of the
transaction and the need for investment to improve productivity and sustainability performance. The gain was recognised in other net
operating expenses in the consolidated income statement.
The fair values of assets acquired and liabilities assumed in business combinations are level 3 measures in terms of the fair value
measurement hierarchy. Property, plant and equipment has been measured at fair value using relevant valuation methods accepted under
IFRS 13, 'Fair Value Measurement', with related deferred tax adjustments. Management has considered the impact of environmental and
climate risks on the estimated fair values of Hinton's property, plant and equipment. These considerations did not have a material impact.
To 31 December 2023
On 12 January 2023, the Group completed the acquisition of the Duino mill near Trieste (Italy) from the Burgo Group. Details of this
business combination were disclosed in note 25 of the Group’s Integrated report and financial statements 2023.
27 Consolidated cash flow analysis
(a) Reconciliation of profit before tax to cash generated from operations
€ million
2024
2023
Profit before tax from continuing operations
378
682
Depreciation and amortisation
443
408
Impairment of property, plant and equipment (not included in special items)
—
3
Share-based payments
9
9
Net cash flow effect of current and prior year special items
116
17
Net finance costs
70
73
Net monetary loss/(gain) arising from hyperinflationary economies
5
(2)
Net loss from joint ventures
3
5
Impairment of investments in joint ventures
—
5
Increase/(decrease) in provisions
13
(17)
Decrease in net retirement benefits
(8)
(19)
Net movement in working capital
(108)
229
(Increase)/decrease in inventories
(70)
389
(Increase)/decrease in operating receivables
(140)
56
Increase/(decrease) in operating payables
102
(216)
Fair value gains on forestry assets
(7)
(128)
Felling costs
92
87
Net gain on disposal of property, plant and equipment
(12)
(13)
Insurance reimbursements for property damages
(13)
(17)
Other adjustments
(11)
(10)
Cash generated from continuing operations
970
1,312
(b) Cash and cash equivalents
€ million
2024
2023
Cash and cash equivalents per consolidated statement of financial position
278
1,592
Bank overdrafts included in short-term borrowings
(9)
—
Cash and cash equivalents per consolidated statement of cash flows
269
1,592
The cash and cash equivalents of €278 million (2023: €1,592 million) include money market funds of €50 million (2023: €840 million)
valued at fair value through profit and loss, with the remaining balance carried at amortised cost with fair values approximate to the
carrying values presented.
The Group operates in certain countries where the existence of exchange controls or access to hard currency may restrict the use
of certain cash balances outside of those countries. These restrictions are not expected to have any material effect on the Group’s ability
to meet its ongoing obligations.
Mondi Group
Integrated report and financial statements 2024
185
27 Consolidated cash flow analysis continued
(c) Movement in net debt
The Group’s net debt position is as follows:
€ million
Cash and
cash
equivalents
Current
financial
asset
investments1
Subtotal
Debt due
within 1 year2
Debt due
after 1 year
Debt-related
derivative
financial
instruments1
Subtotal
Total net
debt
At 1 January 2023
1,061
1
1,062
(96)
(1,970)
(7)
(2,073)
(1,011)
Cash flow
336
—
336
40
—
77
117
453
Cash movement from continuing
operations
(248)
—
(248)
—
—
—
—
(248)
Proceeds from borrowings
—
—
—
(16)
—
—
(16)
(16)
Repayment of borrowings
—
—
—
33
—
—
33
33
Repayment of lease liabilities
—
—
—
22
—
—
22
22
Net cash outflow from debt-related
derivative financial instruments
—
—
—
—
—
77
77
77
Discontinued operations
584
—
584
1
—
—
1
585
Additions to lease liabilities
—
—
—
(14)
(18)
—
(32)
(32)
Disposal of lease liabilities
—
—
—
2
6
—
8
8
Movement in unamortised loan costs
—
—
—
(1)
(2)
—
(3)
(3)
Net movement in fair value of
derivative financial instruments
—
—
—
—
—
(63)
(63)
(63)
Reclassification
—
—
—
(519)
519
—
—
—
Elimination of assets and liabilities
previously classified as held for sale
320
—
320
(1)
(23)
—
(24)
296
Currency movements
(125)
—
(125)
30
28
—
58
(67)
At 31 December 2023
1,592
1
1,593
(559)
(1,460)
7
(2,012)
(419)
Cash flow
(1,311)
—
(1,311)
535
(496)
47
86
(1,225)
Cash movement from continuing
operations
(1,311)
—
(1,311)
—
—
—
—
(1,311)
Proceeds from Eurobonds
—
—
—
—
(496)
—
(496)
(496)
Repayment of Eurobonds
—
—
—
500
—
—
500
500
Proceeds from borrowings
—
—
—
(9)
(215)
—
(224)
(224)
Repayment of borrowings
—
—
—
18
215
—
233
233
Repayment of lease liabilities
—
—
—
26
—
—
26
26
Net cash outflow from debt-related
derivative financial instruments
—
—
—
—
—
47
47
47
Additions to lease liabilities
—
—
—
(11)
(19)
—
(30)
(30)
Disposal of lease liabilities
—
—
—
—
2
—
2
2
Movement in unamortised loan costs
—
—
—
—
(2)
—
(2)
(2)
Net movement in fair value of
derivative financial instruments
—
—
—
—
—
(49)
(49)
(49)
Reclassification
—
—
—
(25)
25
—
—
—
Currency movements
(12)
(1)
(13)
6
(2)
—
4
(9)
At 31 December 2024
269
—
269
(54)
(1,952)
5
(2,001)
(1,732)
Notes:
1
Included in financial instruments in the consolidated statement of financial position.
2
Excludes bank overdrafts of €9 million (2023: €nil), which are included in cash and cash equivalents (see note 27b).
The Group incurred interest expense of €107 million (2023: €122 million) in relation to bank overdrafts, loans and lease liabilities.
Included in this expense is €35 million (2023: €53 million) relating to forward exchange rates on derivative contracts and interest paid
on borrowings of €44 million (2023: €50 million).
Mondi Group
Integrated report and financial statements 2024
186
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
28 Russian operations (discontinued operations)
The Group has concluded its exit from Russia with the completion of the disposal of the packaging converting operations and the
Syktyvkar mill on 30 June 2023 and 4 October 2023 respectively. The net proceeds from the sale of the Russian assets were distributed
to shareholders on 13 February 2024 by way of a special dividend (see notes 9, 10, and 23 for further details).
Syktyvkar mill
On 17 September 2023, the Group announced that it had entered into an agreement to sell its Syktyvkar mill to Sezar Invest LLC (Sezar
Invest) for a total cash consideration of RUB 80 billion. The disposal was completed and ownership of the Syktyvkar mill was transferred
to Sezar Invest on 4 October 2023 after the Group had received RUB 57 billion (€547 million) into its London bank account and a letter
of credit for the remaining RUB 23 billion. The final two instalments of the consideration for RUB 23 billion (€229 million) were received
in November and December 2023 respectively, resulting in total proceeds received in cash of €776 million.
€ million
2023
Proceeds from the disposal of business, net of cash and cash equivalents
389
Cash and cash equivalents disposed
387
Consideration in cash
776
Carrying amount of net assets disposed
(875)
Loss on reclassification of foreign currency translation reserve
(599)
Related transaction costs
(12)
Loss on disposal of business, net of related transaction costs and tax
(710)
Packaging converting operations
On 30 June 2023, the Group completed the sale of its three Russian packaging converting operations to the Gotek Group for a
consideration of RUB 1.6 billion resulting in proceeds of €30 million. The three packaging converting operations comprise a corrugated
solutions plant, LLC Mondi Lebedyan, and two consumer flexibles plants, LLC Mondi Aramil and LLC Mondi Pereslavl.
€ million
2023
Proceeds from the disposal of business, net of cash and cash equivalents
12
Cash and cash equivalents disposed
18
Consideration in cash
30
Carrying amount of net assets disposed
(40)
Loss on reclassification of foreign currency translation reserve
(34)
Related transaction costs
(2)
Loss on disposal of business, net of related transaction costs and tax
(46)
Financial performance
The financial performance and cash flow information of the discontinued operations are set out in the tables below and cover the period
until the respective dates of disposal in 2023:
€ million
2023
External revenue
709
Expenses
(561)
Profit before tax
148
Related tax charge
(47)
Profit for the year of discontinued operations
101
Loss on sale of business, net of related transaction costs and tax
(756)
Loss from discontinued operations attributable to shareholders
(655)
Exchange differences on translation of discontinued non-euro operations
(227)
Reclassification of foreign currency translation reserve to consolidated income statement on disposal of businesses of
discontinued operations
633
Other comprehensive income from discontinued operations attributable
to shareholders
406
Total comprehensive expense from discontinued operations attributable
to shareholders
(249)
Mondi Group
Integrated report and financial statements 2024
187
28 Russian operations (discontinued operations) continued
Earnings per share (EPS) from discontinued operations attributable to shareholders
euro cents
2023
Basic EPS
(135.0)
Diluted EPS
(135.0)
Cash flow statement
€ million
2023
Net cash generated from operating activities
223
Net cash generated from investing activities1
368
Net cash used in financing activities
(7)
Net increase in cash and cash equivalents of discontinued operations
584
Note:
1
Includes proceeds from the sale of the Russian operations of €806 million less cash disposed of €405 million.
29 Capital commitments
Capital expenditure contracted for at the end of the financial year but not recognised as liabilities is as follows:
€ million
2024
2023
Property, plant and equipment
371
632
Intangible assets
1
2
Total capital commitments
372
634
30 Contingent liabilities
The Group’s contingent liabilities as at 31 December 2024 were €nil (2023: €3 million). No acquired contingent liabilities have been
recorded in the Group’s consolidated statement of financial position for either year presented.
31 Financial instruments
The Group’s trading and financing activities expose it to various financial risks that, if left unmanaged, could adversely impact current or
future earnings. Although not necessarily mutually exclusive, these financial risks are categorised separately according to their different
generic risk characteristics and include market risk (foreign exchange risk and interest rate risk), credit risk and liquidity risk. The Group
manages all of these financial risks in order to minimise their potential adverse impact on the Group’s financial performance.
The principles, practices and procedures governing the Group-wide financial risk management process have been approved by the
Board and are overseen by the Executive Committee. In turn, the Executive Committee delegates authority to a central Treasury function
(Group Treasury) for the practical implementation of the financial risk management process across the Group and for ensuring that
the Group’s entities adhere to specified financial risk management policies. Group Treasury continually reassesses and reports on the
financial risk environment, identifying, evaluating and hedging financial risks by entering into derivative contracts with counterparties
where appropriate. The Group does not take speculative positions on derivative contracts.
Mondi Group
Integrated report and financial statements 2024
188
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
(a) Financial instruments by category
2024/€ million
Fair value
hierarchy1
At amortised
cost
At fair value
through profit or
loss
Total
Financial assets
Trade and other receivables2
1,069
—
1,069
Financial asset investments
Level 2
16
13
29
Derivative financial instruments
Level 2
—
10
10
Cash and cash equivalents
Level 1
228
50
278
Total
1,313
73
1,386
2023/€ million
Fair value
hierarchy1
At amortised
cost
At fair value
through profit or
loss
Total
Financial assets
Trade and other receivables2
1,015
—
1,015
Financial asset investments
Level 2
16
13
29
Derivative financial instruments
Level 2
—
13
13
Cash and cash equivalents
Level 1
752
840
1,592
Total
1,783
866
2,649
Notes:
1
Fair value hierarchy level is disclosed for financial assets measured at fair value through profit or loss.
2
Excludes tax, social security and prepayments.
The fair values of financial assets investments represent the published prices of the securities concerned.
2024/€ million
Fair value
hierarchy1
At amortised
cost
At fair value
through profit or
loss
At fair value
through OCI
Total
Financial liabilities
Borrowings – bonds
(1,842)
—
—
(1,842)
Borrowings – loans and overdrafts
(45)
—
—
(45)
Borrowings – lease liabilities2
(128)
—
—
(128)
Trade and other payables3
(1,204)
—
—
(1,204)
Derivative financial instruments
Level 2
—
(8)
(1)
(9)
Total
(3,219)
(8)
(1)
(3,228)
2023/€ million
Fair value
hierarchy1
At amortised
cost
At fair value
through profit or
loss
At fair value
through OCI
Total
Financial liabilities
Borrowings – bonds
(1,845)
—
—
(1,845)
Borrowings – loans and overdrafts
(49)
—
—
(49)
Borrowings – lease liabilities2
(125)
—
—
(125)
Trade and other payables3
(1,146)
—
—
(1,146)
Derivative financial instruments
Level 2
—
(4)
—
(4)
Total
(3,165)
(4)
—
(3,169)
Notes:
1
Fair value hierarchy level is disclosed for financial liabilities measured at fair value through profit or loss.
2
Lease liabilities are financial instruments outside of scope of IFRS 9, 'Financial Instruments', and are accounted for under IFRS 16, 'Leases' (see note 35).
3 Excludes tax, social security and deferred income.
Mondi Group
Integrated report and financial statements 2024
189
31 Financial instruments continued
(b) Fair value measurement
There have been no transfers of assets or liabilities between levels of the fair value hierarchy during the year.
Except as detailed below, the carrying values of financial instruments at amortised cost as presented in the consolidated financial
statements approximate their fair values.
Carrying amount
Fair value
€ million
2024
2023
2024
2023
Financial liabilities
Borrowings
2,015
2,019
2,010
1,983
The fair values of the Eurobonds represent level 1 fair values and are estimated with reference to the last price quoted in the secondary
market. The fair values of all other borrowings represent level 3 fair values and are estimated by discounting the future contractual cash
flows at the current market interest rate that is available to the Group for similar financial instruments.
(c) Financial risk management
Market risk
The Group’s activities expose it primarily to foreign exchange and interest rate risk. Both risks are actively monitored on a regular basis
and managed through the use of foreign exchange contracts and interest rate swaps as appropriate. Although the Group’s cash flows
are exposed to movements in key input and output prices, such movements represent the commercial rather than financial risks inherent
to the Group.
Foreign exchange risk
The Group operates globally and is exposed to foreign exchange risk in the normal course of its business. Multiple currency exposures
arise from commercial transactions denominated in foreign currencies, recognised financial assets and liabilities (monetary items)
denominated in foreign currencies and translational exposure on net investments in non-euro operations.
Foreign exchange contracts
The Group’s Treasury policy requires subsidiaries to actively manage foreign currency transactional exposures against their functional
currencies by entering into foreign exchange contracts. For segmental reporting purposes, each subsidiary enters into, and accounts
for, foreign exchange contracts with Group treasury or with counterparties that are external to the Group, whichever is more
commercially appropriate.
Only material balance sheet exposures and highly probable forecast capital expenditure transactions are hedged.
Foreign currency sensitivity analysis
Foreign exchange risk sensitivity analysis has been performed on the foreign currency exposures inherent in the Group’s financial assets
and financial liabilities at the reporting dates presented, net of related foreign exchange contracts. The sensitivity analysis provides an
indication of the impact on the Group’s reported earnings of reasonably possible changes in the currency exposures embedded within
the functional currency environments that the Group operates in. In addition, an indication is provided of how reasonably possible
changes in foreign exchange rates might impact on the Group’s equity, as a result of fair value adjustments to foreign exchange
contracts designated as cash flow hedges. Reasonably possible changes are based on an analysis of historical currency volatility,
together with any relevant assumptions regarding near-term future volatility.
