ROCE provides a measure of the efficient and effective use of capital in our operations. We compare ROCE to our current estimated Group pre-tax weighted average cost of capital to measure the value we create.
2018 performance ROCE of 23.6% reflects an industry-leading performance.
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.
2018 performance Mondi realised a five-year TSR of 74% and recommended a total ordinary dividend of 76.0 euro cents per share. In addition to the 2017 ordinary dividend, a special dividend of 100.0 euro cents per share was paid in 2018.
The safety and health of all our employees and contractors is of paramount importance, and we need to create a culture where people instinctively act safely. Our goal is a zero harm workplace.
2018 performance While our overall TRCR has improved by 11% against the 2015 baseline, we were deeply saddened by the fatality and life-altering injuries during the year.
Securing sustainable fibre for our integrated pulp and paper mills is critical to their long-term success. We are committed to maintaining 100% FSC-certified forests and procuring at least 70% of wood from FSC- or PEFC-certified sources by 2020.
2018 performance 100% of our managed forests remained FSC-certified, and 71% of the wood we procured was FSC-or PEFC-certified, on track with our 2020 commitment.
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.
2018 performance To date, we have reduced our specific CO2e emissions by 14.5%, on track for our 2030 commitment. We have adopted a new science-based target for production-related CO2 emissions intensity to 2050.
Underlying operating profit provides a measure of the operating performance of the Group that is comparable from year to year.
2018 performance 28% year-on-year increase in underlying operating profit to €1,318 million, with a 5-year CAGR of 14%.
Underlying EBITDA provides a measure of the cash generating ability of the Group that is comparable from year to year.
2018 performance Underlying EBITDA of €1,764 million represents a 19% year-on-year increase, with a 5-year CAGR of 12%.
We aim to maintain investment grade credit ratings to ensure we have access to funding for investment opportunities through the business cycle.
2018 performance Standard & Poor’s upgraded the Group’s credit rating to BBB+ (stable outlook), while Moody’s Investors Service maintained their Baa1 (stable outlook) credit rating.