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

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Presentation on theme: "Crown Van Gelder N.V. Velsen Presentation 9 February 2007 Annual results 2006."— Presentation transcript:

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

2 1.Opening 2.Highlights Key figures 4.Production volume and geographical spread of sales volume 5.Pulp shipments, price and volume outlook 6.Raw materials cost 7.Finance 8.Results and outlook European paper companies 9.Outlook Deutsche Bank and Nordea 10.NBD 11.Outlook CVG for Questions 1.Opening 2.Highlights Key figures 4.Production volume and geographical spread of sales volume 5.Pulp shipments, price and volume outlook 6.Raw materials cost 7.Finance 8.Results and outlook European paper companies 9.Outlook Deutsche Bank and Nordea 10.NBD 11.Outlook CVG for Questions Agenda 9 February 2007

3 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 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 Highlights 2006

4 Key figures ) 2005 figure revised

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

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

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)

11 Result analysis 2006 vs 2005 (EUR mln) Net turnover Paper - Sales increase Higher prices Electricity - Higher supply volume to the public grid Higher prices for supply to the public grid Net turnover

12 Result analysis 2006 vs 2005 (EUR mln) Bleached Pulp - Higher purchase volume Higher prices Gas - Higher purchase volume Higher price level Electricity - Lower purchase volume(0.1) - Lower MEP-subsidy Total cost increase 2006 vs

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

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

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

16 Results and outlook European paper companies

17 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%) 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%) StoraEnso results Sales EUR 14,6 billion; 43,900 employees

18 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%) 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%) UPM-Kymmene results Sales EUR 10,022 mln; 28,704 employees

19 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) 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) M-Real results Sales EUR 5,6 mln; 14,125 employees

20 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 ” 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 ” Outlook

21 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.” Outlook

22 ROCE Comparison CVG and Peer Group

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

24 Deutsche Bank Sector Outlook New estimates CAGR

25 Deutsche Bank Sector Outlook New estimates

26 Nordea P&P Market Monitor

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

28 Source: PIRA International Development of printing presses

29 Source: PIRA International Development digital printing

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 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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