OREANDA-NEWS. May 3, 2012. This interim management statement provides an update on the financial performance and financial position of the Group since the year ended 31 December 2011, based on management accounts up to 31 March 2012 and estimated results for April 2012, which have not been audited or reviewed by Mondi’s external auditors.

Reviewed results for the half year ending 30 June 2012 will be published on or around 7 August 2012.

Except as discussed in this interim management statement, there have been no other significant events or transactions impacting either the financial performance or financial position of Mondi since 31 December 2011 up to the date of this statement.

Group Performance Overview

Overall performance for the first quarter 2012 was in line with our expectations. As anticipated, the generally weaker trading environment seen towards the end of the prior year continued into the early part of the first quarter. The Group’s underlying operating profit of €120 million in the period was below that achieved in the previous quarter (2011 Q4: €132 million) and below that achieved in the strong trading environment prevalent in the comparable prior year period (2011 Q1: €179 million).

Pleasingly, following the low levels of demand seen towards the end of the previous quarter and into the early part of 2012, there was a clear trend of improving demand through the period under review, such that, on average, sales volumes were higher than the previous quarter across all paper grades. Similarly, although selling prices across all major paper grades were on average lower than those achieved in the previous quarter, a trend of improving prices towards the end of the quarter was evident. The benefits of these improving prices, partly offset by rising fibre input costs, are expected to be realised from the second quarter onwards.

Average input costs were lower than the prior quarter, but increased during the period with closing benchmark prices being higher than those at 31 December 2011. Benchmark hardwood pulp prices had increased by 15% at 31 March 2012 from 31 December 2011 levels and recovered paper increased by 30% over the same period. Wood costs remained at similar levels to those of the previous quarter.

Most emerging market currencies to which the Group is exposed as a net exporter were slightly weaker against the euro when compared to the previous quarter, providing a small positive contribution to the Group’s performance.