OREANDA-NEWS. August 13, 2012. Highlights

•           Good operating performance after a challenging start to the year

•           Return on Capital Employed of 13.3%, in excess of the Group’s           through-the-cycle target of

13%

•           Interim dividend of 8.9 euro cents per share, up 8%

•           Strong cash generation of €353 million

•           Significant strategic acquisitions:

- Swiecie minorities acquired for €296 million

- €655 million acquisition of Nordenia agreed

Financial summary

€ million, except for percentages and per share measures

Six months ended 30 June 2012

Six months ended 30 June 2011

Six months ended 31 December 2011

From continuing operations

 

 

 

Group revenue Underlying EBITDA Underlying operating profit Underlying profit before tax Profit before tax

2,840

436

269

217

223

2,942

526

354

296

300

2,797

438

268

216

157

Per share measures

 

 

 

Basic underlying earnings per share Basic earnings per share - alternative measure (€ cents) Basic earnings per share from continuing operations (€ cents) Basic earnings per share (€ cents)

30.9

30.9

31.7

31.7

38.2

41.7

39.0

41.6

29.9

30.1

18.5

24.5

Interim dividend per share (€ cents) Free cash flow per share (€ cents)

8.9

9.3

8.25

19.6

59.2

Cash generated from operations Net debt

353

1,273

403

1,200

514

831

Group Return on Capital Employed (ROCE)

13.3%

15.2%

15.0%

David Hathorn, Mondi Group chief executive, said:

"We are pleased to announce good results following the anticipated pick-up in trading after a challenging start to the year. Cash generation is robust and our return on capital employed remains above our through-the-cycle target, reflecting the strength of our low-cost operating model.

We have made significant progress on a number of strategic initiatives, most notably the acquisition of the remaining minority interest in Swiecie and the agreement to acquire a 93.9% interest in Nordenia. These steps build on our position as a leading international packaging and paper company with a strong platform for continued growth in emerging markets.

The macroeconomic environment remains a concern, with continued soft demand evident in certain western European markets. Encouragingly, demand in a number of the emerging markets to which the Group is exposed remains firm, and positive supply side fundamentals in various of our core grades offer price support. As such, we remain confident of delivering against our expectations for the full year. ”