Net monetary foreign currency exposures by functional currency zone for continuing operations
Net monetary foreign currency exposures – assets/(liabilities)1
2024
2023
€ million
EUR
Other
EUR
Other
Functional currency zones2
Euro
—
(34)
—
(17)
South African rand
—
(3)
1
(7)
Egyptian pound
(31)
1
(79)
1
Czech koruna
4
(1)
(3)
—
Polish zloty
(9)
7
(5)
2
Swedish krona
—
—
(11)
2
Turkish lira
2
1
6
1
Other
(5)
18
(42)
(2)
Notes:
1
Presented in euro, the presentation currency of the Group.
2
Net monetary exposures represent financial assets less financial liabilities denominated in currencies other than the applicable functional currency, adjusted for the effects
of foreign exchange risk hedging, excluding cash flow hedging of non-monetary assets and liabilities.
Mondi Group
Integrated report and financial statements 2024
190
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
Functional to foreign currency net monetary exposure sensitivity
Functional to foreign currency net monetary exposure sensitivity is €1 million or less for each major currency assuming a 5% appreciation
and/or depreciation of functional currency, with the exception of euro which has an exposure sensitivity of €2 million (2023: €1 million)
and Egyptian pound of €2 million (2023: €4 million).
Interest rate risk
The Group holds cash and cash equivalents, which earn interest at a variable rate, and has variable and fixed rate debt in issue.
Consequently, the Group is exposed to interest rate risk. Although the Group has fixed rate debt in issue, the Group’s accounting policy
stipulates that all borrowings are held at amortised cost. As a result, the carrying value of fixed rate debt is not sensitive to changes in
credit conditions in the relevant debt markets, and there is, therefore, no exposure to fair value interest rate risk.
Management of cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with short-term highly liquid investments which have
a maturity of three months or less from the date of acquisition. Centralised cash pooling arrangements are in place, which ensure that
cash is utilised most efficiently for the ongoing working capital needs of the Group’s operating units and, in addition, to ensure that the
Group earns the most advantageous rates of interest available.
Management of variable rate debt
The Group has multiple variable rate debt facilities, of which the most significant is the Syndicated Revolving Credit Facility (see note 21).
The Group’s cash and cash equivalents act as a natural hedge to movements in the relevant interbank lending rates on its variable rate
debt, subject to any interest rate differentials that exist between the Group’s corporate saving and lending rates.
Net variable rate debt sensitivity analysis
The net variable rate exposure represents variable rate debt less the future cash outflows swapped from variable to fixed via interest
rate swap instruments and cash and cash equivalents. Reasonably possible changes in interest rates have been applied to the net
variable rate exposure, denominated by currency, in order to provide an indication of the possible impact on the Group’s consolidated
income statement.
Interest rate risk sensitivities on variable rate debt
Interest rate risk exposures
2024
2023
€ million
EUR
Other
Total
EUR
Other
Total
Total borrowings
1,923
92
2,015
1,931
88
2,019
Less:
Fixed rate borrowings
(1,841)
(17)
(1,858)
(1,844)
(25)
(1,869)
Lease liabilities
(67)
(61)
(128)
(67)
(58)
(125)
Cash and cash equivalents
(148)
(130)
(278)
(985)
(607)
(1,592)
Net variable rate debt and exposure
(133)
(116)
(249)
(965)
(602)
(1,567)
Included in other is net variable exposure to various currencies, the most significant of which is Turkish lira (2023: Turkish lira).
The potential impact on the Group’s consolidated equity resulting from the application of a 50 basis point increase to the variable interest
rate exposure would be a profit of €1 million and vice versa for a 50 basis point reduction.
In addition to the above, the Group swaps euro debt into other currencies through the foreign exchange market using foreign exchange
contracts, which has the effect of exposing the Group to the interest rates of these currencies. The currencies swapped into/(out of)
and the amounts as at 31 December were as follows:
€ million
2024
2023
Short-dated contracts with tenures of less than 12 months
Czech koruna
681
514
Pound sterling
7
107
Polish zloty
515
552
South African rand
203
212
Swedish krona
179
61
Thai baht
74
70
US dollar
206
413
Other
171
160
Total swapped against the euro
2,036
2,089
Mondi Group
Integrated report and financial statements 2024
191
31 Financial instruments continued
Credit risk
The Group’s principal credit risk is the risk of customers defaulting on sales invoices raised. The Group’s exposure to the credit risk
inherent in its trade receivables and the associated risk management techniques that the Group deploys in order to mitigate this risk
are discussed in note 18. Additionally, the Group has credit risk on the investment of cash and derivative transactions with certain financial
institutions. The Group Treasury manages the risk on these investments within approved credit limits.
Several Group entities have also issued certain financial guarantees to external counterparties in order to achieve competitive funding
rates for specific debt agreements entered into by other Group entities. None of these financial guarantees contractually obligates the
Group to pay more than the recognised financial liabilities in the entities concerned. As a result, these financial guarantee contracts have
no bearing on the credit risk profile of the Group as a whole.
Liquidity risk
Liquidity risk is the risk that the Group could experience difficulties in meeting its commitments to creditors as financial liabilities fall due
for payment. The Group manages its liquidity risk by using reasonable and retrospectively assessed assumptions to forecast the future
cash-generative capabilities and working capital requirements of the businesses it operates and by maintaining sufficient reserves,
committed borrowing facilities and other credit lines as appropriate.
The following table shows the amounts available to draw down on the Group’s committed loan facilities:
€ million
2024
2023
Expiry date
Two to five years
750
750
Above five years
—
4
Total committed facilities available (see note 21)
750
754
Forecast liquidity represents the Group’s expected cash inflows, generated principally from sales made to customers, less the Group’s
expected cash outflows, related principally to the payment of employees, supplier payments and the repayment of borrowings plus the
payment of any interest accruing thereon. The matching of these cash inflows and outflows rests on the expected ageing profiles of the
underlying assets and liabilities.
Short-term financial assets and financial liabilities are represented primarily by the Group’s trade receivables and trade payables.
The matching of the cash flows that result from trade receivables and trade payables typically takes place over a period of three
to four months from recognition in the consolidated statement of financial position and is managed to ensure the ongoing operating
liquidity of the Group.
Financing cash outflows may be longer term in nature. The Group does not hold long-term financial assets to match against these
commitments, but is significantly invested in long-term non-financial assets which generate the sustainable future cash inflows, net
of future capital expenditure requirements, needed to service and repay the Group’s borrowings.
(d) Derivative financial instruments
At 31 December 2024, the Group recognised total derivative assets of €10 million (2023: €13 million) and derivative liabilities of
€9 million (2023: €4 million). The net asset of €1 million (2023: €9 million) will mature within one year.
The notional amount of €2,719 million (2023: €2,678 million) is the aggregate face value of all derivatives outstanding at the reporting
date. They do not indicate the contractual future cash flows of the derivative instruments held or their current fair value and, therefore,
do not indicate the Group’s exposure to credit or market risks. Of the €2,719 million (2023: €2,678 million) aggregate notional amount,
€2,690 million (2023: €2,643 million) relates primarily to the economic hedging of foreign exchange exposures on short-term
intercompany funding balances, which are fully eliminated on consolidation.
Derivative financial instruments are not offset in the consolidated statement of financial position; however, they are subject to
International Swaps and Derivatives Association (ISDA) master netting agreements. The reduction in credit risk as a result of these
enforceable master netting arrangement or similar agreements is €4 million (2023: €4 million).
Hedging
The Group designates certain derivative financial instruments as cash flow hedges. The fair value gains/(losses) are reclassified from
the cash flow hedge reserve to the consolidated income statement in the period when the hedged transaction affects profit and loss.
For non-current non-financial assets, these gains/(losses) are included in the carrying value of the asset and depreciated over the same
useful life as the cost of the asset.
The Group designates both the spot and forward elements of forward foreign exchange contracts to hedge its currency risk and applies
a hedge ratio of 1:1. The Group determines the existence of an economic relationship between the hedging instrument and hedged item
based on the currency, amount and timing of their respective cash flows. The Group’s policy is for critical terms of the forward exchange
contracts to align with the hedged items and uses the same method to determine hedge ineffectiveness.
Fair value gains of €1 million (2023: losses of €1 million) were reclassified from the cash flow hedge reserve to property, plant
and equipment during the current year.
Mondi Group
Integrated report and financial statements 2024
192
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
32 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. These related party transactions have been contracted on an arm's
length basis.
Transactions between Mondi plc and its subsidiaries, which are related parties, and transactions between its subsidiaries have been
eliminated on consolidation and are not disclosed in this note.
Joint ventures
€ million
2024
2023
Sales to related parties
10
7
Purchases from related parties
587
663
Trade and other receivables from related parties
2
1
Trade and other payables due to related parties
72
86
Loans receivable from related parties
11
11
Compensation for the Board and key management
In accordance with IAS 24, ‘Related Party Disclosures’, key management personnel are those persons having authority and responsibility
for planning, directing and controlling the activities of the Group, directly or indirectly, and includes directors (both executive and
non-executive) of Mondi plc. The Board and those members of the Group Executive Committee who are not directors comprise
the key management personnel of the Group. The remuneration of the directors is disclosed in the Remuneration report.
€ million
2024
2023
Salaries and short-term employee benefits
6.8
6.1
Non-executive director fees
1.5
1.4
Defined contribution plan payments
0.5
0.5
Social security costs
1.1
1.1
Share-based payments
3.5
3.6
Total
13.4
12.7
Details of the transactions between the Group and its pension and post-retirement medical plans are disclosed in note 25.
33 Group companies
Composition of the Group
The subsidiaries of the Group as at 31 December 2024 are set out in note 11 of the Mondi plc parent company financial statements.
All of these interests are consolidated within the Group’s financial statements.
Refer to Mondi’s global footprint on page 5 of the overview to the Integrated report for more information on the places of operation.
A list of subsidiaries taking advantage of an exemption from audit under Section 479A of the Companies Act 2006 is disclosed in note 9
of the Mondi plc parent company financial statements.
Details of non-wholly owned subsidiaries
Proportion of ownership interests
and voting rights held by
non-controlling interests (%)
Profit attributable to
non-controlling interests
Equity attributable to
non-controlling interests
€ million, unless otherwise stated
2024
2023
2024
2023
2024
2023
Mondi SCP, a.s. and its subsidiaries
49
49
39
3
366
328
Individually immaterial subsidiaries with
non-controlling interests
5
16
127
113
Total
44
19
493
441
Mondi Group
Integrated report and financial statements 2024
193
33 Group companies continued
Summarised financial information on the Group’s material non-wholly owned subsidiaries is as follows:
Mondi SCP, a.s. and its subsidiaries
The summarised financial information represents amounts before elimination of intra-group transactions conducted in the ordinary course
of business. The results of the subsidiary on the stand-alone basis may differ from those included in the Group. The subsidiary's
registered office as disclosed in note 11 of the Mondi plc parent company financial statements is also its principal place of business.
Statement of financial position
€ million
2024
2023
Non-current assets
643
676
Current assets
355
230
Current liabilities
(153)
(150)
Non-current liabilities
(88)
(79)
Net assets
757
677
Equity attributable to non-controlling interests
366
328
Income statement and statement of comprehensive income
€ million
2024
2023
Revenue
753
735
Operating costs (including taxation)
(673)
(733)
Profit for the year
80
2
Attributable to non-controlling interests
39
3
Total comprehensive income for the year
80
2
Attributable to non-controlling interests
39
3
Statement of cash flows
€ million
2024
2023
Net cash inflow from operating activities
134
29
Net cash outflow from investing activities
(22)
(34)
Net cash outflow from financing activities
(11)
(31)
Net cash inflow/(outflow)
101
(36)
In prior year, Mondi AG acquired 100% of the shares in Mondi Neusiedler GmbH and Ybbstaler Zellstoff GmbH for a purchase price
of €10 each from Mondi SCP, a.s. and Obaly SOLO, s.r.o. respectively on 27 February 2023, thereby increasing the Group's effective
ownership from 51% to 100% with no changes in the Group's ownership of Mondi SCP, a.s. and Obaly SOLO, s.r.o.
34 Events occurring after 31 December 2024
Aside from the final ordinary dividend proposed for 2024 (see note 10), there have been no material reportable events since
31 December 2024.
Mondi Group
Integrated report and financial statements 2024
194
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
35 Accounting policies
Basis of consolidation
The consolidated financial statements incorporate the revenues, expenses, assets, liabilities, equity and cash flows of Mondi plc and its
subsidiaries (the Group), and the Group’s share of associates and joint ventures drawn up to 31 December each year. All intra-group
balances and transactions are eliminated.
A subsidiary is an entity over which the Group has control. Control is evident where the Group is exposed to, or has rights to, variable
returns from its involvement with that entity and has the ability to affect those returns through its power over that entity.
The results of subsidiaries acquired or disposed of during the years presented are included in the consolidated income statement
from the effective date of acquiring control or up to the effective date of disposal.
Non-controlling interests are measured, at initial recognition, as the non-controlling proportion of the fair values of the assets and
liabilities recognised at acquisition.
After initial recognition, non-controlling interests are measured as the aggregate of the value at initial recognition and their subsequent
proportionate share of profits and losses less any distributions made.
Changes in the Group’s interests in subsidiaries that do not result in a change in control are accounted for as equity transactions.
Any resulting difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration
payable or receivable is recognised directly in equity and attributed to the shareholders.
Foreign currency transactions and translation
Foreign currency transactions
Foreign currency transactions are translated into the functional currency of the entity that has undertaken the transaction, using the
exchange rates ruling on the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in
foreign currencies are translated at the rates prevailing on the reporting date. Gains and losses arising on translation are included in the
consolidated income statement and are classified as either operating or financing consistent with the nature of the monetary item giving
rise to them.
Translation of non-euro operations
The Group’s results are presented in euro, the currency in which most of its business is conducted. On consolidation, the assets and
liabilities of the Group’s non-euro operations are translated into the presentation currency of the Group at exchange rates prevailing on
the reporting date. Income and expense items, except those which arise in countries with hyperinflationary economies (see note 7), are
translated at the average exchange rates for the month in which they occur, where these approximate the rates on the dates of the
underlying transactions. Exchange differences, if any, are recognised directly in other comprehensive income, and accumulated in the
Group’s currency translation adjustment reserve in equity. Such translation differences are reclassified to profit or loss only on disposal
or partial disposal of the non-euro operation.
Hyperinflation accounting (note 7)
The Group has applied IAS 29, 'Financial Reporting in Hyperinflationary Economies', to its subsidiaries in Türkiye and Lebanon, 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 non-euro 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 or expense, and
accumulated in the Group’s cumulative translation adjustment reserve in equity. Such translation differences are reclassified to profit
or loss only on disposal or partial disposal of the non-euro operation.
Prior to translating the financial statements of the Turkish and Lebanese 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 (Turkish operations: TÜFE, 2003=100; Lebanese operations: CPI 2013=100) published by the Turkish Statistical Institute (TURKSTAT)
and Central Administration of Statistics of the Lebanese Republic, respectively. Gains or losses resulting from the restatement of
non-monetary assets and liabilities are recorded in the consolidated income statement as a net monetary gain or loss arising from
hyperinflationary economies. Comparative amounts presented in euro are not restated for subsequent changes in the price level
or exchange rates. The results of the Turkish and Lebanese operations are restated to the index level at the end of the period, with
hyperinflationary gains and losses being reported in net monetary gain or loss arising from hyperinflationary economies.
Fair value measurement
Assets and liabilities that are measured at fair value, or where the fair value of financial instruments has been disclosed in notes
to the 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)
– Level 3 – inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
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35 Accounting policies continued
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 15,
and certain assets acquired and liabilities assumed in a business combination (see note 26).
The fair values of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) require a
degree of estimation and judgement and 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 following:
– 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.
– The fair values of the Group’s commodity price derivatives are calculated as the present value of expected future cash flows based
on observable market data.
– Other techniques, including discounted cash flow analysis, are used to determine the fair values of other financial instruments.
