1. Financial statement analysis of Mondi Świecie S.A. Agata Kocia, Ph.D., MBA based on presentation of Piotr Sokołowski

2. Company’s history 1991 – Pulp and Paper Plant in Świeć wholly transformed into sole proprietorship State Treasury company 1997 – introduced 15% of the shares onto the Warsaw Stock Exchange and sold majority stake in the Framondi NV company Since 2008 - Mondi Świecie SA

3. Ownership structure

4. Production activities Paper for corrugated board ProVantage Paper for paper bag production Advantage kraft Advantage Semi extensible

5. Market structure Sixth market in terms of packaging Good growth prospects in the future Mondi Świecie S.A. current cost market leader The market should be analyzed as a European market and not only Polish Oligopoly structure?

6. Competition (1) Smurfit Kappa Ireland – is part of an international corporation Smurfit Kappa Group, a leading packaging supplier in Europe with a strong position in Latin America European leader in the production of solid board, corrugated and graphics as well as cardboard packaging sales of around € 7 billion, approximately 400 locations and 40 000 employees Stora Enso Oyj – Finnish pulp and paper manufacturer headquarters in Helsinki, has approximately 29 000 employees in 2002 was the fifth largest producer of pulp and paper in terms of revenues in 2005 the world's largest pulp and paper producer in terms of production capacity

7. Competition (2) DS. Smith VPK Model Dunapack

8. Plans and growth perspectives Improve quality Maintain cost market leader position reduce energy costs reduce costs associated with the purchase of wood reduce costs associated with the use of chemicals

9. Balance sheet analysis – Assets (1) 200820092010 PLN in 1 000 ASSETS Long-term assets 1,473,832 1,836,757 1,726,446 Fixed (tangible) assets 1,445,308 1,820,461 1,707,746 Intangible assets 5,938 5,115 2,904 Investments available for sale 516 Other financial assets - - - Long-term deferred taxes 22,070 10,665 15,280 Short-term assets 432,340 469,379 619,319 Inventory 140,702 174,438 227,596 Trade receivables 225,830 233,542 337,408 Derivative contracts 13,468 1,018 1,410 Cash and cash equivalents 45,141 60,381 52,905 Short-term deferred taxes 7,199 - - Total assets 1,906,172 2,306,136 2,345,765

10. Balance sheet analysis – Assets (2) 200820092010 % ASSETS Long-term assets77.32%79.65%73.60% Fixed (tangible) assets98.06%99.11%98.92% Intangible assets0.40%0.35%0.17% Investments available for sale0.04%0.03% Other financial assets0.00% Long-term deferred taxes1.50%0.58%0.89% Short-term assets22.68%20.35%26.40% Inventory32.54%37.16%36.75% Trade receivables52.23%49.76%54.48% Derivative contracts3.12%0.22%0.23% Cash and cash equivalents10.44%12.86%8.54% Short-term deferred taxes1.67%0.00% Total assets100.00%

11. Balance sheet analysis – Assets (3) 2008/20092009/2010 % change ASSETS Long-term assets24.62%-6.01% Fixed (tangible) assets25.96%-6.19% Intangible assets-13.86%-43.23% Investments available for sale0.00% Other financial assets-- Long-term deferred taxes-51.68%43.27% Short-term assets8.57%31.94% Inventory23.98%30.47% Trade receivables3.41%44.47% Derivative contracts-92.44%38.51% Cash and cash equivalents33.76%-12.38% Short-term deferred taxes-100.00%- Total assets20.98%1.72%

12. Balance sheet analysis – Liabilities and equity (1) 200820092010 PLN in 1 000 LIABILITIES AND STOCKHOLDERS EQUITY Stockholders equity 1,065,433 1,182,382 1,432,554 Share capital 333,734 Paid-in capital 635,279 778,471 848,648 Profit (loss) from current year 143,192 70,177 250,172 Retained earnings - - - Revaluation capital- 46,772 - - Liabilities 840,739 1,123,754 913,211 Long-term liabilities 276,177 745,203 477,316 Long-term interest bearing loans 196,000 674,348 416,366 Reserves 4,082 3,796 4,048 Reserves for deferred taxes 76,095 67,059 56,902 Short-term liabilities 564,562 378,551 435,895 Trade payables 370,536 337,944 319,626 Current installment of interest-bearning loans 109,807 32,813 100,349 Derivative contracts 73,109 2,401 199 Tax liability - 847 3,851 Short-term reserves 11,110 4,546 11,870 Total liabilities and stockholders equity 1,906,172 2,306,136 2,345,765

