Geen diatitel

1
Crown Van Gelder N.V. Velsen
Half year figures 2006
Presentation 28 July 2006
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Agenda 28 July 2006

• Opening
• Highlights HY1/06
• Key figures
• Production and sales volume CVG
• PL, Balance Sheet, Cash Flow
• New Business Development CVG (NBD)
• Results and outlook European paper companies
• Development of European capacities
• Assumptions and outlook CVG for HY2/06
• Questions

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Highlights HY1/06

• Net result EUR 0.9 million, down 80 on 2005
• Sales volume decrease of 4.3 to 101,300 ton
• Production volume 1.2 to 103,500 ton
• Net profit hit by cost pushes on raw materials
  and energy
• Selling price increases insufficient to offset
  higher input costs, due to overcapacity
• Strong emphasis on cost reductions and investment
  level
• NBD volumes develop in line with expectations

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Key figures 2001-2006
5
Production and Sales Volume CVG
Geographical spread
10
14
Outside Europe
Netherlands
6
Other EU
20
France
15
Belgium/Luxembourg
22
13
Germany
United Kingdom
6
Orderintake Cepifine Woodfree Uncoated
7
WF Uncoated Mill Stocks and Deliveries
8
WF Uncoated Order Stocks and Deliveries
9
NBSK Price Development
Voorwaarden termijncontracten CIF West-Europese
havens Bron FOEX/PIX-index
10
Hardwood Price Development
Voorwaarden termijncontracten CIF West-Europese
havens Bron FOEX/PIX-index
11
Consolidated Profit and Loss Account (EUR x
1.000) (unaudited)
12
Result Analysis 2006 vs. 2005
13
Result analysis 2006 vs 2005
14
Consolidated Balance Sheet (before profit
appropriation) (EUR x 1.000) (unaudited)
15
Cash Flow Statement (EUR x 1.000) (unaudited)
16
New Business Development
17
NBD
18
Future of Direct Mail 1/2

• Direct mail remains a growth sector of marketing
  expenditure, leading to continued strong demand
  for direct mail print
• Expenditure by advertisers on direct mail in
  Western Europe will increase by 18.9 between
  2004 and 2009 to 40 billion
• Digital print for direct mail will be the
  fastest-growing process between 2004 and 2009
  from 5,6 billion up to 16,8 billion
• Advertisers will continue to increase their spend
  on direct mail (next sheet). The major threat to
  budgets comes from the rise of digital marketing,
  especially because of its low cost base and
  immediacy
• The rise in use of digital print for direct mail
  will fuel increased demand for paper types that
  can be machined using this process
• Uncoated woodfree will experience the strongest
  increase, followed by coated mechanical and
  woodfree grades

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Future of Direct Mail 2/2
Source Pira International Ltd.
20
Results and outlook European paper companies
21
StoraEnso HY-results

• Net profit of EUR 267 mln (HY1/05 EUR 51 mln/due
  to strike)
• Operating profit Fine Paper division EUR 99 mln
  (HY1/05 EUR 35 mln)
• Sales volume Fine Paper (1.9 mln ton) 10 over
  last year
• Strong recovery ROOC Fine Paper from 2.4 to 7.4
  in 2006
• Slight paper price increase in 2006 in WFU,
  stable in coated segment

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UPM-Kymmene HY-results

• Net profit decreased from EUR 227 mln HY1/05 to
  loss of EUR 4 mln in HY1/06
• Non-recurring items EUR -148 mln (HY1/05 gain of
  EUR 101 mln)
• Operating profit Fine and Speciality Papers EUR
  14 mln (HY1/05 EUR 29 mln)
• Sales volume 1,765 mln ton (HY1/05 1,404 mln
  ton)
• Selling prices -2 lower than same period of 2005
• Operating profit excluding non-recurring items
  3.9 / net sales (HY1/05 2.8)

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M-Real HY-results

• Net result of HY1/06 EUR -100 mln (HY1/05 EUR
  -45 mln)
• Non-recurring items EUR -54 mln (HY1/05 EUR 66
  mln)
• Operating profit Office Paper division EUR -13
  mln (HY1/05 EUR -5 mln)
• Sales volume down by -5.6 to 517 kton (HY1/05
  538 kton)
• Selling prices up by 2.3
• ROCE Office Paper division, excl. non-recurring
  -0.7 (HY1/05 0.9)

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Outlook

• StoraEnso Board Good market demand for fine
  paper is anticipated in the third quarter. The
  general price outlook is stable. Price increases
  have been announced in Europe for uncoated fine
  paper and in North-America for coated fine paper
  reels.
• UPM-Kymmene Board Demand for papers in second
  half of this year is predicted to continue to be
  good. Average paper prices are forecast to be
  somewhat higher than last year.

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Outlook

• M-Real Board In third quarter the demand for
  the main products is expected to improve to some
  extend..
• M-Real has announced price increases for all its
  main paper grades and they will enter into force
  as of the beginning of September. Despite the
  result improving measures in progress, the
  year-end result before taxes will remain
  negative.

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ROCE Comparison CVG and Peer Group
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PM1/ - 95K tonnes
Stora Enso Oulo
Stora Enso Veitsuluoto
IP International paper (- 45.000 t WFU)
IP Svetogorsk
M-Real (- 120.000 t WFU / - 240 employees)
Stora Enso Varkaus
M-Real Husum
UPM Jamsankoski
M-Real Kangas
Stora Enso (-370.000 tonnes / - 2.500 employees)
UPM Tervasaari
M-Real Wifsta Warf
Ahlstrom
UPM (-700.000 tonnes / - 2.500 employees)
UPM Voikkaa
Sold to financial investor
UPM Kymi
SE Grycksbo
Mondi/Neusiedler (-200.000 tonnes)
Klippan
Sappi (need to savings of 175 mio p/a / - 100
empl.)
Mondi Syktyvhar
Closed down / bankrupt
Possible mill and PM closures
overig
IP Taite
A. Wiggins
Closed down
Stora Enso Nymolla
Under review
IP Kwidzyn
SE Uetersen
UPM Nordland
CVG
Rebuild
Arctic Kostryn
Drewsen
M-Real UK Paper
SE BPF
Sappi Nash
Sappi Maastricht
Closed down
M-Real Zanders
Reorganisation (Stockstadt)
M-Real PWA
M-Real Alizey
Reorganisation
SE Corbehem
Mondi Ruzomberok
Kohler
M-Real PSM
IP Maresquel
Due to be closed down, however still alive
MondiYbbstal/Kematen
MondiSzolnok
Ziegler
PM3 / PM4 250K tonnes
Mondi Dunaujvaros
Closed down
Ahlstrom Sibille
Cham Tenero
Sold
Goricane
Pap. de Cran
IP Saillat
Pont de Claix
Tenero
Zicunaga
Receivership
Will be closed down
Soporcel
Start-up new 500K tpa WFU PM planned 2H08
Sold to Trierenberg
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Outlook Nordea
Source Nordea
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Outlook Deutsche Bank
30
Assumptions and outlook for 2006

• Assumptions
• Further cost pushes from raw materials not
  unlikely
• Selling price increases from Q4 onwards
• Further capacity reduction 2006/2007

• Outlook
• Production and sales volumes around 210,000 ton
• Outlook net result 2006 yet uncertain

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Meeting 28 July 2006
Questions