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Presentation 9 February 2007

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1 Presentation 9 February 2007
Crown Van Gelder N.V. Velsen Annual results 2006 Presentation 9 February 2007

2 Agenda 9 February 2007 Opening Highlights 2006 Key figures
Production volume and geographical spread of sales volume Pulp shipments, price and volume outlook Raw materials cost Finance Results and outlook European paper companies Outlook Deutsche Bank and Nordea NBD Outlook CVG for 2007 Questions

3 Highlights 2006 Net result EUR 2.2 million, down 75% on revised 2005 Sales volume increase of 4.2% to 208,800 ton Selling price up by 1% on 2005 NBD in line with expectation (15,000 ton) Dividend proposal of EUR 1.00 per share certificate (196% pay out) Restructuring of paper industry making a good pace

4 Key figures Sheet 10 1) 2005 figure revised

5 WF Uncoated European order inflow total – 3 weeks average
Bron: Cepifine

6 Production and sales volume CVG
Geographical spread of sales volume CVG 15% 10% Outside Europe Netherlands 6% 19% Other Europe France 15% Belgium/Luxembourg 22% 13% Germany United Kingdom

7 Shipments of Market Pulp in million tons 2005
Bron: Das Papier

8 NBSK (benchmark pulp) Voorwaarden: termijncontracten CIF West-Europese havens Bron: FOEX/PIX-index

9 BHKP Voorwaarden: termijncontracten CIF West-Europese havens
Bron: FOEX/PIX-index

10 Consolidated profit & loss account
(EUR x 1,000) (unaudited) Sheet 10

11 - Higher supply volume to the public grid +0.1
Result analysis 2006 vs 2005 (EUR mln) Net turnover 2005 142.2 Paper - Sales increase +5.9 - Higher prices +1.0 +6.9 Electricity - Higher supply volume to the public grid +0.1 - Higher prices for supply to the public grid +1.6 +1.7 Net turnover 2006 150.8 Sheet 14a

12 - Higher purchase volume +4.6 - Higher prices +7.0 +11.6 Gas +0.1
Result analysis 2006 vs 2005 (EUR mln) Bleached Pulp - Higher purchase volume +4.6 - Higher prices +7.0 +11.6 Gas +0.1 - Higher price level +8.8 +8.9 Electricity - Lower purchase volume (0.1) - Lower MEP-subsidy +0.4 +0.3 Total cost increase 2006 vs 2005 +20.8 Sheet 14a

13 Consolidated Balance Sheet (before profit appropriation)
(EUR x 1,000) (unaudited) Sheet 11

14 Consolidated Cash Flow Statement
(EUR x 1,000) (unaudited)

15 Pension accounting Comparison of differences in pension accounting (“corridor approach” versus “SoRIE approach”

16 Results and outlook European paper companies

17 Sales EUR 14,6 billion; 43,900 employees
StoraEnso results Sales EUR 14,6 billion; 43,900 employees Net profit of EUR 589 mln (2005: EUR -107 mln revised) Non-recurring items EUR -134 mln (2005: EUR -417 mln) Operating profit Fine Paper division EUR 166 mln (2005: EUR 62 mln) Sales volume up 9% to 3.8 mln ton (7 weeks strike in 2005) Selling price Fine Paper up 1% ROCE Fine Paper 7.1% (2005: 2.4%)

18 Sales EUR 10,022 mln; 28,704 employees
UPM-Kymmene results Sales EUR 10,022 mln; 28,704 employees Net result increased from EUR 261 mln to EUR 338 mln in 2006 Non-recurring items EUR -189 mln (2005: EUR -240 mln) Operating profit Fine and Speciality Papers division increases from EUR 85 mln to EUR 108 in 2006 Sales volume up 16% to 3,550 mln ton (2005: effect of Finnish strike and start-up papermachine in China) Selling prices -1% (2005: -1%) ROCE up to 5.4% (2005: 3.3%)

19 Sales EUR 5,6 mln; 14,125 employees
M-Real results Sales EUR 5,6 mln; 14,125 employees Net result of EUR -399 mln (2005: EUR -80 mln) Non-recurring items EUR -316 mln (2005: EUR 32 mln) Operating profit Office Paper Division EUR 7 mln (2005: EUR 4 mln), excluding non-recurring items Sales volume up by 0.5% to 1,039 mln ton Selling prices +2.8% ROCE Office Paper Division 1.0% (2005: 0.6%), including non-recurring items -2.3% (2005: -0.5%) EUR 15 mln write down on Wifsta mill (closure June 2007)