13. Balance sheet analysis – Liabilities and equity (2) 200820092010 % LIABILITIES AND STOCKHOLDERS EQUITY Stockholders equity55.89%51.27%61.07% Share capital31.32%28.23%23.30% Paid-in capital59.63%65.84%59.24% Profit (loss) from current year13.44%5.94%17.46% Retained earnings0.00% Revaluation capital-4.39%0.00% Liabilities44.11%48.73%38.93% Long-term liabilities32.85%66.31%52.27% Long-term interest bearing loans70.97%90.49%87.23% Reserves1.48%0.51%0.85% Reserves for deferred taxes27.55%9.00%11.92% Short-term liabilities67.15%33.69%47.73% Trade payables65.63%89.27%73.33% Current installment of interest-bearning loans19.45%8.67%23.02% Derivative contracts12.95%0.63%0.05% Tax liability0.00%0.22%0.88% Short-term reserves1.97%1.20%2.72% Total liabilities and stockholders equity100.00%

14. Balance sheet analysis – Liabilities and equity (3) 2008/20092009/2010 % change LIABILITIES AND STOCKHOLDERS EQUITY Stockholders equity10.98%21.16% Share capital0.00% Paid-in capital22.54%9.01% Profit (loss) from current year-50.99%256.49% Retained earnings-- Revaluation capital-100.00%- Liabilities33.66%-18.74% Long-term liabilities169.83%-35.95% Long-term interest bearing loans244.06%-38.26% Reserves-7.01%6.64% Reserves for deferred taxes-11.87%-15.15% Short-term liabilities-32.95%15.15% Trade payables-8.80%-5.42% Current installment of interest-bearning loans-70.12%205.82% Derivative contracts-96.72%-91.71% Tax liability-354.66% Short-term reserves-59.08%161.11% Total liabilities and stockholders equity20.98%1.72%

15. Balance sheet analysis – ratios (1) 200820092010 % of fixed assets to total assets77.32%79.65%73.60% % of current assets to total assets22.68%20.35%26.40% fixed assets to current assets3.413.912.79 200820092010 % stockholders equity to total liabilities and stockholders equity55.89%51.27%61.07% % liabilities to total liabilities and stockholders equity44.11%48.73%38.93% stockholders equity to liabilities1.271.051.57

16. Balance sheet analysis – ratios (2) 200820092010 assets to stockholders equity1.791.951.64 liabilities to stockholders equity78.91%95.04%63.75% net sales to current assets3.222.883.64

17. Revenues

18. Costs

19. Cash flow statement 200820092010 Cash flows from operations 302,866 202,383 347,390 Cash flows from investing activities - 526,582 - 552,658 - 111,402 Cash flows from financing activities 202,824 409,859 - 244,219 Net cash flows - 20,892 59,584 - 8,231 Net income 177,084 73,169 264,512

20. Growth strategy 200820092010 Cash flows from operations+++ Cash flows from investing activities--- Cash flows from financing activities++-

21. Liquidity 200820092010 I0.771.241.42 II0.520.780.88 III0.120.160.12 IV0.080.160.12

22. Kapitał obrotowy 200820092010 working capital to sales revenue-0.090.070.08 working capital to total assets-0.070.040.08 working capital to current assets-0.310.190.30 working capital to inventory and receivables-0.360.220.32

23. Turnover 200820092010 total asset turnover0.730.590.97 fixed asset turover0.950.741.31 current asset turnove3.232.903.66

24. Profit margin 200820092010 Gross profit margin 12.68%5.37%11.68% Net profit margin 10.25%5.15%11.05%

25. ROA 200820092010 ROA 7.5%3.0%10.7% Interest % 6.4%6.3%8.3%

26. ROE 200820092010 ROE 13.4%6.0%17.5% liabilities to stockholders equity and liabilities 44.1%48.7%39.0% stockholders equity to stockholders equity and liabilities 55.9%51.3%61.0%

27. Market value 200820092010 EPS 2.861.405.00 P/E 13.9955.7115.60 P/BV 5.9911.69 book value 6.67 stock price 4078

28. Thank you for your attention