Strategic

Growth in packaging

Growth in packaging 

Strategically, we are focused on broadening our reach in the packaging sector, with a bias towards consumer-related packaging where we see greater potential for growth. Our strategic value drivers provide a framework for pursuing value-creating growth opportunities.

2016 performance
We invested €465 million in capital expenditure, of which 80% was allocated to packaging.
Our packaging interests represent 79% of the Group’s capital employed.

Total shareholder return (TSR)

Total shareholder return

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.

2016 performance
Mondi declared a dividend of 57.0 euro cents per share and realised a one-year TSR of 10%.

Sustainable development

Total recordable case rate (TRCR)

Total recordable case rate

The safety and health of all our employees and contractors is of paramount importance. Our goal is a zero harm workplace.

2016 performance
We continued to experience a steady improvement in our TRCR, and there were no fatalities or life-altering injuries during the year.

Sustainable fibre supply

Sustainable fibre supply

Securing a sustainable source of fibre for our integrated pulp and paper mills is critical to the long-term sustainable success of these operations. We are committed to maintaining 100% Forest Stewardship Council® (FSC®) certified forests and at least 70% of procured wood from certified sources by 2020 according to FSC or Programme for the Endorsement of Forest Certification (PEFC™) standards.

2016 performance
Our forests have maintained their FSC certification and 67% of our wood is from credibly certified sources.

Total specific CO2e emissions1

Total specific CO2e emission

We have continually focused on making our business less carbon intensive to address climate impacts. We are committed to a 15% reduction in specific CO2e emissions by 2030 against our 2014 baseline.

2016 performance
To date, we have achieved a 8.9% reduction in specific CO2e emissions against our 2014 baseline (excluding Raubling mill from 2014 baseline).

Financial

Return on capital employed (ROCE)

Return on capital employed

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.

2016 performance
ROCE of 20.3% reflects an industry-leading performance.

Underlying EBIT/EBITDA

Underlying EBIT/EBITDA 

By excluding special items (which impact year-by-year comparability), underlying EBIT provides a measure of the 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.

2016 performance
3% increase in underlying operating profit and in EBITDA.

Investment grade credit rating

Investement 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.

2016 performance
Our investment grade credit ratings were reaffirmed during the year. Our credit rating from Standard & Poor’s is BBB (stable outlook) and from Moody’s Investors Service is Baa2 (stable outlook).