The Group has used the following performance indicators to assess its development against its strategy and financial objectives during the year. The Group gives prominence to different indicators as the economic environment changes.
We have a clear strategic objective to grow our packaging interests, while investing appropriately to maintain and improve the competitiveness of our uncoated fine paper operations. Our strategic value drivers provide a framework for pursuing value-creating growth opportunities.
2015 performance We invested €595 million in capital expenditure, of which 82% was allocated to packaging. Our packaging interests represent 78% of the Group’s capital employed.
Total shareholder return (TSR)
TSR provides a market-related measure of the Group’s progress against our objective of delivering long-term value for our shareholders. TSR measures the total return to Mondi’s shareholders, including both share price appreciation and dividends paid. 2015 performance Mondi declared a dividend of 52.0 euro cents per share and realised a TSR of 37%.
Return on capital employed (ROCE)
% (12-month rolling)
ROCE, defined as underlying EBIT divided by 12-month rolling capital employed, provides a broad overview of the efficient and effective use of capital in our operations. New investments are required to deliver returns in excess of our hurdle rate of 13% across the business cycle.
2015 performance ROCE of 20.5% reflects an industry-leading performance, with key strategic projects delivering well above our targeted hurdle rate.
Underlying EBIT and EBITDA
Underlying EBIT provides a measure of the underlying operating performance of the Group and absolute growth in profitability of the operations. We target improving profitability across our business. EBITDA, underlying EBIT before deducting depreciation and amortisation, provides a measure of the absolute growth in the cash generating ability of the Group and is therefore used for incentive purposes.
2015 performance 25% increase in underlying EBIT and 18% increase in EBITDA, with all businesses improving their profitability.
Investment grade credit rating
We aim to maintain investment grade credit ratings to ensure we have access to funding for investment opportunities through the business cycle.
2015 performance Standard & Poor’s upgraded the Group’s credit rating to BBB, bringing it in line with Moody’s Investors Service Baa2 rating.
Total recordable case rate (TRCR)
per 200,000 hours worked
The safety and health of all our employees and contractors is of paramount importance. Our goal is a zero harm workplace.
2015 performance We continued to experience a steady improvement in our TRCR. There was one fatality and three life-altering injuries during the year.
Sustainable fibre supply
% CoC-certified wood procured
Securing a sustainable source of fibre for our integrated pulp and paper mills is critical to the longterm success of these operations. We are committed to maintaining 100% FSC-certified forests and at least 60% of procured wood from Chain-of-Custody (CoC)-certified sources according to FSC or Programme for the Endorsement of Forest Certification™ (PEFC™) standards.
2015 performance Our forests have maintained their FSC certification and we have exceeded our commitment for sourcing credibly certified wood.
Total specific CO2e emissions1
tonnes (t) per tonne of saleable production
We have continually focused on making our business less carbon intensive to address climate impacts.
In 2004 we committed to reducing our specific CO2e emissions by 15% over the next 10 years.
Our new commitment is a reduction of 15% by 2030 against the 2014 baseline.
2015 performance We achieved a 29% reduction in specific CO2e emissions by the end of 2014. In 2015 we had a 0.9% increase compared to our 2014 baseline.