MONDI Europe & International

Procurement Excellence through Automisation

Beatrix Praeceptor

Procurement Director

April 2016

IN TOUCH EVERY DAY

Our products touch the lives of

millions, every day.

April 2016 1Mondi Procurement Excellence

● Mondi Europe & International

● Procurement Excellence @ Mondi

● Lessons learned

Mondi Procurement Excellence 2April 2016

Content

We are an international packaging and paper Group, employing around 25,000 people across

more than 30 countries.

Our key operations are located in central Europe, Russia, North America and South Africa.

Mondi Procurement Excellence 3April 2016

Mondi Group

Containerboard

Packaging Paper

Europe & International

DivisionSouth Africa Division

Sack Kraft Paper

Speciality Kraft Paper

Fibre Packaging

Corrugated Packaging

Industrial Bags

Extrusion Coatings

Consumer Packaging

Advanced Materials

Consumer Goods

Packaging

Uncoated Fine Paper

Pulp

Uncoated Fine Paper

Containerboard

Africa

Mondi operates locally with more than 100 operations across more than 30 countries.

Mondi Procurement Excellence 7April 2016

Mondi Group – Network

Europe Asia

North America

In 2015, Mondi had revenues of €6.8 billion and a ROCE of 20.5%. Mondi has a dual listed company structure,

with a primary listing on the JSE Limited for Mondi Limited and a premium listing on the London Stock Exchange

for Mondi plc.

Mondi Group 2015 2014 Change (2015 vs 2014)

Revenue €6,819m €6,402m 7%

Underlying EBITDA1 €1,325m €1,126m 18%

Underlying operating profit1 €957m €767m 25%

ROCE2 20.5% 17.2% -

Mondi Procurement Excellence 8April 2016

Mondi Group – Key figures

1 The Group presents underlying EBITDA and operating profit as measures which exclude special items in order to provide a more effective comparison of the underlying financial performance

of the Group.

2 ROCE is underlying profit expressed as a percentage of the average capital employed for the year, adjusted for impairments and spend on strategic projects which are not yet in operation.

● Mondi Europe & International

● Procurement Excellence @ Mondi

● Lessons learned

Mondi Procurement Excellence 9April 2016

Content

Mondi Procurement Excellence 10April 2016

Mondi E&I Procurement

€4,2 bn total spend

(split in 13 categories)

€3,7bn influenceable spend

~39.000 active supplier

(total 130.000)

~ €60m yearly savings

~580.000 POs ~185 FTE for sourcing

~1.000.000 PO-positions ~300 tactical buyer

Key Figures

Mondi Procurement Excellence 11April 2016

Mondi E&I procurement processes and supportive tools

Procurement Excellence

Commercial agreement(price/supplier)Yes

Automation

(SAP / ARIBA / VIA)

DEMAND

No

Source to Contract - S2C

(Strategic sourcing)

Request to Pay - R2P

(Tactical procurement)

Supplier life cycle management

& data transparency

(SAP/SLC & AGORA)

- Transparency on spend data & harmonisation of supplier base

- 360° view of activities with individual supplier across all kernels (existing & potential)

- Digital interface for tactical and administrative interaction between Mondi & supplier

Full visibility and standard approach across Mondi E&I = “one face to the supplier”

Agora – were all data get together

● Overarching business warehouse across all business segments

● Harmonized and standardized automatic download of data from all sources (SAP and non-SAP)

● Customized and compliant user authorization

● 20 Standard available by Plant/Supplier/Category/Material

● Pre-requisits: Harmonisation and common understanding of Material Codes

● Challenge: Benefits on group level vs workload is on local level

Benefits: Savings and Efficiency

Mondi Procurement Excellence 12April 2016

Outlook 2016/2017

● Implementation of „Procurement Portal“

o Procurement one stop shop for all reports and data

needs (static and dynamic)

Mondi Procurement Excellence 13April 2016

SRM@Mondi: a step by step implementation of 8 modules(in all SAP Kernels/BU/BS)

1. Strategy and ambition targets

2. Supplier evaluation (group / local)

3. e-procurement (EDI, catalogues, invoice automation)

4. On-boarding / master data management

5. Activity management (audits, visits, action planning,.. )

6. Classification & risk management

7. RFI, RFX, E-tendering, e-auctioning

8. Contract management

9. Claim management

From different tools and documents one system with all necessary information

2014/15

2016

2017

2013

Mondi Procurement Excellence 14April 2016

Key priority: high automation of R2P

Purchase Requisition

Purchase Order

Order Confirmation / delivery note

Goods receipt Invoice

● Full benefit is achieved through end to end automation of the R2P process

o End to end collaboration is required across the supply chain (Operations/logistics, procurement, finance)

● 50-70 % of our R2P process will run automatically (excl. good receipt)

o Available tools give us full flexibility – some plants have reached this level already

● Prerequisites:

o Dedicated resources required (Business Process Owner and local teams for implementation)

o Release strategy in place

o SRM and e-procurement implementation

Benefit: Transactional time savings of 20 - 25 Minutes per PO/invoice within supply chain

Mondi Procurement Excellence 15April 2016

e-procurement (Ariba) to support the automation

● E-catalogues

o Content

o (Punch out)

● E-transactions

o Purchase order

o Purchase confirmation

o Invoice

● Prerequisites:

o Supplier Master Data cleaning

and central on-boarding

o Aligned strategy, roles and

responsibilities for sourcing

activities (catalogue

negotiations)

Benefits: 50 – 70 % automation and move resources from administration of P.O. to sourcing activities

● Mondi Europe & International

● Procurement Excellence @ Mondi

● Lessons learned

Mondi Procurement Excellence 16April 2016

Content

Mondi Procurement Excellence 17April 2016

Lessons learned

● Share the vision:

○ Common understanding of strategic importance – at all levels of the organisation

○ Share the “big picture” and decide on platform with “the end in mind”

○ Focus on procurement excellence

● Do not underestimate the complexity:

○ Concept definition

○ Pre-requisits

○ Interdependencies (topics and functional areas)

○ Cross functional collaboration

● Good project management is key:

○ Business and IT integration and shared accountability for project success

○ Communication

○ Change management

… and of course: choose the right tool & implementation partner

Mondi Procurement Excellence 18April 2016

Thank you for listening

Happy to answer all questions

IN TOUCH EVERY DAY

Forward-looking statements disclaimer

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 Procurement Excellence 19April 2016