Segmental reporting (note 2)
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 distinct segments. The number of reportable segments is the same as the number
of identified operating segments.
Measurement of operating segment revenues, profit or loss, assets and non-current non-financial assets
Each of the operating segments derives its income from the sale of manufactured products.
The operating segment measures adhere to the recognition and measurement criteria presented in the Group’s accounting policies
and are presented on an underlying basis, excluding special items. The Group has presented certain non-IFRS measures (Alternative
Performance Measures), as defined on pages 216-218, by segment to supplement the user’s understanding. All intra-group transactions
are conducted on an arm’s length basis.
Revenue from contracts with customers (note 2)
Sale of goods
Revenue is recognised from the sale of goods and is measured at the amount of the transaction price received or receivable in exchange
for transferring goods. The transaction price is the expected consideration to be received, to the extent that it is highly probable that
there will not be a significant reversal of revenue in future, after deducting discounts, volume rebates, value added tax and other sales
taxes. When the period of time between delivery of goods and subsequent payment by the customer is less than one year, no
adjustment for a financing component is made.
Control of goods is passed when title and insurance risk have passed to the customer, which is typically when the goods have been
delivered to a contractually agreed location.
The incremental costs of obtaining a contract are recognised as an expense when the period of amortisation over which the costs would
have been recognised is one year or less. Otherwise, these costs are capitalised and amortised on a basis consistent with the transfer
of goods to the customer to which the asset relates.
Transport revenue
Transport revenue is recognised as a distinct performance obligation when the Group provides transport services after the point in time
after control of goods has passed to the customer. In these cases, the transport revenue is recognised over time.
Other income
Sale of green energy credits and emission allowances (note 17)
In certain countries the Group is subject to the European Union Trading Scheme and receives emission allowances (CO2 certificates).
Allowances are received annually and the Group is required to surrender rights equal to its actual emissions. The CO2 certificates
received from a government are recorded at a nominal amount that is usually nil. A liability is recognised when the actual emissions
exceed the emission rights granted and still held. Where excess CO2 certificates are sold to the third parties, the income is recognised
within other net operating expenses in the consolidated income statement when ownership rights pass to the buyer.
Green energy credits (GECs) are earned through investments in green projects. GECs are accounted for as government grants and are
measured at their fair value at initial recognition. GECs are recorded in inventory and are subject to an assessment of net realisable value
at the end of each reporting period. When GECs are sold above or below their carrying value the gain or loss is recorded within other
net operating expenses in the consolidated income statement when ownership rights pass to the buyer.
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Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
Insurance reimbursements (note 11)
Compensation for insurance reimbursements, including compensation for business interruptions and for the loss or impairment of property, plant
and equipment, is recognised within other net operating expenses in the consolidated income statement when receipt is virtually certain.
Gain on purchase of a business (note 26)
Any gain on purchase of a business is recognised within other net operating expenses in the consolidated income statement.
Fair value gains/(losses) from forestry assets (note 15)
Changes in the fair value of forestry assets are recognised within other net operating expenses in the consolidated income statement.
Investment income (note 6)
Interest income, which is derived from cash and cash equivalents and other interest-bearing financial assets, is accrued on a time
proportion basis, by reference to the principal outstanding and at the applicable effective interest rate.
Taxation (note 8)
The tax expense represents the sum of the current tax charge and the deferred tax charge.
Current tax
The current tax charge is based on taxable profit for the year. The Group’s asset/liability for current tax is calculated using tax rates that
have been enacted or substantively enacted by the reporting date. The Group is regularly subject to routine tax audits. Provision is made
based on the tax laws in the relevant country and the expected outcomes of any negotiations or settlements. Current tax is presented
as a special item if the corresponding taxable income/expense is accounted for as a special item.
The Group is subject to corporate taxes in a number of jurisdictions and a degree of estimation and judgement is required in determining
the appropriate tax provision for transactions where the tax treatment is uncertain. In these circumstances, the Group recognises
provisions for taxes based on information available where the anticipated liability is both probable and estimable.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on temporary differences between the carrying amount of assets and
liabilities in the Group’s consolidated financial statements and the corresponding tax bases used in the computation of taxable profits
and is accounted for using the balance sheet liability method. Deferred tax is presented as a special item if the corresponding temporary
difference arises from a special item.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent
that it is probable that future taxable profits will be available against which deductible temporary differences can be utilised. Such assets
and liabilities are not recognised if the temporary differences arise from the initial recognition of goodwill or from the initial recognition,
other than in a business combination, of other assets and liabilities in a transaction that affects neither the tax profit nor accounting profit
and does not give rise to equal taxable and deductible temporary differences.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, except
where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date. In considering their recoverability, the Group assesses
the likelihood of the assets being recoverable within a reasonably foreseeable timeframe. The carrying amount is reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Similarly, it is
increased to the extent that it becomes probable that sufficient taxable profit will be available in the future for all or part of the deferred
tax asset to be recovered.
Deferred tax is calculated at the tax rates that have been enacted or substantively enacted and which are expected to apply in the year
when the liability is settled or the asset is realised. Deferred tax is charged or credited to the consolidated income statement, except to
the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same tax authority and the Group intends
to settle its current tax assets and liabilities on a net basis.
The Group applies the initial recognition exemption model to account for any investment tax credits. Deferred tax is not recognised
for temporary differences relating to investment tax credits due to the availability of the initial recognition exemption.
Legislation in respect of the UK’s adoption of OECD Pillar Two Multinational Top-up Tax was substantively enacted in 2023 and applies
to the Group from 1 January 2024. Other countries in which the Group operates have brought in, or may bring in, their own domestic
Pillar Two rules. The Group continues to monitor the potential impact of these rules. Currently the impact is expected to be immaterial
on the Group’s tax charge.
The Group applies the temporary exception to recognising and disclosing information about deferred tax assets and liabilities related to
Pillar Two income taxes, as provided in the amendments to IAS 12, 'Income Taxes' – International Tax Reform – Pillar Two Model Rules
issued in May 2023.
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35 Accounting policies continued
Earnings per share (EPS) (note 9)
Basic EPS
The basic EPS is calculated by dividing net profit attributable to ordinary shareholders by the weighted average number of Mondi plc
shares in issue during the year, net of own shares.
Diluted EPS
For diluted EPS, the weighted average number of Mondi plc ordinary shares in issue, net of own shares, is adjusted to assume conversion
of all dilutive potential ordinary shares. At present these only include share awards granted to employees. Potential or contingent share
issues are treated as dilutive when their conversion to shares would decrease EPS.
The weighted average number of ordinary shares in issue is the weighted number of shares in issue throughout the year and excludes
own shares held by employee benefit trusts. A share consolidation combined with a special dividend reduces the weighted average
number of ordinary shares in issue in the period when the transaction occurs from the date the special dividend is recognised.
EPS, if relevant, is presented separately for continuing operations and in total from continuing and discontinued operations on the face
of the consolidated income statement.
Non-current non-financial assets excluding goodwill, deferred tax and net retirement benefit assets
Property, plant and equipment (note 11)
Property, plant and equipment principally comprise land and buildings, plant and equipment, assets under construction and other.
Property, plant and equipment is stated at cost less accumulated depreciation and impairment. Land and assets under construction are
carried at cost less impairment. Cost includes site preparation, the purchase price of the equipment and directly attributable labour and
installation costs. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency
purchases of property, plant and equipment. Borrowing costs are capitalised on qualifying assets. The capitalisation of costs ceases when
the asset is in the location and condition necessary for it to be capable of operating in the manner intended by management. Start-up
and ongoing maintenance costs are recognised immediately as an expense.
Depreciation is charged to the consolidated income statement so as to write off the cost of assets, other than freehold land and assets
under construction, over their estimated useful lives on a straight-line basis to their estimated residual values of nil or scrap value.
Depreciation commences when the assets are ready for their intended use.
Residual values and useful lives are reviewed and adjusted, if appropriate, at least annually. An adjustment is made to the estimated useful
lives of assets where climate change is anticipated to have a material impact. Estimated useful lives range from 3 years to 25 years for
items of plant and equipment and other categories and up to a maximum of 40 years for buildings.
Insurance reimbursements for the loss or impairment of property, plant and equipment are recognised within other net operating
expenses in the consolidated income statement when receipt is virtually certain.
Leases (note 12)
To the extent that a right of control exists over an identified asset subject to a lease, a right-of-use asset, representing the Group’s right
to use the underlying leased asset, is recognised within property, plant and equipment in the consolidated statement of financial position.
A corresponding lease liability, representing the Group’s obligation to make lease payments, is recognised, depending on the maturity
of the underlying lease payments, within short-term borrowings or medium- and long-term borrowings in the consolidated statement of
financial position at the commencement of the lease.
The right-of-use asset is measured initially at cost and includes the amount of initial measurement of the lease liability, any initial direct
costs incurred, including advance lease payments, and an estimate of the dismantling, removal and restoration costs required in terms
of the lease. Depreciation is charged to the consolidated income statement so as to depreciate the right-of-use asset from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The lease term
shall include the period of an extension option where it is reasonably certain that the option will be exercised. Where the lease contains
a purchase option, the asset is written off over the useful life of the asset when it is reasonably certain that the purchase option will
be exercised.
The lease liability is measured at the present value of the future lease payments, including variable lease payments that depend on an index and
the exercise price of purchase options where it is reasonably certain that the option will be exercised, discounted using the interest rate implicit in
the lease, if readily determinable. If the implicit interest rate cannot be readily determined, the lessee’s incremental borrowing rate is used. Finance
charges are recognised within finance costs in the consolidated income statement over the period of the lease.
Lease expenses for leases with a duration of one year or less and low-value assets are not recognised in the consolidated statement of
financial position, and are charged to the consolidated income statement when incurred. Low-value assets are determined based on
quantitative criteria.
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Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
Intangible assets and R&D expenditure (note 14)
Intangible assets are measured initially at purchase consideration and are amortised on a straight-line basis over their estimated useful
lives. Estimated useful lives vary between 3 years and 10 years and are reviewed at least annually.
Research expenditure is expensed in the year in which it is incurred. Development costs are capitalised when the completion of the asset
is both commercially and technically feasible and are amortised on a systematic basis over the economic life of the related development.
Development costs are recognised immediately as an expense if they do not qualify for capitalisation.
Impairment of property, plant and equipment and intangible assets
At each reporting date, the Group reviews the carrying amounts of its property, plant and equipment and intangible assets to determine
whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is
estimated. If the recoverable amount of an asset, or cash-generating unit (CGU) to which the asset relates, is less than its carrying
amount, the carrying amount of the asset, or CGU, is reduced to its recoverable amount and an impairment recognised as an expense.
The recoverable amount of the asset, or CGU, is the higher of its fair value less costs to dispose and its value in use. In assessing value
in use, the estimated future cash flows generated by the asset are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash
flows have not been adjusted. Where the asset does not generate cash flows that are independent from other assets, the Group
estimates the recoverable amount of the smallest CGU to which the asset belongs.
Where the underlying circumstances change such that a previously recognised impairment subsequently reverses, the carrying amount
of the asset, or CGU, is increased to the revised estimate of its recoverable amount. Such a reversal is limited to the carrying amount
that would have been determined (taking into account depreciation or amortisation in the intervening period) had no impairment been
recognised for the asset, or CGU, in prior years. A reversal of an impairment is recognised in the consolidated income statement.
Agriculture – owned forestry assets (note 15)
Owned forestry assets are biological assets measured at fair value less costs to sell, calculated by applying the expected selling price,
less costs to harvest and deliver, to the estimated volume of timber on hand at each reporting date. The fair value less costs to sell is
determined using a market-based approach. The estimated volume of timber on hand is determined based on the maturity profile of
the area under afforestation, the species, the geographic location, the climate and other environmental considerations and excludes
future growth. The product of these is then adjusted for risks associated with forestry assets.
Changes in fair value are recognised in the consolidated income statement within other net operating expenses. At point of harvest,
the carrying value of forestry assets is transferred to inventory and recorded as a felling cost reduction to the fair value of forestry assets.
Directly attributable costs incurred during the year of biological growth and investments in standing timber are capitalised and presented
within cash flows from investing activities.
Investments in joint ventures (note 16)
A joint venture is an entity in which the Group holds a long-term interest with contractually agreed sharing of control over the strategic,
financial and operating decisions with one or more other venturers. Typically, the Group owns between 20% and 50% of the voting equity
of its joint ventures. Investments in joint ventures are accounted for using the equity method, after initially being recognised at cost in the
consolidated statement of financial position.
The Group’s share of the profit or loss of joint ventures is recognised in net profit/(loss) from joint ventures. Any impairment is presented
adjacent to the share of the joint venture’s results in impairment of investments in joint ventures in the consolidated income statement.
Non-current assets held for sale and discontinued operations (note 28)
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. For this to be the case, the asset (or disposal group) must be available for immediate sale
in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups), and its sale must
be highly probable. 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. The deferred tax assets, assets arising from employee
benefits and financial assets are specifically exempt from this requirement.
Any resulting impairment is reported through the consolidated income statement. From the time of classification as held for sale, the
assets are no longer depreciated or amortised. Interest and other expenses attributable to the liabilities of a disposal group classified
as held for sale continue to be recognised. Comparative amounts in the 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 which satisfy the held for sale criteria. The discontinued operations' net profit or loss,
other comprehensive income or expense and cash flows for current and comparative periods are presented separately in the
consolidated income statement, the consolidated statement of comprehensive income and the consolidated statement of cash flows,
including related notes to these statements. Non-current assets classified as held for sale and the assets of a disposal group classified as
held for sale are presented separately from the other assets in the consolidated statement of financial position. The liabilities of a disposal
group classified as held for sale are presented separately from other liabilities in the consolidated statement of financial position.
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35 Accounting policies continued
Business combinations (note 26)
Identifiable net assets
The identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions,
measured initially at their fair values on the acquisition date. If the initial accounting for assets and liabilities is incomplete by the end of
the reporting period in which the combination occurs, the Group reports provisional fair values. The measurement period ends no later
than 12 months from the acquisition date.
Cost of a business combination
The cost of a business combination includes the fair value of assets provided, liabilities incurred or assumed and any equity instruments
issued by a Group entity, in exchange for control of an acquiree. The directly attributable costs associated with a business combination
are expensed as incurred and recognised within other net operating expenses into the consolidated income statement.
Goodwill (note 13)
Any excess of the consideration of the acquisition over the fair values of the identifiable net assets acquired is attributed to goodwill.
Goodwill is subsequently measured at cost less any impairment. Any gain on purchase is recognised within other net operating expenses
in the consolidated income statement (see note 26).
Impairment of goodwill
Goodwill acquired through business combinations is allocated to the group of CGUs that is expected to benefit from the synergies of the
combination and represents the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount
of the group of CGUs to which goodwill has been allocated is tested for impairment annually in the fourth quarter of each financial year
and when events or changes in circumstances indicate that it may be impaired.
The recoverable amount of a group of CGUs is determined based on the higher of value in use or its fair value less costs of disposal.
Value-in-use calculations use cash flow projections based on financial budgets covering a three-year period that are based on the latest
forecasts for revenue and costs as approved by the Board. Projected revenues and costs are determined taking into consideration
relevant industry forecasts for individual product lines, climate change, internal management projections, historical performance and
announced industry capacity changes.
Cash flow projections beyond three years are based on internal management projections. Growth rates in the countries in which the
Group operates are determined with reference to published gross domestic product information, and for specific product lines are
determined with reference to published industry studies.
The discount rate is derived from the Group’s weighted average cost of capital using published market data and published borrowing
rates and adjusted for country risk and tax.
Any impairment is recognised in the consolidated income statement. Impairments of goodwill are not subsequently reversed.
