1. Björn Vikinge, Vice President Bioenergy Bydgoszcz 17 June 2010
Ekman & Co New Era in European Wood Pellets Supply tons per year from Vyborg in Russia -
Björn Vikinge, Vice President Bioenergy
Bydgoszcz 17 June 2010

2. To add value to the supply chain for forest related products worldwide
Business Concept
To add value to the supply chain
for forest related products
worldwide

3. Ekman & Co History
Ekman & Co is founded
Ekman acquires Intercontinental Cellulose Sales Inc., New York. Sales volume exceeds 1,000,000 tons for the first time
1995 Catena sells Ekman to a group of investors consisting of the Ekman family, MVI, Skandia and the company’s employees
1999 Atle AB buys MVI’s part of the Ekman shares. Sales volume exceeds 2,000,000 tons for the first time
Ekman celebrates its 200th anniversary
2004 Ekman acquires KC International, New Jersey
Atle AB and Skandia Invest sells its shares to the Ekman family and the Ekman employees
Formation of the Bioenergy Division

4. Ownership Structure

5. Board of Directors Matts Ekman Jan Svensson Claes Ekman Frank Graves
Chairman of the Board.
Born 1946.
Member of the boards of Investment AB Öresund, Profoto AB and Spendrup Investment AB.
Previous positions: First ExecVP and CFO of Vattenfall Group , Finance Director of Electrolux Group ,
Jan Svensson
Born 1957.
President & CEO of the Ekman Group.
Claes Ekman
Born 1944
Entrepreneur
Treasurer in Ekman Family Association.
Frank Graves
Born President of North Drive Group Inc., Toronto Canada, Investments and advisory services. Senior Advisor to Renaissance Capital, Moscow, Russia. Senior Advisor to RusFor, Tune, Russia.
Michael Olsson
Born Chairman of the board of Technology Nexus AB (publ) and Satpoint AB.
Previous positions: Founder, CEO and member of the board of Tradimus AB. CEO and member of the board of Electrolux Scandinavia AB.
Oscar Ekman
Born 1954.
Member of the board of the Ekman Foundations.
Benny Johansson
Born 1971
Employee representative.
Pulp Sales

6. Ekman & Co AB
One of the world’s leading sales and marketing organizations, focusing in the global forest industry
Employs 175 people at about 40 locations worldwide
Additionally represented in more than 100 countries
Ships about 3,4 million tons of pulp, paper, biomass and recovered material annually
Coordinated via three regional hubs

7. Ekman Group of Companies
Hub Office
Sales Office

8. Level of interaction Fully integrated Partnership Limited Partnership
Anything from occasional spot trading to fully integrated partnerships possible:
Fully integrated Partnership
Limited Partnership
Global Agency representation
Scope of services provided
Limited Agency representation
Regular Spot trading
Occasional Spot trading
Level of integration

9. Volume & Turnover

10. Vyborgskaya Cellulose
900,000 ton annual production
Ekman & Co exclusive sales agent
Production based on roundwood from NW Russia
Turnkey delivery from ANDRITZ Group - 2 wood processing lines - 4 belt dryers - 36 pellet presses
Integration with pulp&paper mill provides economies of scale
Focus on industrial market – possibility to target consumer market
Sales with long-term focus
Own port at mill site
Start of production – Q3 2010

11. Vyborgskaya & Ekman - A Serious Partnership
Reliability – Punctual loading and deliveries from several quays at once in two different ports
Quality – Debarking lines with ability to mix in bark during pellet production will allow Vyborgskaya to produce to clients’ specification
Flexibility – Additional storage allows Vyborg to adapt to clients’ needs and seasonal demand
Common sense – A good professional relationship with our partners and clients from contractual terms and documentary demands to payment control

12. Loading from own port

13. Wood Mix and Sustainability
Vyborgskaya are already buying 49 year cutting rights for large areas of Forest in NW Russia
Pellets will be manufactured from a mix of different tree species including Birch, Spruce, Pine and Aspen
A partial FSC will be available from start up, with higher FSC content during year two

14. What Makes the Project Unique?
Raw material from own forest leases
Control of exports through own port
Short shipping distances
Long-term chartered carriers
Very flexible production unit
Owner has a long forest industry track record
Sales controlled by experienced international forests products trader
Client contracts of several hundred thousand tons per year

15. Forests in Europe

16. A turnkey development by Andritz
All processing and manufacturing equipment will be supplied by Andritz the global market leader in wood processing equipment
Wood processing will be supervised by Andritz Finland. Two de-barking lines will allow separate flow of sawdust and bark
Andritz Sweden will oversee the installation of four large belt dryers. These will be installed to operate with the excess steam from the pulp mill. This will mean no discolouration and a lower ash content in the final product
Andritz Denmark will manage the installation of 16 large hammer mills and 36 pellet presses, with an hourly output of 125 tons.
Andritz are guaranteeing both quality and quantity

17. Plant location

18. Map of All Port Options

19. Aerial View of Pellet Plant and Port

20. Foundation completed 2009 for 7500 ton silo

21. Existing building which will house 16 hammer mills and 36 pellet presses

22. The “Metro”: a 900 m conveyor that will also travel some distance underground

23. Europes largest wood yard
Europes largest wood yard! over 25 hectares which will hold more than m3 at a time

24. Andritz hammer mills being erected

25. Silos being erected

26. Foundation for 4 large belt driers

27. Foundation for 4 large belt driers

28. Foundation for conveyor from chipper to drier

29. Foundation for conveyor from chipper to drier

30. Rotobraker foundation

31. Foundation of chip conveyor

32. Foundation for log vibrator to remove sand from logs

33. Thank you for your attention