20 Outlook Board of Directors StoraEnso: “In Europe the outlook for fine paper remains healthy, with demand and shipments in the first quarter predicted to be up on a year ago and the previous quarter. Higher prices are anticipated in uncoated fine paper, and price increases have been announced in coated fine paper …..” UPM-Kymmene: “Demand for printing papers is forecast to grow somewhat from last year. The strongest growth in demand will be in emerging markets. We expect paper deliveries to increase over last year. Average paper price is slightly higher in Q than Q ”

21 Outlook Mikko Helander (CEO M-Real): “In fine paper products, capacity utalization rates are very high at the beginning of the year. We have initiated measures to increase the prices of fine paper products and are currently confident that we will be able to push through these increases at least in part. Our result for 2007 will be burdened by an increase of production input costs, estimated at more than EUR 100 million. In order to achieve a positive result before taxes …. we must be able to raise the prices of our paper products.”

22 ROCE Comparison CVG and Peer Group

23 Pulp production to be modernised 1Q08
PM3 modernization 4Q07 PM4 to be converted 2Q07 Stora Enso Oulo PM6 to be closed 2Q07 Stora Enso Veitsuluoto PM2 limited 1Q07 IP Svetogorsk Pulpline to be closed 2Q07 ‘0606: - 700,000 t / -2,500 employees M-Real Husum Stora Enso Varkaus ‘0701: Investment in Jämsänkoski mill PM8 overhauled 1Q06 UPM Jämsänkoski M-Real Kangas ‘0606: - 370,000 t / - 2,500 employees To be closed 1H07 M-Real Wifsta Warf UPM Tervasaari Ahlstrom ‘0701: - 235,000 t WFU / - 215,000 t SC UPM Voikkaa Sold to financial investor 1H06 UPM Kymi SE Grycksbo ‘0606: - 120,000 t WFU / employees ‘0701: - 175,000 t WFU / - 310,000 t WFC PM7 Closed 3Q06 Bankrupt, sold to investor Klippan Closed down ‘0606: - 45,000 t WFU Mill closed 3Q06 Mondi Syktyvhar Cham Hunsfos ‘0701: Future growth outside North America IP Taite A. Wiggins Coater shut down 2H06 Question mark ‘0606: + 500,000 t WFU in 2009 ? Stora Enso Nymölla PM1 modernization 4Q07 ‘0701: Focus WFU A4 and sheets To be closed 2007 To be closed 2007/08 IP Kwidzyn Under review 2007 SE Uetersen UPM Nordland Arctic Kostryn M-Real UK Paper Closed down SE BPF Drewsen To be closed 2007 SE Reisholz Sappi Nash Sappi Maastricht M-Real Zanders (Gohrsmühle) PM6 & 7 to be closed Feb 2007 Reorganisation 2006 M-Real Alizey M-Real PWA (Stockstadt) Reorganisation 2006 SE Corbehem M-Real PSM Köhler PM3 & PM4 closed 2Q06 Mondi Ruzomberok UPM Docelles Mondi Ybbstal/Kematen IP Maresquel Mondi Szolnok Ziegler Cham Mondi Dunaujvaros Mill closed 3Q06 Ahlstrom Sibille Sold to investor 2Q06 Tenero Goricane IP USA sold coated and superc. business (2,000,000 tpa) 2Q06 Pap. de Cran IP Saillat Pont de Claix Zicunaga PM1 revamp 2Q06 Sold to Trierenberg 2006 IP USA will convert 350,000 t uncoated to t liner board 2007 Start-up new 500K tpa WFU PM planned 1H09 ? Receivership Until July 07 Closed down 2006 Soporcel Question mark Mill closed 2006 IP Brazil expansion focus uncoated paper Mondi RSA PM31 switch to WFU office paper late 2005 IP China Studying uncoated freesheet machine

24 Deutsche Bank Sector Outlook
New estimates CAGR

25 Deutsche Bank Sector Outlook
New estimates

26 Nordea P&P Market Monitor

27 World players of digital printers
Xeikon 6000 Versamark VT 3000 / VX 5000 Inkjet = contactloos & snel NBD HP Indigo 3250 Xerox iGen3 Oce Variostream 9000

28 Development of printing presses
Source: PIRA International

29 Development digital printing
Source: PIRA International

30 Crown Digital range

31 Outlook for 2007 Volume up to 217,000 ton Positive effect of reduction in capacity will gain momentum Gradual price increases Cost pushes from pulp price and energy costs Strict control on costs and investments Outlook 2007 yet uncertain

32 Product portfolio Questions


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