Current non-financial assets
Inventories (note 17)
Inventories are valued at the lower of cost and net realisable value. The cost of inventories is determined primarily on weighted average
cost basis. Costs comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in
bringing the inventories to their present location and condition. Net realisable value is defined as the selling price less any estimated costs
to sell.
Equity instruments
Own shares (note 23)
The purchase by any Group entity of Mondi plc’s equity instruments results in the recognition of own shares. The consideration paid or
payable is deducted from equity. Where own shares are subsequently sold, reissued or otherwise disposed of, any consideration received
or receivable is included in equity attributable to the shareholders of Mondi plc, net of any directly attributable incremental transaction
costs and the related tax effects.
Dividend payments (note 10)
The dividend distributions to Mondi plc’s ordinary shareholders are recognised as a liability when the dividends are declared and
approved. Final dividends are accrued when approved by Mondi plc’s ordinary shareholders at its Annual General Meeting and interim
dividends are recognised when paid.
Share-based payments (note 24)
The Group operates a number of equity-settled, share-based compensation schemes. The fair value of the employee services received
in exchange for the grant of share awards is recognised concurrently as an expense and an adjustment to equity. The total amount to
be expensed over the vesting period is determined by reference to the fair value of the share awards granted, as adjusted for market
performance conditions and non-market vesting conditions. Vesting conditions are included in assumptions about the number of awards
that are expected to vest. At each reporting date, the Group revises its estimates of the number of share awards that are expected
to vest as a result of changes in non-market vesting conditions. It recognises the impact of the revision to original estimates, if any,
in the consolidated income statement, with a corresponding adjustment to equity.
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Integrated report and financial statements 2024
200
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
Financial instruments (note 31)
Financial assets and financial liabilities are recognised in the Group’s consolidated statement of financial position when the Group
becomes party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss)
are added to or deducted from the fair value of the financial assets or financial liabilities on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately
in the consolidated income statement.
Cash and cash equivalents (note 27b)
Cash and cash equivalents comprise cash on hand, money market funds, demand deposits and short-term, highly liquid investments of a
maturity of three months or less from the date of acquisition that are readily convertible to a known amount of cash and that are subject
to an insignificant risk of changes in value. The money market funds are held at fair value through profit and loss, with the remaining
balance of cash and cash equivalents carried at amortised cost. Bank overdrafts are shown within short-term borrowings in current
liabilities in the consolidated statement of financial position. Cash and cash equivalents presented in the consolidated statement of cash
flows are net of overdrafts.
Trade receivables (note 18)
Trade receivables are initially recognised at fair value and are subsequently measured at amortised cost using the effective interest rate
method, less an allowance for impairment.
Impairment of trade receivables (note 18)
A simplified lifetime expected credit loss (ECL) model is used to assess trade receivables for impairment. ECL is the present value of
all cash shortfalls over the expected life of a trade receivable. Expected credit losses are based on historical loss experience on trade
receivables, adjusted to reflect information about current economic conditions and reasonable and supportable forecasts of future
economic conditions. At the date of initial recognition, the credit losses expected to arise over the lifetime of a trade receivable are
recognised as an impairment.
Trade payables (note 19)
Trade payables are initially recognised at fair value and are subsequently carried at amortised cost using the effective interest rate
method.
Borrowings (note 22)
Interest-bearing loans and overdrafts are initially recognised at fair value, net of direct transaction costs. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds, net of transaction costs, and the redemption value is recognised
in the consolidated income statement over the term of the borrowings using the effective interest rate method.
Borrowing costs (note 6)
Interest on borrowings directly relating to the acquisition, construction or production of qualifying assets is capitalised until such time as
the assets are substantially ready for their intended use. Where funds have been borrowed specifically to finance a project, the amount
capitalised represents the actual borrowing costs incurred. Where the funds used to finance a project form part of general borrowings,
the amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the Group during
the construction period.
All other borrowing costs are recognised in the consolidated income statement in the period in which they are incurred.
Derivative financial instruments and hedge accounting (note 31d)
The Group enters into forward and swap contracts in order to hedge its exposure to foreign exchange, interest rate and commodity
price risks.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and subsequently measured at fair value
in the consolidated statement of financial position within financial instruments, and are classified as current or non-current depending
on the maturity of the derivative.
Changes in the fair value of derivative financial instruments that are not formally designated in hedge relationships are recognised
immediately in the consolidated income statement and are classified within operating profit or net finance costs, depending on the
type of risk to which the derivative relates.
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35 Accounting policies continued
Cash flow hedges
The effective portion of changes in the fair value of derivative financial instruments that are designated as hedges of future cash flows is
recognised directly in other comprehensive income and accumulated in equity. The gain or loss relating to the ineffective portion is
recognised immediately in the consolidated income statement. If the cash flow hedge of a forecast transaction results in the recognition
of a non-financial asset, then, at the time the asset is recognised, the associated gains or losses on the derivative that had previously
been recognised in the Group’s cash flow hedge reserve in equity are included in the initial measurement of the asset. For hedges
that do not result in the recognition of a non-financial asset, amounts deferred in the Group’s cash flow hedge reserve in equity are
recognised in the consolidated income statement in the same period in which the hedged item affects profit or loss on a proportionate
basis.
Hedge accounting is discontinued when the hedge relationship is revoked or the hedging instrument expires, is sold, terminated or
exercised or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss deferred in equity remains in equity
until, for a hedge of a transaction resulting in the recognition of a non-financial asset, it is included in the initial measurement of the
non-financial asset or, for other cash flow hedges, it is classified to the consolidated income statement in the same period or periods
as the forecast transaction is ultimately recognised. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss
deferred in equity is included immediately in the consolidated income statement.
Retirement benefits (note 25)
The Group operates post-retirement defined contribution plans, post-retirement defined benefit pension plans and post-retirement
medical plans for many of its employees.
Defined contribution plans
For defined contribution plans, the amount charged to the consolidated income statement is the contributions paid or payable during
the financial year.
Defined benefit pension plans and post-retirement medical plans
For defined benefit pension and post-retirement medical plans, actuarial valuations are performed at each financial year end using the
projected unit credit method. The average discount rate for the plans’ liabilities is based on investment-grade-rated corporate bonds or
similar government bonds of a suitable duration and currency. Plans’ assets are measured using market values at the end of the financial year.
The net retirement benefits liability recognised in the consolidated statement of financial position represents the present value of the
defined benefit liability as deducted by the fair value of any plan assets.
Any increase in the present value of plan liabilities expected to arise from employee service during the year is charged to personnel costs
as service costs. Past service costs resulting from plan amendments or curtailments and gains or losses on settlements are charged to
personnel costs. A net interest expense or net interest income is calculated by applying the discount rate, on a per plan basis, to the net
defined benefit liability or asset and recognised in the consolidated income statement within finance costs.
Remeasurements comprising actuarial gains and losses and the return on plan assets (after recognising the net finance charge)
are charged or credited to equity in other comprehensive income, net of deferred tax, in the financial year in which they occur.
Remeasurements recorded in other comprehensive income are not recycled to the consolidated income statement, but those
amounts recognised in other comprehensive income may be transferred within equity.
Provisions (note 20)
Provisions are recognised when the Group has a present obligation as a result of a past event, arising from a past event, and it is
probable that the obligation will need to be settled. Provisions are measured at management’s best estimate of the expenditure
required to settle the obligation at the reporting date. When the effect of discounting is material, provisions are discounted to present
value using country-specific discount rates for periods matching the duration of the underlying liability.
New accounting policies, early adoption and future requirements
Amendments to published standards effective during 2024
The following new amendments to standards have been adopted for the financial year beginning on 1 January 2024, and have had no
material impact on the Group’s results:
– Amendments to IAS 1 – Presentation of Financial Statements – Non-current Liabilities with Covenants
– Amendments to IAS 1 – Presentation of Financial Statements – Classification of Liabilities as Current or Non-current
– Amendments to IFRS 16 – Leases – Lease Liability in a Sale and Leaseback
– Amendments to IAS 7 and IFRS 7 – Statement of Cash Flows and Financial Instruments: Disclosures – Supplier Finance Arrangements
Amendments to published standards effective for the financial year beginning on 1 January 2025
The following amendment was adopted and will be effective for the financial year beginning on 1 January 2025. The amendment is not
expected to have a material impact on the Group’s results:
– Amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability
The Group is in the process of assessing the impact of IFRS 18, 'Presentation and Disclosure in Financial Statements', issued in April 2024,
which will become effective and be adopted for the financial year beginning on 1 January 2027.
Mondi Group
Integrated report and financial statements 2024
202
Notes to the consolidated financial statements
for the year ended 31 December 2024 continued
€ million
Notes
2024
2023
Fixed assets
Tangible assets
5
3
3
Shares in Group undertakings
6
3,604
3,604
Current assets
Debtors: due within one year
7
1,214
1,138
Current liabilities
Creditors: amounts falling due within one year
(13)
(10)
Provisions for liabilities
(1)
—
Net current assets
1,200
1,128
Total assets less current liabilities
4,807
4,735
Creditors: amounts falling due after more than one year
(3)
(3)
Provisions for liabilities
(1)
(2)
Net assets
4,803
4,730
Capital and reserves
Called-up share capital
8
97
97
Profit and loss account
4,024
3,951
Merger reserve
8
637
637
Capital redemption reserve
8
29
29
Share-based payments reserve
8
16
16
Total shareholders’ funds
4,803
4,730
Mondi plc reported a profit of €1,157 million (2023: €876 million) for the year ended 31 December 2024.
The financial statements of Mondi plc on pages 203-212 were authorised for issue by the Board on 19 February 2025 and were signed on
its behalf by:
Andrew King
Mike Powell
Director
Director
Mondi plc company registered number: 6209386
Mondi Group
Integrated report and financial statements 2024
203
Mondi plc parent company balance sheet
as at 31 December 2024
€ million
Called-up
share capital
Profit and loss
account
Merger
reserve
Capital
redemption
reserve
Share-based
payments reserve
Total
equity
At 1 January 2023
97
3,421
637
29
14
4,198
Total comprehensive income for the year
—
876
—
—
—
876
Dividends
—
(345)
—
—
—
(345)
Mondi share schemes’ charge
—
—
—
—
9
9
Issue of shares under employee share
schemes
—
7
—
—
(7)
—
Purchases of own shares
—
(8)
—
—
—
(8)
At 31 December 2023
97
3,951
637
29
16
4,730
Total comprehensive income for the year
—
1,157
—
—
—
1,157
Dividends (see note 10 of the Group's
consolidated financial statements)
—
(1,081)
—
—
—
(1,081)
Mondi share schemes’ charge (see note 3)
—
—
—
—
9
9
Issue of shares under employee share
schemes
—
9
—
—
(9)
—
Purchases of own shares
—
(12)
—
—
—
(12)
At 31 December 2024
97
4,024
637
29
16
4,803
Mondi Group
Integrated report and financial statements 2024
204
Mondi plc parent company statement of changes in equity
for the year ended 31 December 2024
1 Accounting policies
Basis of preparation
Mondi plc meets the definition of a qualifying entity under Financial Reporting Standard 100 (FRS 100) issued by the Financial Reporting
Council. Accordingly, the financial statements have been prepared in accordance with Financial Reporting Standard 101, ‘Reduced
Disclosure Framework’ (FRS 101), as issued by the Financial Reporting Council and the Companies Act 2006.
As permitted by FRS 101, Mondi plc has taken advantage of the disclosure exemptions available under that standard in relation to
share-based payments, financial instruments, capital management, presentation of comparative information in respect of certain items,
presentation of a cash flow statement, standards not yet effective, impairment of assets and related party transactions.
Where required, equivalent disclosures are given in the consolidated Group financial statements of Mondi plc, which are publicly available.
The results, assets and liabilities of Mondi plc are included in the publicly available consolidated Group financial statements.
Mondi plc has made use of the exemption from presenting a profit and loss account, in accordance with Section 408 of the Companies
Act 2006.
The financial statements have been prepared on a going concern basis. The assessment of going concern is disclosed in the Strategic
report as part of the viability statement under the heading Going concern on page 71, which is incorporated by reference into these
financial statements.
The financial statements are prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration
given in exchange for the assets. The principal accounting policies adopted are described below. They have all been applied consistently
throughout the year and the preceding year.
Material accounting policies
The material accounting policies applied by Mondi plc are the same as those presented in notes 1 and 35 to the Group’s consolidated
financial statements, to the extent that the Group’s transactions and balances are applicable to the company financial statements.
Principally, the accounting policies which are not directly relevant to the Mondi plc parent company financial statements are those relating
to consolidation accounting, the recognition and subsequent measurement of goodwill and accounting in hyperinflationary economies.
The accounting policy, which is additional to those applied by the Group, is stated as follows:
Shares in Group undertakings
Shares in Group undertakings are stated at cost, less, where appropriate, provisions for impairment.
Impairment reviews are performed when there is an indicator that the carrying value of the shares in Group undertakings could exceed
their recoverable amounts based on their value in use or fair value less costs to dispose. Value in use is calculated by discounting future
expected cash flows. These calculations use cash flow projections based on Board-approved budgets and forecasts which reflect
management’s current experience and future expectations of the markets in which the Group undertaking operates.
Costs incremental and directly attributable to the acquisition of investments are capitalised.
Critical accounting judgements and significant accounting estimates
The preparation of the financial statements of Mondi plc 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 those
estimates. No critical accounting judgements or significant accounting estimates were identified.
2 Auditors' remuneration and employee information
Disclosure of the audit fees payable to the auditors for the audit of Mondi plc’s financial statements is set out in note 4 of the Group’s
consolidated financial statements.
Mondi plc had 29 employees during the year (2023: 28).
Mondi Group
Integrated report and financial statements 2024
205
Notes to the Mondi plc parent company financial statements
for the year ended 31 December 2024
3 Share-based payments
The share schemes and the underlying assumptions used to estimate the associated fair value charge are set out in note 24
of the Group’s consolidated financial statements.
4 Taxation
No deferred tax asset is recognised on gross temporary differences of €19 million (2023: €21 million) relating to share-based payment
arrangements. Mondi plc has tax losses of €196 million (2023: €197 million) in respect of which no deferred tax asset has been
recognised due to the low probability of future taxable profit streams or gains against which these could be utilised. Although Mondi plc
receives dividend income from its subsidiaries, this dividend income is generally exempt from corporation tax.
Mondi plc is within the scope of the OECD Pillar 2 model rules as of 1 January 2024. Additional Pillar 2 top-up tax of €3 million has been
included within the current tax charge for the year ended 31 December 2024, mostly arising in a small number of jurisdictions benefitting
from tax incentives on capital investments and tax holidays.
5 Tangible assets
Mondi plc entered into an office building lease agreement for a total term of 10 years from 2 August 2021 and recognised a right-of-use
asset of €3 million (2023: €3 million) accordingly. Corresponding lease liabilities are included in creditors and further split by maturity as
presented in the balance sheet. The lease may only be terminated by Mondi plc after 5 years. Mondi plc does not intend to exercise the
termination option, and thus it was not considered in the calculation of the right-of-use asset.
6 Shares in Group undertakings
€ million
2024
2023
Unlisted
Shares at cost
3,721
3,721
Accumulated impairment
(117)
(117)
Total shares in Group undertakings
3,604
3,604
The shares in Group undertakings are in Mondi Investments Limited (incorporated in the UK), a wholly owned subsidiary which acts as
an investment holding company, and Mondi South Africa (Pty) Limited (incorporated in South Africa), a wholly owned subsidiary which
manages forestry operations and manufactures pulp, uncoated fine paper and containerboard.
