Mondi Mergers and Acquisitions Presentation Deck slide image

Mondi Mergers and Acquisitions Presentation Deck

INDUSTRY FUNDAMENTALS: EUROPEAN UNCOATED WOODFREE PAPER Demand European uncoated woodfree demand grew by 3% per annum in the period from 2000 to 2006, driven by strong growth in the office paper segment of around 4% per annum(¹) Within the office paper segment, growth mainly attributed to strong growth in Emerging Europe. Growth in Emerging Europe was around 7% over 2005-2006(2) Moderate demand growth anticipated to continue, with Emerging Europe exhibiting the strongest growth in the region albeit at lower levels than experienced over the 2000 to 2006 period 3% demand growth on total 2006 demand of around 11.8Mt represents around 0.35Mt Supply Announced European capacity closures in 2006 of 180Ktpa, with further closures of 540Ktpa announced for 2007 Global capacity is expected to grow in line with demand, with most new capacity planned for Asia in response to strong Chinese demand growth. €/tonne 1,200 1,100 1,000 900 800 700 UCWF mondi 600 (3) 2001 2002 2003 2004 2005 Only announced major expansion in Europe is a new 500Ktpa machine at Portucel's Setubal mill, planned for commissioning in 2009 (1) Volume growth based on 2000 to 2006 demand estimates by Pöyry Forest Industry Consulting. (2) Demand estimates by Pöyry Forest Industry Consulting. (3) Q4 2001-Q1 2007. Sources: Mondi, Pöyry Forest Industry Consulting, CEPIFINE, RISI 2006 2007 (3) PAGE 22
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