OREANDA-NEWS. This interim management statement provides an update on the financial performance and financial position of the Group since the year ended 31 December 2013, based on management accounts up to 31 March 2014 and estimated results for April 2014. These results have not been audited or reviewed by Mondi's external auditors.

Reviewed results for the half-year ending 30 June 2014 will be published on or around 7 August 2014.

Except as discussed in this interim management statement, there have been no significant events or transactions impacting either the financial performance or financial position of Mondi Group since 31 December 2013 up to the date of this statement.

Group Performance Overview

First quarter underlying operating profit of EUR183 million was 13% above the comparable prior year period (EUR162 million), 14% above the fourth quarter of 2013 (EUR161 million), and in line with management's expectations.

Sales volumes were broadly in line with the comparable prior year period, and above the previous quarter, mainly due to the scheduling of maintenance shuts in the second half of the prior year.

As expected, average selling prices in Europe for all key paper grades were lower than those in both the prior year comparable period and the previous quarter, with the exception of recycled containerboard. The corrugated packaging business benefited from further pass through of prior period recycled containerboard price increases, while pricing in the South African division was higher than the comparable prior year period in equivalent currency terms.

There was some increase in key input costs over the quarter, with increases in wood costs and paper for recycling affecting the European operations. Offsetting these increases is the benefit from the various energy optimisation projects and restructuring initiatives completed during the prior year. Furthermore, in the comparable prior year period, a write-down relating to the value of green energy credits on hand in Poland, amounting to EUR11 million was recognised.

There were no significant maintenance shuts during the quarter. The majority of the planned maintenance shuts will take place towards the end of the second quarter and into the second half of the year. The impact of maintenance shuts on annual operating profit is estimated to be between EUR50 million and EUR60 million.

Although there has been significant volatility in the key currencies to which the Group is exposed, the overall weakening trend in the Group's key operating currencies against the euro yielded a marginal net benefit. The businesses in Poland and South Africa were net beneficiaries, given their significant export exposure, but this was partially offset by the impact of the weaker Russian rouble on the Group's more domestically focused Russian businesses.

While the Group remains vigilant of the ongoing political developments in the Ukraine, to date they have had no material impact on the Group's operations.