7 Debtors: due within one year
Amounts held in a cash pool facility and on demand deposit with a subsidiary of €1,205 million (2023: €1,131 million) are included in
debtors: due within one year. No provision on expected credit losses is recognised at 31 December 2024 (2023: €nil). The carrying
amount of such deposits held at amortised cost approximated their fair value at 31 December 2024 and at 31 December 2023.
8 Capital and reserves
Full disclosure of the called-up share capital of Mondi plc is set out in note 23 of the Group’s consolidated financial statements.
The merger reserve was recognised in respect of the simplification of the dual-listed company structure in 2019.
The capital redemption reserve is a statutory, non-distributable reserve into which amounts are transferred following the redemption
or purchase of own shares out of distributable profits or, in certain circumstances, from the proceeds of a fresh issue of shares.
The share-based payment reserve is used to recognise the grant date fair value of options issued to employees but not exercised
and the grant date fair value of shares awarded to employees but not yet vested.
On 13 February 2024, the Group returned the net proceeds from the sale of the Group’s Russian assets to its shareholders by way
of a special dividend. In addition, in order to maintain the comparability, so far as possible, of Mondi plc’s share price before and after
the special dividend, the special dividend was accompanied by a share consolidation, which took effect on 29 January 2024, resulting
in shareholders receiving 10 new ordinary shares for every 11 existing ordinary shares. Further details are provided in notes 9, 10 and 23
of the Group’s consolidated financial statements.
Mondi Group
Integrated report and financial statements 2024
206
Notes to the Mondi plc parent company financial statements
for the year ended 31 December 2024 continued
9 Financial guarantees
Mondi plc has issued financial guarantees in respect of the UK pension schemes of its subsidiaries, obligations incurred in the ordinary
course of business and the borrowings of other Group undertakings. The likelihood of these financial guarantees being called is
considered to be remote, and therefore the estimated financial effect of issuance is €nil (2023: €nil). The fair value of these issued
financial guarantees is deemed to be immaterial.
€ million
2024
2023
Pension scheme guarantees
72
69
Guarantees of obligations of subsidiaries of Mondi plc
Incurred in the ordinary course of business
7
4
In favour of banks and bondholders
3,095
3,061
Total exposure from financial guarantees
3,174
3,134
Mondi plc has issued unlimited guarantees in respect of obligations of various subsidiaries under a commercial card programme and
in respect of Mondi Finance plc under ISDA Master Agreements. These guarantees are for obligations incurred in the ordinary course
of business and the likelihood of these guarantees being called is considered to be remote, and therefore the estimated financial effect
of issuance is €nil (2023: €nil). The fair value of these guarantees is deemed to be immaterial.
The following subsidiaries have taken advantage of an exemption from audit under Section 479A of the Companies Act 2006.
As the ultimate parent, Mondi plc has provided a statutory guarantee for any outstanding liabilities of those subsidiaries. All subsidiary
undertakings have been included in the consolidation of the Group.
– Mondi Consumer Goods Packaging UK Limited (registered number: 05188170)
– Mondi Packaging UK Holdings Limited (registered number: 03714255)
– Mondi Scunthorpe Limited (registered number: 01446927)
10 Events occurring after 31 December 2024
Aside from the final ordinary dividend proposed for 2024, included in note 10 of the Group’s consolidated financial statements, there have
been no material reportable events since 31 December 2024.
Mondi Group
Integrated report and financial statements 2024
207
11 List of subsidiaries, associated undertakings and other significant holdings
The subsidiaries, associated undertakings and other significant holdings of Mondi plc at 31 December 2024 are set out below.
Except where noted, all shares are held indirectly through a subsidiary or associated undertaking and the shares held are ordinary shares.
Austria
inno4wood GmbH1
Grazer Straße 11, 8600
Bruck an der Mur
Service, Flexible
Packaging
22.79
Mondi AG
Marxergasse 4A, 1030
Vienna
Holding, Corporate
100.00
Mondi Coating
Zeltweg GmbH
Bahnhofstrasse 3,
8740 Zeltweg
Production, Flexible
Packaging
100.00
Mondi Consumer
Packaging GmbH
Marxergasse 4A, 1030
Vienna
Holding, Flexible
Packaging
100.00
Mondi Corrugated
Services GmbH
Marxergasse 4A, 1030
Vienna
Service, Corrugated
Packaging
100.00
Mondi Engineered
Materials GmbH
Marxergasse 4A, 1030
Vienna
Holding, Flexible
Packaging
100.00
Mondi Finance
Europe GmbH
Marxergasse 4A, 1030
Vienna
Service, Corporate
100.00
Mondi FlexPack
Trading GmbH
Marxergasse 4A, 1030
Vienna
Distribution, Flexible
Packaging
100.00
Mondi Frantschach
GmbH
Frantschach 5,
9413 St. Gertraud
Production, Flexible
Packaging
100.00
Mondi Grünburg
GmbH
Steyrtalstrasse 5,
4594 Grünburg
Production, Corrugated
Packaging
100.00
Mondi Holdings
Austria GmbH
Marxergasse 4A, 1030
Vienna
Holding, Corporate
100.00
Mondi Industrial
Bags GmbH
Marxergasse 4A, 1030
Vienna
Holding, Flexible
Packaging
100.00
Mondi Korneuburg
GmbH
Erwin Schrödinger
Strasse 2, 2100
Korneuburg
Production, Flexible
Packaging
100.00
Mondi Neusiedler
GmbH & Co KG
Theresienthalstrasse 50,
3363 Ulmerfeld-
Hausmening
Production, Uncoated
Fine Paper
100.00
Mondi Neusiedler
Verwaltungs GmbH
Theresienthalstrasse 50,
3363 Ulmerfeld-
Hausmening
Service, Uncoated Fine
Paper
100.00
Mondi Oman
Holding GmbH
Marxergasse 4A,
1030 Vienna
Holding, Flexible
Packaging
70.00
Mondi Paper Sack
Zeltweg GmbH
Bahnhofstrasse 3,
8740 Zeltweg
Distribution, Flexible
Packaging
100.00
Mondi Paper Sales
GmbH
Marxergasse 4A, 1030
Vienna
Distribution, Corrugated
Packaging, Flexible
Packaging, Uncoated
Fine Paper
100.00
Mondi Release Liner
Austria GmbH
Waidhofnerstrasse 11,
3331 Hilm
Production, Flexible
Packaging
100.00
Mondi Styria GmbH
Bahnhofstrasse 3,
8740 Zeltweg
Production, Flexible
Packaging
100.00
Mondi Uncoated
Fine & Kraft Paper
GmbH
Marxergasse 4A, 1030
Vienna
Holding, Corrugated
Packaging, Flexible
Packaging, Uncoated
Fine Paper
100.00
Papierholz Austria
GmbH
Frantschach 5,
9413 St. Gertraud
Service, Flexible
Packaging
25.00
Belgium
Mondi Poperinge
N.V.
Nijverheidslaan 11,
8970 Poperinge
Production, Flexible
Packaging
100.00
Bulgaria
Mondi Stambolijski
E.A.D
1 Zavodska Street,
Stambolijski 4210,
Plovdiv Region
Production, Flexible
Packaging
100.00
Company
Registered office
Principal activities
% of
shares
held by
Group
Canada
Mondi Hinton Inc.
760 Switzer Drive, Hinton
AB T7V 1V7
Production, Flexible
Packaging
100.00
Colombia
Mondi Cartagena
SAS
CR 56 KM 9 14 BRR
Mamonal, Cartagena,
Bolivar
Production, Flexible
Packaging
100.00
Côte d'Ivoire
Mondi Abidjan S.A.
Zone Industrielle de
Yopougon 01, Abidjan,
BP 5676
Production, Flexible
Packaging
50.00
Czech Republic
EURO WASTE a.s.
Litoměřická 836, 41108
Štětí
Service, Flexible
Packaging
100.00
Labe Wood s.r.o.2
Litoměřická 272, 41108
Štětí
Production, Flexible
Packaging
24.99
Mondi Bags Štětí
a.s.
Litoměřická 272, 41108
Štětí
Production, Flexible
Packaging
100.00
Mondi Bupak s.r.o.
Papírenská 41, 37052
České Budějovice
Production, Corrugated
Packaging
100.00
Mondi Coating Štětí
a.s.
Litoměřická 272, 41108
Štětí
Production, Flexible
Packaging
100.00
Mondi Štětí a.s.
Litoměřická 272, 41108
Štětí
Production, Flexible
Packaging
100.00
Mondi Štětí White
Paper s.r.o
Litoměřická 272, 41108
Štětí
Production, Flexible
Packaging
100.00
Wood & Paper a.s.2
c.p. 138, 66491 Hlína
Service, Flexible
Packaging
46.50
WBio a.s.2
c.p. 138, 66491 Hlína
Service, Flexible
Packaging
46.50
Inno4wood Central
and Eastern Europe
s.r.o.1, 3
Vídeňská 186/118,
Přízřenice, Brno, 619 00
Service, Flexible
Packaging
22.79
Inno4wood Holding
a.s.1, 3
Vídeňská 186/118,
Přízřenice, Brno, 619 00
Service, Flexible
Packaging
22.79
Egypt
Mondi Cairo for
Packaging Material
S.A.E.
El-motawer El-turky
(Polaris) Plots No. 7, 6th
of October, Giza
Production, Flexible
Packaging
100.00
Suez Bags
Company (S.A.E.)
K30 Maadi, Ein Soukhna
Road, 1002 Cairo
Production, Flexible
Packaging
98.30
Finland
Harvestia Oy
Selluntie 142, 70420
Kuopio
Service, Corrugated
Packaging
100.00
Mondi Finland
Services Oy
Selluntie 142, 70420
Kuopio
Holding, Corrugated
Packaging
100.00
Mondi Powerflute
Oy
P.O. Box 57, Kuopio,
70101, Finland
Production, Corrugated
Packaging
100.00
France
Mondi Gournay Sarl
22 Avenue Pierre 1er de
Serbie, 75016 Paris
Service, Flexible
Packaging
100.00
Mondi Lembacel
SAS
11 rue de Reims,
51490 Bétheniville
Production, Flexible
Packaging
100.00
Mondi Paper Sales
France Sarl
22 Avenue Pierre 1er de
Serbie, 75016 Paris
Distribution, Corrugated
Packaging
100.00
Company
Registered office
Principal activities
% of
shares
held by
Group
Mondi Group
Integrated report and financial statements 2024
208
Notes to the Mondi plc parent company financial statements
for the year ended 31 December 2024 continued
Germany
Mondi Bad
Rappenau GmbH
Wilhelm-Hauff-Strasse
41, 74906 Bad Rappenau
Production, Corrugated
Packaging
100.00
Mondi Consumer
Packaging
International GmbH
Wielandstrasse 2,
33790 Halle
Holding, Flexible
Packaging
100.00
Mondi Eschenbach
GmbH
Am Stadtwald 14,
92676 Eschenbach
Production, Corrugated
Packaging
100.00
Mondi Wellpappe
Deutschland GmbH
Wielandstrasse 2,
33790 Halle
Dormant, Corrugated
Packaging
100.00
Mondi Halle GmbH
Wielandstrasse 2,
33790 Halle
Production, Flexible
Packaging
100.00
Mondi Hammelburg
GmbH
Thüringenstrasse 1-3,
97762 Hammelburg
Production, Flexible
Packaging
100.00
Mondi Holding
Deutschland GmbH
Wielandstrasse 2,
33790 Halle
Holding, Corporate
100.00
Mondi Inncoat
GmbH
Angererstrasse 25,
83064 Raubling
Production, Flexible
Packaging
100.00
Mondi Jülich GmbH
Rathausstrasse 29,
52428 Jülich
Production, Flexible
Packaging
100.00
Mondi Karton
Deutschland GmbH3
Wielandstrasse 2,
33790 Halle
Dormant, Corrugated
Packaging
100.00
Mondi Paper Sales
Deutschland GmbH
Schauenburgerstraße 49,
20095 Hamburg
Flexible Packaging,
Uncoated Fine Paper
100.00
Mondi Sendenhorst
GmbH
Thüringenstrasse 1-3,
97762 Hammelburg
Distribution, Flexible
Packaging
100.00
Mondi Trebsen
GmbH
Erich-Hausmann-Strasse
1, 04687 Trebsen
Production, Flexible
Packaging
100.00
Mondi Wellpappe
Ansbach GmbH
Robert-Bosch-Strasse 3,
91522 Ansbach
Production, Corrugated
Packaging
100.00
wood2M GmbH2
Hauptstrasse 16, 07366
Rosenthal am Rennsteig
Service, Corporate
50.00
Greece
Mondi Thessaloniki
A.E.
Sindos Industrial Zone –
Block 18, 57022
Thessaloniki
Distribution, Flexible
Packaging
100.00
Hungary
Mondi Bags
Hungária Kft.
Tünde u. 2, 4400
Nyíregyháza
Production, Flexible
Packaging
100.00
Mondi Békéscsaba
Kft.
Tevan Andor u. 2, 5600
Békéscsaba
Production, Flexible
Packaging
100.00
Mondi Szada Kft.
Vasút u. 13, 2111 Szada
Production, Flexible
Packaging
100.00
Iraq
Al Inmaa Industrial
Bags Ltd
Takya, Bazian,
Sulaimaniyah
Production, Flexible
Packaging
34.55
Italy
Mondi Duino S.r.l.
S.Giovanni di Duino, 24/
D, 34011, Duino Aurisina
(TS)
Dormant, Corrugated
Packaging
100.00
Mondi Gradisac S.r.l.
Via dell´Industria 11, 34072
Gradisca d´Isonzo, Gorizia
Production, Flexible
Packaging
100.00
Mondi Italia S.r.l.
Via Balilla 32, 24058
Romano di Lombardia,
Bergamo
Production, Flexible
Packaging
100.00
Mondi Padova S.r.l.
Via Mazzini 21, 35010 San
Pietro in Gu, Padua
Production, Flexible
Packaging
100.00
Mondi Paper Sales
Italia S.r.l.
Via A. Locatelli 2,
20124 Milano
Distribution, Corrugated
Packaging, Flexible
Packaging, Uncoated
Fine Paper
100.00
Mondi Silicart S.r.l.
Via Mazzini 21, 35010 San
Pietro in Gu, Padua
Service, Flexible
Packaging
100.00
Mondi Tolentino
S.r.l.
Via Giovanni Falcone 1,
62029 Tolentino,
Macerata
Production, Flexible
Packaging
100.00
NATRO TECH S.r.l.
Via Copernico snc, 24053
Brignano Gera d'Adda
Service, Flexible
Packaging
100.00
Company
Registered office
Principal activities
% of
shares
held by
Group
Japan
Mondi Tokyo KK
7th floor 14-5, Akasaka
2-chrome, Minato-ku,
Tokyo
Service, Flexible
Packaging
100.00
Jordan
Jordan Paper Sacks
Co. Ltd.
Al Salt, Industrial Area,
P.O. Box 119, 19374, Ain
Al Basha
Production, Flexible
Packaging
67.74
Republic of Korea
Krauzen Co., Ltd.
29 floor, 521, Teheran-ro,
Gangnam-gu, Seoul
Dormant, Flexible
Packaging
100.00
Mondi KSP Co., Ltd.
#1903, 511 Yeongdong-
daero, Gangnam-gu,
Seoul
Distribution, Flexible
Packaging
95.00
Lebanon
Mondi Lebanon SAL
7th Floor, Bloc C, Kassis
Building, Antelias
Highway, Antelias
Production, Flexible
Packaging
66.00
Luxembourg
Mondi Packaging
S.à r.l.
1, rue Hildegard von
Bingen, 1282
Service, Corporate
100.00
Mondi S.à r.l.
1, rue Hildegard von
Bingen, 1282
Holding, Corporate
100.00
Mondi Services S.à r.l.
1, rue Hildegard von
Bingen, 1282
Holding, Corporate
100.00
Malaysia
Mondi Kuala Lumpur
Sdn. Bhd.
Lot Nos. PT 5034 &
5036, Jalan Teluk Datuk
28/40, 40000 Shah Alam,
Selangor
Production, Flexible
Packaging
100.00
Mexico
Caja de Ahorro de
Personal de Mondi
Mexico Servicios
A.C.
Av. San Nicolás No. 249,
Colonia Cuauhtémoc,
San Nicolás de los Garza,
Nuevo Léon, 66450
Service, Flexible
Packaging
100.00
Mondi Mexico S. de
R.L. de C.V.
Av. San Nicolás No. 249,
Colonia Cuauhtémoc,
San Nicolás de los Garza,
Nuevo Léon, 66450
Production, Flexible
Packaging
100.00
Morocco
Ensachage Moderne
Sarl
Km 16, Route d´El Jadida,
Casablanca
Dormant, Flexible
Packaging
80.64
Mondi Tanger S.A.
Lot N 28 Zone
D'exploitation de la Zone
Franche, D.Exploitation
de Tanger Automobile
Cite Dite Tac 2, Tanger,
Jouamaa Province
Fahsanjra
Production, Flexible
Packaging
100.00
Pap Sac Maghreb
SA
Km 16, Route d´El Jadida,
Casablanca
Production, Flexible
Packaging
80.64
Company
Registered office
Principal activities
% of
shares
held by
Group
Mondi Group
Integrated report and financial statements 2024
209
11 List of subsidiaries, associated undertakings and other significant holdings continued
Netherlands
Mondi Coating B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Flexible
Packaging
100.00
Mondi Consumer
Bags & Films B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Flexible
Packaging
100.00
Mondi Consumer
Bags & Films
Benelux B.V.
Fort Willemweg 1, 6219
PA Maastricht
Distribution, Flexible
Packaging
100.00
Mondi Corrugated
B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Corrugated
Packaging
100.00
Mondi Corrugated
Poland B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Corrugated
Packaging
100.00
Mondi Heerlen B.V.
Imstenraderweg 15, 6422
PM Heerlen
Production, Flexible
Packaging
100.00
Mondi Industrial
Bags B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Flexible
Packaging
100.00
Mondi International
Holdings B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Corrugated
Packaging
100.00
Mondi Maastricht
N.V.
Fort Willemweg 1, 6219
PA Maastricht
Distribution, Flexible
Packaging
100.00
Mondi MENA B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Flexible
Packaging
70.00
Mondi Packaging
Paper B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Flexible
Packaging
100.00
Mondi Paper Sales
Netherlands B.V.
Bruynvisweg 14, 1531 AZ
Wormer
Distribution, Corrugated
Packaging, Flexible
Packaging, Uncoated
Fine Paper
100.00
Mondi SCP
Holdings B.V.
Fort Willemweg 1, 6219
PA Maastricht
Holding, Uncoated
Fine Paper
100.00
Norway
Mondi Moss AS
Rådmann Sirasvei 1,
1712 Grålum
Distribution, Flexible
Packaging
100.00
Oman
Mondi Oman LLC
Rusayl Industrial Estate,
Road 20, P.O. Box 20,
124, Muscat Governorate,
Rusayl
Production, Flexible
Packaging
49.00
Poland
Agromasa Sp. z o.o.
ul. Bydgoska 1, 86-100
Świecie
Service, Corrugated
Packaging
100.00
Fredonia
Investments Sp.
z o.o.
ul. Bydgoska 1, 86-100
Świecie
Service, Corrugated
Packaging
100.00
Mondi Bags Mielec
Sp. z o.o.
ul. Wojska Polskiego 12,
39-300 Mielec
Production, Flexible
Packaging
100.00
Mondi Bags Świecie
Sp. z o.o.
ul. Bydgoska 12, 86-100
Świecie
Production, Flexible
Packaging
100.00
Mondi BZWP Sp.
z o.o.
ul. Zamenhofa 36, 57-500
Bystrzyca Kłodzka
Production, Corrugated
Packaging
100.00
Mondi Corrugated
Świecie Sp. z o.o.
ul. Tucholska 9, 86-100
Świecie
Production, Corrugated
Packaging
100.00
Mondi Dorohusk Sp.
z o.o.
ul. Swierkowa 8, 22-174
Brzezno
Production, Corrugated
Packaging
100.00
Mondi Krapkowice
Sp. z o.o.
ul. Opolska 103, 47-300,
Krapkowice
Production, Flexible
Packaging
100.00
Mondi Poznań Sp.
z o.o.
ul. Wyzwolenia 34/36,
62-070 Dopiewo
Production, Flexible
Packaging
100.00
Mondi Recykling
Polska Sp. z o.o.
ul. Bydgoska 1, 86-100
Świecie
Service, Corrugated
Packaging
100.00
Mondi Simet Sp.
z o.o.
Grabonóg 77, 63-820
Piaski
Production, Corrugated
Packaging
100.00
Mondi Solec Sp.
z o.o.
Solec 143, 05-532
Baniocha
Production, Flexible
Packaging
100.00
Mondi Świecie
Sp. z o.o.
ul. Bydgoska 1, 86-100
Świecie
Production, Corrugated
Packaging
100.00
Company
Registered office
Principal activities
% of
shares
held by
Group
Mondi Szczecin Sp.
z o.o.
ul. Sloneczna 20, 72-123
Kliniska Wielkie
Production, Corrugated
Packaging
100.00
Mondi Warszawa
Sp. z o.o.
ul. Tarczyńska 98, 96-320
Mszczonów
Production, Corrugated
Packaging
100.00
Mondi Wierzbica
Sp. z o.o.
Kolonia Rzecków 76,
26-680 Wierzbica
Production, Flexible
Packaging
100.00
PLWD Sp. z o.o.2
ul. Bydgoska 1, 86-100
Świecie
Service, Corrugated
Packaging
50.67
Świecie Rail Sp.
z o.o.
ul. Bydgoska 1, 86-100
Świecie
Service, Corrugated
Packaging
100.00
Romania
Mondi Bucharest
S.R.L.
Olympia Tower, 25-29,
Decebal Blvd, 3rd Floor
(Level 4), 030971
Bucharest
Distribution, Flexible
Packaging
100.00
Senegal
Mondi Senegal S.A.
Zone Economique
speciale integree.
Commune de Diass.
Thies – Senegal
Production, Flexible
Packaging
70.00
Serbia
Mondi Šabac d.o.o.
Šabac
Severna 4 No.2, 15000
Šabac
Production, Flexible
Packaging
100.00
Singapore
Mondi Packaging
Paper Sales Asia
Pte. Ltd.
77 Robinson Road,
#13-00, Robinson 77,
Singapore, 068896
Distribution, Flexible
Packaging
100.00
Slovakia
East Paper, spol.
s.r.o.2
Rastislavova 98,
04346 Kosice
Service, Corrugated
Packaging
26.01
Mondi SCP, a.s.
Tatranská cesta 3,
03417 Ružomberok
Production, Corrugated
Packaging, Flexible
Packaging, Uncoated
Fine Paper
51.00
Obaly SOLO, s.r.o
Tatranská cesta 3,
03417 Ružomberok
Holding, Uncoated Fine
Paper
51.00
RECOPAP, s.r.o.2
Bratislavska 18, 90051
Zohor
Service, Corrugated
Packaging
25.50
Slovpaper
Collection s.r.o.
Tatranská cesta 3,
03417 Ružomberok
Service, Corrugated
Packaging
51.00
Slovpaper Recycling
s.r.o.
Tatranská cesta 3,
03417 Ružomberok
Service, Corrugated
Packaging
51.00
SLOVWOOD
Ružomberok a.s.
Tatranská cesta 3,
03417 Ružomberok
Service, Uncoated Fine
Paper
33.66
STRÁŽNA SLUŽBA
VLA-STA s.r.o.
Tatranská cesta 3,
03417 Ružomberok
Service, Uncoated
Fine Paper
51.00
Company
Registered office
Principal activities
% of
shares
held by
Group
Mondi Group
Integrated report and financial statements 2024
210
Notes to the Mondi plc parent company financial statements
for the year ended 31 December 2024 continued
South Africa
Arctic Sun Trading
17 Proprietary
Limited
380 Old Howick Road,
Mondi House, Hilton,
3245
Distribution, Uncoated
Fine Paper
66.67
Bongani
Development Close
Corporation
Devonshire House, 2
Devonshire Place, Durban
Dormant, Uncoated
Fine Paper
100.00
Mondi Forests
Partners Programme
Proprietary Limited
380 Old Howick Road,
Mondi House, Hilton,
3245
Service, Uncoated
Fine Paper
100.00
Mondi Sacherie
Moderne Holdings
Proprietary Limited
Merebank Mill,
Travencore Drive,
Merebank, 4052
Holding, Uncoated
Fine Paper
100.00
Mondi Sahel
Holdings (Pty) Ltd
Merebank Mill,
Travencore Drive,
Merebank, 4052
Holding, Corporate
100.00
Mondi South Africa
(Pty) Limited4
Merebank Mill,
Travencore Drive,
Merebank, 4052
Production, Corrugated
Packaging, Uncoated
Fine Paper
100.00
Mondi Timber
(Wood Products)
Proprietary Limited
Merebank Mill,
Travencore Drive,
Merebank, 4052
Holding, Uncoated
Fine Paper
100.00
Mondi Zimele Job
Funds Proprietary
Limited
380 Old Howick Road,
Mondi House, Hilton,
3245
Service, Uncoated
Fine Paper
100.00
Mondi Zimele
Proprietary Limited
380 Old Howick Road,
Mondi House, Hilton,
3245
Service, Uncoated
Fine Paper
100.00
Siyaqhubeka
Forests Proprietary
Limited
Merebank Mill,
Travencore Drive,
Merebank, 4052
Service, Uncoated
Fine Paper
51.00
Spain
Mondi Bags Ibérica
S.L.U.
Autovía A-2, Km 582,
08630 Abrera
Production, Flexible
Packaging
100.00
Mondi Ibersac S.L.U.
Calle La Perenal 4,
48840 Güeñes, Bizcaia
Production, Flexible
Packaging
100.00
Mondi Sales Ibérica
S.L.
Calle Blasco Garay nº94
5D, 28003 Madrid
Corrugated Packaging,
Uncoated Fine Paper
100.00
Sweden
Mondi Dynäs AB
87381 Väja
Production, Flexible
Packaging
100.00
Mondi Örebro AB
Papersbruksallen 3A,
Box 926, 70130 Örebro
Production, Flexible
Packaging
100.00
Company
Registered office
Principal activities
% of
shares
held by
Group
Switzerland
Dipeco AG
Bruehlstrasse 5,
4800 Zofingen
Distribution, Flexible
Packaging
100.00
Thailand
Mondi Bangkok
Company, Limited
789/10 Moo 9 Bang Pla
Sub-District, Bang Phli
District, Bangkok, Samut
Prakan Province
Production, Flexible
Packaging
100.00
Mondi Coating
(Thailand) Co. Ltd.
Nr 888/100-101 Soi
Yingcharoen Moo 19,
Bangplee-Tamru Road,
Bangpleeyai, Bangplee,
Samutprakam 10540
Production, Flexible
Packaging
100.00
Mondi TSP
Company Limited
110, Moo 3, Nong
Chumphon Nuea, Khao
Yoi District, Petchaburi
Province, 76140
Production, Flexible
Packaging
97.55
Türkiye
Doğal Kağıt
Hammaddeleri
Sanayi ve Ticaret
Limited Şirketi
Zeytinli Mahallesi 94008,
Sodak No:4, Seyhan/
Adana, 01355
Service, Corrugated
Packaging
84.65
Mondi Istanbul
Ambalaj Limited Şti.
No. 12A Türkgücü OSB
Mah. Yilmaz Alpaslan
Caddesi Corlu, Tekirdag,
59870
Production, Flexible
Packaging
100.00
Mondi Kale Nobel
Ambalaj Sanayi Ve
Ticaret A.Ş.
Sevketiye Cobancesme
Kavsagi, A2 Blok, No.
229/230 Yeşilköy,
Bakirköy/Istanbul
Production, Flexible
Packaging
100.00
Mondi Turkey Oluklu
Mukavva Kağıt ve
Ambalaj Sanayi
Anonim Şirketi
Toki Mahallesi, Hasan
Tahsin Caddesi, No. 28,
Tire, Izmir 35900
Production, Corrugated
Packaging
84.65
Ukraine
Mondi Packaging
Bags Ukraine LLC
Fabrychna Street 20,
Zhydachiv, Lviv Region,
81700
Production, Flexible
Packaging
100.00
Company
Registered office
Principal activities
% of
shares
held by
Group
Mondi Group
Integrated report and financial statements 2024
211
11 List of subsidiaries, associated undertakings and other significant holdings continued
UK
Frantschach
Holdings UK Limited
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Dormant, Flexible
Packaging
100.00
Medway Packaging
Pension Trustee
Limited
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Service, Flexible
Packaging
100.00
Mondi Aberdeen
Limited
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Distribution, Flexible
Packaging
100.00
Mondi Consumer
Goods Packaging
UK Ltd
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Dormant, Flexible
Packaging
100.00
Mondi Finance plc
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Service, Corporate
100.00
Mondi Holcombe
Limited
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Dormant, Corrugated
Packaging
100.00
Mondi Investments
Limited4
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Holding, Corporate
100.00
Mondi Packaging
(Delta) Limited
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Dormant, Corrugated
Packaging
100.00
Mondi Packaging
UK Holdings Limited
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Dormant, Corrugated
Packaging
100.00
Mondi Pension
Trustee Limited4
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Service, Corporate
100.00
Mondi Scunthorpe
Limited5
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Dormant, Flexible
Packaging
100.00
Mondi Services (UK)
Limited
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13
0NY
Service, Corporate
100.00
Company
Registered office
Principal activities
% of
shares
held by
Group
USA
Mondi Bags USA,
LLC
251 Little Falls Drive,
Wilmington DE 19808
Production, Flexible
Packaging
100.00
Mondi Jackson LLC
251 Little Falls Drive,
Wilmington DE 19808
Production, Flexible
Packaging
100.00
Mondi Minneapolis,
Inc.
220 South Sixth Street,
Suite 2200, Minneapolis
55402
Service, Flexible
Packaging
100.00
Mondi Romeoville
LLC
251 Little Falls Drive,
Wilmington DE 19808
Production, Flexible
Packaging
100.00
Mondi Tekkote LLC
251 Little Falls Drive,
Wilmington DE 19808
Production, Flexible
Packaging
100.00
Mondi U.S. Holdings
LLC
251 Little Falls Drive,
Wilmington DE 19808
Holding, Corporate
100.00
Notes:
1
Associate accounted for using the equity method.
2
Joint venture accounted for using the equity method.
3 % of shares held by the Group in 2023: nil.
4 These companies are held directly.
5 These companies have ordinary and preference shares.
Company
Registered office
Principal activities
% of
shares
held by
Group
Mondi Group
Integrated report and financial statements 2024
212
Notes to the Mondi plc parent company financial statements
for the year ended 31 December 2024 continued
Other information
Production statistics and
exchange rates
213
Group financial record
214
Alternative Performance
Measures
216
Additional information for
shareholders
219
Shareholder information
221
About this report
225
Production statistics
2024
2023
Continuing operations
Containerboard
000 tonnes
2,345
2,312
Kraft paper
000 tonnes
1,233
1,085
Uncoated fine paper
000 tonnes
938
855
Pulp
000 tonnes
3,725
3,218
Internal consumption
000 tonnes
3,044
2,741
Market pulp
000 tonnes
681
477
Corrugated solutions
million m2
1,899
1,880
Paper bags
million units
5,583
5,414
Consumer flexibles
million m2
1,912
1,818
Functional paper and films
million m2
3,067
2,667
Exchange rates
Average
Closing
versus euro
2024
2023
2024
2023
South African rand (ZAR)
19.83
19.96
19.62
20.35
Czech koruna (CZK)
25.12
24.00
25.19
24.72
Polish zloty (PLN)
4.31
4.54
4.28
4.34
Pound sterling (GBP)
0.85
0.87
0.83
0.87
Turkish lira (TRY)1
35.57
25.76
36.74
32.65
US dollar (USD)
1.08
1.08
1.04
1.11
Note:
1
The Group has applied hyperinflation accounting for its subsidiaries in Türkiye (see notes 7 and 35).
Mondi Group
Integrated report and financial statements 2024
213
Other information
Production statistics and exchange rates
Financial performance 2015–2024
Income, expenses and cash flows for the years ended 2021 and thereafter are presented on a continuing basis and exclude the results
from the divested Russian discontinued operations (see note 28). Profit and cash flow measures for the years ended 2015 to 2020 include
the results from Russian discontinued operations.
Consolidated income statement
€ million, unless otherwise stated
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Group revenue
7,416 7,330 8,902 6,974 6,663 7,268
7,481 7,096 6,662
6,819
Underlying EBITDA
1,049
1,201 1,848
1,157
1,353
1,658
1,764
1,482
1,366
1,325
Corrugated Packaging
328
310
662
543
518
583
707
477
408
427
Flexible Packaging
558
637
797
567
557
589
495
480
419
400
Uncoated Fine Paper
198
289
427
55
266
444
516
464
481
448
Corporate
(35)
(35)
(39)
(34)
(30)
(34)
(32)
(37)
(34)
(34)
Personal Care Components
(divested)
—
—
1
26
42
76
78
98
92
84
Underlying operating profit
606
790
1,443
782
925
1,223
1,318
1,029
981
957
Special items before tax
(150)
(27)
242
7
(57)
(16)
(126)
(61)
(38)
(57)
Net finance costs (excluding financing
special item)
(70)
(73)
(143)
(83)
(95)
(104)
(88)
(85)
(101)
(105)
Underlying earnings
367
523
949
534
627
829
916
721
667
647
Basic earnings
218
502
1,186
543
582
812
824
668
638
600
Basic underlying EPS (euro cents)
82.7
107.8
195.6
110.1
129.3
171.1
189.1 148.9
137.8
133.7
Basic EPS (euro cents)
49.1
103.5 244.5
112.0
120.0
167.6
170.1
137.9
131.8
124.0
Total ordinary dividend per share
paid and proposed (euro cents)1
70.00 70.00 70.00 65.00 60.00 57.03 76.00 62.00 57.00 52.00
Note:
1
A special dividend of €1.60 per existing ordinary share was paid on 13 February 2024 to return the net proceeds from the sale of the Russian assets to the Group’s
shareholders (see notes 9, 10 and 23 for further details).
Significant ratios
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Underlying EBITDA margin (%)
14.1
16.4
20.8
16.6
20.3
22.8
23.6
20.9
20.5
19.4
ROCE (%)
9.6
12.8
23.7
13.9
15.2
19.8
23.6
19.3
20.3
20.5
Net debt to underlying EBITDA (times)
1.7
0.3
0.5
1.5
1.3
1.3
1.3
1.0
1.0
1.1
Dividend cover (times)
1.2
1.5
2.8
2.4
2.2
3.0
2.5
2.4
2.4
2.6
PE ratio
17.4
16.4
8.1
14.1
14.8
12.2
9.6
14.6
14.2
13.5
LSE – share price at end of year
(GBP pence per share)
1,192
1,538
1,410
1,826
1,720
1,773
1,634
1,931
1,666
1,334
JSE – share price at end of year
(ZAR per share)
278
363
291
395
343
326
304
319
279
309
Market capitalisation (€ million)
6,339 8,590
7,738 10,555 9,342 10,165
8,901 10,523 9,457 8,803
Mondi Group
Integrated report and financial statements 2024
214
Other information continued
Group financial record
Significant cash flows
€ million
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Cash generated from continuing
operations
970
1,312
1,292
1,001 1,485
1,635
1,654
1,363
1,401
1,279
Working capital cash flows
(108)
229
(419)
(195)
125
35
(117)
(122)
68
9
Income tax paid
(120)
(178)
(196)
(138)
(168)
(248)
(248)
(151)
(173)
(160)
Capital expenditure cash payments
(933)
(830)
(508)
(481)
(630)
(757)
(709)
(611)
(465)
(595)
Interest paid
(44)
(50)
(60)
(67)
(82)
(96)
(73)
(97)
(82)
(93)
Ordinary dividends paid to
shareholders1
(312)
(345)
(321)
(298)
(237)
(396)
(309)
(273)
(274)
(209)
Note:
1
A special dividend of €1.60 per existing ordinary share was paid on 13 February 2024 to return the net proceeds from the sale of the Russian assets to the Group’s
shareholders (see notes 9, 10 and 23 for further details).
Consolidated statement of financial position
€ million
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Property, plant and equipment
5,160
4,619
4,167 4,870
4,641 4,800 4,340
4,128 3,788 3,554
Goodwill
767
765
769
926
923
948
942
698
681
590
Working capital
1,188
1,084
1,282
988
739
952
972
899
799
794
Other assets
657
673 2,034
558
557
620
540
530
532
422
Other liabilities
(690)
(626)
(987)
(690)
(687)
(728)
(749)
(716)
(721)
(675)
Net assets excluding net debt
7,082
6,515 7,265 6,652
6,173 6,592 6,045 5,539 5,079 4,685
Equity
4,857
5,655 5,794 4,498 4,002
4,015 3,485 3,683
3,392 2,905
Non-controlling interests in equity
493
441
460
391
380
370
340
324
304
282
Net debt
1,732
419
1,011
1,763
1,791
2,207
2,220
1,532
1,383
1,498
Capital employed
7,082
6,515 7,265 6,652
6,173 6,592 6,045 5,539 5,079 4,685
Mondi Group
Integrated report and financial statements 2024
215
The Group presents certain measures of financial performance, position or cash flows in the consolidated financial statements that are
not defined or specified according to IFRS Accounting Standards 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 Accounting Standards 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, underlying EBITDA and ROCE, link to the Group’s
strategy, as described on pages 22-23, and form part of the executive directors' and senior management's remuneration targets.
The most significant APMs used by the Group are described below, together with a reconciliation to the equivalent IFRS Accounting
Standards measure. The reconciliations are based on Group figures and represent the continuing operations of the Group, unless
otherwise stated. The reporting segment equivalent APMs are measured in a consistent manner.
Special items
Special items are generally material, non-recurring items from continuing operations that exceed
€10 million. The Audit Committee regularly assesses the monetary threshold of €10 million on a net
basis 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 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. Examples of special item charges or credits include, but
are not limited to, significant restructuring programmes, impairment of assets or cash-generating units,
costs associated with potential and achieved acquisitions, profits or losses from the disposal of
businesses, and the settlement of significant litigation or claims.
Subsequent adjustments to items previously recognised as special items, including any related credits
received subsequently, continue to be reflected as special items in future periods even if they do not
exceed the quantitative reporting threshold. Subsequent adjustments to items, or charges and credits
on items that are closely related, which previously did not qualify for reporting as special items, continue
to be reported in the underlying result even if the cumulative net charge/credit over the years exceeds
the €10 million quantitative reporting threshold.
Note 3
None
Underlying EBITDA
Operating profit before special items, depreciation, amortisation and impairments not recorded as
special items provides a measure of the cash-generating ability of the Group's continuing operations
that is comparable from year to year.
Consolidated
income
statement
Operating
profit
Underlying EBITDA margin
Underlying EBITDA expressed as a percentage of Group revenue (segment revenue for operating
segments) provides a measure of the cash-generating ability of the Group's continuing operations
relative to revenue.
None
APM calculation:
€ million, unless otherwise stated
2024
2023
Underlying EBITDA (see consolidated income statement)
1,049
1,201
Group revenue (see consolidated income statement)
7,416
7,330
Underlying EBITDA margin (%)
14.1
16.4
Underlying operating profit
Operating profit before special items provides a measure of operating performance of the Group's
continuing operations that is comparable from year to year.
Consolidated
income
statement
Operating
profit
Underlying profit before tax
Profit before tax and special items. Underlying profit before tax provides a measure of the Group’s
continuing operations' profitability before tax that is comparable from year to year.
Consolidated
income
statement
Profit before
tax
APM description and purpose
Financial
statement
reference
Closest IFRS
equivalent
measure
Mondi Group
Integrated report and financial statements 2024
216
Other information continued
Alternative Performance Measures
Effective tax rate
Underlying tax charge expressed as a percentage of underlying profit before tax.
A measure of the tax charge of the Group's continuing operations relative to its profit before tax
expressed on an underlying basis.
None
APM calculation:
€ million, unless otherwise stated
2024
2023
Tax charge before special items (see note 8a)
117
167
Underlying profit before tax (see consolidated income statement)
528
709
Effective tax rate (%)
22.2
23.6
Underlying earnings (and per share measure)
Net profit after tax before special items arising from the Group's continuing operations that is
attributable to shareholders.
Underlying 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 continuing operations’ earnings.
Note 9
Profit for the
period
attributable to
shareholders
(and per
share
measure)
Total earnings (prior to special items)
Net profit after tax before special items arising from the Group's continuing and discontinued operations
that is attributable to shareholders.
Total earnings provides a measure of the Group’s earnings.
Note 9
Profit for the
period
attributable to
shareholders
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 shares outstanding) is mandated under the Listings Requirements of the
JSE Limited and is calculated in accordance with Circular 1/2023, ‘Headline Earnings’, as issued by the
South African Institute of Chartered Accountants.
Note 9
Profit for the
period
attributable to
shareholders
(and per share
measure)
Dividend cover
Basic underlying EPS from continuing operations divided by total ordinary dividend per share paid
and proposed provides a measure of the Group’s earnings relative to ordinary dividend payments.
None
APM calculation:
euro cents, unless otherwise stated
2024
2023
Basic underlying EPS (see note 9)
82.7
107.8
Total ordinary dividend per share (see note 10)
70.0
70.0
Dividend cover (times)
1.2
1.5
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 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.
Note 21
Total equity
APM description and purpose
Financial
statement
reference
Closest IFRS
equivalent
measure
Mondi Group
Integrated report and financial statements 2024
217
Return on capital employed (ROCE)
Trailing 12-month underlying operating profit, including share of associates' and joint ventures' net
profit/(loss), divided by 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 the Group's
continuing operations for comparability.
None
APM calculation:
€ million, unless otherwise stated
2024
2023
Underlying operating profit (see consolidated income statement)
606
790
Underlying net loss from joint ventures (see consolidated income statement)
(3)
(5)
Underlying profit from operations and joint ventures
603
785
Trailing 12-month average capital employed of continuing operations (see note 2)
6,283
6,135
ROCE (%)
9.6
12.8
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 less cash and cash equivalents, net of overdrafts, and current financial
asset investments.
Net debt provides a measure of the Group’s net indebtedness or overall leverage. Trailing 12-month
average net debt is the average monthly net debt over the last 12 months.
Note 27c
None
Net debt to underlying EBITDA
Net debt divided by trailing 12-month underlying EBITDA. A measure of the Group’s net indebtedness
relative to its cash-generating ability.
None
APM calculation:
€ million, unless otherwise stated
2024
2023
Net debt (see note 27c)
1,732
419
Underlying EBITDA (see consolidated income statement)
1,049
1,201
Net debt to underlying EBITDA (times)
1.7
0.3
APM description and purpose
Financial
statement
reference
Closest IFRS
equivalent
measure
Mondi Group
Integrated report and financial statements 2024
218
Other information continued
Alternative Performance Measures continued
The disclosures below form part of the Directors’ report on pages 136-137 of this report.
Introduction
Set out below is a summary of certain provisions of Mondi’s articles of association (the Articles) and applicable English law concerning
companies (the Companies Act 2006). This is a summary only, and the relevant provisions of the Articles and/or the Companies Act 2006
should be consulted (as applicable) if further information is required.
Share capital
Mondi’s issued share capital as at 31 December 2024 comprised 441,412,530 ordinary shares of 22 euro cents each (the Ordinary Shares)
representing 100% of the total share capital.
Purchase of own shares
Subject to the provisions of the Articles and the Companies Act 2006, Mondi may purchase, or may enter into a contract under which it will or may
purchase, any of its own shares of any class, including any redeemable shares. At the Annual General Meeting held on 3 May 2024, authority was
given for Mondi to purchase, in the market, up to 22,070,626 Ordinary Shares. This authority will expire at the conclusion of the Annual General
Meeting to be held in 2025 and, in accordance with usual practice, a resolution to renew such authority for the next year will be proposed.
Ordinary Shares
Dividends and distributions
Subject to the provisions of the Companies Act 2006, Mondi may, by ordinary resolution, from time to time declare dividends not
exceeding the amount recommended by the Board. The Board may pay interim dividends whenever the financial position of Mondi,
in the opinion of the Board, justifies such payment.
The Board may withhold payment of all, or any part of any dividends or other monies payable in respect of Mondi’s shares, from a person
with a 0.25% interest or more in nominal value of the issued shares, if such a person has been served with a notice after failure to provide
Mondi with information concerning interest in those shares required to be provided under the Companies Act 2006.
Voting rights and restrictions
Subject to the Articles generally and to any special rights or restrictions as to voting attached by or in accordance with the Articles to any
class of shares, at a general meeting, every member present in person has, upon a show of hands, one vote. Every duly appointed proxy
has, upon a show of hands, one vote unless the proxy is appointed by more than one member, in which case the proxy has one vote for
and one vote against if (i) the proxy has been instructed by one or more members to vote for the resolution and by one or more
members to vote against the resolution or (ii) the proxy has been instructed by one or more members to vote either for or against the
resolution and by one or more members to use their discretion as to how to vote. On a poll, every member who is present in person or
by proxy has one vote for every fully paid share of which they are the holder.
In the case of joint holders of a share, the vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted to the
exclusion of the votes of the other joint holders, and for this purpose seniority shall be determined by the order in which the names stand
in the register of members in respect of the shares.
Under the Companies Act 2006, members are entitled to appoint a proxy, who need not be a member of Mondi, to exercise all or any
of their rights to attend and to speak and vote on their behalf at a general meeting or class meeting.
A member may appoint more than one proxy in relation to a general meeting or class meeting provided that each proxy is appointed to
exercise the rights attached to a different share or shares held by that member. A proxy is not entitled to delegate the proxy’s authority
to act on behalf of a member to another person. A member that is a corporation may appoint one or more individuals to act on its
behalf at a general meeting or class meeting as a corporate representative. Where a shareholder appoints more than one corporate
representative in respect of its shareholding, but in respect of different shares, those corporate representatives can act independently
of each other, and validly vote in different ways.
No member shall be entitled to vote either in person or by proxy at any general meeting or class meeting, or to exercise any other right
conferred by membership in relation to such meetings, in respect of any shares held by them, if any call or other sum then payable by them to
Mondi in respect of that share remains unpaid. In addition, no member shall be entitled to vote if they have been served with a notice
after failing to provide Mondi with information concerning interests in those shares required to be provided under the Companies Act 2006.
The Articles provide a deadline for submission of proxy forms of not less than 48 hours before the time appointed for the holding of
the meeting or adjourned meeting.
Variation of rights
Subject to the Companies Act 2006, the Articles specify that rights attached to any class of shares may be varied with the written
consent of the holders of not less than three-quarters in nominal value of the issued shares of that class, or with the sanction of a special
resolution passed at a separate general meeting of the holders of those shares. At every such separate general meeting, the quorum shall
be two persons holding, or representing by proxy, at least one-third in nominal value of the issued shares of the class (calculated
excluding any shares held as treasury shares).
Mondi Group
Integrated report and financial statements 2024
219
Additional information for shareholders
Ordinary Shares continued
Variation of rights continued
The rights conferred upon the holders of any shares shall not, unless otherwise expressly provided in the rights attaching to those shares,
be deemed to be varied by the creation or issue of further shares ranking pari passu with them. Notwithstanding this, the relevant plan
rules provide that any shares held by the trustee of the Mondi Share Incentive Plan from time to time will not be voted.
Transfer of shares
All transfers of shares which are in certificated form may be effected by transfer in writing in any usual or common form or in any other
form acceptable to the directors. The instrument of transfer shall be signed by, or on behalf of, the transferor and (except in the case
of fully paid shares) by, or on behalf of, the transferee and shall specify the name of the transferor, the name of the transferee and the
number of shares being transferred. The transferor shall remain the holder of the shares concerned until the name of the transferee is
entered into the register of members in respect of those shares. Transfers of shares which are in uncertificated form are effected by
means of the CREST system.
The directors may refuse to register an allotment or transfer of shares (whether fully paid or not) in favour of more than four persons
jointly. If the directors refuse to register an allotment or transfer they shall, within two months after the date on which the letter of
allotment or transfer was lodged with Mondi, send to the allottee or transferee a notice of the refusal.
The directors may decline to register any instrument of transfer unless the instrument of the transfer: (i) is in respect of only one class
of share; (ii) is lodged at the transfer office (duly stamped if required), accompanied by the relevant share certificate(s) and such other
evidence as the directors may reasonably require to show the right of the transferor to make the transfer (and, if the instrument
of transfer is executed by some other person on their behalf, the authority of that person to do so); and (iii) is fully paid.
Subject to the Companies Act 2006 and regulations and applicable CREST rules, the directors may determine that any class of shares
may be held in uncertificated form and that title to such shares may be transferred by means of the CREST system, or that shares of
any class should cease to be so held and transferred.
A shareholder does not need to obtain the approval of Mondi, or of other shareholders of Mondi, for a transfer of shares to take place.
Notwithstanding the above, some of the Mondi employee share plans include restrictions on transfer of shares while the shares are
subject to such plan.
Directors
Directors shall be no less than four and no more than 20 in number. A director is not required to hold any shares of Mondi by way of
qualification. Mondi may by special resolution increase or reduce the maximum or minimum number of directors. Each director shall retire
at the Annual General Meeting held in the third calendar year following the year in which the director was elected or last re-elected by
Mondi, or at such earlier Annual General Meeting as the directors resolve. A retiring director shall be eligible for re-election.
The Board may appoint any person to be a director (so long as the total number of directors does not exceed the limit prescribed in
the Articles). Any such director shall hold office only until the next Annual General Meeting (or if the notice of the next Annual General
Meeting has already been sent at the time of such person’s appointment, the Annual General Meeting following that one) and shall then
be eligible for re-election.
Subject to the Articles, the Companies Act 2006 and any directions given by special resolution, the business of Mondi will be managed
by the Board which may exercise all the powers of Mondi.
The Board may exercise all the powers of Mondi to borrow money and to mortgage or charge any of its undertaking, property and
uncalled capital and to issue debentures and other securities, whether outright or as collateral security for any debt, liability or obligation
of Mondi or of any third party.
Indemnities
As at the date of this report, indemnities are in force under which Mondi has agreed to indemnify its directors, to the extent permitted by
law and the Articles in respect of all losses arising out of, or in connection with, the execution of their powers, duties and responsibilities,
as directors of Mondi or any of its subsidiaries.
Significant agreements: change of control
All of Mondi’s employee share plans contain provisions relating to a change of control. Outstanding awards and options would normally
vest and become exercisable on a change of control, subject to the satisfaction of any performance conditions at that time and under
certain plans, time pro-rating. The Group also has in place certain borrowing facilities and banking arrangements, some of which could
be cancelled, become immediately payable or subject to acceleration upon a change of control of Mondi. Of these arrangements, only
one facility agreement is considered to be significant to the Group. In addition, subsidiaries of the Company are parties to significant
agreements (being supply agreements) entitling the counterparty to terminate such agreements in certain circumstances if there is a
change of control of the Company following a takeover. There are no other significant agreements that would take effect, alter or
terminate upon a change of control following a takeover bid.
Amendment of the Articles
Any amendments to the Articles may be made in accordance with the provisions of the Companies Act 2006 by way of special resolution.
Mondi Group
Integrated report and financial statements 2024
220
Other information continued
Additional information for shareholders continued
Mondi plc is a company registered in the UK. It is listed on the London Stock Exchange in the ESCC category, where the Group
is a FTSE 100 constituent. It also has a secondary listing on the JSE Limited. Any shareholders still in possession of an old Mondi Limited
share certificate should contact JSE Investor Services using the details below.
Financial calendar
May 2025
2025 Annual General Meeting
May 2025
Trading update
May 2025
Payment date for 2024 final dividend
July 2025
2025 half-year results announcement
September/October 2025
2025 interim dividend payment1
October 2025
Trading update
1 If one is declared.
Please go to www.mondigroup.com for the most up-to-date calendar.
Analysis of shareholders
As at 31 December 2024, Mondi plc had 441,412,530 ordinary shares in issue, of which 189,716,926 were held on the South African branch register.
By size of holding
Number of shareholders
% of shareholders
Size of shareholding
Number of shares
% of shares
1,638
53.16
1–500
312,711
0.07
310
10.06
501–1,000
221,015
0.05
426
13.83
1,001–5,000
1,004,631
0.23
400
12.98
5,001–50,000
7,280,583
1.65
260
8.44
50,001–1,000,000
60,748,179
13.76
47
1.53
1,000,001–highest
371,845,411
84.24
3,081
100.00
441,412,530
100.00
Managing your shares
Registrars
To manage your shares or if you have any queries, please contact the relevant Registrar:
Shares held on the UK register
Shares held on the South African branch register
Registrar
Equiniti Limited
JSE Investor Services (Pty) Limited (JSE Investor
Services)
Postal address
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
PO Box 4844
Johannesburg, 2000
South Africa
Helpline number
+44 (0)371 384 2576 (lines are open
08.30 to 17.30 (UK time), Monday to Friday
(excluding public holidays in England
and Wales))
011 713 0800
(if calling from South Africa)
+27 11 713 0800
(if calling from outside South Africa)
Email
customer@equiniti.com
info@jseinvestorservices.co.za
Online
www.shareview.co.uk
Not available
Sign up to email communications
Receiving shareholder information electronically is a faster way to stay informed and more environmentally friendly.
Shareholders on the UK register can sign up to email communications by contacting Equiniti or via its online portal, ShareView.
Shareholders on the South African branch register holding their shares in certificated form can sign up to email communications by
contacting JSE Investor Services or by emailing ecomms@jseinvestorservices.co.za. Shareholders on the South African branch register
with dematerialised shares should contact their Central Securities Depository Participant (CSDP) or broker.
Mondi Group
Integrated report and financial statements 2024
221
Shareholder information
Managing your shares continued
You will be notified by email each time new financial reports, notices of shareholder meetings and other shareholder communications
are published on our website at: www.mondigroup.com.
Manage your shares online
Shareholders on the UK register can sign up to ShareView, a free secure online site provided by Equiniti, where you can manage your
shareholding quickly and easily. You can do the following:
– view your holding and get an indicative valuation;
– change your address;
– arrange to have dividends paid into your bank account;
– request to receive shareholder communications by email rather than post;
– view your dividend payment history;
– make dividend payment choices;
– buy and sell shares and access stock market news and information;
– register your proxy voting instruction; and
– download a Stock Transfer form.
To register for ShareView just visit www.shareview.co.uk. All you need is your shareholder reference number, which can be found on your
latest dividend statement. Please note the shareholder reference number found on your share certificate may have been issued by the
previous Registrar.
Shareholders on the South African branch register can sign up to ShareHub, the JSE’s platform designed to enhance the shareholder
experience. ShareHub allows you to access your dividend payment confirmations in real time and enables you to view, download or print
the document from the ShareHub box at your convenience. You will have the option to opt out if you wish to continue receiving dividend
payment confirmations via normal post. As electronic post boxes will be opened for all certificated shareholders on the ShareHub
platform, we would encourage you to use these existing post boxes to receive all future shareholder communications, including financial
statements and meeting notices. For more information and to sign up, contact JSE Investor Services at
sharehubqueries@jseinvestorservices.co.za.
Dividends
A proposed final dividend for the year ended 31 December 2024 of 46.67 euro cents per ordinary share will be paid to shareholders
in accordance with the below timetable.
Payment of the final dividend is subject to the approval of shareholders at the Annual General Meeting scheduled for 8 May 2025.
Last date to trade shares cum-dividend
JSE Limited
Tuesday 1 April
London Stock Exchange
Wednesday 2 April
Shares commence trading ex-dividend
JSE Limited
Wednesday 2 April
London Stock Exchange
Thursday 3 April
Record date
Friday 4 April
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections by Central Securities Depository
Participants
Thursday 10 April
Last date for DRIP elections to South African Transfer Secretaries by shareholders
Friday 11 April
Last date for DRIP elections to UK Registrar by shareholders
Tuesday 22 April
Annual General Meeting
Thursday 8 May
Payment date
Friday 16 May
DRIP purchase settlement dates (subject to the purchase of shares in the open market)
UK Register
Tuesday 20 May
South African Register
Thursday 22 May
DRIP results announcement
Friday 30 May
Currency conversion dates
ZAR/euro
Thursday 20 February
Euro/sterling
Thursday 24 April
Mondi Group
Integrated report and financial statements 2024
222
Other information continued
Shareholder information continued
Share certificates on Mondi plc’s South African register may not be dematerialised or rematerialised between Wednesday 2 April 2025
and Friday 4 April 2025, both dates inclusive, nor may transfers between the UK and South African registers of Mondi plc take place
between Wednesday 26 March 2025 and Friday 4 April 2025, both dates inclusive.
Dividend tax will be withheld from the amount of the gross final dividend paid to shareholders on the South African branch register
at the rate of 20%, unless a shareholder qualifies for an exemption.
Your dividend currency
All dividends are declared in euro. Dividends are paid in euro with the following exceptions:
UK residents
pound sterling
South African residents
South African rand
Shareholders on the UK register resident in the UK may, however, elect to receive their dividends in euro, and shareholders on the
UK register resident outside the UK may elect to receive their dividends in pound sterling.
Shareholders on the UK register wishing to elect to receive their dividends in an alternative currency should contact Equiniti using
the details provided.
Payment of your dividends
Mondi encourages shareholders to have dividends paid directly into their bank accounts, meaning the payment will reach you more
securely and on the payment date, without the inconvenience of depositing a cheque.
Shareholders on the UK register:
– Shareholders wishing to receive dividends in euro or sterling can elect to receive dividends directly into their bank account via
ShareView or by contacting Equiniti.
– Shareholders wishing to receive another local currency may be able to take advantage of the Overseas Payment Service offered
by Equiniti. Find out more via ShareView or by contacting Equiniti.
Shareholders on the South African branch register:
– The 2019 interim dividend was the last dividend to be paid by cheque. Shareholders who previously received cheques should
contact JSE Investor Services, if they have not already done so, to provide their bank details and ensure they continue to receive
their dividends.
– Shareholders without a South African bank account are encouraged to dematerialise their shares with a CSDP in South Africa, as
a CSDP is often able to pay dividends into foreign bank accounts. Find out more by contacting JSE Investor Services or any CSDP.
Reinvest your dividends
The dividend reinvestment plans (DRIPs) provide an opportunity for shareholders to have their cash dividends reinvested in Mondi plc
ordinary shares.
The plans are available to all ordinary shareholders (excluding those in certain restricted jurisdictions). Fees may apply.
If you wish to participate in the DRIPs, you can sign up via ShareView or by contacting either Equiniti in the UK or JSE Investor Services
in South Africa as appropriate.
South African dematerialisation
Mondi encourages shareholders on the South African branch register to consider dematerialising their shares. By surrendering your
share certificate, you will hold your shares electronically with a CSDP in South Africa, helping to prevent share fraud, theft and loss
of share certificates.
Find out more by contacting JSE Investor Services or any CSDP.
Taxation
Mondi is unable to advise shareholders on taxation. Your tax obligations will vary depending on your jurisdiction and financial
circumstances. With regard to your Mondi shareholding, we recommend all shareholders maintain records of dividend payments,
share purchases and sales. A dividend confirmation will be sent with all dividend payments. For further assistance, please speak
to an independent professional tax or financial adviser.
Mondi Group
Integrated report and financial statements 2024
223
Donating shares to charity
For shareholders on the UK register, if you have a small number of shares which would cost you more to sell than they are worth, there
is the option to donate these unwanted shares to charity free of charge. These shares are then aggregated and sold and the proceeds
distributed to various charities. To do so, please contact ShareGift by phone on +44 (0)207 9303737, by email at help@sharegift.org or
visit its website, www.sharegift.org.
Fraud
Shareholders should be aware that they may be targeted by certain organisations offering unsolicited investment advice or the
opportunity to buy or sell worthless or non-existent shares. Should you receive any unsolicited calls or documents to this effect, you are
advised not to give out any personal details or to hand over any money without ensuring that the organisation is authorised by the UK
Financial Conduct Authority (FCA) and doing further research.
If you are unsure or think you may have been targeted you should report the organisation to the FCA. For further information, please visit
the FCA’s website at www.fca.org.uk or call the FCA consumer helpline on 0800 111 6768 if calling from the UK or +44 20 7066 1000 if
calling from outside the UK.
Shareholders can also contact Equiniti in the UK or JSE Investor Services in South Africa using the contact details found above,
or Mondi’s company secretarial department on +44 (0) 1932 826300.
Account amalgamations
If you receive more than one copy of any documents sent out by Mondi or for any other reason you believe you may have more than
one Mondi plc account, please contact the relevant Registrar who will be able to confirm and, if necessary, arrange for the accounts
to be amalgamated into one.
Alternative formats
If you would like to receive this report in an alternative format, such as in large print, Braille or audio format, please contact Mondi’s
company secretarial department on +44 (0) 1932 826300.
Mondi plc
Registered office
Ground Floor, Building 5
The Heights, Brooklands
Weybridge
Surrey
KT13 0NY
UK
Tel. +44 (0) 1932 826300
Registered in England and Wales
Registered No. 6209386
Website: www.mondigroup.com
Mondi Group
Integrated report and financial statements 2024
224
Other information continued
Shareholder information continued
The report is prepared in accordance
with the requirements of the Disclosure
Guidance and Transparency and Listing
Rules of the United Kingdom Listing
Authority and the Listings Requirements
of the JSE Limited where applicable.
The report aims to provide a fair, balanced
and understandable assessment of our
business model, strategy, performance and
prospects in relation to material financial,
economic, social, environmental and
governance issues.
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 applicable law or
any regulatory body applicable to Mondi,
including the JSE Limited and the LSE.
Mondi Group
Integrated report and financial statements 2024
225
About this report
This document includes market position estimates prepared by the Group based on industry publications and management estimates. Main industry publication sources are:
Fastmarkets (RISI), Eurosac, Freedonia, Alexander Watson Associates, PCI Wood Mackenzie, EMGE and EURO-GRAPH.
Mondi Group
Ground Floor, Building 5,
The Heights, Brooklands,
Weybridge, Surrey KT13 0NY,
United Kingdom
+44 1932 826 300
www.mondigroup.com
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